<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------------------------------
FORM 11-K
FOR ANNUAL REPORTS OF EMPLOYEE
STOCK PURCHASE, SAVINGS AND SIMILAR
PLANS PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
---------------------------------
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the fiscal year ended December 31, 1999.
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from _______ to ______.
Commission file number 1-2299
A. Full title of the plan and the address of the plan, if
different from that of the issuer named below:
Applied Industrial Technologies, Inc.
Retirement Savings Plan
B. Name of issuer of the securities held pursuant to the plan and
the address of its principal executive office:
Applied Industrial Technologies, Inc.
One Applied Plaza
Cleveland, Ohio 44115-5056
<PAGE> 2
Financial Statements and Exhibit(s)
-----------------------------------
<TABLE>
<CAPTION>
Page No.
(a) Financial Statements (in this Report)
-------------------- ----------------
<S> <C>
Independent Auditors' Report 5
Statement of Net Assets Available
for Benefits --
December 31, 1999 and 1998 6
Statement of Changes in Net Assets
Available for Benefits --
Years Ended December 31,
1999 and 1998 7
Notes to Financial Statements --
Years Ended December 31,
1999 and 1998 8-13
Supplemental Schedules 14-15
(b) Exhibit(s)
----------
Independent Auditors' Consent 16
</TABLE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Plan has duly caused this annual report to be signed on its behalf by
the undersigned, hereunto duly authorized.
APPLIED INDUSTRIAL TECHNOLOGIES,
INC. RETIREMENT SAVINGS PLAN
By: Applied Industrial
Technologies, Inc., as Plan
Administrator
By: /s/John R. Whitten
-----------------------------------
Signature
John R. Whitten
-----------------------------------
Printed Name
Vice President
-----------------------------------
Title
Date: June 28, 2000
<PAGE> 3
APPLIED INDUSTRIAL TECHNOLOGIES, INC.
RETIREMENT SAVINGS PLAN
Financial Statements
For the Years Ended
December 31, 1999 and 1998,
Supplemental Schedules
For the Year Ended
December 31, 1999,
and Independent Auditors' Report
<PAGE> 4
APPLIED INDUSTRIAL TECHNOLOGIES, INC.
RETIREMENT SAVINGS PLAN
TABLE OF CONTENTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
INDEPENDENT AUDITORS' REPORT 1
FINANCIAL STATEMENTS:
Statements of Net Assets Available for Benefits
As of December 31, 1999 and 1998 2
Statements of Changes in Net Assets Available for Benefits
For the Years Ended December 31, 1999 and 1998 3
Notes to Financial Statements 4 - 9
SUPPLEMENTAL SCHEDULES:
Item 27a - Schedule of Assets Held for Investment Purposes
As of December 31, 1999 10
Item 27d - Schedule of Reportable Transactions
For the Year Ended December 31, 1999 11
</TABLE>
<PAGE> 5
[DELOITTE & TOUCHE LETTERHEAD]
INDEPENDENT AUDITORS' REPORT
Applied Industrial Technologies, Inc. Retirement Savings Plan
We have audited the accompanying statements of net assets available for benefits
of the Applied Industrial Technologies, Inc. Retirement Savings Plan (the
"Plan") as of December 31, 1999 and 1998, and the related statements of changes
in net assets available for benefits for the years then ended. These financial
statements are the responsibility of the Plan's management. Our responsibility
is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the net assets available for benefits of the Plan as of December 31,
1999 and 1998, and the changes in net assets available for benefits for the
years then ended in conformity with accounting principles generally accepted
in the United States of America.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules listed in the
Table of Contents are presented for the purpose of additional analysis and are
not a required part of the basic financial statements but are supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. These schedules are the responsibility of the Plan's management. Such
schedules have been subjected to the auditing procedures applied in our audits
of the basic financial statements and, in our opinion, are fairly stated in all
material respects when considered in relation to the basic financial statements
taken as a whole.
/s/ Deloitte & Touche LLP
Cleveland, Ohio
June 8, 2000
---------------
DELOITTE TOUCHE
TOHMATSU
---------------
<PAGE> 6
APPLIED INDUSTRIAL TECHNOLOGIES, INC. RETIREMENT SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1999 AND 1998
================================================================================
<TABLE>
<CAPTION>
1999 1998
<S> <C> <C>
ASSETS:
Investments at fair value:
Applied Industrial Technologies, Inc. common stock $ 27,769,885 $ 21,492,012
Mutual funds 147,867,084 127,157,832
Common/collective funds 31,493,679 31,341,567
Loans to participants 6,298,669 5,984,658
------------------- -------------------
Total investments 213,429,317 185,976,069
Receivables:
Contributions 239,504
Other 2,060 3,094
------------------- -------------------
Total receivables 2,060 242,598
------------------- -------------------
NET ASSETS AVAILABLE FOR BENEFITS $213,431,377 $186,218,667
=================== ===================
</TABLE>
See notes to financial statements.
2
<PAGE> 7
APPLIED INDUSTRIAL TECHNOLOGIES, INC. RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1999 AND 1998
================================================================================
<TABLE>
<CAPTION>
1999 1998
<S> <C> <C>
ADDITIONS:
Contributions:
Participant $ 9,405,165 $ 12,726,464
Employer:
Applied Industrial Technologies, Inc. common stock 2,258,161 2,424,304
Cash 1,304,113 2,536,735
Net assets transferred from other plans (Note 1) 749,659 36,495,330
Investment income 10,778,417 10,788,136
Net appreciation in fair value of investments 29,975,221
------------------- -------------------
Total additions 54,470,736 64,970,969
DEDUCTIONS:
Distributions to participants 26,994,654 15,431,243
Administrative expenses 263,372 398,823
Net depreciation in fair value of investments 3,878,557
------------------- -------------------
Total deductions 27,258,026 19,708,623
------------------- -------------------
INCREASE IN NET ASSETS FOR THE YEAR 27,212,710 45,262,346
NET ASSETS AVAILABLE FOR BENEFITS, Beginning of the year 186,218,667 140,956,321
------------------- -------------------
NET ASSETS AVAILABLE FOR BENEFITS, End of the year $ 213,431,377 $ 186,218,667
=================== ===================
</TABLE>
See notes to financial statements.
3
<PAGE> 8
APPLIED INDUSTRIAL TECHNOLOGIES, INC. RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1999 AND 1998
----------------------------------------------------------------------------
1. DESCRIPTION OF THE PLAN
The Plan sponsor merged into the Plan the Invetech Company Profit
Sharing 401(k) Retirement Plan (the "Invetech Plan") during 1998 and
the Associated Bearings Company 401(k) Retirement Plan (the "ABC Plan")
during 1999. Pursuant to the mergers, all participants in the Invetech
Plan and the ABC Plan became entitled to participate in the Plan. Net
assets totaling $36,495,330 and $749,659 were transferred to the Plan
in 1998 and 1999, respectively. The following description of the Plan
is provided for general information purposes only. Participants and
users of the financial statements should refer to the Plan document for
more complete information.
GENERAL - The Plan was established by Applied Industrial Technologies,
Inc. and its subsidiaries (the "Company") for the purpose of
encouraging and assisting employees to provide long-term, tax-deferred
savings for retirement. The Plan is subject to the reporting and
disclosure requirements, the minimum participation and vesting
standards, and the fiduciary responsibility requirements of the
Employee Retirement Income Security Act of 1974.
ADMINISTRATION - The Plan is administered by the Company. The Company's
powers and duties relate to making employee and employer contributions
to the Trust, establishing investment objectives, authorizing
disbursements from the Trust, and resolving any questions of Plan
interpretation.
The assets of the Plan are maintained and administered by Key Trust Co.
of Ohio, N.A. acting as Trustee. The Trustee is responsible for the
custody of assets.
PARTICIPANT ACCOUNTS - Each participant's account is credited with the
participant's contributions and allocations of (a) the Company's
contributions and, (b) Plan earnings, and charged with an allocation of
administrative expenses. Allocations are based on participant
contributions, account balances, or can be per capita, as defined. The
benefit to which a participant is entitled is the benefit that can be
provided from the participant's vested account.
PARTICIPATION AND CONTRIBUTIONS - All eligible employees may
participate in the Plan on the first day of the month following their
hire.
Eligible employees may elect to make pretax contributions to the Plan
ranging from 1% to 15% of compensation. The Company may make additional
contributions to the Plan, including, but not limited to, matching
contributions equal to a percentage of participant pretax contributions
not in excess of 6% of the participant's compensation, and
discretionary profit-sharing contributions as determined annually.
Matching employer contributions are determined based upon the Company's
earnings per share for the immediately preceding calendar year quarter
and the participant's investment elections.
4
<PAGE> 9
The matching employer contribution is updated annually based on the
Company's June 30 fiscal year end and is currently determined using the
following schedule:
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------
SUBSEQUENT QUARTER MATCHING CONTRIBUTION
----------------------------------------------------------------------
QUARTERLY EPS $.25 $.35 $.50 $.75 $1.00
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Quarter Ended 9/30/99 $.26 or less $.27 $.28 $.29 $.30
----------------------------------------------------------------------------------------------------
Quarter Ended 12/31/99 .31 or less .32 .33 .34 .35
----------------------------------------------------------------------------------------------------
Quarter Ended 3/31/00 .36 or less .37 .39 .41 .43
----------------------------------------------------------------------------------------------------
Quarter Ended 6/30/00 .41 or less .42 .44 .46 .48
----------------------------------------------------------------------------------------------------
</TABLE>
The employer match on participant contributions to investment funds
other than the Company Stock fund was $.25, $.25, $.35, and $.50 for
the four 1999 quarters, and $.25, $.35, $.35, and $.25 for the four
1998 quarters, respectively.
Matching Employer Contributions are made primarily in shares of Applied
Industrial Technologies, Inc. common stock to the Company Stock Fund.
Participants that elect to contribute to the Company Stock Fund receive
an additional $.10 Bonus Match on participant's pretax contributions
not in excess of 6% of the participant's compensation. The Bonus Match
is also made primarily in shares of Applied Industrial Technologies,
Inc common stock to the Company Stock Fund.
The Company may also make a Profit-Sharing Contribution to the Plan
annually. Participants must be employed on June 30 of such Plan year
and have completed at least one year of service, as defined in the Plan
agreement, as of June 30 to be eligible to receive an allocation of the
Profit-Sharing Contribution. Profit-Sharing Contributions are allocated
to each participant's Profit-Sharing Contribution Account based upon
the ratio of each participant's total compensation to the aggregate
compensation of all participants eligible to receive a Profit- Sharing
Contribution. The Profit-Sharing Contribution for the years ended
December 31, 1999 and 1998 is composed of $1,304,075 and $2,536,735 in
cash, and $173,954 and $325,143 in Applied Industrial Stock,
respectively.
Contributions are excluded from participants' taxable income until such
amounts are received by them as a distribution from the Plan.
The Plan provides for Rollover Contributions (amounts previously
distributed to the participants from certain other tax-qualified plans)
and Transfer Contributions (assets transferred from certain other
tax-qualified plans) by or on behalf of an employee in accordance with
procedures established by the Company.
INVESTMENT OF CONTRIBUTIONS - Participants elect investment of
profit-sharing and pretax contributions in 5% increments in the Plan's
Company Stock Fund, American Fundamental Investors Fund, American
EuroPacific Growth Fund, Income Fund of America, Fixed Income Fund,
Bond Fund of America, Growth and Income Fund, Small Company Stock Fund,
Growth Stock Fund or the Mid-Cap Growth Fund. The portion of the Plan
that is invested in the Company Stock Fund is intended to be an
Employee Stock Ownership Plan (ESOP) under code section 4975 (e)(7) and
ERISA section 704 (d)(6). Participants may elect to change their
investment elections as to future contributions and may also elect to
reallocate a portion or all of their account balances among the
investment funds in increments of 5% of the total amount to be
reallocated. All such elections are filed with the Trustee and become
effective daily.
5
<PAGE> 10
The value of the funds and the interest of individual participants
under each fund, are calculated daily (daily valuation).
VESTING AND DISTRIBUTIONS - Each participant is immediately and fully
vested in their participant contributions and earnings thereon.
Participants vest in Matching Employer Contributions and Profit-Sharing
Contributions at a rate of 25% for each year of eligible service,
becoming completely vested after four years, or at death, termination
of employment due to permanent and total disability, or normal or early
retirement as defined in the Plan.
Upon termination of employment, participants may receive lump sum or
installment distributions of their vested account balances as soon as
administratively possible. The Plan permits hardship withdrawals and
in-service distributions upon attainment of age 59-1/2.
Forfeitures of nonvested amounts are applied to reduce future Matching
Employer Contributions. Total forfeitures were $107,300 in 1999 and
$78,463 in 1998.
LOANS - Participants may borrow from their 401(k) Contribution
Accounts, Rollover Contributions and Transferred Contributions a
minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50
percent of the aggregate sum of the participant's accounts. Loan terms
range from 1-5 years or up to ten years, if for the purchase of a
primary residence. The loans are secured by the balance in the
participant's accounts and bear interest at rates prevailing at the
time the loans were made. Principal and interest are paid ratably
through bi-weekly payroll deductions.
PLAN TERMINATION - The Plan was adopted with the expectation that it
will continue indefinitely. The Company may, however, terminate the
Plan at any time and may amend the Plan from time to time. In the event
of termination of the Plan, all participants will immediately become
fully vested in their accounts.
TAX STATUS OF THE PLAN - The Plan obtained its latest determination
letter dated June 27, 1996, in which the Internal Revenue Service
stated that the Plan, as then designed, was in compliance with the
applicable requirements of the Internal Revenue Code. The Plan has been
amended since receiving this determination letter. The Plan
administrator and the Plan's tax counsel believe that the Plan is
designed and is currently being operated in compliance with the
applicable requirements of the Internal Revenue Code. Therefore, no
provision for income taxes has been included in the Plan's financial
statements.
6
<PAGE> 11
2. DESCRIPTION OF THE SEPARATE INVESTMENT FUNDS
The Trustee maintains separate accounts for each Plan participant and
invests such participant's contributions and Company profit-sharing
contributions, as directed by the participant, in one or more of the
following funds:
- The Company Stock Fund consists of investments in the common stock of
Applied Industrial Technologies, Inc. and temporary investments in the
Trustee's EB Money Market Fund.
- The American Fundamental Investors Fund consists of shares of
Fundamental Investors Fund, which invests in mature stocks designed
with the objective of growth from price appreciation and income from
dividends.
- The American EuroPacific Growth Fund consists of shares of the
EuroPacific Growth Fund, which invests in stocks from companies located
outside the U. S. with the objective of capital appreciation.
- The Income Fund of America consists of shares of Income Fund of
America, which invests in stocks and bonds with the objective of
maximizing current income from dividends and interest.
- The Fixed Income Fund consists of units of the Trustee's EB MaGIC Fund,
which invests in a combination of guaranteed investment contracts and
cash equivalents, and temporary investments in the Trustee's EB Money
Market Fund.
- The Bond Fund of America consists of shares of the Bond Fund of
America, which invests in government and corporate bonds.
- The Growth and Income Fund consists of shares of the EB Equity Index
Fund, which invests with the objective of replicating the return of the
Standard & Poor's 500 Index, seeking a combination of capital
appreciation and dividend income.
- The Small Company Stock Fund consists of shares of the Franklin Small
Cap Growth Fund, which invests in small companies with the objective of
capital appreciation.
- The Growth Stock Fund seeks to achieve growth of capital by investing
in growth stocks through three stock mutual funds and consists of
shares in the Dreyfus Appreciation Fund, the Enterprise Growth Fund,
and the Harbor Capital Appreciation Fund.
- The Mid-Cap Growth Fund consists of shares in the T. Rowe Price Mid-Cap
Growth Fund, which invests in mid-size companies and seeks long term
growth.
7
<PAGE> 12
The Plan's investment options provide for ten separate investment funds
in 1999 and nine separate investment funds in 1998. Effective July 1,
1999, the Mid-Cap Growth Fund was added. Effective January 1, 1998, the
Growth and Income Fund was added, the Fidelity Growth Fund (a fund that
consisted of shares of Advisors Institutional Equity Growth Fund, which
invested in stocks with the objective of capital appreciation) was
replaced by the Growth Stock Fund, and the Hancock Equity Fund (a fund
that consisted of shares of John Hancock Special Equity Fund, which
invested in stocks of emerging growth companies) was replaced by the
Small Company Stock Fund.
Matching Employer Contributions are invested in the Company Stock Fund
which consists of investments in the common stock of Applied Industrial
Technologies, Inc., limited to a maximum of two million three hundred
thousand shares, and temporary investments in the Trustee's EB Money
Market Fund.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING - Each fund of the Trust is accounted for
separately. The accounts of these funds are maintained, and the
accompanying financial statements have been prepared, on the accrual
basis of accounting.
USE OF ESTIMATES - In preparing the financial statements in conformity
with generally accepted accounting principles, the Plan's administrator
is required to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
VALUATION OF INVESTMENTS - Investments are accounted for at cost on the
trade-date and are reported in the statement of net assets available
for benefits at fair value. The investment in Applied Industrial
Technologies, Inc. common stock is valued using the year-end closing
price listed by the New York Stock Exchange. Investment funds are
stated at values using year-end closing prices for each of the funds or
quoted market prices.
BENEFIT PAYMENTS - Distributions to participants are recorded by the
Plan when payments are made.
ADMINISTRATIVE EXPENSES - Administrative expenses of the Plan are paid
by the Plan or the Company, as determined by the Company.
RECLASSIFICATION - The Plan adopted SOP 99-3, Accounting and Reporting
of Certain Defined Contribution Plan Investments and Other Disclosure
Matters. As a result, the prior year financial statements have been
reclassified to eliminate the by-fund disclosures. Additionally,
certain reclassifications have been made to the 1999 financial
statements.
4. INVESTMENTS
The Plan provides that, in accordance with the investment objectives
established by the Company, the Trustee of the Plan shall hold, invest,
reinvest, manage and administer all assets of the Plan as a trust fund
for the exclusive benefit of participants and their beneficiaries.
8
<PAGE> 13
Plan investments are detailed in the supplemental schedule of assets
held for investment purposes which is attached to these financial
statements. Plan investments exceeding 5% of net assets available for
benefits as of December 31, 1999 and 1998 were as follows:
<TABLE>
<CAPTION>
Description of
Investment 1999 1998
------------------ ------------------
----------------------------------------------------------------------------------------------
<S> <C> <C>
Applied Industrial Technologies, Inc. Common Stock $ 27,769,885 $ 21,492,012
Fundamental Investors Fund 35,894,330 30,196,057
EuroPacific Growth Fund 23,167,174 14,863,312
Income Fund of America 27,490,841 34,105,225
EB MaGIC Fund 19,096,028 20,429,903
EB Equity Index Fund 11,988,777 10,318,828
Franklin Small Cap Growth Fund 15,318,305 -
Dreyfus Appreciation Fund 11,754,425 11,141,288
Enterprise Growth Fund 12,616,448 11,523,138
Harbor Capital Appreciation Fund 14,767,912 11,632,092
</TABLE>
5. NONPARTICIPANT-DIRECTED INVESTMENTS
Information about the net assets and the significant components of the
changes in net assets relating to nonparticipant-directed investments
is as follows:
<TABLE>
<CAPTION>
1999 1998
-----------------------------------------
<S> <C> <C>
NET ASSETS:
Common stock 27,769,885 21,492,012
Money market funds 409,570 574,547
------------------ ------------------
28,179,455 22,066,559
================== ==================
CHANGE IN NET ASSETS:
Contributions 3,653,257 3,875,263
Dividends / interest 790,455 616,360
Net appreciation / (depreciation) 4,462,737 (15,360,571)
Benefits paid to participants (2,265,162) (1,947,537)
Transfers (to) / from participant-directed investments (542,417) 3,928,043
------------------ ------------------
6,098,870 (8,888,442)
================== ==================
</TABLE>
******
9
<PAGE> 14
APPLIED INDUSTRIAL TECHNOLOGIES, INC. RETIREMENT SAVINGS PLAN
ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1999
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(a) (b) (c) (d) (e)
IDENTITY OF ISSUER, BORROWER, DESCRIPTION OF INVESTMENT COST CURRENT
LESSOR OR SIMILAR PARTY VALUE
<S> <C> <C> <C> <C>
COMPANY STOCK
* Applied Industrial Tech., Inc. Common Stock - 1,670,369 shares $ 26,498,105 $ 27,769,885
AMERICAN FUNDAMENTAL INVESTORS
The American Funds Group Fundamental Investors Fund - 1,101,391 shares 28,003,637 35,894,330
AMERICAN EUROPACIFIC GROWTH
The American Funds Group EuroPacific Growth Fund - 543,065 shares 14,214,135 23,167,174
INCOME FUND OF AMERICA
The American Funds Group Income Fund of America - 1,746,559 shares 29,511,269 27,490,841
FIXED INCOME FUND
* Key Trust Company of Ohio, NA EB MaGIC Fund - 1,403,218 units 16,866,503 19,096,028
BOND FUND OF AMERICA
The American Funds Group Bond Fund of America - 425,289 shares 5,820,157 5,520,255
GROWTH AND INCOME
* Key Trust Company of Ohio, NA EB Equity Index Fund - 121,469 units 8,448,925 11,988,777
SMALL COMPANY STOCK
Franklin Templeton Franklin Small Cap Growth - 347,118 shares 8,397,036 15,318,305
GROWTH STOCK
Dreyfus Appreciation Fund, Inc. Dreyfus Appreciation Fund - 257,040 shares 8,999,137 11,754,425
Enterprise Group of Funds, Inc. Enterprise Growth Fund - 513,908 shares 9,329,875 12,616,448
Harbor Fund Harbor Capital Appreciation Fund - 291,568 shares 9,692,020 14,767,912
MID-CAP GROWTH FUND
T. Rowe Price T Rowe Price Mid-Cap Growth Fund - 33,459 shares 1,247,582 1,342,710
EMPLOYEE LOAN FUND
* Participant Loans Participant Loans (with interest rates 6,298,669 6,298,669
ranging from 7.00% to 11.50% and
maturity dates ranging from January
2000 to July 2027)
SHORT TERM INVESTMENTS
* Key Trust Company of Ohio, NA EB Money Market - units 403,558 403,558
--------------------------------
Total $ 173,730,608 $ 213,429,317
================================
* Represents a party-in-interest
</TABLE>
<PAGE> 15
APPLIED INDUSTRIAL TECHNOLOGIES RETIREMENT SAVINGS PLAN
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(a) (b) (c) (d) (e) (f) (g)
Identity of Purchase Selling Lease Expense Incurred Cost of
Party Involved Description of Asset Price Price Rental with Transaction Assets
<S> <C> <C> <C> <C> <C> <C>
SERIES OF TRANSACTIONS:
Key Trust of Ohio, NA EB Money Market Fund $ 21,925,291 None $ 21,925,291
The American Funds Group Fundamental Investors 7,122,500 None 7,122,500
The American Funds Group Income Fund of America 4,295,153 None 4,295,153
Key Trust of Ohio, NA EB MaGIC Fund 5,239,198 None 5,239,198
Key Trust of Ohio, NA EB Money Market Fund $22,197,445 None 22,197,445
The American Funds Group Fundemental Investors 5,389,658 None 4,191,673
The American Funds Group Income Fund of America 8,319,941 None 8,170,617
Key Trust of Ohio, NA EB MaGIC Fund 7,617,015 None 6,782,198
SINGLE TRANSACTIONS:
None
</TABLE>
<TABLE>
<CAPTION>
(a) (h) (i)
Identity of Current Value of Asset Net Gain
Party Involved on Transaction Date or (Loss)
<S> <C> <C>
SERIES OF TRANSACTIONS:
Key Trust of Ohio, NA $ 21,925,291 N/A
The American Funds Group 7,122,500 N/A
The American Funds Group 4,295,153 N/A
Key Trust of Ohio, NA 5,239,198 N/A
Key Trust of Ohio, NA 22,197,445 None
The American Funds Group 5,389,658 $1,197,985
The American Funds Group 8,319,941 149,325
Key Trust of Ohio, NA 7,617,015 834,817
SINGLE TRANSACTIONS:
None
</TABLE>
NOTE - Reportable transactions are single transactions or a series of
transactions in the same issue that, when aggregated, are in excess of 5% of the
current value of plan assets at the beginning of the plan year.
