The weighted-average remaining contractual terms for SARs and stock options outstanding and exercisable at J une 30, 2012 
were 6.0 and 4.8 years, respectively.  The aggregate intrinsic values of SARs and stock opti ons outstanding and exercisable at 
June 30, 2012 were $15,023 and $10,775, respectively.  The aggregate intrinsic value of the SARs and stock options exercised 
during fiscal 2012, 2011 and 2010 was $13,747, $18,526 and $5,157, respectively. 
As of June 30, 2012, unrecogn ized compensation cost related to SARs a nd stock options amounted to $1,951.  That cost is 
expected to be recognized over a weighted-average period of 2.4 years.  The total fair value of shares vested du ring fiscal 2012, 
2011 and 2010 was $4,266, $2,645 and $2,673, respectively. 
Performance Shares 
Performance shares are inte nded to provide incentives to achieve three- year goals.  Performance shares pay out in shares of 
Applied stock at the end of a three-yea r period provided the Company achieves the established goals.  The number of Applied 
shares payable will vary depending on the level of the goal achieved. 
A summary of nonvested performance shares activity at June 30, 2012 is presented below:  
Year Ended June 30, 2012  
Shares 
Weighted-Average. 
Grant-Date. 
Fair Value. (Share amounts in thousands)  
Nonvested, beginning of year  222   $ 23.23  
Granted  31   28.34  
Forfeitures  (47 )  27.15  
Vested  (144 )  20.67  
Nonvested, end of year  62   $ 28.80  
The Committee set three one-year goals for the 2012 and 2011 grants tied to the Company’s earnings before interest, tax, 
depreciation, and amortization (EBITDA) and after-tax return on assets (ROA).  Each fiscal year during the three-year term has its 
own separate goals.  Achievement during any particular fiscal year is “banked” for payout at the end of the three- year term. 
As of June 30, 2012, the potential shares to be banked in future periods was 62.  Unrecognized compensation  cost relating to 
these shares has the potential to reach $1,812 and would be recognized in expense over the weighted-average remaining 
vesting period of 1.7 years. 
Restricted Stock and Restricted Stock Units 
Restricted stock award recipients are entitled to receive divide nds on, and have voting rights with respect to their respective 
shares, but are restricted from selling or transferring the shares prior to vesting.  Restricted stock awards vest over pe riods of 
one to four years.  RSUs are grants valued in shares of A pplied stock, but shares are not issued until the grants vest three years 
from the award date, assuming continued employment with Applied.  RSUs vest on a pro rata basis upon retirement during the 
three-year term.  Applied pays dividend equivalents on RSUs on a current basis. 
A summary of the status of the Company’s nonvested restricted stock and RSUs at June 30, 2012 is presented be low:  
Year Ended June 30, 2012  
Shares 
Weighted-Average. 
Grant-Date. 
Fair Value. (Share amounts in thousands)  
Nonvested, beginning of year  162   $ 25.97  
Granted  135   31.58  
Forfeitures  (31 )  27.30  
Vested  (15 )  31.42  
Nonvested, end of year  251   $ 28.50  
Unrecognized compensation cost related to unvested restricted stock awards and RSUs aggregated $3,670 at June 30, 2012, 
and is expected to be recognized over the weighted-average remaini ng vesting period of 2.1 years.  
 
Performance Grants 
In fiscal 2009 and 2008, the Executive Organization and Compensation Commi ttee made annual awards of three- year performance 
grants to key officers.  A target payout was established at the beginning of each three-year performance period.  The actual payout 
at the end of the period is calculated based upon the Company’s achievement of sales growth, return on sales, and total share holder 
return targets.  All performance periods had expired by Jun e 30, 2011.  During fiscal 2011 and 2010, the Company recorded $1,020