Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jul. 31, 2014 | Dec. 31, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'KENNAMETAL INC | ' | ' |
Entity Central Index Key | '0000055242 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 30-Jun-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $3,126,500,000 |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Current Fiscal Year End Date | '--06-30 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 78,681,423 | ' |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Income Statement [Abstract] | ' | ' | ' |
Sales | $2,837,190 | $2,589,373 | $2,736,246 |
Cost of goods sold | 1,940,187 | 1,744,369 | 1,741,996 |
Gross profit | 897,003 | 845,004 | 994,250 |
Operating expense | 589,768 | 527,850 | 561,490 |
Restructuring charges (Note 14) | 17,608 | 0 | 0 |
Amortization of intangibles | 26,195 | 20,760 | 16,351 |
Operating income | 263,432 | 296,394 | 416,409 |
Interest expense | 32,451 | 27,472 | 27,215 |
Other expense (income), net | 2,172 | 2,313 | -775 |
Income before income taxes | 228,809 | 266,609 | 389,969 |
Provision for income taxes | 66,611 | 59,693 | 79,136 |
Net income | 162,198 | 206,916 | 310,833 |
Less: Net income attributable to noncontrolling interests | 3,832 | 3,651 | 3,603 |
Net income attributable to Kennametal | $158,366 | $203,265 | $307,230 |
PER SHARE DATA ATTRIBUTABLE TO KENNAMETAL SHAREOWNERS | ' | ' | ' |
Basic earnings per share | $2.01 | $2.56 | $3.83 |
Diluted earnings per share | $1.99 | $2.52 | $3.77 |
Dividends per share | $0.72 | $0.64 | $0.54 |
Basic weighted average shares outstanding | 78,678 | 79,463 | 80,216 |
Diluted weighted average shares outstanding | 79,667 | 80,612 | 81,439 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net income | $162,198 | $206,916 | $310,833 |
Unrealized loss on derivatives designated and qualified as cash flow hedges, net of income tax benefit | -706 | -611 | -11,165 |
Reclassification of unrealized loss (gain) on expired derivatives designated and qualified as cash flow hedges, net of income tax benefit (expense) | 1,987 | 1,377 | -186 |
Unrecognized net pension and other postretirement benefit (loss) gain, net of income tax benefit (expense) | -11,990 | 39,376 | -90,686 |
Reclassification of net pension and other postretirement benefit loss, net of income tax benefit | 2,184 | 9,679 | 5,964 |
Foreign currency translation adjustments, net of income tax (expense) benefit | 31,763 | 9,223 | -140,797 |
Total comprehensive income | 185,436 | 265,960 | 73,963 |
Less: comprehensive income (loss) attributable to noncontrolling interests | 4,198 | 3,101 | -76 |
Comprehensive income attributable to Kennametal Shareowners | $181,238 | $262,859 | $74,039 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Unrealized loss on derivatives designated and qualified as cash flow hedges, tax benefit | $0.40 | $0.40 | $7 |
Reclassification of unrealized loss (gain) on expired derivatives designated and qualified as cash flow hedges, tax benefit (expense) | 1.2 | 0.9 | -0.1 |
Unrecognized net pension and other postretirement benefit (loss) gain, tax benefit (expense) | 3.9 | -25 | 50.6 |
Reclassification of net pension and other postretirement benefit loss, tax benefit | 0.5 | 5.5 | 30 |
Foreign currency translation adjustments, tax (expense) benefit | ($1.70) | ($1.20) | $5.10 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $177,929 | $377,316 |
Accounts receivable, less allowance for doubtful accounts | 531,515 | 445,322 |
Inventories (Note 7) | 703,766 | 578,795 |
Deferred income taxes (Note 11) | 47,897 | 49,707 |
Other current assets | 64,089 | 48,333 |
Total current assets | 1,525,196 | 1,499,473 |
Property, plant and equipment: | ' | ' |
Land and buildings | 437,783 | 381,215 |
Machinery and equipment | 1,638,215 | 1,466,942 |
Less accumulated depreciation | -1,191,540 | -1,106,675 |
Property, plant and equipment, net | 884,458 | 741,482 |
Other assets: | ' | ' |
Investments in affiliated companies | 495 | 671 |
Goodwill (Note 2) | 975,576 | 721,755 |
Other intangible assets, less accumulated amortization (Note 2) | 343,176 | 222,765 |
Deferred income taxes (Note 11) | 41,006 | 39,590 |
Other | 98,179 | 75,303 |
Total other assets | 1,458,432 | 1,060,084 |
Total assets | 3,868,086 | 3,301,039 |
Current liabilities: | ' | ' |
Current maturities of long-term debt and capital leases (Note 9) | 7,662 | 3,738 |
Notes payable to banks (Note 10) | 72,455 | 40,581 |
Accounts payable | 206,891 | 190,623 |
Accrued income taxes | 16,953 | 19,471 |
Accrued vacation pay | 38,456 | 39,410 |
Accrued payroll | 61,436 | 49,023 |
Other current liabilities (Note 8) | 158,903 | 124,747 |
Total current liabilities | 562,756 | 467,593 |
Long-term debt and capital leases, less current maturities (Note 9) | 981,666 | 703,626 |
Deferred income taxes (Note 11) | 118,092 | 102,935 |
Accrued postretirement benefits (Note 12) | 22,516 | 19,461 |
Accrued pension benefits (Note 12) | 158,268 | 142,784 |
Accrued income taxes (Note 11) | 21,384 | 27,530 |
Other liabilities | 41,796 | 24,817 |
Total liabilities | 1,906,478 | 1,488,746 |
Commitments and contingencies (Note 18) | ' | ' |
Kennametal Shareowners' Equity: | ' | ' |
Preferred stock, no par value; 5,000 shares authorized; none issued | ' | ' |
Capital stock, $1.25 par value; 120,000 shares authorized; 78,672 and 77,842 shares issued | 98,340 | 97,303 |
Additional paid-in capital | 395,890 | 374,300 |
Retained earnings | 1,501,157 | 1,399,227 |
Accumulated other comprehensive loss | -66,131 | -89,004 |
Total Kennametal Shareowners' Equity | 1,929,256 | 1,781,826 |
Noncontrolling interests | 32,352 | 30,467 |
Total equity | 1,961,608 | 1,812,293 |
Total liabilities and equity | $3,868,086 | $3,301,039 |
Consolidated_Balance_SheetsPar
Consolidated Balance Sheets(Parenthetical) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowance for doubtful accounts | $14,027 | $11,949 |
Accumulated amortization on other intangible assets | $139,245 | $111,440 |
Preferred stock, par value | $0 | $0 |
Preferred stock, shares authorized | 5,000 | 5,000 |
Preferred stock, shares issued | 0 | 0 |
Capital stock, par value | $1.25 | $1.25 |
Capital stock, shares authorized | 120,000 | 120,000 |
Capital stock, shares issued | 78,672 | 77,842 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flow (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
OPERATING ACTIVITIES | ' | ' | ' |
Net income | $162,198 | $206,916 | $310,833 |
Adjustments for non-cash items: | ' | ' | ' |
Depreciation | 104,027 | 92,344 | 87,722 |
Amortization | 26,195 | 20,760 | 16,351 |
Stock-based compensation expense | 17,641 | 21,874 | 21,500 |
Restructuring charges | 3,408 | ' | 0 |
Deferred income tax provision | 23,119 | 232 | 28,602 |
Other | 2,106 | 2,577 | -12,702 |
Changes in certain assets and liabilities: | ' | ' | ' |
Accounts receivable | -45,041 | 33,801 | -10,891 |
Inventories | -5,310 | 5,879 | -63,833 |
Accounts payable and accrued liabilities | 13,748 | -90,449 | -57,003 |
Accrued income taxes | -12,485 | 949 | -14,157 |
Other | -17,733 | -10,733 | -16,842 |
Net cash flow provided by operating activities | 271,873 | 284,150 | 289,580 |
INVESTING ACTIVITIES | ' | ' | ' |
Purchases of property, plant and equipment | -117,376 | -82,835 | -103,036 |
Disposals of property, plant and equipment | 1,236 | 3,016 | 6,886 |
Business acquisition, net of cash acquired (Note 4) | -634,615 | -500 | -382,562 |
Purchase of technology license | 0 | 0 | -10,000 |
Proceeds from sale of business | 10,225 | 0 | 0 |
Other | 356 | -379 | 1,447 |
Net cash flow used for investing activities | -740,174 | -80,698 | -487,265 |
FINANCING ACTIVITIES | ' | ' | ' |
Net (decrease) increase in notes payable | 31,568 | -833 | 38,198 |
Net (decrease) increase in short-term revolving and other lines of credit | -3,600 | -23,600 | 27,200 |
Term debt borrowings | 736,079 | 944,152 | 1,509,767 |
Term debt repayments | -450,928 | -736,562 | -1,324,426 |
Purchase of capital stock | -14,165 | -121,408 | -66,876 |
Sale of subsidary stock | 0 | 26,665 | 0 |
Settlement of interest rate swap agreement (Note 6) | 0 | 0 | -22,406 |
Dividend reinvestment and the effect of employee benefit and stock plans | 26,676 | 17,356 | 24,635 |
Cash dividends paid to Shareowners | -56,436 | -51,011 | -43,631 |
Other | 1,214 | -2,612 | -11,162 |
Net cash flow provided by (used for) financing activities | 270,408 | 52,147 | 131,299 |
Effect of exchange rate changes on cash and cash equivalents | -1,494 | 5,251 | -21,713 |
CASH AND CASH EQUIVALENTS | ' | ' | ' |
Net (decrease) increase in cash and cash equivalents | -199,387 | 260,850 | -88,099 |
Cash and cash equivalents, beginning of period | 377,316 | 116,466 | 204,565 |
Cash and cash equivalents, end of period | $177,929 | $377,316 | $116,466 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareowners' Equity Statement (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Noncontrolling Interests [Member] |
In Thousands | ||||||
Beginning Balance at Jun. 30, 2011 | ' | $101,411 | $470,758 | $983,374 | $82,529 | $20,569 |
Beginning Balance, Shares at Jun. 30, 2011 | ' | 81,129 | ' | ' | ' | ' |
Dividend reinvestment, Shares | ' | 8 | ' | ' | ' | ' |
Dividend reinvestment | ' | 10 | 282 | ' | ' | ' |
Capital stock issued under employee benefit and stock plans, Shares | ' | 956 | ' | ' | ' | ' |
Capital stock issued under employee benefit and stock plans | ' | 1,195 | 40,758 | ' | ' | ' |
Purchase of capital stock, Shares | ' | -2,008 | ' | ' | ' | ' |
Purchase of capital stock | ' | -2,510 | -64,365 | ' | ' | ' |
Sale of subsidiary stock to noncontrolling interests | ' | ' | 0 | ' | 0 | 0 |
Net income | 310,833 | ' | ' | 307,230 | ' | 3,603 |
Cash dividends paid | ' | ' | ' | -43,631 | ' | -1,333 |
Unrealized loss on derivatives designated and qualified as cash flow hedges, net of tax | -11,165 | ' | ' | ' | -11,165 | ' |
Reclassification of unrealized loss (gain) on expired derivatives designated and qualified as cash flow hedges, net of tax | 186 | ' | ' | ' | -186 | ' |
Unrecognized net pension and other postretirement benefit (loss) gain, net of tax | -90,686 | ' | ' | ' | -90,686 | ' |
Reclassification of net pension and other postretirement benefit loss, net of tax | -5,964 | ' | ' | ' | 5,964 | ' |
Foreign currency translation adjustments, net of tax | -140,797 | ' | ' | ' | -137,118 | ' |
Other comprehensive income (loss), net of tax | ' | ' | ' | ' | -233,191 | -3,679 |
Purchase of noncontrolling interests | ' | ' | ' | ' | ' | 0 |
Acquisition by noncontrolling interests | ' | ' | ' | ' | ' | 5,211 |
Ending Balance at Jun. 30, 2012 | 1,668,221 | 100,106 | 447,433 | 1,246,973 | -150,662 | 24,371 |
Ending Balance, Shares at Jun. 30, 2012 | ' | 80,085 | ' | ' | ' | ' |
Dividend reinvestment, Shares | ' | 6 | ' | ' | ' | ' |
Dividend reinvestment | ' | 8 | 253 | ' | ' | ' |
Capital stock issued under employee benefit and stock plans, Shares | ' | 837 | ' | ' | ' | ' |
Capital stock issued under employee benefit and stock plans | ' | 1,047 | 31,649 | ' | ' | ' |
Purchase of capital stock, Shares | ' | -3,086 | ' | ' | ' | ' |
Purchase of capital stock | ' | -3,858 | -117,550 | ' | ' | ' |
Sale of subsidiary stock to noncontrolling interests | 2,065 | ' | 12,515 | ' | 2,065 | 7,727 |
Net income | 206,916 | ' | ' | 203,265 | ' | 3,651 |
Cash dividends paid | ' | ' | ' | -51,011 | ' | -4,253 |
Unrealized loss on derivatives designated and qualified as cash flow hedges, net of tax | -611 | ' | ' | ' | -611 | ' |
Reclassification of unrealized loss (gain) on expired derivatives designated and qualified as cash flow hedges, net of tax | -1,377 | ' | ' | ' | 1,377 | ' |
Unrecognized net pension and other postretirement benefit (loss) gain, net of tax | 39,376 | ' | ' | ' | 39,376 | ' |
Reclassification of net pension and other postretirement benefit loss, net of tax | -9,679 | ' | ' | ' | 9,679 | ' |
Foreign currency translation adjustments, net of tax | 9,223 | ' | ' | ' | 9,772 | ' |
Other comprehensive income (loss), net of tax | ' | ' | ' | ' | 59,593 | -550 |
Purchase of noncontrolling interests | ' | ' | ' | ' | ' | -479 |
Acquisition by noncontrolling interests | ' | ' | ' | ' | ' | 0 |
Ending Balance at Jun. 30, 2013 | 1,812,293 | 97,303 | 374,300 | 1,399,227 | -89,004 | 30,467 |
Ending Balance, Shares at Jun. 30, 2013 | ' | 77,842 | ' | ' | ' | ' |
Dividend reinvestment, Shares | ' | 7 | ' | ' | ' | ' |
Dividend reinvestment | ' | 9 | 319 | ' | ' | ' |
Capital stock issued under employee benefit and stock plans, Shares | ' | 1,155 | ' | ' | ' | ' |
Capital stock issued under employee benefit and stock plans | ' | 1,443 | 35,019 | ' | ' | ' |
Purchase of capital stock, Shares | ' | -332 | ' | ' | ' | ' |
Purchase of capital stock | ' | -415 | -13,748 | ' | ' | ' |
Sale of subsidiary stock to noncontrolling interests | ' | ' | 0 | ' | 0 | 0 |
Net income | 162,198 | ' | ' | 158,366 | ' | 3,832 |
Cash dividends paid | ' | ' | ' | -56,436 | ' | -2,313 |
Unrealized loss on derivatives designated and qualified as cash flow hedges, net of tax | -706 | ' | ' | ' | -706 | ' |
Reclassification of unrealized loss (gain) on expired derivatives designated and qualified as cash flow hedges, net of tax | -1,987 | ' | ' | ' | 1,987 | ' |
Unrecognized net pension and other postretirement benefit (loss) gain, net of tax | -11,990 | ' | ' | ' | -11,990 | ' |
Reclassification of net pension and other postretirement benefit loss, net of tax | -2,184 | ' | ' | ' | 2,184 | ' |
Foreign currency translation adjustments, net of tax | 31,763 | ' | ' | ' | 31,398 | ' |
Other comprehensive income (loss), net of tax | ' | ' | ' | ' | 22,873 | 366 |
Purchase of noncontrolling interests | ' | ' | ' | ' | ' | 0 |
Acquisition by noncontrolling interests | ' | ' | ' | ' | ' | 0 |
Ending Balance at Jun. 30, 2014 | $1,961,608 | $98,340 | $395,890 | $1,501,157 | ($66,131) | $32,352 |
Ending Balance, Shares at Jun. 30, 2014 | ' | 78,672 | ' | ' | ' | ' |
Nature_of_operations
Nature of operations | 12 Months Ended |
Jun. 30, 2014 | |
Nature of operations [Abstract] | ' |
Nature of Operations [Text Block] | ' |
NATURE OF OPERATIONS | |
Kennametal Inc. delivers productivity solutions to customers seeking peak performance in demanding environments. We provide innovative wear-resistant products, application engineering and services backed by advanced material science serving customers across diverse sectors of industrial production, transportation, earthworks, energy, infrastructure and aerospace. Our solutions are built around industry-essential technology platforms, including precision-engineered metalworking tools and components, surface technologies and earth cutting tools that are mission-critical to customer operations battling extreme conditions associated with wear fatigue, corrosion and high temperatures. The Company's reputation for material and industrial technology excellence, as well as expertise and innovation in development of custom solutions and services, contributes to our leading position in our primary industrial and infrastructure markets. End users of our products include manufacturers, metalworking suppliers, machinery operators and processors engaged in a diverse array of industries, including the manufacture of transportation vehicles and systems; machine tool, light machinery and heavy machinery industries; airframe and aerospace components and systems, defense; as well as producers and suppliers in equipment-intensive operations such as coal mining, road construction, quarrying, oil and gas exploration, refining, production and supply. | |
Our product offering includes a wide selection of standard and customized technologies for metalworking, such as sophisticated metal cutting tools, tooling systems and services, as well as advanced, high-performance materials, such as cemented tungsten carbide products, super alloys, coatings and investment castings to address customer demands. We offer these products through a variety of channels to meet customer-specified needs. We are a leading global supplier of tooling, engineered components and advanced materials consumed in production processes. We believe we are one of the largest global providers of consumable metal cutting tools and tooling supplies. | |
We specialize in developing and manufacturing metalworking tools and wear-resistant engineered components and coatings using a specialized type of powder metallurgy. Our metalworking tools are made of cemented tungsten carbides, ceramics, cermets and super-hard materials. We also manufacture and market a complete line of tool holders, tool-holding systems and rotary-cutting tools by machining and fabricating steel bars and other metal alloys. In addition, we produce specialized compacts and metallurgical powders, as well as products made from tungsten carbide or other hard materials that are used for custom-engineered and challenging applications, including mining and highway construction, among others. Further, we develop, manufacture and market engineered components and surface technology solutions with proprietary metal cladding capabilities, as well as process technology and materials that focus on component deburring, polishing and effecting controlled radii. | |
Unless otherwise specified, any reference to a “year” is to a fiscal year ended June 30. When used in this annual report on Form 10-K, unless the context requires otherwise, the terms “we,” “our” and “us” refer to Kennametal Inc. and its subsidiaries. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | |||||||||||||||||
Significant Accounting Policies [Text Block] | ' | |||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||
The summary of our significant accounting policies is presented below to assist in evaluating our consolidated financial statements. | ||||||||||||||||||
PRINCIPLES OF CONSOLIDATION The consolidated financial statements include our accounts and those of our majority-owned subsidiaries. All significant intercompany balances and transactions are eliminated. Investments in entities of less than 50 percent of the voting stock over which we have significant influence are accounted for on an equity basis. The factors used to determine significant influence include, but are not limited to, our management involvement in the investee, such as hiring and setting compensation for management of the investee, the ability to make operating and capital decisions of the investee, representation on the investee’s board of directors and purchase and supply agreements with the investee. Investments in entities of less than 50 percent of the voting stock in which we do not have significant influence are accounted for on the cost basis. | ||||||||||||||||||
USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS In preparing our consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP), we make judgments and estimates about the amounts reflected in our financial statements. As part of our financial reporting process, our management collaborates to determine the necessary information on which to base our judgments and develop estimates used to prepare the financial statements. We use historical experience and available information to make these judgments and estimates. However, different amounts could be reported using different assumptions and in light of different facts and circumstances. Therefore, actual amounts could differ from the estimates reflected in our financial statements. | ||||||||||||||||||
CASH AND CASH EQUIVALENTS Cash investments having original maturities of three months or less are considered cash equivalents. Cash equivalents principally consist of investments in money market funds and bank deposits at June 30, 2014. | ||||||||||||||||||
ACCOUNTS RECEIVABLE We market our products to a diverse customer base throughout the world. Trade credit is extended based upon periodically updated evaluations of each customer’s ability to satisfy its obligations. We make judgments as to our ability to collect outstanding receivables and provide allowances for the portion of receivables when collection becomes doubtful. Accounts receivable reserves are determined based upon an aging of accounts and a review of specific accounts. | ||||||||||||||||||
INVENTORIES Inventories are stated at the lower of cost or market. We use the last-in, first-out (LIFO) method for determining the cost of a significant portion of our United States (U.S.) inventories. The cost of the remainder of our inventories is determined under the first-in, first-out or average cost methods. When market conditions indicate an excess of carrying costs over market value, a lower-of-cost-or-market provision is recorded. Excess and obsolete inventory reserves are established based upon our evaluation of the quantity of inventory on hand relative to demand. The excess and obsolete inventory reserve at June 30, 2014 and 2013 was $52.7 million and $52.7 million, respectively. | ||||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are carried at cost. Major improvements are capitalized, while maintenance and repairs are expensed as incurred. Retirements and disposals are removed from cost and accumulated depreciation accounts, with the gain or loss reflected in operating income. Interest related to the construction of major facilities is capitalized as part of the construction costs and is depreciated over the facilities estimated useful life. | ||||||||||||||||||
Depreciation for financial reporting purposes is computed using the straight-line method over the following estimated useful lives: building and improvements over 15-40 years; machinery and equipment over 4-15 years; furniture and fixtures over 5-10 years and computer hardware and software over 3-5 years. | ||||||||||||||||||
Leased property and equipment under capital leases are depreciated using the straight-line method over the terms of the related leases. | ||||||||||||||||||
LONG-LIVED ASSETS We evaluate the recoverability of property, plant and equipment and intangible assets that are amortized, whenever events or changes in circumstances indicate the carrying amount of any such assets may not be fully recoverable. Changes in circumstances include technological advances, changes in our business model, capital structure, economic conditions or operating performance. Our evaluation is based upon, among other things, our assumptions about the estimated future undiscounted cash flows these assets are expected to generate. When the sum of the undiscounted cash flows is less than the carrying value of the asset or asset group, we will recognize an impairment loss to the extent that carrying value exceeds fair value. We apply our best judgment when performing these evaluations to determine if a triggering event has occurred, the undiscounted cash flows used to assess recoverability and the fair value of the asset. | ||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill represents the excess of cost over the fair value of the net assets of acquired companies. Goodwill and other intangible assets with indefinite lives are tested at least annually for impairment. We perform our annual impairment tests during the June quarter in connection with our annual planning process, unless there are impairment indicators that warrant a test prior to that. | ||||||||||||||||||
A summary of the carrying amount of goodwill attributable to each segment, as well as the changes in such, is as follows: | ||||||||||||||||||
(in thousands) | Industrial | Infrastructure | Total | |||||||||||||||
Goodwill | $ | 407,610 | $ | 462,582 | $ | 870,192 | ||||||||||||
Accumulated impairment losses | (150,842 | ) | — | (150,842 | ) | |||||||||||||
Balance as of June 30, 2012 | $ | 256,768 | $ | 462,582 | $ | 719,350 | ||||||||||||
Translation | 1,315 | 1,090 | 2,405 | |||||||||||||||
Change in goodwill | 1,315 | 1,090 | 2,405 | |||||||||||||||
Goodwill | 408,925 | 463,672 | 872,597 | |||||||||||||||
Accumulated impairment losses | (150,842 | ) | — | (150,842 | ) | |||||||||||||
Balance as of June 30, 2013 | $ | 258,083 | $ | 463,672 | $ | 721,755 | ||||||||||||
Acquisition | $ | 60,100 | $ | 183,477 | $ | 243,577 | ||||||||||||
Translation | 3,312 | 6,932 | 10,244 | |||||||||||||||
Change in goodwill | 63,412 | 190,409 | 253,821 | |||||||||||||||
Goodwill | 472,337 | 654,081 | 1,126,418 | |||||||||||||||
Accumulated impairment losses | (150,842 | ) | — | (150,842 | ) | |||||||||||||
Balance as of June 30, 2014 | $ | 321,495 | $ | 654,081 | $ | 975,576 | ||||||||||||
We recorded no goodwill or other intangible asset impairments in 2014, 2013 and 2012. | ||||||||||||||||||
The Company is currently exploring strategic alternatives for a portion of its Infrastructure business, which has an estimated net book value of approximately $39.0 million as of June 30, 2014. As the strategic direction has not yet been determined, the Company cannot determine if an impairment loss is either probable or estimable. | ||||||||||||||||||
The components of our other intangible assets were as follows: | ||||||||||||||||||
Estimated | 30-Jun-14 | 30-Jun-13 | ||||||||||||||||
Useful Life | ||||||||||||||||||
(in thousands) | (in years) | Gross Carrying | Accumulated | Gross Carrying | Accumulated | |||||||||||||
Amount | Amortization | Amount | Amortization | |||||||||||||||
Contract-based | 3 to 15 | $ | 23,446 | $ | (10,820 | ) | $ | 21,450 | $ | (8,374 | ) | |||||||
Technology-based and other | 4 to 20 | 54,842 | (28,516 | ) | 38,005 | (26,006 | ) | |||||||||||
Customer-related | 10 to 21 | 285,751 | (76,376 | ) | 178,318 | (58,148 | ) | |||||||||||
Unpatented technology | 10 to 30 | 61,867 | (12,549 | ) | 45,972 | (9,761 | ) | |||||||||||
Trademarks | 5 to 20 | 19,256 | (10,984 | ) | 14,055 | (9,151 | ) | |||||||||||
Trademarks | Indefinite | 37,259 | — | 36,405 | — | |||||||||||||
Total | $ | 482,421 | $ | (139,245 | ) | $ | 334,205 | $ | (111,440 | ) | ||||||||
On November 4, 2013, we acquired the Tungsten Materials Business (TMB) from Allegheny Technologies Incorporated (ATI), the operations of which are included in both the Industrial and Infrastructure segments. As a result of the acquisition, we increased goodwill by $243.6 million and other intangible assets by $127.3 million based on our purchase price allocations. In the Infrastructure segment we recorded customer-related intangible assets of $102.0 million with an estimated useful life of 18 years to 21 years, technology-based and other intangibles of $13.1 million with an estimate useful life of 10 years to 13 years, trademarks of $2.7 million with an estimated useful life of 10 years and contract-based intangibles of $1.6 million with an estimated useful life of 3 years. In the Industrial segment we recorded customer-related intangible assets of $2.9 million with an estimated useful life of 10 years, trademarks of $2.5 million with an estimated useful life of 10 years, unpatented technology of $2.3 million with an estimated useful life of 10 years and technology-based an other intangibles of $0.2 million with an estimated useful life of 5 years. These other intangible assets will be amortized over their respective estimated useful lives. | ||||||||||||||||||
In the Infrastructure and Industrial segments we recorded $183.5 million and $60.1 million of goodwill, respectively, related to the TMB acquisition. The goodwill recorded relates to operating synergies associated with the acquisition that we expected to realize. Goodwill of $202.1 million was deductible for tax purposes. | ||||||||||||||||||
On August 1, 2013, we acquired the operating assets of Comercializadora Emura S.R.L. and certain related entities (Emura), in our Infrastructure segment. As a result of the acquisition we increased other intangible assets by $16.4 million based on our purchase price allocations. We recorded supplier relationship intangible assets in technology-based and other of $15.9 million with an estimated useful life of 20 years, contract-based intangibles of $0.4 million with an estimated useful life of 3 years and trademarks of $0.1 million with an estimated useful life of 20 years. These intangible assets will be amortized over their respective estimated useful lives. | ||||||||||||||||||
We recorded currency translation adjustments which increased intangible assets by $3.0 million in 2014 and decreased intangible assets by $0.2 million in 2013. | ||||||||||||||||||
Amortization expense for intangible assets was $26.2 million, $20.8 million and $16.4 million for 2014, 2013 and 2012, respectively. Estimated amortization expense for 2015 through 2019 is $27.7 million, $27.3 million, $25.4 million, $23.5 million, and $22.7 million, respectively. | ||||||||||||||||||
PENSION AND OTHER POSTRETIREMENT BENEFITS We sponsor these types of benefit plans for certain employees and retirees. Accounting for the cost of these plans requires the estimation of the cost of the benefits to be provided well into the future and attributing that cost over the expected work life of employees participating in these plans. This estimation requires our judgment about the discount rate used to determine these obligations, expected return on plan assets, rate of future compensation increases, rate of future health care costs, withdrawal and mortality rates and participant retirement age. Differences between our estimates and actual results may significantly affect the cost of our obligations under these plans. | ||||||||||||||||||
In the valuation of our pension and other postretirement benefit liabilities, management utilizes various assumptions. Discount rates are derived by identifying a theoretical settlement portfolio of high quality corporate bonds sufficient to provide for a plan’s projected benefit payments. This rate can fluctuate based on changes in the corporate bond yields. | ||||||||||||||||||
The long-term rate of return on plan assets is estimated based on an evaluation of historical returns for each asset category held by the plans, coupled with the current and short-term mix of the investment portfolio. The historical returns are adjusted for expected future market and economic changes. This return will fluctuate based on actual market returns and other economic factors. | ||||||||||||||||||
The rate of future health care costs is based on historical claims and enrollment information projected over the next year and adjusted for administrative charges. This rate is expected to decrease until 2024. | ||||||||||||||||||
Future compensation rates, withdrawal rates and participant retirement age are determined based on historical information. These assumptions are not expected to significantly change. Mortality rates are determined based on a review of published mortality tables. | ||||||||||||||||||
EARNINGS PER SHARE Basic earnings per share is computed using the weighted average number of shares outstanding during the period, while diluted earnings per share is calculated to reflect the potential dilution that occurs related to the issuance of capital stock under stock option grants, restricted stock awards and restricted stock units. The difference between basic and diluted earnings per share relates solely to the effect of capital stock options, restricted stock awards and restricted stock units. | ||||||||||||||||||
For purposes of determining the number of diluted shares outstanding at June 30, 2014, 2013 and 2012, weighted average shares outstanding for basic earnings per share calculations were increased due solely to the dilutive effect of unexercised capital stock options, unvested restricted stock awards and unvested restricted stock units by 1.0 million, 1.1 million and 1.2 million shares, respectively. Unexercised capital stock options, restricted stock units and restricted stock awards of 0.3 million, 1.0 million and 0.7 million shares at June 30, 2014, 2013 and 2012, respectively, were not included in the computation of diluted earnings per share because the option exercise price was greater than the average market price, and therefore the inclusion would have been anti-dilutive. | ||||||||||||||||||
REVENUE RECOGNITION We recognize revenue upon shipment of our products and assembled machines. Our general conditions of sale explicitly state that the delivery of our products and assembled machines is freight on board shipping point and that title and all risks of loss and damage pass to the buyer upon delivery of the sold products or assembled machines to the common carrier. | ||||||||||||||||||
Our general conditions of sale explicitly state that acceptance of the conditions of shipment are considered to have occurred unless written notice of objection is received by Kennametal within 10 calendar days of the date specified on the invoice. We do not ship products or assembled machines unless we have documentation from our customers authorizing shipment. Our products are consumed by our customers in the manufacture of their products. Historically, we have experienced very low levels of returned products and assembled machines and do not consider the effect of returned products and assembled machines to be material. We have recorded an estimated returned goods allowance to provide for any potential returns. | ||||||||||||||||||
We warrant that products and services sold are free from defects in material and workmanship under normal use and service when correctly installed, used and maintained. This warranty terminates 30 days after delivery of the product to the customer and does not apply to products that have been subjected to misuse, abuse, neglect or improper storage, handling or maintenance. Products may be returned to Kennametal, only after inspection and approval by Kennametal and upon receipt by the customer of shipping instructions from Kennametal. We have included an estimated allowance for warranty returns in our returned goods allowance. | ||||||||||||||||||
We recognize revenue related to the sale of specialized assembled machines upon customer acceptance and installation, as installation is deemed essential to the functionality of a specialized assembled machine. Sales of specialized assembled machines were immaterial for 2014, 2013 and 2012. | ||||||||||||||||||
STOCK-BASED COMPENSATION We recognize stock-based compensation expense for all stock options, restricted stock awards and restricted stock units over the period from the date of grant to the date when the award is no longer contingent on the employee providing additional service (substantive vesting period). We utilize the Black-Scholes valuation method to establish the fair value of all stock option awards. | ||||||||||||||||||
Capital stock options are granted to eligible employees at fair market value at the date of grant. Capital stock options are exercisable under specified conditions for up to 10 years from the date of grant. At the 2013 Annual Meeting of Shareowners, the Kennametal Inc. Stock and Incentive Plan of 2010, as Amended and Restated on October 22, 2013 (A/R 2010 Plan) was approved. The A/R 2010 Plan authorizes the issuance of up to 9,500,000 shares of the Company’s capital stock plus any shares remaining unissued under the Kennametal Inc. Stock and Incentive Plan of 2002, as amended (2002 Plan). Under the provisions of the A/R 2010 Plan participants may deliver stock, owned by the holder for at least six months, in payment of the option price and receive credit for the fair market value of the shares on the date of delivery. The fair market value of shares delivered during 2014, 2013 and 2012 were $0.5 million, $0.1 million and $0.4 million, respectively. In addition to stock option grants, the A/R 2010 Plan permits the award of stock appreciation rights, performance share awards, performance unit awards, restricted stock awards, restricted unit awards and share awards to directors, officers and key employees. | ||||||||||||||||||
RESEARCH AND DEVELOPMENT COSTS Research and development costs of $44.0 million, $39.7 million and $38.3 million in 2014, 2013 and 2012, respectively, were expensed as incurred. These costs are included in operating expense in the consolidated statements of income. | ||||||||||||||||||
SHIPPING AND HANDLING FEES AND COSTS All fees billed to customers for shipping and handling are classified as a component of sales. All costs associated with shipping and handling are classified as a component of cost of goods sold. | ||||||||||||||||||
INCOME TAXES Deferred income taxes are recognized based on the future income tax effects (using enacted tax laws and rates) of differences in the carrying amounts of assets and liabilities for financial reporting and tax purposes. A valuation allowance is recognized if it is “more likely than not” that some or all of a deferred tax asset will not be realized. | ||||||||||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES As part of our financial risk management program, we use certain derivative financial instruments. We do not enter into derivative transactions for speculative purposes and, therefore, hold no derivative instruments for trading purposes. We use derivative financial instruments to provide predictability to the effects of changes in foreign exchange rates on our consolidated results, achieve our targeted mix of fixed and floating interest rates on outstanding debt. Our objective in managing foreign exchange exposures with derivative instruments is to reduce volatility in cash flow, allowing us to focus more of our attention on business operations. With respect to interest rate management, these derivative instruments allow us to achieve our targeted fixed-to-floating interest rate mix, as a separate decision from funding arrangements, in the bank and public debt markets. | ||||||||||||||||||
We account for derivative instruments as a hedge of the related asset, liability, firm commitment or anticipated transaction, when the derivative is specifically designated as a hedge of such items. We measure hedge effectiveness by assessing the changes in the fair value or expected future cash flows of the hedged item. The ineffective portions are recorded in other expense (income), net. Certain currency forward contracts hedging significant cross-border intercompany loans are considered other derivatives and, therefore, do not qualify for hedge accounting. These contracts are recorded at fair value in the balance sheet, with the offset to other expense (income), net. | ||||||||||||||||||
CASH FLOW HEDGES Currency Forward contracts and range forward contracts (a transaction where both a put option is purchased and a call option is sold) are designated as cash flow hedges and hedge anticipated cash flows from cross-border intercompany sales of products and services. Gains and losses realized on these contracts at maturity are recorded in accumulated other comprehensive (loss) income, and are recognized as a component of other expense (income), net when the underlying sale of products or services is recognized into earnings. | ||||||||||||||||||
Interest Rate Floating-to-fixed interest rate swap contracts, designated as cash flow hedges, are entered into from time to time to hedge our exposure to interest rate changes on a portion of our floating rate debt. These interest rate swap contracts convert a portion of our floating rate debt to fixed rate debt. We record the fair value of these contracts as an asset or a liability, as applicable, in the balance sheet, with the offset to accumulated other comprehensive (loss) income. | ||||||||||||||||||
FAIR VALUE HEDGES Interest Rate Fixed-to-floating interest rate swap contracts, designated as fair value hedges, are entered into from time to time to hedge our exposure to fair value fluctuations on a portion of our fixed rate debt. These interest rate swap contracts convert a portion of our fixed rate debt to floating rate debt. When in place, these contracts require periodic settlement, and the difference between amounts to be received and paid under the contracts is recognized in interest expense. | ||||||||||||||||||
CURRENCY TRANSLATION Assets and liabilities of international operations are translated into U.S. dollars using year-end exchange rates, while revenues and expenses are translated at average exchange rates throughout the year. The resulting net translation adjustments are recorded as a component of accumulated other comprehensive (loss) income. The local currency is the functional currency of most of our locations. Losses from currency transactions included in other expense (income), net were $2.5 million, $4.5 million and $2.6 million for 2014, 2013 and 2012, respectively. | ||||||||||||||||||
NEW ACCOUNTING STANDARDS | ||||||||||||||||||
Adopted | ||||||||||||||||||
As of July 1, 2013, Kennametal adopted disclosure requirements related to reclassifications out of accumulated other comprehensive income by component. See Note 13 to these consolidated financial statements for required disclosures. Other than the change in disclosures, the adoption of this guidance had no impact on the consolidated financial statements. | ||||||||||||||||||
As of July 1, 2013, Kennametal adopted additional guidance on testing indefinite lived intangible assets for impairment. The guidance permits an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of an indefinite lived intangible asset is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step impairment test. The adoption of this guidance had no impact on the consolidated financial statements. | ||||||||||||||||||
Issued | ||||||||||||||||||
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers: Topic 606”. This ASU replaces nearly all existing U.S. GAAP guidance on revenue recognition. The standard prescribes a five-step model for recognizing revenue, the application of which will require significant judgment. This standard is effective for Kennametal July 1, 2017. We are in the process of assessing the impact the adoption of this ASU will have on its consolidated financial statements. | ||||||||||||||||||
In April 2014, the FASB issued an ASU that changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. Under the new guidance, a discontinued operation is defined as a disposal of a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has or will have a major effect on an entity's operations and financial results. This standard is effective for Kennametal July 1, 2015. The guidance applies prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. The ASU is not expected to have a material effect. | ||||||||||||||||||
In July 2013, the FASB issued new guidance on the presentation in the financial statements of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The guidance takes into account these losses and carryfowards as well as the intended or likelihood of use of the unrecognized tax benefit in determining the balance sheet classification as an asset or liability. This guidance is effective for Kennametal beginning July 1, 2014 and will not have a material impact. |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Supplemental Cash Flow Elements [Abstract] | ' | |||||||||||
SUPPLEMENTAL CASH FLOW DISCLOSURES | ' | |||||||||||
SUPPLEMENTAL CASH FLOW DISCLOSURES | ||||||||||||
Year ended June 30 (in thousands) | 2014 | 2013 | 2012 | |||||||||
Cash paid during the period for: | ||||||||||||
Interest | $ | 29,836 | $ | 24,432 | $ | 27,395 | ||||||
Income taxes | 49,393 | 51,098 | 55,728 | |||||||||
Supplemental disclosure of non-cash information: | ||||||||||||
Changes in accounts payable related to purchases of property, plant and equipment | 2,100 | (8,600 | ) | — | ||||||||
Acquisition
Acquisition | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Business Combinations [Abstract] | ' | |||||||
ACQUISITION | ' | |||||||
ACQUISITIONS | ||||||||
TMB | ||||||||
On November 4, 2013, the Company completed its transaction to acquire TMB from ATI which included all of the assets of TDY Industries, LLC, a wholly owned subsidiary of ATI, used or held for use by TDY in connection with the business; and all of the shares of TDY Limited and ATI Holdings SAS, both wholly-owned subsidiaries of ATI, for a purchase price of $607.0 million, net of cash acquired. We funded the acquisition primarily through a combination of cash from operations and available borrowings under our existing credit facility. | ||||||||
TMB, is a leading producer of tungsten metallurgical powders, as well as tooling technologies and components. The business has approximately 1,175 employees in 12 locations primarily in the United States of America, and 6 other countries. The acquisition aligns with the Company's long-term growth strategies, expands presence in aerospace and energy end markets, further augments the Company's tooling portfolio and accelerates our metallurgical strategy including planned tungsten carbide recycling and production. | ||||||||
As part of the acquisition of TMB, Kennametal incurred $8.7 million for the year ended June 30, 2014 of acquisition-related costs, which are included in operating expense and cost of goods sold. | ||||||||
Purchase Price Allocation | ||||||||
In accordance with the accounting guidance for business combinations, the TMB acquisition was accounted for under the acquisition method of accounting and accordingly, the purchase price has been allocated to the assets acquired and liabilities assumed based on estimated fair values at the date of acquisition. The consolidated balance sheet as of June 30, 2014 reflects the allocation of the purchase price. | ||||||||
The allocation of the total purchase price to the fair values of the assets acquired and liabilities assumed as of June 30, 2014 is as follows: | ||||||||
(in thousands) | Total | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 1,294 | ||||||
Accounts receivable | 41,164 | |||||||
Inventories | 100,453 | |||||||
Other current assets | 4,014 | |||||||
Total current assets | 146,925 | |||||||
Property, plant and equipment | 127,838 | |||||||
Goodwill | 243,577 | |||||||
Other intangible assets | 127,300 | |||||||
Deferred income taxes | 6,978 | |||||||
Other | 603 | |||||||
Total assets | $ | 653,221 | ||||||
LIABILITIES | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 22,790 | ||||||
Accrued payroll | 3,401 | |||||||
Accrued expenses | 5,434 | |||||||
Total current liabilities | 31,625 | |||||||
Deferred income taxes | 4,585 | |||||||
Other long-term liabilities | 8,781 | |||||||
Total liabilities | 44,991 | |||||||
Net assets acquired | $ | 608,230 | ||||||
In connection with this acquisition, we identified and valued certain intangible assets, including existing customer relationships, technologies, trademarks and contract-based intangibles, as discussed in Note 2. The goodwill recorded of $243.6 million is attributable to the operating synergies associated with the acquisition that we expected to realize, as discussed in Note 2. | ||||||||
Solely as a result of uncertainty related to potential adjustments to the purchase consideration with the seller, which adjustments, if any, are not expected to be material, the preliminary purchase price allocation is not finalized as of June 30, 2014. | ||||||||
The operating results for the year ended June 30, 2014 include net sales of $194.9 million and net loss attributable to Kennametal of $10.5 million related to TMB. | ||||||||
Unaudited Pro Forma Financial Information | ||||||||
The following unaudited pro forma summary of operating results presents the consolidated results of operations as if the TMB acquisition had occurred on July 1, 2012. These amounts were calculated after applying our accounting policies and adjusting TMB’s results to reflect increased depreciation and amortization expense resulting from recording fixed assets and intangible assets at fair value, as well as increased cost of sales resulting from recording inventory at fair value. The pro forma results for the year ended June 30, 2014 excludes $8.7 million of acquisition-related and includes $19.1 million of restructuring-related pre-tax costs. The pro forma results for the year ended June 30, 2013 includes $8.7 million of integration-related pre-tax costs. The pro forma results have been presented for comparative purposes only, include no expected sales or cost synergies and are not indicative of future results of operations or what would have occurred had the acquisition been made on July 1, 2012. | ||||||||
Unaudited pro forma summary of operating results of Kennametal, assuming the acquisition had occurred as of July 1, 2012, are as follows: | ||||||||
Year ended June 30 (in thousands) | 2014 | 2013 | ||||||
Pro forma (unaudited): | ||||||||
Net Sales | $ | 2,941,005 | $ | 2,902,160 | ||||
Net income attributable to Kennametal | $ | 175,804 | $ | 190,863 | ||||
Per share data attributable to Kennametal Shareowners : | ||||||||
Basic earnings per share | $ | 2.23 | $ | 2.4 | ||||
Diluted earnings per share | $ | 2.21 | $ | 2.37 | ||||
Emura | ||||||||
On August 1, 2013, the Company acquired the operating assets of Comercializadora Emura S.R.L. and certain related entities (Emura), based in La Paz, Bolivia, and secured related material sourcing agreements for a purchase price of $40.1 million, of which $25.6 million was paid in fiscal year 2014 and $0.5 million was paid in fiscal year 2013, and $14.0 million of contingent consideration, as discussed in Note 5. Emura's principal operations is engaged in collecting, testing, processing and exporting tungsten ore material, and was a long-standing supplier to Kennametal. The addition of Emura enhances the Company's strategic tungsten sourcing capabilities to serve growth globally. | ||||||||
Other | ||||||||
On September 30, 2013, the Company completed a small acquisition in the Infrastructure segment for $2.0 million. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy consists of three levels to prioritize the inputs used in valuations, as defined below: | ||||||||||||||||
Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | ||||||||||||||||
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. | ||||||||||||||||
Level 3: Inputs that are unobservable. | ||||||||||||||||
As of June 30, 2014, the fair values of the Company’s financial assets and financial liabilities measured at fair value on a recurring basis are categorized as follows: | ||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | ||||||||||||||||
Derivatives (1) | $ | — | $ | 253 | $ | — | $ | 253 | ||||||||
Total assets at fair value | $ | — | $ | 253 | $ | — | $ | 253 | ||||||||
Liabilities: | ||||||||||||||||
Derivatives (1) | $ | — | $ | 1,053 | $ | — | $ | 1,053 | ||||||||
Contingent considerations | — | — | 14,000 | 14,000 | ||||||||||||
Total liabilities at fair value | $ | — | $ | 1,053 | $ | 14,000 | $ | 15,053 | ||||||||
The fair value of contingent consideration payable that was classified as Level 3 relates to our probability assessments of expected future milestone targets, primarily associated with product delivery, related to the Emura acquisition. The contingent consideration is to be paid over the next 3 years. During the current year the Company reassessed this contingent consideration and determined that no adjustment to the fair value was deemed necessary and that no changes in the expected outcome have occurred during the year ended June 30, 2014. | ||||||||||||||||
As of June 30, 2013, the fair value of the Company’s financial assets and financial liabilities measured at fair value on a recurring basis are categorized as follows: | ||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | ||||||||||||||||
Derivatives (1) | $ | — | $ | 775 | $ | — | $ | 775 | ||||||||
Total assets at fair value | $ | — | $ | 775 | $ | — | $ | 775 | ||||||||
Liabilities: | ||||||||||||||||
Derivatives (1) | $ | — | $ | 530 | $ | — | $ | 530 | ||||||||
Total liabilities at fair value | $ | — | $ | 530 | $ | — | $ | 530 | ||||||||
(1) Currency derivatives are valued based on observable market spot and forward rates and are classified within Level 2 of the fair value hierarchy. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ' | |||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||||||
As part of our financial risk management program, we use certain derivative financial instruments. See Note 2 for discussion on our derivative instruments and hedging activities policy. | ||||||||||||
The fair value of derivatives designated and not designated as hedging instruments in the consolidated balance sheet are as follows: | ||||||||||||
(in thousands) | 2014 | 2013 | ||||||||||
Derivatives designated as hedging instruments | ||||||||||||
Other current assets - range forward contracts | $ | 184 | $ | 658 | ||||||||
Other current liabilities - range forward contracts | (6 | ) | (522 | ) | ||||||||
Other assets - range forward contracts | 42 | 69 | ||||||||||
Total derivatives designated as hedging instruments | 220 | 205 | ||||||||||
Derivatives not designated as hedging instruments | ||||||||||||
Other current assets - currency forward contracts | 27 | 48 | ||||||||||
Other current liabilities - currency forward contracts | (1,047 | ) | (8 | ) | ||||||||
Total derivatives not designated as hedging instruments | (1,020 | ) | 40 | |||||||||
Total derivatives | $ | (800 | ) | $ | 245 | |||||||
Certain currency forward contracts that hedge significant cross-border intercompany loans are considered as other derivatives and therefore do not qualify for hedge accounting. These contracts are recorded at fair value in the consolidated balance sheet, with the offset to other expense (income), net. Losses (gains) related to derivatives not designated as hedging instruments have been recognized as follows: | ||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||
Other expense (income), net - currency forward contracts | $ | 1,057 | $ | 1,210 | $ | (1,149 | ) | |||||
FAIR VALUE HEDGES | ||||||||||||
Fixed-to-floating interest rate swap contracts, designated as fair value hedges, are entered into from time to time to hedge our exposure to fair value fluctuations on a portion of our fixed rate debt. We had no such contracts outstanding at June 30, 2014 and June 30, 2013. | ||||||||||||
In February 2009 we terminated interest rate swap contracts to convert $200.0 million of our fixed rate debt to floating rate debt. These contracts were originally set to mature in June 2012. This gain was amortized as a component of interest expense over the remaining term of the related debt using the effective interest rate method. The gain was fully amortized as of June 30, 2012. During the year ended June 30, 2012, $5.9 million was recognized as a reduction in interest expense. | ||||||||||||
CASH FLOW HEDGES | ||||||||||||
Currency forward contracts and range forward contracts (a transaction where both a put option is purchased and a call option is sold) are designated as cash flow hedges and hedge anticipated cash flows from cross-border intercompany sales of products and services. Gains and losses realized on these contracts at maturity are recorded in accumulated other comprehensive (loss) income, and are recognized as a component of other expense (income), net when the underlying sale of products or services is recognized into earnings. The notional amount of the contracts translated into U.S. dollars at June 30, 2014 and 2013 was $91.1 million and $102.2 million, respectively. The time value component of the fair value of range forward contracts is excluded from the assessment of hedge effectiveness. Assuming the market rates remain constant with the rates at June 30, 2014, we expect to recognize into earnings in the next 12 months $0.1 million of losses on outstanding derivatives. | ||||||||||||
Floating-to-fixed interest rate swap contracts, designated as cash flow hedges, are entered into from time to time to hedge our exposure to interest rate changes on a portion of our floating rate debt. These interest rate swap contracts convert a portion of our floating rate debt to fixed rate debt. We record the fair value of these contracts as an asset or a liability, as applicable, in the balance sheet, with the offset to accumulated other comprehensive (loss) income, net of tax. We had no such contracts outstanding at June 30, 2014 or 2013, respectively. | ||||||||||||
In February 2012, we settled forward starting interest rate swap contracts to convert $150.0 million of our floating rate debt to fixed rate debt. Upon settlement, we made a cash payment of $22.4 million. The loss is being amortized as a component of interest expense over the term of the related debt using the effective interest rate method. During the year ended June 30, 2014 and 2013, $1.9 million and $1.9 million was recognized as interest expense, respectively. | ||||||||||||
The following represents losses related to cash flow hedges: | ||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||
Losses recognized in other comprehensive loss, net | $ | (702 | ) | $ | (611 | ) | $ | (11,165 | ) | |||
Losses reclassified from accumulated other comprehensive loss into other expense (income), net | $ | 1,399 | $ | 1,116 | $ | 270 | ||||||
No portion of the gains or losses recognized in earnings was due to ineffectiveness and no amounts were excluded from our effectiveness testing for the years ended June 30, 2014, 2013 and 2012. |
Inventories
Inventories | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
INVENTORIES | ' | |||||||
INVENTORIES | ||||||||
Inventories consisted of the following at June 30: | ||||||||
(in thousands) | 2014 | 2013 | ||||||
Finished goods | $ | 371,599 | $ | 303,307 | ||||
Work in process and powder blends | 308,129 | 244,180 | ||||||
Raw materials | 126,004 | 137,602 | ||||||
Inventories at current cost | 805,732 | 685,089 | ||||||
Less: LIFO valuation | (101,966 | ) | (106,294 | ) | ||||
Total inventories | $ | 703,766 | $ | 578,795 | ||||
We used the LIFO method of valuing inventories for approximately 43 percent and 52 percent of total inventories at June 30, 2014 and 2013, respectively. |
Other_Current_Liabilities
Other Current Liabilities | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Other Liabilities, Current [Abstract] | ' | ||||||||
Other Current Liabilities [Text Block] | ' | ||||||||
OTHER CURRENT LIABILITIES | |||||||||
Other current liabilities consisted of the following at June 30: | |||||||||
(in thousands) | 2014 | 2013 | |||||||
Accrued employee benefits | $ | 27,306 | $ | 21,663 | |||||
Payroll, state and local taxes | 16,401 | 14,885 | |||||||
Accrued restructuring (Note 14) | 9,002 | — | |||||||
Other | 106,194 | 88,199 | |||||||
Total other current liabilities | $ | 158,903 | $ | 124,747 | |||||
Long_Term_Debt_and_Capital_Lea
Long - Term Debt and Capital Leases | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
LONG-TERM DEBT AND CAPITAL LEASES | ' | |||||||
LONG-TERM DEBT AND CAPITAL LEASES | ||||||||
Long-term debt and capital lease obligations consisted of the following at June 30: | ||||||||
(in thousands) | 2014 | 2013 | ||||||
2.65% Senior Unsecured Notes due 2019 net of discount of $0.4 million for 2014 and $0.5 million for 2013 | $ | 399,595 | $ | 399,519 | ||||
3.875% Senior Unsecured Notes due 2022 net of discount of $0.3 million for 2014 and $0.3 million for 2013 | 299,720 | 299,683 | ||||||
Credit Agreement: | ||||||||
Euro-denominated borrowings, 1.1% to 1.3% in 2014, due 2018 | 200,112 | — | ||||||
U.S. Dollar-denominated borrowings, 1.2% in 2014 and 1.1% in 2013, due 2018 | 87,000 | 3,600 | ||||||
Capital leases with terms expiring through 2018 at 1.6% to 5.4% in 2014 and | 2,886 | 4,553 | ||||||
2.3% to 5.4% in 2013 | ||||||||
Other | 15 | 9 | ||||||
Total debt and capital leases | 989,328 | 707,364 | ||||||
Less current maturities: | ||||||||
Long-term debt | (7,512 | ) | (3,600 | ) | ||||
Capital leases | (135 | ) | (129 | ) | ||||
Other | (15 | ) | (9 | ) | ||||
Total current maturities | (7,662 | ) | (3,738 | ) | ||||
Long-term debt and capital leases, less current maturities | $ | 981,666 | $ | 703,626 | ||||
Senior Unsecured Notes On November 7, 2012, we issued $400.0 million of 2.65 percent Senior Unsecured Notes due in 2019. Interest is paid semi-annually on May 1 and November 1 of each year. We used the net proceeds from this notes offering to repay outstanding indebtedness under our credit facility and for general corporate purposes. On February 14, 2012, we issued $300 million of 3.875 percent Senior Unsecured Notes due in 2022. Interest is paid semi-annually on February 15 and August 15 of each year. We settled forward starting interest rate swap contracts related to this bond issuance as discussed in Note 6. We applied the net proceeds from this notes offering to the repayment of our 7.2 percent Senior Unsecured Notes at their June 15, 2012 maturity. | ||||||||
2011 Credit Agreement The five-year, multi-currency, revolving credit facility (2011 Credit Agreement) permits revolving credit loans of up to $600 million for working capital, capital expenditures and general corporate purposes. The 2011 Credit Agreement matures in April 2018 and allows for borrowings in U.S. dollars, euro, Canadian dollars, pound sterling and Japanese yen. Interest payable under the 2011 Credit Agreement is based upon the type of borrowing under the facility and may be (1) LIBOR plus an applicable margin, (2) the greater of the prime rate or the Federal Funds effective rate plus an applicable margin, or (3) fixed as negotiated by us. | ||||||||
The 2011 Credit Agreement requires us to comply with various restrictive and affirmative covenants, including two financial covenants: a maximum leverage ratio and a minimum consolidated interest coverage ratio (as those terms are defined in the agreement). We were in compliance with all covenants as of June 30, 2014. We had $287.1 million and $3.6 million of borrowings outstanding under the 2011 Credit Agreement as of June 30, 2014 and June 30, 2013, respectively. Borrowings under the 2011 Credit Agreement are guaranteed by our significant domestic subsidiaries. | ||||||||
Future principal maturities of long-term debt are $7.5 million in 2015 and $978.9 million beyond 2019. | ||||||||
Future minimum lease payments under capital leases for the next five years and thereafter in total are as follows: | ||||||||
(in thousands) | ||||||||
2015 | $ | 247 | ||||||
2016 | 2,080 | |||||||
2017 | 601 | |||||||
2018 | 199 | |||||||
2019 | — | |||||||
After 2020 | — | |||||||
Total future minimum lease payments | 3,127 | |||||||
Less amount representing interest | (241 | ) | ||||||
Amount recognized as capital lease obligations | $ | 2,886 | ||||||
At June 30, 2014 and 2013 our collateralized debt consisted of capitalized lease obligations of $2.9 million and $4.6 million, respectively. The underlying assets collateralize these obligations. |
Notes_Payable_and_Lines_of_Cre
Notes Payable and Lines of Credit | 12 Months Ended |
Jun. 30, 2014 | |
Notes Payable and Lines of Credit [Abstract] | ' |
Notes Payable and Lines of Credit | ' |
NOTES PAYABLE AND LINES OF CREDIT | |
Notes payable to banks of $72.5 million and $40.6 million at June 30, 2014 and 2013, respectively, represents short-term borrowings under credit lines with commercial banks. These credit lines, translated into U.S. dollars at June 30, 2014 exchange rates, totaled $215.7 million at June 30, 2014, of which $143.2 million was unused. The weighted average interest rate for notes payable and lines of credit was 1.5 percent and 2.1 percent at June 30, 2014 and 2013, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
INCOME TAXES | ' | |||||||||||
INCOME TAXES | ||||||||||||
Income before income taxes consisted of the following for the years ended June 30: | ||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||
Income before income taxes: | ||||||||||||
United States | $ | 59,160 | $ | 87,499 | $ | 95,410 | ||||||
International | 169,649 | 179,110 | 294,559 | |||||||||
Total income before income taxes | $ | 228,809 | $ | 266,609 | $ | 389,969 | ||||||
Current income taxes: | ||||||||||||
Federal | $ | 15,108 | $ | 10,645 | $ | 23,313 | ||||||
State | 896 | 3,441 | 2,275 | |||||||||
International | 27,488 | 45,375 | 24,946 | |||||||||
Total current income taxes | 43,492 | 59,461 | 50,534 | |||||||||
Deferred income taxes: | ||||||||||||
Federal | $ | 10,157 | $ | 12,951 | $ | 13,637 | ||||||
State | (62 | ) | 2,433 | 4,104 | ||||||||
International | 13,024 | (15,152 | ) | 10,861 | ||||||||
Total deferred income taxes: | 23,119 | 232 | 28,602 | |||||||||
Provision for income taxes | $ | 66,611 | $ | 59,693 | $ | 79,136 | ||||||
Effective tax rate | 29.1 | % | 22.4 | % | 20.3 | % | ||||||
The reconciliation of income taxes computed using the statutory U.S. income tax rate and the provision for income taxes was as follows for the years ended June 30: | ||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||
Income taxes at U.S. statutory rate | $ | 80,083 | $ | 93,313 | $ | 136,489 | ||||||
State income taxes, net of federal tax benefits | 1,593 | 4,051 | 4,110 | |||||||||
U.S. income taxes provided on international income | 2,423 | 3,067 | 8,164 | |||||||||
Combined tax effects of international income | (22,580 | ) | (30,692 | ) | (50,574 | ) | ||||||
Change in valuation allowance and other uncertain tax positions | (2,603 | ) | (4,550 | ) | (16,243 | ) | ||||||
Impact of domestic production activities deduction | (942 | ) | (3,546 | ) | (3,810 | ) | ||||||
Research and development credit | (1,385 | ) | (4,141 | ) | (1,515 | ) | ||||||
Change in indefinite reinvestment assertion | 7,170 | — | — | |||||||||
Other | 2,852 | 2,191 | 2,515 | |||||||||
Provision for income taxes | $ | 66,611 | $ | 59,693 | $ | 79,136 | ||||||
During 2014 and 2013, we recorded adjustments of $2.2 million and $4.2 million, respectively, related to the effective settlement of uncertain tax positions in Europe, which reduced income tax expense. The effect of these tax benefits are included in the income tax reconciliation table under the caption “change in valuation allowance and other uncertain tax positions.” | ||||||||||||
During 2014, we recorded a valuation allowance adjustment of $1.2 million, which reduced income tax expense. The valuation allowance adjustment is related to a state tax law change. The effect of this tax benefit is included in the income tax reconciliation table under the caption “change in valuation allowance and other uncertain tax positions.” | ||||||||||||
During 2014, we recorded an adjustment of $7.2 million related to a change in assertion of a foreign subsidiary’s certain undistributed earnings, which are no longer considered permanently reinvested. The effect of this charge is included in the income tax reconciliation table under the caption “change in indefinite reinvestment assertion.” | ||||||||||||
During 2012, we recorded net valuation allowance adjustments of $6.9 million, which reduced income tax expense. The valuation allowance adjustments reflect a change in judgment about the realizability of certain deferred tax assets in the Netherlands. The effect of these tax benefits is included in the income tax reconciliation table under the caption “change in valuation allowance and other uncertain tax positions.” | ||||||||||||
During 2012, we recorded adjustments of $9.0 million related to the effective settlement of uncertain tax positions in the U.S., Europe and Asia, which reduced income tax expense. The effect of these tax benefits is included in the income tax reconciliation table under the caption "change in valuation allowance and other uncertain tax positions." | ||||||||||||
The components of net deferred tax liabilities and assets were as follows at June 30: | ||||||||||||
(in thousands) | 2014 | 2013 | ||||||||||
Deferred tax assets: | ||||||||||||
Net operating loss carryforwards | $ | 52,812 | $ | 50,984 | ||||||||
Inventory valuation and reserves | 20,612 | 21,935 | ||||||||||
Pension benefits | 2,427 | 6,402 | ||||||||||
Other postretirement benefits | 8,432 | 9,163 | ||||||||||
Accrued employee benefits | 29,034 | 33,666 | ||||||||||
Other accrued liabilities | 12,981 | 9,368 | ||||||||||
Hedging activities | 14,996 | 13,994 | ||||||||||
Tax credits and other carryforwards | 2,082 | 1,708 | ||||||||||
Other | 14,617 | 20,918 | ||||||||||
Total | 157,993 | 168,138 | ||||||||||
Valuation allowance | (17,860 | ) | (15,569 | ) | ||||||||
Total deferred tax assets | $ | 140,133 | $ | 152,569 | ||||||||
Deferred tax liabilities: | ||||||||||||
Tax depreciation in excess of book | $ | 107,171 | $ | 107,623 | ||||||||
Intangible assets | 70,957 | 64,614 | ||||||||||
Total deferred tax liabilities | $ | 178,128 | $ | 172,237 | ||||||||
Total net deferred tax liabilities | $ | (37,995 | ) | $ | (19,668 | ) | ||||||
Included in deferred tax assets at June 30, 2014 is $52.8 million associated with net operating loss carryforwards in federal, state and foreign jurisdictions. Of that amount, $4.4 million expires through 2019, $11.3 million expires through 2024, $2.0 million expires through 2029, $0.1 million expires through 2034, and the remaining $35.0 million do not expire. The realization of these tax benefits is primarily dependent on future taxable income in these jurisdictions. | ||||||||||||
A valuation allowance of $17.9 million has been placed against deferred tax assets in Europe, China, Hong Kong, Brazil and the U.S., the majority of which would be allocated to income tax expense upon realization of the deferred tax assets. In 2014, the valuation allowance related to these deferred tax assets increased by $2.3 million. As the respective operations generate sufficient income, the valuation allowances will be partially or fully reversed at such time we believe it will be more likely than not that the deferred tax assets will be realized. | ||||||||||||
As of June 30, 2014, unremitted earnings of our non-U.S. subsidiaries and affiliates of $2,427.1 million, the majority of which have not been previously taxed in the U.S., are considered permanently reinvested, and accordingly, no deferred tax liability has been recorded in connection therewith. It is not practical to estimate the income tax effect that might be incurred if cumulative prior year earnings not previously taxed in the U.S. were remitted to the U.S. | ||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest) is as follows as of June 30: | ||||||||||||
(in thousands) | 2014 | 2013 | ||||||||||
Balance at beginning of year | $ | 26,798 | $ | 7,298 | ||||||||
Increases for tax positions of prior years | 1,461 | — | ||||||||||
Decreases for tax positions of prior years | (6,982 | ) | — | |||||||||
Increases for tax positions related to the current year | 116 | 23,231 | ||||||||||
Decreases related to settlement with taxing authority | (2,161 | ) | (3,813 | ) | ||||||||
Foreign currency translation | 1,134 | 82 | ||||||||||
Balance at end of year | $ | 20,366 | $ | 26,798 | ||||||||
The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate in 2014, 2013 and 2012 is $2.4 million, $4.3 million and $6.4 million, respectively. Our policy is to recognize interest and penalties related to income taxes as a component of the provision for income taxes in the consolidated statement of income. We recognized interest expense of $0.8 million for 2014. We recognized a reduction in interest of $1.9 million and $0.9 million in 2013 and 2012, respectively. We also recognized $0.3 million of penalty in 2012 through goodwill. As of June 30, 2014 and 2013 the amount of interest accrued was $1.3 million and $0.7 million, respectively. As of June 30, 2014 and 2013, the amount of penalty accrued was $0.4 million and $0.4 million, respectively. | ||||||||||||
In 2013, increases for tax positions related to the current year primarily relate to one foreign tax position. A corresponding deferred tax asset in the amount of $22.5 million was recorded for the position in the U.S. and is included in the components of net deferred tax liabilities and assets table under the caption “other.” In 2014, we refined our estimate for this tax position, which resulted in a $7.0 million reduction in the liability for the unrecognized tax benefit, as well as a corresponding reduction in the deferred tax asset. | ||||||||||||
With few exceptions, we are no longer subject to income tax examinations by tax authorities for years prior to 2008. The Internal Revenue Service has audited all U.S. tax years prior to 2011 and is currently examining 2011 and 2012. Various state and foreign jurisdiction tax authorities are in the process of examining our income tax returns for various tax years ranging from 2008 to 2011. We continue to execute and expand our pan-European business model. As a result of this and other matters, we continuously review our uncertain tax positions and evaluate any potential issues that may lead to an increase or decrease in the total amount of unrecognized tax benefits recorded. We believe that it is reasonably possible that the amount of unrecognized tax benefits could decrease by approximately $0.4 million within the next twelve months as a result of the progression of various federal, state, and foreign audits in process. |
Pension_and_Other_Postretireme
Pension and Other Postretirement Benefits | 12 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
Pension and Other Postretirement Benefits Disclosure | ' | |||||||||||||||
PENSION AND OTHER POSTRETIREMENT BENEFITS | ||||||||||||||||
Pension benefits under defined benefit pension plans are based on years of service and, for certain plans, on average compensation for specified years preceding retirement. We fund pension costs in accordance with the funding requirements of the Employee Retirement Income Security Act of 1974 (ERISA), as amended, for U.S. plans and in accordance with local regulations or customs for non-U.S. plans. | ||||||||||||||||
We have an Executive Retirement Plan for various executives and a Supplemental Executive Retirement Plan which was closed to future participation on July 26, 2006. | ||||||||||||||||
We presently provide varying levels of postretirement health care and life insurance benefits to certain employees and retirees. Postretirement health care benefits are available to employees and their spouses retiring on or after age 55 with 10 or more years of service. Beginning with retirements on or after January 1, 1998, our portion of the costs of postretirement health care benefits is capped at 1996 levels. Beginning with retirements on or after January 1, 2009, we have no obligation to provide a company subsidy for retiree medical costs. | ||||||||||||||||
We use a June 30 measurement date for all of our plans. | ||||||||||||||||
Defined Benefit Pension Plans | ||||||||||||||||
The funded status of our pension plans and amounts recognized in the consolidated balance sheets as of June 30 were as follows: | ||||||||||||||||
(in thousands) | 2014 | 2013 | ||||||||||||||
Change in benefit obligation: | ||||||||||||||||
Benefit obligation, beginning of year | $ | 890,831 | $ | 958,306 | ||||||||||||
Service cost | 6,910 | 7,797 | ||||||||||||||
Interest cost | 41,084 | 38,183 | ||||||||||||||
Participant contributions | 15 | 28 | ||||||||||||||
Actuarial losses (gains) | 56,925 | (71,974 | ) | |||||||||||||
Benefits and expenses paid | (43,948 | ) | (40,898 | ) | ||||||||||||
Currency translation adjustments | 16,994 | 173 | ||||||||||||||
Effect of acquired business | 1,093 | — | ||||||||||||||
Plan settlements | — | (784 | ) | |||||||||||||
Benefit obligation, end of year | $ | 969,904 | $ | 890,831 | ||||||||||||
Change in plans' assets: | ||||||||||||||||
Fair value of plans' assets, beginning of year | $ | 796,079 | $ | 783,843 | ||||||||||||
Actual return on plans' assets | 108,640 | 47,660 | ||||||||||||||
Company contributions | 10,902 | 9,788 | ||||||||||||||
Participant contributions | 15 | 28 | ||||||||||||||
Benefits and expenses paid | (43,948 | ) | (40,898 | ) | ||||||||||||
Plan settlements | — | (784 | ) | |||||||||||||
Currency translation adjustments | 12,576 | (3,558 | ) | |||||||||||||
Fair value of plans' assets, end of year | $ | 884,264 | $ | 796,079 | ||||||||||||
Funded status of plans | $ | (85,640 | ) | $ | (94,752 | ) | ||||||||||
Amounts recognized in the balance sheet consist of: | ||||||||||||||||
Long-term prepaid benefit | $ | 81,307 | $ | 57,385 | ||||||||||||
Short-term accrued benefit obligation | (8,679 | ) | (9,353 | ) | ||||||||||||
Accrued pension benefits | (158,268 | ) | (142,784 | ) | ||||||||||||
Net amount recognized | $ | (85,640 | ) | $ | (94,752 | ) | ||||||||||
The pre-tax amounts related to our defined benefit pension plans recognized in accumulated other comprehensive (loss) income were as follows at June 30: | ||||||||||||||||
(in thousands) | 2014 | 2013 | ||||||||||||||
Unrecognized net actuarial losses | $ | 121,799 | $ | 113,452 | ||||||||||||
Unrecognized net prior service credits | (939 | ) | (1,498 | ) | ||||||||||||
Unrecognized transition obligations | 1,105 | 1,101 | ||||||||||||||
Total | $ | 121,965 | $ | 113,055 | ||||||||||||
Prepaid pension benefits are included in other long-term assets. The assets of our U.S. and international defined benefit pension plans consist principally of capital stocks, corporate bonds and government securities. | ||||||||||||||||
To the best of our knowledge and belief, the asset portfolios of our defined benefit pension plans do not contain our capital stock. We do not issue insurance contracts to cover future annual benefits of defined benefit pension plan participants. Transactions between us and our defined benefit pension plans include the reimbursement of plan expenditures incurred by us on behalf of the plans. To the best of our knowledge and belief, the reimbursement of cost is permissible under current ERISA rules or local government law. The accumulated benefit obligation for all defined benefit pension plans was $956.7 million and $879.3 million as of June 30, 2014 and 2013, respectively. | ||||||||||||||||
Included in the above information are plans with accumulated benefit obligations exceeding the fair value of plan assets as of June 30 as follows: | ||||||||||||||||
(in thousands) | 2014 | 2013 | ||||||||||||||
Projected benefit obligation | $ | 190,679 | $ | 184,805 | ||||||||||||
Accumulated benefit obligation | 189,391 | 183,056 | ||||||||||||||
Fair value of plan assets | 23,390 | 34,405 | ||||||||||||||
The components of net periodic pension (income) cost include the following as of June 30: | ||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||||||
Service cost | $ | 6,910 | $ | 7,797 | $ | 6,982 | ||||||||||
Interest cost | 41,084 | 38,183 | 42,107 | |||||||||||||
Expected return on plans' assets | (59,527 | ) | (56,111 | ) | (51,376 | ) | ||||||||||
Amortization of transition obligation | 78 | 69 | 65 | |||||||||||||
Amortization of prior service cost | (234 | ) | (195 | ) | (186 | ) | ||||||||||
Settlement loss | — | 158 | 1,253 | |||||||||||||
Recognition of actuarial losses | 2,642 | 14,961 | 8,259 | |||||||||||||
Net periodic pension (income) cost | $ | (9,047 | ) | $ | 4,862 | $ | 7,104 | |||||||||
Net periodic pension income was $9.0 million in 2014 as compared to cost of $4.9 million in 2013. This change was primarily the result of discount rate changes. | ||||||||||||||||
As of June 30, 2014, the projected benefit payments, including future service accruals for these plans for 2015 through 2019, are $49.0 million, $48.8 million, $50.5 million, $52.7 million and $55.1 million, respectively, and $301.5 million in 2020 through 2024. | ||||||||||||||||
The amounts of accumulated other comprehensive loss expected to be recognized in net periodic pension cost during 2015 related to net actuarial losses and transition obligations are $4.1 million and $0.1 million, respectively. The amount of accumulated other comprehensive income expected to be recognized in net periodic pension cost during 2015 related to prior service credit is $0.3 million. | ||||||||||||||||
We expect to contribute approximately $11.5 million to our pension plans in 2015. | ||||||||||||||||
Other Postretirement Benefit Plans | ||||||||||||||||
The funded status of our other postretirement benefit plans and the related amounts recognized in the consolidated balance sheets were as follows: | ||||||||||||||||
(in thousands) | 2014 | 2013 | ||||||||||||||
Change in benefit obligation: | ||||||||||||||||
Benefit obligation, beginning of year | $ | 21,422 | $ | 24,574 | ||||||||||||
Service cost | 55 | 72 | ||||||||||||||
Interest cost | 1,006 | 938 | ||||||||||||||
Actuarial losses (gains) | 3,658 | (907 | ) | |||||||||||||
Benefits paid | (1,665 | ) | (3,255 | ) | ||||||||||||
Benefit obligation, end of year | $ | 24,476 | $ | 21,422 | ||||||||||||
Funded status of plan | $ | (24,476 | ) | $ | (21,422 | ) | ||||||||||
Amounts recognized in the balance sheet consist of: | ||||||||||||||||
Short-term accrued benefit obligation | $ | (1,960 | ) | $ | (1,961 | ) | ||||||||||
Accrued postretirement benefits | (22,516 | ) | (19,461 | ) | ||||||||||||
Net amount recognized | $ | (24,476 | ) | $ | (21,422 | ) | ||||||||||
The pre-tax amounts related to our other postretirement benefit plans which were recognized in accumulated other comprehensive (loss) income were as follows at June 30: | ||||||||||||||||
(in thousands) | 2014 | 2013 | ||||||||||||||
Unrecognized net actuarial losses | $ | 8,554 | $ | 5,213 | ||||||||||||
Unrecognized net prior service credits | (452 | ) | (563 | ) | ||||||||||||
Total | $ | 8,102 | $ | 4,650 | ||||||||||||
The components of net periodic other postretirement benefit cost include the following for the years ended June 30: | ||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||||||
Service cost | $ | 55 | $ | 72 | $ | 75 | ||||||||||
Interest cost | 1,006 | 938 | 1,029 | |||||||||||||
Amortization of prior service credit | (111 | ) | (111 | ) | (89 | ) | ||||||||||
Recognition of actuarial loss (gains) | 317 | 417 | (56 | ) | ||||||||||||
Net periodic other postretirement benefit cost | $ | 1,267 | $ | 1,316 | $ | 959 | ||||||||||
As of June 30, 2014, the projected benefit payments, including future service accruals for our other postretirement benefit plans for 2015 through 2019, are $2.3 million, $2.2 million, $2.2 million, $2.1 million, and $2.0 million, respectively, and $8.7 million in 2020 through 2024. | ||||||||||||||||
The amounts of accumulated other comprehensive loss expected to be recognized in net periodic pension cost during 2015 related to net actuarial losses are $0.8 million. The amount of accumulated other comprehensive income expected to be recognized in net periodic pension cost during 2015 related to prior service credit is $0.1 million. | ||||||||||||||||
We expect to contribute approximately $2.3 million to our postretirement benefit plans in 2015. | ||||||||||||||||
Assumptions | ||||||||||||||||
The significant actuarial assumptions used to determine the present value of net benefit obligations for our defined benefit pension plans and other postretirement benefit plans were as follows: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Discount Rate: | ||||||||||||||||
U.S. plans | 4.4 | % | 4.9 | % | 4 | % | ||||||||||
International plans | 2.9-4.3% | 3.5-4.8% | 4.0-5.0% | |||||||||||||
Rates of future salary increases: | ||||||||||||||||
U.S. plans | 3.0-5.0% | 3.0-5.0% | 3.0-5.0% | |||||||||||||
International plans | 2.5-3.0% | 2.5-3.0% | 2.5-4.0% | |||||||||||||
The significant assumptions used to determine the net periodic costs (benefits) for our pension and other postretirement benefit plans were as follows: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Discount Rate: | ||||||||||||||||
U.S. plans | 4.9 | % | 4 | % | 5.5 | % | ||||||||||
International plans | 3.5-4.8% | 4.0-5.5% | 5.5-5.8% | |||||||||||||
Rates of future salary increases: | ||||||||||||||||
U.S. plans | 3.0-5.0% | 3.0-5.0% | 3.0-5.0% | |||||||||||||
International plans | 2.5-3.0% | 2.5-4.0% | 2.0-3.5% | |||||||||||||
Rate of return on plans assets: | ||||||||||||||||
U.S. plans | 8 | % | 8 | % | 8 | % | ||||||||||
International plans | 5.0-6.0% | 5.6 | % | 5.8 | % | |||||||||||
The rates of return on plan assets are based on historical performance, as well as future expected returns by asset class considering macroeconomic conditions, current portfolio mix, long-term investment strategy and other available relevant information. | ||||||||||||||||
The annual assumed rate of increase in the per capita cost of covered benefits (the health care cost trend rate) for our postretirement benefit plans was as follows: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Health care costs trend rate assumed for next year | 7.5 | % | 7.8 | % | 8.1 | % | ||||||||||
Rate to which the cost trend rate gradually declines | 5 | % | 4.5 | % | 4.5 | % | ||||||||||
Year that the rate reaches the rate at which it is assumed to remain | 2024 | 2029 | 2029 | |||||||||||||
A change of one percentage point in the assumed health care cost trend rates would have the following effects on the total service and interest cost components of our other postretirement cost and other postretirement benefit obligation at June 30, 2014: | ||||||||||||||||
(in thousands) | 1% Increase | 1% Decrease | ||||||||||||||
Effect on total service and interest cost components | $ | 50 | $ | (44 | ) | |||||||||||
Effect on other postretirement obligation | 1,266 | (1,112 | ) | |||||||||||||
Plan Assets | ||||||||||||||||
The primary objective of certain of our pension plans’ investment policies is to ensure that sufficient assets are available to provide the benefit obligations at the time the obligations come due. The overall investment strategy for the defined benefit pension plans’ assets combine considerations of preservation of principal and moderate risk-taking. The assumption of an acceptable level of risk is warranted in order to achieve satisfactory results consistent with the long-term objectives of the portfolio. Fixed income securities comprise a significant portion of the portfolio due to their plan-liability-matching characteristics and to address the plans’ cash flow requirements. Additionally, diversification of investments within each asset class is utilized to further reduce the impact of losses in single investments. | ||||||||||||||||
Investment management practices must comply with ERISA and all applicable regulations and rulings thereof. The use of derivative instruments is permitted where appropriate and necessary for achieving overall investment policy objectives. Currently, the use of derivative instruments is not significant when compared to the overall investment portfolio. | ||||||||||||||||
The Company utilizes a liability driven investment strategy (LDI) for the assets of its U.S. defined benefit pension plans in order to reduce the volatility of the funded status of these plans and to meet the obligations at an acceptable cost over the long term. This LDI strategy entails modifying the asset allocation and duration of the assets of the plans to more closely match the liability profile of these plans. The asset reallocation involves increasing the fixed income allocation, reducing the equity component and adding alternative investments. Longer duration interest rate swaps have been added in order to increase the overall duration of the asset portfolio to more closely match the liabilities. | ||||||||||||||||
Our defined benefit pension plans’ asset allocations as of June 30, 2014 and 2013 and target allocations for 2015, by asset class, were as follows: | ||||||||||||||||
2014 | 2013 | Target % | ||||||||||||||
Equity | 34 | % | 34 | % | 30 | % | ||||||||||
Fixed Income | 63 | % | 61 | % | 70 | % | ||||||||||
Other | 3 | % | 5 | % | — | % | ||||||||||
The following sections describe the valuation methodologies used by the trustee to measure the fair value of the defined benefit pension plan assets, including an indication of the level in the fair value hierarchy in which each type of asset is generally classified (see Note 5 for the definition of fair value and a description of the fair value hierarchy). | ||||||||||||||||
Corporate fixed income securities Investments in corporate fixed income securities consist of corporate debt and asset backed securities. These investments are classified as level two and are valued using independent observable market inputs such as the treasury curve, swap curve and yield curve. | ||||||||||||||||
Common / collective trusts Investments in common / collective trusts invest primarily in publicly traded securities and are classified as level two and valued based on observable market data. | ||||||||||||||||
Common stock Common stocks are classified as level one and are valued at their quoted market price. | ||||||||||||||||
Government securities Investments in government securities consist of fixed income securities such as U.S. government and agency obligations and foreign government bonds and asset and mortgage backed securities such as obligations issued by government sponsored organizations. These investments are classified as level two and are valued using independent observable market inputs such as the treasury curve, credit spreads and interest rates. | ||||||||||||||||
Other fixed income securities Investments in other fixed income securities are classified as level two and valued based on observable market data. | ||||||||||||||||
Other Other investments consist primarily of state and local obligations and short term investments including cash, corporate notes, and various short term debt instruments which can be redeemed within a nominal redemption notice period. These investments are primarily classified as level two and are valued using independent observable market inputs. | ||||||||||||||||
The fair value methods described may not be reflective of future fair values. Additionally, while the Company believes the valuation methods used by the plans’ trustee are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in different fair value measurement at the reporting date. | ||||||||||||||||
The following table presents the fair value of the benefit plan assets classified under the appropriate level of the fair value hierarchy as of June 30, 2014: | ||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Corporate fixed income securities | $ | — | $ | 409,167 | $ | — | $ | 409,167 | ||||||||
Common / collective trusts: | ||||||||||||||||
Value funds | — | 117,479 | — | 117,479 | ||||||||||||
Growth funds | — | 64,830 | — | 64,830 | ||||||||||||
Balanced funds | — | 22,262 | — | 22,262 | ||||||||||||
Common stock | 101,527 | — | — | 101,527 | ||||||||||||
Government securities: | ||||||||||||||||
U.S. Government securities | — | 66,709 | — | 66,709 | ||||||||||||
Foreign government securities | — | 41,202 | — | 41,202 | ||||||||||||
Other fixed income securities | — | 36,469 | — | 36,469 | ||||||||||||
Other | 3,156 | 21,463 | — | 24,619 | ||||||||||||
Total investments | $ | 104,683 | $ | 779,581 | $ | — | $ | 884,264 | ||||||||
The following table presents the fair value of the benefit plan assets classified under the appropriate level of the fair value hierarchy as of June 30, 2013: | ||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Corporate fixed income securities | $ | — | $ | 363,027 | $ | — | $ | 363,027 | ||||||||
Common / collective trusts: | ||||||||||||||||
Value funds | — | 105,903 | — | 105,903 | ||||||||||||
Growth funds | — | 57,477 | — | 57,477 | ||||||||||||
Balanced funds | — | 19,370 | — | 19,370 | ||||||||||||
Common stock | 89,420 | — | — | 89,420 | ||||||||||||
Government securities: | ||||||||||||||||
U.S. Government securities | — | 54,857 | — | 54,857 | ||||||||||||
Foreign government securities | — | 29,115 | — | 29,115 | ||||||||||||
Other fixed income securities | — | 36,750 | — | 36,750 | ||||||||||||
Other | 1,625 | 38,535 | — | 40,160 | ||||||||||||
Total investments | $ | 91,045 | $ | 705,034 | $ | — | $ | 796,079 | ||||||||
Defined Contribution Plans | ||||||||||||||||
We sponsor several defined contribution retirement plans. Costs for defined contribution plans were $20.4 million, $16.7 million and $19.4 million in 2014, 2013 and 2012, respectively. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive (Loss) Income | 12 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ||||||||||||
Accumulated Other Comprehensive Loss | ' | ||||||||||||
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | |||||||||||||
Total accumulated other comprehensive loss (AOCL) consists of net income and other changes in equity from transactions and other events from sources other than shareowners. It includes postretirement benefit plan adjustments, currency translation adjustments, and unrealized gains and losses from derivative instruments designated as cash flow hedges. | |||||||||||||
The components of and changes in AOCL were as follows (net of tax) for the year ended June 30, 2014 (in thousands): | |||||||||||||
Attributable to Kennametal: | Post-retirement benefit plans | Currency translation adjustment | Derivatives | Total | |||||||||
Balance, June 30, 2013 | $ | (83,936 | ) | $ | 7,413 | $ | (12,481 | ) | $ | (89,004 | ) | ||
Other comprehensive loss before | (11,990 | ) | 31,398 | (706 | ) | 18,702 | |||||||
reclassifications | |||||||||||||
Amounts Reclassified from AOCL | 2,184 | — | 1,987 | 4,171 | |||||||||
Net current period other comprehensive loss | (9,806 | ) | 31,398 | 1,281 | 22,873 | ||||||||
AOCL, June 30, 2014 | $ | (93,742 | ) | $ | 38,811 | $ | (11,200 | ) | $ | (66,131 | ) | ||
Attributable to noncontrolling interests: | |||||||||||||
Balance, June 30, 2013 | $ | — | $ | 721 | $ | — | $ | 721 | |||||
Other comprehensive loss before | — | 366 | — | 366 | |||||||||
reclassifications | |||||||||||||
Net current period other comprehensive loss | — | 366 | — | 366 | |||||||||
AOCL, June 30, 2014 | $ | — | $ | 1,087 | $ | — | $ | 1,087 | |||||
The components of and changes in AOCL were as follows (net of tax) for the year ended June 30, 2013 (in thousands): | |||||||||||||
Attributable to Kennametal: | Post-retirement benefit plans | Currency translation adjustment | Derivatives | Total | |||||||||
Balance, June 30, 2012 | $ | (132,991 | ) | $ | (4,424 | ) | $ | (13,247 | ) | $ | (150,662 | ) | |
Other comprehensive loss before | 39,376 | 9,772 | (611 | ) | 48,537 | ||||||||
reclassifications | |||||||||||||
Amounts Reclassified from AOCL | 9,679 | — | 1,377 | 11,056 | |||||||||
Sale of subsidiary stock to noncontrolling | — | 2,065 | — | 2,065 | |||||||||
interest | |||||||||||||
Net current period other comprehensive loss | 49,055 | 11,837 | 766 | 61,658 | |||||||||
AOCL, June 30, 2013 | $ | (83,936 | ) | $ | 7,413 | $ | (12,481 | ) | $ | (89,004 | ) | ||
Attributable to noncontrolling interests: | |||||||||||||
Balance, June 30, 2012 | $ | — | $ | 1,271 | $ | — | $ | 1,271 | |||||
Other comprehensive loss before | — | (550 | ) | — | (550 | ) | |||||||
reclassifications | |||||||||||||
Net current period other comprehensive loss | — | (550 | ) | — | (550 | ) | |||||||
AOCL, June 30, 2013 | $ | — | $ | 721 | $ | — | $ | 721 | |||||
Reclassifications out of AOCL for the years ended June 30, 2014 and 2013 consisted of the following: | |||||||||||||
Details about AOCL components | Year ended June 30, 2014 | Year ended June 30, 2013 | Affected line item in the Income Statement | ||||||||||
(in thousands) | |||||||||||||
Gains and losses on cash flow hedges: | |||||||||||||
Forward starting interest rate swaps | $ | 1,945 | $ | 1,872 | Interest expense | ||||||||
Currency exchange contracts | 1,260 | 363 | Other expense (income), net | ||||||||||
Total before tax | 3,205 | 2,235 | |||||||||||
Tax benefit | 1,218 | 858 | Provision for income taxes | ||||||||||
Net of tax | $ | 1,987 | $ | 1,377 | |||||||||
Post-retirement benefit plans: | |||||||||||||
Amortization of transition obligations | $ | 78 | $ | 69 | See pension note 12 | ||||||||
Amortization of prior service credit | (345 | ) | (306 | ) | See pension note 12 | ||||||||
Recognition of actuarial losses | 2,959 | 15,378 | See pension note 12 | ||||||||||
Total before tax | 2,692 | 15,141 | |||||||||||
Tax (benefit) expense | (508 | ) | 5,462 | Provision for income taxes | |||||||||
Net of tax | $ | 2,184 | $ | 9,679 | |||||||||
Restructuring
Restructuring | 12 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Restructuring Charges [Abstract] | ' | |||||||||||||||||||||||
RESTRUCTURING | ' | |||||||||||||||||||||||
RESTRUCTURING AND RELATED CHARGES | ||||||||||||||||||||||||
During December 2013, we announced our intent to implement restructuring actions to achieve synergies across Kennametal as a result of the TMB acquisition by consolidating operations among both organizations, reducing administrative overhead and leveraging the supply chain. Consistent with this announcement, we initiated actions in 2014, related to employment reduction and consolidating operations. These and other restructuring actions are expected to be completed over the next two years. Total pre-tax charges are expected to be in the range of $40 million to $50 million, and are anticipated to be mostly cash expenditures. | ||||||||||||||||||||||||
During 2014, in conjunction with these initiatives, we recognized $19.1 million,of restructuring and related charges which included $17.8 million of restructuring charges of which $0.2 million related to inventory disposals and recorded in cost of goods sold. Restructuring-related charges of $1.2 million were recorded in cost of goods sold and $0.1 million in operating expense during 2014. | ||||||||||||||||||||||||
The restructuring accrual is recorded in other current liabilities in our consolidated balance sheet and the amount attributable to each segment is as follows: | ||||||||||||||||||||||||
(in thousands) | 30-Jun-13 | Expense | Asset Write-Down | Translation | Cash Expenditures | 30-Jun-14 | ||||||||||||||||||
Industrial | ||||||||||||||||||||||||
Severance | $ | — | $ | 9,536 | $ | — | $ | 11 | $ | (3,732 | ) | $ | 5,815 | |||||||||||
Facilities | — | 2,829 | (2,395 | ) | 14 | (4 | ) | 444 | ||||||||||||||||
Other | — | 136 | — | 13 | (82 | ) | 67 | |||||||||||||||||
Total Industrial | $ | — | $ | 12,501 | $ | (2,395 | ) | $ | 38 | $ | (3,818 | ) | $ | 6,326 | ||||||||||
Infrastructure | ||||||||||||||||||||||||
Severance | $ | — | $ | 4,034 | $ | — | $ | 4 | $ | (1,580 | ) | $ | 2,458 | |||||||||||
Facilities | — | 1,197 | (1,013 | ) | 8 | (2 | ) | 190 | ||||||||||||||||
Other | — | 57 | — | 6 | (35 | ) | 28 | |||||||||||||||||
Total Infrastructure | $ | — | 5,288 | (1,013 | ) | 18 | (1,617 | ) | 2,676 | |||||||||||||||
Total | $ | — | $ | 17,789 | $ | (3,408 | ) | $ | 56 | $ | (5,435 | ) | $ | 9,002 | ||||||||||
Financial_Instruments
Financial Instruments | 12 Months Ended |
Jun. 30, 2014 | |
Financial Instruments [Abstract] | ' |
Financial Instruments Disclosure [Text Block] | ' |
FINANCIAL INSTRUMENTS | |
The methods used to estimate the fair value of our financial instruments are as follows: | |
Cash and Equivalents, Current Maturities of Long-Term Debt and Notes Payable to Banks The carrying amounts approximate their fair value because of the short maturity of the instruments. | |
Long-Term Debt Fixed rate debt had a fair market value of $705.3 million and $680.1 million at June 30, 2014 and 2013, respectively. The fair value is determined based on the quoted market price of this debt as of June 30 and were classified in Level 2 of the fair value hierarchy. | |
Foreign Exchange Contracts The notional amount of outstanding foreign exchange contracts, translated at current exchange rates, was $91.1 million and $102.2 million at June 30, 2014 and 2013, respectively. We would have received $0.2 million and $0.2 million at June 30, 2014 and 2013, respectively, to settle these contracts representing the fair value of these agreements. The carrying value equaled the fair value for these contracts at June 30, 2014 and 2013. Fair value was estimated based on quoted market prices of comparable instruments. | |
Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist primarily of temporary cash investments and trade receivables. By policy, we make temporary cash investments with high credit quality financial institutions and limit the amount of exposure to any one financial institution. With respect to trade receivables, concentrations of credit risk are significantly reduced, because we serve numerous customers in many industries and geographic areas. | |
We are exposed to counterparty credit risk for nonperformance of derivatives and, in the unlikely event of nonperformance, to market risk for changes in interest and currency exchange rates, as well as settlement risk. We manage exposure to counterparty credit risk through credit standards, diversification of counterparties and procedures to monitor concentrations of credit risk. We do not anticipate nonperformance by any of the counterparties. As of June 30, 2014 and 2013, we had no significant concentrations of credit risk. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
STOCK-BASED COMPENSATION | ' | |||||||||||||
STOCK-BASED COMPENSATION | ||||||||||||||
Stock Options | ||||||||||||||
The assumptions used in our Black-Scholes valuation related to grants made during 2014, 2013 and 2012 were as follows: | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Risk-free interest rate | 1.3 | % | 0.6 | % | 1.1 | % | ||||||||
Expected life (years) (2) | 4.5 | 4.5 | 4.5 | |||||||||||
Expected volatility (3) | 40.3 | % | 49.5 | % | 47.6 | % | ||||||||
Expected dividend yield | 1.7 | % | 1.5 | % | 1.5 | % | ||||||||
(2) Expected life is derived from historical experience. | ||||||||||||||
(3) Expected volatility is based on the implied historical volatility of our stock. | ||||||||||||||
Changes in our stock options for 2014 were as follows: | ||||||||||||||
Options | Weighted | Weighted | Aggregate | |||||||||||
Average | Average | Intrinsic value | ||||||||||||
Exercise Price | Remaining | (in thousands) | ||||||||||||
Life (years) | ||||||||||||||
Options outstanding, June 30, 2013 | 2,729,068 | $ | 30.4 | |||||||||||
Granted | 346,127 | 45.22 | ||||||||||||
Exercised | (769,672 | ) | 26.16 | |||||||||||
Lapsed and forfeited | (40,699 | ) | 39.47 | |||||||||||
Options outstanding, June 30, 2014 | 2,264,824 | $ | 33.95 | 5.7 | $ | 27,927 | ||||||||
Options vested and expected to vest, June 30, 2014 | 2,236,967 | $ | 33.85 | 5.6 | $ | 27,807 | ||||||||
Options exercisable, June 30, 2014 | 1,475,761 | $ | 31 | 4.4 | $ | 22,549 | ||||||||
During 2014, 2013 and 2012, compensation expense related to stock options was $4.3 million, $6.2 million, and $5.5 million, respectively. As of June 30, 2014, the total unrecognized compensation cost related to options outstanding was $2.9 million and is expected to be recognized over a weighted average period of 2.5 years. | ||||||||||||||
Weighted average fair value of options granted during 2014, 2013 and 2012 was $13.76, $13.53 and $13.87, respectively. Fair value of options vested during 2014, 2013 and 2012 was $5.1 million, $5.2 million and $4.7 million, respectively. | ||||||||||||||
Tax benefits, relating to excess stock-based compensation deductions, are presented in the statement of cash flow as financing cash inflows. Tax benefits resulting from stock-based compensation deductions exceeded amounts reported for financial reporting purposes by $6.0 million, $4.2 million and $4.1 million in 2014, 2013 and 2012, respectively. | ||||||||||||||
The amount of cash received from the exercise of capital stock options during 2014, 2013 and 2012 was $20.6 million, $12.5 million and $19.4 million, respectively. The related tax benefit for 2014, 2013 and 2012 was $4.6 million, $2.8 million and $4.4 million, respectively. The total intrinsic value of options exercised during 2014, 2013 and 2012 was $14.8 million, $8.3 million and $14.2 million, respectively. | ||||||||||||||
Under the provisions of the A/R 2010 Plan, participants may deliver stock, owned by the holder for at least six months, in payment of the option price and receive credit for the fair market value of the shares on the date of delivery. The fair market value of shares delivered during 2014, 2013 and 2012 were $0.5 million, $0.1 million and $0.4 million, respectively. | ||||||||||||||
Restricted Stock Units – Time Vesting and Performance Vesting | ||||||||||||||
Performance vesting restricted stock units are earned pro rata each year if certain performance goals are met over a three-year period, and are also subject to a service condition that requires the individual to be employed by the Company at the payment date after the three-year performance period, with the exception of retirement eligible grantees, who upon retirement are entitled to receive payment for any units that have been earned, including a prorated portion in the partially completed fiscal year in which the retirement occurs. | ||||||||||||||
Changes in our time vesting and performance vesting restricted stock units for 2014 were as follows: | ||||||||||||||
Performance | Performance | Time Vesting | Time Vesting | |||||||||||
Vesting | Vesting | Stock Units | Weighted | |||||||||||
Stock | Weighted | Average Fair | ||||||||||||
Units | Average Fair | Value | ||||||||||||
Value | ||||||||||||||
Unvested performance vesting and time vesting restricted stock units, June 30, 2013 | 367,612 | $ | 32.08 | 815,210 | $ | 34.53 | ||||||||
Granted | 82,449 | 45.24 | 312,862 | 45.17 | ||||||||||
Vested | (156,798 | ) | 26.89 | (318,868 | ) | 33.01 | ||||||||
Performance metric not achieved | (95,907 | ) | 45.24 | — | — | |||||||||
Forfeited | — | — | (65,878 | ) | 39.77 | |||||||||
Unvested performance vesting and time vesting restricted stock units, June 30, 2014 | 197,356 | $ | 40.92 | 743,326 | $ | 39.2 | ||||||||
During 2014, 2013 and 2012, compensation expense related to time vesting and performance vesting restricted stock units was $13.1 million, $15.2 million, $14.9 million, respectively. As of June 30, 2014, the total unrecognized compensation cost related to unvested time vesting and performance vesting restricted stock units was $14.3 million and is expected to be recognized over a weighted average period of 2.3 years. |
Environmental_Matters
Environmental Matters | 12 Months Ended |
Jun. 30, 2014 | |
Environmental Remediation Obligations [Abstract] | ' |
ENVIRONMENTAL MATTERS | ' |
ENVIRONMENTAL MATTERS | |
The operation of our business has exposed us to certain liabilities and compliance costs related to environmental matters. We are involved in various environmental cleanup and remediation activities at certain of our locations. | |
Superfund Sites We are involved as a potentially responsible party (PRP) at various sites designated by the United States Environmental Protection Agency (USEPA) as Superfund sites. For certain of these sites, we have evaluated the claims and potential liabilities and have determined that neither are material, individually or in the aggregate. For certain other sites that are being monitored, the matters have not yet progressed to a point where it is possible to estimate the ultimate cost of remediation, the timing and extent of remedial action that may be required by governmental authorities or the amount of our liability alone or in relation to that of any other PRPs. | |
Other Environmental Matters We establish and maintain reserves for other potential environmental issues. At June 30, 2014 and 2013, the balance of these reserves was $11.0 million and $5.1 million, respectively. These reserves represent anticipated costs associated with the remediation of these issues. The increase in the reserve in 2014 relates to acquisitions. | |
The reserves we have established for environmental liabilities represent our best current estimate of the costs of addressing all identified environmental situations, based on our review of currently available evidence, and taking into consideration our prior experience in remediation and that of other companies, as well as public information released by the USEPA, other governmental agencies, and by the PRP groups in which we are participating. Although the reserves currently appear to be sufficient to cover these environmental liabilities, there are uncertainties associated with environmental liabilities, and we can give no assurance that our estimate of any environmental liability will not increase or decrease in the future. The reserved and unreserved liabilities for all environmental concerns could change substantially due to factors such as the nature and extent of contamination, changes in remedial requirements, technological changes, discovery of new information, the financial strength of other PRPs, the identification of new PRPs and the involvement of and direction taken by the government on these matters. | |
We maintain a Corporate Environmental Health and Safety (EHS) Department to monitor compliance with environmental regulations and to oversee remediation activities. In addition, we have designated EHS coordinators who are responsible for each of our global manufacturing facilities. Our financial management team periodically meets with members of the Corporate EHS Department and the Corporate Legal Department to review and evaluate the status of environmental projects and contingencies. On a quarterly basis, we review financial provisions and reserves for environmental contingencies and adjust these reserves when appropriate. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2014 | |
Committements and Contingencies [Abstract] | ' |
Commitments and Contingencies Disclosure [Text Block] | ' |
COMMITMENTS AND CONTINGENCIES | |
Legal Matters Various lawsuits arising during the normal course of business are pending against us. In our opinion, the ultimate liability, if any, resulting from these matters will have no significant effect on our consolidated financial positions or results of operations. | |
Lease Commitments We lease a wide variety of facilities and equipment under operating leases, primarily for warehouses, production and office facilities and equipment. Lease expense under these rentals amounted to $31.9 million, $30.8 million and $29.1 million in 2014, 2013 and 2012, respectively. Future minimum lease payments for non-cancelable operating leases are $21.6 million, $14.3 million, $8.6 million, $3.8 million and $2.2 million for the years 2015 through 2019 and $24.0 million thereafter. | |
Purchase Commitments We have purchase commitments for materials, supplies and machinery and equipment as part of the ordinary conduct of business. A few of these commitments extend beyond one year and are based on minimum purchase requirements. We believe these commitments are not at prices in excess of current market. | |
Other Contractual Obligations We do not have material financial guarantees or other contractual commitments that are reasonably likely to adversely affect our liquidity. | |
Related Party Transactions Sales to affiliated companies were immaterial in 2014, 2013 and 2012. We do not have any other related party transactions that affect our operations, results of operations, cash flow or financial condition |
Segment_Data
Segment Data | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
SEGMENT DATA | ' | |||||||||||
SEGMENT DATA | ||||||||||||
We operate in two reportable operating segments consisting of Industrial and Infrastructure. We do not allocate certain corporate expenses related to executive retirement plans, the Company’s Board of Directors and strategic initiatives, as well as certain other costs and report them in Corporate. Segment determination is based upon internal organizational structure, the manner in which we organize segments for making operating decisions and assessing performance, the availability of separate financial results and materiality considerations. | ||||||||||||
Sales to a single customer did not aggregate 4 percent or more of total sales in 2014, 2013 and 2012. Export sales from U.S. operations to unaffiliated customers were $82.2 million, $102.1 million, and $102.1 million in 2014, 2013 and 2012, respectively. | ||||||||||||
At the start of fiscal 2014, the Company enhanced its organizational structure to align a broader base management team with customer-facing products and technology platforms, as well as to further increase cross-selling opportunities. This operating structure supports the Company's stated growth objectives across diverse market sectors, preserves the focus on customers and increases product innovation. Consistent with previous allocation methodologies, corporate expenses related to each segment have been classified accordingly. | ||||||||||||
INDUSTRIAL The Industrial segment generally serves customers that operate in industrial end markets such as transportation, general engineering, aerospace and defense. The customers in these end markets manufacture engines, airframes, automobiles, trucks, ships and various types of industrial equipment. The technology and customization requirements for customers we serve vary by customer, application and industry. The value we deliver to our Industrial segment customers centers on our application expertise and our diverse offering of products and services. | ||||||||||||
INFRASTRUCTURE The Infrastructure segment generally serves customers that operate in the earthworks and energy sectors who support primary industries such as oil and gas, power generation, underground, surface and hard-rock mining, highway construction and road maintenance. Generally, we rely on customer intimacy to serve this segment. By gaining an in-depth understanding of our customers’ engineering and development needs, we are able to offer complete system solutions and high-performance capabilities to optimize and add value to their operations. | ||||||||||||
We restated the segment financial information for the years ended June 30, 2013 and 2012, respectively, to reflect the change in reportable operating segments. | ||||||||||||
Segment data is summarized as follows: | ||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||
Sales: | ||||||||||||
Industrial | $ | 1,524,075 | $ | 1,386,690 | $ | 1,560,157 | ||||||
Infrastructure | 1,313,115 | 1,202,683 | 1,176,089 | |||||||||
Total sales | $ | 2,837,190 | $ | 2,589,373 | $ | 2,736,246 | ||||||
Operating income: | ||||||||||||
Industrial | $ | 177,040 | $ | 192,828 | $ | 278,105 | ||||||
Infrastructure | 94,940 | 111,453 | 146,768 | |||||||||
Corporate | (8,548 | ) | (7,887 | ) | (8,464 | ) | ||||||
Total operating income | $ | 263,432 | $ | 296,394 | $ | 416,409 | ||||||
Interest expense | $ | 32,451 | $ | 27,472 | $ | 27,215 | ||||||
Other expense (income), net | 2,172 | 2,313 | (775 | ) | ||||||||
Income before income taxes | $ | 228,809 | $ | 266,609 | $ | 389,969 | ||||||
Depreciation and amortization: | ||||||||||||
Industrial | $ | 65,820 | $ | 60,458 | $ | 61,422 | ||||||
Infrastructure | 64,339 | 52,583 | 42,587 | |||||||||
Corporate | 63 | 63 | 64 | |||||||||
Total depreciation and amortization | $ | 130,222 | $ | 113,104 | $ | 104,073 | ||||||
Equity income: | ||||||||||||
Industrial | $ | 34 | $ | — | $ | — | ||||||
Infrastructure | 50 | 42 | 7 | |||||||||
Total equity income | $ | 84 | $ | 42 | $ | 7 | ||||||
Total assets: | ||||||||||||
Industrial | $ | 1,449,688 | $ | 1,190,026 | $ | 1,256,048 | ||||||
Infrastructure | 1,986,724 | 1,522,470 | 1,516,033 | |||||||||
Corporate | 431,674 | 588,543 | 262,107 | |||||||||
Total assets | $ | 3,868,086 | $ | 3,301,039 | $ | 3,034,188 | ||||||
Capital expenditures: | ||||||||||||
Industrial | $ | 71,628 | $ | 47,501 | $ | 71,587 | ||||||
Infrastructure | 45,748 | 35,334 | 31,449 | |||||||||
Total capital expenditures | $ | 117,376 | $ | 82,835 | $ | 103,036 | ||||||
Investments in affiliated companies: | ||||||||||||
Industrial | $ | — | $ | 234 | $ | 251 | ||||||
Infrastructure | 495 | 437 | 434 | |||||||||
Total investments in affiliated companies | $ | 495 | $ | 671 | $ | 685 | ||||||
Geographic information for sales, based on country of origin, and assets is as follows: | ||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||
Sales: | ||||||||||||
United States | $ | 1,198,541 | $ | 1,052,466 | $ | 1,170,117 | ||||||
Germany | 511,209 | 454,807 | 475,076 | |||||||||
China | 248,212 | 239,418 | 214,427 | |||||||||
Italy | 107,511 | 94,183 | 80,520 | |||||||||
United Kingdom | 105,041 | 92,614 | 82,635 | |||||||||
India | 81,455 | 83,401 | 105,136 | |||||||||
Canada | 78,163 | 93,257 | 80,007 | |||||||||
Other | 507,058 | 479,227 | 528,328 | |||||||||
Total sales | $ | 2,837,190 | $ | 2,589,373 | $ | 2,736,246 | ||||||
Total assets: | ||||||||||||
United States | $ | 1,842,453 | $ | 1,228,923 | $ | 1,177,705 | ||||||
Germany | 538,661 | 646,983 | 485,442 | |||||||||
China | 341,949 | 311,053 | 281,386 | |||||||||
Switzerland | 264,928 | 207,000 | 216,661 | |||||||||
Italy | 178,141 | 172,764 | 172,513 | |||||||||
Canada | 133,481 | 138,959 | 134,662 | |||||||||
India | 94,897 | 94,914 | 95,618 | |||||||||
United Kingdom | 79,657 | 107,738 | 104,805 | |||||||||
Other | 393,919 | 392,705 | 365,396 | |||||||||
Total assets: | $ | 3,868,086 | $ | 3,301,039 | $ | 3,034,188 | ||||||
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data | 12 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Selected Quarterly Financial Data [Abstract] | ' | |||||||||||||||
Quarterly Financial Information [Text Block] | ' | |||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA (unaudited) | ||||||||||||||||
For the quarter ended (in thousands, except | September 30 | December 31 | March 31 | June 30 | ||||||||||||
per share data) | ||||||||||||||||
2014 | ||||||||||||||||
Sales | $ | 619,808 | $ | 689,936 | $ | 755,242 | $ | 772,204 | ||||||||
Gross profit | 198,237 | 206,971 | 238,955 | 252,840 | ||||||||||||
Net income attributable to Kennametal | 37,837 | 24,209 | 50,865 | 45,455 | ||||||||||||
Basic earnings per share attributable to Kennametal (4) | ||||||||||||||||
Net income | 0.48 | 0.31 | 0.65 | 0.58 | ||||||||||||
Diluted earnings per share attributable to Kennametal (4) | ||||||||||||||||
Net income | 0.48 | 0.3 | 0.64 | 0.57 | ||||||||||||
2013 | ||||||||||||||||
Sales | $ | 629,459 | $ | 633,144 | $ | 655,360 | $ | 671,410 | ||||||||
Gross profit | 208,348 | 199,447 | 208,495 | 228,714 | ||||||||||||
Net income attributable to Kennametal | 46,390 | 42,142 | 53,916 | 60,818 | ||||||||||||
Basic earnings per share attributable to Kennametal (4) | ||||||||||||||||
Net income | 0.58 | 0.53 | 0.68 | 0.77 | ||||||||||||
Diluted earnings per share attributable to Kennametal (4) | ||||||||||||||||
Net income | 0.57 | 0.52 | 0.67 | 0.76 | ||||||||||||
(4) Earnings per share amounts attributable to Kennametal for each quarter are computed using the weighted average number of shares outstanding during the quarter. Earnings per share amounts attributable to Kennametal for the full year are computed using the weighted average number of shares outstanding during the year. Thus, the sum of the four quarters’ earnings per share attributable to Kennametal does not always equal the full-year earnings per share attributable to Kennametal. |
Schedule_II_Valuation_and_Qual
Schedule II Valuation and Qualifying Accounts and Reserves | 12 Months Ended | |||||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||||
Valuation and Qualifying Accounts and Reserves [Abstract] | ' | |||||||||||||||||||||||||||||
Schedule of Valuation and Qualifying Accounts Disclosure | ' | |||||||||||||||||||||||||||||
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | ||||||||||||||||||||||||||||||
(In thousands) | Balance at | Charges to | Charged to | Recoveries | Other | Deductions | Balance at | |||||||||||||||||||||||
For the year ended June 30 | Beginning | Costs and | Other | Adjustments | from | End of Year | ||||||||||||||||||||||||
of Year | Expenses | Comprehensive | Reserves | |||||||||||||||||||||||||||
(Loss) Income | ||||||||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||||||
Allowance for | $ | 11,949 | $ | 2,880 | $ | — | $ | 207 | $ | 111 | (1) | $ | (1,120 | ) | (2) | $ | 14,027 | |||||||||||||
doubtful accounts | ||||||||||||||||||||||||||||||
Reserve for excess and obsolete inventory | 52,739 | 9,252 | — | — | 1,317 | (1) | (10,571 | ) | (3) | 52,737 | ||||||||||||||||||||
Deferred tax asset valuation allowance | 15,569 | 3,001 | 24 | — | 505 | (1) | (1,239 | ) | (4) | 17,860 | ||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||
Allowance for | $ | 12,530 | $ | 1,532 | $ | — | $ | 193 | $ | 55 | (1) | $ | (2,361 | ) | (2) | $ | 11,949 | |||||||||||||
doubtful accounts | ||||||||||||||||||||||||||||||
Reserve for excess and obsolete inventory | 55,042 | 6,688 | — | — | 508 | (1) | (9,499 | ) | (3) | 52,739 | ||||||||||||||||||||
Deferred tax asset valuation allowance | 19,502 | (148 | ) | — | — | (2,288 | ) | (6) | (1,497 | ) | (4) | 15,569 | ||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||
Allowance for | $ | 20,958 | $ | (3,467 | ) | $ | — | $ | 306 | $ | (1,260 | ) | (1) | $ | (4,007 | ) | (2) | $ | 12,530 | |||||||||||
doubtful accounts | ||||||||||||||||||||||||||||||
Reserve for excess and obsolete inventory | 55,283 | 8,115 | — | — | (4,130 | ) | (1) | (4,226 | ) | (3) | 55,042 | |||||||||||||||||||
Deferred tax asset valuation allowance | 25,662 | (6,970 | ) | — | — | 810 | (5) | — | 19,502 | |||||||||||||||||||||
(1)Represents primarily currency translation adjustment. | ||||||||||||||||||||||||||||||
(2)Represents uncollected accounts charged against the allowance. | ||||||||||||||||||||||||||||||
(3)Represents scrapped inventory and other charges against the reserve. | ||||||||||||||||||||||||||||||
(4)Represents a forfeited net operating loss deduction. | ||||||||||||||||||||||||||||||
(5)Represents $3.4 million charged to goodwill relating to the business acquisition and $(2.6) million relating to currency translation adjustment. | ||||||||||||||||||||||||||||||
(6)Represents $(2.0) million goodwill adjustment relating to the business acquisition and $(0.3) million relating to currency translation adjustment. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | |||||||||||||||||
Principles of Consolidation, Policy [Policy Text Block] | ' | |||||||||||||||||
PRINCIPLES OF CONSOLIDATION The consolidated financial statements include our accounts and those of our majority-owned subsidiaries. All significant intercompany balances and transactions are eliminated. Investments in entities of less than 50 percent of the voting stock over which we have significant influence are accounted for on an equity basis. The factors used to determine significant influence include, but are not limited to, our management involvement in the investee, such as hiring and setting compensation for management of the investee, the ability to make operating and capital decisions of the investee, representation on the investee’s board of directors and purchase and supply agreements with the investee. Investments in entities of less than 50 percent of the voting stock in which we do not have significant influence are accounted for on the cost basis. | ||||||||||||||||||
Use of Estimates in the Preparation of Financial Statements, Policy [Policy Text Block] | ' | |||||||||||||||||
USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS In preparing our consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP), we make judgments and estimates about the amounts reflected in our financial statements. As part of our financial reporting process, our management collaborates to determine the necessary information on which to base our judgments and develop estimates used to prepare the financial statements. We use historical experience and available information to make these judgments and estimates. However, different amounts could be reported using different assumptions and in light of different facts and circumstances. Therefore, actual amounts could differ from the estimates reflected in our financial statements. | ||||||||||||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | |||||||||||||||||
CASH AND CASH EQUIVALENTS Cash investments having original maturities of three months or less are considered cash equivalents. Cash equivalents principally consist of investments in money market funds and bank deposits at June 30, 2014. | ||||||||||||||||||
Accounts Receivable, Policy [Policy Text Block] | ' | |||||||||||||||||
ACCOUNTS RECEIVABLE We market our products to a diverse customer base throughout the world. Trade credit is extended based upon periodically updated evaluations of each customer’s ability to satisfy its obligations. We make judgments as to our ability to collect outstanding receivables and provide allowances for the portion of receivables when collection becomes doubtful. Accounts receivable reserves are determined based upon an aging of accounts and a review of specific accounts. | ||||||||||||||||||
Inventory, Policy [Policy Text Block] | ' | |||||||||||||||||
INVENTORIES Inventories are stated at the lower of cost or market. We use the last-in, first-out (LIFO) method for determining the cost of a significant portion of our United States (U.S.) inventories. The cost of the remainder of our inventories is determined under the first-in, first-out or average cost methods. When market conditions indicate an excess of carrying costs over market value, a lower-of-cost-or-market provision is recorded. Excess and obsolete inventory reserves are established based upon our evaluation of the quantity of inventory on hand relative to demand. The excess and obsolete inventory reserve at June 30, 2014 and 2013 was $52.7 million and $52.7 million, respectively. | ||||||||||||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | |||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are carried at cost. Major improvements are capitalized, while maintenance and repairs are expensed as incurred. Retirements and disposals are removed from cost and accumulated depreciation accounts, with the gain or loss reflected in operating income. Interest related to the construction of major facilities is capitalized as part of the construction costs and is depreciated over the facilities estimated useful life. | ||||||||||||||||||
Depreciation for financial reporting purposes is computed using the straight-line method over the following estimated useful lives: building and improvements over 15-40 years; machinery and equipment over 4-15 years; furniture and fixtures over 5-10 years and computer hardware and software over 3-5 years. | ||||||||||||||||||
Leased property and equipment under capital leases are depreciated using the straight-line method over the terms of the related leases. | ||||||||||||||||||
Long Lived Assets, Policy [Policy Text Block] | ' | |||||||||||||||||
LONG-LIVED ASSETS We evaluate the recoverability of property, plant and equipment and intangible assets that are amortized, whenever events or changes in circumstances indicate the carrying amount of any such assets may not be fully recoverable. Changes in circumstances include technological advances, changes in our business model, capital structure, economic conditions or operating performance. Our evaluation is based upon, among other things, our assumptions about the estimated future undiscounted cash flows these assets are expected to generate. When the sum of the undiscounted cash flows is less than the carrying value of the asset or asset group, we will recognize an impairment loss to the extent that carrying value exceeds fair value. We apply our best judgment when performing these evaluations to determine if a triggering event has occurred, the undiscounted cash flows used to assess recoverability and the fair value of the asset. | ||||||||||||||||||
Goodwill and Other Intangible Assets, Policy [Policy Text Block] | ' | |||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill represents the excess of cost over the fair value of the net assets of acquired companies. Goodwill and other intangible assets with indefinite lives are tested at least annually for impairment. We perform our annual impairment tests during the June quarter in connection with our annual planning process, unless there are impairment indicators that warrant a test prior to that. | ||||||||||||||||||
A summary of the carrying amount of goodwill attributable to each segment, as well as the changes in such, is as follows: | ||||||||||||||||||
(in thousands) | Industrial | Infrastructure | Total | |||||||||||||||
Goodwill | $ | 407,610 | $ | 462,582 | $ | 870,192 | ||||||||||||
Accumulated impairment losses | (150,842 | ) | — | (150,842 | ) | |||||||||||||
Balance as of June 30, 2012 | $ | 256,768 | $ | 462,582 | $ | 719,350 | ||||||||||||
Translation | 1,315 | 1,090 | 2,405 | |||||||||||||||
Change in goodwill | 1,315 | 1,090 | 2,405 | |||||||||||||||
Goodwill | 408,925 | 463,672 | 872,597 | |||||||||||||||
Accumulated impairment losses | (150,842 | ) | — | (150,842 | ) | |||||||||||||
Balance as of June 30, 2013 | $ | 258,083 | $ | 463,672 | $ | 721,755 | ||||||||||||
Acquisition | $ | 60,100 | $ | 183,477 | $ | 243,577 | ||||||||||||
Translation | 3,312 | 6,932 | 10,244 | |||||||||||||||
Change in goodwill | 63,412 | 190,409 | 253,821 | |||||||||||||||
Goodwill | 472,337 | 654,081 | 1,126,418 | |||||||||||||||
Accumulated impairment losses | (150,842 | ) | — | (150,842 | ) | |||||||||||||
Balance as of June 30, 2014 | $ | 321,495 | $ | 654,081 | $ | 975,576 | ||||||||||||
We recorded no goodwill or other intangible asset impairments in 2014, 2013 and 2012. | ||||||||||||||||||
The Company is currently exploring strategic alternatives for a portion of its Infrastructure business, which has an estimated net book value of approximately $39.0 million as of June 30, 2014. As the strategic direction has not yet been determined, the Company cannot determine if an impairment loss is either probable or estimable. | ||||||||||||||||||
The components of our other intangible assets were as follows: | ||||||||||||||||||
Estimated | 30-Jun-14 | 30-Jun-13 | ||||||||||||||||
Useful Life | ||||||||||||||||||
(in thousands) | (in years) | Gross Carrying | Accumulated | Gross Carrying | Accumulated | |||||||||||||
Amount | Amortization | Amount | Amortization | |||||||||||||||
Contract-based | 3 to 15 | $ | 23,446 | $ | (10,820 | ) | $ | 21,450 | $ | (8,374 | ) | |||||||
Technology-based and other | 4 to 20 | 54,842 | (28,516 | ) | 38,005 | (26,006 | ) | |||||||||||
Customer-related | 10 to 21 | 285,751 | (76,376 | ) | 178,318 | (58,148 | ) | |||||||||||
Unpatented technology | 10 to 30 | 61,867 | (12,549 | ) | 45,972 | (9,761 | ) | |||||||||||
Trademarks | 5 to 20 | 19,256 | (10,984 | ) | 14,055 | (9,151 | ) | |||||||||||
Trademarks | Indefinite | 37,259 | — | 36,405 | — | |||||||||||||
Total | $ | 482,421 | $ | (139,245 | ) | $ | 334,205 | $ | (111,440 | ) | ||||||||
On November 4, 2013, we acquired the Tungsten Materials Business (TMB) from Allegheny Technologies Incorporated (ATI), the operations of which are included in both the Industrial and Infrastructure segments. As a result of the acquisition, we increased goodwill by $243.6 million and other intangible assets by $127.3 million based on our purchase price allocations. In the Infrastructure segment we recorded customer-related intangible assets of $102.0 million with an estimated useful life of 18 years to 21 years, technology-based and other intangibles of $13.1 million with an estimate useful life of 10 years to 13 years, trademarks of $2.7 million with an estimated useful life of 10 years and contract-based intangibles of $1.6 million with an estimated useful life of 3 years. In the Industrial segment we recorded customer-related intangible assets of $2.9 million with an estimated useful life of 10 years, trademarks of $2.5 million with an estimated useful life of 10 years, unpatented technology of $2.3 million with an estimated useful life of 10 years and technology-based an other intangibles of $0.2 million with an estimated useful life of 5 years. These other intangible assets will be amortized over their respective estimated useful lives. | ||||||||||||||||||
In the Infrastructure and Industrial segments we recorded $183.5 million and $60.1 million of goodwill, respectively, related to the TMB acquisition. The goodwill recorded relates to operating synergies associated with the acquisition that we expected to realize. Goodwill of $202.1 million was deductible for tax purposes. | ||||||||||||||||||
On August 1, 2013, we acquired the operating assets of Comercializadora Emura S.R.L. and certain related entities (Emura), in our Infrastructure segment. As a result of the acquisition we increased other intangible assets by $16.4 million based on our purchase price allocations. We recorded supplier relationship intangible assets in technology-based and other of $15.9 million with an estimated useful life of 20 years, contract-based intangibles of $0.4 million with an estimated useful life of 3 years and trademarks of $0.1 million with an estimated useful life of 20 years. These intangible assets will be amortized over their respective estimated useful lives. | ||||||||||||||||||
We recorded currency translation adjustments which increased intangible assets by $3.0 million in 2014 and decreased intangible assets by $0.2 million in 2013. | ||||||||||||||||||
Amortization expense for intangible assets was $26.2 million, $20.8 million and $16.4 million for 2014, 2013 and 2012, respectively. Estimated amortization expense for 2015 through 2019 is $27.7 million, $27.3 million, $25.4 million, $23.5 million, and $22.7 million, respectively. | ||||||||||||||||||
Pension and Other Postretirement Benefits, Policy [Policy Text Block] | ' | |||||||||||||||||
PENSION AND OTHER POSTRETIREMENT BENEFITS We sponsor these types of benefit plans for certain employees and retirees. Accounting for the cost of these plans requires the estimation of the cost of the benefits to be provided well into the future and attributing that cost over the expected work life of employees participating in these plans. This estimation requires our judgment about the discount rate used to determine these obligations, expected return on plan assets, rate of future compensation increases, rate of future health care costs, withdrawal and mortality rates and participant retirement age. Differences between our estimates and actual results may significantly affect the cost of our obligations under these plans. | ||||||||||||||||||
In the valuation of our pension and other postretirement benefit liabilities, management utilizes various assumptions. Discount rates are derived by identifying a theoretical settlement portfolio of high quality corporate bonds sufficient to provide for a plan’s projected benefit payments. This rate can fluctuate based on changes in the corporate bond yields. | ||||||||||||||||||
The long-term rate of return on plan assets is estimated based on an evaluation of historical returns for each asset category held by the plans, coupled with the current and short-term mix of the investment portfolio. The historical returns are adjusted for expected future market and economic changes. This return will fluctuate based on actual market returns and other economic factors. | ||||||||||||||||||
The rate of future health care costs is based on historical claims and enrollment information projected over the next year and adjusted for administrative charges. This rate is expected to decrease until 2024. | ||||||||||||||||||
Future compensation rates, withdrawal rates and participant retirement age are determined based on historical information. These assumptions are not expected to significantly change. Mortality rates are determined based on a review of published mortality tables. | ||||||||||||||||||
Earnings Per Share, Policy [Policy Text Block] | ' | |||||||||||||||||
EARNINGS PER SHARE Basic earnings per share is computed using the weighted average number of shares outstanding during the period, while diluted earnings per share is calculated to reflect the potential dilution that occurs related to the issuance of capital stock under stock option grants, restricted stock awards and restricted stock units. The difference between basic and diluted earnings per share relates solely to the effect of capital stock options, restricted stock awards and restricted stock units. | ||||||||||||||||||
For purposes of determining the number of diluted shares outstanding at June 30, 2014, 2013 and 2012, weighted average shares outstanding for basic earnings per share calculations were increased due solely to the dilutive effect of unexercised capital stock options, unvested restricted stock awards and unvested restricted stock units by 1.0 million, 1.1 million and 1.2 million shares, respectively. Unexercised capital stock options, restricted stock units and restricted stock awards of 0.3 million, 1.0 million and 0.7 million shares at June 30, 2014, 2013 and 2012, respectively, were not included in the computation of diluted earnings per share because the option exercise price was greater than the average market price, and therefore the inclusion would have been anti-dilutive. | ||||||||||||||||||
Revenue Recognition, Policy [Policy Text Block] | ' | |||||||||||||||||
REVENUE RECOGNITION We recognize revenue upon shipment of our products and assembled machines. Our general conditions of sale explicitly state that the delivery of our products and assembled machines is freight on board shipping point and that title and all risks of loss and damage pass to the buyer upon delivery of the sold products or assembled machines to the common carrier. | ||||||||||||||||||
Our general conditions of sale explicitly state that acceptance of the conditions of shipment are considered to have occurred unless written notice of objection is received by Kennametal within 10 calendar days of the date specified on the invoice. We do not ship products or assembled machines unless we have documentation from our customers authorizing shipment. Our products are consumed by our customers in the manufacture of their products. Historically, we have experienced very low levels of returned products and assembled machines and do not consider the effect of returned products and assembled machines to be material. We have recorded an estimated returned goods allowance to provide for any potential returns. | ||||||||||||||||||
We warrant that products and services sold are free from defects in material and workmanship under normal use and service when correctly installed, used and maintained. This warranty terminates 30 days after delivery of the product to the customer and does not apply to products that have been subjected to misuse, abuse, neglect or improper storage, handling or maintenance. Products may be returned to Kennametal, only after inspection and approval by Kennametal and upon receipt by the customer of shipping instructions from Kennametal. We have included an estimated allowance for warranty returns in our returned goods allowance. | ||||||||||||||||||
We recognize revenue related to the sale of specialized assembled machines upon customer acceptance and installation, as installation is deemed essential to the functionality of a specialized assembled machine. Sales of specialized assembled machines were immaterial for 2014, 2013 and 2012. | ||||||||||||||||||
Stock-Based Compensation, Policy [Policy Text Block] | ' | |||||||||||||||||
STOCK-BASED COMPENSATION We recognize stock-based compensation expense for all stock options, restricted stock awards and restricted stock units over the period from the date of grant to the date when the award is no longer contingent on the employee providing additional service (substantive vesting period). We utilize the Black-Scholes valuation method to establish the fair value of all stock option awards. | ||||||||||||||||||
Capital stock options are granted to eligible employees at fair market value at the date of grant. Capital stock options are exercisable under specified conditions for up to 10 years from the date of grant. At the 2013 Annual Meeting of Shareowners, the Kennametal Inc. Stock and Incentive Plan of 2010, as Amended and Restated on October 22, 2013 (A/R 2010 Plan) was approved. The A/R 2010 Plan authorizes the issuance of up to 9,500,000 shares of the Company’s capital stock plus any shares remaining unissued under the Kennametal Inc. Stock and Incentive Plan of 2002, as amended (2002 Plan). Under the provisions of the A/R 2010 Plan participants may deliver stock, owned by the holder for at least six months, in payment of the option price and receive credit for the fair market value of the shares on the date of delivery. The fair market value of shares delivered during 2014, 2013 and 2012 were $0.5 million, $0.1 million and $0.4 million, respectively. In addition to stock option grants, the A/R 2010 Plan permits the award of stock appreciation rights, performance share awards, performance unit awards, restricted stock awards, restricted unit awards and share awards to directors, officers and key employees. | ||||||||||||||||||
Research and Development Costs, Policy [Policy Text Block] | ' | |||||||||||||||||
RESEARCH AND DEVELOPMENT COSTS Research and development costs of $44.0 million, $39.7 million and $38.3 million in 2014, 2013 and 2012, respectively, were expensed as incurred. These costs are included in operating expense in the consolidated statements of income. | ||||||||||||||||||
Shipping and Handling Fees and Costs, Policy [Policy Text Block] | ' | |||||||||||||||||
SHIPPING AND HANDLING FEES AND COSTS All fees billed to customers for shipping and handling are classified as a component of sales. All costs associated with shipping and handling are classified as a component of cost of goods sold. | ||||||||||||||||||
Income Taxes, Policy [Policy Text Block] | ' | |||||||||||||||||
INCOME TAXES Deferred income taxes are recognized based on the future income tax effects (using enacted tax laws and rates) of differences in the carrying amounts of assets and liabilities for financial reporting and tax purposes. A valuation allowance is recognized if it is “more likely than not” that some or all of a deferred tax asset will not be realized. | ||||||||||||||||||
Derivative Instruments and Hedging Activities, Policy [Policy Text Block] | ' | |||||||||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES As part of our financial risk management program, we use certain derivative financial instruments. We do not enter into derivative transactions for speculative purposes and, therefore, hold no derivative instruments for trading purposes. We use derivative financial instruments to provide predictability to the effects of changes in foreign exchange rates on our consolidated results, achieve our targeted mix of fixed and floating interest rates on outstanding debt. Our objective in managing foreign exchange exposures with derivative instruments is to reduce volatility in cash flow, allowing us to focus more of our attention on business operations. With respect to interest rate management, these derivative instruments allow us to achieve our targeted fixed-to-floating interest rate mix, as a separate decision from funding arrangements, in the bank and public debt markets. | ||||||||||||||||||
We account for derivative instruments as a hedge of the related asset, liability, firm commitment or anticipated transaction, when the derivative is specifically designated as a hedge of such items. We measure hedge effectiveness by assessing the changes in the fair value or expected future cash flows of the hedged item. The ineffective portions are recorded in other expense (income), net. Certain currency forward contracts hedging significant cross-border intercompany loans are considered other derivatives and, therefore, do not qualify for hedge accounting. These contracts are recorded at fair value in the balance sheet, with the offset to other expense (income), net. | ||||||||||||||||||
Cash Flow Hedges [Policy Text Block] | ' | |||||||||||||||||
CASH FLOW HEDGES Currency Forward contracts and range forward contracts (a transaction where both a put option is purchased and a call option is sold) are designated as cash flow hedges and hedge anticipated cash flows from cross-border intercompany sales of products and services. Gains and losses realized on these contracts at maturity are recorded in accumulated other comprehensive (loss) income, and are recognized as a component of other expense (income), net when the underlying sale of products or services is recognized into earnings. | ||||||||||||||||||
Interest Rate Floating-to-fixed interest rate swap contracts, designated as cash flow hedges, are entered into from time to time to hedge our exposure to interest rate changes on a portion of our floating rate debt. These interest rate swap contracts convert a portion of our floating rate debt to fixed rate debt. We record the fair value of these contracts as an asset or a liability, as applicable, in the balance sheet, with the offset to accumulated other comprehensive (loss) income. | ||||||||||||||||||
Fair Value Hedges [Policy Text Block] | ' | |||||||||||||||||
FAIR VALUE HEDGES Interest Rate Fixed-to-floating interest rate swap contracts, designated as fair value hedges, are entered into from time to time to hedge our exposure to fair value fluctuations on a portion of our fixed rate debt. These interest rate swap contracts convert a portion of our fixed rate debt to floating rate debt. When in place, these contracts require periodic settlement, and the difference between amounts to be received and paid under the contracts is recognized in interest expense. | ||||||||||||||||||
Currency Translation, Policy [Policy Text Block] | ' | |||||||||||||||||
CURRENCY TRANSLATION Assets and liabilities of international operations are translated into U.S. dollars using year-end exchange rates, while revenues and expenses are translated at average exchange rates throughout the year. The resulting net translation adjustments are recorded as a component of accumulated other comprehensive (loss) income. The local currency is the functional currency of most of our locations. Losses from currency transactions included in other expense (income), net were $2.5 million, $4.5 million and $2.6 million for 2014, 2013 and 2012, respectively. | ||||||||||||||||||
New Accounting Standards, Policy [Policy Text Block] | ' | |||||||||||||||||
NEW ACCOUNTING STANDARDS | ||||||||||||||||||
Adopted | ||||||||||||||||||
As of July 1, 2013, Kennametal adopted disclosure requirements related to reclassifications out of accumulated other comprehensive income by component. See Note 13 to these consolidated financial statements for required disclosures. Other than the change in disclosures, the adoption of this guidance had no impact on the consolidated financial statements. | ||||||||||||||||||
As of July 1, 2013, Kennametal adopted additional guidance on testing indefinite lived intangible assets for impairment. The guidance permits an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of an indefinite lived intangible asset is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step impairment test. The adoption of this guidance had no impact on the consolidated financial statements. | ||||||||||||||||||
Issued | ||||||||||||||||||
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers: Topic 606”. This ASU replaces nearly all existing U.S. GAAP guidance on revenue recognition. The standard prescribes a five-step model for recognizing revenue, the application of which will require significant judgment. This standard is effective for Kennametal July 1, 2017. We are in the process of assessing the impact the adoption of this ASU will have on its consolidated financial statements. | ||||||||||||||||||
In April 2014, the FASB issued an ASU that changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. Under the new guidance, a discontinued operation is defined as a disposal of a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has or will have a major effect on an entity's operations and financial results. This standard is effective for Kennametal July 1, 2015. The guidance applies prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. The ASU is not expected to have a material effect. | ||||||||||||||||||
In July 2013, the FASB issued new guidance on the presentation in the financial statements of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The guidance takes into account these losses and carryfowards as well as the intended or likelihood of use of the unrecognized tax benefit in determining the balance sheet classification as an asset or liability. This guidance is effective for Kennametal beginning July 1, 2014 and will not have a material impact. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | |||||||||||||||||
Schedule of Goodwill [Table Text Block] | ' | |||||||||||||||||
A summary of the carrying amount of goodwill attributable to each segment, as well as the changes in such, is as follows: | ||||||||||||||||||
(in thousands) | Industrial | Infrastructure | Total | |||||||||||||||
Goodwill | $ | 407,610 | $ | 462,582 | $ | 870,192 | ||||||||||||
Accumulated impairment losses | (150,842 | ) | — | (150,842 | ) | |||||||||||||
Balance as of June 30, 2012 | $ | 256,768 | $ | 462,582 | $ | 719,350 | ||||||||||||
Translation | 1,315 | 1,090 | 2,405 | |||||||||||||||
Change in goodwill | 1,315 | 1,090 | 2,405 | |||||||||||||||
Goodwill | 408,925 | 463,672 | 872,597 | |||||||||||||||
Accumulated impairment losses | (150,842 | ) | — | (150,842 | ) | |||||||||||||
Balance as of June 30, 2013 | $ | 258,083 | $ | 463,672 | $ | 721,755 | ||||||||||||
Acquisition | $ | 60,100 | $ | 183,477 | $ | 243,577 | ||||||||||||
Translation | 3,312 | 6,932 | 10,244 | |||||||||||||||
Change in goodwill | 63,412 | 190,409 | 253,821 | |||||||||||||||
Goodwill | 472,337 | 654,081 | 1,126,418 | |||||||||||||||
Accumulated impairment losses | (150,842 | ) | — | (150,842 | ) | |||||||||||||
Balance as of June 30, 2014 | $ | 321,495 | $ | 654,081 | $ | 975,576 | ||||||||||||
Components of Other Intangible Assets [Table Text Block] | ' | |||||||||||||||||
The components of our other intangible assets were as follows: | ||||||||||||||||||
Estimated | 30-Jun-14 | 30-Jun-13 | ||||||||||||||||
Useful Life | ||||||||||||||||||
(in thousands) | (in years) | Gross Carrying | Accumulated | Gross Carrying | Accumulated | |||||||||||||
Amount | Amortization | Amount | Amortization | |||||||||||||||
Contract-based | 3 to 15 | $ | 23,446 | $ | (10,820 | ) | $ | 21,450 | $ | (8,374 | ) | |||||||
Technology-based and other | 4 to 20 | 54,842 | (28,516 | ) | 38,005 | (26,006 | ) | |||||||||||
Customer-related | 10 to 21 | 285,751 | (76,376 | ) | 178,318 | (58,148 | ) | |||||||||||
Unpatented technology | 10 to 30 | 61,867 | (12,549 | ) | 45,972 | (9,761 | ) | |||||||||||
Trademarks | 5 to 20 | 19,256 | (10,984 | ) | 14,055 | (9,151 | ) | |||||||||||
Trademarks | Indefinite | 37,259 | — | 36,405 | — | |||||||||||||
Total | $ | 482,421 | $ | (139,245 | ) | $ | 334,205 | $ | (111,440 | ) | ||||||||
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Supplemental Cash Flow Elements [Abstract] | ' | |||||||||||
Supplemental Cash Flow Disclosures | ' | |||||||||||
Year ended June 30 (in thousands) | 2014 | 2013 | 2012 | |||||||||
Cash paid during the period for: | ||||||||||||
Interest | $ | 29,836 | $ | 24,432 | $ | 27,395 | ||||||
Income taxes | 49,393 | 51,098 | 55,728 | |||||||||
Supplemental disclosure of non-cash information: | ||||||||||||
Changes in accounts payable related to purchases of property, plant and equipment | 2,100 | (8,600 | ) | — | ||||||||
Acquisition_Tables
Acquisition (Tables) | 12 Months Ended | ||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | ||||||||||||
Business Combinations [Abstract] | ' | ' | |||||||||||
Fair Value of Assets Acquired and Liabilities Assumed [Table Text Block] | ' | ' | |||||||||||
The allocation of the total purchase price to the fair values of the assets acquired and liabilities assumed as of June 30, 2014 is as follows: | |||||||||||||
(in thousands) | Total | ||||||||||||
ASSETS | |||||||||||||
Current assets: | |||||||||||||
Cash and cash equivalents | $ | 1,294 | |||||||||||
Accounts receivable | 41,164 | ||||||||||||
Inventories | 100,453 | ||||||||||||
Other current assets | 4,014 | ||||||||||||
Total current assets | 146,925 | ||||||||||||
Property, plant and equipment | 127,838 | ||||||||||||
Goodwill | 243,577 | ||||||||||||
Other intangible assets | 127,300 | ||||||||||||
Deferred income taxes | 6,978 | ||||||||||||
Other | 603 | ||||||||||||
Total assets | $ | 653,221 | |||||||||||
LIABILITIES | |||||||||||||
Current liabilities: | |||||||||||||
Accounts payable | $ | 22,790 | |||||||||||
Accrued payroll | 3,401 | ||||||||||||
Accrued expenses | 5,434 | ||||||||||||
Total current liabilities | 31,625 | ||||||||||||
Deferred income taxes | 4,585 | ||||||||||||
Other long-term liabilities | 8,781 | ||||||||||||
Total liabilities | 44,991 | ||||||||||||
Net assets acquired | $ | 608,230 | |||||||||||
Pro forma operating results | ' | ' | |||||||||||
Year ended June 30 (in thousands) | 2014 | 2013 | |||||||||||
Pro forma (unaudited): | |||||||||||||
Net Sales | $ | 2,941,005 | $ | 2,902,160 | |||||||||
Net income attributable to Kennametal | $ | 175,804 | $ | 190,863 | |||||||||
Per share data attributable to Kennametal Shareowners : | |||||||||||||
Basic earnings per share | $ | 2.23 | $ | 2.4 | |||||||||
Diluted earnings per share | $ | 2.21 | $ | 2.37 | |||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Financial instruments at fair value on recurring basis | ' | |||||||||||||||
As of June 30, 2014, the fair values of the Company’s financial assets and financial liabilities measured at fair value on a recurring basis are categorized as follows: | ||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | ||||||||||||||||
Derivatives (1) | $ | — | $ | 253 | $ | — | $ | 253 | ||||||||
Total assets at fair value | $ | — | $ | 253 | $ | — | $ | 253 | ||||||||
Liabilities: | ||||||||||||||||
Derivatives (1) | $ | — | $ | 1,053 | $ | — | $ | 1,053 | ||||||||
Contingent considerations | — | — | 14,000 | 14,000 | ||||||||||||
Total liabilities at fair value | $ | — | $ | 1,053 | $ | 14,000 | $ | 15,053 | ||||||||
The fair value of contingent consideration payable that was classified as Level 3 relates to our probability assessments of expected future milestone targets, primarily associated with product delivery, related to the Emura acquisition. The contingent consideration is to be paid over the next 3 years. During the current year the Company reassessed this contingent consideration and determined that no adjustment to the fair value was deemed necessary and that no changes in the expected outcome have occurred during the year ended June 30, 2014. | ||||||||||||||||
As of June 30, 2013, the fair value of the Company’s financial assets and financial liabilities measured at fair value on a recurring basis are categorized as follows: | ||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | ||||||||||||||||
Derivatives (1) | $ | — | $ | 775 | $ | — | $ | 775 | ||||||||
Total assets at fair value | $ | — | $ | 775 | $ | — | $ | 775 | ||||||||
Liabilities: | ||||||||||||||||
Derivatives (1) | $ | — | $ | 530 | $ | — | $ | 530 | ||||||||
Total liabilities at fair value | $ | — | $ | 530 | $ | — | $ | 530 | ||||||||
(1) Currency derivatives are valued based on observable market spot and forward rates and are classified within Level 2 of the fair value hierarchy. |
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||
Fair value of derivatives designated and not designated as hedging instruments | ' | |||||||||||
The fair value of derivatives designated and not designated as hedging instruments in the consolidated balance sheet are as follows: | ||||||||||||
(in thousands) | 2014 | 2013 | ||||||||||
Derivatives designated as hedging instruments | ||||||||||||
Other current assets - range forward contracts | $ | 184 | $ | 658 | ||||||||
Other current liabilities - range forward contracts | (6 | ) | (522 | ) | ||||||||
Other assets - range forward contracts | 42 | 69 | ||||||||||
Total derivatives designated as hedging instruments | 220 | 205 | ||||||||||
Derivatives not designated as hedging instruments | ||||||||||||
Other current assets - currency forward contracts | 27 | 48 | ||||||||||
Other current liabilities - currency forward contracts | (1,047 | ) | (8 | ) | ||||||||
Total derivatives not designated as hedging instruments | (1,020 | ) | 40 | |||||||||
Total derivatives | $ | (800 | ) | $ | 245 | |||||||
Losses (gains) related to derivatives not designated as hedging instruments | ' | |||||||||||
Losses (gains) related to derivatives not designated as hedging instruments have been recognized as follows: | ||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||
Other expense (income), net - currency forward contracts | $ | 1,057 | $ | 1,210 | $ | (1,149 | ) | |||||
Losses related to cash flow hedges | ' | |||||||||||
The following represents losses related to cash flow hedges: | ||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||
Losses recognized in other comprehensive loss, net | $ | (702 | ) | $ | (611 | ) | $ | (11,165 | ) | |||
Losses reclassified from accumulated other comprehensive loss into other expense (income), net | $ | 1,399 | $ | 1,116 | $ | 270 | ||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories consisted of the following at June 30: | ||||||||
(in thousands) | 2014 | 2013 | ||||||
Finished goods | $ | 371,599 | $ | 303,307 | ||||
Work in process and powder blends | 308,129 | 244,180 | ||||||
Raw materials | 126,004 | 137,602 | ||||||
Inventories at current cost | 805,732 | 685,089 | ||||||
Less: LIFO valuation | (101,966 | ) | (106,294 | ) | ||||
Total inventories | $ | 703,766 | $ | 578,795 | ||||
Other_Current_Liabilities_Tabl
Other Current Liabilities (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Other Liabilities, Current [Abstract] | ' | ||||||||
Other Current Liabilities [Text Block] | ' | ||||||||
Other current liabilities consisted of the following at June 30: | |||||||||
(in thousands) | 2014 | 2013 | |||||||
Accrued employee benefits | $ | 27,306 | $ | 21,663 | |||||
Payroll, state and local taxes | 16,401 | 14,885 | |||||||
Accrued restructuring (Note 14) | 9,002 | — | |||||||
Other | 106,194 | 88,199 | |||||||
Total other current liabilities | $ | 158,903 | $ | 124,747 | |||||
Longterm_Debt_and_Capital_Leas
Long-term Debt and Capital Leases (Tables) | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long Term Debt and Capital Lease Obligations | ' | |||||||
Long-term debt and capital lease obligations consisted of the following at June 30: | ||||||||
(in thousands) | 2014 | 2013 | ||||||
2.65% Senior Unsecured Notes due 2019 net of discount of $0.4 million for 2014 and $0.5 million for 2013 | $ | 399,595 | $ | 399,519 | ||||
3.875% Senior Unsecured Notes due 2022 net of discount of $0.3 million for 2014 and $0.3 million for 2013 | 299,720 | 299,683 | ||||||
Credit Agreement: | ||||||||
Euro-denominated borrowings, 1.1% to 1.3% in 2014, due 2018 | 200,112 | — | ||||||
U.S. Dollar-denominated borrowings, 1.2% in 2014 and 1.1% in 2013, due 2018 | 87,000 | 3,600 | ||||||
Capital leases with terms expiring through 2018 at 1.6% to 5.4% in 2014 and | 2,886 | 4,553 | ||||||
2.3% to 5.4% in 2013 | ||||||||
Other | 15 | 9 | ||||||
Total debt and capital leases | 989,328 | 707,364 | ||||||
Less current maturities: | ||||||||
Long-term debt | (7,512 | ) | (3,600 | ) | ||||
Capital leases | (135 | ) | (129 | ) | ||||
Other | (15 | ) | (9 | ) | ||||
Total current maturities | (7,662 | ) | (3,738 | ) | ||||
Long-term debt and capital leases, less current maturities | $ | 981,666 | $ | 703,626 | ||||
Future Minimum Payments Under Capital Leases | ' | |||||||
Future minimum lease payments under capital leases for the next five years and thereafter in total are as follows: | ||||||||
(in thousands) | ||||||||
2015 | $ | 247 | ||||||
2016 | 2,080 | |||||||
2017 | 601 | |||||||
2018 | 199 | |||||||
2019 | — | |||||||
After 2020 | — | |||||||
Total future minimum lease payments | 3,127 | |||||||
Less amount representing interest | (241 | ) | ||||||
Amount recognized as capital lease obligations | $ | 2,886 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Before Income Taxes | ' | |||||||||||
Income before income taxes consisted of the following for the years ended June 30: | ||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||
Income before income taxes: | ||||||||||||
United States | $ | 59,160 | $ | 87,499 | $ | 95,410 | ||||||
International | 169,649 | 179,110 | 294,559 | |||||||||
Total income before income taxes | $ | 228,809 | $ | 266,609 | $ | 389,969 | ||||||
Current income taxes: | ||||||||||||
Federal | $ | 15,108 | $ | 10,645 | $ | 23,313 | ||||||
State | 896 | 3,441 | 2,275 | |||||||||
International | 27,488 | 45,375 | 24,946 | |||||||||
Total current income taxes | 43,492 | 59,461 | 50,534 | |||||||||
Deferred income taxes: | ||||||||||||
Federal | $ | 10,157 | $ | 12,951 | $ | 13,637 | ||||||
State | (62 | ) | 2,433 | 4,104 | ||||||||
International | 13,024 | (15,152 | ) | 10,861 | ||||||||
Total deferred income taxes: | 23,119 | 232 | 28,602 | |||||||||
Provision for income taxes | $ | 66,611 | $ | 59,693 | $ | 79,136 | ||||||
Effective tax rate | 29.1 | % | 22.4 | % | 20.3 | % | ||||||
Reconciliation of Income Taxes and the Provision for Income Taxes | ' | |||||||||||
The reconciliation of income taxes computed using the statutory U.S. income tax rate and the provision for income taxes was as follows for the years ended June 30: | ||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||
Income taxes at U.S. statutory rate | $ | 80,083 | $ | 93,313 | $ | 136,489 | ||||||
State income taxes, net of federal tax benefits | 1,593 | 4,051 | 4,110 | |||||||||
U.S. income taxes provided on international income | 2,423 | 3,067 | 8,164 | |||||||||
Combined tax effects of international income | (22,580 | ) | (30,692 | ) | (50,574 | ) | ||||||
Change in valuation allowance and other uncertain tax positions | (2,603 | ) | (4,550 | ) | (16,243 | ) | ||||||
Impact of domestic production activities deduction | (942 | ) | (3,546 | ) | (3,810 | ) | ||||||
Research and development credit | (1,385 | ) | (4,141 | ) | (1,515 | ) | ||||||
Change in indefinite reinvestment assertion | 7,170 | — | — | |||||||||
Other | 2,852 | 2,191 | 2,515 | |||||||||
Provision for income taxes | $ | 66,611 | $ | 59,693 | $ | 79,136 | ||||||
Components of Net Deferred Tax Liabilities and Assets | ' | |||||||||||
The components of net deferred tax liabilities and assets were as follows at June 30: | ||||||||||||
(in thousands) | 2014 | 2013 | ||||||||||
Deferred tax assets: | ||||||||||||
Net operating loss carryforwards | $ | 52,812 | $ | 50,984 | ||||||||
Inventory valuation and reserves | 20,612 | 21,935 | ||||||||||
Pension benefits | 2,427 | 6,402 | ||||||||||
Other postretirement benefits | 8,432 | 9,163 | ||||||||||
Accrued employee benefits | 29,034 | 33,666 | ||||||||||
Other accrued liabilities | 12,981 | 9,368 | ||||||||||
Hedging activities | 14,996 | 13,994 | ||||||||||
Tax credits and other carryforwards | 2,082 | 1,708 | ||||||||||
Other | 14,617 | 20,918 | ||||||||||
Total | 157,993 | 168,138 | ||||||||||
Valuation allowance | (17,860 | ) | (15,569 | ) | ||||||||
Total deferred tax assets | $ | 140,133 | $ | 152,569 | ||||||||
Deferred tax liabilities: | ||||||||||||
Tax depreciation in excess of book | $ | 107,171 | $ | 107,623 | ||||||||
Intangible assets | 70,957 | 64,614 | ||||||||||
Total deferred tax liabilities | $ | 178,128 | $ | 172,237 | ||||||||
Total net deferred tax liabilities | $ | (37,995 | ) | $ | (19,668 | ) | ||||||
Reconciliation of Unrecognized Tax Benefits Excluding Interest | ' | |||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest) is as follows as of June 30: | ||||||||||||
(in thousands) | 2014 | 2013 | ||||||||||
Balance at beginning of year | $ | 26,798 | $ | 7,298 | ||||||||
Increases for tax positions of prior years | 1,461 | — | ||||||||||
Decreases for tax positions of prior years | (6,982 | ) | — | |||||||||
Increases for tax positions related to the current year | 116 | 23,231 | ||||||||||
Decreases related to settlement with taxing authority | (2,161 | ) | (3,813 | ) | ||||||||
Foreign currency translation | 1,134 | 82 | ||||||||||
Balance at end of year | $ | 20,366 | $ | 26,798 | ||||||||
Pension_and_Other_Postretireme1
Pension and Other Postretirement Benefits (Tables) | 12 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
Funded Status of Pension Plans and Amount recognized in the Consolidated Balance Sheet | ' | |||||||||||||||
The funded status of our pension plans and amounts recognized in the consolidated balance sheets as of June 30 were as follows: | ||||||||||||||||
(in thousands) | 2014 | 2013 | ||||||||||||||
Change in benefit obligation: | ||||||||||||||||
Benefit obligation, beginning of year | $ | 890,831 | $ | 958,306 | ||||||||||||
Service cost | 6,910 | 7,797 | ||||||||||||||
Interest cost | 41,084 | 38,183 | ||||||||||||||
Participant contributions | 15 | 28 | ||||||||||||||
Actuarial losses (gains) | 56,925 | (71,974 | ) | |||||||||||||
Benefits and expenses paid | (43,948 | ) | (40,898 | ) | ||||||||||||
Currency translation adjustments | 16,994 | 173 | ||||||||||||||
Effect of acquired business | 1,093 | — | ||||||||||||||
Plan settlements | — | (784 | ) | |||||||||||||
Benefit obligation, end of year | $ | 969,904 | $ | 890,831 | ||||||||||||
Change in plans' assets: | ||||||||||||||||
Fair value of plans' assets, beginning of year | $ | 796,079 | $ | 783,843 | ||||||||||||
Actual return on plans' assets | 108,640 | 47,660 | ||||||||||||||
Company contributions | 10,902 | 9,788 | ||||||||||||||
Participant contributions | 15 | 28 | ||||||||||||||
Benefits and expenses paid | (43,948 | ) | (40,898 | ) | ||||||||||||
Plan settlements | — | (784 | ) | |||||||||||||
Currency translation adjustments | 12,576 | (3,558 | ) | |||||||||||||
Fair value of plans' assets, end of year | $ | 884,264 | $ | 796,079 | ||||||||||||
Funded status of plans | $ | (85,640 | ) | $ | (94,752 | ) | ||||||||||
Amounts recognized in the balance sheet consist of: | ||||||||||||||||
Long-term prepaid benefit | $ | 81,307 | $ | 57,385 | ||||||||||||
Short-term accrued benefit obligation | (8,679 | ) | (9,353 | ) | ||||||||||||
Accrued pension benefits | (158,268 | ) | (142,784 | ) | ||||||||||||
Net amount recognized | $ | (85,640 | ) | $ | (94,752 | ) | ||||||||||
Defined Benefit Pension Plans Recognized in Accumulated Other Comprehensive (Loss) Income | ' | |||||||||||||||
The pre-tax amounts related to our defined benefit pension plans recognized in accumulated other comprehensive (loss) income were as follows at June 30: | ||||||||||||||||
(in thousands) | 2014 | 2013 | ||||||||||||||
Unrecognized net actuarial losses | $ | 121,799 | $ | 113,452 | ||||||||||||
Unrecognized net prior service credits | (939 | ) | (1,498 | ) | ||||||||||||
Unrecognized transition obligations | 1,105 | 1,101 | ||||||||||||||
Total | $ | 121,965 | $ | 113,055 | ||||||||||||
Accumulated Benefit Obligations Exceeding Plan Assets Fair Value | ' | |||||||||||||||
Included in the above information are plans with accumulated benefit obligations exceeding the fair value of plan assets as of June 30 as follows: | ||||||||||||||||
(in thousands) | 2014 | 2013 | ||||||||||||||
Projected benefit obligation | $ | 190,679 | $ | 184,805 | ||||||||||||
Accumulated benefit obligation | 189,391 | 183,056 | ||||||||||||||
Fair value of plan assets | 23,390 | 34,405 | ||||||||||||||
Net Periodic Pension (Income) Cost | ' | |||||||||||||||
The components of net periodic pension (income) cost include the following as of June 30: | ||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||||||
Service cost | $ | 6,910 | $ | 7,797 | $ | 6,982 | ||||||||||
Interest cost | 41,084 | 38,183 | 42,107 | |||||||||||||
Expected return on plans' assets | (59,527 | ) | (56,111 | ) | (51,376 | ) | ||||||||||
Amortization of transition obligation | 78 | 69 | 65 | |||||||||||||
Amortization of prior service cost | (234 | ) | (195 | ) | (186 | ) | ||||||||||
Settlement loss | — | 158 | 1,253 | |||||||||||||
Recognition of actuarial losses | 2,642 | 14,961 | 8,259 | |||||||||||||
Net periodic pension (income) cost | $ | (9,047 | ) | $ | 4,862 | $ | 7,104 | |||||||||
Funded Status of Other Postretirement Benefit Plans and Amount Recognized in the Consolidated Balance Sheet | ' | |||||||||||||||
The funded status of our other postretirement benefit plans and the related amounts recognized in the consolidated balance sheets were as follows: | ||||||||||||||||
(in thousands) | 2014 | 2013 | ||||||||||||||
Change in benefit obligation: | ||||||||||||||||
Benefit obligation, beginning of year | $ | 21,422 | $ | 24,574 | ||||||||||||
Service cost | 55 | 72 | ||||||||||||||
Interest cost | 1,006 | 938 | ||||||||||||||
Actuarial losses (gains) | 3,658 | (907 | ) | |||||||||||||
Benefits paid | (1,665 | ) | (3,255 | ) | ||||||||||||
Benefit obligation, end of year | $ | 24,476 | $ | 21,422 | ||||||||||||
Funded status of plan | $ | (24,476 | ) | $ | (21,422 | ) | ||||||||||
Amounts recognized in the balance sheet consist of: | ||||||||||||||||
Short-term accrued benefit obligation | $ | (1,960 | ) | $ | (1,961 | ) | ||||||||||
Accrued postretirement benefits | (22,516 | ) | (19,461 | ) | ||||||||||||
Net amount recognized | $ | (24,476 | ) | $ | (21,422 | ) | ||||||||||
Other Postretirement Benefit Plans Recognized in Accumulated Other Comprehensive (Loss) Income | ' | |||||||||||||||
The pre-tax amounts related to our other postretirement benefit plans which were recognized in accumulated other comprehensive (loss) income were as follows at June 30: | ||||||||||||||||
(in thousands) | 2014 | 2013 | ||||||||||||||
Unrecognized net actuarial losses | $ | 8,554 | $ | 5,213 | ||||||||||||
Unrecognized net prior service credits | (452 | ) | (563 | ) | ||||||||||||
Total | $ | 8,102 | $ | 4,650 | ||||||||||||
Net Periodic Other Postretirement Costs (Benefit) | ' | |||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||||||
Service cost | $ | 55 | $ | 72 | $ | 75 | ||||||||||
Interest cost | 1,006 | 938 | 1,029 | |||||||||||||
Amortization of prior service credit | (111 | ) | (111 | ) | (89 | ) | ||||||||||
Recognition of actuarial loss (gains) | 317 | 417 | (56 | ) | ||||||||||||
Net periodic other postretirement benefit cost | $ | 1,267 | $ | 1,316 | $ | 959 | ||||||||||
Significant Actuarial Assumptions Used to Determine the Present Value of Net Benefit Obligations | ' | |||||||||||||||
The significant actuarial assumptions used to determine the present value of net benefit obligations for our defined benefit pension plans and other postretirement benefit plans were as follows: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Discount Rate: | ||||||||||||||||
U.S. plans | 4.4 | % | 4.9 | % | 4 | % | ||||||||||
International plans | 2.9-4.3% | 3.5-4.8% | 4.0-5.0% | |||||||||||||
Rates of future salary increases: | ||||||||||||||||
U.S. plans | 3.0-5.0% | 3.0-5.0% | 3.0-5.0% | |||||||||||||
International plans | 2.5-3.0% | 2.5-3.0% | 2.5-4.0% | |||||||||||||
Significant Assumptions Used to Determine Net Periodic Costs (Benefits) for our Pension and Other Postretirement Benefit Plans | ' | |||||||||||||||
The significant assumptions used to determine the net periodic costs (benefits) for our pension and other postretirement benefit plans were as follows: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Discount Rate: | ||||||||||||||||
U.S. plans | 4.9 | % | 4 | % | 5.5 | % | ||||||||||
International plans | 3.5-4.8% | 4.0-5.5% | 5.5-5.8% | |||||||||||||
Rates of future salary increases: | ||||||||||||||||
U.S. plans | 3.0-5.0% | 3.0-5.0% | 3.0-5.0% | |||||||||||||
International plans | 2.5-3.0% | 2.5-4.0% | 2.0-3.5% | |||||||||||||
Rate of return on plans assets: | ||||||||||||||||
U.S. plans | 8 | % | 8 | % | 8 | % | ||||||||||
International plans | 5.0-6.0% | 5.6 | % | 5.8 | % | |||||||||||
Annual Assumed Rate of Increase in Per Capita Cost of Covered Benefits for Postretirement Benefit Plans | ' | |||||||||||||||
The annual assumed rate of increase in the per capita cost of covered benefits (the health care cost trend rate) for our postretirement benefit plans was as follows: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Health care costs trend rate assumed for next year | 7.5 | % | 7.8 | % | 8.1 | % | ||||||||||
Rate to which the cost trend rate gradually declines | 5 | % | 4.5 | % | 4.5 | % | ||||||||||
Year that the rate reaches the rate at which it is assumed to remain | 2024 | 2029 | 2029 | |||||||||||||
Calculated Effect of Change on Assumption Used to Calculate Interest Cost Components and Obligations of Healthcare Plans | ' | |||||||||||||||
A change of one percentage point in the assumed health care cost trend rates would have the following effects on the total service and interest cost components of our other postretirement cost and other postretirement benefit obligation at June 30, 2014: | ||||||||||||||||
(in thousands) | 1% Increase | 1% Decrease | ||||||||||||||
Effect on total service and interest cost components | $ | 50 | $ | (44 | ) | |||||||||||
Effect on other postretirement obligation | 1,266 | (1,112 | ) | |||||||||||||
Asset Allocations and Target Allocations by Asset Class | ' | |||||||||||||||
Our defined benefit pension plans’ asset allocations as of June 30, 2014 and 2013 and target allocations for 2015, by asset class, were as follows: | ||||||||||||||||
2014 | 2013 | Target % | ||||||||||||||
Equity | 34 | % | 34 | % | 30 | % | ||||||||||
Fixed Income | 63 | % | 61 | % | 70 | % | ||||||||||
Other | 3 | % | 5 | % | — | % | ||||||||||
Fair Value of the Benefit Plan Assets Classified Under Appropriate Level of Fair Value Hierarchy | ' | |||||||||||||||
The following table presents the fair value of the benefit plan assets classified under the appropriate level of the fair value hierarchy as of June 30, 2014: | ||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Corporate fixed income securities | $ | — | $ | 409,167 | $ | — | $ | 409,167 | ||||||||
Common / collective trusts: | ||||||||||||||||
Value funds | — | 117,479 | — | 117,479 | ||||||||||||
Growth funds | — | 64,830 | — | 64,830 | ||||||||||||
Balanced funds | — | 22,262 | — | 22,262 | ||||||||||||
Common stock | 101,527 | — | — | 101,527 | ||||||||||||
Government securities: | ||||||||||||||||
U.S. Government securities | — | 66,709 | — | 66,709 | ||||||||||||
Foreign government securities | — | 41,202 | — | 41,202 | ||||||||||||
Other fixed income securities | — | 36,469 | — | 36,469 | ||||||||||||
Other | 3,156 | 21,463 | — | 24,619 | ||||||||||||
Total investments | $ | 104,683 | $ | 779,581 | $ | — | $ | 884,264 | ||||||||
The following table presents the fair value of the benefit plan assets classified under the appropriate level of the fair value hierarchy as of June 30, 2013: | ||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Corporate fixed income securities | $ | — | $ | 363,027 | $ | — | $ | 363,027 | ||||||||
Common / collective trusts: | ||||||||||||||||
Value funds | — | 105,903 | — | 105,903 | ||||||||||||
Growth funds | — | 57,477 | — | 57,477 | ||||||||||||
Balanced funds | — | 19,370 | — | 19,370 | ||||||||||||
Common stock | 89,420 | — | — | 89,420 | ||||||||||||
Government securities: | ||||||||||||||||
U.S. Government securities | — | 54,857 | — | 54,857 | ||||||||||||
Foreign government securities | — | 29,115 | — | 29,115 | ||||||||||||
Other fixed income securities | — | 36,750 | — | 36,750 | ||||||||||||
Other | 1,625 | 38,535 | — | 40,160 | ||||||||||||
Total investments | $ | 91,045 | $ | 705,034 | $ | — | $ | 796,079 | ||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ||||||||||||
Components of Accumulated Other Comprehensive I(Loss) Income [Table Text Block] | ' | ||||||||||||
The components of and changes in AOCL were as follows (net of tax) for the year ended June 30, 2014 (in thousands): | |||||||||||||
Attributable to Kennametal: | Post-retirement benefit plans | Currency translation adjustment | Derivatives | Total | |||||||||
Balance, June 30, 2013 | $ | (83,936 | ) | $ | 7,413 | $ | (12,481 | ) | $ | (89,004 | ) | ||
Other comprehensive loss before | (11,990 | ) | 31,398 | (706 | ) | 18,702 | |||||||
reclassifications | |||||||||||||
Amounts Reclassified from AOCL | 2,184 | — | 1,987 | 4,171 | |||||||||
Net current period other comprehensive loss | (9,806 | ) | 31,398 | 1,281 | 22,873 | ||||||||
AOCL, June 30, 2014 | $ | (93,742 | ) | $ | 38,811 | $ | (11,200 | ) | $ | (66,131 | ) | ||
Attributable to noncontrolling interests: | |||||||||||||
Balance, June 30, 2013 | $ | — | $ | 721 | $ | — | $ | 721 | |||||
Other comprehensive loss before | — | 366 | — | 366 | |||||||||
reclassifications | |||||||||||||
Net current period other comprehensive loss | — | 366 | — | 366 | |||||||||
AOCL, June 30, 2014 | $ | — | $ | 1,087 | $ | — | $ | 1,087 | |||||
The components of and changes in AOCL were as follows (net of tax) for the year ended June 30, 2013 (in thousands): | |||||||||||||
Attributable to Kennametal: | Post-retirement benefit plans | Currency translation adjustment | Derivatives | Total | |||||||||
Balance, June 30, 2012 | $ | (132,991 | ) | $ | (4,424 | ) | $ | (13,247 | ) | $ | (150,662 | ) | |
Other comprehensive loss before | 39,376 | 9,772 | (611 | ) | 48,537 | ||||||||
reclassifications | |||||||||||||
Amounts Reclassified from AOCL | 9,679 | — | 1,377 | 11,056 | |||||||||
Sale of subsidiary stock to noncontrolling | — | 2,065 | — | 2,065 | |||||||||
interest | |||||||||||||
Net current period other comprehensive loss | 49,055 | 11,837 | 766 | 61,658 | |||||||||
AOCL, June 30, 2013 | $ | (83,936 | ) | $ | 7,413 | $ | (12,481 | ) | $ | (89,004 | ) | ||
Attributable to noncontrolling interests: | |||||||||||||
Balance, June 30, 2012 | $ | — | $ | 1,271 | $ | — | $ | 1,271 | |||||
Other comprehensive loss before | — | (550 | ) | — | (550 | ) | |||||||
reclassifications | |||||||||||||
Net current period other comprehensive loss | — | (550 | ) | — | (550 | ) | |||||||
AOCL, June 30, 2013 | $ | — | $ | 721 | $ | — | $ | 721 | |||||
Reclassification out of Accumulated Other Comprehensive Loss | ' | ||||||||||||
Reclassifications out of AOCL for the years ended June 30, 2014 and 2013 consisted of the following: | |||||||||||||
Details about AOCL components | Year ended June 30, 2014 | Year ended June 30, 2013 | Affected line item in the Income Statement | ||||||||||
(in thousands) | |||||||||||||
Gains and losses on cash flow hedges: | |||||||||||||
Forward starting interest rate swaps | $ | 1,945 | $ | 1,872 | Interest expense | ||||||||
Currency exchange contracts | 1,260 | 363 | Other expense (income), net | ||||||||||
Total before tax | 3,205 | 2,235 | |||||||||||
Tax benefit | 1,218 | 858 | Provision for income taxes | ||||||||||
Net of tax | $ | 1,987 | $ | 1,377 | |||||||||
Post-retirement benefit plans: | |||||||||||||
Amortization of transition obligations | $ | 78 | $ | 69 | See pension note 12 | ||||||||
Amortization of prior service credit | (345 | ) | (306 | ) | See pension note 12 | ||||||||
Recognition of actuarial losses | 2,959 | 15,378 | See pension note 12 | ||||||||||
Total before tax | 2,692 | 15,141 | |||||||||||
Tax (benefit) expense | (508 | ) | 5,462 | Provision for income taxes | |||||||||
Net of tax | $ | 2,184 | $ | 9,679 | |||||||||
Restructuring_Tables
Restructuring (Tables) | 12 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Restructuring Charges [Abstract] | ' | |||||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | ' | |||||||||||||||||||||||
The restructuring accrual is recorded in other current liabilities in our consolidated balance sheet and the amount attributable to each segment is as follows: | ||||||||||||||||||||||||
(in thousands) | 30-Jun-13 | Expense | Asset Write-Down | Translation | Cash Expenditures | 30-Jun-14 | ||||||||||||||||||
Industrial | ||||||||||||||||||||||||
Severance | $ | — | $ | 9,536 | $ | — | $ | 11 | $ | (3,732 | ) | $ | 5,815 | |||||||||||
Facilities | — | 2,829 | (2,395 | ) | 14 | (4 | ) | 444 | ||||||||||||||||
Other | — | 136 | — | 13 | (82 | ) | 67 | |||||||||||||||||
Total Industrial | $ | — | $ | 12,501 | $ | (2,395 | ) | $ | 38 | $ | (3,818 | ) | $ | 6,326 | ||||||||||
Infrastructure | ||||||||||||||||||||||||
Severance | $ | — | $ | 4,034 | $ | — | $ | 4 | $ | (1,580 | ) | $ | 2,458 | |||||||||||
Facilities | — | 1,197 | (1,013 | ) | 8 | (2 | ) | 190 | ||||||||||||||||
Other | — | 57 | — | 6 | (35 | ) | 28 | |||||||||||||||||
Total Infrastructure | $ | — | 5,288 | (1,013 | ) | 18 | (1,617 | ) | 2,676 | |||||||||||||||
Total | $ | — | $ | 17,789 | $ | (3,408 | ) | $ | 56 | $ | (5,435 | ) | $ | 9,002 | ||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Assumptions used in our Black-Scholes valuation | ' | |||||||||||||
The assumptions used in our Black-Scholes valuation related to grants made during 2014, 2013 and 2012 were as follows: | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Risk-free interest rate | 1.3 | % | 0.6 | % | 1.1 | % | ||||||||
Expected life (years) (2) | 4.5 | 4.5 | 4.5 | |||||||||||
Expected volatility (3) | 40.3 | % | 49.5 | % | 47.6 | % | ||||||||
Expected dividend yield | 1.7 | % | 1.5 | % | 1.5 | % | ||||||||
(2) Expected life is derived from historical experience. | ||||||||||||||
(3) Expected volatility is based on the implied historical volatility of our stock. | ||||||||||||||
Changes in stock options | ' | |||||||||||||
Changes in our stock options for 2014 were as follows: | ||||||||||||||
Options | Weighted | Weighted | Aggregate | |||||||||||
Average | Average | Intrinsic value | ||||||||||||
Exercise Price | Remaining | (in thousands) | ||||||||||||
Life (years) | ||||||||||||||
Options outstanding, June 30, 2013 | 2,729,068 | $ | 30.4 | |||||||||||
Granted | 346,127 | 45.22 | ||||||||||||
Exercised | (769,672 | ) | 26.16 | |||||||||||
Lapsed and forfeited | (40,699 | ) | 39.47 | |||||||||||
Options outstanding, June 30, 2014 | 2,264,824 | $ | 33.95 | 5.7 | $ | 27,927 | ||||||||
Options vested and expected to vest, June 30, 2014 | 2,236,967 | $ | 33.85 | 5.6 | $ | 27,807 | ||||||||
Options exercisable, June 30, 2014 | 1,475,761 | $ | 31 | 4.4 | $ | 22,549 | ||||||||
Changes in time vesting and performance vesting restricted stock units | ' | |||||||||||||
Changes in our time vesting and performance vesting restricted stock units for 2014 were as follows: | ||||||||||||||
Performance | Performance | Time Vesting | Time Vesting | |||||||||||
Vesting | Vesting | Stock Units | Weighted | |||||||||||
Stock | Weighted | Average Fair | ||||||||||||
Units | Average Fair | Value | ||||||||||||
Value | ||||||||||||||
Unvested performance vesting and time vesting restricted stock units, June 30, 2013 | 367,612 | $ | 32.08 | 815,210 | $ | 34.53 | ||||||||
Granted | 82,449 | 45.24 | 312,862 | 45.17 | ||||||||||
Vested | (156,798 | ) | 26.89 | (318,868 | ) | 33.01 | ||||||||
Performance metric not achieved | (95,907 | ) | 45.24 | — | — | |||||||||
Forfeited | — | — | (65,878 | ) | 39.77 | |||||||||
Unvested performance vesting and time vesting restricted stock units, June 30, 2014 | 197,356 | $ | 40.92 | 743,326 | $ | 39.2 | ||||||||
Segment_Data_Tables
Segment Data (Tables) | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Segment Data | ' | |||||||||||
as follows: | ||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||
Sales: | ||||||||||||
Industrial | $ | 1,524,075 | $ | 1,386,690 | $ | 1,560,157 | ||||||
Infrastructure | 1,313,115 | 1,202,683 | 1,176,089 | |||||||||
Total sales | $ | 2,837,190 | $ | 2,589,373 | $ | 2,736,246 | ||||||
Operating income: | ||||||||||||
Industrial | $ | 177,040 | $ | 192,828 | $ | 278,105 | ||||||
Infrastructure | 94,940 | 111,453 | 146,768 | |||||||||
Corporate | (8,548 | ) | (7,887 | ) | (8,464 | ) | ||||||
Total operating income | $ | 263,432 | $ | 296,394 | $ | 416,409 | ||||||
Interest expense | $ | 32,451 | $ | 27,472 | $ | 27,215 | ||||||
Other expense (income), net | 2,172 | 2,313 | (775 | ) | ||||||||
Income before income taxes | $ | 228,809 | $ | 266,609 | $ | 389,969 | ||||||
Depreciation and amortization: | ||||||||||||
Industrial | $ | 65,820 | $ | 60,458 | $ | 61,422 | ||||||
Infrastructure | 64,339 | 52,583 | 42,587 | |||||||||
Corporate | 63 | 63 | 64 | |||||||||
Total depreciation and amortization | $ | 130,222 | $ | 113,104 | $ | 104,073 | ||||||
Equity income: | ||||||||||||
Industrial | $ | 34 | $ | — | $ | — | ||||||
Infrastructure | 50 | 42 | 7 | |||||||||
Total equity income | $ | 84 | $ | 42 | $ | 7 | ||||||
Total assets: | ||||||||||||
Industrial | $ | 1,449,688 | $ | 1,190,026 | $ | 1,256,048 | ||||||
Infrastructure | 1,986,724 | 1,522,470 | 1,516,033 | |||||||||
Corporate | 431,674 | 588,543 | 262,107 | |||||||||
Total assets | $ | 3,868,086 | $ | 3,301,039 | $ | 3,034,188 | ||||||
Capital expenditures: | ||||||||||||
Industrial | $ | 71,628 | $ | 47,501 | $ | 71,587 | ||||||
Infrastructure | 45,748 | 35,334 | 31,449 | |||||||||
Total capital expenditures | $ | 117,376 | $ | 82,835 | $ | 103,036 | ||||||
Investments in affiliated companies: | ||||||||||||
Industrial | $ | — | $ | 234 | $ | 251 | ||||||
Infrastructure | 495 | 437 | 434 | |||||||||
Total investments in affiliated companies | $ | 495 | $ | 671 | $ | 685 | ||||||
Geographic Information for Sales [Table Text Block] | ' | |||||||||||
Geographic information for sales, based on country of origin, and assets is as follows: | ||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||
Sales: | ||||||||||||
United States | $ | 1,198,541 | $ | 1,052,466 | $ | 1,170,117 | ||||||
Germany | 511,209 | 454,807 | 475,076 | |||||||||
China | 248,212 | 239,418 | 214,427 | |||||||||
Italy | 107,511 | 94,183 | 80,520 | |||||||||
United Kingdom | 105,041 | 92,614 | 82,635 | |||||||||
India | 81,455 | 83,401 | 105,136 | |||||||||
Canada | 78,163 | 93,257 | 80,007 | |||||||||
Other | 507,058 | 479,227 | 528,328 | |||||||||
Total sales | $ | 2,837,190 | $ | 2,589,373 | $ | 2,736,246 | ||||||
Total assets: | ||||||||||||
United States | $ | 1,842,453 | $ | 1,228,923 | $ | 1,177,705 | ||||||
Germany | 538,661 | 646,983 | 485,442 | |||||||||
China | 341,949 | 311,053 | 281,386 | |||||||||
Switzerland | 264,928 | 207,000 | 216,661 | |||||||||
Italy | 178,141 | 172,764 | 172,513 | |||||||||
Canada | 133,481 | 138,959 | 134,662 | |||||||||
India | 94,897 | 94,914 | 95,618 | |||||||||
United Kingdom | 79,657 | 107,738 | 104,805 | |||||||||
Other | 393,919 | 392,705 | 365,396 | |||||||||
Total assets: | $ | 3,868,086 | $ | 3,301,039 | $ | 3,034,188 | ||||||
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Tables) | 12 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Selected Quarterly Financial Data [Abstract] | ' | |||||||||||||||
Selected Quarterly Financials Data [Table Text Block] | ' | |||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA (unaudited) | ||||||||||||||||
For the quarter ended (in thousands, except | September 30 | December 31 | March 31 | June 30 | ||||||||||||
per share data) | ||||||||||||||||
2014 | ||||||||||||||||
Sales | $ | 619,808 | $ | 689,936 | $ | 755,242 | $ | 772,204 | ||||||||
Gross profit | 198,237 | 206,971 | 238,955 | 252,840 | ||||||||||||
Net income attributable to Kennametal | 37,837 | 24,209 | 50,865 | 45,455 | ||||||||||||
Basic earnings per share attributable to Kennametal (4) | ||||||||||||||||
Net income | 0.48 | 0.31 | 0.65 | 0.58 | ||||||||||||
Diluted earnings per share attributable to Kennametal (4) | ||||||||||||||||
Net income | 0.48 | 0.3 | 0.64 | 0.57 | ||||||||||||
2013 | ||||||||||||||||
Sales | $ | 629,459 | $ | 633,144 | $ | 655,360 | $ | 671,410 | ||||||||
Gross profit | 208,348 | 199,447 | 208,495 | 228,714 | ||||||||||||
Net income attributable to Kennametal | 46,390 | 42,142 | 53,916 | 60,818 | ||||||||||||
Basic earnings per share attributable to Kennametal (4) | ||||||||||||||||
Net income | 0.58 | 0.53 | 0.68 | 0.77 | ||||||||||||
Diluted earnings per share attributable to Kennametal (4) | ||||||||||||||||
Net income | 0.57 | 0.52 | 0.67 | 0.76 | ||||||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Goodwill, Gross | $1,126,418 | $872,597 | $870,192 |
Goodwill, Accumulated Impairment Loss | -150,842 | -150,842 | -150,842 |
Goodwill | 975,576 | 721,755 | 719,350 |
Goodwill, Acquired During Period | 243,577 | ' | ' |
Translation | 10,244 | 2,405 | ' |
Goodwill, Period Increase (Decrease) | 253,821 | 2,405 | ' |
Industrial [Member] | ' | ' | ' |
Goodwill, Gross | 472,337 | 408,925 | 407,610 |
Goodwill, Accumulated Impairment Loss | -150,842 | -150,842 | -150,842 |
Goodwill | 321,495 | 258,083 | 256,768 |
Goodwill, Acquired During Period | 60,100 | ' | ' |
Translation | 3,312 | 1,315 | ' |
Goodwill, Period Increase (Decrease) | 63,412 | 1,315 | ' |
Infrastructure [Member] | ' | ' | ' |
Goodwill, Gross | 654,081 | 463,672 | 462,582 |
Goodwill | 654,081 | 463,672 | 462,582 |
Goodwill, Acquired During Period | 183,477 | ' | ' |
Translation | 6,932 | 1,090 | ' |
Goodwill, Period Increase (Decrease) | $190,409 | $1,090 | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 1) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | Contract-based [Member] | Contract-based [Member] | Technology-Based and other [Member] | Technology-Based and other [Member] | Customer-related [Member] | Customer-related [Member] | Unpatented Technology [Member] | Unpatented Technology [Member] | Trademarks [Member] | Trademarks [Member] | Trademarks [Member] | Trademarks [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | ||
Contract-based [Member] | Technology-Based and other [Member] | Customer-related [Member] | Unpatented Technology [Member] | Trademarks [Member] | Contract-based [Member] | Technology-Based and other [Member] | Customer-related [Member] | Unpatented Technology [Member] | Trademarks [Member] | |||||||||||||||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '4 years | '10 years | '10 years | '5 years | '15 years | '20 years | '21 years | '30 years | '20 years |
Finite-Lived Intangible Assets, Gross | ' | ' | $23,446 | $21,450 | $54,842 | $38,005 | $285,751 | $178,318 | $61,867 | $45,972 | $19,256 | $14,055 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Accumulated Amortization | -139,245 | -111,440 | -10,820 | -8,374 | -28,516 | -26,006 | -76,376 | -58,148 | -12,549 | -9,761 | -10,984 | -9,151 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 37,259 | 36,405 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite and Infinite Lived Intangible Assets Gross | $482,421 | $334,205 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recovered_Sheet1
Summary Of Significant Accounting Policies Summary Of Significant Accounting Policies (Details 2) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Accumulated Amortization | $139,245 | $111,440 |
Finite and Infinite Lived Intangible Assets Gross | 482,421 | 334,205 |
Contractual Rights [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | 23,446 | 21,450 |
Finite-Lived Intangible Assets, Accumulated Amortization | 10,820 | 8,374 |
Technology-Based and other [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | 54,842 | 38,005 |
Finite-Lived Intangible Assets, Accumulated Amortization | 28,516 | 26,006 |
Customer Relationships [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | 285,751 | 178,318 |
Finite-Lived Intangible Assets, Accumulated Amortization | 76,376 | 58,148 |
Unpatented Technology [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | 61,867 | 45,972 |
Finite-Lived Intangible Assets, Accumulated Amortization | 12,549 | 9,761 |
Trademarks [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | 19,256 | 14,055 |
Finite-Lived Intangible Assets, Accumulated Amortization | 10,984 | 9,151 |
Trademarks [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $37,259 | $36,405 |
Recovered_Sheet2
Summary Of Significant Accounting Policies (Details 3) (USD $) | 12 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Oct. 26, 2010 |
Amended and Restated Two Thousand Ten Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Exercisable Period for Capital Stock Options | '10 years | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | ' | ' | ' | 9,500,000 |
Deferred Compensation Arrangement with Individual, Fair Value of Shares Issued | $0.50 | $0.10 | $0.40 | ' |
Recovered_Sheet3
Summary Of Significant Accounting Policies (Details Textual) (USD $) | 12 Months Ended | ||||||
Share data in Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 |
Summary Of Significant Accounting Policies (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Conditions for Investments in Entities Accounted for Equity Basis | '0.50 | ' | ' | ' | ' | ' | ' |
Conditions for Investments in Entities Accounted for on Cost Basis | '0.50 | ' | ' | ' | ' | ' | ' |
Excess and obsolete inventory reserve | $52,700,000 | $52,700,000 | ' | ' | ' | ' | ' |
Net Book Value Portion Infrastructure Segment | 39,000,000 | ' | ' | ' | ' | ' | ' |
Increase Decrease in Intangible Assets Due to Foreign Currency Translation Adjustments | 3,000,000 | -200,000 | ' | ' | ' | ' | ' |
Amortization | 26,195,000 | 20,760,000 | 16,351,000 | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 27,700,000 | ' | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | ' | ' | ' | ' | ' | ' | 27,300,000 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | ' | ' | ' | ' | ' | 25,400,000 | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | ' | ' | ' | ' | 23,500,000 | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | ' | ' | ' | 22,700,000 | ' | ' | ' |
Increase in weighted average shares due to dilutive effect of unexercised capital stock options, unvested restricted stock awards and unvested restricted stock units | 1 | 1.1 | 1.2 | ' | ' | ' | ' |
Unexercised capital stock options, restricted stock units and restricted stock awards excluded from computation of diluted EPS | 0.3 | 1 | 0.7 | ' | ' | ' | ' |
Conditions of Shipment are Considered to Have Occurred Unless Written Notice of Objection is Received | '10 | ' | ' | ' | ' | ' | ' |
Termination of Warranty | '30 | ' | ' | ' | ' | ' | ' |
Research and Development Expense | 44,000,000 | 39,700,000 | 38,300,000 | ' | ' | ' | ' |
Currency Transaction Loss, before Tax | $2,500,000 | $4,500,000 | $2,600,000 | ' | ' | ' | ' |
Minimum [Member] | Building and Improvements [Member] | ' | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '15 years | ' | ' | ' | ' | ' | ' |
Minimum [Member] | Machinery and Equipment [Member] | ' | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '4 years | ' | ' | ' | ' | ' | ' |
Minimum [Member] | Furniture and Fixtures [Member] | ' | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '5 years | ' | ' | ' | ' | ' | ' |
Minimum [Member] | ComputerHardwareAndSoftware [Member] | ' | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '3 years | ' | ' | ' | ' | ' | ' |
Maximum [Member] | Building and Improvements [Member] | ' | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '40 years | ' | ' | ' | ' | ' | ' |
Maximum [Member] | Machinery and Equipment [Member] | ' | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '15 years | ' | ' | ' | ' | ' | ' |
Maximum [Member] | Furniture and Fixtures [Member] | ' | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '10 years | ' | ' | ' | ' | ' | ' |
Maximum [Member] | ComputerHardwareAndSoftware [Member] | ' | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '5 years | ' | ' | ' | ' | ' | ' |
Summary_of_Signficant_Accounti
Summary of Signficant Accounting Policies (Details Textual 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Business Acquisition [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Accumulated Amortization | $139,245 | $111,440 |
Goodwill, Acquired During Period | 243,577 | ' |
Finite and Infinite Lived Intangible Assets Gross | 482,421 | 334,205 |
Contract-based [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | 23,446 | 21,450 |
Finite-Lived Intangible Assets, Accumulated Amortization | 10,820 | 8,374 |
Contract-based [Member] | Maximum [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '15 years | ' |
Contract-based [Member] | Minimum [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '3 years | ' |
Technology-Based and other [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | 54,842 | 38,005 |
Finite-Lived Intangible Assets, Accumulated Amortization | 28,516 | 26,006 |
Technology-Based and other [Member] | Maximum [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '20 years | ' |
Technology-Based and other [Member] | Minimum [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '4 years | ' |
Customer-related [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | 285,751 | 178,318 |
Finite-Lived Intangible Assets, Accumulated Amortization | 76,376 | 58,148 |
Customer-related [Member] | Maximum [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '21 years | ' |
Customer-related [Member] | Minimum [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '10 years | ' |
Unpatented Technology [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | 61,867 | 45,972 |
Finite-Lived Intangible Assets, Accumulated Amortization | 12,549 | 9,761 |
Unpatented Technology [Member] | Maximum [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '30 years | ' |
Unpatented Technology [Member] | Minimum [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '10 years | ' |
Trademarks [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | 19,256 | 14,055 |
Finite-Lived Intangible Assets, Accumulated Amortization | 10,984 | 9,151 |
Trademarks [Member] | Maximum [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '20 years | ' |
Trademarks [Member] | Minimum [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '5 years | ' |
Trademarks [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $37,259 | $36,405 |
Recovered_Sheet4
Summary Of Significant Accounting Policies Summary of Significant Accounting Policies (Details Textual 2) (USD $) | 12 Months Ended |
Jun. 30, 2014 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Goodwill, Acquired During Period | $243,577,000 |
Infrastructure [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Goodwill, Acquired During Period | 183,477,000 |
Industrial [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Goodwill, Acquired During Period | 60,100,000 |
Trademarks [Member] | Minimum [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-Lived Intangible Asset, Useful Life | '5 years |
Trademarks [Member] | Maximum [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-Lived Intangible Asset, Useful Life | '20 years |
Technology-Based and other [Member] | Minimum [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-Lived Intangible Asset, Useful Life | '4 years |
Technology-Based and other [Member] | Maximum [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-Lived Intangible Asset, Useful Life | '20 years |
Unpatented Technology [Member] | Minimum [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-Lived Intangible Asset, Useful Life | '10 years |
Unpatented Technology [Member] | Maximum [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-Lived Intangible Asset, Useful Life | '30 years |
TMB [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Goodwill, Acquired During Period | 243,577,000 |
Finite-lived Intangible Assets Acquired | 127,300,000 |
Goodwill Deductible For Tax Purposes | 202,100,000 |
TMB [Member] | Infrastructure [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Goodwill, Acquired During Period | 183,500,000 |
TMB [Member] | Industrial [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Goodwill, Acquired During Period | 60,100,000 |
TMB [Member] | Trademarks [Member] | Infrastructure [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived Intangible Assets Acquired | 2,700,000 |
Finite-Lived Intangible Asset, Useful Life | '10 years |
TMB [Member] | Trademarks [Member] | Industrial [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived Intangible Assets Acquired | 2,500,000 |
Finite-Lived Intangible Asset, Useful Life | '10 years |
TMB [Member] | Contract-Based Intangible Assets [Member] | Infrastructure [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived Intangible Assets Acquired | 1,600,000 |
Finite-Lived Intangible Asset, Useful Life | '3 years |
TMB [Member] | Technology-Based and other [Member] | Infrastructure [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived Intangible Assets Acquired | 13,100,000 |
TMB [Member] | Technology-Based and other [Member] | Industrial [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived Intangible Assets Acquired | 200,000 |
Finite-Lived Intangible Asset, Useful Life | '5 years |
TMB [Member] | Technology-Based and other [Member] | Minimum [Member] | Infrastructure [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-Lived Intangible Asset, Useful Life | '10 years |
TMB [Member] | Technology-Based and other [Member] | Maximum [Member] | Infrastructure [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-Lived Intangible Asset, Useful Life | '13 years |
TMB [Member] | Customer-Related Intangible Assets [Member] | Infrastructure [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived Intangible Assets Acquired | 102,000,000 |
TMB [Member] | Customer-Related Intangible Assets [Member] | Industrial [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived Intangible Assets Acquired | 2,900,000 |
Finite-Lived Intangible Asset, Useful Life | '10 years |
TMB [Member] | Customer-Related Intangible Assets [Member] | Minimum [Member] | Infrastructure [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-Lived Intangible Asset, Useful Life | '18 years |
TMB [Member] | Customer-Related Intangible Assets [Member] | Maximum [Member] | Infrastructure [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-Lived Intangible Asset, Useful Life | '21 years |
TMB [Member] | Unpatented Technology [Member] | Industrial [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived Intangible Assets Acquired | $2,300,000 |
Finite-Lived Intangible Asset, Useful Life | '10 years |
Recovered_Sheet5
Summary Of Significant Accounting Policies Summary of Significant Accounting Policies (Details Textual 3) (Emura [Member], USD $) | 0 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Aug. 01, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
Technology-Based and other [Member] | Contractual Rights [Member] | Trademarks [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Finite-lived Intangible Assets Acquired | $16.40 | $15.90 | $0.40 | $0.10 |
Finite-Lived Intangible Asset, Useful Life | ' | '20 years | '3 years | '20 years |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Cash paid during the period for: | ' | ' | ' |
Interest | $29,836 | $24,432 | $27,395 |
Income taxes | 49,393 | 51,098 | 55,728 |
Change In Accounts Payable Related To Purchases Of Property, Plant And Equipment | $2,100 | ($8,600) | $0 |
Acquisition_Acquisition_Detail
Acquisition Acquisition (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
In Thousands, unless otherwise specified | |||
Assets, Current [Abstract] | ' | ' | ' |
Goodwill | $975,576 | $721,755 | $719,350 |
TMB [Member] | ' | ' | ' |
Assets, Current [Abstract] | ' | ' | ' |
Cash and Cash Equivalents | 1,294 | ' | ' |
Accounts Receivable | 41,164 | ' | ' |
Inventories | 100,453 | ' | ' |
Other Current Assets | 4,014 | ' | ' |
Total Current Assets | 146,925 | ' | ' |
Property and equipment | 127,838 | ' | ' |
Goodwill | 243,577 | ' | ' |
Other Intangible Assets | 127,300 | ' | ' |
Deferred Income Taxes | 6,978 | ' | ' |
Other | 603 | ' | ' |
Total Assets | 653,221 | ' | ' |
Current Liabilities [Abstract] | ' | ' | ' |
Accounts Payable | 22,790 | ' | ' |
Accrued Payroll | 3,401 | ' | ' |
Accrued Expenses | 5,434 | ' | ' |
Total Current Liabilities | 31,625 | ' | ' |
Deferred Income Taxes | 4,585 | ' | ' |
Other Long-term Liabilities | 8,781 | ' | ' |
Total Liabilities | 44,991 | ' | ' |
Net Assets Acquired [Abstract] | ' | ' | ' |
Net Assets Acquired | $608,230 | ' | ' |
Acquisition_Details_1
Acquisition (Details 1) (TMB [Member], USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
TMB [Member] | ' | ' |
Pro forma (unaudited): | ' | ' |
Net Sales | $2,941,005 | $2,902,160 |
Net income attributable to Kennametal | $175,804 | $190,863 |
Per share data attributable to Kennametal : | ' | ' |
Basic earnings per share | $2.23 | $2.40 |
Diluted earnings per share | $2.21 | $2.37 |
Acquisition_Details_Textual
Acquisition (Details Textual) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Nov. 04, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Aug. 01, 2013 | Jun. 30, 2014 | |
TMB [Member] | TMB [Member] | TMB [Member] | Emura [Member] | Emura [Member] | Emura [Member] | Small Acquisition in Infrastructure Segment [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Significant Acquisitions and Disposals, Acquisition Costs or Sale Proceeds | ' | ' | ' | ' | ' | $607,000,000 | ' | ' | $40,100,000 | ' |
Acquisitions (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Employees | ' | ' | ' | '1175 | ' | ' | ' | ' | ' | ' |
Number of Primary Operating Facilities | ' | ' | ' | '12 | ' | ' | ' | ' | ' | ' |
Acquisition Related Costs | ' | ' | ' | 8,700,000 | ' | ' | ' | ' | ' | ' |
Goodwill | 975,576,000 | 721,755,000 | 719,350,000 | 243,577,000 | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | 194,900,000 | ' | ' | ' | ' | ' | ' |
Net loss attributable to Kennametal | ' | ' | ' | -10,500,000 | ' | ' | ' | ' | ' | ' |
Acquisition-Related Pre-tax Costs | ' | ' | ' | 8,700,000 | 8,700,000 | ' | ' | ' | ' | ' |
Restructuring and Related Pre-tax Costs | 19,083,000 | ' | ' | 19,100,000 | ' | ' | ' | ' | ' | ' |
Payments to Acquire Businesses, Gross | 634,615,000 | 500,000 | 382,562,000 | ' | ' | ' | 25,600,000 | 500,000 | ' | ' |
Contingent Consideration | 14,000,000 | ' | ' | ' | ' | ' | ' | ' | 14,000,000 | ' |
Small Acquisition, Acquisition Cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,000,000 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | ||||
In Thousands, unless otherwise specified | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | ||||||
Level 2 [Member] | Level 2 [Member] | Level 3 [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ||||
Period Over which Contingent Consideration is Payable | ' | ' | ' | ' | '3 years | ||||
Derivatives | $253 | [1] | $775 | [1] | $253 | [1] | $775 | [1] | ' |
Total assets at fair value | 253 | 775 | 253 | 775 | ' | ||||
Derivatives | 1,053 | [1] | 530 | [1] | 1,053 | [1] | 530 | [1] | ' |
Contingent Consideration | 14,000 | ' | ' | ' | 14,000 | ||||
Total liabilities at fair value | $15,053 | $530 | $1,053 | $530 | $14,000 | ||||
[1] | Currency derivatives are valued based on observable market spot and forward rates and are classified within Level 2 of the fair value hierarchy. |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Fair value of derivatives | ' | ' |
Total derivatives designated as hedging instruments | $220 | $205 |
Total derivatives not designated as hedging instruments | -1,020 | 40 |
Total derivatives | -800 | 245 |
Range Forward Contracts [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ' | ' |
Fair value of derivatives | ' | ' |
Derivative assets designated as hedging instruments | 184 | 658 |
Range Forward Contracts [Member] | Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ' | ' |
Fair value of derivatives | ' | ' |
Derivative liabilities designated as hedging instruments | -6 | -522 |
Range Forward Contracts [Member] | Designated as Hedging Instrument [Member] | Other Assets [Member] | ' | ' |
Fair value of derivatives | ' | ' |
Derivative assets designated as hedging instruments | 42 | 69 |
Currency Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ' | ' |
Fair value of derivatives | ' | ' |
Derivative assets designated as hedging instruments | 27 | 48 |
Currency Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ' | ' |
Fair value of derivatives | ' | ' |
Derivative liabilities designated as hedging instruments | ($1,047) | ($8) |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activities (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Currency Forward Contracts [Member] | Other Expense Income Net [Member] | Not Designated as Hedging Instrument [Member] | ' | ' | ' |
Derivative Instruments, (Gain )Loss Recognized in Income, Net | ' | ' | ' |
Other expense (income), net - currency forward contracts | $1,057 | $1,210 | ($1,149) |
Range Forward And Interest Rate Swap Contracts [Member] [Member] | Cash flow hedging [Member] | ' | ' | ' |
(Gains) losses related to cash flow hedges | ' | ' | ' |
Losses recognized in other comprehensive loss, net | -702 | -611 | -11,165 |
Losses reclassified from accumulated other comprehensive loss into other expense (income), net | $1,399 | $1,116 | $270 |
Derivative_Instruments_and_Hed4
Derivative Instruments and Hedging Activities (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | ||||
Feb. 28, 2012 | Feb. 27, 2009 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Feb. 14, 2012 | |
Forward Starting Interest Rate Swap Contracts [Member] | ||||||
Additional Derivative Instruments and Hedging Activities (Textual) [Abstract] | ' | ' | ' | ' | ' | ' |
Notional amount of the contracts translated into U.S. dollars | ' | ' | ' | ' | ' | $150,000,000 |
Derivative Instruments and Hedging Activities (Textual) [Abstract] | ' | ' | ' | ' | ' | ' |
Terminated Interest Rate Swap Contracts | ' | 200,000,000 | ' | ' | ' | ' |
Recognize loss on outstanding derivatives in the next 12 months | ' | ' | 100,000 | ' | ' | ' |
Gains or losses recognized in earnings due to ineffectiveness and excluded from effectiveness testing | ' | ' | 0 | 0 | ' | ' |
Derivative, Gain (Loss) on Derivative, Net [Abstract] | ' | ' | ' | ' | ' | ' |
Payments for derivative hedging instrument upon settlement | $22,400,000 | ' | $0 | $0 | $22,406,000 | ' |
Derivative_Instruments_and_Hed5
Derivative Instruments and Hedging Activities (Details Textual 1) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 |
Interest Rate Swap Contracts [Member] | Forward Starting Interest Rate Swap Contracts [Member] | Forward Starting Interest Rate Swap Contracts [Member] | |
Interest Expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Reduction in interest expense | $5.90 | ' | ' |
Interest expense | ' | $1.90 | $1.90 |
Inventories_Details
Inventories (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Inventories | ' | ' |
Finished goods | $371,599 | $303,307 |
Work in process and powder blends | 308,129 | 244,180 |
Raw materials | 126,004 | 137,602 |
Inventories at current cost | 805,732 | 685,089 |
Less: LIFO valuation | -101,966 | -106,294 |
Total inventories | $703,766 | $578,795 |
Inventories (Textual) [Abstract] | ' | ' |
Percentage of inventories valued by using LIFO method | 43.00% | 52.00% |
Other_Current_Liabilities_Deta
Other Current Liabilities (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Other Liabilities, Current [Abstract] | ' | ' |
Accrued Employee Benefits | $27,306 | $21,663 |
Payroll State and Local Taxes | 16,401 | 14,885 |
Accrued Restructuring | 9,002 | 0 |
Other | 106,194 | 88,199 |
Total Other Current Liabilities | $158,903 | $124,747 |
Notes_Payable_and_Lines_of_Cre1
Notes Payable and Lines of Credit (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Notes Payable and Lines of Credit (Additional Textual) [Abstract] | ' | ' |
Notes Payable | $72,455,000 | $40,581,000 |
Weighted Average Interest Rate for Notes Payable and Lines of Credit | 1.50% | 2.10% |
Notes Payable to Banks [Member] | ' | ' |
Notes Payable and Lines of Credit (Textual) [Abstract] | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 215,700,000 | ' |
Line of Credit Facility Unused | 143,200,000 | ' |
Notes Payable and Lines of Credit (Additional Textual) [Abstract] | ' | ' |
Notes Payable | $72,500,000 | $40,600,000 |
Longterm_Debt_and_Capital_Leas1
Long-term Debt and Capital Leases (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Long-term Debt and Capital Lease Obligations Current and Noncurrent | ' | ' |
Capital leases | $2,886 | $4,553 |
Other | 15 | 9 |
Total Debt and Capital Leases | 989,328 | 707,364 |
Long-term Debt, Current Maturities [Abstract] | ' | ' |
Long-term Debt, Current Maturities | -7,512 | -3,600 |
Capital Lease, Current Maturities | -135 | -129 |
Other, Current Maturities | -15 | -9 |
Total Current Maturities | -7,662 | -3,738 |
Long-term Debt and Capital Leases, Less Current Maturities | 981,666 | 703,626 |
Euro Denominated Borrowings [Member] | ' | ' |
Long-term Debt and Capital Lease Obligations Current and Noncurrent | ' | ' |
Long-term Debt | 200,112 | ' |
U.S. Dollar Denominated Borrowings [Member] | ' | ' |
Long-term Debt and Capital Lease Obligations Current and Noncurrent | ' | ' |
Long-term Debt | 87,000 | 3,600 |
2.650% Senior Notes due 2019 [Member] | ' | ' |
Long-term Debt and Capital Lease Obligations Current and Noncurrent | ' | ' |
Long-term Debt | 399,595 | 399,519 |
3.875% Senior Unsecured Notes Due in 2022 [Member] | ' | ' |
Long-term Debt and Capital Lease Obligations Current and Noncurrent | ' | ' |
Long-term Debt | $299,720 | $299,683 |
Recovered_Sheet6
Long-Term Debt and Capital Leases (Details 1) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Future Minimum Lease Payments Under Capital Leases | ' | ' |
2015 | $247 | ' |
2016 | 2,080 | ' |
2017 | 601 | ' |
2018 | 199 | ' |
2019 | 0 | ' |
After 2020 | 0 | ' |
Total Future Minimum Lease Payments | 3,127 | ' |
Less Amount Representing Interest | -241 | ' |
Capital Lease Obligations | $2,886 | $4,553 |
Long_Term_Debt_and_Capital_Lea1
Long -Term Debt and Capital Leases (Details Textual) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Nov. 07, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Feb. 29, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Feb. 14, 2012 | Jun. 15, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Oct. 21, 2011 | |
US Dollar Denominated Borrowings [Member] | US Dollar Denominated Borrowings [Member] | 2.650% Senior Notes due 2019 [Member] | 2.650% Senior Notes due 2019 [Member] | 2.650% Senior Notes due 2019 [Member] | 3.875% Senior Unsecured Notes Due in 2022 [Member] | 3.875% Senior Unsecured Notes Due in 2022 [Member] | 3.875% Senior Unsecured Notes Due in 2022 [Member] | 3.875% Senior Unsecured Notes Due in 2022 [Member] | 7.2% Senior Unsecured Notes Due in 2012 [Member] | 2011 Credit Agreement [Member] | 2011 Credit Agreement [Member] | 2011 Credit Agreement [Member] | |||
Long-Term Debt and Capital Leases (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum Borrowing Capacity under the 2011 Credit Agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $600,000,000 |
Borrowing outstanding under 2011 Credit Agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 287,100,000 | 3,600,000 | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | 1.20% | 1.10% | 2.65% | ' | ' | ' | ' | ' | 3.88% | 7.20% | ' | ' | ' |
Debt Instrument, Interest Rate, Effective Percentage Rate Range, Minimum | 1.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Effective Percentage Rate Range, Maximum | 1.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of Long Term Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' |
Debt Instrument, Unamortized Discount | ' | ' | ' | ' | ' | 400,000 | 500,000 | ' | 300,000 | 300,000 | ' | ' | ' | ' | ' |
Long Term Debt and Capital Leases (Additional Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum Interest Rate Stated Percentage under Capital Lease with terms | 1.60% | 2.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum Interest Rate Stated Percentage under Capital Leases with terms | 5.40% | 5.40% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Issuance of Senior Long-term Debt | ' | ' | ' | ' | 400,000,000 | ' | ' | 300,000,000 | ' | ' | ' | ' | ' | ' | ' |
Future Principal Maturities of Long-term Debt in 2015 | 7,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future Principal Maturities of Long-term Debt Beyond 2019 | 978,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital Lease Obligations | $2,886,000 | $4,553,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Income Before Income Taxes | ' | ' | ' |
United States | $59,160 | $87,499 | $95,410 |
International | 169,649 | 179,110 | 294,559 |
Total Income Before Income Taxes | 228,809 | 266,609 | 389,969 |
Current Income Taxes | ' | ' | ' |
Federal | 15,108 | 10,645 | 23,313 |
State | 896 | 3,441 | 2,275 |
International | 27,488 | 45,375 | 24,946 |
Total Current Income Taxes | 43,492 | 59,461 | 50,534 |
Federal | 10,157 | 12,951 | 13,637 |
State | -62 | 2,433 | 4,104 |
International | 13,024 | -15,152 | 10,861 |
Provision for income taxes | $66,611 | $59,693 | $79,136 |
Effective tax rate | 29.10% | 22.40% | 20.30% |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Reconciliation of Income Taxes Computed Using the Statutory U.S. Income Tax Rate and the Provision for Income Taxes [Abstract] | ' | ' | ' |
Income Taxes at U.S Statutory Rate | $80,083 | $93,313 | $136,489 |
State Income Taxes, Net of Federal Tax Benefits | 1,593 | 4,051 | 4,110 |
US Income Tax Provided On International Income | 2,423 | 3,067 | 8,164 |
Combined Tax Effects of International Income | -22,580 | -30,692 | -50,574 |
Change in Valuation Allowance and Other Uncertain Tax Positions | -2,603 | -4,550 | -16,243 |
Impact of Domestic Production Activities Deduction | -942 | -3,546 | -3,810 |
Research and Development Credit | -1,385 | -4,141 | -1,515 |
Change In Indefinite Reinvestment Assertion | 7,170 | ' | ' |
Other | 2,852 | 2,191 | 2,515 |
Provision for income taxes | $66,611 | $59,693 | $79,136 |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Tax Assets | ' | ' |
Net Operating Loss Carryforwards | $52,812 | $50,984 |
Inventory Valuation and Reserves | 20,612 | 21,935 |
Pension Benefits | 2,427 | 6,402 |
Other Postretirement Benefits | 8,432 | 9,163 |
Accrued Employee Benefits | 29,034 | 33,666 |
Other Accrued Liabilities | 12,981 | 9,368 |
Hedging Activities | 14,996 | 13,994 |
Tax Credit and Other Carryforwards | 2,082 | 1,708 |
Other | 14,617 | 20,918 |
Total | 157,993 | 168,138 |
Valuation Allowance | -17,860 | -15,569 |
Total Deferred Tax Liabilities | 140,133 | 152,569 |
Deferred Tax Liabilities | ' | ' |
Tax Depreciation in Excess of Book | 107,171 | 107,623 |
Intangible Assets | 70,957 | 64,614 |
Total Deferred Tax Liabilities | 178,128 | 172,237 |
Total Net Deferred Tax Liabilities | ($37,995) | ($19,668) |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' |
Balance at beginning of year | $26,798 | $7,298 |
Increases for tax positions of prior years | 1,461 | 0 |
Decreases for tax positions of prior years | -6,982 | ' |
Increases for tax positions related to the current year | 116 | 23,231 |
Decreases related to settlement with taxing authority | -2,161 | -3,813 |
Foreign currency translation | 1,134 | 82 |
Balance at end of year | $20,366 | $26,798 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Income Tax (Textual) [Abstract] | ' | ' | ' |
Tax Adjustments Related to Settlements of Uncertain Tax Positions | $2,200,000 | $4,200,000 | $9,000,000 |
Valuation Allowance Adjustment | 1,200,000 | 6,900,000 | ' |
Change In Indefinite Reinvestment Assertion | 7,170,000 | ' | ' |
Tax Benefits associated with Net Operating Loss Carryforwards in Federal, State and Foreign Jurisdictions | 52,812,000 | 50,984,000 | ' |
Tax Benefits Expiring Through 2019 | 4,400,000 | ' | ' |
Tax Benefits Expiring Through 2024 | 11,300,000 | ' | ' |
Tax Benefits Expiring Through 2029 | 2,000,000 | ' | ' |
Tax Benefits Expiring Through 2034 | 100,000 | ' | ' |
Tax Benefits that Do Not Expire | 35,000,000 | ' | ' |
Valuation Allowance | 17,860,000 | 15,569,000 | ' |
Change in Valuation Allowance, Current Year | 2,300,000 | ' | ' |
Unremitted Earnings of Non-U.S. Subsidiaries and Affiliates | 2,427,100,000 | ' | ' |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 2,400,000 | 4,300,000 | 6,400,000 |
Interest Expense | 800,000 | ' | ' |
Reduction in Interest | ' | 1,900,000 | 900,000 |
Penalty Through Goodwill | ' | ' | 300,000 |
Interest Accrued | 1,300,000 | 700,000 | ' |
Penalties Accrued | 400,000 | 400,000 | ' |
Deferred Tax Asset Related to Position Recorded in US | 22,500,000 | ' | ' |
Reduction in Unrecognized Tax Benefit | 7,000,000 | ' | ' |
Reasonably Possible amount of Unrecognized Tax Benefits within next 12 Months Could Decrease | $400,000 | ' | ' |
Pension_and_Other_Postretireme2
Pension and Other Postretirement Benefits (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Change in Plan Assets | ' | ' | ' |
Fair Value of Plans' Assets, End of Year | $884,264 | $796,079 | ' |
Pension plans contribution [Member] | ' | ' | ' |
Change in Benefit Obligation | ' | ' | ' |
Benefit Obligation, Beginning of Year | 890,831 | 958,306 | ' |
Service Cost | 6,910 | 7,797 | 6,982 |
Interest Cost | 41,084 | 38,183 | 42,107 |
Participant Contributions | 15 | 28 | ' |
Actuarial Losses (Gains) | 56,925 | -71,974 | ' |
Benefits and Expenses Paid | -43,948 | -40,898 | ' |
Currency Translation Adjustment | 16,994 | 173 | ' |
Effect of Acquired Business | 1,093 | 0 | ' |
Plan Curtailments / Settlements | 0 | -784 | ' |
Benefit Obligation, End of Year | 969,904 | 890,831 | 958,306 |
Change in Plan Assets | ' | ' | ' |
Fair Value of Plans' Assets, Beginning of Year | 796,079 | 783,843 | ' |
Actual Return on Plans' Assets | 108,640 | 47,660 | ' |
Company Contributions | 10,902 | 9,788 | ' |
Participant Contributions | 15 | 28 | ' |
Benefits and expenses paid | -43,948 | -40,898 | ' |
Plan Curtailments / Settlements | 0 | -784 | ' |
Currency translation adjustments | 12,576 | -3,558 | ' |
Fair Value of Plans' Assets, End of Year | 884,264 | 796,079 | 783,843 |
Funded Status of Plans | -85,640 | -94,752 | ' |
Amounts Recognized in Balance Sheet | ' | ' | ' |
Long-term Prepaid Benefit | 81,307 | 57,385 | ' |
Short-term Accrued Benefit Obligation | -8,679 | -9,353 | ' |
Accrued Pension Benefits | -158,268 | -142,784 | ' |
Net Amount Recognized | ($85,640) | ($94,752) | ' |
Pension_and_Other_Postretireme3
Pension and Other Postretirement Benefits (Details 1) (Pension plans contribution [Member], USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Pension plans contribution [Member] | ' | ' |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract] | ' | ' |
Unrecognized Net Actuarial Losses | $121,799 | $113,452 |
Unrecognized Net Prior Service Credits | -939 | -1,498 |
Unrecognized Transition Obligations | 1,105 | 1,101 |
Total | $121,965 | $113,055 |
Pension_and_Other_Postretireme4
Pension and Other Postretirement Benefits (Details 2) (Pension plans contribution [Member], USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Pension plans contribution [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Project Benefit Obligation | $190,679 | $184,805 |
Accumulated Benefit Obligation | 189,391 | 183,056 |
Fair Value of Plan Assets | $23,390 | $34,405 |
Pension_and_Other_Postretireme5
Pension and Other Postretirement Benefits (Details 3) (Pension plans contribution [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Pension plans contribution [Member] | ' | ' | ' |
Net periodic pension (income) cost | ' | ' | ' |
Service cost | $6,910 | $7,797 | $6,982 |
Interest cost | 41,084 | 38,183 | 42,107 |
Expected Return on Plans' Assets | -59,527 | -56,111 | -51,376 |
Amortization of transition obligation | 78 | 69 | 65 |
Amortization of prior service cost | -234 | -195 | -186 |
Settlement Loss | 0 | 158 | 1,253 |
Recognition of actuarial losses | 2,642 | 14,961 | 8,259 |
Net Periodic Benefit (Income) Cost | ($9,047) | $4,862 | $7,104 |
Pension_and_Other_Postretireme6
Pension and Other Postretirement Benefits (Details 4) (Other Postretirement Benefit Plan, Defined Benefit [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Other Postretirement Benefit Plan, Defined Benefit [Member] | ' | ' | ' |
Change in Benefit Obligation | ' | ' | ' |
Benefit Obligation, Beginning of Year | $21,422 | $24,574 | ' |
Service Cost | 55 | 72 | 75 |
Interest Cost | 1,006 | 938 | 1,029 |
Actuarial Losses (Gains) | 3,658 | -907 | ' |
Benefits Paid | -1,665 | -3,255 | ' |
Benefit Obligation, End of Year | 24,476 | 21,422 | 24,574 |
Funded Status of Plans | -24,476 | -21,422 | ' |
Amounts Recognized in Balance Sheet | ' | ' | ' |
Short-term Accrued Benefit Obligation | -1,960 | -1,961 | ' |
Accrued Postretirement Benefits | -22,516 | -19,461 | ' |
Net Amount Recognized | ($24,476) | ($21,422) | ' |
Pension_and_Other_Postretireme7
Pension and Other Postretirement Benefits (Details 5) (Other postretirement benefit plans [Member], USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Other postretirement benefit plans [Member] | ' | ' |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | ' | ' |
Unrecognized Net Actuarial Losses | $8,554 | $5,213 |
Unrecognized Net Prior Service Credits | -452 | -563 |
Total | $8,102 | $4,650 |
Pension_and_Other_Postretireme8
Pension and Other Postretirement Benefits (Details 6) (Other postretirement benefit plans [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Other postretirement benefit plans [Member] | ' | ' | ' |
Net periodic other postretirement benefit costs | ' | ' | ' |
Service cost | $55 | $72 | $75 |
Interest cost | 1,006 | 938 | 1,029 |
Amortization of prior service credit | -111 | -111 | -89 |
Recognition of actuarial loss (gains) | 317 | 417 | -56 |
Net Periodic Benefit (Income) Cost | $1,267 | $1,316 | $959 |
Pension_and_Other_Postretireme9
Pension and Other Postretirement Benefits (Details 7) | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
U.S. Plans [Member] | ' | ' | ' |
Discount Rate | ' | ' | ' |
Discount Rate | 4.40% | 4.90% | 4.00% |
Minimum [Member] | U.S. Plans [Member] | ' | ' | ' |
Rates of Future Salary Increases [Abstract] | ' | ' | ' |
Rate of Future Salary Increase | 3.00% | 3.00% | 3.00% |
Minimum [Member] | International Plans [Member] | ' | ' | ' |
Discount Rate | ' | ' | ' |
Discount Rate | 2.90% | 3.50% | 4.00% |
Rates of Future Salary Increases [Abstract] | ' | ' | ' |
Rate of Future Salary Increase | 2.50% | 2.50% | 2.50% |
Maximum [Member] | U.S. Plans [Member] | ' | ' | ' |
Rates of Future Salary Increases [Abstract] | ' | ' | ' |
Rate of Future Salary Increase | 5.00% | 5.00% | 5.00% |
Maximum [Member] | International Plans [Member] | ' | ' | ' |
Discount Rate | ' | ' | ' |
Discount Rate | 4.30% | 4.80% | 5.00% |
Rates of Future Salary Increases [Abstract] | ' | ' | ' |
Rate of Future Salary Increase | 3.00% | 3.00% | 4.00% |
Recovered_Sheet7
Pension and Other Postretirement Benefits (Details 8) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
U.S. Plans [Member] | ' | ' | ' |
Discount Rate [Abstract] | ' | ' | ' |
Discount Rate | 4.90% | 4.00% | 5.50% |
Rate of Return on Plans Assets [Abstract] | ' | ' | ' |
Rate of Return on Plan Assets | 8.00% | 8.00% | 8.00% |
International Plans [Member] | ' | ' | ' |
Rate of Return on Plans Assets [Abstract] | ' | ' | ' |
Rate of Return on Plan Assets | ' | 5.60% | 5.80% |
Minimum [Member] | U.S. Plans [Member] | ' | ' | ' |
Rates of Future Salary Increases [Abstract] | ' | ' | ' |
Rate of Future Salary Increases | 3.00% | 3.00% | 3.00% |
Rate of Return on Plans Assets [Abstract] | ' | ' | ' |
Rate of Return on Plan Assets | 5.00% | ' | ' |
Minimum [Member] | International Plans [Member] | ' | ' | ' |
Discount Rate [Abstract] | ' | ' | ' |
Discount Rate | 3.50% | 4.00% | 5.50% |
Rates of Future Salary Increases [Abstract] | ' | ' | ' |
Rate of Future Salary Increases | 2.50% | 2.50% | 2.00% |
Maximum [Member] | U.S. Plans [Member] | ' | ' | ' |
Rates of Future Salary Increases [Abstract] | ' | ' | ' |
Rate of Future Salary Increases | 5.00% | 5.00% | 5.00% |
Rate of Return on Plans Assets [Abstract] | ' | ' | ' |
Rate of Return on Plan Assets | 6.00% | ' | ' |
Maximum [Member] | International Plans [Member] | ' | ' | ' |
Discount Rate [Abstract] | ' | ' | ' |
Discount Rate | 4.80% | 5.50% | 5.80% |
Rates of Future Salary Increases [Abstract] | ' | ' | ' |
Rate of Future Salary Increases | 3.00% | 4.00% | 3.50% |
Recovered_Sheet8
Pension and Other Postretirement Benefits (Details 9) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Annual assumed rate of increase in per capita cost of covered benefits for postretirement benefit plans | ' | ' | ' |
Health Care Cost Trend Rate Assumed for Next Year | 7.50% | 7.80% | 8.10% |
Rate to which the Cost Trend Rate Gradually Declines | 5.00% | 4.50% | 4.50% |
Year that the Rate Reaches the Rate at which it is assumed to Remain | '2024 | '2029 | '2029 |
Calculated effect of change on assumption used to calculate cost components and obligations of healthcare plans | ' | ' | ' |
Effect on Total Service and Interest Cost Components, Increase | $50 | ' | ' |
Effect on Total Service and Interest Cost Components, Decrease | -44 | ' | ' |
Effect on Other Postretirement Obligation, Increase | 1,266 | ' | ' |
Effect on Other Postretirement Obligation, Decrease | ($1,112) | ' | ' |
Defined Benefit Plan Asset Allocations | ' | ' | ' |
Equity | 34.00% | 34.00% | ' |
Fixed Income | 63.00% | 61.00% | ' |
Other | 3.00% | 5.00% | ' |
Equity, Target Percentage | 30.00% | ' | ' |
Fixed Income, Target Percentage | 70.00% | ' | ' |
Other, Target Percentage | 0.00% | ' | ' |
Recovered_Sheet9
Pension and Other Postretirement Benefits (Details 10) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Benefit Plan Assets Classified Under Appropriate Level of Fair Value Hierarchy [Abstract] | ' | ' |
Defined Benefit Plans', Fair Value of Plan Assets | $884,264 | $796,079 |
Level 1 [Member] | ' | ' |
Benefit Plan Assets Classified Under Appropriate Level of Fair Value Hierarchy [Abstract] | ' | ' |
Defined Benefit Plans', Fair Value of Plan Assets | 104,683 | 91,045 |
Level 2 [Member] | ' | ' |
Benefit Plan Assets Classified Under Appropriate Level of Fair Value Hierarchy [Abstract] | ' | ' |
Defined Benefit Plans', Fair Value of Plan Assets | 779,581 | 705,034 |
Corporate Fixed Income Securities [Member] | ' | ' |
Benefit Plan Assets Classified Under Appropriate Level of Fair Value Hierarchy [Abstract] | ' | ' |
Defined Benefit Plans', Fair Value of Plan Assets | 409,167 | 363,027 |
Corporate Fixed Income Securities [Member] | Level 2 [Member] | ' | ' |
Benefit Plan Assets Classified Under Appropriate Level of Fair Value Hierarchy [Abstract] | ' | ' |
Defined Benefit Plans', Fair Value of Plan Assets | 409,167 | 363,027 |
Value Funds [Member] | ' | ' |
Benefit Plan Assets Classified Under Appropriate Level of Fair Value Hierarchy [Abstract] | ' | ' |
Defined Benefit Plans', Fair Value of Plan Assets | 117,479 | 105,903 |
Value Funds [Member] | Level 2 [Member] | ' | ' |
Benefit Plan Assets Classified Under Appropriate Level of Fair Value Hierarchy [Abstract] | ' | ' |
Defined Benefit Plans', Fair Value of Plan Assets | 117,479 | 105,903 |
Growth Funds [Member] | ' | ' |
Benefit Plan Assets Classified Under Appropriate Level of Fair Value Hierarchy [Abstract] | ' | ' |
Defined Benefit Plans', Fair Value of Plan Assets | 64,830 | 57,477 |
Growth Funds [Member] | Level 2 [Member] | ' | ' |
Benefit Plan Assets Classified Under Appropriate Level of Fair Value Hierarchy [Abstract] | ' | ' |
Defined Benefit Plans', Fair Value of Plan Assets | 64,830 | 57,477 |
Balanced Funds [Member] | ' | ' |
Benefit Plan Assets Classified Under Appropriate Level of Fair Value Hierarchy [Abstract] | ' | ' |
Defined Benefit Plans', Fair Value of Plan Assets | 22,262 | 19,370 |
Balanced Funds [Member] | Level 2 [Member] | ' | ' |
Benefit Plan Assets Classified Under Appropriate Level of Fair Value Hierarchy [Abstract] | ' | ' |
Defined Benefit Plans', Fair Value of Plan Assets | 22,262 | 19,370 |
Common Stock [Member] | ' | ' |
Benefit Plan Assets Classified Under Appropriate Level of Fair Value Hierarchy [Abstract] | ' | ' |
Defined Benefit Plans', Fair Value of Plan Assets | 101,527 | 89,420 |
Common Stock [Member] | Level 1 [Member] | ' | ' |
Benefit Plan Assets Classified Under Appropriate Level of Fair Value Hierarchy [Abstract] | ' | ' |
Defined Benefit Plans', Fair Value of Plan Assets | 101,527 | 89,420 |
US Government Securities [Member] | ' | ' |
Benefit Plan Assets Classified Under Appropriate Level of Fair Value Hierarchy [Abstract] | ' | ' |
Defined Benefit Plans', Fair Value of Plan Assets | 66,709 | 54,857 |
US Government Securities [Member] | Level 2 [Member] | ' | ' |
Benefit Plan Assets Classified Under Appropriate Level of Fair Value Hierarchy [Abstract] | ' | ' |
Defined Benefit Plans', Fair Value of Plan Assets | 66,709 | 54,857 |
Foreign Government Securities [Member] | ' | ' |
Benefit Plan Assets Classified Under Appropriate Level of Fair Value Hierarchy [Abstract] | ' | ' |
Defined Benefit Plans', Fair Value of Plan Assets | 41,202 | 29,115 |
Foreign Government Securities [Member] | Level 2 [Member] | ' | ' |
Benefit Plan Assets Classified Under Appropriate Level of Fair Value Hierarchy [Abstract] | ' | ' |
Defined Benefit Plans', Fair Value of Plan Assets | 41,202 | 29,115 |
Other Fixed Income Securities [Member] | ' | ' |
Benefit Plan Assets Classified Under Appropriate Level of Fair Value Hierarchy [Abstract] | ' | ' |
Defined Benefit Plans', Fair Value of Plan Assets | 36,469 | 36,750 |
Other Fixed Income Securities [Member] | Level 2 [Member] | ' | ' |
Benefit Plan Assets Classified Under Appropriate Level of Fair Value Hierarchy [Abstract] | ' | ' |
Defined Benefit Plans', Fair Value of Plan Assets | 36,469 | 36,750 |
Other [Member] | ' | ' |
Benefit Plan Assets Classified Under Appropriate Level of Fair Value Hierarchy [Abstract] | ' | ' |
Defined Benefit Plans', Fair Value of Plan Assets | 24,619 | 40,160 |
Other [Member] | Level 1 [Member] | ' | ' |
Benefit Plan Assets Classified Under Appropriate Level of Fair Value Hierarchy [Abstract] | ' | ' |
Defined Benefit Plans', Fair Value of Plan Assets | 3,156 | 1,625 |
Other [Member] | Level 2 [Member] | ' | ' |
Benefit Plan Assets Classified Under Appropriate Level of Fair Value Hierarchy [Abstract] | ' | ' |
Defined Benefit Plans', Fair Value of Plan Assets | $21,463 | $38,535 |
Recovered_Sheet10
Pension and Other Postretirement Benefits (Details Textual) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Eligible Age for Availing Postretirement Healthcare Benefits | '55 | ' | ' |
Years of Service | '10 | ' | ' |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | ' | ' | ' |
Defined Contribution Plan, Cost Recognized | $20,386,000 | $16,701,000 | $19,367,000 |
Pension plans contribution [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Accumulated Benefit Obligation for all Defined Benefit Pension Plans | 956,700,000 | 879,300,000 | ' |
Net Periodic Pension Cost | -9,047,000 | 4,862,000 | 7,104,000 |
Projected Benefit Payments for 2015 | 49,000,000 | ' | ' |
Projected Benefit Payments for 2016 | 48,800,000 | ' | ' |
Projected Benefit Payments for 2017 | 50,500,000 | ' | ' |
Projected Benefit Payments for 2018 | 52,700,000 | ' | ' |
Projected Benefit Payments for 2019 | 55,100,000 | ' | ' |
Projected Benefit Payments for 2020 through 2024 | 301,500,000 | ' | ' |
Accumulated Other Comprehensive Loss Expected to be Recognized in Net Periodic Pension Cost during 2015 related to Net Actuarial Losses | 4,100,000 | ' | ' |
Accumulated Other Comprehensive Loss Expected to be Recognized in Net Periodic Pension Cost during 2015 related to Transition Obligations | 100,000 | ' | ' |
Accumulated Other Comprehensive Income Expected to be Recognized in Net Periodic Pension Cost during 2015 related to Prior Service Credit | 300,000 | ' | ' |
Estimated Future Employer Contributions in 2015 | 11,500,000 | ' | ' |
Other postretirement benefit plans [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Net Periodic Pension Cost | 1,267,000 | 1,316,000 | 959,000 |
Projected Benefit Payments for 2015 | 2,300,000 | ' | ' |
Projected Benefit Payments for 2016 | 2,200,000 | ' | ' |
Projected Benefit Payments for 2017 | 2,200,000 | ' | ' |
Projected Benefit Payments for 2018 | 2,100,000 | ' | ' |
Projected Benefit Payments for 2019 | 2,000,000 | ' | ' |
Projected Benefit Payments for 2020 through 2024 | 8,700,000 | ' | ' |
Accumulated Other Comprehensive Loss Expected to be Recognized in Net Periodic Pension Cost during 2015 related to Net Actuarial Losses | 800,000 | ' | ' |
Accumulated Other Comprehensive Income Expected to be Recognized in Net Periodic Pension Cost during 2015 related to Prior Service Credit | 100,000 | ' | ' |
Estimated Future Employer Contributions in 2015 | $2,300,000 | ' | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive (Loss) Income (Details 1) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Post-retirement Benefit Plans [Member] | Post-retirement Benefit Plans [Member] | Post-retirement Benefit Plans [Member] | Currency Translation Adjustment [Member] | Currency Translation Adjustment [Member] | Currency Translation Adjustment Relating to Noncontrolling Interest [Member] | Currency Translation Adjustment Relating to Noncontrolling Interest [Member] | Derivatives [Member] | Derivatives [Member] | Derivatives [Member] | Noncontrolling Interests [Member] | Noncontrolling Interests [Member] | Noncontrolling Interests [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive (Loss) Income | ($89,004) | ($150,662) | ($83,936) | ($132,991) | $0 | $7,413 | ($4,424) | $721 | $1,271 | ($12,481) | ($13,247) | $0 | $721 | $1,271 | ' |
Net current period other comprehensive loss | 22,873 | 61,658 | -9,806 | 49,055 | ' | 31,398 | 11,837 | ' | ' | 1,281 | 766 | ' | ' | ' | ' |
Other comprehensive loss before reclassifications | 18,702 | 48,537 | -11,990 | 39,376 | ' | 31,398 | 9,772 | 366 | -550 | -706 | -611 | ' | 366 | -550 | ' |
Amounts reclassified from accumulated other comprehensive loss | 4,171 | 11,056 | 2,184 | 9,679 | ' | ' | ' | ' | ' | 1,987 | 1,377 | ' | ' | ' | ' |
Stock Issued During Period, Value, Other | ' | 2,065 | ' | ' | ' | ' | 2,065 | ' | ' | ' | ' | ' | 0 | 7,727 | 0 |
Net current period other comprehensive loss | ' | ' | ' | ' | ' | ' | ' | 366 | -550 | ' | ' | ' | 366 | -550 | -3,679 |
Accumulated Other Comprehensive (Loss) Income | ($66,131) | ($89,004) | ($93,742) | ($83,936) | $0 | $38,811 | $7,413 | $1,087 | $721 | ($11,200) | ($12,481) | $0 | $1,087 | $721 | $1,271 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Loss (Details 2) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Post-retirement Benefit Plans [Member] | Post-retirement Benefit Plans [Member] | Post-retirement Benefit Plans [Member] | Post-retirement Benefit Plans [Member] | Currency Translation Adjustment [Member] | Currency Translation Adjustment [Member] | Currency Translation Adjustment [Member] | Derivatives [Member] | Derivatives [Member] | Derivatives [Member] | Derivatives [Member] | Currency Translation Adjustment Relating to Noncontrolling Interest [Member] | Currency Translation Adjustment Relating to Noncontrolling Interest [Member] | Currency Translation Adjustment Relating to Noncontrolling Interest [Member] | Noncontrolling Interests [Member] | Noncontrolling Interests [Member] | Noncontrolling Interests [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive (Loss) Income | ($66,131) | ($89,004) | ($150,662) | ($93,742) | ($83,936) | $0 | ($132,991) | $38,811 | $7,413 | ($4,424) | ($11,200) | ($12,481) | $0 | ($13,247) | $1,087 | $721 | $1,271 | $1,087 | $721 | $1,271 |
Other comprehensive loss before reclassifications | 18,702 | 48,537 | ' | -11,990 | 39,376 | ' | ' | 31,398 | 9,772 | ' | -706 | -611 | ' | ' | 366 | -550 | ' | 366 | -550 | ' |
Other comprehensive income (loss), net of tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 366 | -550 | ' | 366 | -550 | -3,679 |
Amounts reclassified from accumulated other comprehensive loss | 4,171 | 11,056 | ' | 2,184 | 9,679 | ' | ' | ' | ' | ' | 1,987 | 1,377 | ' | ' | ' | ' | ' | ' | ' | ' |
Sale of subsidiary stock to noncontrolling interests | ' | 2,065 | ' | ' | ' | ' | ' | ' | 2,065 | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 7,727 | 0 |
Net current period other comprehensive loss | $22,873 | $61,658 | ' | ($9,806) | $49,055 | ' | ' | $31,398 | $11,837 | ' | $1,281 | $766 | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated_Other_Comprehensiv4
Accumulated Other Comprehensive Loss (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Currency Exchange Contracts | ($2,172) | ($2,313) | $775 |
Tax (Benefit) Expense | 66,611 | 59,693 | 79,136 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivatives [Member] | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Total Before Tax | 3,205 | 2,235 | ' |
Tax (Benefit) Expense | 1,218 | 858 | ' |
Net of tax | 1,987 | 1,377 | ' |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Post-retirement Benefit Plans [Member] | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Amortization of Transition Obligations | 78 | 69 | ' |
Amortization of Prior Service Credit | -345 | -306 | ' |
Recognition of Actuarial Losses | 2,959 | 15,378 | ' |
Total Before Tax | 2,692 | 15,141 | ' |
Tax (Benefit) Expense | -508 | 5,462 | ' |
Net of tax | 2,184 | 9,679 | ' |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Forward Starting Interest Rate Swaps [Member] | Derivatives [Member] | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Forward Starting Interest Rate Swap Contracts | 1,945 | 1,872 | ' |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Currency Exchange Contracts [Member] | Derivatives [Member] | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Currency Exchange Contracts | $1,260 | $363 | ' |
Restructuring_Details
Restructuring (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Restructuring Reserve [Abstract] | ' |
Beginning Balance | $0 |
Expense | 17,789 |
Asset Write-Down | -3,408 |
Translation | 56 |
Cash Expenditures | -5,435 |
Ending Balance | 9,002 |
Industrial [Member] | ' |
Restructuring Reserve [Abstract] | ' |
Beginning Balance | 0 |
Expense | 12,501 |
Asset Write-Down | -2,395 |
Translation | 38 |
Cash Expenditures | -3,818 |
Ending Balance | 6,326 |
Industrial [Member] | Severance [Member] | ' |
Restructuring Reserve [Abstract] | ' |
Beginning Balance | 0 |
Expense | 9,536 |
Asset Write-Down | 0 |
Translation | 11 |
Cash Expenditures | -3,732 |
Ending Balance | 5,815 |
Industrial [Member] | Facilities [Member] | ' |
Restructuring Reserve [Abstract] | ' |
Beginning Balance | 0 |
Expense | 2,829 |
Asset Write-Down | -2,395 |
Translation | 14 |
Cash Expenditures | -4 |
Ending Balance | 444 |
Industrial [Member] | Other [Member] | ' |
Restructuring Reserve [Abstract] | ' |
Beginning Balance | 0 |
Expense | 136 |
Asset Write-Down | 0 |
Translation | 13 |
Cash Expenditures | -82 |
Ending Balance | 67 |
Infrastructure [Member] | ' |
Restructuring Reserve [Abstract] | ' |
Beginning Balance | 0 |
Expense | 5,288 |
Asset Write-Down | -1,013 |
Translation | 18 |
Cash Expenditures | -1,617 |
Ending Balance | 2,676 |
Infrastructure [Member] | Severance [Member] | ' |
Restructuring Reserve [Abstract] | ' |
Beginning Balance | 0 |
Expense | 4,034 |
Asset Write-Down | 0 |
Translation | 4 |
Cash Expenditures | -1,580 |
Ending Balance | 2,458 |
Infrastructure [Member] | Facilities [Member] | ' |
Restructuring Reserve [Abstract] | ' |
Beginning Balance | 0 |
Expense | 1,197 |
Asset Write-Down | -1,013 |
Translation | 8 |
Cash Expenditures | -2 |
Ending Balance | 190 |
Infrastructure [Member] | Other [Member] | ' |
Restructuring Reserve [Abstract] | ' |
Beginning Balance | 0 |
Expense | 57 |
Asset Write-Down | 0 |
Translation | 6 |
Cash Expenditures | -35 |
Ending Balance | $28 |
Restructuring_Details_Textual
Restructuring (Details Textual) (USD $) | 12 Months Ended |
Jun. 30, 2014 | |
Restructuring Cost and Reserve [Line Items] | ' |
Restructuring and Related Cost, Incurred Cost | $19,083,000 |
Restructuring Charges | 17,789,000 |
Restructuring Charges Related to Inventory Disposals | 200,000 |
Restructuring Related Charges Recorded in Cost of Goods Sold | 1,200,000 |
Restructuring Related Charges Recorded in Operating Expenses | 100,000 |
Minimum [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Restructuring and Related Cost, Expected Cost | 40,000,000 |
Maximum [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Restructuring and Related Cost, Expected Cost | $50,000,000 |
Financial_Instruments_Details
Financial Instruments (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Millions, unless otherwise specified | ||
Fair Value [Line Items] | ' | ' |
Debt Instrument, Fair Value Disclosure | $705.30 | $680.10 |
Contracts Translated to U S Dollars [Member] | ' | ' |
Fair Value [Line Items] | ' | ' |
Notional Amount of Foreign Exchange Contracts | 91.1 | 102.2 |
Estimated Amount Of Receivable On Settlement Of Foreign Exchange Contracts | 0.2 | 0.2 |
Foreign Exchange Contract [Member] | ' | ' |
Fair Value [Line Items] | ' | ' |
Notional Amount of Foreign Exchange Contracts | $91.10 | $102.20 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (Stock Option [Member]) | 12 Months Ended | |||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | ||||
Stock Option [Member] | ' | ' | ' | |||
Assumptions used in valuation of stock options | ' | ' | ' | |||
Risk-free interest rate | 1.30% | 0.60% | 1.10% | |||
Expected life (years) | '4 years 6 months | [1] | '4 years 6 months | [1] | '4 years 6 months | [1] |
Expected volatility | 40.30% | [2] | 49.50% | [2] | 47.60% | [2] |
Expected dividend yield | 1.70% | 1.50% | 1.50% | |||
[1] | Expected life is derived from historical experience. | |||||
[2] | Expected volatility is based on the implied historical volatility of our stock. |
StockBased_Compensation_Detail1
Stock-Based Compensation (Details 1) (USD $) | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 |
Changes in stock options | ' |
Options outstanding, Beginning of Period | 2,729,068 |
Options, Granted | 346,127 |
Options, Exercised | -769,672 |
Options, Lapsed and Forfeited | -40,699 |
Options outstanding, End of Period | 2,264,824 |
Options vested and expected to vest, June 30, 2014 | 2,236,967 |
Options exercisable, June 30, 2014 | 1,475,761 |
Weighted Average Exercise Price, Options outstanding, Beginning of Period | $30.40 |
Weighted Average Exercise Price, Granted | $45.22 |
Weighted Average Exercise Price, Exercised | $26.16 |
Weighted Average Exercise Price, Lapsed and Forfeited | $39.47 |
Weighted Average Exercise Price, Options outstanding, End of Period | $33.95 |
Weighted Average Exercise Price, Option vested and expected to vest, June 30, 2014 | $33.85 |
Weighted Average Exercise Price, Options exercisable, June 30, 2014 | $31 |
Weighted Average Remaining Life, Options outstanding, June 30, 2014 | '5 years 8 months 7 days |
Weighted Average Remaining Life, Options vested and expected to vest, June 30, 2014 | '5 years 7 months 24 days |
Weighted Average Remaining Life, Options exercisable, June 30, 2014 | '4 years 5 months 11 days |
Aggregate Intrinsic value, Options outstanding, June 30, 2014 | $27,927 |
Aggregate Intrinsic Value, Options vested and expected to vest, June 30, 2014 | 27,807 |
Aggregate Intrinsic Value, Options exercisable, June 30, 2014 | $22,549 |
StockBased_Compensation_Detail2
Stock-Based Compensation (Details 2) (USD $) | 12 Months Ended |
Jun. 30, 2014 | |
Restricted Stock Units - Performance Vesting [Member] | ' |
Changes in Restricted Stock Units | ' |
Unvested Performance Vesting and Time Vesting Restricted Stock Units, Beginning of Period, Shares | 367,612 |
Granted, Shares | 82,449 |
Vested, Shares | -156,798 |
Performance Metric Not Achieved | -95,907 |
Forfeited, Shares | 0 |
Unvested Performance Vesting and Time Vesting Restricted Stock Units End of Period | 197,356 |
Weighted Average Fair Value, Unvested Restricted Stock Units, Beginning of Period | $32.08 |
Weighted Average Fair Value, Granted | $45.24 |
Weighted Average Fair Value, Vested | $26.89 |
Performance Metric Not Achieved, Weighted Average Exercise Price | $45.24 |
Weighted Average Fair Value, Forfeited | $0 |
Weighted Average Fair Value, Unvested Restricted Stock Units, End of Period | $40.92 |
Restricted Stock Units - Time Vesting [Member] | ' |
Changes in Restricted Stock Units | ' |
Unvested Performance Vesting and Time Vesting Restricted Stock Units, Beginning of Period, Shares | 815,210 |
Granted, Shares | 312,862 |
Vested, Shares | -318,868 |
Forfeited, Shares | -65,878 |
Unvested Performance Vesting and Time Vesting Restricted Stock Units End of Period | 743,326 |
Weighted Average Fair Value, Unvested Restricted Stock Units, Beginning of Period | $34.53 |
Weighted Average Fair Value, Granted | $45.17 |
Weighted Average Fair Value, Vested | $33.01 |
Weighted Average Fair Value, Forfeited | $39.77 |
Weighted Average Fair Value, Unvested Restricted Stock Units, End of Period | $39.20 |
StockBased_Compensation_Detail3
Stock-Based Compensation (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Stock-Based Compensation (Additional Textual) [Abstract] | ' | ' | ' |
Maximum period of achievement of performance goals to earn performance units | '3 years | ' | ' |
Minimum performance period of individual required to earn performance units | '3 years | ' | ' |
Stock Option [Member] | ' | ' | ' |
Stock-Based Compensation (Textual) [Abstract] | ' | ' | ' |
Compensation expense related to stock option | $4.30 | $6.20 | $5.50 |
Unrecognized compensation cost | 2.9 | ' | ' |
Unrecognized compensation costs, weighted average period | '2 years 6 months | ' | ' |
Weighted average fair value of options granted | $13.76 | $13.53 | $13.87 |
Fair value of options vested | 5.1 | 5.2 | 4.7 |
Tax benefits resulting from stock-based compensation deductions in excess of amounts reported for financial reporting purposes | 6 | 4.2 | 4.1 |
Cash received from the exercise of capital stock option | 20.6 | 12.5 | 19.4 |
Tax benefit from the exercise of capital stock option | 4.6 | 2.8 | 4.4 |
Total Intrinsic value of options exercised | 14.8 | 8.3 | 14.2 |
Fair market value of shares delivered | 0.5 | 0.1 | 0.4 |
Restricted Stock Units - Time Vesting Performance Vesting [Member] | ' | ' | ' |
Stock-Based Compensation (Textual) [Abstract] | ' | ' | ' |
Compensation expense related to stock option | 13.1 | 15.2 | 14.9 |
Unrecognized compensation cost | $14.30 | ' | ' |
Unrecognized compensation costs, weighted average period | '2 years 3 months 18 days | ' | ' |
Environmental_Matters_Details_
Environmental Matters (Details Textual) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Millions, unless otherwise specified | ||
Environmental Matters (Textual) [Abstract] | ' | ' |
Accrual for Potential Environmental Loss Contingencies | $11 | $5.10 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Commitments and Contingencies [Abstract] | ' | ' | ' |
Lease Expense Under Rental | $31.90 | $30.80 | $29.10 |
Future Minimum Operating Lease Payment For Year 2015 | 21.6 | ' | ' |
Future Minimum Operating Lease Payment For Year 2016 | 14.3 | ' | ' |
Future Minimum Operating Lease Payment For Year 2017 | 8.6 | ' | ' |
Future Minimum Operating Lease Payment For Year 2018 | 3.8 | ' | ' |
Future Minimum Operating Lease Payment For Year 2019 | 2.2 | ' | ' |
Future Minimum Operating Lease Payment Due Thereafter | $24 | ' | ' |
Segment_Data_Details
Segment Data (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
External sales: | ' | ' | ' |
Total External Sales | $2,837,190 | $2,589,373 | $2,736,246 |
Operating income: | ' | ' | ' |
Total operating income | 263,432 | 296,394 | 416,409 |
Segment data | ' | ' | ' |
Interest expense | 32,451 | 27,472 | 27,215 |
Other expense (income), net | 2,172 | 2,313 | -775 |
Income before income taxes | 228,809 | 266,609 | 389,969 |
Depreciation and Amortization | 130,222 | 113,104 | 104,073 |
Equity Income | 84 | 42 | 7 |
Assets | 3,868,086 | 3,301,039 | 3,034,188 |
Capital Expenditures | 117,376 | 82,835 | 103,036 |
Investments in Affiliated Companies | 495 | 671 | 685 |
Industrial [Member] | ' | ' | ' |
External sales: | ' | ' | ' |
Total External Sales | 1,524,075 | 1,386,690 | 1,560,157 |
Operating income: | ' | ' | ' |
Total operating income | 177,040 | 192,828 | 278,105 |
Segment data | ' | ' | ' |
Depreciation and Amortization | 65,820 | 60,458 | 61,422 |
Equity Income | 34 | 0 | 0 |
Assets | 1,449,688 | 1,190,026 | 1,256,048 |
Capital Expenditures | 71,628 | 47,501 | 71,587 |
Investments in Affiliated Companies | 0 | 234 | 251 |
Infrastructure [Member] | ' | ' | ' |
External sales: | ' | ' | ' |
Total External Sales | 1,313,115 | 1,202,683 | 1,176,089 |
Operating income: | ' | ' | ' |
Total operating income | 94,940 | 111,453 | 146,768 |
Segment data | ' | ' | ' |
Depreciation and Amortization | 64,339 | 52,583 | 42,587 |
Equity Income | 50 | 42 | 7 |
Assets | 1,986,724 | 1,522,470 | 1,516,033 |
Capital Expenditures | 45,748 | 35,334 | 31,449 |
Investments in Affiliated Companies | 495 | 437 | 434 |
Corporate [Member] | ' | ' | ' |
Operating income: | ' | ' | ' |
Total operating income | -8,548 | -7,887 | -8,464 |
Segment data | ' | ' | ' |
Depreciation and Amortization | 63 | 63 | 64 |
Assets | $431,674 | $588,543 | $262,107 |
Segment_Data_Details_1
Segment Data (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
External Sales [Abstract] | ' | ' | ' |
Total External Sales | $2,837,190 | $2,589,373 | $2,736,246 |
Total Assets [Abstract] | ' | ' | ' |
Assets | 3,868,086 | 3,301,039 | 3,034,188 |
UNITED STATES | ' | ' | ' |
External Sales [Abstract] | ' | ' | ' |
Total External Sales | 1,198,541 | 1,052,466 | 1,170,117 |
Total Assets [Abstract] | ' | ' | ' |
Assets | 1,842,453 | 1,228,923 | 1,177,705 |
GERMANY | ' | ' | ' |
External Sales [Abstract] | ' | ' | ' |
Total External Sales | 511,209 | 454,807 | 475,076 |
Total Assets [Abstract] | ' | ' | ' |
Assets | 538,661 | 646,983 | 485,442 |
CHINA | ' | ' | ' |
External Sales [Abstract] | ' | ' | ' |
Total External Sales | 248,212 | 239,418 | 214,427 |
Total Assets [Abstract] | ' | ' | ' |
Assets | 341,949 | 311,053 | 281,386 |
ITALY | ' | ' | ' |
External Sales [Abstract] | ' | ' | ' |
Total External Sales | 107,511 | 94,183 | 80,520 |
Total Assets [Abstract] | ' | ' | ' |
Assets | 178,141 | 172,764 | 172,513 |
UNITED KINGDOM | ' | ' | ' |
External Sales [Abstract] | ' | ' | ' |
Total External Sales | 105,041 | 92,614 | 82,635 |
Total Assets [Abstract] | ' | ' | ' |
Assets | 79,657 | 107,738 | 104,805 |
INDIA | ' | ' | ' |
External Sales [Abstract] | ' | ' | ' |
Total External Sales | 81,455 | 83,401 | 105,136 |
Total Assets [Abstract] | ' | ' | ' |
Assets | 94,897 | 94,914 | 95,618 |
CANADA | ' | ' | ' |
External Sales [Abstract] | ' | ' | ' |
Total External Sales | 78,163 | 93,257 | 80,007 |
Total Assets [Abstract] | ' | ' | ' |
Assets | 133,481 | 138,959 | 134,662 |
Other | ' | ' | ' |
External Sales [Abstract] | ' | ' | ' |
Total External Sales | 507,058 | 479,227 | 528,328 |
Total Assets [Abstract] | ' | ' | ' |
Assets | 393,919 | 392,705 | 365,396 |
SWITZERLAND | ' | ' | ' |
Total Assets [Abstract] | ' | ' | ' |
Assets | $264,928 | $207,000 | $216,661 |
Segment_Data_Details_Textual
Segment Data (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Segment | |||
Segment Data [Abstract] | ' | ' | ' |
Operations in Number of Global Reporting Segments | 2 | ' | ' |
Sales To a Single Customer Did Not Aggretage More Than | 0.04 | ' | ' |
Export Sales from U.S. Operations to Unaffiliated Customers | $82.20 | $102.10 | $102.10 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | ||||||||
Selected Quarterly Financial Data [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Sales | $772,204 | $755,242 | $689,936 | $619,808 | $671,410 | $655,360 | $633,144 | $629,459 | $2,837,190 | $2,589,373 | $2,736,246 | ||||||||
Gross profit | 252,840 | 238,955 | 206,971 | 198,237 | 228,714 | 208,495 | 199,447 | 208,348 | 897,003 | 845,004 | 994,250 | ||||||||
Net income attributable to Kennametal | $45,455 | $50,865 | $24,209 | $37,837 | $60,818 | $53,916 | $42,142 | $46,390 | $158,366 | $203,265 | $307,230 | ||||||||
Basic earning per share attributable to Kennametal | $0.58 | [1] | $0.65 | [1] | $0.31 | [1] | $0.48 | [1] | $0.77 | [1] | $0.68 | [1] | $0.53 | [1] | $0.58 | [1] | $2.01 | $2.56 | $3.83 |
Diluted earning per share attributable to Kennametal | $0.57 | [1] | $0.64 | [1] | $0.30 | [1] | $0.48 | [1] | $0.76 | [1] | $0.67 | [1] | $0.52 | [1] | $0.57 | [1] | $1.99 | $2.52 | $3.77 |
[1] | Earnings per share amounts attributable to Kennametal for each quarter are computed using the weighted average number of shares outstanding during the quarter. Earnings per share amounts attributable to Kennametal for the full year are computed using the weighted average number of shares outstanding during the year. Thus, the sum of the four quartersb earnings per share attributable to Kennametal does not always equal the full-year earnings per share attributable to Kennametal. |
Schedule_II_Valuation_and_Qual1
Schedule II Valuation and Qualifying Accounts and Reserves (Details) (USD $) | 12 Months Ended | |||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | ||||
Valuation and Qualifying Accounts and Reserves (Details Textual) [Abstract] | ' | ' | ' | |||
Valuation Allowances and Reserves, Goodwill Related to Businesses Acquired | ($2,000,000) | $3,400,000 | ' | |||
Valuation Allowances And Reserves Currency Translation Adjustment | -300,000 | -2,600,000 | ' | |||
Allowance for Doubtful Accounts [Member] | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at Beginning of Year | 11,949,000 | 12,530,000 | 20,958,000 | |||
Charges to Costs and Expenses | 2,880,000 | 1,532,000 | -3,467,000 | |||
Charged to Other Comprehensive (Loss) Income | 0 | 0 | 0 | |||
Recoveries | 207,000 | 193,000 | 306,000 | |||
Other Adjustments | 111,000 | [1] | 55,000 | [1] | -1,260,000 | [1] |
Deductions from Reserves | -1,120,000 | [2] | -2,361,000 | [2] | -4,007,000 | [2] |
Balance at End of Year | 14,027,000 | 11,949,000 | 12,530,000 | |||
Reserve for Excess and Obsolete Inventory [Member] | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at Beginning of Year | 52,739,000 | 55,042,000 | 55,283,000 | |||
Charges to Costs and Expenses | 9,252,000 | 6,688,000 | 8,115,000 | |||
Charged to Other Comprehensive (Loss) Income | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | |||
Other Adjustments | 1,317,000 | [1] | 508,000 | [1] | -4,130,000 | [1] |
Deductions from Reserves | -10,571,000 | [3] | -9,499,000 | [3] | -4,226,000 | [3] |
Balance at End of Year | 52,737,000 | 52,739,000 | 55,042,000 | |||
Deferred Tax Asset Valuation Allowance [Member] | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at Beginning of Year | 15,569,000 | 19,502,000 | 25,662,000 | |||
Charges to Costs and Expenses | 3,001,000 | -148,000 | -6,970,000 | |||
Charged to Other Comprehensive (Loss) Income | 24,000 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | |||
Other Adjustments | 505,000 | [1] | -2,288,000 | [4] | 810,000 | [5] |
Deductions from Reserves | -1,239,000 | [6] | -1,497,000 | [6] | 0 | |
Balance at End of Year | $17,860,000 | $15,569,000 | $19,502,000 | |||
[1] | Represents primarily currency translation adjustment. | |||||
[2] | Represents uncollected accounts charged against the allowance. | |||||
[3] | Represents scrapped inventory and other charges against the reserve. | |||||
[4] | Represents $(2.0) million goodwill adjustment relating to the business acquisition and $(0.3) million relating to currency translation adjustment. | |||||
[5] | Represents $3.4 million charged to goodwill relating to the business acquisition and $(2.6) million relating to currency translation adjustment. | |||||
[6] | Represents a forfeited net operating loss deduction. |