Net periodic cost  $ 6,113   $ 4,466   $ 4,855   $ 334   $ 330   $ 372  
The estimated net actuarial loss and prior service cost for the pension plans that will be amortized from accumulated other 
comprehensive income (loss) into net periodic benefit cost over the next fiscal year are $735 and $83, respectively.  The estimated 
net actuarial gain and prior service cost for the retir ee health care benefits that will be amortized from accumulated other 
comprehensive income (loss) into net periodic benefit cost over the nex t fiscal year are $(53) and $107, respectively. 
Assumptions 
The discount rate is used to determine the present value of future paymen ts.  In general, the Company’s liability increases as t he 
discount rate decreases and decreases as the discount rate increases.  The Company computes a weighted-average disc ount rate 
taking into account anticipated plan payments and the associated interest rates from the Citigroup Pension Discount Yield Cur ve. 
The weigh ted-average actuarial assumptions used to determine benefit obligations and net periodic benefit cost for the plans were 
as follows:  
 Pension Benefits Retiree Health Care Benefits 
June 30, 2012 2011 2012 2011 
Assumptions used to determine benefit obligations at year end:     
Discount rate 2.8 % 4.5 % 4.0 % 5.5 % 
Rate of compensation increase N/A 5.5 % N/A N/A 
Assumptions used to determine net periodic benefit cost:     
Discount rate 3.5 % 4.3 % 5.5 % 5.5 % 
Expected return on plan assets 7.5 % 7.5 % N/A N/A 
Rate of compensation increase 5.5 % 5.5 % N/A N/A 
Due to freezing participant benefits in the SERP plan, the rate of compensation increase is no longer applicable.  The assumed health 
care cost trend rates used in measuring the accumulated benefit obligation for retiree health care benefits were 7.5% a nd 8% as of 
June 30, 2012 and 2011, respectively, decreasing to 5% by 2018.   
A one-percentage point change in the assumed health care cost trend rates would have had the following effects as of June 30, 
2012 and for the year then end ed:  
 One-Percentage Point 
 Increase Decrease 
Effect on total service and interest cost components of periodic expense $ 48   $ (39 ) 
Effect on postretirement benefit obligation 854   (701 ) 
  
32 Applied Industrial Technologies, Inc. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(In thousands, except per share amounts)
25358_AIT_Report_WT.indd   32 8/23/12   8:33 AM