1 
 
STATEMENTS OF CONSOLIDATED INCOME 
(In thousands, except per share amounts) 
 
Year Ended June 30,  2012.   2011..  2010.. 
Net Sales  $ 2,375,445   $ 2,212,849   $ 1,893,208  
Cost of Sales  1,720,973   1,599,739   1,377,486  
Gross Profit  654,472   613,110   515,722  
Selling, Distribution and Administrative, including depreciation  486,077   462,347   405,672  
Operating Income  168,395   150,763   110,050  
Interest Expense  457   2,081   5,738  
Interest Income  (466 )  (413 )  (280 ) 
Other Expense (Income), net  1,578   (3,793 )  (425 ) 
Income Before Income Taxes  166,826   152,888   105,017  
Income Tax Expense  58,047   56,129   39,114  
Net Income  $ 108,779   $ 96,759   $ 65,903  
Net Income Per Share — Basic  $ 2.58   $ 2.28   $ 1.56  
Net Income Per Share — Diluted  $ 2.54   $ 2.24   $ 1.54  
 
See notes to consolidated financial statements. 
  
 
2 
 
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME 
(In thousands, except per share amounts) 
 
Year Ended June 30,  2012.  2011-   2010- 
Net income per the statements of consolidated income  $ 108,779   $ 96,759   $ 65,903  
       
Other comprehensive income (loss), before tax:       
 Foreign currency translation adjustments  (14,471 )  10,011   2,950  
 Postemployment benefits:       
Actuarial loss on remeasurement  (5,028 )  (930 )  (3,860 ) 
Reclassification of actuarial losses and prior service cost into SD&A expense and 
included in net periodic pension costs  1,123   2,214   1,781  
Impact of reduction in postemployment benefit liability (as forecasted salary increases 
will not be realized) due to the plan curtailment  8,860   —   —   
Reclassification of prior service cost into SD&A expense upon plan curtailment  3,117   —    —   
 Unrealized loss on investment securities available for sale  (220 )  (84 )  (46 ) 
 Unrealized loss on cash flow hedges  —   (266 )  (1,103 ) 
 Reclassification of interest from cash flow hedge into interest expense  —   316   1,408  
Total of other comprehensi ve income (loss), before tax  (6,619 )  11,261   1,130  
Income tax expense (benefit) related to items of other comprehensive income  3,009   154   (671 ) 
Other comprehensive income (loss), net of tax  (9,628 )  11,107   1,801  
Comprehensive income, net of tax  $ 99,151   $ 107,866   $ 67,704  
 
See notes to consolidated financial statements. 
  
15Applied Industrial Technologies, Inc. and Subsidiaries
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME
(In thousands, except per share amounts)
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