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☒			ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Ohio									34-0117420
(State or other jurisdiction of incorporation or organization)									(I.R.S. Employer Identification No.)
1 Applied Plaza			Cleveland			Ohio			44115
(Address of Principal Executive Offices)									(Zip Code)

Title of each class			Trading Symbol			Name of each exchange on which registered
Common Stock, without par value			AIT			New York Stock Exchange

Yes x No o

Yes o No x

Large accelerated filer			x			Accelerated filer			☐
Non-accelerated filer			o			Smaller reporting company			☐
						Emerging growth company			☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☑

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).     Yes ☐   No  x

						Page
CAUTIONARY STATEMENT UNDER PRIVATE SECURITIES LITIGATION REFORM ACT						1
PART I
Item 1.			Business			2
Item 1A.			Risk Factors			7
Item 1B.			Unresolved Staff Comments			13
Item 2.			Properties			13
Item 3.			Legal Proceedings			14
Item 4.			Mine Safety Disclosures			14
EXECUTIVE OFFICERS OF THE REGISTRANT						14
PART II
Item 5.			Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities			15
Item 6.			Selected Financial Data			16
Item 7.			Management's Discussion and Analysis of Financial Condition and Results of Operations			17
Item 7A.			Quantitative and Qualitative Disclosures about Market Risk			28
Item 8.			Financial Statements and Supplementary Data			29
Item 9.			Changes in and Disagreements with Accountants on Accounting and Financial Disclosure			61
Item 9A.			Controls and Procedures			61
Item 9B.			Other Information			63
PART III
Item 10.			Directors, Executive Officers and Corporate Governance			63
Item 11.			Executive Compensation			63
Item 12.			Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters			64
Item 13.			Certain Relationships and Related Transactions, and Director Independence			64
Item 14.			Principal Accountant Fees and Services			64
PART IV
Item 15.			Exhibits and Financial Statement Schedules			65
Item 16.			Form 10-K Summary			68
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS						69
SIGNATURES						70

•Applied's annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports, together with Section 16 insider beneficial stock ownership reports - these documents are posted as soon as reasonably practicable after they are electronically filed with, or furnished to, the Securities and Exchange Commission

1) Technical expertise in motion control technologies and related service offerings

•Capture market share across our core service center network. Our network of service centers located close to industrial companies allows us to respond quickly and effectively to critical MRO situations involving direct production infrastructure and industrial equipment. We believe more sophisticated industrial production processes and customer labor constraints, as well as increased industrial capacity and manufacturing activity across North America could drive greater demand for our products and services. We continue to deploy initiatives to further enhance our capabilities across our service center network and gain market share. These include investments in analytics, strategic account penetration, sales process optimization, talent development, and digital channel solutions, as well as fully leveraging and cross-selling our expanded product and service platform across fluid power, flow control, automation, and consumables solutions.

•Extend our leading fluid power and flow control position as demand for comprehensive solutions grows. We provide innovative fluid power and flow control solutions including systems design and engineering, electronic control integration, software programming, valve actuation, compliance consulting, fabrication and assembly, and dedicated service and repair. Demand for these solutions is increasing across a variety of industrial, off-highway mobile, technology, and process related applications given a greater focus on power consumption, plant efficiency and automation, emissions control, electrification, remote monitoring, advancements in machining, regulatory and compliance standards, and data analytics. We believe our service and engineering capabilities, shop network, and supplier relationships, combined with our software coding and smart technology application knowledge, are key competitive advantages. We see opportunities to leverage these advantages across new and underserved geographies, as well as through new commercial solutions that could drive a greater share gain of this market opportunity in coming years.

•Leverage technical industry position in developing growth around emerging industrial technologies. We are expanding our position and capabilities focused on advanced factory automation and smart technologies that optimize and connect customers’ industrial supply chains. We believe we have a favorable position to capture this addressable market given our technical product focus, service capabilities, embedded customer relationships and knowledge across direct production infrastructure and equipment, and existing supplier relationships. Following several business acquisitions made since fiscal 2020, we now offer products and solutions focused on the design, assembly, integration, and distribution of machine vision, robotic technologies, and motion control. Our emerging growth across these areas is diversifying our end-market exposure with greater penetration into technology, life sciences, logistics, and food and beverage industries. We expect to continue to expand our automation footprint and capabilities in coming years, as well as pursue opportunities tied to the Industrial Internet of Things (IIoT). We believe this market potential could be meaningful as technology continues to converge within traditional industrial supply chains and end-markets.

•Execute ongoing operational initiatives supporting margin profile. We have a number of initiatives focused on driving operational improvements throughout the organization. Systems investments in recent years including common ERP platforms are supporting opportunities in leveraging shared services, refining our sales management process, and standardizing pricing and sourcing functions, while we continue to optimize our shop and distribution network and analytics. We also remain focused on achieving margin synergies across our operations following expansion into flow control and automation. This includes enhanced pricing functions, leveraging vendor procurement, freight savings, and refined cost management. Combined with

•Pursue value-creating acquisitions to supplement growth and strengthen industry position. We expect to pursue additional acquisitions aligned with our growth strategy and long-term financial targets. We view acquisitions as an important growth consideration given high fragmentation, greater operational and technical requirements, and supplier authorizations within the markets we serve. We believe our sourcing strategy, cash generation capabilities, industry relationships, and operational discipline are key to our acquisition success. In addition, dedicated corporate teams and related support functions provide strategic oversight of critical work streams and integration execution, which we believe enhances our ability to capture synergistic value. Over the near to intermediate-term, our acquisition priorities are focused on continuing to expand our current offerings, while further enhancing our technical differentiation and value-added service capabilities.

Service center locations are stocked with product inventory tailored to each local market and staffed with customer sales and service representatives, account managers, as well as product and industry specialists. Customer sales and service representatives receive, process, and expedite customer orders, provide product information, and assist account managers in serving customers. Account managers make onsite calls to customers to provide product information, identify customer requirements, make recommendations, and assist in implementing equipment maintenance and storeroom management programs. Industry specialists assist with product applications in their areas of expertise. Service centers market product offerings with a suite of services that create additional value for the customer. This includes onsite training, product fabrication and repair, and inventory management solutions. We also provide analysis and measurement of productivity improvement and cost savings potential from these services through our Applied Documented Value-Added® (DVA®) reports.

Country

Associates

Segment

Associates

United States

4,598

Service Center Based Distribution

3,932

Canada

628

Fluid Power & Flow Control

1,704

Other Countries

721

Other

311

Associate Development. We strive to attract, retain, and develop a diverse group of high-performing associates, empowering them to achieve their potential and providing them opportunities to test their skills, increase their responsibilities, and advance their careers. Applied’s commitment to associate development is reflected in our investments in a learning management system (offering a wide array of internal facilitated training courses, supplier product training, and other third-party courses), a modern social learning platform, and in-person training through which associates can continually expand their knowledge base and position themselves to achieve their professional goals.

Health and Safety. Applied is also committed to the safety and well-being of our associates. In the U.S., all associates are required to complete specific assigned online training courses annually, which include offerings on workplace safety hazards and vehicle safety. In addition, role-specific training is assigned based on the types of hazards associates may face while carrying out their job function, such as training modules on operating in confined spaces, forklift operation, and lockout/tagout procedures. In our most recent fiscal year, our U.S. associates completed nearly 14,000 such safety training courses.

Our business depends heavily on the operating levels of our customers and the factors that affect them, including general economic conditions. The markets for our products and services are subject to conditions or events that affect demand for goods and materials that our customers produce. Consequently, demand for our products and services has been and will continue to be influenced by most of the same factors that affect demand for and production of customers' goods and materials.

The extent to which the COVID-19 pandemic and measures taken in response thereto continue to impact our results of operations and financial condition will depend on future developments, which are uncertain and cannot be predicted. The COVID-19 pandemic created significant volatility, uncertainty, and economic disruption. The effects of the pandemic resulted in lost or delayed sales to us, and we experienced business disruptions as we modified our business practices (including travel, work locations, and cancellation of physical participation in meetings). While the pandemic’s impact on social and economic conditions has subsided, the extent to which it will continue to impact our results of operations and financial condition will depend on evolving factors that are uncertain and cannot be predicted, including the following: the duration, spread, and severity of the pandemic, including due to virus variants, in the countries in which we operate; responsive measures taken by governmental authorities, businesses, and individuals; the effect on our customers and their demand for our products and services; the effect on our suppliers and disruptions to the global supply chain; our ability to sell and provide our products and services and otherwise operate effectively, including as a result of travel restrictions and associates working from home; disruptions to our operations resulting from associate illness; restrictions or disruptions to, or reduced availability of, transportation; customers’ ability to pay for our services and products; closures of our facilities or those of our customers or suppliers; the impact of reduced customer demand on purchasing incentives we earn from suppliers; and how quickly and to what extent normal economic and operating conditions can resume. In addition, the pandemic’s impact on the economy could affect the proper functioning of financial and capital markets, foreign currency exchange rates, product and energy costs, and interest rates. The pandemic’s effects may also amplify the other risks and uncertainties described in this Annual Report on Form 10-K, and may continue to materially and adversely affect our business, financial condition, results of operations, and/or stock price.

Consolidation in our customers' and suppliers' industries could adversely affect our business and financial results. Consolidation continues among our product suppliers and customers. As customer industries consolidate or customers otherwise aggregate their purchasing power, a greater proportion of our sales could be derived from large volume contracts, which could adversely impact margins. Consolidation among customers can produce changes in their purchasing strategies, potentially shifting blocks of business among competing distributors and contributing to volatility in our sales and pressure on prices. Similarly, continued consolidation among suppliers could reduce our ability to negotiate favorable pricing and other commercial terms for our inventory purchases. There can be no assurance we will be able to take advantage of consolidation trends.

An increase in competition could decrease sales or earnings. We operate in a highly competitive industry. The industry remains fragmented, but is consolidating. Our principal competitors are specialist and general line distributors of bearings, power transmission products, fluid power components and systems, flow control solutions, automation technologies, industrial rubber products, linear motion components, tools, safety products, oilfield supplies, and other industrial and maintenance supplies. These competitors include local, regional, national, and multinational operations, and can include catalog and e-commerce companies. Competition is largely focused in the local service area and is generally based on product line breadth, product availability, service capabilities, and price. Existing competitors have, and future competitors may have, greater financial or other resources than we do, broader or more appealing product or service offerings, greater market presence, stronger relationships with key suppliers or customers, or better name recognition. If existing or future competitors seek to gain or to retain market share by aggressive pricing strategies and sales methods, or otherwise through competitive advantage, our sales and profitability could be adversely affected. Our success will also be affected by our ability to continue to provide competitive offerings as customer preferences or demands evolve, for example with respect to product and service types, brands, quality, or prices. Technological evolution or other factors can render product and service offerings obsolete, potentially impairing our competitive position and our inventory values.

Our operations outside the United States increase our exposure to global economic and political conditions and currency exchange volatility. Foreign operations contributed 14% of our sales in 2021. This presence outside the U.S. increases risks associated with exposure to more volatile economic conditions, political instability, cultural and legal differences in conducting business (including corrupt practices), economic and trade policy actions, and currency exchange fluctuations.

Our business could be adversely affected if we do not successfully execute our strategies to grow sales and earnings. We have numerous strategies and initiatives to grow sales, leveraging the breadth of our product offering, supplier relationships, and value-added technical capabilities to differentiate us and improve our

Loss of key supplier authorizations, lack of product availability, or changes in distribution programs could adversely affect our sales and earnings. Our business depends on maintaining an immediately available supply of various products to meet customer demand. Many of our relationships with key product suppliers are longstanding, but are terminable by either party. The loss of key supplier authorizations, or a substantial decrease in the availability of their products, could put us at a competitive disadvantage and have a material adverse effect on our business. Supply interruptions could arise from raw materials shortages, inadequate manufacturing capacity or utilization to meet demand, financial problems or insolvency, trade issues, labor disputes, public health emergencies, weather conditions affecting suppliers' production, transportation disruptions, or other reasons beyond our control.

The purchasing incentives we earn from product suppliers can be impacted if we reduce our purchases in response to declining customer demand. Certain product suppliers have historically offered to their distributors, including us, incentives for purchasing their products. In addition to market or customer account-specific incentives, certain suppliers pay incentives to the distributor for attaining specific purchase volumes during a program period. In some cases, to earn incentives, we must achieve year-over-year growth in purchases with the supplier. When demand for our products declines, we may be less inclined to add inventory to take advantage of certain incentive programs, thereby potentially adversely impacting our profitability.

Volatility in product, energy, and other costs can affect our profitability. Product manufacturers may adjust the prices of products we distribute for many reasons, including changes in their costs for raw materials, components, energy, labor, and tariffs and taxes on imports. In addition, a portion of our own distribution costs is composed of fuel for our sales and delivery vehicles, freight, and utility expenses for our facilities. Our ability to pass along increases in our product and distribution costs in a timely manner to our customers depends on execution, market conditions, and contractual limitations. Failing to pass along price increases timely in an inflationary environment, or not maintaining sales volume while increasing prices, could significantly reduce our profitability.

Changes in customer or product mix and downward pressure on sales prices could cause our gross profit percentage to fluctuate or decline. Because we serve thousands of customers in many end markets, and offer millions of products, with varying profitability levels, changes in our customer or product mix could cause our gross profit percentage to fluctuate or decline. Downward pressure on sales prices could also cause our gross profit percentage to fluctuate or decline. We can experience downward pressure on sales prices as a result of deflation, pressure from customers to reduce costs, or increased competition.

Our ability to transact business is highly reliant on information systems. A disruption or security breach could materially affect our business, financial condition, or results of operation. We depend on information systems to, among other things, process customer orders, manage inventory and accounts receivable collections, purchase products, manage accounts payable processes, ship products to customers on a timely basis, maintain cost-effective operations, provide superior service to customers, conduct business communications, and compile financial results. A serious, prolonged disruption of our information systems, due to man-made or natural causes, including power or telecommunications outage, or breach in security, could materially impair fundamental business processes and increase expenses, decrease sales, or otherwise reduce earnings.

Acquisitions are a key component of our anticipated growth. We may not be able to identify or to complete future acquisitions, to integrate them effectively into our operations, or to realize their anticipated benefits. Many industries we serve are mature. As a result, acquisitions of businesses have been important to our growth. While we wish to continue to acquire businesses, we may not be able to identify and to negotiate suitable acquisitions, to obtain financing for them on satisfactory terms, or otherwise to complete acquisitions. In addition, existing and future competitors, and private equity firms, increasingly compete with us for acquisitions, which can increase prices and reduce the number of suitable opportunities; the acquisitions they make can also adversely impact our market position.

An interruption of operations at our headquarters or distribution centers, or in our means of transporting product, could adversely impact our business. Our business depends on maintaining operating activity at our headquarters and distribution centers, and being able to receive and deliver product in a timely manner. A serious, prolonged interruption due to power or telecommunications outage, security incident, terrorist attack, public health emergency, earthquake, extreme weather events, other natural disasters, fire, flood, transportation disruption, or other interruption could have a material adverse effect on our business and financial results.

Our indebtedness entails debt service commitments that could adversely affect our ability to fulfill our obligations and could limit or reduce our flexibility. As of June 30, 2021, we had total debt obligations outstanding of $829.4 million. Our ability to service our debt and fund our other liquidity needs will depend on our ability to generate cash in the future. Our debt commitments may (i) require us to dedicate a substantial portion of our cash flows from operations to the payment of debt service, reducing the availability of our cash flow to fund planned capital expenditures, pay dividends, repurchase our shares, complete other acquisitions or strategic initiatives, and other general corporate purposes; (ii) limit our ability to obtain additional financing in the future (either at all or on satisfactory terms) to enable us to react to changes in our business or execute our growth strategies; and (iii) place us at a competitive disadvantage compared to businesses in our industry that have lower levels of indebtedness. Additionally, any failure to comply with covenants in the instruments governing our debt could result in an event of default. Any of the foregoing events or circumstances relating to our indebtedness may adversely affect our business, financial position, or results of operations and may cause our stock price to decline.

Our ability to maintain effective internal control over financial reporting may be insufficient to allow us to accurately report our financial results or prevent fraud, and this could cause our financial statements to become materially misleading and adversely affect the trading price of our common stock. We require effective internal control over financial reporting in order to provide reasonable assurance with respect to our financial reports and to effectively prevent fraud. Internal control over financial reporting may not prevent or detect misstatements because of its inherent limitations, including the possibility of human error, the circumvention or overriding of controls, or fraud. Therefore, even effective internal controls can provide only reasonable assurance with respect to the preparation and fair presentation of financial statements. If we cannot provide reasonable assurance with respect to our financial statements and effectively prevent fraud, our financial statements could be materially misstated, which could adversely affect the trading price of our common stock.

Goodwill, long-lived, and other intangible assets recorded as a result of our acquisitions could become impaired. We review goodwill, long-lived assets, including property, plant and equipment and identifiable amortizing intangible assets, for impairment whenever changes in circumstances or events may indicate that the carrying amounts are not recoverable. Factors which may cause an impairment of long-lived assets include significant changes in the manner of use of these assets, negative industry or market trends, significant underperformance relative to historical or projected future operating results, or a likely sale or disposal of the asset before the end of its estimated useful life. In 2021, we recorded a $49.5 million non-cash charge for the impairment of certain intangible, lease, and fixed assets.

We may be adversely affected by changes in LIBOR reporting practices or the method by which LIBOR is determined. As of June 30, 2021, we had approximately $738.6 million of aggregate consolidated indebtedness that was indexed to the London Interbank Offered Rate (“LIBOR”). As of June 30, 2021, approximately $420.0 million of this variable rate debt was converted to a fixed rate through an interest rate swap. The swap agreement, entered into in January 2019 and subsequently amended and extended, is indexed to LIBOR. The U.K. Financial Conduct Authority (FCA), which regulates LIBOR, announced in 2017 that it will no longer persuade or require banks to submit rates for LIBOR after 2021. However, in March 2021, the FCA proposed to extend publication of the most commonly used U.S. dollar LIBOR tenors, including those tenors most relevant to us, through June 30, 2023. Any of our LIBOR-based borrowings that extend beyond June 30, 2023 will need to be converted to a replacement rate prior to that date. Regulators and industry groups have identified recommended alternatives for certain reference rates, but there continues to be considerable uncertainty about what benchmark or benchmarks will replace LIBOR and when that will occur. The full impact of the transition away from LIBOR remains unclear, but the transition and related changes may have a material adverse impact on the availability of financing and on our financing costs.

Our business depends on our ability to attract, develop, motivate, and retain qualified employees. Our success depends on hiring, developing, motivating, and retaining key employees, including executive, managerial, sales, professional, and other personnel. We may have difficulty identifying and hiring qualified personnel. In addition, we may have difficulty retaining such personnel once hired, and key people may leave and compete against us. With respect to sales and customer service positions in particular, we greatly benefit from having employees who are familiar with the products and services we sell, and their applications, as well as with our customer and supplier

We are subject to legal, regulatory, and litigation risks, which may have a material adverse effect on our business. We are subject to a wide array of laws and regulations. Changes in the legal and regulatory environment in which we operate, including with respect to taxes, international trade, employment laws, and data privacy, could adversely and materially affect the Company.

ITEM 1B. UNRESOLVED STAFF COMMENTS.

ITEM 2. PROPERTIES.

Location of Principal Owned Real Property			Type of Facility
Cleveland, Ohio			Corporate headquarters
Atlanta, Georgia			Distribution center, service center, hose shop
Florence, Kentucky			Distribution center
Baldwinsville, New York			Offices, warehouse, and fluid power shop
Carlisle, Pennsylvania			Distribution center
Fort Worth, Texas			Distribution center and rubber shop

Location of Principal Leased Real Property			Type of Facility
Fontana, California			Distribution center, rubber shop, fluid power shop, and service center
Newark, California			Fluid power shop
Midland, Michigan			Flow control shop
Strongsville, Ohio			Offices and warehouse
Portland, Oregon			Distribution center
Stafford, Texas			Offices, warehouse, and flow control shop
Longview, Washington			Service center, rubber shop, and fluid power shop
Nisku, Alberta			Offices, service center, and shops

ITEM 3. LEGAL PROCEEDINGS.

ITEM 4. MINE SAFETY DISCLOSURES.

:

Name			Positions and Experience			Age
Neil A. Schrimsher			President since 2013 and Chief Executive Officer since 2011.			57
Fred D. Bauer			Vice President-General Counsel since 2002 and Secretary since 2001.			55
Warren E. Hoffner			Vice President, General Manager-Fluid Power & Flow Control since October 2018. He served as Vice President, General Manager-Fluid Power from 2003 to October 2018. The Board of Directors designated Mr. Hoffner an executive officer in 2015.			61
Kurt W. Loring			Vice President-Chief Human Resources Officer since 2014.			52
David K. Wells			Vice President-Chief Financial Officer & Treasurer since September 2017. He served as Vice President-Finance from May 2017 through August 2017. Prior to joining Applied, from 2015 to May 2017, Mr. Wells was Vice President & Chief Financial Officer of ESAB, a manufacturer of welding and material cutting products and a division of Colfax Corporation (NYSE: CFX). Prior to then he was Vice President & Chief Financial Officer of Apex Tool Group, a manufacturer of hand and power tools.			58

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

Period			(a) Total Number of Shares						(b) Average Price Paid per Share ($)						(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs						(d) Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (1)
April 1, 2021 to April 30, 2021			—						—						—						864,618
May 1, 2021 to May 31, 2021			379,678						100.37						379,678						484,940
June 1, 2021 to June 30, 2021			20,322						97.37						20,322						464,618
Total			400,000						100.22						400,000						464,618

(1)On October 24, 2016, the Board of Directors authorized the repurchase of up to 1.5 million shares of the Company's common stock, replacing the prior authorization. We publicly announced the new authorization on October 26, 2016. Purchases can be made in the open market or in privately negotiated transactions. The authorization is in effect until all shares are purchased, or the Board revokes or amends the authorization.

ITEM 6. SELECTED FINANCIAL DATA.

(In thousands, except per share amounts and statistical data)						2021						2020						2019						2018 (d)						2017
Consolidated Operations — Year Ended June 30
Net sales						$	3,235,919					$	3,245,652					$	3,472,739					$	3,073,274					$	2,593,746
Depreciation and amortization of property						20,780						21,196						20,236						17,798						15,306
Amortization:
Intangible assets						34,365						41,553						41,883						32,065						24,371
SARs and stock options						2,526						2,954						2,437						1,961						1,891
Operating income (a) (b) (c)						205,454						88,989						233,788						225,827						175,386
Net income (a) (b) (c) (e)						144,757						24,042						143,993						141,625						133,910
Per share data:
Net income:
Basic						3.73						0.62						3.72						3.65						3.43
Diluted (a) (b) (c)						3.68						0.62						3.68						3.61						3.40
Cash dividend						1.30						1.26						1.22						1.18						1.14
Year-End Position — June 30
Working capital						$	768,875					$	733,686					$	724,344					$	625,469					$	572,789
Long-term debt (including portion classified as current)						829,396						935,276						959,829						966,063						291,982
Total assets						2,271,807						2,283,551						2,331,697						2,285,741						1,387,595
Shareholders’ equity						932,546						843,542						897,034						814,963						745,256
Year-End Statistics — June 30
Current ratio						2.8						2.7						2.7						2.4						2.8
Operating facilities						568						580						600						610						552
Shareholders of record						3,535						3,772						4,165						4,323						4,687
Return on assets (a) (b) (c) (e) (f)						6.4		%				1.0		%				6.3		%				8.0		%				10.2		%
Return on equity (a) (b) (c) (e) (g)						16.3		%				2.8		%				16.8		%				18.2		%				19.1		%
Capital expenditures						$	15,852					$	20,115					$	18,970					$	23,230					$	17,045
Cash Returned to Shareholders During the Year
Dividends paid						$	50,664					$	48,873					$	47,266					$	45,858					$	44,619
Purchases of treasury shares						40,089						—						11,158						22,778						8,242
Total						$	90,753					$	48,873					$	58,424					$	68,636					$	52,861

(a)In fiscal 2021, the Company recognized a non-cash impairment charge of $49.5 million as a result of reduced economic conditions and business alignment initiatives related to a portion of the Service Center Based Distribution segment exposed to oil and gas end markets. Excluding the impairment charge, the fiscal 2021 return on assets would be 8.0% and return on equity would be 20.6%.

(b)A goodwill impairment charge in fiscal 2020 reduced operating income by $131.0 million, net income by $118.8 million, and diluted earnings per share by $3.04. Excluding the goodwill impairment charge, the fiscal 2020 return on assets would be 6.5% and return on equity would be 16.4%.

(c)A long-lived intangible asset impairment charge in fiscal 2019 reduced operating income by $31.6 million, net income by $26.9 million, and diluted earnings per share by $0.69, which includes the impact of a $3.8 million valuation allowance on certain Canadian deferred tax assets. Excluding the long-lived intangible asset impairment charge, the fiscal 2019 return on assets would be 7.5% and return on equity would be 20.0%.

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.

Our fiscal 2021 consolidated sales were $3.2 billion, a decrease of $9.7 million or 0.3% compared to the prior year, with the acquisitions of Olympus Controls (Olympus), Advanced Control Solutions (ACS) and Gibson Engineering (Gibson) increasing sales by $44.1 million or 1.4% and favorable foreign currency of $16.5 million increasing sales by 0.5%. Gross profit margin was 28.9% for both fiscal 2021 and 2020. Operating margin increased to 6.3% in fiscal 2021 from 2.7% in fiscal 2020.

Shareholders’ equity was $932.5 million at June 30, 2021 compared to $843.5 million at June 30, 2020. Working capital increased $35.2 million from June 30, 2020 to $768.9 million at June 30, 2021. The current ratio was 2.8 to 1 and 2.7 to 1 at June 30, 2021 and at June 30, 2020, respectively.

			Index Reading
Month			MCU			PMI			IP
June 2021			75.4			60.6			97.9
May 2021			75.1			61.2			97.9
April 2021			74.6			60.7			97.1
March 2021			74.6			64.7			97.5
December 2020			74.1			60.5			96.8
September 2020			72.1			55.7			94.2
June 2020			68.7			52.2			89.1

			Year Ended June 30, As a % of Net Sales												Change in $'s Versus Prior Period
			2021						2020						% Change
Net Sales			100.0		%				100.0		%				(0.3)		%
Gross Profit Margin			28.9		%				28.9		%				(0.2)		%
Selling, Distribution & Administrative Expense			21.0		%				22.1		%				(5.2)		%
Operating Income			6.3		%				2.7		%				130.9		%
Net Income			4.5		%				0.7		%				502.1		%

The following table shows changes in sales by reportable segment.

Amounts in millions												Amount of change due to
			Year ended June 30,						Sales (Decrease) Increase			Acquisitions			Foreign Currency			Organic Change
Sales by Reportable Segment			2021			2020
Service Center Based Distribution			$	2,199.5		$	2,241.9		$	(42.4)		$	—		$	16.5		$	(58.9)
Fluid Power & Flow Control			1,036.4			1,003.7			32.7			44.1			—			(11.4)
Total			$	3,235.9		$	3,245.7		$	(9.7)		$	44.1		$	16.5		$	(70.3)

The following table shows changes in sales by geographical area. Other countries includes Mexico, Australia, New Zealand, and Singapore.

Amounts in millions												Amount of change due to
			Year ended June 30,						Sales (Decrease) Increase			Acquisitions			Foreign Currency			Organic Change
Sales by Geographic Area			2021			2020
United States			$	2,782.9		$	2,819.4		$	(36.5)		$	44.1		$	—		$	(80.6)
Canada			255.4			248.6			6.8			—			11.6			(4.8)
Other countries			197.7			177.7			20.0			—			4.9			15.1
Total			$	3,235.9		$	3,245.7		$	(9.7)		$	44.1		$	16.5		$	(70.3)

Sales in our U.S. operations decreased $36.5 million or 1.3%, with acquisitions adding $44.1 million or 1.6%. Excluding the impact of businesses acquired, U.S. sales were down $80.6 million or 2.9%, driven by a decrease of 2.5% from operations and by a decrease of 0.4% due to one less sales days. Sales from our Canadian operations increased $6.8 million or 2.7%, while favorable foreign currency translation increased Canadian sales by $11.6 million or 4.7%. Excluding the impact of foreign currency translation, Canadian sales were down $4.8 million or 2.0%, driven by a decrease of 1.6% from operations and by a decrease of 0.4% due to one less sales days. Consolidated sales from our other country operations increased $20.0 million or 11.3% compared to the prior year. Favorable foreign currency translation increased other country sales by $4.9 million or 2.7%. Excluding the impact of foreign currency translation, other country sales were up $15.1 million or 8.6% compared to the prior year, driven by an increase of 9.2% from operations, primarily a $10.9 million increase in Australian sales due to increased demand in the mining industry, offset by a decrease of 0.6% due to less sales days.

The following table shows the changes in selling, distribution, and administrative expense (SD&A).

Amounts in millions												Amount of change due to
			Year ended June 30,						SD&A Decrease			Acquisitions			Foreign Currency			Organic Change
			2021			2020
SD&A			$	680.5		$	717.7		$	(37.2)		$	11.9		$	4.9		$	(54.0)

SD&A consists of associate compensation, benefits and other expenses associated with selling, purchasing, warehousing, supply chain management, and marketing and distribution of the Company’s products, as well as costs associated with a variety of administrative functions such as human resources, information technology, treasury, accounting, insurance, legal, facility related expenses and expenses incurred in acquiring businesses. SD&A decreased $37.2 million or 5.2% during fiscal 2021 compared to the prior year, and as a percentage of sales decreased to 21.0% in fiscal 2021 compared to 22.1% in fiscal 2020. Changes in foreign currency exchange rates had the effect of increasing SD&A by $4.9 million or 0.7% compared to the prior year. SD&A from businesses acquired added $11.9 million or 1.7%, including $1.1 million of intangibles amortization related to acquisitions. Excluding the impact of businesses acquired and the favorable impact from foreign currency translation, SD&A decreased $54.0 million or 7.6% during fiscal 2021 compared to fiscal 2020. The Company incurred $0.4 million of non-routine expenses related to severance and closed facilities during fiscal 2021 compared to $5.1 million non-routine expenses related to severance and facility consolidation during fiscal 2020. Excluding the impact of acquisitions and severance, total compensation decreased $14.1 million during fiscal 2021, primarily due to cost reduction actions taken by the Company in response to the COVID-19 pandemic, including headcount reductions, temporary furloughs and pay reductions, and suspension of the 401(k) company match. All of the temporary cost reductions have been reinstated in the second half of fiscal 2021. Also, excluding the impact of acquisitions, travel & entertainment and fleet expenses decreased $12.2 million during 2021, primarily due to continued reduced travel activity related to COVID-19. In addition, bad debt expense decreased $7.5 million, primarily due to provisions recorded in the prior year for customer credit deterioration and bankruptcies primarily in the Service Center Based Distribution segment, offset by strong cash collections and an improvement in the overall credit profile of the

Other income, net, represents certain non-operating items of income and expense, and was $2.2 million of income in fiscal 2021 compared to $2.8 million of income in fiscal 2020. Current year income primarily consists of unrealized gains on investments held by non-qualified deferred compensation trusts of $4.0 million and other income of $0.3 million, offset by foreign currency transaction losses of $2.1 million. Fiscal 2020 income consisted primarily of unrealized gains on investments held by non-qualified deferred compensation trusts of $0.5 million and foreign currency transaction gains of $2.5 million offset by other expenses of $0.2 million.

The Company’s working capital at June 30, 2021 was $768.9 million compared to $733.7 million at June 30, 2020. The current ratio was 2.8 to 1 at June 30, 2021 and 2.7 to 1 at June 30, 2020.

			Year Ended June 30,
			2021						2020
Net Cash Provided by:
Operating Activities			$	241,697					$	296,714
Investing Activities			(44,930)						(55,404)
Financing Activities			(213,037)						(78,238)
Exchange Rate Effect			5,464						(2,740)
(Decrease) Increase in Cash and Cash Equivalents			$	(10,806)					$	160,332

The decrease in cash provided by operating activities during fiscal 2021 is driven by changes in working capital for the year offset by increased operating results. Changes in cash flows between years related to working capital were driven by:

Accounts receivable			$	(133,556)
Inventory			$	(15,710)
Accounts payable			$	64,775

A summary of long-term debt, including the current portion, follows; all amounts are in thousands:

June 30,			2021						2020
Unsecured credit facility			$	550,250					$	589,250
Trade receivable securitization facility			188,300						175,000
Series C notes			40,000						120,000
Series D Notes			25,000						25,000
Series E Notes			25,000						25,000
Other			846						1,026
Total debt			$	829,396					$	935,276
Less: unamortized debt issuance costs			1,016						1,487
			$	828,380					$	933,789

The Company entered into an interest rate swap which mitigates variability in forecasted interest payments on $420.0 million of the Company’s U.S. dollar-denominated unsecured variable rate debt. For more information, see note 7, Derivatives, to the consolidated financial statements, included in Item 8 under the caption “Financial Statements and Supplementary Data.”

The credit facility and the unsecured shelf facility contain restrictive covenants regarding liquidity, net worth, financial ratios, and other covenants. At June 30, 2021, the most restrictive of these covenants required that the Company have net indebtedness less than 3.75 times consolidated income before interest, taxes, depreciation and amortization (as defined). At June 30, 2021, the Company's net indebtedness was less than 2.5 times consolidated income before interest, taxes, depreciation and amortization (as defined). The Company was in compliance with all financial covenants at June 30, 2021.

June 30,			2021						2020
Accounts receivable, gross			$	532,777					$	463,659
Allowance for doubtful accounts			16,455						13,661
Accounts receivable, net			$	516,322					$	449,998
Allowance for doubtful accounts, % of gross receivables			3.1		%				2.9		%
Year Ended June 30,			2021						2020
Provision for losses on accounts receivable			$	6,540					$	14,055
Provision as a % of net sales			0.20		%				0.43		%

Inventories are valued using the last-in, first-out (LIFO) method for U.S. inventories and the average cost method for foreign inventories. Management uses an inventory turnover ratio to monitor and evaluate inventory. Management calculates this ratio on an annual as well as a quarterly basis and uses inventory valued at average costs. The annualized inventory turnover (using average costs) for the year ended June 30, 2021 was 4.3 versus 3.8 for the year ended June 30, 2020. We believe our inventory turnover ratio in fiscal 2022 will be slightly better than our fiscal 2021 levels.

			Total						Period Less Than 1 yr						Period 2-3 yrs						Period 4-5 yrs						Period Over 5 yrs						Other
Operating leases			$	99,150					$	29,853					$	40,878					$	17,009					$	11,410					—
Planned funding of post-retirement obligations			9,400						900						1,100						500						6,900						—
Unrecognized income tax benefit liabilities, including interest and penalties			6,500						—						—						—						—						6,500
Long-term debt obligations			829,396						44,118						760,173						25,105						—						—
Interest on long-term debt obligations (1)			39,500						17,800						16,900						4,800						—						—
Acquisition holdback payments			3,538						2,569						969						—						—						—
Total Contractual Cash Obligations			$	987,484					$	95,240					$	820,020					$	47,414					$	18,310					$	6,500

LIFO layers and/or liquidations are determined consistently year-to-year. See the Inventories note to the
consolidated financial statements in Item 8 under the caption "Financial Statements and Supplementary Data,"
for further information.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Our market risk is impacted by changes in foreign currency exchange rates as well as changes in interest rates.
We occasionally utilize derivative instruments as part of our overall financial risk management policy, but do not use derivative instruments for speculative or trading purposes.

Our variable interest rate debt facilities outstanding include our five-year credit facility, which provides for a revolving credit facility with a capacity of up to $250.0 million in borrowings with no balance outstanding at June 30, 2021, a $780.0 million term loan, of which $550.3 million was outstanding at June 30, 2021, and a $188.3 million trade receivable securitization facility, all of which was outstanding at June 30, 2021. In January 2019, the Company entered into an interest rate swap on $463.0 million of the Company’s U.S. dollar-denominated unsecured variable rate debt. The notional amount of the interest rate swap was $420.0 million as of June 30, 2021. The interest rate swap effectively converts a portion of the floating rate interest payment into a fixed rate interest payment. The Company designated the interest rate swap as a pay-fixed, receive-floating interest rate swap instrument and is accounting for this derivative as a cash flow hedge. Fixed interest rate debt facilities include $90.0 million outstanding under our unsecured shelf facility agreement, as well as $0.8 million of assumed debt from the purchase of our headquarters facility. We had total average variable interest rate bank borrowings of $739.3 million during fiscal 2021. The impact of a hypothetical 1.0% increase in the interest rates on our average variable interest rate bank borrowings (not considering the impact of our interest rate swap) would have resulted in a $7.4 million increase in interest expense. Due to the interest rate swap, the impact of a hypothetical 1.0% increase in the variable interest rate would have reduced net cash interest paid by $4.2 million. Changes in market interest rates would also impact interest rates on these facilities.

For more information relating to borrowing and interest rates, see the “Liquidity and Capital Resources” section of “Management's Discussion and Analysis of Financial Condition and Results of Operations” in Item 7 and notes 6 and 7 to the consolidated financial statements in Item 8. That information is also incorporated here by reference. In addition, see Item 1A, “Risk Factors,” for additional risk factors relating to our business.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

Year Ended June 30,						2021						2020						2019
Net sales						$	3,235,919					$	3,245,652					$	3,472,739
Cost of sales						2,300,395						2,307,916						2,465,116
Gross profit						935,524						937,736						1,007,623
Selling, distribution and administrative expense, including depreciation						680,542						717,747						742,241
Impairment expense						49,528						131,000						31,594
Operating income						205,454						88,989						233,788
Interest expense						30,807						37,264						40,788
Interest income						(215)						(729)						(600)
Other income, net						(2,200)						(2,782)						(881)
Income before income taxes						177,062						55,236						194,481
Income tax expense						32,305						31,194						50,488
Net income						$	144,757					$	24,042					$	143,993
Net income per share — basic						$	3.73					$	0.62					$	3.72
Net income per share — diluted						$	3.68					$	0.62					$	3.68

Year Ended June 30,						2021						2020						2019
Net income per the statements of consolidated income						$	144,757					$	24,042					$	143,993
Other comprehensive income (loss), before tax:
Foreign currency translation adjustments						24,352						(18,499)						2,021
Post-employment benefits:
Actuarial gain (loss) on re-measurement						903						(2,192)						(372)
Reclassification of actuarial losses (gains) and prior service cost into other income, net and included in net periodic pension costs						270						(66)						(306)
Cumulative effect of adopting accounting standard						—						—						(50)
Unrealized gain (loss) on cash flow hedge						3,250						(16,615)						(14,446)
Reclassification of interest from cash flow hedge into interest expense						11,553						4,638						244
Total other comprehensive income (loss), before tax						40,328						(32,734)						(12,909)
Income tax expense (benefit) related to items of other comprehensive loss						3,990						(3,190)						(3,246)
Other comprehensive income (loss), net of tax						36,338						(29,544)						(9,663)
Comprehensive income (loss)						$	181,095					$	(5,502)					$	134,330

June 30,						2021						2020
Assets
Current assets
Cash and cash equivalents						$	257,745					$	268,551
Accounts receivable, net						516,322						449,998
Inventories						362,547						389,150
Other current assets						59,961						52,070
Total current assets						1,196,575						1,159,769
Property — at cost
Land						14,399						14,339
Buildings						107,142						104,396
Equipment, including computers and software						198,374						195,220
Total property — at cost						319,915						313,955
Less accumulated depreciation						204,326						192,054
Property — net						115,589						121,901
Operating lease assets, net						87,111						90,636
Identifiable intangibles, net						279,628						343,215
Goodwill						560,077						540,594
Other assets						32,827						27,436
Total Assets						$	2,271,807					$	2,283,551
Liabilities
Current liabilities
Accounts payable						$	208,162					$	186,270
Current portion of long-term debt						43,525						78,646
Compensation and related benefits						77,657						61,887
Other current liabilities						98,356						99,280
Total current liabilities						427,700						426,083
Long-term debt						784,855						855,143
Other liabilities						126,706						158,783
Total Liabilities						1,339,261						1,440,009
Shareholders’ Equity
Preferred stock — no par value; 2,500 shares authorized; none issued or outstanding						—						—
Common stock — no par value; 80,000 shares authorized; 54,213 shares issued; 38,516 and 38,710 shares outstanding, respectively						10,000						10,000
Additional paid-in capital						177,014						176,492
Retained earnings						1,294,413						1,200,570
Treasury shares — at cost (15,697 and 15,503 shares, respectively)						(455,789)						(414,090)
Accumulated other comprehensive loss						(93,092)						(129,430)
Total Shareholders’ Equity						932,546						843,542
Total Liabilities and Shareholders’ Equity						$	2,271,807					$	2,283,551

Year Ended June 30,						2021						2020						2019
Cash Flows from Operating Activities
Net income						$	144,757					$	24,042					$	143,993
Adjustments to reconcile net income to net cash provided by operating activities:
Impairment Expense						49,528						131,000						31,594
Depreciation and amortization of property						20,780						21,196						20,236
Amortization of intangibles						34,365						41,553						41,883
Amortization of stock appreciation rights and options						2,526						2,954						2,437
Deferred income taxes						(31,080)						(13,292)						2,368
Provision for losses on accounts receivable						6,540						14,055						4,058
Unrealized foreign exchange transaction losses (gains)						1,814						(1,357)						238
Other share-based compensation expense						6,454						4,000						4,474
Gain on sale of property						(368)						(1,157)						(459)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable						(59,119)						74,437						8,465
Inventories						41,318						57,028						(16,590)
Other operating assets						(5,262)						(5,268)						(7,738)
Accounts payable						10,919						(53,856)						(29,788)
Other operating liabilities						18,525						1,379						(24,570)
Cash provided by Operating Activities						241,697						296,714						180,601
Cash Flows from Investing Activities
Capital expenditures						(15,852)						(20,115)						(18,970)
Proceeds from property sales						1,152						1,948						1,003
Cash paid for acquisition of businesses, net of cash acquired						(30,230)						(37,237)						(37,526)
Other						—						—						391
Cash used in Investing Activities						(44,930)						(55,404)						(55,102)
Cash Flows from Financing Activities
Net repayments under revolving credit facility						—						—						(19,500)
Borrowings under long-term debt facilities						26,000						25,000						175,000
Long-term debt repayments						(131,883)						(49,553)						(161,738)
Interest rate swap settlement payments						(3,737)						—						—
Payment of debt issuance costs						(399)						(95)						(775)
Purchases of treasury shares						(40,089)						—						(11,158)
Dividends paid						(50,664)						(48,873)						(47,266)
Acquisition holdback payments						(2,345)						(2,440)						(2,610)
Exercise of stock appreciation rights and options						163						330						—
Taxes paid for shares withheld						(10,083)						(2,607)						(3,492)
Cash used in Financing Activities						(213,037)						(78,238)						(71,539)
Effect of exchange rate changes on cash						5,464						(2,740)						109
(Decrease) increase in cash and cash equivalents						(10,806)						160,332						54,069
Cash and cash equivalents at beginning of year						268,551						108,219						54,150
Cash and Cash Equivalents at End of Year						$	257,745					$	268,551					$	108,219
Supplemental Cash Flow Information
Cash paid during the year for:
Income taxes						64,394						41,162						54,294
Interest						27,492						36,648						40,142

See notes to consolidated financial statements.

For the Years Ended June 30, 2021, 2020 and 2019						Shares of Common Stock Outstanding						Common Stock						Additional Paid-In Capital						Retained Earnings						Treasury Shares- at Cost						Accumulated Other Comprehensive Loss						Total Shareholders' Equity
Balance at June 30, 2018						38,703						$	10,000					$	169,383					$	1,129,678					$	(403,875)					$	(90,223)					$	814,963
Net income																								143,993																		143,993
Other comprehensive income (loss)																																				(9,663)						(9,663)
Cumulative effect of adopting accounting standards																								3,056																		3,056
Cash dividends — $1.22 per share																								(47,621)																		(47,621)
Purchases of common stock for treasury						(192)																								(11,158)												(11,158)
Treasury shares issued for:
Exercise of stock appreciation rights and options						30												(1,069)												(59)												(1,128)
Performance share awards						18												(844)												(301)												(1,145)
Restricted stock units						23												(1,057)												(120)												(1,177)
Compensation expense — stock appreciation rights and options																		2,437																								2,437
Other share-based compensation expense																		4,474																								4,474
Other						15												(393)						42						354												3
Balance at June 30, 2019						38,597						10,000						172,931						1,229,148						(415,159)						(99,886)						897,034
Net income																								24,042																		24,042
Other comprehensive income (loss)																																				(29,544)						(29,544)
Cumulative effect of adopting accounting standards																								(3,275)																		(3,275)
Cash dividends — $1.26 per share																								(49,305)																		(49,305)
Treasury shares issued for:
Exercise of stock appreciation rights and options						43												(730)												71												(659)
Performance share awards						36												(1,540)												362												(1,178)
Restricted stock units						17												(671)												213												(458)
Compensation expense — stock appreciation rights and options																		2,954																								2,954
Other share-based compensation expense																		4,000																								4,000
Other						17												(452)						(40)						423												(69)
Balance at June 30, 2020						38,710						10,000						176,492						1,200,570						(414,090)						(129,430)						843,542
Net income																								144,757																		144,757
Other comprehensive income (loss)																																				36,338						36,338
Cash dividends — $1.30 per share																								(50,992)																		(50,992)
Purchases of common stock for treasury						(400)																								(40,089)												(40,089)
Treasury shares issued for:
Exercise of stock appreciation rights and options						152												(6,379)												(2,009)												(8,388)
Performance share awards						22												(985)												(20)												(1,005)
Restricted stock units						19												(740)												95												(645)
Compensation expense — stock appreciation rights and options																		2,526																								2,526
Other share-based compensation expense																		6,454																								6,454
Other						13												(354)						78						324												48
Balance at June 30, 2021						38,516						$	10,000					$	177,014					$	1,294,413					$	(455,789)					$	(93,092)					$	932,546

The Company has a non-qualified pension plan to provide supplemental retirement benefits to certain officers. Benefits are payable and determinable at retirement based upon a percentage of the participant’s historical compensation. The Executive Organization and Compensation Committee of the Board of Directors froze participant benefits (credited service and final average earnings) and entry into the Supplemental Executive Retirement Benefits Plan (SERP) effective December 31, 2011. The Company recorded net periodic benefit costs associated with the SERP of $401, $317, and $414 in fiscal 2021, 2020, and 2019, respectively. The Company expects to make payments of approximately $800 under the SERP in fiscal 2022 and 2023, and approximately $200 in fiscal 2024.

In fiscal 2012, the Company adopted the Key Executive Restoration Plan (KERP), a funded, non-qualified deferred compensation plan, to replace the SERP. The Company recorded $334, $189, and $400 of expense associated with this plan in fiscal 2021, 2020, and 2019, respectively.

The Company has a qualified defined benefit retirement plan that provides benefits to certain hourly employees at retirement. These employees did not participate in the Retirement Savings Plan. The benefits are based on length of service and date of retirement. The plan accruals were frozen as of April 16, 2018, and employees are permitted to participate in the Retirement Savings Plan, following that date. The Company recorded net periodic cost (benefits) associated with this plan of $46, $(116), and $(34) in fiscal 2021, 2020, and 2019, respectively

The Company provides health care benefits, through third-party policies, to eligible retired employees who pay a specified monthly premium. Premium payments are based upon current insurance rates for the type of coverage provided and are adjusted annually. Certain monthly health care premium payments are partially subsidized by the Company. Additionally, in conjunction with a fiscal 1998 acquisition, the Company assumed the obligation for a post-retirement medical benefit plan which provides health care benefits to eligible retired employees at no cost to the individual. The Company recorded net periodic benefits associated with these plans of $161, $257, and $418 in fiscal 2021, 2020, and 2019, respectively.

			Year Ended June 30, 2021
			Service Center Based Distribution			Fluid Power & Flow Control			Total
Geographic Areas:
United States			$	1,768,965		$	1,013,894		$	2,782,859
Canada			255,360			—			255,360
Other countries			175,208			22,492			197,700
Total			$	2,199,533		$	1,036,386		$	3,235,919

			Year Ended June 30, 2020
			Service Center Based Distribution			Fluid Power & Flow Control			Total
Geographic Areas:
United States			$	1,833,275		$	986,125		$	2,819,400
Canada			248,610			—			248,610
Other countries			160,064			17,578			177,642
Total			$	2,241,949		$	1,003,703		$	3,245,652

			Year Ended June 30, 2019
			Service Center Based Distribution			Fluid Power & Flow Control			Total
Geographic Areas:
United States			$	2,009,479		$	1,007,280		$	3,016,759
Canada			271,305			—			271,305
Other countries			172,121			12,554			184,675
Total			$	2,452,905		$	1,019,834		$	3,472,739

			Year Ended June 30, 2021
			Service Center Based Distribution						Fluid Power & Flow Control						Total
General Industry			35.8		%				40.0		%				37.2		%
Industrial Machinery			9.8		%				26.8		%				15.2		%
Food			13.5		%				2.9		%				10.1		%
Metals			10.5		%				6.8		%				9.3		%
Forest Products			10.7		%				2.9		%				8.2		%
Chem/Petrochem			3.3		%				13.6		%				6.6		%
Cement & Aggregate			7.9		%				1.1		%				5.7		%
Transportation			4.6		%				4.8		%				4.7		%
Oil & Gas			3.9		%				1.1		%				3.0		%
Total			100.0		%				100.0		%				100.0		%