text: Foreign Currency Exchange Rate Risk 
  
  Since we operate throughout North America and approximately 15% 
  
  of our fiscal year 2012 net sales were generated outside the United 
  
  States, foreign currency exchange rates can impact our financial 
  
  position, results of operations and competitive position. The financial 
  
  statements of foreign subsidiaries are translated into their U.S. dollar 
  
  equivalents at end-of-period exchange rates for assets and liabilities, 
  
  while income and expenses are translated at average monthly 
  
  exchange rates. Translation gains and losses are components of 
  
  accumulated other comprehensive income (loss) as reported in the 
  
  statements of consolidated comprehensive income. Transaction 
  
  gains and losses arising from fluctuations in currency exchange 
  
  rates on transactions denominated in currencies other than the 
  
  functional currency are recognized in the statements of 
  
  consolidated income as a component of other expense (income), 
  
  net. Applied does not currently hedge the net investments in 
  
  our foreign operations. 
  
  During the course of the fiscal year, the Canadian and Mexican 
  
  foreign exchange rates to the U.S. dollar decreased by 6% and 
  
  17%, respectively. In the twelve months ended June 30, 2012, 
  
  we experienced foreign currency translation losses totaling 
  
  $14.5 million, which were included in accumulated other 