period.  Non-qualified stock appreciation rights (SARs) and stock options are granted with an exercise price e qual to the closi ng 
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 fou r 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 co st as treasury shares and result in a reduction of 
shareholders’ equity in the consolidated balance sheets.  The Company uses the weigh ted-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. 
New Accounting Pronouncement 
In December 2011, the Financial Accounting Standards Board (FASB) issued authoritative guidance on the offsetting of assets and 
liabilities, which is effective for the Company on July 1 , 2013.  The guidance requires additional disclosures regarding  offsetting 
arrangements in accordance with ASC 210-20-45 to enable financial statement users to understand the effect of these 
arrangements on a company's financial position.  The Company is currently evaluating the effect the adoption of the guidance will 
have on its disclosures. 
NOTE 2: BUSINESS COMBINATIONS 
The Company acquired the following distributors to complement and extend its business over a broader geographic area.  Results of 
operations for the acquired business es are part of the Service Center Based Distribution segment.  The results of operations for these 
acquisitions are not material for any year presented.  Results of operations of acquired businesses are included in the accompanyi ng 
consolidated financial statements from their respective acquisition dates based on the Company’s consolidation policy.   
Fiscal 2012 Acquisitions 
In February 2012, the Company acquired Solutions Industrielles Chicoutimi, which provides be arings, power transmission products 
and repair services and Spécialités Industrielles Harvey, which distributes bearings and power transmission products, plus hydraulic, 
pneumatic and electrical components.  In August 2011, the Company acquired Chaines-Plus , a distributor of bearings, power 
transmission and related products.  These distributors are all located in Quebec, Canada.   
Fiscal 2011 Acquisitions 
In May 2011, the Company acquired Gulf Coast Bearing & Supply Co., a full  line bearing and power transmission distributor, located 
in the U.S.  In July 2010, the Company acquired UZ Engineered Products, a distributor of industrial supply products for maintenance, 
repair, and operational needs, in the government and commercial sectors, throughout the U.S. and Canada.  In August 2010, the 
Company acquired SCS Supply Group, a distributor of bearings, power transmission components, electrical components, fluid power 
products and industrial supplies located in Ontario, Canada.  
NOTE 3: INVENTORIES 
Inventories consist of the following:  
June 30,  2012.  2011. 
U.S. inventories at current cost  $ 302,465   $ 280,875  
Foreign inventories at average cost  70,797   60,837  
  373,262   341,712  
Less: Excess of current cost over LIFO cost for U.S. inventories  144,756   137,646  
Inventories on consolidated balance sheets  $ 228,506   $ 204,066  
Overall LIFO expense increased cost of goods sold by $7,100 for fiscal 2012.  This amount is net of $3,400 of LIFO layer liqui dation benefits.