Share - Based Compensation (Tables)

12 Months Ended

Jun. 30, 2025

Share-Based Payment Arrangement, Noncash Expense [Abstract]

Schedule of share based compensation expense

Following approval by the Company's shareholders in October 2023, the 2023 Long-Term Performance Plan (the "2023 Plan") replaced the 2019 Long-Term Performance Plan. The 2023 Plan, which expires in 2028, provides for granting of SARs, stock options, stock awards, cash awards, and such other awards or combination thereof as the Executive Organization and Compensation Committee or, in the case of director awards, the Corporate Governance & Sustainability Committee, of the Board of Directors (together referred to as the "Committee") may determine to officers, other key employees and members of the Board of Directors. Grants are generally made at regularly scheduled Committee meetings. Compensation costs charged to expense under award programs paid (or to be paid) with shares (including SARs, performance shares, restricted stock, and RSUs) are summarized in the table below:


Year Ended June 30,	2025		2024		2023
SARs	$	4,713	$	3,448	$	2,785
Performance shares	2,999		4,232		5,302
Restricted stock and RSUs	4,290		5,264		4,274
Total compensation costs under award programs	$	12,002	$	12,944	$	12,361

Schedule of Unrecognized Compensation Cost, Nonvested Awards [Table Text Block]

The aggregate unrecognized compensation cost for share-based award programs with the potential to be paid at June 30, 2025 is summarized in the table below:


June 30,	2025		Average Expected Period of Expected Recognition (Years)
SARs	$	6,543	2.5
Performance shares	7,037		1.7
Restricted stock and RSUs	3,030		2.1
Total unrecognized compensation costs under award programs	$	16,610	2.1

Weighted-average assumptions used for SARs and stock option grants issued

The weighted-average assumptions used for SARs grants issued in fiscal 2025, 2024, and 2023 are:


	2025		2024		2023
Expected life, in years	6.0		6.0		6.2
Risk free interest rate	3.7	%	4.1	%	2.9	%
Dividend yield	0.8	%	1.0	%	1.3	%
Volatility	37.3	%	37.0	%	35.5	%
Per share fair value of SARs granted during the year	$78.15		$55.65		$35.98

Summary of SARs and stock option activity

A summary of SARs activity is presented below:


	Shares	Weighted-Average Exercise Price
Year Ended June 30, 2025
(Shares in thousands)
Outstanding at beginning of year	712	$	82.65
Granted	83	199.30
Exercised	(82)	67.53
Forfeited	(3)	185.99
Outstanding at end of year	710	$	97.47
Exercisable at end of year	480	$	73.02
Expected to vest at end of year	704	$	96.96

Schedule of Nonvested Performance-Based Units Activity

A summary of non-vested performance shares activity at June 30, 2025 is presented below:


	Shares	Weighted-Average Grant-Date Fair Value
Year Ended June 30, 2025
(Shares in thousands)
Non-vested at beginning of year	101	$	93.73
Awarded	23	135.53

Vested	(62)	84.86
Non-vested at end of year	62	$	117.80

Schedule of Nonvested Restricted Stock Units Activity

A summary of the status of the Company’s non-vested restricted stock and RSUs at June 30, 2025 is presented below:


	Shares	Weighted-Average Grant-Date Fair Value
Year Ended June 30, 2025
(Share amounts in thousands)
Non-vested at beginning of year	130	$	99.05
Granted	22	212.71
Forfeitures	(2)	145.77
Vested	(70)	84.44
Non-vested at end of year	80	$	142.41

APPLIED INDUSTRIAL TECHNOLOGIES INC 10-K