invested in working capital, particularly receivables and inventory.  
The most significant factor in the spike in 2010 operating cash 
flows related to the fiscal 2010 inventory management program 
which by June 30, 2010 had resulted in a $101.4 million 
reduction in U.S. bearing and drives products inventory amounts 
from the June 30, 2009 levels.   
Net cash used  in investing activities in fiscal 2012 included 
$26.0 million for capital expenditures and $14.7 million for 
acquisitions.  Capital expenditures included $16.7 million related 
to the ERP project.  In fiscal 2011, net cash used in investing 
activities included $30.5 million for acquisitions and $20.4 million 
for capital expenditures ($12.5 million related to the ERP project).  
Net cash used by investing activities was primarily used for capital 
expenditures in fiscal 2010.  Capital expenditures consist primarily 
of information  technology equipment and building improvements. 
Net cash used in financing activities in fiscal 2012 included $33.8 
million for dividend payments and $31.0 million to repurchase 
997,200 shares of treasury stock.  These uses were partially offset 
by $3.7 million of excess tax benefits from share-based 
compensation.  In fiscal 2011, we repaid $50.0 million under our 
revolving credit facility, $25.0 million under our private placement 
debt and $12.8 million related to the associated cross-currency 
swaps.  Additionally, we pa id dividends of $29.8 million and 
repurchased 189,600 shares of treasury stock for $6.1 million.  
In fiscal 2010, financing activities included dividends of 
$25.4 million, repayment of a net $5.0 million on our revolving 
credit facility, and $3.9 million to repurchase 159,900 shares of 
treasury stock.  The increase in dividends over the last three fiscal 
years is the result of increases in our dividend payout rates.  We 
paid dividends of $0.80, $0.70 and $0.60 per share in fiscal 
2012, 2011 and  2010, respectively.  
8 Applied Industrial Technologies, Inc. and Subsidiaries
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
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