Accumulated Other Comprehensive (Loss) Income | 6 Months Ended |
Dec. 31, 2014 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME |
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Total accumulated other comprehensive (loss) income (AOCL) consists of net (loss) income and other changes in equity from transactions and other events from sources other than shareholders. It includes postretirement benefit plan adjustments, currency translation adjustments and unrealized gains and losses from derivative instruments designated as cash flow hedges. |
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The components of, and changes in, AOCL were as follows (net of tax) for the three months ended December 31, 2014 (in thousands): |
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Attributable to Kennametal: | Postretirement benefit plans | Currency translation adjustment | Derivatives | Total | | | | |
Balance, September 30, 2014 | $ | (89,347 | ) | $ | (11,210 | ) | $ | (9,329 | ) | $ | (109,886 | ) | | | | |
Other comprehensive loss before | 1,924 | | (29,427 | ) | 1,206 | | (26,297 | ) | | | | |
reclassifications | | | | |
Amounts reclassified from AOCL | 735 | | — | | (35 | ) | 700 | | | | | |
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Net current period other comprehensive | 2,659 | | (29,427 | ) | 1,171 | | (25,597 | ) | | | | |
loss | | | | |
AOCL, December 31, 2014 | $ | (86,688 | ) | $ | (40,637 | ) | $ | (8,158 | ) | $ | (135,483 | ) | | | | |
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Attributable to noncontrolling interests: | | | | | | | | |
Balance, September 30, 2014 | $ | — | | $ | (405 | ) | $ | — | | $ | (405 | ) | | | | |
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Other comprehensive loss before | — | | (782 | ) | — | | (782 | ) | | | | |
reclassifications | | | | |
Net current period other comprehensive | — | | (782 | ) | — | | (782 | ) | | | | |
loss | | | | |
AOCL, December 31, 2014 | $ | — | | $ | (1,187 | ) | $ | — | | $ | (1,187 | ) | | | | |
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The components of, and changes in, AOCL were as follows (net of tax) for the six months ended December 31, 2014 (in thousands): |
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Attributable to Kennametal: | Postretirement benefit plans | Currency translation adjustment | Derivatives | Total | | | | |
Balance, June 30, 2014 | $ | (93,742 | ) | $ | 38,811 | | $ | (11,200 | ) | $ | (66,131 | ) | | | | |
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Other comprehensive loss before | 5,565 | | (79,448 | ) | 2,713 | | (71,170 | ) | | | | |
reclassifications | | | | |
Amounts reclassified from AOCL | 1,489 | | — | | 329 | | 1,818 | | | | | |
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Net current period other comprehensive | 7,054 | | (79,448 | ) | 3,042 | | (69,352 | ) | | | | |
loss | | | | |
AOCL, December 31, 2014 | $ | (86,688 | ) | $ | (40,637 | ) | $ | (8,158 | ) | $ | (135,483 | ) | | | | |
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Attributable to noncontrolling interests: | | | | | | | | |
Balance, June 30, 2014 | $ | — | | $ | 1,087 | | $ | — | | $ | 1,087 | | | | | |
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Other comprehensive loss before | — | | (2,274 | ) | — | | (2,274 | ) | | | | |
reclassifications | | | | |
Net current period other comprehensive | — | | (2,274 | ) | — | | (2,274 | ) | | | | |
loss | | | | |
AOCL, December 31, 2014 | $ | — | | $ | (1,187 | ) | $ | — | | $ | (1,187 | ) | | | | |
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The components of, and changes in, AOCL were as follows (net of tax) for the three months ended December 31, 2013 (in thousands): |
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Attributable to Kennametal: | Postretirement benefit plans | Currency translation adjustment | Derivatives | Total | | | | |
Balance, September 30, 2013 | $ | (85,419 | ) | $ | 35,510 | | $ | (12,642 | ) | $ | (62,551 | ) | | | | |
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Other comprehensive (loss) income before reclassifications | (810 | ) | 11,263 | | (273 | ) | 10,180 | | | | | |
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Amounts reclassified from AOCL | 498 | | — | | 440 | | 938 | | | | | |
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Net current period other comprehensive | (312 | ) | 11,263 | | 167 | | 11,118 | | | | | |
(loss) income | | | | |
AOCL, December 31, 2013 | $ | (85,731 | ) | $ | 46,773 | | $ | (12,475 | ) | $ | (51,433 | ) | | | | |
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Attributable to noncontrolling interests: | | | | | | | | |
Balance, September 30, 2013 | $ | — | | $ | 535 | | $ | — | | $ | 535 | | | | | |
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Other comprehensive income before | — | | 413 | | — | | 413 | | | | | |
reclassifications | | | | |
Net current period other comprehensive | — | | 413 | | — | | 413 | | | | | |
income | | | | |
AOCL, December 31, 2013 | $ | — | | $ | 948 | | $ | — | | $ | 948 | | | | | |
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The components of, and changes in, AOCL were as follows (net of tax) for the six months ended December 31, 2013 (in thousands): |
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Attributable to Kennametal: | Postretirement benefit plans | Currency translation adjustment | Derivatives | Total | | | | |
Balance, June 30, 2013 | $ | (83,937 | ) | $ | 7,414 | | $ | (12,481 | ) | $ | (89,004 | ) | | | | |
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Other comprehensive (loss) income before reclassifications | (2,776 | ) | 39,359 | | (843 | ) | 35,740 | | | | | |
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Amounts reclassified from AOCL | 982 | | — | | 849 | | 1,831 | | | | | |
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Net current period other comprehensive | (1,794 | ) | 39,359 | | 6 | | 37,571 | | | | | |
(loss) income | | | | |
AOCL, December 31, 2013 | $ | (85,731 | ) | $ | 46,773 | | $ | (12,475 | ) | $ | (51,433 | ) | | | | |
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Attributable to noncontrolling interests: | | | | | | | | |
Balance, June 30, 2013 | $ | — | | $ | 721 | | $ | — | | $ | 721 | | | | | |
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Other comprehensive income before | — | | 227 | | — | | 227 | | | | | |
reclassifications | | | | |
Net current period other comprehensive | — | | 227 | | — | | 227 | | | | | |
income | | | | |
AOCL, December 31, 2013 | $ | — | | $ | 948 | | $ | — | | $ | 948 | | | | | |
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Reclassifications out of AOCL for the three and six months ended December 31, 2014 and 2013, respectively consisted of the following (in thousands): |
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| Three Months Ended December 31, | | Six Months Ended December 31, | |
Details about AOCL components | 2014 | | 2013 | | 2014 | | 2013 | Affected line item in the Income Statement |
Gains and losses on cash flow hedges: | | | | | | | | |
Forward starting interest rate swaps | $ | 505 | | | $ | 486 | | | $ | 1,010 | | | $ | 973 | | Interest expense |
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Currency exchange contracts | (562 | ) | | 224 | | | (474 | ) | | 396 | | Other expense, net |
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Total before tax | (57 | ) | | 710 | | | 536 | | | 1,369 | | |
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Tax (expense) benefit | (22 | ) | | 270 | | | 207 | | | 520 | | Provision for income taxes |
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Net of tax | $ | (35 | ) | | $ | 440 | | | $ | 329 | | | $ | 849 | | |
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Postretirement benefit plans: | | | | | | | | |
Amortization of transition obligations | $ | 19 | | | $ | 20 | | | $ | 40 | | | $ | 38 | | See note 10 for further details |
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Amortization of prior service credit | (99 | ) | | (86 | ) | | (196 | ) | | (173 | ) | See note 10 for further details |
Recognition of actuarial losses | 1,144 | | | 749 | | | 2,351 | | | 1,470 | | See note 10 for further details |
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Total before taxes | 1,064 | | | 683 | | | 2,195 | | | 1,335 | | |
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Tax benefit | 329 | | | 185 | | | 706 | | | 353 | | Provision for income taxes |
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Net of tax | $ | 735 | | | $ | 498 | | | $ | 1,489 | | | $ | 982 | | |
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