Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Jun. 30, 2023

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

VALUATION AND QUALIFYING ACCOUNTS

APPLIED INDUSTRIAL TECHNOLOGIES, INC. & SUBSIDIARIES

SCHEDULE II

VALUATION AND QUALIFYING ACCOUNTS

YEARS ENDED JUNE 30, 2023, 2022, AND 2021

(in thousands)

COLUMN A	COLUMN B		COLUMN C					COLUMN D			COLUMN E
DESCRIPTION	Balance at Beginning of Period		Additions Charged to Cost and Expenses		Additions (Deductions) Charged to Other Accounts			Deductions from Reserve			Balance at End of Period
Year Ended June 30, 2023
Reserve deducted from assets to which it applies —
Accounts receivable:
Allowance for doubtful accounts	$	17,522	$	5,619	$	—		$	807	(B)	$	22,334
Returns reserve	10,522		—		2,113		(A)	—			12,635
	$	28,044	$	5,619	$	2,113		$	807		$	34,969
Year Ended June 30, 2022
Reserve deducted from assets to which it applies —
Accounts receivable:
Allowance for doubtful accounts	$	16,455	$	3,193	$	—		$	2,126	(B)	$	17,522
Returns reserve	9,772		—		750		(A)	—			10,522
	$	26,227	$	3,193	$	750		$	2,126		$	28,044
Year Ended June 30, 2021
Reserve deducted from assets to which it applies —
Accounts receivable:
Allowance for doubtful accounts	$	13,661	$	6,540	$	—		$	3,746	(B)	$	16,455
Returns reserve	9,883		—		(111)		(A)	—			9,772
	$	23,544	$	6,540	$	(111)		$	3,746		$	26,227

(A)Amounts in the years ending June 30, 2023, 2022 and 2021 represent reserves recorded for the return of merchandise by customers. The Company adopted ASC 606 - Revenue from Contracts with Customers effective July 1, 2018 which requires the Company's sales returns reserve to be established at the gross sales value with an asset established for the value of the expected product to be returned.

(B)Amounts represent uncollectible accounts charged off.