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.   
 
In fiscal 2011 and 2010, reductions in U.S. inventories, primarily in the bearings pool, resulted in the liquidation of LIFO inventory 
quantities carried at lower costs prevailing in prior years.  As a result, LIFO benefits reduced cost of goods sold by $5,300 and 
$23,500 in fiscal 2011 and 2010, respectively.  The LIFO reserves were re duced by the same amounts.  If inventory levels had 
remained constant with the prior year’s levels, instead of recording these benefits, the Company wou ld have recorded LIFO expense 
of $7,000 and $19,200 in fiscal 2011 and 2010, respectively.  Therefore, the overall impact of LIFO layer liquidations increased gross 
profit by $12,300 and $42,700 in fiscal 2011 and 2010, respectively.   
NOTE 4: GOODWILL AND INTANGIBLES 
The changes in the carrying amount of goodwill for the Service Center Based Distribution segment for the years ended June 30, 
2012 and 2011 are as follows:  
Balance at July 1, 2010 $ 63,405  
Goodwill acquired during the year 11,700  
Other, primarily currency translation 1,876  
Balance at June 30, 2011 76,981  
Goodwill acquired during the year 8,403  
Other, primarily currency translation (2,304 ) 
Balance at June 30, 2012 $ 83,080  
At June 30, 2012, accumulated goodwill impairment losses subsequent to fiscal year 2002, totaled $36,605 and related to the Fluid 
Power Businesses segment. 
Intangibles consist of the following:  
June 30, 2012  Amount.  
Accumulated. 
Amortization.  
Net. 
Book Value. 
Finite-Lived Intangibles:       
Customer relationships  $ 84,249   $ 29,905   $ 54,344  
Trade names  25,677   7,428   18,249  
Vendor relationships  13,605   4,500   9,105  
Non-competition agreements  4,740   2,888   1,852  
Total Finite-Lived Intangibles  128,271   44,721   83,550  
Indefinite-Lived Trade Name  1,290     1,290  
Total Intangibles  $ 129,561   $ 44,721   $ 84,840  
 
June 30, 2011  Amount.  
Accumulated. 
Amortization.  
Net. 
Book Value. 
Finite-Lived Intangibles:       
Customer relationships  $ 78,084   $ 23,111   $ 54,973  
Trade names  25,944   5,666   20,278  
Vendor relationships  14,211   3,696   10,515  
Non-competition agreements  5,127   2,632   2,495  
Total Finite-Lived Intangibles  123,366   35,105   88,261  
Indefinite-Lived Trade Name  1,290     1,290  
Total Intangibles  $ 124,656   $ 35,105   $ 89,551  
Amounts include the impact of foreign currency translation.  Fully amortized amounts are written off.  
23Applied Industrial Technologies, Inc. and Subsidiaries
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