Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2024 | Oct. 18, 2024 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 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 | One Applied Plaza | |
Entity Address, City or Town | Cleveland | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 44115 | |
City Area Code | 216 | |
Local Phone Number | 426-4000 | |
Title of 12(b) Security | Common Stock, without par value | |
Trading Symbol | AIT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 38,446,528 | |
Document and Entity Information [Abstract] | ||
Entity Central Index Key | 0000109563 | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Year Focus | 2025 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Statements of Consoli
Condensed Statements of Consolidated Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2024 | Sep. 30, 2023 | |
Income Statement [Abstract] | ||
Net sales | $ 1,098,944 | $ 1,095,188 |
Cost of sales | 773,862 | 770,106 |
Gross profit | 325,082 | 325,082 |
Selling, distribution and administrative expense, including depreciation | 211,910 | 204,402 |
Operating income | 113,172 | 120,680 |
Interest (income) expense, net | (627) | 1,320 |
Other (income) expense, net | (2,281) | 431 |
Income before income taxes | 116,080 | 118,929 |
Income tax expense | 24,017 | 25,103 |
Net income | $ 92,063 | $ 93,826 |
Net income per share - basic | $ 2.40 | $ 2.42 |
Net income per share - diluted | $ 2.36 | $ 2.39 |
Weighted average common shares outstanding for basic computation | 38,398 | 38,700 |
Dilutive effect of potential common shares | 546 | 610 |
Weighted average common shares outstanding for diluted computation | 38,944 | 39,310 |
Condensed Statements of Conso_2
Condensed Statements of Consolidated Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2024 | Sep. 30, 2023 | |
Net income per the condensed statements of consolidated income | $ 92,063 | $ 93,826 |
Other comprehensive loss, before tax: | ||
Foreign currency translation adjustments | (2,266) | (6,270) |
Post-employment benefits: | ||
Reclassification of net actuarial gains and prior service cost into other (income) expense, net and included in net periodic pension costs | (5) | (30) |
Unrealized (loss) gain on cash flow hedge | (4,159) | 3,634 |
Reclassification of interest from cash flow hedge into interest (income) expense, net, Pre-Tax | (4,691) | (4,638) |
Total other comprehensive loss, before tax | (11,121) | (7,304) |
Income tax benefit related to items of other comprehensive loss | (2,179) | (230) |
Other comprehensive loss, net of tax | (8,942) | (7,074) |
Comprehensive income, net of tax | $ 83,121 | $ 86,752 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2024 | Jun. 30, 2024 |
Current assets | ||
Cash and cash equivalents | $ 538,520 | $ 460,617 |
Accounts receivable, net | 691,512 | 724,878 |
Inventories | 497,568 | 488,258 |
Other current assets | 81,950 | 96,148 |
Total current assets | 1,809,550 | 1,769,901 |
Property, less accumulated depreciation of $247,597 and $244,640 | 119,061 | 118,527 |
Operating lease assets, net | 145,043 | 133,289 |
Identifiable intangibles, net | 242,744 | 245,870 |
Goodwill | 624,217 | 619,395 |
Other assets | 62,596 | 64,928 |
TOTAL ASSETS | 3,003,211 | 2,951,910 |
Current liabilities | ||
Accounts payable | 265,136 | 266,949 |
Current portion of long-term debt | 25,003 | 25,055 |
Compensation and related benefits | 69,505 | 93,204 |
Other current liabilities | 118,656 | 115,892 |
Total current liabilities | 478,300 | 501,100 |
Long-term debt | 572,288 | 572,279 |
Other liabilities | 200,546 | 189,750 |
TOTAL LIABILITIES | 1,251,134 | 1,263,129 |
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 | $ 10,000 | 10,000 |
Common Stock, Shares Authorized | 80,000 | |
Common Stock, Shares, Issued | 54,213 | |
Additional paid-in capital | $ 191,325 | 193,778 |
Retained earnings | 2,213,868 | 2,121,838 |
Treasury shares—at cost (15,767 and 15,804 shares, respectively) | $ 576,608 | $ 559,269 |
Treasury Stock, Common, Shares | 15,767 | 15,804 |
Accumulated other comprehensive loss | $ (86,508) | $ (77,566) |
TOTAL SHAREHOLDERS’ EQUITY | 1,752,077 | 1,688,781 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 3,003,211 | $ 2,951,910 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2024 | Jun. 30, 2024 |
Noncurrent Assets: | ||
Property, less accumulated depreciation | $ 247,597 | $ 244,640 |
Shareholders’ equity | ||
Preferred stock, shares authorized | 2,500 | |
Common stock, shares authorized | 80,000 | |
Common stock, shares issued | 54,213 | |
Treasury Stock, Common, Shares | 15,767 | 15,804 |
Condensed Statements of Conso_3
Condensed Statements of Consolidated Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2024 | Sep. 30, 2023 | |
Net income | $ 92,063 | $ 93,826 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property | 5,924 | 5,717 |
Amortization of intangibles | 7,600 | 7,393 |
Provision for losses on accounts receivable | 1,056 | 867 |
Amortization of stock appreciation rights and options | 1,326 | 844 |
Other share-based compensation expense | 1,675 | 1,976 |
Changes in operating assets and liabilities, net of acquisitions | 16,587 | (45,245) |
Other, net | 1,516 | 831 |
Net Cash provided by Operating Activities | 127,747 | 66,209 |
Cash Flows from Investing Activities | ||
Net cash paid for acquisitions, net of cash acquired | (10,498) | (21,440) |
Capital expenditures | (5,549) | (4,340) |
Proceeds from property sales | 831 | 123 |
Net Cash used in Investing Activities | (15,216) | (25,657) |
Cash Flows from Financing Activities | ||
Long-term debt repayments | 63 | 62 |
Purchases of treasury shares | (9,980) | 0 |
Interest rate swap settlement receipts | 3,738 | 3,558 |
Dividends paid | (14,218) | (13,551) |
Acquisition holdback payments | 1,210 | 562 |
Taxes paid for shares withheld for equity awards | (12,314) | (11,866) |
Net Cash used in Financing Activities | (34,047) | (22,483) |
Effect of Exchange Rate Changes on Cash | (581) | (1,690) |
Increase in Cash and Cash Equivalents | 77,903 | 16,379 |
Cash and Cash Equivalents at Beginning of Period | 460,617 | 344,036 |
Cash and Cash Equivalents at End of Period | $ 538,520 | $ 360,415 |
Condensed Statements of Shareho
Condensed Statements of Shareholder's Equity Condensed Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Common Stock [Member] Stock Options and Stock Appreciation Rights [ Member] | Common Stock [Member] Performance Shares [Member] | Common Stock [Member] Restricted Stock Units (RSUs) [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] Stock Options and Stock Appreciation Rights [ Member] | Additional Paid-in Capital [Member] Performance Shares [Member] | Additional Paid-in Capital [Member] Restricted Stock Units (RSUs) [Member] | Retained Earnings [Member] | Treasury 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] | Total Accumulated Other Comprehensive Income (Loss) [Member] | Parent [Member] | Parent [Member] Stock Options and Stock Appreciation Rights [ Member] | Parent [Member] Performance Shares [Member] | Parent [Member] Restricted Stock Units (RSUs) [Member] |
Beginning balance, shares at Jun. 30, 2023 | 38,657 | ||||||||||||||||||
Beginning balance at Jun. 30, 2023 | $ 10,000 | $ 188,646 | $ 1,792,632 | $ (477,545) | $ (55,296) | $ 1,458,437 | |||||||||||||
Net income | $ 93,826 | 93,826 | |||||||||||||||||
Other comprehensive loss | $ (7,074) | (7,074) | (7,074) | ||||||||||||||||
Cash Dividends per Common Share | $ 0.35 | ||||||||||||||||||
Cash dividends | (23) | (23) | |||||||||||||||||
Exercise of stock appreciation rights and options, shares | 32 | ||||||||||||||||||
Performance share awards, shares | 54 | ||||||||||||||||||
Restricted stock units, shares | 13 | ||||||||||||||||||
Additional Paid in Capital, Exercise of stock appreciation rights and options, Performance share awards, Restricted stock units | $ (1,681) | $ (3,072) | $ (726) | ||||||||||||||||
Exercise of stock appreciation rights and options | $ (1,912) | ||||||||||||||||||
Performance share awards | $ (3,487) | ||||||||||||||||||
Restricted stock units | $ (910) | ||||||||||||||||||
Total Shareholders' Equity, Exercise of stock appreciation rights and options, Performance share awards, Restricted stock units | $ (3,593) | $ (6,559) | $ (1,636) | ||||||||||||||||
Compensation expense | 1,976 | 844 | 1,976 | 844 | |||||||||||||||
Other, Shares | (1) | ||||||||||||||||||
Other | (1) | (3) | (78) | (82) | |||||||||||||||
Ending balance, shares at Sep. 30, 2023 | 38,755 | ||||||||||||||||||
Ending balance at Sep. 30, 2023 | $ 10,000 | 185,986 | 1,886,432 | (483,932) | (62,370) | 1,536,116 | |||||||||||||
Beginning balance, shares at Jun. 30, 2024 | 38,409 | ||||||||||||||||||
Beginning balance at Jun. 30, 2024 | $ 1,688,781 | $ 10,000 | 193,778 | 2,121,838 | (559,269) | (77,566) | 1,688,781 | ||||||||||||
Net income | 92,063 | 92,063 | |||||||||||||||||
Other comprehensive loss | $ (8,942) | (8,942) | (8,942) | ||||||||||||||||
Cash Dividends per Common Share | $ 0.37 | ||||||||||||||||||
Cash dividends | (9) | (9) | |||||||||||||||||
Purchases of common stock for treasury, Shares | (52) | ||||||||||||||||||
Purchases of common stock for treasury, Amount | (10,479) | (10,479) | |||||||||||||||||
Exercise of stock appreciation rights and options, shares | 19 | ||||||||||||||||||
Performance share awards, shares | 34 | ||||||||||||||||||
Restricted stock units, shares | 37 | ||||||||||||||||||
Additional Paid in Capital, Exercise of stock appreciation rights and options, Performance share awards, Restricted stock units | (1,106) | $ (2,213) | $ (2,123) | ||||||||||||||||
Exercise of stock appreciation rights and options | $ (1,339) | ||||||||||||||||||
Performance share awards | $ (3,294) | ||||||||||||||||||
Restricted stock units | $ (2,136) | ||||||||||||||||||
Total Shareholders' Equity, Exercise of stock appreciation rights and options, Performance share awards, Restricted stock units | (2,445) | $ (5,507) | $ (4,259) | ||||||||||||||||
Compensation expense | 1,675 | $ 1,326 | 1,675 | $ 1,326 | |||||||||||||||
Other, Shares | (1) | ||||||||||||||||||
Other | (12) | (24) | (91) | (127) | |||||||||||||||
Ending balance, shares at Sep. 30, 2024 | 38,446 | ||||||||||||||||||
Ending balance at Sep. 30, 2024 | $ 1,752,077 | $ 10,000 | $ 191,325 | $ 2,213,868 | $ (576,608) | $ (86,508) | $ 1,752,077 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Sep. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the financial position of Applied Industrial Technologies, Inc. (the “Company”, or “Applied”) as of September 30, 2024, and the results of its operations and its cash flows for the three month periods ended September 30, 2024 and 2023, have been included. The condensed consolidated balance sheet as of June 30, 2024 has been derived from the audited consolidated financial statements at that date. This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended June 30, 2024. Operating results for the three month period ended September 30, 2024 are not necessarily indicative of the results that may be expected for the remainder of the fiscal year ending June 30, 2025. Inventory The Company uses the LIFO method of valuing U.S. inventories. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs and are subject to the final year-end LIFO inventory determination. LIFO expense of $1,976 and $4,591 in the three months ended September 30, 2024 and 2023, respectively, is recorded in cost of sales in the condensed statements of consolidated income. Recently Issued Accounting Guidance In December 2023, the Financial Accounting Standards Board (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 income tax 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 | 3 Months Ended |
Sep. 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 three months ended September 30, 2024 and 2023. Other countries consist of Mexico, Australia, New Zealand, Singapore, and Costa Rica. Three Months Ended September 30, 2024 2023 Service Center Based Distribution Engineered Solutions Total Service Center Based Distribution Engineered Solutions Total Geographic Areas: United States $ 625,682 $ 331,551 $ 957,233 $ 617,262 $ 342,096 $ 959,358 Canada 71,476 — 71,476 75,300 — 75,300 Other countries 52,581 17,654 70,235 53,971 6,559 60,530 Total $ 749,739 $ 349,205 $ 1,098,944 $ 746,533 $ 348,655 $ 1,095,188 The following tables present the Company’s percentage of revenue by reportable segment and major customer industry for the three months ended September 30, 2024 and 2023 (data excludes recent acquisitions): Three Months Ended September 30, 2024 2023 Service Center Based Distribution Engineered Solutions Total Service Center Based Distribution Engineered Solutions Total General Industry 35.2 % 39.0 % 36.4 % 34.7 % 37.4 % 35.5 % Industrial Machinery 8.1 % 22.6 % 12.5 % 8.9 % 25.2 % 14.1 % Food 15.3 % 3.1 % 11.5 % 13.7 % 3.0 % 10.3 % Metals 11.2 % 8.2 % 10.3 % 10.7 % 8.1 % 9.9 % Forest Products 11.8 % 3.2 % 9.2 % 12.5 % 3.8 % 9.7 % Chem/Petrochem 2.9 % 16.2 % 6.9 % 2.7 % 16.1 % 7.0 % Cement & Aggregate 7.3 % 1.3 % 5.5 % 7.1 % 1.2 % 5.2 % Transportation 3.8 % 4.7 % 4.1 % 3.7 % 3.6 % 3.7 % Oil & Gas 4.4 % 1.7 % 3.6 % 6.0 % 1.6 % 4.6 % Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % The following tables present the Company’s percentage of revenue by reportable segment and product line for the three months ended September 30, 2024 and 2023 (data excludes recent acquisitions): Three Months Ended September 30, 2024 2023 Service Center Based Distribution Engineered Solutions Total Service Center Based Distribution Engineered Solutions Total Power Transmission 37.9 % 11.0 % 29.7 % 37.6 % 10.1 % 28.9 % General MRO & Other 22.2 % 18.1 % 20.8 % 21.3 % 16.3 % 19.8 % Fluid Power 13.9 % 33.8 % 20.0 % 14.1 % 38.7 % 21.9 % Bearings, Linear & Seals 26.0 % 0.5 % 18.2 % 27.0 % 0.5 % 18.5 % Specialty Flow Control — % 36.6 % 11.3 % — % 34.4 % 10.9 % Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % Contract Assets The Company’s contract assets consist of unbilled amounts resulting from contracts for which revenue is recognized over time using the cost-to-cost method, and for which revenue recognized exceeds the amount billed to the customer. Activity related to contract assets, which are included in other current assets on the condensed consolidated balance sheet, is as follows: September 30, 2024 June 30, 2024 $ Change % Change Contract assets $ 12,543 $ 12,648 $ (105) (0.8) % The difference between the opening and closing balances of the Company's contract assets primarily results from the timing difference between the Company's performance and when the customer is billed. |
Business Combinations
Business Combinations | 12 Months Ended |
Jun. 30, 2024 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | BUSINESS COMBINATIONS The operating results of all acquired entities are included within the consolidated operating results of the Company from the date of each respective acquisition. Fiscal 2025 Acquisitions On August 1, 2024, the Company acquired substantially all of the net assets of Total Machine Solutions (TMS), a Fairfield, New Jersey based provider of electrical and mechanical power transmission products and solutions including bearings, drives, motors, conveyor components, and related repair services. TMS is included in the Service Center Based Distribution segment. The purchase price for TMS was $6,500, net tangible assets acquired were $1,024, and intangible assets including goodwill were $5,476 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 August 1, 2024, the Company acquired 100% of the outstanding shares of Stanley Proctor, a Twinsburg, Ohio based provider of hydraulic, pneumatic, measurement, control, and instrumentation components, as well as fluid power engineered systems. Stanley Proctor is included in the Engineered Solutions segment. The purchase price for Stanley Proctor was $3,998, net tangible assets acquired were $548, and intangible assets including goodwill were $3,450 based upon preliminary estimated fair values at the acquisition date, which are subject to adjustment. The Company funded this acquisition using available cash. The acquisition price and the results of operations for the acquired entity are not material in relation to the Company's consolidated financial statements. Fiscal 2024 Acquisitions On May 1, 2024, the Company acquired 100% of the outstanding shares of Grupo Kopar (Kopar), a Monterrey, Mexico based provider of emerging automation technologies and engineered solutions. Kopar is included in the Engineered Solutions segment. The purchase price for the acquisition was $61,225, net liabilities assumed were $2,870, and intangible assets including goodwill were $64,095 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 $4,102, and intangible assets in cluding goodwill were $13,824 based upon estimated fair values at the acquisition date. The purchase price includes $1,800 of acquisition holdback payments, of which $900 was paid in the three months ended September 30, 2024. The remaining balance is included in other current liabilities on the condensed consolidated balance sheet as of September 30, 2024, and will be paid on the second anniversary 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, and industrial motion products, 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 $2,070, and intangible assets including goodwill were $4,149 based upon estimated fair values at the acquisition date. The purchase price includes $930 of acquisition holdback payments, of which $310 was paid in the three months ended September 30, 2024. The remaining balance is included in other current liabilities and other liabilities on the condensed consolidated balance sheet as of September 30, 2024, and will be paid on the 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. |
Goodwill and Intangibles
Goodwill and Intangibles | 3 Months Ended |
Sep. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | GOODWILL AND INTANGIBLES The changes in the carrying amount of goodwill for both the Service Center Based Distribution segment and the Engineered Solutions segment for the fiscal year ended June 30, 2024 and the three month period ended September 30, 2024 are as follows: Service Center Based Distribution Engineered Solutions Total 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 Goodwill acquired during the period 2,827 2,066 4,893 Other, primarily currency translation (71) — (71) Balance at September 30, 2024 $ 222,330 $ 401,887 $ 624,217 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 September 30, 2024 and June 30, 2024, accumulated goodwill impairment losses 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: September 30, 2024 Amount Accumulated Net Book Finite-Lived Identifiable Intangibles: Customer relationships $ 397,076 $ 211,513 $ 185,563 Trade names 88,836 36,399 52,437 Other 6,582 1,838 4,744 Total Identifiable Intangibles $ 492,494 $ 249,750 $ 242,744 June 30, 2024 Amount Accumulated Net Book Finite-Lived Identifiable 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 Identifiable Intangibles $ 487,908 $ 242,038 $ 245,870 Finite-lived identifiable intangible assets are written off when they become fully amortized. During the three month period ended September 30, 2024, the Company acquired identifiable intangible assets with a preliminary acquisition cost allocation and weighted-average life as follows: Acquisition Cost Allocation Weighted-Average life Customer relationships $ 2,738 20.0 Other 1,725 15.0 Total Identifiable Intangibles $ 4,463 18.1 Identifiable intangible assets with finite lives are reviewed for impairment when changes in conditions indicate carrying value may not be recoverable. Estimated future amortization expense by fiscal year (based on the Company’s identifiable intangible assets as of September 30, 2024) for the next five years is as follows: $22,000 for the remainder of 2025, $27,700 for 2026, $25,600 for 2027, $23,800 for 2028, $22,100 for 2029 and $20,700 for 2030. |
Debt
Debt | 3 Months Ended |
Sep. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | DEBT A summary of long-term debt, including the current portion, follows: September 30, 2024 June 30, 2024 Revolving credit facility $ 384,000 $ 384,000 Trade receivable securitization facility 188,300 188,300 Series E notes 25,000 25,000 Other 42 105 Total debt $ 597,342 $ 597,405 Less: unamortized debt issuance costs 51 71 $ 597,291 $ 597,334 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. Borrowings under this agreement bear interest, at the Company's election, at either the base rate plus a margin that ranges from 0 to 55 basis points based on net leverage ratio or SOFR plus a margin that ranges from 80 to 155 basis points based on the net leverage ratio. Borrowing capacity under this facility, without exercising the accordion feature, totaled $515,757 and $515,800 at September 30, 2024 and June 30, 2024, respectively, and are available to fund future acquisitions or other capital and operating requirements. These amounts are net of outstanding letters of credit of $243 and $200 at September 30, 2024 and June 30, 2024, respectively, to secure certain insurance obligations. The interest rate on the revolving credit facility was 5.75% and 6.24% as of September 30, 2024 and June 30, 2024, respectively. Additionally, the Company had letters of credit outstanding not associated with the revolving credit agreement, in the amount of $5,336 and $4,046 as of September 30, 2024 and June 30, 2024, respectively, in order to secure certain insurance obligations. Trade Receivable Securitization Facility In August 2018, the Company established a trade receivable securitization facility (the “AR Securitization Facility”). 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. The AR Securitization Facility's maximum borrowing capacity is $250,000, fees on amounts borrowed are 0.90% per year, and the term goes to August 4, 2026. Borrowing capacity is further subject to changes in the credit ratings of our customers, customer concentration levels or certain characteristics of the accounts receivable portfolio and, therefore, at certain times, we may not be able to fully access the $250,000 of borrowing capacity available under the AR Securitization Facility. Borrowings under the AR Securitization Facility carry variable interest rates tied to SOFR. The interest rate on the AR Securitization Facility as of September 30, 2024 and June 30, 2024 was 5.85% and 6.35%, respectively. Unsecured Shelf Facility At September 30, 2024 and June 30, 2024, the Company had borrowings outstanding under its unsecured shelf facility agreement with Prudential Investment Management of $25,000. Fees on this facility range from 0.25% to 1.25% per year based on the Company's leverage ratio at each quarter end. The “Series E” notes have a principal amount of $25,000, carry a fixed interest rate of 3.08%, and are due on October 30, 2024. Other Long-Term Borrowing |
Derivatives Derivatives
Derivatives Derivatives | 3 Months Ended |
Sep. 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 declined over time to $384,000 as principal payments were made. 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. The pay-fixed interest rate swap is considered a hybrid instrument with a financing component and an embedded at-market derivative that was designated as a cash flow hedge. The weighted average fixed pay rate is 1.58% and the interest rate swap is indexed to SOFR. The Company made various accounting elections related to changes in critical terms of the hedging relationship due to reference rate reform to preserve the hedging relationship. The interest rate swap converted $384,000 of variable rate debt to a rate of 2.48% as of September 30, 2024 and June 30, 2024. The fair value (Level 2 in the fair value hierarchy) of the interest rate cash flow hedge was $10,166 and $18,081 as of September 30, 2024 and June 30, 2024, respectively, which is included in other current assets and other assets in the condensed consolidated balance sheet. Amounts reclassified from other comprehensive loss, before tax, to interest (income) expense, net was income of $4,691 and $4,638 for the three months ended September 30, 2024 and 2023, respectively. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Sep. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Marketable securities measured at fair value at September 30, 2024 and June 30, 2024 totaled $24,360 and $22,519, respectively. The majority of these marketable securities are held in a rabbi trust for a non-qualified deferred compensation plan. The marketable securities are included in other assets on the accompanying condensed consolidated balance sheets and their fair values were determined using quoted market prices (Level 1 in the fair value hierarchy). As of September 30, 2024 and June 30, 2024, the carrying values of the Company's fixed interest rate debt outstanding under its unsecured shelf facility agreement with Prudential Investment Management approximated fair value (Level 2 in the fair value hierarchy). The revolving credit facility and the AR Securitization Facility contain variable interest rates and their carrying values approximate fair value (Level 2 in the fair value hierarchy). |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Sep. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS' EQUITY Accumulated Other Comprehensive Loss Changes in the accumulated other comprehensive loss are comprised of the following amounts, shown net of taxes: Three Months Ended September 30, 2024 Foreign currency translation adjustment Post-employment benefits Cash flow hedge Total accumulated other comprehensive loss Balance at June 30, 2024 $ (95,566) $ (391) $ 18,391 $ (77,566) Other comprehensive loss (2,256) — (3,141) (5,397) Amounts reclassified from accumulated other comprehensive loss — (3) (3,542) (3,545) Net current-period other comprehensive loss (2,256) (3) (6,683) (8,942) Balance at September 30, 2024 $ (97,822) $ (394) $ 11,708 $ (86,508) Three Months Ended September 30, 2023 Foreign currency translation adjustment Post-employment benefits Cash flow hedge Total accumulated other comprehensive loss Balance at June 30, 2023 $ (83,099) $ (197) $ 28,000 $ (55,296) Other comprehensive (loss) income (6,292) — 2,744 (3,548) Amounts reclassified from accumulated other comprehensive loss — (24) (3,502) (3,526) Net current-period other comprehensive loss (6,292) (24) (758) (7,074) Balance at September 30, 2023 $ (89,391) $ (221) $ 27,242 $ (62,370) Other Comprehensive Loss Details of other comprehensive loss are as follows: Three Months Ended September 30, 2024 2023 Pre-Tax Amount Tax Benefit Net Amount Pre-Tax Amount Tax Expense Net Amount Foreign currency translation adjustments $ (2,266) $ (10) $ (2,256) $ (6,270) $ 22 $ (6,292) Post-employment benefits: Reclassification of net actuarial gains and prior service cost into other (income) expense, net and included in net periodic pension costs (5) (2) (3) (30) (6) (24) Unrealized (loss) gain on cash flow hedge (4,159) (1,018) (3,141) 3,634 890 2,744 Reclassification of interest from cash flow hedge into interest (income) expense, net (4,691) (1,149) (3,542) (4,638) (1,136) (3,502) Other comprehensive loss $ (11,121) $ (2,179) $ (8,942) $ (7,304) $ (230) $ (7,074) Anti-dilutive Common Stock Equivalents |
Segment Information
Segment Information | 3 Months Ended |
Sep. 30, 2024 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The accounting policies of the Company’s reportable segments are generally the same as those used to prepare the condensed consolidated financial statements. LIFO expense of $1,976 and $4,591 in the three months ended September 30, 2024 and 2023, respectively, is recorded in cost of sales in the condensed statements of income, and is included in operating income for the related reportable segment, as the Company allocates LIFO expense between the segments. Intercompany sales, primarily from the Engineered Solutions segment to the Service Center Based Distribution segment, of $13,299 and $12,318, in the three months ended September 30, 2024 and 2023, respectively, have been eliminated in the Segment Financial Information tables below. Three Months Ended Service Center Based Distribution Engineered Solutions Total September 30, 2024 Net sales $ 749,739 $ 349,205 $ 1,098,944 Operating income for reportable segments 94,627 48,145 142,772 Assets used in the segment 1,894,467 1,108,744 3,003,211 Depreciation and amortization of property 4,419 1,505 5,924 Capital expenditures 4,435 1,114 5,549 September 30, 2023 Net sales $ 746,533 $ 348,655 $ 1,095,188 Operating income for reportable segments 96,881 49,595 146,476 Assets used in the segment 1,749,309 1,001,202 2,750,511 Depreciation and amortization of property 4,436 1,281 5,717 Capital expenditures 3,634 706 4,340 A reconciliation of operating income for reportable segments to the condensed consolidated income before income taxes is as follows: Three Months Ended September 30, 2024 2023 Operating income for reportable segments $ 142,772 $ 146,476 Adjustment for: Intangible amortization—Service Center Based Distribution 802 677 Intangible amortization—Engineered Solutions 6,798 6,716 Corporate and other expense, net 22,000 18,403 Total operating income 113,172 120,680 Interest (income) expense, net (627) 1,320 Other (income) expense, net (2,281) 431 Income before income taxes $ 116,080 $ 118,929 Corporate and other expense, net reflect expenses being allocated to the segments including corporate charges for working capital, logistics support, and other items. |
Other Expense (Income), Net
Other Expense (Income), Net | 3 Months Ended |
Sep. 30, 2024 | |
Other Income and Expenses [Abstract] | |
OTHER EXPENSE (INCOME), NET | OTHER (INCOME) EXPENSE, NET Other (income) expense, net consists of the following: Three Months Ended September 30, 2024 2023 Unrealized (gain) loss on assets held in rabbi trust for a non-qualified $ (1,207) $ 553 Gains on foreign currency transactions (886) (71) Net other periodic post-employment costs 36 26 Life insurance income, net (119) (137) Other, net (105) 60 Total other (income) expense, net $ (2,281) $ 431 |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Events | 3 Months Ended |
Sep. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 11. SUBSEQUENT EVENTS We evaluated events and transactions occurring subsequent to September 30, 2024 through the date the financial statements were issued noting no significant subsequent events requiring disclosure. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Sep. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Inventory, Policy [Policy Text Block] | Inventory |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Guidance In December 2023, the Financial Accounting Standards Board (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 income tax 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) | 3 Months Ended |
Sep. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from External Customers by Geographic Areas [Table Text Block] | The following tables present the Company's net sales by reportable segment and by geographic areas based on the location of the facility shipping the product for the three months ended September 30, 2024 and 2023. Other countries consist of Mexico, Australia, New Zealand, Singapore, and Costa Rica. Three Months Ended September 30, 2024 2023 Service Center Based Distribution Engineered Solutions Total Service Center Based Distribution Engineered Solutions Total Geographic Areas: United States $ 625,682 $ 331,551 $ 957,233 $ 617,262 $ 342,096 $ 959,358 Canada 71,476 — 71,476 75,300 — 75,300 Other countries 52,581 17,654 70,235 53,971 6,559 60,530 Total $ 749,739 $ 349,205 $ 1,098,944 $ 746,533 $ 348,655 $ 1,095,188 |
Disaggregation of Revenue [Table Text Block] | The following tables present the Company’s percentage of revenue by reportable segment and major customer industry for the three months ended September 30, 2024 and 2023 (data excludes recent acquisitions): Three Months Ended September 30, 2024 2023 Service Center Based Distribution Engineered Solutions Total Service Center Based Distribution Engineered Solutions Total General Industry 35.2 % 39.0 % 36.4 % 34.7 % 37.4 % 35.5 % Industrial Machinery 8.1 % 22.6 % 12.5 % 8.9 % 25.2 % 14.1 % Food 15.3 % 3.1 % 11.5 % 13.7 % 3.0 % 10.3 % Metals 11.2 % 8.2 % 10.3 % 10.7 % 8.1 % 9.9 % Forest Products 11.8 % 3.2 % 9.2 % 12.5 % 3.8 % 9.7 % Chem/Petrochem 2.9 % 16.2 % 6.9 % 2.7 % 16.1 % 7.0 % Cement & Aggregate 7.3 % 1.3 % 5.5 % 7.1 % 1.2 % 5.2 % Transportation 3.8 % 4.7 % 4.1 % 3.7 % 3.6 % 3.7 % Oil & Gas 4.4 % 1.7 % 3.6 % 6.0 % 1.6 % 4.6 % Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % The following tables present the Company’s percentage of revenue by reportable segment and product line for the three months ended September 30, 2024 and 2023 (data excludes recent acquisitions): Three Months Ended September 30, 2024 2023 Service Center Based Distribution Engineered Solutions Total Service Center Based Distribution Engineered Solutions Total Power Transmission 37.9 % 11.0 % 29.7 % 37.6 % 10.1 % 28.9 % General MRO & Other 22.2 % 18.1 % 20.8 % 21.3 % 16.3 % 19.8 % Fluid Power 13.9 % 33.8 % 20.0 % 14.1 % 38.7 % 21.9 % Bearings, Linear & Seals 26.0 % 0.5 % 18.2 % 27.0 % 0.5 % 18.5 % Specialty Flow Control — % 36.6 % 11.3 % — % 34.4 % 10.9 % Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % |
Contract with Customer, Asset and Liability [Table Text Block] | Contract Assets The Company’s contract assets consist of unbilled amounts resulting from contracts for which revenue is recognized over time using the cost-to-cost method, and for which revenue recognized exceeds the amount billed to the customer. Activity related to contract assets, which are included in other current assets on the condensed consolidated balance sheet, is as follows: September 30, 2024 June 30, 2024 $ Change % Change Contract assets $ 12,543 $ 12,648 $ (105) (0.8) % The difference between the opening and closing balances of the Company's contract assets primarily results from the timing difference between the Company's performance and when the customer is billed. |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 3 Months Ended |
Sep. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying amount of goodwill by reportable segment | The changes in the carrying amount of goodwill for both the Service Center Based Distribution segment and the Engineered Solutions segment for the fiscal year ended June 30, 2024 and the three month period ended September 30, 2024 are as follows: Service Center Based Distribution Engineered Solutions Total 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 Goodwill acquired during the period 2,827 2,066 4,893 Other, primarily currency translation (71) — (71) Balance at September 30, 2024 $ 222,330 $ 401,887 $ 624,217 |
Schedule of Intangible Assets | The Company’s identifiable intangible assets resulting from business combinations are amortized over their estimated period of benefit and consist of the following: September 30, 2024 Amount Accumulated Net Book Finite-Lived Identifiable Intangibles: Customer relationships $ 397,076 $ 211,513 $ 185,563 Trade names 88,836 36,399 52,437 Other 6,582 1,838 4,744 Total Identifiable Intangibles $ 492,494 $ 249,750 $ 242,744 June 30, 2024 Amount Accumulated Net Book Finite-Lived Identifiable 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 Identifiable Intangibles $ 487,908 $ 242,038 $ 245,870 Finite-lived identifiable intangible assets are written off when they become fully amortized. |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | During the three month period ended September 30, 2024, the Company acquired identifiable intangible assets with a preliminary acquisition cost allocation and weighted-average life as follows: Acquisition Cost Allocation Weighted-Average life Customer relationships $ 2,738 20.0 Other 1,725 15.0 Total Identifiable Intangibles $ 4,463 18.1 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Sep. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | A summary of long-term debt, including the current portion, follows: September 30, 2024 June 30, 2024 Revolving credit facility $ 384,000 $ 384,000 Trade receivable securitization facility 188,300 188,300 Series E notes 25,000 25,000 Other 42 105 Total debt $ 597,342 $ 597,405 Less: unamortized debt issuance costs 51 71 $ 597,291 $ 597,334 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Sep. 30, 2024 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Accumulated Other Comprehensive Loss Changes in the accumulated other comprehensive loss are comprised of the following amounts, shown net of taxes: Three Months Ended September 30, 2024 Foreign currency translation adjustment Post-employment benefits Cash flow hedge Total accumulated other comprehensive loss Balance at June 30, 2024 $ (95,566) $ (391) $ 18,391 $ (77,566) Other comprehensive loss (2,256) — (3,141) (5,397) Amounts reclassified from accumulated other comprehensive loss — (3) (3,542) (3,545) Net current-period other comprehensive loss (2,256) (3) (6,683) (8,942) Balance at September 30, 2024 $ (97,822) $ (394) $ 11,708 $ (86,508) Three Months Ended September 30, 2023 Foreign currency translation adjustment Post-employment benefits Cash flow hedge Total accumulated other comprehensive loss Balance at June 30, 2023 $ (83,099) $ (197) $ 28,000 $ (55,296) Other comprehensive (loss) income (6,292) — 2,744 (3,548) Amounts reclassified from accumulated other comprehensive loss — (24) (3,502) (3,526) Net current-period other comprehensive loss (6,292) (24) (758) (7,074) Balance at September 30, 2023 $ (89,391) $ (221) $ 27,242 $ (62,370) |
Schedule of Comprehensive Income (Loss) [Table Text Block] | Other Comprehensive Loss Details of other comprehensive loss are as follows: Three Months Ended September 30, 2024 2023 Pre-Tax Amount Tax Benefit Net Amount Pre-Tax Amount Tax Expense Net Amount Foreign currency translation adjustments $ (2,266) $ (10) $ (2,256) $ (6,270) $ 22 $ (6,292) Post-employment benefits: Reclassification of net actuarial gains and prior service cost into other (income) expense, net and included in net periodic pension costs (5) (2) (3) (30) (6) (24) Unrealized (loss) gain on cash flow hedge (4,159) (1,018) (3,141) 3,634 890 2,744 Reclassification of interest from cash flow hedge into interest (income) expense, net (4,691) (1,149) (3,542) (4,638) (1,136) (3,502) Other comprehensive loss $ (11,121) $ (2,179) $ (8,942) $ (7,304) $ (230) $ (7,074) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Sep. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment financial information | Three Months Ended Service Center Based Distribution Engineered Solutions Total September 30, 2024 Net sales $ 749,739 $ 349,205 $ 1,098,944 Operating income for reportable segments 94,627 48,145 142,772 Assets used in the segment 1,894,467 1,108,744 3,003,211 Depreciation and amortization of property 4,419 1,505 5,924 Capital expenditures 4,435 1,114 5,549 September 30, 2023 Net sales $ 746,533 $ 348,655 $ 1,095,188 Operating income for reportable segments 96,881 49,595 146,476 Assets used in the segment 1,749,309 1,001,202 2,750,511 Depreciation and amortization of property 4,436 1,281 5,717 Capital expenditures 3,634 706 4,340 |
Reconciliation of operating income for reportable segments to the consolidated income before income taxes | A reconciliation of operating income for reportable segments to the condensed consolidated income before income taxes is as follows: Three Months Ended September 30, 2024 2023 Operating income for reportable segments $ 142,772 $ 146,476 Adjustment for: Intangible amortization—Service Center Based Distribution 802 677 Intangible amortization—Engineered Solutions 6,798 6,716 Corporate and other expense, net 22,000 18,403 Total operating income 113,172 120,680 Interest (income) expense, net (627) 1,320 Other (income) expense, net (2,281) 431 Income before income taxes $ 116,080 $ 118,929 |
Other Expense (Income), Net (Ta
Other Expense (Income), Net (Tables) | 3 Months Ended |
Sep. 30, 2024 | |
Other Income and Expenses [Abstract] | |
Other expense (income), net | Other (income) expense, net consists of the following: Three Months Ended September 30, 2024 2023 Unrealized (gain) loss on assets held in rabbi trust for a non-qualified $ (1,207) $ 553 Gains on foreign currency transactions (886) (71) Net other periodic post-employment costs 36 26 Life insurance income, net (119) (137) Other, net (105) 60 Total other (income) expense, net $ (2,281) $ 431 |
Basis of Presentation (Details
Basis of Presentation (Details Textuals) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2024 | Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Inventory, LIFO Reserve, Period Charge | $ 1,976 | $ 4,591 |
Revenue Recognition Revenue R_3
Revenue Recognition Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2024 | Sep. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 1,098,944 | $ 1,095,188 |
UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 957,233 | 959,358 |
CANADA | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 71,476 | 75,300 |
Other Countries [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 70,235 | 60,530 |
Service Center Based Distribution Segment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 749,739 | 746,533 |
Service Center Based Distribution Segment [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 625,682 | 617,262 |
Service Center Based Distribution Segment [Member] | CANADA | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 71,476 | 75,300 |
Service Center Based Distribution Segment [Member] | Other Countries [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 52,581 | 53,971 |
Engineered Solutions Segment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 349,205 | 348,655 |
Engineered Solutions Segment [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 331,551 | 342,096 |
Engineered Solutions Segment [Member] | CANADA | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Engineered Solutions Segment [Member] | Other Countries [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 17,654 | $ 6,559 |
Revenue Recognition Revenue R_4
Revenue Recognition Revenue Recognition (Details 1) | 3 Months Ended | |
Sep. 30, 2024 | Sep. 30, 2023 | |
General Industry [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Customer Industry, Percent | 36.40% | 35.50% |
Industrial Machinery [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Customer Industry, Percent | 12.50% | 14.10% |
Food [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Customer Industry, Percent | 11.50% | 10.30% |
Metals [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Customer Industry, Percent | 10.30% | 9.90% |
Forest Products [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Customer Industry, Percent | 9.20% | 9.70% |
Chem/Petrochem [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Customer Industry, Percent | 6.90% | 7% |
Cement & Aggregate [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Customer Industry, Percent | 5.50% | 5.20% |
Transportation [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Customer Industry, Percent | 4.10% | 3.70% |
Oil & Gas [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Customer Industry, Percent | 3.60% | 4.60% |
Total | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Customer Industry, Percent | 100% | 100% |
Service Center Based Distribution Segment [Member] | General Industry [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Customer Industry, Percent | 35.20% | 34.70% |
Service Center Based Distribution Segment [Member] | Industrial Machinery [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Customer Industry, Percent | 8.10% | 8.90% |
Service Center Based Distribution Segment [Member] | Food [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Customer Industry, Percent | 15.30% | 13.70% |
Service Center Based Distribution Segment [Member] | Metals [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Customer Industry, Percent | 11.20% | 10.70% |
Service Center Based Distribution Segment [Member] | Forest Products [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Customer Industry, Percent | 11.80% | 12.50% |
Service Center Based Distribution Segment [Member] | Chem/Petrochem [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Customer Industry, Percent | 2.90% | 2.70% |
Service Center Based Distribution Segment [Member] | Cement & Aggregate [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Customer Industry, Percent | 7.30% | 7.10% |
Service Center Based Distribution Segment [Member] | Transportation [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Customer Industry, Percent | 3.80% | 3.70% |
Service Center Based Distribution Segment [Member] | Oil & Gas [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Customer Industry, Percent | 4.40% | 6% |
Service Center Based Distribution Segment [Member] | Total | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Customer Industry, Percent | 100% | 100% |
Engineered Solutions Segment [Member] | General Industry [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Customer Industry, Percent | 39% | 37.40% |
Engineered Solutions Segment [Member] | Industrial Machinery [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Customer Industry, Percent | 22.60% | 25.20% |
Engineered Solutions Segment [Member] | Food [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Customer Industry, Percent | 3.10% | 3% |
Engineered Solutions Segment [Member] | Metals [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Customer Industry, Percent | 8.20% | 8.10% |
Engineered Solutions Segment [Member] | Forest Products [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Customer Industry, Percent | 3.20% | 3.80% |
Engineered Solutions Segment [Member] | Chem/Petrochem [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Customer Industry, Percent | 16.20% | 16.10% |
Engineered Solutions Segment [Member] | Cement & Aggregate [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Customer Industry, Percent | 1.30% | 1.20% |
Engineered Solutions Segment [Member] | Transportation [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Customer Industry, Percent | 4.70% | 3.60% |
Engineered Solutions Segment [Member] | Oil & Gas [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Customer Industry, Percent | 1.70% | 1.60% |
Engineered Solutions Segment [Member] | Total | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Customer Industry, Percent | 100% | 100% |
Revenue Recognition Revenue R_5
Revenue Recognition Revenue Recognition (Details 2) | 3 Months Ended | |
Sep. 30, 2024 | Sep. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Product Line, Percent | 100% | 100% |
Power Transmission [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Product Line, Percent | 29.70% | 28.90% |
General MRO & Other [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Product Line, Percent | 20.80% | 19.80% |
Fluid Power [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Product Line, Percent | 20% | 21.90% |
Bearings, Linear & Seals [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Product Line, Percent | 18.20% | 18.50% |
Specialty Flow Control [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Product Line, Percent | 11.30% | 10.90% |
Service Center Based Distribution Segment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Product Line, Percent | 100% | 100% |
Service Center Based Distribution Segment [Member] | Power Transmission [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Product Line, Percent | 37.90% | 37.60% |
Service Center Based Distribution Segment [Member] | General MRO & Other [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Product Line, Percent | 22.20% | 21.30% |
Service Center Based Distribution Segment [Member] | Fluid Power [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Product Line, Percent | 13.90% | 14.10% |
Service Center Based Distribution Segment [Member] | Bearings, Linear & Seals [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Product Line, Percent | 26% | 27% |
Service Center Based Distribution Segment [Member] | Specialty Flow Control [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Product Line, Percent | 0% | 0% |
Engineered Solutions Segment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Product Line, Percent | 100% | 100% |
Engineered Solutions Segment [Member] | Power Transmission [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Product Line, Percent | 11% | 10.10% |
Engineered Solutions Segment [Member] | General MRO & Other [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Product Line, Percent | 18.10% | 16.30% |
Engineered Solutions Segment [Member] | Fluid Power [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Product Line, Percent | 33.80% | 38.70% |
Engineered Solutions Segment [Member] | Bearings, Linear & Seals [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Product Line, Percent | 0.50% | 0.50% |
Engineered Solutions Segment [Member] | Specialty Flow Control [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated Revenue by Product Line, Percent | 36.60% | 34.40% |
Revenue Recognition Revenue R_6
Revenue Recognition Revenue Recognition (Details 3) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2024 | Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | ||
Contract Assets | $ 12,543 | $ 12,648 |
Contract Assets Period $ Change | $ (105) | |
Contract Assets Period % Change | (0.80%) |
Business Combinations (Details
Business Combinations (Details Textuals) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2024 | Sep. 30, 2023 | Jun. 30, 2024 | Aug. 01, 2024 | May 01, 2024 | Sep. 01, 2023 | Aug. 01, 2023 | |
Acquisition holdback payments | $ 1,210 | $ 562 | |||||
Total Machine Solutions | |||||||
Total Consideration | 6,500 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 1,024 | ||||||
Intangible Assets, Net (Including Goodwill) | 5,476 | ||||||
Stanley Proctor | |||||||
Total Consideration | 3,998 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 548 | ||||||
Intangible Assets, Net (Including Goodwill) | $ 3,450 | ||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100% | ||||||
Grupo Kopar | |||||||
Total Consideration | $ 61,225 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 2,870 | ||||||
Intangible Assets, Net (Including Goodwill) | $ 64,095 | ||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100% | ||||||
Bearing Distributors, Inc. | |||||||
Total Consideration | 17,926 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 4,102 | ||||||
Intangible Assets, Net (Including Goodwill) | 13,824 | ||||||
Funding from Holdback Payments | $ 1,800 | ||||||
Acquisition holdback payments | 900 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3% | ||||||
Cangro Industries, Inc. | |||||||
Total Consideration | $ 6,219 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 2,070 | ||||||
Intangible Assets, Net (Including Goodwill) | 4,149 | ||||||
Funding from Holdback Payments | $ 930 | ||||||
Acquisition holdback payments | $ 310 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 1% |
Goodwill and Intangibles (Detai
Goodwill and Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2024 | Jun. 30, 2024 | |
Changes in the carrying amount of goodwill by reportable segment | ||
Balance at beginning of period | $ 619,395 | $ 578,418 |
Goodwill acquired during the period | 4,893 | 42,346 |
Other, primarily currency translation | (71) | (1,369) |
Balance at September 30, 2024 | 624,217 | 619,395 |
Service Center Based Distribution Segment [Member] | ||
Changes in the carrying amount of goodwill by reportable segment | ||
Balance at beginning of period | 219,574 | 211,231 |
Goodwill acquired during the period | 2,827 | 9,712 |
Other, primarily currency translation | (71) | (1,369) |
Balance at September 30, 2024 | 222,330 | 219,574 |
Engineered Solutions Segment [Member] | ||
Changes in the carrying amount of goodwill by reportable segment | ||
Balance at beginning of period | 399,821 | 367,187 |
Goodwill acquired during the period | 2,066 | 32,634 |
Other, primarily currency translation | 0 | 0 |
Balance at September 30, 2024 | $ 401,887 | $ 399,821 |
Goodwill and Intangibles (Det_2
Goodwill and Intangibles (Details 1) - USD ($) $ in Thousands | Sep. 30, 2024 | Jun. 30, 2024 |
Amortization details resulting from business combinations | ||
Amount | $ 492,494 | $ 487,908 |
Accumulated Amortization | 249,750 | 242,038 |
Net Book Value | 242,744 | 245,870 |
Customer relationships | ||
Amortization details resulting from business combinations | ||
Amount | 397,076 | 394,114 |
Accumulated Amortization | 211,513 | 205,422 |
Net Book Value | 185,563 | 188,692 |
Trade names | ||
Amortization details resulting from business combinations | ||
Amount | 88,836 | 88,848 |
Accumulated Amortization | 36,399 | 34,891 |
Net Book Value | 52,437 | 53,957 |
Other Intangible Assets | ||
Amortization details resulting from business combinations | ||
Amount | 6,582 | 4,946 |
Accumulated Amortization | 1,838 | 1,725 |
Net Book Value | $ 4,744 | $ 3,221 |
Goodwill and Intangibles (Det_3
Goodwill and Intangibles (Details 2) $ in Thousands | 3 Months Ended |
Sep. 30, 2024 USD ($) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquisition Cost Allocation | $ 4,463 |
Weighted-Average life | 18 years 1 month 6 days |
Customer Relationships [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquisition Cost Allocation | $ 2,738 |
Weighted-Average life | 20 years |
Other Intangible Assets [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquisition Cost Allocation | $ 1,725 |
Weighted-Average life | 15 years |
Goodwill and Intangibles (Det_4
Goodwill and Intangibles (Details Textuals) $ in Thousands | 12 Months Ended | |
Jun. 30, 2024 | Sep. 30, 2024 USD ($) | |
Goodwill [Line Items] | ||
Number of Reporting Units | 8 | |
Goodwill and Intangibles (Textuals) [Abstract] | ||
Amortization expense for the remainder of 2025 | $ 22,000 | |
Amortization expense for 2026 | 27,700 | |
Amortization expense for 2027 | 25,600 | |
Amortization expense for 2028 | 23,800 | |
Amortization expense for 2029 | 22,100 | |
Amortization expense for 2030 | 20,700 | |
Service Center Based Distribution Segment [Member] | ||
Goodwill [Line Items] | ||
Accumulated goodwill impairment losses | 64,794 | |
Engineered Solutions Segment [Member] | ||
Goodwill [Line Items] | ||
Accumulated goodwill impairment losses | $ 167,605 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2024 | Jun. 30, 2024 |
Long-term Debt Instruments [Line Items] | ||
Revolving credit facility | $ 384,000 | $ 384,000 |
Total debt | 597,342 | 597,405 |
Less: unamortized debt issuance costs | 51 | 71 |
Debt, Long-term and Short-term, Combined Amount | 597,291 | 597,334 |
Asset-backed Securities, Securitized Loans and Receivables [Member] | ||
Long-term Debt Instruments [Line Items] | ||
Trade receivable securitization facility | 188,300 | 188,300 |
Prudential Facility - Series E [Member] [Member] | ||
Long-term Debt Instruments [Line Items] | ||
Long-term Debt | 25,000 | 25,000 |
State of Ohio Assumed Debt [Member] | ||
Long-term Debt Instruments [Line Items] | ||
Long-term Debt | $ 42 | $ 105 |
Debt (Textuals) (Details)
Debt (Textuals) (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2024 | Jun. 30, 2024 | |
Long-term Debt Instruments [Line Items] | ||
Letters of Credit Outstanding, Amount | $ 5,336,000 | $ 4,046,000 |
Asset-backed Securities, Securitized Loans and Receivables [Member] | ||
Long-term Debt Instruments [Line Items] | ||
Debt Instrument, Face Amount | $ 250,000,000 | |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 5.85% | 6.35% |
Debt Instrument, Interest Rate, Stated Percentage | 0.90% | |
Prudential Facility [Domain] | ||
Long-term Debt Instruments [Line Items] | ||
Long-term Debt | $ 25,000,000 | |
Prudential Facility - Series E [Member] [Member] | ||
Long-term Debt Instruments [Line Items] | ||
Long-term Debt | $ 25,000,000 | $ 25,000,000 |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.08% | |
State of Ohio Assumed Debt [Member] | ||
Long-term Debt Instruments [Line Items] | ||
Debt Instrument, Face Amount | $ 2,359,000 | |
Long-term Debt | $ 42,000 | 105,000 |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 1.50% | |
Minimum [Member] | Prudential Facility [Domain] | ||
Long-term Debt Instruments [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 0.25% | |
Maximum [Member] | Prudential Facility [Domain] | ||
Long-term Debt Instruments [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.25% | |
Revolving Credit Facility [Member] | ||
Long-term Debt Instruments [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 900,000,000 | |
Debt Instrument, Face Amount | 500,000,000 | |
Line of Credit Facility, Remaining Borrowing Capacity | 515,757,000 | 515,800,000 |
Letters of Credit Outstanding, Amount | $ 243,000 | $ 200,000 |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 5.75% | 6.24% |
Revolving Credit Facility [Member] | Minimum [Member] | ||
Long-term Debt Instruments [Line Items] | ||
Variable Interest Rate Base Rate Plus Margin | $ 0 | |
Variable interest rate, SOFR plus margin | 8,000% | |
Revolving Credit Facility [Member] | Maximum [Member] | ||
Long-term Debt Instruments [Line Items] | ||
Variable Interest Rate Base Rate Plus Margin | $ 55 | |
Variable interest rate, SOFR plus margin | 15,500% |
Derivatives Derivatives (Detail
Derivatives Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Sep. 30, 2024 | Sep. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2022 | |
Derivative [Line Items] | ||||
Derivative, Amount of Hedged Item | $ 384,000 | $ 463,000 | ||
Derivative, Fixed Interest Rate | 1.58% | |||
Derivative, Variable Interest Rate | 2.48% | |||
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 10,166 | $ 18,081 | ||
Reclassification of interest from cash flow hedge into interest (income) expense, net, Pre-Tax | $ (4,691) | $ (4,638) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2024 | Jun. 30, 2024 |
Level 1 [Member] | Recurring [Member] | ||
Fair Value Measurements (Textuals) [Line Items] | ||
Marketable securities | $ 24,360 | $ 22,519 |
Shareholders' Equity Accumulate
Shareholders' Equity Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2024 | Sep. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | $ (77,566) | |
Other comprehensive (loss) income, Cash flow hedge | (3,141) | $ 2,744 |
Amounts reclassified from accumulated other comprehensive (loss) income, Cash flow hedge | 3,542 | 3,502 |
Net current-period other comprehensive income (loss), net of taxes, Foreign Currency Translation Adjustment | (2,256) | (6,292) |
Net current-period other comprehensive income (loss), net of taxes, Total accumulated other comprehensive income (loss) | (8,942) | (7,074) |
Balance at end of period | (86,508) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from accumulated other comprehensive (loss) income | (3,545) | (3,526) |
Amounts reclassified from accumulated other comprehensive (loss) income, Postemployment benefits | (3) | (24) |
Amounts reclassified from accumulated other comprehensive (loss) income, Cash flow hedge | (3,542) | (3,502) |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | (95,566) | (83,099) |
Other comprehensive (loss) income, Foreign Currency Translation Adjustment | (2,256) | (6,292) |
Amounts reclassified from accumulated other comprehensive (loss) income | 0 | 0 |
Net current-period other comprehensive income (loss), net of taxes, Foreign Currency Translation Adjustment | (2,256) | (6,292) |
Balance at end of period | (97,822) | (89,391) |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | (391) | (197) |
Other comprehensive (loss) income, Postemployment Benefits, | 0 | 0 |
Net current-period other comprehensive income (loss), net of taxes, Postemployment benefits | (3) | (24) |
Balance at end of period | (394) | (221) |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | 18,391 | 28,000 |
Other comprehensive (loss) income, Cash flow hedge | (3,141) | 2,744 |
Net current-period other comprehensive income (loss), net of taxes, Cash flow hedge | (6,683) | (758) |
Balance at end of period | 11,708 | 27,242 |
AOCI Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | (77,566) | (55,296) |
Other comprehensive (loss) income, Total accumulated other comprehensive income (loss) | (5,397) | (3,548) |
Net current-period other comprehensive income (loss), net of taxes, Total accumulated other comprehensive income (loss) | (8,942) | (7,074) |
Balance at end of period | $ (86,508) | $ (62,370) |
Shareholders' Equity (Details)
Shareholders' Equity (Details) 1 - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2024 | Sep. 30, 2023 | |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments, pre-Tax | $ (2,266) | $ (6,270) |
Foreign currency translation adjustments, Tax | (10) | 22 |
Foreign currency translation adjustments, Net of Tax | (2,256) | (6,292) |
Post-employment benefits: | ||
Reclassification of net actuarial gains and prior service cost into other (income) expense, net and included in net periodic pension costs, Pre-Tax | (5) | (30) |
Reclassification of net actuarial gains and prior service cost into other (income) expense, net and included in net periodic pension costs, Tax | (2) | (6) |
Reclassification of net actuarial gains and prior service cost into other (income) expense, net and included in net periodic pension costs, Net of Tax | (3) | (24) |
Unrealized (loss) gain on cash flow hedge, Pre-Tax | (4,159) | 3,634 |
Unrealized (loss) gain on cash flow hedge, Tax | (1,018) | 890 |
Unrealized (loss) gain on cash flow hedge, Net of Tax | (3,141) | 2,744 |
Reclassification of interest from cash flow hedge into interest (income) expense, net, Pre-Tax | (4,691) | (4,638) |
Reclassification of interest from cash flow hedge into interest (income) expense, Tax | (1,149) | (1,136) |
Reclassification of interest from cash flow hedge into interest (income) expense, Net of Tax | (3,542) | (3,502) |
Other Comprehensive Loss, Pre-Tax | (11,121) | (7,304) |
Other Comprehensive Loss, Tax | (2,179) | (230) |
Other Comprehensive Loss, Net of Tax | $ (8,942) | $ (7,074) |
Shareholders' Equity (Textuals)
Shareholders' Equity (Textuals) (Details) - shares shares in Thousands | 3 Months Ended | |
Sep. 30, 2024 | Sep. 30, 2023 | |
Stockholders' Equity Note [Abstract] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 87 | 96 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Jun. 30, 2024 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 1,098,944 | $ 1,095,188 | |
Operating income for reportable segments | 113,172 | 120,680 | |
Assets used in business | 3,003,211 | 2,750,511 | $ 2,951,910 |
Depreciation and amortization of property | 5,924 | 5,717 | |
Capital expenditures | 5,549 | 4,340 | |
Service Center Based Distribution Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 749,739 | 746,533 | |
Operating income for reportable segments | 94,627 | 96,881 | |
Assets used in business | 1,894,467 | 1,749,309 | |
Depreciation and amortization of property | 4,419 | 4,436 | |
Capital expenditures | 4,435 | 3,634 | |
Engineered Solutions Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 349,205 | 348,655 | |
Operating income for reportable segments | 48,145 | 49,595 | |
Assets used in business | 1,108,744 | 1,001,202 | |
Depreciation and amortization of property | 1,505 | 1,281 | |
Capital expenditures | 1,114 | 706 | |
Reportable Segments | |||
Segment Reporting Information [Line Items] | |||
Operating income for reportable segments | $ 142,772 | $ 146,476 |
Segment Information (Details 1)
Segment Information (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2024 | Sep. 30, 2023 | |
Reconciliation of operating income for reportable segments to the consolidated income before income taxes | ||
Operating income for reportable segments | $ 113,172 | $ 120,680 |
Adjustment for: | ||
Intangible amortization | 7,600 | 7,393 |
Corporate and other expense, net | 22,000 | 18,403 |
Total operating income | 113,172 | 120,680 |
Interest (income) expense, net | (627) | 1,320 |
Other (income) expense, net | (2,281) | 431 |
Income before income taxes | 116,080 | 118,929 |
Reportable Segments | ||
Reconciliation of operating income for reportable segments to the consolidated income before income taxes | ||
Operating income for reportable segments | 142,772 | 146,476 |
Adjustment for: | ||
Total operating income | 142,772 | 146,476 |
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 | 94,627 | 96,881 |
Adjustment for: | ||
Intangible amortization | 802 | 677 |
Total operating income | 94,627 | 96,881 |
Engineered Solutions Segment [Member] | ||
Reconciliation of operating income for reportable segments to the consolidated income before income taxes | ||
Operating income for reportable segments | 48,145 | 49,595 |
Adjustment for: | ||
Intangible amortization | 6,798 | 6,716 |
Total operating income | $ 48,145 | $ 49,595 |
Segment Information (Details Te
Segment Information (Details Textuals) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2024 | Sep. 30, 2023 | |
Segment Reporting Information [Line Items] | ||
Inventory, LIFO Reserve, Period Charge | $ 1,976 | $ 4,591 |
Net sales | 1,098,944 | 1,095,188 |
Intersegment Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 13,299 | $ 12,318 |
Other Expense (Income), Net (De
Other Expense (Income), Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2024 | Sep. 30, 2023 | |
Other Income and Expenses [Abstract] | ||
Unrealized (gain) loss on assets held in rabbi trust for a non-qualified deferred compensation plan | $ (1,207) | $ 553 |
Gains on foreign currency transactions | (886) | (71) |
Net other periodic post-employment costs | 36 | 26 |
Life insurance income, net | (119) | (137) |
Other, net | (105) | 60 |
Total other (income) expense, net | $ (2,281) | $ 431 |