of exercise and the option price .  Vesting of stock awards and other stock compensation in fiscal 2012, 2011 and 2010 resulted in 
$970, $401 and $1,026, respectively, of incremental income tax benef its over the amou nts previously reported for financial 
reporting purposes.  These tax benefits were recorded in additional paid-in capital. 
Effective Tax Rates 
The following reconciles the federal statutory income tax rate and the Company’s effective income tax rate: 
 
Year Ended June 30,  2012  2011  2010 
Statutory income tax rate  35.0 %  35.0 %  35.0 % 
Effects of:       
State and local taxes  2.5 %  2.8 %  2.2 % 
U.S. tax on foreign income, net  —    1.8 %  —   
Valuation allowance  —    (0.6 )%  0.8 % 
Foreign income taxes  (1.8 )%  (1.0 )%  0.5 % 
Deductible dividend  (0.5 )%  (0.5 )%  (0.7 )% 
Other, net  (0.4 )%  (0.8 )%  (0.6 )% 
Effective income tax rate  34.8 %  36.7 %  37.2 % 
  
24 Applied Industrial Technologies, Inc. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(In thousands, except per share amounts)
25358_AIT_Report_WT.indd   24 8/23/12   8:33 AM