7 
 
entire customer pool and changes in the overall aging of 
accounts receivable.  While we have a large customer base that is 
geographically dispersed, a general economic downturn in any of 
the industry segments in which we operate could result in higher 
than expected defaults, and therefore, the need to revise 
estimates for bad debts.  Accounts are written off against the 
allowance when it becomes evident co llection will not occur. 
As of June 30, 2012  and 2011, our allowance for doubtful 
accounts was 2.6% and 2.4% of gross receivables, respectively.  
Our provision for losses on accounts receivable was $3.9 million, 
$2.0 million and $2.5 million in fiscal 2012, 2011 and 2010, 
respectively. 
Goodwill and Intangibles 
Goodwill is recognized as the amount by which the cost of an 
acquired entity exceeds the net amount assigned to assets acquired 
and liabilities assumed.  As part of acquisition accounting, we also 
recognize acquired intangible assets such as customer 
relation ships, vendor relationships, trade names, and non-
competition agreements apart from goodwill.  Finite-lived 
intangibles are evaluated for impairment when changes in 
conditions indicate carrying value may not be recoverable.  We 
evaluate goodwill and indefinite-lived intangibles for impairment at 
least annually.  This evaluation requires significant judgment by 
management, including estimated future operating results, 
estimated future cash flows, the long-term rate of growth of our 
business, and determination of an appropriate discoun t rate.  
While we use available information to prepare the estimates and 
evaluations, actual results could differ significantly.  For example, a 
worsening of economic conditions beyond those assumed in an 
impairment analysis could impact the estimates of future growth 
and result in an impairment charge in a future period.  Any 
resulting impairment charge could be viewed as having a material 
adverse impact on our financial condition and results of operations. 
All of the goodwill remaining  on our consolidated financial 
statements is related to the Service Center Based Distribution 
segment.  We believe the fair value of this segment is well in 
excess of its carrying value. 
Self-Insurance Liab ilities 
We maintain business insurance programs with significant self-
insured retention covering workers’ compensation, business, 
automobile, general product liability and other claims.  We accrue 
estimated losses using actuarial calculations, models and 
assumptions based on historical loss  experience.  We maintain a 
self-insured health benefits plan, which provides medical benefits 
to U.S. based employees electing coverage.  We maintain a reserve 
for all unpaid medical claims including those incurred but not 
reported based on historical experience and other assumptions.  
Although management believes that the estimated liabilities for 
self-insurance are adequate, the estimates described above may 
not be indicative of current and future losses.  In addition, the 
actuarial calculations used to estimate self-insurance  liabilities are 
based on numerous assumptions, some of which are subjective.  
We will continue to adjust our estimated liabilities for self-
insurance, as deemed necessary, in the event that future loss 
experience differs from historical loss patterns. 
Pension and Other Postemployment  
Benefit Plans 
The measurement of liabilities related to pension plans and  
other postemployment benefit plans is based on management’s 
assumptions related to future events  including interest rates, 
return on pension plan assets, and healthcare cost trend rates.  
We evaluate these assumptions and adjust them as necessary.  
Changes to these assumptions could result in a material change 
to the Company’s pension obligation causing a related increase 
or decrease in reported net operating results in the period of 
change in the estimate.  At June 30, 2012, a 1% point change