Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Jul. 31, 2015 | Dec. 31, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | KENNAMETAL INC | ||
Entity Central Index Key | 55,242 | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2015 | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 2,089,500,000 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 79,420,596 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Statement [Abstract] | |||
Sales | $ 2,647,195 | $ 2,837,190 | $ 2,589,373 |
Cost of goods sold | 1,841,202 | 1,940,187 | 1,744,369 |
Gross profit | 805,993 | 897,003 | 845,004 |
Operating expense | 554,895 | 589,768 | 527,850 |
Restructuring and asset impairment charges (Notes 2 and 14) | 582,235 | 17,608 | 0 |
Amortization of intangibles | 26,686 | 26,195 | 20,760 |
Operating (loss) income | (357,823) | 263,432 | 296,394 |
Interest expense | 31,466 | 32,451 | 27,472 |
Other (income) expense, net | (1,674) | 2,172 | 2,313 |
(Loss) income before income taxes | (387,615) | 228,809 | 266,609 |
(Benefit) provision for income taxes | (16,654) | 66,611 | 59,693 |
Net (loss) income | (370,961) | 162,198 | 206,916 |
Less: Net income attributable to noncontrolling interests | 2,935 | 3,832 | 3,651 |
Net (loss) income attributable to Kennametal | $ (373,896) | $ 158,366 | $ 203,265 |
PER SHARE DATA ATTRIBUTABLE TO KENNAMETAL SHAREHOLDERS | |||
Basic (loss) earnings per share | $ (4.71) | $ 2.01 | $ 2.56 |
Diluted (loss) earnings per share | (4.71) | 1.99 | 2.52 |
Dividends per share | $ 0.72 | $ 0.72 | $ 0.64 |
Basic weighted average shares outstanding | 79,342 | 78,678 | 79,463 |
Diluted weighted average shares outstanding | 79,342 | 79,667 | 80,612 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (370,961) | $ 162,198 | $ 206,916 |
Unrealized gain (loss) on derivatives designated and qualified as cash flow hedges | 6,652 | (706) | (611) |
Reclassification of unrealized (gain) loss on expired derivatives designated and qualified as cash flow hedges | (2,873) | 1,987 | 1,377 |
Unrecognized net pension and other postretirement benefit (loss) gain | (47,982) | (11,990) | 39,376 |
Reclassification of net pension and other postretirement benefit loss | 2,931 | 2,184 | 9,679 |
Foreign currency translation adjustments | (139,465) | 31,763 | 9,223 |
Other comprehensive (loss) income, net of tax | (180,737) | 23,238 | 59,044 |
Total comprehensive (loss) income | (551,698) | 185,436 | 265,960 |
Less: comprehensive (loss) income attributable to noncontrolling interests | 410 | (4,198) | (3,101) |
Comprehensive (loss) income attributable to Kennametal Shareholders | $ (551,288) | $ 181,238 | $ 262,859 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 105,494 | $ 177,929 |
Accounts receivable, less allowance for doubtful accounts of $13,560 and $14,027, respectively | 445,373 | 531,515 |
Inventories (Note 7) | 575,531 | 703,766 |
Deferred income taxes (Note 11) | 72,449 | 47,897 |
Other current assets | 59,699 | 64,089 |
Total current assets | 1,258,546 | 1,525,196 |
Property, plant and equipment: | ||
Land and buildings | 401,207 | 437,783 |
Machinery and equipment | 1,573,597 | 1,638,215 |
Less accumulated depreciation | (1,158,979) | (1,191,540) |
Property, plant and equipment, net | 815,825 | 884,458 |
Other assets: | ||
Investments in affiliated companies | 361 | 495 |
Goodwill (Note 2) | 417,389 | 975,576 |
Other intangible assets, less accumulated amortization of $153,370 and $139,245, respectively (Note 2) | 286,669 | 343,176 |
Deferred income taxes (Note 11) | 24,091 | 41,006 |
Other | 46,648 | 98,179 |
Total other assets | 775,158 | 1,458,432 |
Total assets | 2,849,529 | 3,868,086 |
Current liabilities: | ||
Current maturities of long-term debt and capital leases (Note 9) | 8,129 | 7,662 |
Notes payable to banks (Note 10) | 7,573 | 72,455 |
Accounts payable | 187,381 | 206,891 |
Accrued income taxes | 25,237 | 16,953 |
Accrued vacation pay | 26,566 | 38,456 |
Accrued payroll | 49,180 | 61,436 |
Other current liabilities (Note 8) | 178,678 | 158,903 |
Total current liabilities | 482,744 | 562,756 |
Long-term debt and capital leases, less current maturities (Note 9) | 735,885 | 981,666 |
Deferred income taxes (Note 11) | 59,744 | 118,092 |
Accrued postretirement benefits (Note 12) | 19,230 | 22,516 |
Accrued pension benefits (Note 12) | 143,799 | 158,268 |
Accrued income taxes | 3,002 | 21,384 |
Other liabilities | 29,690 | 41,796 |
Total liabilities | $ 1,474,094 | $ 1,906,478 |
Commitments and contingencies (Note 18) | ||
Kennametal Shareholders' Equity: | ||
Preferred stock, no par value; 5,000 shares authorized; none issued | $ 0 | $ 0 |
Capital stock, $1.25 par value; 120,000 shares authorized; 79,375 and 78,672 shares issued respectively | 99,219 | 98,340 |
Additional paid-in capital | 419,829 | 395,890 |
Retained earnings | 1,070,282 | 1,501,157 |
Accumulated other comprehensive loss | (243,523) | (66,131) |
Total Kennametal Shareholders' Equity | 1,345,807 | 1,929,256 |
Noncontrolling interests | 29,628 | 32,352 |
Total equity | 1,375,435 | 1,961,608 |
Total liabilities and equity | $ 2,849,529 | $ 3,868,086 |
Consolidated Balance Sheets(Par
Consolidated Balance Sheets(Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 13,560 | $ 14,027 |
Accumulated amortization on other intangible assets | $ 153,370 | $ 139,245 |
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 | 79,375 | 78,672 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
OPERATING ACTIVITIES | |||
Net (loss) income | $ (370,961) | $ 162,198 | $ 206,916 |
Adjustments for non-cash items: | |||
Depreciation | 104,978 | 104,027 | 92,344 |
Amortization | 26,686 | 26,195 | 20,760 |
Stock-based compensation expense | 16,827 | 17,641 | 21,874 |
Restructuring and asset impairment charges (Notes 2 and 14) | 548,028 | 3,408 | 0 |
Deferred income tax provision | (48,575) | 23,119 | 232 |
Other | 2,098 | 2,106 | 2,577 |
Changes in certain assets and liabilities: | |||
Accounts receivable | 46,552 | (45,041) | 33,801 |
Inventories | 70,874 | (5,310) | 5,879 |
Accounts payable and accrued liabilities | (8,218) | 13,748 | (90,449) |
Accrued income taxes | (10,163) | (12,485) | 949 |
Other | (26,689) | (17,733) | (10,733) |
Net cash flow provided by operating activities | 351,437 | 271,873 | 284,150 |
INVESTING ACTIVITIES | |||
Purchases of property, plant and equipment | (100,939) | (117,376) | (82,835) |
Disposals of property, plant and equipment | 16,122 | 1,236 | 3,016 |
Business acquisition, net of cash acquired (Note 4) | 0 | (634,615) | (500) |
Proceeds from sale of business | 0 | 10,225 | 0 |
Other | 263 | 356 | (379) |
Net cash flow used for investing activities | (84,554) | (740,174) | (80,698) |
FINANCING ACTIVITIES | |||
Net (decrease) increase in notes payable | (63,647) | 31,568 | (833) |
Net increase (decrease) in short-term revolving and other lines of credit | 200 | (3,600) | (23,600) |
Term debt borrowings | 89,712 | 736,079 | 944,152 |
Term debt repayments | (308,736) | (450,928) | (736,562) |
Purchase of capital stock | (318) | (14,165) | (121,408) |
Sale of subsidary stock | 0 | 0 | 26,665 |
Dividend reinvestment and the effect of employee benefit and stock plans | 13,844 | 26,676 | 17,356 |
Cash dividends paid to Shareholders | (56,979) | (56,436) | (51,011) |
Other | (7,039) | 1,214 | (2,612) |
Net cash flow (used for) provided by financing activities | (332,963) | 270,408 | 52,147 |
Effect of exchange rate changes on cash and cash equivalents | (6,355) | (1,494) | 5,251 |
CASH AND CASH EQUIVALENTS | |||
Net (decrease) increase in cash and cash equivalents | (72,435) | (199,387) | 260,850 |
Cash and cash equivalents, beginning of period | 177,929 | 377,316 | 116,466 |
Cash and cash equivalents, end of period | $ 105,494 | $ 177,929 | $ 377,316 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Noncontrolling Interests [Member] |
Beginning Balance, Shares at Jun. 30, 2012 | 80,085 | |||||
Beginning Balance at Jun. 30, 2012 | $ 100,106 | $ 447,433 | $ 1,246,973 | $ (150,662) | $ 24,371 | |
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 (loss) income | 206,916 | 203,265 | 3,651 | |||
Cash dividends paid to Shareholders | (51,011) | (4,253) | ||||
Unrealized gain (loss) on derivatives designated and qualified as cash flow hedges, net of tax | (611) | (611) | ||||
Reclassification of unrealized (gain) loss on expired derivatives designated and qualified as cash flow hedges | 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 | 9,679 | 9,679 | ||||
Foreign currency translation adjustments, net of tax | 9,223 | 9,772 | ||||
Other comprehensive (loss) income, net of tax | 59,044 | 59,593 | (550) | |||
Purchase of noncontrolling interests | (479) | |||||
Acquisition by noncontrolling interests | 0 | |||||
Ending Balance, Shares at Jun. 30, 2013 | 77,842 | |||||
Ending Balance at Jun. 30, 2013 | 1,812,293 | $ 97,303 | 374,300 | 1,399,227 | (89,004) | 30,467 |
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 (loss) income | 162,198 | 158,366 | 3,832 | |||
Cash dividends paid to Shareholders | (56,436) | (2,313) | ||||
Unrealized gain (loss) on derivatives designated and qualified as cash flow hedges, net of tax | (706) | (706) | ||||
Reclassification of unrealized (gain) loss on expired derivatives designated and qualified as cash flow hedges | 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 | 2,184 | 2,184 | ||||
Foreign currency translation adjustments, net of tax | 31,763 | 31,398 | ||||
Other comprehensive (loss) income, net of tax | 23,238 | 22,873 | 366 | |||
Purchase of noncontrolling interests | 0 | |||||
Acquisition by noncontrolling interests | 0 | |||||
Ending Balance, Shares at Jun. 30, 2014 | 78,672 | |||||
Ending Balance at Jun. 30, 2014 | 1,961,608 | $ 98,340 | 395,890 | 1,501,157 | (66,131) | 32,352 |
Dividend reinvestment, Shares | 7 | |||||
Dividend reinvestment | $ 9 | 311 | ||||
Capital stock issued under employee benefit and stock plans, Shares | 703 | |||||
Capital stock issued under employee benefit and stock plans | $ 879 | 23,939 | ||||
Purchase of capital stock, Shares | (7) | |||||
Purchase of capital stock | $ (9) | (311) | ||||
Sale of subsidiary stock to noncontrolling interests | 0 | 0 | 0 | |||
Net (loss) income | (370,961) | (373,896) | 2,935 | |||
Cash dividends paid to Shareholders | (56,979) | (2,314) | ||||
Unrealized gain (loss) on derivatives designated and qualified as cash flow hedges, net of tax | 6,652 | 6,652 | ||||
Reclassification of unrealized (gain) loss on expired derivatives designated and qualified as cash flow hedges | (2,873) | (2,873) | ||||
Unrecognized net pension and other postretirement benefit (loss) gain, net of tax | (47,982) | (47,982) | ||||
Reclassification of net pension and other postretirement benefit loss | 2,931 | 2,931 | ||||
Foreign currency translation adjustments, net of tax | (139,465) | (136,120) | ||||
Other comprehensive (loss) income, net of tax | (180,737) | (177,392) | (3,345) | |||
Purchase of noncontrolling interests | 0 | |||||
Acquisition by noncontrolling interests | 0 | |||||
Ending Balance, Shares at Jun. 30, 2015 | 79,375 | |||||
Ending Balance at Jun. 30, 2015 | $ 1,375,435 | $ 99,219 | $ 419,829 | $ 1,070,282 | $ (243,523) | $ 29,628 |
Nature of operations
Nature of operations | 12 Months Ended |
Jun. 30, 2015 | |
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 Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2015 | |
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, 2015 . 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, 2015 and 2014 was $45.0 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 lives. 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 based on the results of an ongoing cumulative qualitative assessment that warrant a test prior to that. We evaluate the recoverability of goodwill for each of our reporting units by comparing the fair value of each reporting unit with its carrying value. The fair values of our reporting units are determined using a combination of a discounted cash flow analysis and market multiples based upon historical and projected financial information. We apply our best judgment when assessing the reasonableness of the financial projections used to determine the fair value of each reporting unit. We evaluate the recoverability of indefinite-lived intangible assets using a discounted cash flow analysis based on projected financial information. This evaluation is sensitive to changes in market interest rates and other external factors. Identifiable assets with finite lives are reviewed for impairment whenever events or circumstances indicate that the carrying value may not be recoverable. During the March and December quarters, we performed reviews of our identifiable assets with finite lives and determined that the assets were not impaired. Additionally, the Industrial reporting unit passed the annual goodwill impairment test with estimated fair value exceeding carrying values by approximately 90 percent . 2015 December Quarter Impairment Charge Late in the December quarter, the Company experienced an abrupt change in customer demand in the oil and gas markets that is expected to continue into the foreseeable future, coupled with the severe and persistent decline in the earthworks markets. In view of the severe downturn in the global Infrastructure markets in the December quarter, we made an assessment of the possible impairment of the goodwill and other long-lived assets of our Infrastructure reporting unit. As a result of this assessment, we determined that the magnitude and duration of the economic downturn of the Infrastructure end markets; the overall financial performance of the Infrastructure reporting unit; a change in composition or carrying amount of Infrastructure net assets and the testing for recoverability of a significant asset group within Infrastructure; and a sustained trend of decrease in the Company’s share price necessitated an interim impairment test of our Infrastructure reporting unit. As previously disclosed, we recorded a preliminary non-cash pre-tax impairment charge of $376.5 million in the Infrastructure segment, of which $375.0 million was for goodwill and $1.5 million was for an indefinite-lived trademark intangible asset. During the March quarter, we completed our review of the fair values related to property, plant and equipment in relation to the preliminary charge and no additional charges were recorded. We recorded an additional $6.8 million charge for an indefinite-lived trademark intangible asset based upon completion of the December valuation. 2015 March Quarter Impairment Charge During the March 2015 quarter, we recorded an additional non-cash pre-tax impairment charge of $152.9 million in the Infrastructure reporting unit, of which $152.5 million was for goodwill and $0.4 million was for an indefinite-lived trademark intangible asset. These charges were due to the continued weakening of the overall financial performance of the Infrastructure reporting unit, which was driven by the further decline in the future outlook for the global energy market being more severe than originally indicated during the second quarter 2015 impairment testing discussed above, coupled with the extended persistence of the downturn in the earthworks markets into the foreseeable future. Therefore, as of the date of the last impairment test, the goodwill in the Infrastructure reporting unit had a fair value that approximates carrying value. Since the Infrastructure reporting unit indefinite-lived intangible assets were adjusted to their estimated fair values in connection with the impairment charges, and because certain trademarks have subsequently been written down because they were partially impaired (as discussed above), there is not a significant excess of fair value over the carrying values. If current expectations of future growth rates are not met or specific valuation factors outside of our control, such as discount rates, change significantly, then one or more intangible assets might become impaired in the future. The further acceleration or extended persistence of the current downturn in the global end markets could have a further negative impact on our business and financial performance. We are currently exploring strategic alternatives for several businesses mostly within the Infrastructure segment, which have total estimated net book values of approximately $170 million to $250 million as of June 30, 2015 . As the strategic direction has not yet been determined for these businesses, the Company cannot determine if additional impairment charges will be incurred. Goodwill Acquired On November 4, 2013, we acquired 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 in 2014 based on our purchase price allocations: $183.5 million in the Infrastructure segment and $60.1 million in the Industrial segment. 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. We recorded an additional $3.0 million of goodwill in the Industrial segment in 2015 based on finalization of the purchase price allocation. 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 Gross 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 Activity for the year ended June 30, 2014: Acquisition 60,100 183,477 243,577 Translation 3,312 6,932 10,244 Change in gross goodwill 63,412 190,409 253,821 Gross 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 Activity for the year ended June 30, 2015: Acquisition 2,984 — 2,984 Translation (19,950 ) (13,721 ) (33,671 ) Change in gross goodwill (16,966 ) (13,721 ) (30,687 ) Impairment charges — (527,500 ) (527,500 ) Gross goodwill 455,371 640,360 1,095,731 Accumulated impairment losses (150,842 ) (527,500 ) (678,342 ) Balance as of June 30, 2015 $ 304,529 $ 112,860 $ 417,389 The components of our other intangible assets were as follows: Estimated Useful Life (in years) June 30, 2015 June 30, 2014 (in thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Contract-based 3 to 15 $ 8,523 $ (6,990 ) $ 23,446 $ (10,820 ) Technology-based and other 4 to 20 52,820 (29,723 ) 54,842 (28,516 ) Customer-related 10 to 21 275,796 (90,141 ) 285,751 (76,376 ) Unpatented technology 10 to 30 59,449 (14,426 ) 61,867 (12,549 ) Trademarks 5 to 20 18,575 (12,090 ) 19,256 (10,984 ) Trademarks Indefinite 24,876 — 37,259 — Total $ 440,039 $ (153,370 ) $ 482,421 $ (139,245 ) During 2015 , an impairment of $10.5 million was recorded for a contract-based technology intangible asset that was part of the Infrastructure segment, resulting in a non-cash impairment charge of $5.5 million and a reduction in a liability of $5.0 million . As a result of the TMB acquisition, we increased other intangible assets by $127.3 million in 2014 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 and 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. 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 decreased other intangible assets by $10.7 million in 2015 and increased other intangible assets by $3.0 million in 2014. Amortization expense for intangible assets was $26.7 million , $26.2 million and $20.8 million for 2015 , 2014 and 2013 , respectively. Estimated amortization expense for 2016 through 2020 is $24.0 million , $22.3 million , $20.5 million , $19.8 million , and $14.4 million , respectively. We recorded no goodwill or other intangible asset impairments in 2014 and 2013 . 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. In 2015 , the effect of unexercised capital stock options and unvested restricted stock units was anti-dilutive as a result of a net loss in the period and therefore has been excluded from diluted shares outstanding as well as from the diluted earnings per share calculation. For purposes of determining the number of diluted shares outstanding at June 30, 2014 and 2013 , 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 and 1.1 million shares, respectively. Unexercised capital stock options, unvested restricted stock awards and restricted stock units of 0.3 million and 1.0 million shares at June 30, 2014 and 2013 , 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 for our products and assembled machines when title and all risks of loss and damages pass to the buyer. 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 2015 , 2014 and 2013 . 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. Time vesting stock units are valued at the market value of the stock on the grant date. Performance vesting stock units with a market condition are valued using a Monte Carlo model. 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 2015, 2014 and 2013 was immaterial. 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 $45.1 million , $44.0 million and $39.7 million in 2015 , 2014 and 2013 , 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 (income) expense, 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 (income) expense, 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. A gain of $1.7 million , a loss of $2.5 million and a loss of $4.5 million from currency transactions were included in other (income) expense, net in 2015 , 2014 and 2013 , respectively. NEW ACCOUNTING STANDARDS Adopted In July 2013, the Financial Accounting Standards Board (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 carryforwards 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 was effective for Kennametal beginning July 1, 2014 and did not have a material impact. Issued In April 2015, the FASB issued new guidance on the presentation of debt issuance costs. The guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct reduction from the carrying amount of that debt liability, consistent with debt discounts. This standard is effective for Kennametal beginning July 1, 2016. The guidance is not expected to have a material effect under our current debt structure. In April 2015, the FASB issued new guidance on accounting for fees paid in a cloud computing arrangement. The amendments in this update provide guidance to customers about whether a cloud computing arrangement includes a software license and accounting for the arrangement as capitalized and amortized as an intangible asset or expensed as incurred as a service contract. This standard is effective for Kennametal beginning July 1, 2016. We are in the process of evaluating the impact of adoption on our consolidated financial statements. In May 2014, the FASB issued 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 our consolidated financial statements. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Jun. 30, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW DISCLOSURES | SUPPLEMENTAL CASH FLOW DISCLOSURES Year ended June 30 (in thousands) 2015 2014 2013 Cash paid during the period for: Interest $ 30,984 $ 29,836 $ 24,432 Income taxes 40,295 49,393 51,098 Supplemental disclosure of non-cash information: Changes in accounts payable related to purchases of property, plant and equipment (9,900 ) 2,100 (8,600 ) |
Acquisition
Acquisition | 12 Months Ended |
Jun. 30, 2015 | |
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. When acquired, the business had approximately 1,175 employees in 12 locations primarily in the United States of America, and 6 other countries. 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. The accompanying consolidated balance sheet as of June 30, 2015 reflects the final allocation of the purchase price. We recorded an additional $3.0 million of goodwill in 2015 based on finalization of the purchase price allocation. See Note 2. 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 Shareholders : Basic earnings per share $ 2.23 $ 2.40 Diluted earnings per share $ 2.21 $ 2.37 Emura On August 1, 2013, the Company acquired the operating assets of 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 are 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, 2015 | |
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, 2015 , 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) $ — $ 2,678 $ — $ 2,678 Total assets at fair value $ — $ 2,678 $ — $ 2,678 Liabilities: Derivatives (1) $ — $ 44 $ — $ 44 Contingent consideration — — 10,000 10,000 Total liabilities at fair value $ — $ 44 $ 10,000 $ 10,044 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 two years . During 2015 , the Company paid $4.0 million in conjunction with achieved milestone targets. 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, 2015 . As of June 30, 2014 , 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) $ — $ 253 $ — $ 253 Total assets at fair value $ — $ 253 $ — $ 253 Liabilities: Derivatives (1) $ — $ 1,053 $ — $ 1,053 Contingent consideration 14,000 14,000 Total liabilities at fair value $ — $ 1,053 $ 14,000 $ 15,053 (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 Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Jun. 30, 2015 | |
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) 2015 2014 Derivatives designated as hedging instruments Other current assets - range forward contracts $ 2,626 $ 184 Other current liabilities - range forward contracts — (6 ) Other assets - range forward contracts — 42 Total derivatives designated as hedging instruments 2,626 220 Derivatives not designated as hedging instruments Other current assets - currency forward contracts 52 27 Other current liabilities - currency forward contracts (44 ) (1,047 ) Total derivatives not designated as hedging instruments 8 (1,020 ) Total derivatives $ 2,634 $ (800 ) 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 (income) expense, net. (Gains) losses related to derivatives not designated as hedging instruments have been recognized as follows: (in thousands) 2015 2014 2013 Other (income) expense, net - currency forward contracts $ (1,026 ) $ 1,057 $ 1,210 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, 2015 and June 30, 2014. 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 (income) expense, 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, 2015 and 2014 was $53.8 million and $91.1 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, 2015 , we expect to recognize into earnings in the next 12 months $2.4 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, 2015 or 2014 , respectively. The following represents losses related to cash flow hedges: (in thousands) 2015 2014 2013 Gains (losses) recognized in other comprehensive loss, net $ 6,651 $ (702 ) $ (611 ) (Gains) losses reclassified from accumulated other comprehensive loss into other (income) expense, net $ (250 ) $ 1,399 $ 1,116 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, 2015 , 2014 and 2013 . |
Inventories
Inventories | 12 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consisted of the following at June 30: (in thousands) 2015 2014 Finished goods $ 324,840 $ 371,599 Work in process and powder blends 249,629 308,129 Raw materials 100,881 126,004 Inventories at current cost 675,350 805,732 Less: LIFO valuation (99,819 ) (101,966 ) Total inventories $ 575,531 $ 703,766 We used the LIFO method of valuing inventories for approximately 47 percent and 43 percent of total inventories at June 30, 2015 and 2014 , respectively. |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Jun. 30, 2015 | |
Other Liabilities, Current [Abstract] | |
Other Current Liabilities [Text Block] | OTHER CURRENT LIABILITIES Other current liabilities consisted of the following at June 30: (in thousands) 2015 2014 Accrued employee benefits $ 40,995 $ 29,758 Accrued restructuring (Note 14) 20,788 9,002 Payroll, state and local taxes 15,006 16,401 Accrued legal and professional fees 11,710 11,848 Other 90,179 91,894 Total other current liabilities $ 178,678 $ 158,903 |
Long-Term Debt and Capital Leas
Long-Term Debt and Capital Leases | 12 Months Ended |
Jun. 30, 2015 | |
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) 2015 2014 2.65% Senior Unsecured Notes due 2019 net of discount of $0.3 million for 2015 and $0.4 million for 2014 $ 399,671 $ 399,595 3.875% Senior Unsecured Notes due 2022 net of discount of $0.2 million for 2015 and $0.3 million for 2014 299,757 299,720 Credit Agreement: Euro-denominated borrowings, 0.9% to 1.1% in 2015 and 1.1% to 1.3% in 2014, due 2018 42,609 200,112 U.S. Dollar-denominated borrowings, 1.2% in 2015 and 2014, due 2018 200 87,000 Capital leases with terms expiring through 2018 at 1.6% to 5.4% in 2015 and 2014 1,771 2,886 Other 6 15 Total debt and capital leases 744,014 989,328 Less current maturities: Long-term debt (8,049 ) (7,512 ) Capital leases (74 ) (135 ) Other (6 ) (15 ) Total current maturities (8,129 ) (7,662 ) Long-term debt and capital leases, less current maturities $ 735,885 $ 981,666 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. 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, 2015 . We had $42.8 million and $287.1 million of borrowings outstanding under the 2011 Credit Agreement as of June 30, 2015 and June 30, 2014 , respectively. Borrowings under the 2011 Credit Agreement are guaranteed by our significant domestic subsidiaries. Future principal maturities of long-term debt are $8.0 million in 2016, $34.8 million in 2018, $399.7 million in 2020 and $299.8 million beyond 2020. Future minimum lease payments under capital leases for the next five years and thereafter in total are as follows: (in thousands) 2016 $ 76 2017 1,625 2018 199 2019 — 2020 — After 2021 — Total future minimum lease payments 1,900 Less amount representing interest (129 ) Amount recognized as capital lease obligations $ 1,771 At June 30, 2015 and 2014 our collateralized debt consisted of capitalized lease obligations of $1.8 million and $2.9 million , respectively. The underlying assets collateralize these obligations. |
Notes Payable and Lines of Cred
Notes Payable and Lines of Credit | 12 Months Ended |
Jun. 30, 2015 | |
Notes Payable and Lines of Credit [Abstract] | |
Notes Payable and Lines of Credit | NOTES PAYABLE AND LINES OF CREDIT Notes payable to banks of $7.6 million and $72.5 million at June 30, 2015 and 2014 , respectively, represents short-term borrowings under credit lines with commercial banks. These credit lines, translated into U.S. dollars at June 30, 2015 exchange rates, totaled $200.4 million at June 30, 2015 , of which $192.8 million was unused. The weighted average interest rate for notes payable and lines of credit was 2.0 percent and 1.5 percent at June 30, 2015 and 2014 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES (Loss) income before income taxes consisted of the following for the years ended June 30: (in thousands) 2015 2014 2013 (Loss) income before income taxes: United States $ (323,299 ) $ 59,160 $ 87,499 International (64,316 ) 169,649 179,110 Total (loss) income before income taxes $ (387,615 ) $ 228,809 $ 266,609 Current income taxes: Federal $ (9,328 ) $ 15,108 $ 10,645 State 816 896 3,441 International 40,433 27,488 45,375 Total current income taxes 31,921 43,492 59,461 Deferred income taxes: Federal $ (38,943 ) $ 10,157 $ 12,951 State (8,680 ) (62 ) 2,433 International (952 ) 13,024 (15,152 ) Total deferred income taxes: (48,575 ) 23,119 232 (Benefit) provision for income taxes $ (16,654 ) $ 66,611 $ 59,693 Effective tax rate 4.3 % 29.1 % 22.4 % 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) 2015 2014 2013 Income taxes at U.S. statutory rate $ (135,665 ) $ 80,083 $ 93,313 State income taxes, net of federal tax benefits (1,748 ) 1,593 4,051 U.S. income taxes provided on international income 3,679 2,423 3,067 Combined tax effects of international income (21,560 ) (22,580 ) (30,692 ) Impact of goodwill impairment charges 134,657 — — Change in valuation allowance and other uncertain tax positions 1,530 (2,603 ) (4,550 ) Impact of domestic production activities deduction — (942 ) (3,546 ) Research and development credit (3,087 ) (1,385 ) (4,141 ) Change in permanent reinvestment assertion 2,945 7,170 — Other 2,595 2,852 2,191 (Benefit) provision for income taxes $ (16,654 ) $ 66,611 $ 59,693 During 2015, we recorded goodwill impairment charges related to our Infrastructure segment for the majority of which there was no tax benefit. The federal effect of these permanent differences is included in the income tax reconciliation table under the caption "impact of goodwill charges." During 2015, we recorded an adjustment of $2.9 million related to a change in assertion of certain foreign subsidiaries' 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 permanent reinvestment assertion." 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 effects 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 permanent reinvestment assertion.” The components of net deferred tax assets and (liabilities) were as follows at June 30: (in thousands) 2015 2014 Deferred tax assets: Net operating loss carryforwards $ 47,289 $ 52,812 Inventory valuation and reserves 18,023 20,612 Pension benefits 23,559 2,427 Other postretirement benefits 7,359 8,432 Accrued employee benefits 23,674 29,034 Other accrued liabilities 18,210 12,981 Hedging activities 4,354 14,996 Tax credits and other carryforwards 13,815 2,082 Other 12,028 14,617 Total 168,311 157,993 Valuation allowance (16,771 ) (17,860 ) Total deferred tax assets $ 151,540 $ 140,133 Deferred tax liabilities: Tax depreciation in excess of book $ 102,480 $ 107,171 Intangible assets 18,688 70,957 Total deferred tax liabilities $ 121,168 $ 178,128 Total net deferred tax assets (liabilities) $ 30,372 $ (37,995 ) Included in deferred tax assets at June 30, 2015 is $47.3 million associated with net operating loss carryforwards in state and foreign jurisdictions. Of that amount, $5.3 million expires through 2020, $7.4 million expires through 2025, $2.8 million expires through 2030, $1.9 million expires through 2035, and the remaining $29.9 million does not expire. The realization of these tax benefits is primarily dependent on future taxable income in these jurisdictions. A valuation allowance of $16.8 million has been placed against deferred tax assets in Europe, China, Hong Kong, Brazil and the U.S., all of which would be allocated to income tax expense upon realization of the deferred tax assets. In 2015, the valuation allowance related to these deferred tax assets decreased by $1.1 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, 2015 , unremitted earnings of our non-U.S. subsidiaries and affiliates of $2,087.9 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) 2015 2014 2013 Balance at beginning of year $ 20,366 $ 26,798 $ 7,298 Increases for tax positions of prior years — 1,461 — Decreases for tax positions of prior years (3,188 ) (6,982 ) — Increases for tax positions related to the current year — 116 23,231 Decreases related to settlement with taxing authority (348 ) (2,161 ) (3,813 ) Decreases related to lapse of statute of limitations (398 ) — — Foreign currency translation (1,813 ) 1,134 82 Balance at end of year $ 14,619 $ 20,366 $ 26,798 The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate in 2015 , 2014 and 2013 is $2.7 million , $2.4 million and $4.3 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 a reduction in interest of 0.7 million and 1.9 million in 2015 and 2013 respectively. We recognized interest expense of $0.8 million in 2014. As of June 30, 2015 and 2014 the amount of interest accrued was $0.5 million and $1.3 million , respectively. As of June 30, 2015 and 2014 , the amount of penalty accrued was $0.2 million and $0.4 million , respectively. With few exceptions, we are no longer subject to income tax examinations by tax authorities for years prior to 2009. The Internal Revenue Service has audited all U.S. tax years prior to 2014. Various state and foreign jurisdiction tax authorities are in the process of examining our income tax returns for various tax years ranging from 2009 to 2013. 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 $11.9 million within the next twelve months as a result of a settlement with one foreign tax jurisdiction of a position that was taken in 2013. In 2015 and 2014, we refined our estimate for this position which resulted in a reduction of the liability of $3.2 million and $7.0 million respectively. A corresponding deferred tax asset in the amount of $11.9 million was recorded for the position in the U. S. and is included in the components of net deferred tax assets and liabilities table under the caption "other." |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 12 Months Ended |
Jun. 30, 2015 | |
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) 2015 2014 Change in benefit obligation: Benefit obligation, beginning of year $ 969,904 $ 890,831 Service cost 5,474 6,910 Interest cost 39,007 41,084 Participant contributions 12 15 Actuarial losses 50,464 56,925 Benefits and expenses paid (73,897 ) (43,948 ) Currency translation adjustments (36,377 ) 16,994 Effect of acquired business — 1,093 Special termination benefits 459 — Curtailments (592 ) — Benefit obligation, end of year $ 954,454 $ 969,904 Change in plans' assets: Fair value of plans' assets, beginning of year $ 884,264 $ 796,079 Actual return on plans' assets 20,007 108,640 Company contributions 8,703 10,902 Participant contributions 12 15 Benefits and expenses paid (73,897 ) (43,948 ) Currency translation adjustments (11,752 ) 12,576 Fair value of plans' assets, end of year $ 827,337 $ 884,264 Funded status of plans $ (127,117 ) $ (85,640 ) Amounts recognized in the balance sheet consist of: Long-term prepaid benefit $ 31,274 $ 81,307 Short-term accrued benefit obligation (14,592 ) (8,679 ) Accrued pension benefits (143,799 ) (158,268 ) Net amount recognized $ (127,117 ) $ (85,640 ) The increase in benefits and expenses paid of $29.9 million is primarily due the completion of lump sum settlement program in 2015 of $32.8 million . The decrease in actual return on plans' assets of $88.6 million is primarily due to the strong market performance of fixed income securities in 2014 that did not repeat in 2015 in addition to the decrease in plan assets due to the payout of the lump sum settlement in 2015. 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) 2015 2014 Unrecognized net actuarial losses $ 196,567 $ 121,799 Unrecognized net prior service credits (953 ) (939 ) Unrecognized transition obligations 951 1,105 Total $ 196,565 $ 121,965 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 $943.5 million and $956.7 million as of June 30, 2015 and 2014 , 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) 2015 2014 Projected benefit obligation $ 165,281 $ 190,679 Accumulated benefit obligation 164,913 189,391 Fair value of plan assets 7,394 23,390 The components of net periodic pension (income) cost include the following as of June 30: (in thousands) 2015 2014 2013 Service cost $ 5,474 $ 6,910 $ 7,797 Interest cost 39,007 41,084 38,183 Expected return on plans' assets (59,698 ) (59,527 ) (56,111 ) Amortization of transition obligation 78 78 69 Amortization of prior service cost (361 ) (234 ) (195 ) Special termination benefit charge 459 — — Curtailment loss 358 — — Settlement loss 261 — 158 Recognition of actuarial losses 3,671 2,642 14,961 Net periodic pension (income) cost $ (10,751 ) $ (9,047 ) $ 4,862 Net periodic pension income was $10.8 million in 2015 as compared to $9.0 million in 2014. 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. During 2015 , we recognized a special termination benefit charge of $0.5 million and a curtailment loss of $0.4 million for one of our U.S.-based defined benefit pension plans resulting from a plant closure. The special termination benefit charge was recognized in restructuring expense. As of June 30, 2015 , the projected benefit payments, including future service accruals for these plans for 2016 through 2020, are $55.4 million , $49.3 million , $50.8 million , $53.0 million and $55.0 million , respectively, and $295.9 million in 2021 through 2025. The amounts of accumulated other comprehensive loss expected to be recognized in net periodic pension cost during 2016 related to net actuarial losses and transition obligations are $7.3 million and $0.1 million , respectively. The amount of accumulated other comprehensive income expected to be recognized in net periodic pension cost during 2016 related to prior service credit is $0.4 million . We expect to contribute approximately $16.8 million to our pension plans in 2016. 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) 2015 2014 Change in benefit obligation: Benefit obligation, beginning of year $ 24,476 $ 21,422 Service cost 45 55 Interest cost 934 1,006 Actuarial losses 1,489 3,658 Benefits paid (2,155 ) (1,665 ) Curtailments (3,584 ) — Benefit obligation, end of year $ 21,205 $ 24,476 Funded status of plan $ (21,205 ) $ (24,476 ) Amounts recognized in the balance sheet consist of: Short-term accrued benefit obligation $ (1,975 ) $ (1,960 ) Accrued postretirement benefits (19,230 ) (22,516 ) Net amount recognized $ (21,205 ) $ (24,476 ) 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) 2015 2014 Unrecognized net actuarial losses $ 5,969 $ 8,554 Unrecognized net prior service credits (172 ) (452 ) Total $ 5,797 $ 8,102 The components of net periodic other postretirement benefit cost include the following for the years ended June 30: (in thousands) 2015 2014 2013 Service cost $ 45 $ 55 $ 72 Interest cost 934 1,006 938 Amortization of prior service credit (59 ) (111 ) (111 ) Recognition of actuarial loss 492 317 417 Curtailment gain (221 ) — — Net periodic other postretirement benefit cost $ 1,191 $ 1,267 $ 1,316 The curtailment gain of $0.2 million during 2015 was a result of the plant closure discussed above. As of June 30, 2015, the projected benefit payments, including future service accruals for our other postretirement benefit plans for 2016 through 2020, are $2.2 million , $2.1 million , $2.0 million , $1.8 million and $1.7 million , respectively, and $7.3 million in 2021 through 2025. The amounts of accumulated other comprehensive loss expected to be recognized in net periodic pension cost during 2016 related to net actuarial losses are $0.3 million . The amount of accumulated other comprehensive income expected to be recognized in net periodic pension cost during 2016 related to prior service credit is immaterial. We expect to contribute approximately $2.2 million to our postretirement benefit plans in 2016. 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: 2015 2014 2013 Discount Rate: U.S. plans 3.2-4.5% 4.4 % 4.9 % International plans 2.3-3.8% 2.9-4.3% 3.5-4.8% Rates of future salary increases: U.S. plans 3.0-4.0% 3.0-5.0% 3.0-5.0% International plans 2.5-3.0% 2.5-3.0% 2.5-3.0% The significant assumptions used to determine the net periodic (income) cost for our pension and other postretirement benefit plans were as follows: 2015 2014 2013 Discount Rate: U.S. plans 4.4 % 4.9 % 4.0 % International plans 2.9-4.3% 3.5-4.8% 4.0-5.5% 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% Rate of return on plans assets: U.S. plans 7.5 % 8.0 % 8.0 % International plans 5.0-6.0% 5.0-6.0% 5.6 % 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: 2015 2014 2013 Health care costs trend rate assumed for next year 7.3 % 7.5 % 7.8 % Rate to which the cost trend rate gradually declines 5.0 % 5.0 % 4.5 % Year that the rate reaches the rate at which it is assumed to remain 2024 2024 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, 2015: (in thousands) 1% Increase 1% Decrease Effect on total service and interest cost components $ 45 $ (40 ) Effect on other postretirement obligation 881 (790 ) 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 utilized periodically 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, 2015 and 2014 and target allocations for 2016, by asset class, were as follows: 2015 2014 Target % Equity 32 % 34 % 30 % Fixed Income 65 % 63 % 70 % Other 3 % 3 % — % 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, 2015: (in thousands) Level 1 Level 2 Level 3 Total Corporate fixed income securities $ — $ 391,275 $ — $ 391,275 Common / collective trusts: Value funds — 102,466 — 102,466 Growth funds — 54,179 — 54,179 Balanced funds — 10,090 — 10,090 Common stock 94,964 — — 94,964 Government securities: U.S. Government securities — 68,628 — 68,628 Foreign government securities — 44,474 — 44,474 Other fixed income securities — 32,540 — 32,540 Other 3,396 25,325 — 28,721 Total investments $ 98,360 $ 728,977 $ — $ 827,337 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 Defined Contribution Plans We sponsor several defined contribution retirement plans. Costs for defined contribution plans were $23.1 million , $20.4 million and $16.7 million in 2015 , 2014 and 2013 , respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 12 Months Ended |
Jun. 30, 2015 | |
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 shareholders. 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, 2015 (in thousands): Attributable to Kennametal: Post-retirement benefit plans Currency translation adjustment Derivatives Total Balance, June 30, 2014 $ (93,742 ) $ 38,811 $ (11,200 ) $ (66,131 ) Other comprehensive (loss) income before reclassifications (47,982 ) (136,120 ) 6,652 (177,450 ) Amounts Reclassified from AOCL 2,931 — (2,873 ) 58 Net current period other comprehensive loss (45,051 ) (136,120 ) 3,779 (177,392 ) AOCL, June 30, 2015 $ (138,793 ) $ (97,309 ) $ (7,421 ) $ (243,523 ) Attributable to noncontrolling interests: Balance, June 30, 2014 $ — $ 1,087 $ — $ 1,087 Other comprehensive loss before reclassifications — (3,345 ) — (3,345 ) Net current period other comprehensive loss — (3,345 ) — (3,345 ) AOCL, June 30, 2015 $ — $ (2,258 ) $ — $ (2,258 ) 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) income before reclassifications (11,990 ) 31,398 (706 ) 18,702 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 income before reclassifications — 366 — 366 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 income (loss) before reclassifications 39,376 9,772 (611 ) 48,537 Amounts Reclassified from AOCL 9,679 — 1,377 11,056 Net current period other comprehensive loss 49,055 9,772 766 59,593 Sale of subsidiary stock to noncontrolling — 2,065 — 2,065 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 ) Net current period other comprehensive loss — (550 ) — (550 ) AOCL, June 30, 2013 $ — $ 721 $ — $ 721 Reclassifications out of AOCL for the years ended June 30, 2015 , 2014 and 2013 consisted of the following: Year Ended June 30, Details about AOCL components 2015 2014 2013 Affected line item in the Income Statement Gains and losses on cash flow hedges: Forward starting interest rate swaps $ 2,021 $ 1,945 $ 1,872 Interest expense Currency exchange contracts (6,700 ) 1,260 363 Other (income) expense, net Total before tax (4,679 ) 3,205 2,235 Tax (expense) benefit (1,806 ) 1,218 858 (Benefit) provision for income taxes Net of tax $ (2,873 ) $ 1,987 $ 1,377 Post-retirement benefit plans: Amortization of transition obligations $ 78 $ 78 $ 69 See Note 12 for further details Amortization of prior service credit (420 ) (345 ) (306 ) See Note 12 for further details Recognition of actuarial losses 4,163 2,959 15,378 See Note 12 for further details Total before tax 3,821 2,692 15,141 Tax benefit 890 508 5,462 (Benefit) provision for income taxes Net of tax $ 2,931 $ 2,184 $ 9,679 The amount of income tax allocated to each component of other comprehensive (loss) for the year ended June 30, 2015 : (in thousands) Pre-tax Tax impact Net of tax Unrealized gain on derivatives designated and qualified as cash flow hedges $ 10,834 $ (4,182 ) $ 6,652 Reclassification of unrealized gain on expired derivatives designated and qualified as cash flow hedges (4,679 ) 1,806 (2,873 ) Unrecognized net pension and other postretirement benefit loss (76,029 ) 28,047 (47,982 ) Reclassification of net pension and other postretirement benefit loss 3,821 (890 ) 2,931 Foreign currency translation adjustments (147,172 ) 7,707 (139,465 ) Other comprehensive (loss) $ (213,225 ) $ 32,488 $ (180,737 ) The amount of income tax allocated to each component of other comprehensive income for the year ended June 30, 2014 : (in thousands) Pre-tax Tax impact Net of tax Unrealized loss on derivatives designated and qualified as cash flow hedges $ (1,139 ) $ 433 $ (706 ) Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges 3,205 (1,218 ) 1,987 Unrecognized net pension and other postretirement benefit loss (15,900 ) 3,910 (11,990 ) Reclassification of net pension and other postretirement benefit loss 2,692 (508 ) 2,184 Foreign currency translation adjustments 33,493 (1,730 ) 31,763 Other comprehensive income $ 22,351 $ 887 $ 23,238 The amount of income tax allocated to each component of other comprehensive income for the year ended June 30, 2013 : (in thousands) Pre-tax Tax impact Net of tax Unrealized loss on derivatives designated and qualified as cash flow hedges (992 ) 381 (611 ) Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges 2,235 (858 ) 1,377 Unrecognized net pension and other postretirement benefit gain 64,340 (24,964 ) 39,376 Reclassification of net pension and other postretirement benefit loss 15,141 (5,462 ) 9,679 Foreign currency translation adjustments 10,414 (1,191 ) 9,223 Other comprehensive income 91,138 (32,094 ) 59,044 |
Restructuring and Related Charg
Restructuring and Related Charges and Asset Impairment Charges | 12 Months Ended |
Jun. 30, 2015 | |
Restructuring Charges [Abstract] | |
RESTRUCTURING AND RELATED CHARGES AND ASSET IMPAIRMENT CHARGES | RESTRUCTURING AND RELATED CHARGES AND ASSET IMPAIRMENT CHARGES Restructuring and Related Charges Phase 1 We are implementing restructuring actions in conjunction with our Phase 1 restructuring program 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. These restructuring actions are expected to be completed by the end of fiscal 2016 and are anticipated to be mostly cash expenditures. The total pre-tax charges for Phase 1 programs are expected to be in the range of $55 million to $60 million , which is expected to be approximately 50 percent Industrial and 50 percent Infrastructure. Total restructuring and related charges since inception of $51.9 million have been recorded for these Phase 1 programs through June 30, 2015 : $29.7 million in Industrial, $20.0 million in Infrastructure, and $2.2 million in Corporate. Phase 2 We are implementing restructuring actions in conjunction with Phase 2 to streamline the Company's cost structure. These initiatives are expected to enhance operational efficiencies through the rationalization of certain manufacturing facilities as well as other employment and cost reduction programs. These restructuring actions are expected to be completed by December 2016 and are anticipated to be mostly cash expenditures. The total pre-tax charges for Phase 2 programs are expected to be in the range of $90 million to $100 million , which is expected to be approximately 85 percent Industrial and 15 percent Infrastructure. Total restructuring and related charges since inception of $23.6 million have been recorded for these Phase 2 programs through June 30, 2015 : $14.2 million in Industrial, $8.2 million in Infrastructure, and $1.2 million in Corporate. Phase 3 We are implementing restructuring actions in conjunction with Phase 3. These initiatives are expected to enhance operational efficiencies through an enterprise-wide cost reduction program as well as the consolidation of certain manufacturing facilities. These restructuring actions are expected to be completed by March 2017 and are anticipated to be mostly cash expenditures. The total pre-tax charges for Phase 3 programs are expected to be in the range of $40 million to $45 million , which is expected to be approximately 50 percent Industrial and 50 percent Infrastructure. Total restructuring and related charges since inception of $1.6 million have been recorded in Infrastructure for these Phase 3 programs through June 30, 2015 . Combined During 2015 , we recognized total restructuring and related charges of $58.1 million , of this amount, restructuring charges totaled $42.1 million , of which $1.5 million were charges related to inventory disposals and were recorded in cost of goods sold. Total restructuring-related charges of $8.2 million were recorded in cost of goods sold and $7.8 million in operating expense during 2015 . During 2014 , we recognized total restructuring and related charges of $19.1 million , of this amount, restructuring charges totaled $17.8 million , of which $0.2 million were charges related to inventory disposals and were recorded in cost of goods sold. Total restructuring-related charges of $1.2 million were recorded in cost of goods sold and $0.1 million in operating expense during 2014 . During 2013, we recorded no restructuring and related charges. 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) June 30, 2014 Expense Asset Write-Down Other (2) Translation Cash Expenditures June 30, 2015 Industrial Severance $ 5,815 $ 20,713 $ — $ — $ (328 ) $ (12,744 ) $ 13,456 Facilities 444 2,277 (2,231 ) — (15 ) (475 ) — Other 67 77 — — (2 ) (114 ) 28 Total Industrial $ 6,326 $ 23,067 $ (2,231 ) $ — $ (345 ) $ (13,333 ) $ 13,484 Infrastructure Severance $ 2,458 $ 14,027 $ — $ (459 ) $ (223 ) $ (8,630 ) $ 7,173 Facilities 190 4,969 (3,638 ) — (32 ) (1,358 ) 131 Other 28 — — — (3 ) (25 ) — Total Infrastructure 2,676 18,996 (3,638 ) (459 ) (258 ) (10,013 ) 7,304 Total $ 9,002 $ 42,063 $ (5,869 ) $ (459 ) $ (603 ) $ (23,346 ) $ 20,788 (2) Special termination benefit charge for one of our U.S.-based benefit pension plans resulting from a plant closure - see Note 12. (in thousands) June 30, 2013 Expense Asset Write-Down Other Translation Cash Expenditures June 30, 2014 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 Asset impairment Charges See discussion on Infrastructure segment goodwill and other intangible asset impairment charges in Note 2. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Jun. 30, 2015 | |
Financial Instruments, Owned, at Fair Value [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 $698.0 million and $705.3 million at June 30, 2015 and 2014 , 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 $53.8 million and $91.1 million at June 30, 2015 and 2014 , respectively. We would have received $2.6 million and $0.2 million at June 30, 2015 and 2014 , 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, 2015 and 2014 . 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, 2015 and 2014 , we had no significant concentrations of credit risk. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jun. 30, 2015 | |
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 2015 , 2014 and 2013 were as follows: 2015 2014 2013 Risk-free interest rate 1.5 % 1.3 % 0.6 % Expected life (years) (3) 4.5 4.5 4.5 Expected volatility (4) 32.5 % 40.3 % 49.5 % Expected dividend yield 1.7 % 1.7 % 1.5 % (3) Expected life is derived from historical experience. (4) Expected volatility is based on the implied historical volatility of our stock. Changes in our stock options for 2015 were as follows: Options Weighted Average Exercise Price Weighted Average Remaining Life (years) Aggregate Intrinsic value (in thousands) Options outstanding, June 30, 2014 2,264,824 $ 33.95 Granted 436,541 40.81 Exercised (416,534 ) 27.18 Lapsed and forfeited (190,794 ) 41.08 Options outstanding, June 30, 2015 2,094,037 $ 36.08 4.4 $ 4,720 Options vested and expected to vest, June 30, 2015 2,062,054 $ 36.02 4.4 $ 4,720 Options exercisable, June 30, 2015 1,615,372 $ 34.65 3.2 $ 4,720 During 2015 , 2014 and 2013 , compensation expense related to stock options was $3.2 million , $4.3 million and $6.2 million , respectively. As of June 30, 2015 , the total unrecognized compensation cost related to options outstanding was $2.1 million and is expected to be recognized over a weighted average period of 2.6 years. Weighted average fair value of options granted during 2015 , 2014 and 2013 was $10.16 , $13.76 and $13.53 , respectively. Fair value of options vested during 2015 , 2014 and 2013 was $7.6 million , $5.1 million and $5.2 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 $1.3 million , $6.0 million and $4.2 million in 2015 , 2014 and 2013 , respectively. The amount of cash received from the exercise of capital stock options during 2015 , 2014 and 2013 was $11.7 million , $20.6 million and $12.5 million , respectively. The related tax benefit for 2015 , 2014 and 2013 was $2.0 million , $4.6 million and $2.8 million , respectively. The total intrinsic value of options exercised during 2015 , 2014 and 2013 was $5.3 million , $14.8 million and $8.3 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 2015 , 2014 and 2013 were immaterial. 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. Time vesting stock units are valued at the market value of the stock on the grant date. Performance vesting stock units with a market condition are valued using a Monte Carlo model. Changes in our time vesting and performance vesting restricted stock units for 2015 were as follows: Performance Vesting Stock Units Performance Vesting Weighted Average Fair Value Time Vesting Stock Units Time Vesting Weighted Average Fair Value Unvested performance vesting and time vesting restricted stock units, June 30, 2014 197,356 $ 40.92 743,326 $ 39.20 Granted 88,536 43.16 455,296 42.00 Vested (28,022 ) 38.95 (385,321 ) 37.42 Performance metric not achieved (65,373 ) 43.16 — — Forfeited (91,252 ) 42.96 (124,033 ) 42.20 Unvested performance vesting and time vesting restricted stock units, June 30, 2015 101,245 $ 43.00 689,268 $ 41.53 During 2015 , 2014 and 2013 , compensation expense related to time vesting and performance vesting restricted stock units was $13.5 million , $13.1 million and $15.2 million , respectively. As of June 30, 2015 , the total unrecognized compensation cost related to unvested time vesting and performance vesting restricted stock units was $12.5 million and is expected to be recognized over a weighted average period of 2.5 years. |
Environmental Matters
Environmental Matters | 12 Months Ended |
Jun. 30, 2015 | |
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, 2015 and 2014 , the balance of these reserves was $12.6 million and $11.0 million , respectively. These reserves represent anticipated costs associated with the remediation of these issues. 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, 2015 | |
Commitments and Contingencies Disclosure [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 $29.4 million , $31.9 million and $30.8 million in 2015 , 2014 and 2013 , respectively. Future minimum lease payments for non-cancelable operating leases are $24.8 million , $18.3 million , $11.7 million , $8.9 million and $9.1 million for the years 2016 through 2020 and $38.2 million thereafter. Purchase Commitments We have purchase commitments for materials, supplies and machinery and equipment as part of the ordinary conduct of business. Some 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 2015 , 2014 and 2013 . 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, 2015 | |
Segment Reporting [Abstract] | |
SEGMENT DATA | SEGMENT DATA The Company manages and reports its business in the following two segments: Industrial and Infrastructure. The Company's reportable operating segments have been determined in accordance with the Company's internal management structure, which is organized based on operating activities, the manner in which we organize segments for making operating decisions and assessing performance and the availability of separate financial results. 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. Neither of our two reportable operating segments represent the aggregation of two or more operating segments. Sales to a single customer did not aggregate 4 percent or more of total sales in 2015 , 2014 and 2013 . Export sales from U.S. operations to unaffiliated customers were $71.0 million , $82.2 million and $102.1 million in 2015 , 2014 and 2013 , 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. We restated the segment financial information for the year ended June 30, 2013 to reflect the change in reportable operating segments. 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. Segment data is summarized as follows: (in thousands) 2015 2014 2013 Sales: Industrial $ 1,461,744 $ 1,524,075 $ 1,386,690 Infrastructure 1,185,451 1,313,115 1,202,683 Total sales $ 2,647,195 $ 2,837,190 $ 2,589,373 Operating (loss) income: Industrial $ 160,894 $ 177,040 $ 192,828 Infrastructure (509,381 ) 94,940 111,453 Corporate (9,336 ) (8,548 ) (7,887 ) Total operating (loss) income $ (357,823 ) $ 263,432 $ 296,394 Interest expense $ 31,466 $ 32,451 $ 27,472 Other (income) expense, net (1,674 ) 2,172 2,313 (Loss) income before income taxes $ (387,615 ) $ 228,809 $ 266,609 Depreciation and amortization: Industrial $ 64,188 $ 65,820 $ 60,458 Infrastructure 67,413 64,339 52,583 Corporate 63 63 63 Total depreciation and amortization $ 131,664 $ 130,222 $ 113,104 Equity income: Industrial $ — $ 34 $ — Infrastructure 6 50 42 Total equity income $ 6 $ 84 $ 42 Total assets: Industrial $ 1,259,270 $ 1,449,688 $ 1,190,026 Infrastructure 1,279,608 1,986,724 1,522,470 Corporate 310,651 431,674 588,543 Total assets $ 2,849,529 $ 3,868,086 $ 3,301,039 Capital expenditures: Industrial $ 64,497 $ 71,628 $ 47,501 Infrastructure 36,442 45,748 35,334 Total capital expenditures $ 100,939 $ 117,376 $ 82,835 Investments in affiliated companies: Industrial $ — $ — $ 234 Infrastructure 361 495 437 Total investments in affiliated companies $ 361 $ 495 $ 671 Geographic information for sales, based on country of origin, and assets is as follows: (in thousands) 2015 2014 2013 Sales: United States $ 1,176,622 $ 1,198,541 $ 1,052,466 Germany 442,009 511,209 454,807 China 246,953 248,212 239,418 Italy 85,530 107,511 94,183 India 85,193 81,455 83,401 Canada 73,912 78,163 93,257 United Kingdom 70,600 105,041 92,614 Other 466,376 507,058 479,227 Total sales $ 2,647,195 $ 2,837,190 $ 2,589,373 Total assets: United States $ 1,338,594 $ 1,842,453 $ 1,228,923 Germany 394,491 538,661 646,983 China 274,774 341,949 311,053 Switzerland 194,139 264,928 207,000 India 97,463 94,897 94,914 Italy 94,978 178,141 172,764 United Kingdom 71,342 79,657 107,738 Canada 60,492 133,481 138,959 Other 323,256 393,919 392,705 Total assets: $ 2,849,529 $ 3,868,086 $ 3,301,039 Approximate sales by end markets as a percentage of consolidated sales are as follows: 2015 2014 2013 End Markets: General engineering 36 % 31 % 29 % Transportation 21 21 21 Energy 19 23 23 Earthworks 17 19 20 Aerospace and defense 7 6 7 Total 100 % 100 % 100 % |
Selected Quarterly Financial Da
Selected Quarterly Financial Data | 12 Months Ended |
Jun. 30, 2015 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Information [Text Block] | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) For the quarter ended (in thousands, except per share data) September 30 December 31 March 31 June 30 2015 Sales $ 694,941 $ 675,631 $ 638,970 $ 637,653 Gross profit 218,099 199,458 199,470 188,966 Net income (loss) attributable to Kennametal 39,489 (388,302 ) (46,229 ) 21,146 Basic earnings (loss) per share attributable to Kennametal (5) Net income 0.50 (4.89 ) (0.58 ) 0.27 Diluted earnings (loss) per share attributable to Kennametal (5) Net income 0.49 (4.89 ) (0.58 ) 0.26 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 (5) Net income 0.48 0.31 0.65 0.58 Diluted earnings per share attributable to Kennametal (5) Net income 0.48 0.30 0.64 0.57 (5) 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 Quali
Schedule II Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Jun. 30, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (In thousands) For the year ended June 30 Balance at Beginning of Year Charges to Costs and Expenses Charged to Other Comprehensive (Loss) Income Recoveries Other Adjustments Deductions from Reserves Balance at End of Year 2015 Allowance for doubtful accounts $ 14,027 $ 3,602 $ — $ 40 $ (1,095 ) (1) $ (3,014 ) (2) $ 13,560 Reserve for excess and obsolete inventory 52,737 8,666 — — (5,613 ) (1) (10,770 ) (3) 45,020 Deferred tax asset valuation allowance 17,860 1,846 — — (2,935 ) (1) — 16,771 2014 Allowance for doubtful accounts $ 11,949 $ 2,880 $ — $ 207 $ 111 (1) $ (1,120 ) (2) $ 14,027 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 doubtful accounts $ 12,530 $ 1,532 $ — $ 193 $ 55 (1) $ (2,361 ) (2) $ 11,949 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 ) (5) (1,497 ) (4) 15,569 (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 $2.0 million charged to goodwill relating to the business acquisition and $0.3 million relating to currency translation adjustment. |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | 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 | 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 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, 2015 . |
Accounts Receivable | 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 | 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, 2015 and 2014 was $45.0 million and $52.7 million , respectively. |
Property, Plant and Equipment | 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 lives. 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 | 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 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 based on the results of an ongoing cumulative qualitative assessment that warrant a test prior to that. We evaluate the recoverability of goodwill for each of our reporting units by comparing the fair value of each reporting unit with its carrying value. The fair values of our reporting units are determined using a combination of a discounted cash flow analysis and market multiples based upon historical and projected financial information. We apply our best judgment when assessing the reasonableness of the financial projections used to determine the fair value of each reporting unit. We evaluate the recoverability of indefinite-lived intangible assets using a discounted cash flow analysis based on projected financial information. This evaluation is sensitive to changes in market interest rates and other external factors. Identifiable assets with finite lives are reviewed for impairment whenever events or circumstances indicate that the carrying value may not be recoverable. During the March and December quarters, we performed reviews of our identifiable assets with finite lives and determined that the assets were not impaired. Additionally, the Industrial reporting unit passed the annual goodwill impairment test with estimated fair value exceeding carrying values by approximately 90 percent . 2015 December Quarter Impairment Charge Late in the December quarter, the Company experienced an abrupt change in customer demand in the oil and gas markets that is expected to continue into the foreseeable future, coupled with the severe and persistent decline in the earthworks markets. In view of the severe downturn in the global Infrastructure markets in the December quarter, we made an assessment of the possible impairment of the goodwill and other long-lived assets of our Infrastructure reporting unit. As a result of this assessment, we determined that the magnitude and duration of the economic downturn of the Infrastructure end markets; the overall financial performance of the Infrastructure reporting unit; a change in composition or carrying amount of Infrastructure net assets and the testing for recoverability of a significant asset group within Infrastructure; and a sustained trend of decrease in the Company’s share price necessitated an interim impairment test of our Infrastructure reporting unit. As previously disclosed, we recorded a preliminary non-cash pre-tax impairment charge of $376.5 million in the Infrastructure segment, of which $375.0 million was for goodwill and $1.5 million was for an indefinite-lived trademark intangible asset. During the March quarter, we completed our review of the fair values related to property, plant and equipment in relation to the preliminary charge and no additional charges were recorded. We recorded an additional $6.8 million charge for an indefinite-lived trademark intangible asset based upon completion of the December valuation. 2015 March Quarter Impairment Charge During the March 2015 quarter, we recorded an additional non-cash pre-tax impairment charge of $152.9 million in the Infrastructure reporting unit, of which $152.5 million was for goodwill and $0.4 million was for an indefinite-lived trademark intangible asset. These charges were due to the continued weakening of the overall financial performance of the Infrastructure reporting unit, which was driven by the further decline in the future outlook for the global energy market being more severe than originally indicated during the second quarter 2015 impairment testing discussed above, coupled with the extended persistence of the downturn in the earthworks markets into the foreseeable future. Therefore, as of the date of the last impairment test, the goodwill in the Infrastructure reporting unit had a fair value that approximates carrying value. Since the Infrastructure reporting unit indefinite-lived intangible assets were adjusted to their estimated fair values in connection with the impairment charges, and because certain trademarks have subsequently been written down because they were partially impaired (as discussed above), there is not a significant excess of fair value over the carrying values. If current expectations of future growth rates are not met or specific valuation factors outside of our control, such as discount rates, change significantly, then one or more intangible assets might become impaired in the future. The further acceleration or extended persistence of the current downturn in the global end markets could have a further negative impact on our business and financial performance. We are currently exploring strategic alternatives for several businesses mostly within the Infrastructure segment, which have total estimated net book values of approximately $170 million to $250 million as of June 30, 2015 . As the strategic direction has not yet been determined for these businesses, the Company cannot determine if additional impairment charges will be incurred. Goodwill Acquired On November 4, 2013, we acquired 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 in 2014 based on our purchase price allocations: $183.5 million in the Infrastructure segment and $60.1 million in the Industrial segment. 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. We recorded an additional $3.0 million of goodwill in the Industrial segment in 2015 based on finalization of the purchase price allocation. 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 Gross 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 Activity for the year ended June 30, 2014: Acquisition 60,100 183,477 243,577 Translation 3,312 6,932 10,244 Change in gross goodwill 63,412 190,409 253,821 Gross 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 Activity for the year ended June 30, 2015: Acquisition 2,984 — 2,984 Translation (19,950 ) (13,721 ) (33,671 ) Change in gross goodwill (16,966 ) (13,721 ) (30,687 ) Impairment charges — (527,500 ) (527,500 ) Gross goodwill 455,371 640,360 1,095,731 Accumulated impairment losses (150,842 ) (527,500 ) (678,342 ) Balance as of June 30, 2015 $ 304,529 $ 112,860 $ 417,389 The components of our other intangible assets were as follows: Estimated Useful Life (in years) June 30, 2015 June 30, 2014 (in thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Contract-based 3 to 15 $ 8,523 $ (6,990 ) $ 23,446 $ (10,820 ) Technology-based and other 4 to 20 52,820 (29,723 ) 54,842 (28,516 ) Customer-related 10 to 21 275,796 (90,141 ) 285,751 (76,376 ) Unpatented technology 10 to 30 59,449 (14,426 ) 61,867 (12,549 ) Trademarks 5 to 20 18,575 (12,090 ) 19,256 (10,984 ) Trademarks Indefinite 24,876 — 37,259 — Total $ 440,039 $ (153,370 ) $ 482,421 $ (139,245 ) During 2015 , an impairment of $10.5 million was recorded for a contract-based technology intangible asset that was part of the Infrastructure segment, resulting in a non-cash impairment charge of $5.5 million and a reduction in a liability of $5.0 million . As a result of the TMB acquisition, we increased other intangible assets by $127.3 million in 2014 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 and 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. 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 decreased other intangible assets by $10.7 million in 2015 and increased other intangible assets by $3.0 million in 2014. Amortization expense for intangible assets was $26.7 million , $26.2 million and $20.8 million for 2015 , 2014 and 2013 , respectively. Estimated amortization expense for 2016 through 2020 is $24.0 million , $22.3 million , $20.5 million , $19.8 million , and $14.4 million , respectively. |
Pension and Other Postretirement Benefits | 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 | 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. In 2015 , the effect of unexercised capital stock options and unvested restricted stock units was anti-dilutive as a result of a net loss in the period and therefore has been excluded from diluted shares outstanding as well as from the diluted earnings per share calculation. For purposes of determining the number of diluted shares outstanding at June 30, 2014 and 2013 , 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 and 1.1 million shares, respectively. Unexercised capital stock options, unvested restricted stock awards and restricted stock units of 0.3 million and 1.0 million shares at June 30, 2014 and 2013 , 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 | REVENUE RECOGNITION We recognize revenue for our products and assembled machines when title and all risks of loss and damages pass to the buyer. 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 2015 , 2014 and 2013 . |
Stock-Based Compensation | 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. Time vesting stock units are valued at the market value of the stock on the grant date. Performance vesting stock units with a market condition are valued using a Monte Carlo model. 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 2015, 2014 and 2013 was immaterial. 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 Research and development costs of $45.1 million , $44.0 million and $39.7 million in 2015 , 2014 and 2013 , respectively, were expensed as incurred. These costs are included in operating expense in the consolidated statements of income. |
Shipping and Handling Fees and Costs | 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 | 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 | 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 (income) expense, 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 | 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 (income) expense, 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 | 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 | 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. A gain of $1.7 million , a loss of $2.5 million and a loss of $4.5 million |
New Accounting Standards | NEW ACCOUNTING STANDARDS Adopted In July 2013, the Financial Accounting Standards Board (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 carryforwards 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 was effective for Kennametal beginning July 1, 2014 and did not have a material impact. Issued In April 2015, the FASB issued new guidance on the presentation of debt issuance costs. The guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct reduction from the carrying amount of that debt liability, consistent with debt discounts. This standard is effective for Kennametal beginning July 1, 2016. The guidance is not expected to have a material effect under our current debt structure. In April 2015, the FASB issued new guidance on accounting for fees paid in a cloud computing arrangement. The amendments in this update provide guidance to customers about whether a cloud computing arrangement includes a software license and accounting for the arrangement as capitalized and amortized as an intangible asset or expensed as incurred as a service contract. This standard is effective for Kennametal beginning July 1, 2016. We are in the process of evaluating the impact of adoption on our consolidated financial statements. In May 2014, the FASB issued 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 our consolidated financial statements. |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
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 Gross 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 Activity for the year ended June 30, 2014: Acquisition 60,100 183,477 243,577 Translation 3,312 6,932 10,244 Change in gross goodwill 63,412 190,409 253,821 Gross 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 Activity for the year ended June 30, 2015: Acquisition 2,984 — 2,984 Translation (19,950 ) (13,721 ) (33,671 ) Change in gross goodwill (16,966 ) (13,721 ) (30,687 ) Impairment charges — (527,500 ) (527,500 ) Gross goodwill 455,371 640,360 1,095,731 Accumulated impairment losses (150,842 ) (527,500 ) (678,342 ) Balance as of June 30, 2015 $ 304,529 $ 112,860 $ 417,389 |
Components of Other Intangible Assets [Table Text Block] | The components of our other intangible assets were as follows: Estimated Useful Life (in years) June 30, 2015 June 30, 2014 (in thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Contract-based 3 to 15 $ 8,523 $ (6,990 ) $ 23,446 $ (10,820 ) Technology-based and other 4 to 20 52,820 (29,723 ) 54,842 (28,516 ) Customer-related 10 to 21 275,796 (90,141 ) 285,751 (76,376 ) Unpatented technology 10 to 30 59,449 (14,426 ) 61,867 (12,549 ) Trademarks 5 to 20 18,575 (12,090 ) 19,256 (10,984 ) Trademarks Indefinite 24,876 — 37,259 — Total $ 440,039 $ (153,370 ) $ 482,421 $ (139,245 ) |
Supplemental Cash Flow Inform31
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Disclosures | Year ended June 30 (in thousands) 2015 2014 2013 Cash paid during the period for: Interest $ 30,984 $ 29,836 $ 24,432 Income taxes 40,295 49,393 51,098 Supplemental disclosure of non-cash information: Changes in accounts payable related to purchases of property, plant and equipment (9,900 ) 2,100 (8,600 ) |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Jun. 30, 2014 | |
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 | 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 Shareholders : Basic earnings per share $ 2.23 $ 2.40 Diluted earnings per share $ 2.21 $ 2.37 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Financial instruments at fair value on recurring basis | As of June 30, 2015 , 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) $ — $ 2,678 $ — $ 2,678 Total assets at fair value $ — $ 2,678 $ — $ 2,678 Liabilities: Derivatives (1) $ — $ 44 $ — $ 44 Contingent consideration — — 10,000 10,000 Total liabilities at fair value $ — $ 44 $ 10,000 $ 10,044 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 two years . During 2015 , the Company paid $4.0 million in conjunction with achieved milestone targets. 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, 2015 . As of June 30, 2014 , 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) $ — $ 253 $ — $ 253 Total assets at fair value $ — $ 253 $ — $ 253 Liabilities: Derivatives (1) $ — $ 1,053 $ — $ 1,053 Contingent consideration 14,000 14,000 Total liabilities at fair value $ — $ 1,053 $ 14,000 $ 15,053 (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 He34
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
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) 2015 2014 Derivatives designated as hedging instruments Other current assets - range forward contracts $ 2,626 $ 184 Other current liabilities - range forward contracts — (6 ) Other assets - range forward contracts — 42 Total derivatives designated as hedging instruments 2,626 220 Derivatives not designated as hedging instruments Other current assets - currency forward contracts 52 27 Other current liabilities - currency forward contracts (44 ) (1,047 ) Total derivatives not designated as hedging instruments 8 (1,020 ) Total derivatives $ 2,634 $ (800 ) |
Losses (gains) related to derivatives not designated as hedging instruments | (Gains) losses related to derivatives not designated as hedging instruments have been recognized as follows: (in thousands) 2015 2014 2013 Other (income) expense, net - currency forward contracts $ (1,026 ) $ 1,057 $ 1,210 |
Losses related to cash flow hedges | The following represents losses related to cash flow hedges: (in thousands) 2015 2014 2013 Gains (losses) recognized in other comprehensive loss, net $ 6,651 $ (702 ) $ (611 ) (Gains) losses reclassified from accumulated other comprehensive loss into other (income) expense, net $ (250 ) $ 1,399 $ 1,116 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following at June 30: (in thousands) 2015 2014 Finished goods $ 324,840 $ 371,599 Work in process and powder blends 249,629 308,129 Raw materials 100,881 126,004 Inventories at current cost 675,350 805,732 Less: LIFO valuation (99,819 ) (101,966 ) Total inventories $ 575,531 $ 703,766 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Other Liabilities, Current [Abstract] | |
Other Current Liabilities [Text Block] | Other current liabilities consisted of the following at June 30: (in thousands) 2015 2014 Accrued employee benefits $ 40,995 $ 29,758 Accrued restructuring (Note 14) 20,788 9,002 Payroll, state and local taxes 15,006 16,401 Accrued legal and professional fees 11,710 11,848 Other 90,179 91,894 Total other current liabilities $ 178,678 $ 158,903 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Before Income Taxes | ncome before income taxes consisted of the following for the years ended June 30: (in thousands) 2015 2014 2013 (Loss) income before income taxes: United States $ (323,299 ) $ 59,160 $ 87,499 International (64,316 ) 169,649 179,110 Total (loss) income before income taxes $ (387,615 ) $ 228,809 $ 266,609 Current income taxes: Federal $ (9,328 ) $ 15,108 $ 10,645 State 816 896 3,441 International 40,433 27,488 45,375 Total current income taxes 31,921 43,492 59,461 Deferred income taxes: Federal $ (38,943 ) $ 10,157 $ 12,951 State (8,680 ) (62 ) 2,433 International (952 ) 13,024 (15,152 ) Total deferred income taxes: (48,575 ) 23,119 232 (Benefit) provision for income taxes $ (16,654 ) $ 66,611 $ 59,693 Effective tax rate 4.3 % 29.1 % 22.4 % |
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) 2015 2014 2013 Income taxes at U.S. statutory rate $ (135,665 ) $ 80,083 $ 93,313 State income taxes, net of federal tax benefits (1,748 ) 1,593 4,051 U.S. income taxes provided on international income 3,679 2,423 3,067 Combined tax effects of international income (21,560 ) (22,580 ) (30,692 ) Impact of goodwill impairment charges 134,657 — — Change in valuation allowance and other uncertain tax positions 1,530 (2,603 ) (4,550 ) Impact of domestic production activities deduction — (942 ) (3,546 ) Research and development credit (3,087 ) (1,385 ) (4,141 ) Change in permanent reinvestment assertion 2,945 7,170 — Other 2,595 2,852 2,191 (Benefit) provision for income taxes $ (16,654 ) $ 66,611 $ 59,693 |
Components of Net Deferred Tax Liabilities and Assets | The components of net deferred tax assets and (liabilities) were as follows at June 30: (in thousands) 2015 2014 Deferred tax assets: Net operating loss carryforwards $ 47,289 $ 52,812 Inventory valuation and reserves 18,023 20,612 Pension benefits 23,559 2,427 Other postretirement benefits 7,359 8,432 Accrued employee benefits 23,674 29,034 Other accrued liabilities 18,210 12,981 Hedging activities 4,354 14,996 Tax credits and other carryforwards 13,815 2,082 Other 12,028 14,617 Total 168,311 157,993 Valuation allowance (16,771 ) (17,860 ) Total deferred tax assets $ 151,540 $ 140,133 Deferred tax liabilities: Tax depreciation in excess of book $ 102,480 $ 107,171 Intangible assets 18,688 70,957 Total deferred tax liabilities $ 121,168 $ 178,128 Total net deferred tax assets (liabilities) $ 30,372 $ (37,995 ) |
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) 2015 2014 2013 Balance at beginning of year $ 20,366 $ 26,798 $ 7,298 Increases for tax positions of prior years — 1,461 — Decreases for tax positions of prior years (3,188 ) (6,982 ) — Increases for tax positions related to the current year — 116 23,231 Decreases related to settlement with taxing authority (348 ) (2,161 ) (3,813 ) Decreases related to lapse of statute of limitations (398 ) — — Foreign currency translation (1,813 ) 1,134 82 Balance at end of year $ 14,619 $ 20,366 $ 26,798 |
Pension and Other Postretirem38
Pension and Other Postretirement Benefits (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
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) 2015 2014 Change in benefit obligation: Benefit obligation, beginning of year $ 969,904 $ 890,831 Service cost 5,474 6,910 Interest cost 39,007 41,084 Participant contributions 12 15 Actuarial losses 50,464 56,925 Benefits and expenses paid (73,897 ) (43,948 ) Currency translation adjustments (36,377 ) 16,994 Effect of acquired business — 1,093 Special termination benefits 459 — Curtailments (592 ) — Benefit obligation, end of year $ 954,454 $ 969,904 Change in plans' assets: Fair value of plans' assets, beginning of year $ 884,264 $ 796,079 Actual return on plans' assets 20,007 108,640 Company contributions 8,703 10,902 Participant contributions 12 15 Benefits and expenses paid (73,897 ) (43,948 ) Currency translation adjustments (11,752 ) 12,576 Fair value of plans' assets, end of year $ 827,337 $ 884,264 Funded status of plans $ (127,117 ) $ (85,640 ) Amounts recognized in the balance sheet consist of: Long-term prepaid benefit $ 31,274 $ 81,307 Short-term accrued benefit obligation (14,592 ) (8,679 ) Accrued pension benefits (143,799 ) (158,268 ) Net amount recognized $ (127,117 ) $ (85,640 ) |
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) 2015 2014 Unrecognized net actuarial losses $ 196,567 $ 121,799 Unrecognized net prior service credits (953 ) (939 ) Unrecognized transition obligations 951 1,105 Total $ 196,565 $ 121,965 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) 2015 2014 Unrecognized net actuarial losses $ 5,969 $ 8,554 Unrecognized net prior service credits (172 ) (452 ) Total $ 5,797 $ 8,102 |
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) 2015 2014 Projected benefit obligation $ 165,281 $ 190,679 Accumulated benefit obligation 164,913 189,391 Fair value of plan assets 7,394 23,390 |
Net Periodic Pension (Income) Cost | The components of net periodic pension (income) cost include the following as of June 30: (in thousands) 2015 2014 2013 Service cost $ 5,474 $ 6,910 $ 7,797 Interest cost 39,007 41,084 38,183 Expected return on plans' assets (59,698 ) (59,527 ) (56,111 ) Amortization of transition obligation 78 78 69 Amortization of prior service cost (361 ) (234 ) (195 ) Special termination benefit charge 459 — — Curtailment loss 358 — — Settlement loss 261 — 158 Recognition of actuarial losses 3,671 2,642 14,961 Net periodic pension (income) cost $ (10,751 ) $ (9,047 ) $ 4,862 |
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) 2015 2014 Change in benefit obligation: Benefit obligation, beginning of year $ 24,476 $ 21,422 Service cost 45 55 Interest cost 934 1,006 Actuarial losses 1,489 3,658 Benefits paid (2,155 ) (1,665 ) Curtailments (3,584 ) — Benefit obligation, end of year $ 21,205 $ 24,476 Funded status of plan $ (21,205 ) $ (24,476 ) Amounts recognized in the balance sheet consist of: Short-term accrued benefit obligation $ (1,975 ) $ (1,960 ) Accrued postretirement benefits (19,230 ) (22,516 ) Net amount recognized $ (21,205 ) $ (24,476 ) |
Net Periodic Other Postretirement Costs (Benefit) | (in thousands) 2015 2014 2013 Service cost $ 45 $ 55 $ 72 Interest cost 934 1,006 938 Amortization of prior service credit (59 ) (111 ) (111 ) Recognition of actuarial loss 492 317 417 Curtailment gain (221 ) — — Net periodic other postretirement benefit cost $ 1,191 $ 1,267 $ 1,316 |
Significant Actuarial Assumptions Used to Determine the Present Value of Net Benefit Obligations | The significant assumptions used to determine the net periodic (income) cost for our pension and other postretirement benefit plans were as follows: 2015 2014 2013 Discount Rate: U.S. plans 4.4 % 4.9 % 4.0 % International plans 2.9-4.3% 3.5-4.8% 4.0-5.5% 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% Rate of return on plans assets: U.S. plans 7.5 % 8.0 % 8.0 % International plans 5.0-6.0% 5.0-6.0% 5.6 % 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: 2015 2014 2013 Discount Rate: U.S. plans 3.2-4.5% 4.4 % 4.9 % International plans 2.3-3.8% 2.9-4.3% 3.5-4.8% Rates of future salary increases: U.S. plans 3.0-4.0% 3.0-5.0% 3.0-5.0% International plans 2.5-3.0% 2.5-3.0% 2.5-3.0% |
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: 2015 2014 2013 Health care costs trend rate assumed for next year 7.3 % 7.5 % 7.8 % Rate to which the cost trend rate gradually declines 5.0 % 5.0 % 4.5 % Year that the rate reaches the rate at which it is assumed to remain 2024 2024 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, 2015: (in thousands) 1% Increase 1% Decrease Effect on total service and interest cost components $ 45 $ (40 ) Effect on other postretirement obligation 881 (790 ) |
Asset Allocations and Target Allocations by Asset Class | Our defined benefit pension plans’ asset allocations as of June 30, 2015 and 2014 and target allocations for 2016, by asset class, were as follows: 2015 2014 Target % Equity 32 % 34 % 30 % Fixed Income 65 % 63 % 70 % Other 3 % 3 % — % |
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, 2015: (in thousands) Level 1 Level 2 Level 3 Total Corporate fixed income securities $ — $ 391,275 $ — $ 391,275 Common / collective trusts: Value funds — 102,466 — 102,466 Growth funds — 54,179 — 54,179 Balanced funds — 10,090 — 10,090 Common stock 94,964 — — 94,964 Government securities: U.S. Government securities — 68,628 — 68,628 Foreign government securities — 44,474 — 44,474 Other fixed income securities — 32,540 — 32,540 Other 3,396 25,325 — 28,721 Total investments $ 98,360 $ 728,977 $ — $ 827,337 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 |
Accumulated Other Comprehensi39
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
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, 2015 (in thousands): Attributable to Kennametal: Post-retirement benefit plans Currency translation adjustment Derivatives Total Balance, June 30, 2014 $ (93,742 ) $ 38,811 $ (11,200 ) $ (66,131 ) Other comprehensive (loss) income before reclassifications (47,982 ) (136,120 ) 6,652 (177,450 ) Amounts Reclassified from AOCL 2,931 — (2,873 ) 58 Net current period other comprehensive loss (45,051 ) (136,120 ) 3,779 (177,392 ) AOCL, June 30, 2015 $ (138,793 ) $ (97,309 ) $ (7,421 ) $ (243,523 ) Attributable to noncontrolling interests: Balance, June 30, 2014 $ — $ 1,087 $ — $ 1,087 Other comprehensive loss before reclassifications — (3,345 ) — (3,345 ) Net current period other comprehensive loss — (3,345 ) — (3,345 ) AOCL, June 30, 2015 $ — $ (2,258 ) $ — $ (2,258 ) 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) income before reclassifications (11,990 ) 31,398 (706 ) 18,702 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 income before reclassifications — 366 — 366 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 income (loss) before reclassifications 39,376 9,772 (611 ) 48,537 Amounts Reclassified from AOCL 9,679 — 1,377 11,056 Net current period other comprehensive loss 49,055 9,772 766 59,593 Sale of subsidiary stock to noncontrolling — 2,065 — 2,065 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 ) 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, 2015 , 2014 and 2013 consisted of the following: Year Ended June 30, Details about AOCL components 2015 2014 2013 Affected line item in the Income Statement Gains and losses on cash flow hedges: Forward starting interest rate swaps $ 2,021 $ 1,945 $ 1,872 Interest expense Currency exchange contracts (6,700 ) 1,260 363 Other (income) expense, net Total before tax (4,679 ) 3,205 2,235 Tax (expense) benefit (1,806 ) 1,218 858 (Benefit) provision for income taxes Net of tax $ (2,873 ) $ 1,987 $ 1,377 Post-retirement benefit plans: Amortization of transition obligations $ 78 $ 78 $ 69 See Note 12 for further details Amortization of prior service credit (420 ) (345 ) (306 ) See Note 12 for further details Recognition of actuarial losses 4,163 2,959 15,378 See Note 12 for further details Total before tax 3,821 2,692 15,141 Tax benefit 890 508 5,462 (Benefit) provision for income taxes Net of tax $ 2,931 $ 2,184 $ 9,679 |
Amount of Income Tax (Expense) Benefit Allocated to Each Component of Other Comprehensive Income (Loss) [Table Text Block] | The amount of income tax allocated to each component of other comprehensive (loss) for the year ended June 30, 2015 : (in thousands) Pre-tax Tax impact Net of tax Unrealized gain on derivatives designated and qualified as cash flow hedges $ 10,834 $ (4,182 ) $ 6,652 Reclassification of unrealized gain on expired derivatives designated and qualified as cash flow hedges (4,679 ) 1,806 (2,873 ) Unrecognized net pension and other postretirement benefit loss (76,029 ) 28,047 (47,982 ) Reclassification of net pension and other postretirement benefit loss 3,821 (890 ) 2,931 Foreign currency translation adjustments (147,172 ) 7,707 (139,465 ) Other comprehensive (loss) $ (213,225 ) $ 32,488 $ (180,737 ) The amount of income tax allocated to each component of other comprehensive income for the year ended June 30, 2014 : (in thousands) Pre-tax Tax impact Net of tax Unrealized loss on derivatives designated and qualified as cash flow hedges $ (1,139 ) $ 433 $ (706 ) Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges 3,205 (1,218 ) 1,987 Unrecognized net pension and other postretirement benefit loss (15,900 ) 3,910 (11,990 ) Reclassification of net pension and other postretirement benefit loss 2,692 (508 ) 2,184 Foreign currency translation adjustments 33,493 (1,730 ) 31,763 Other comprehensive income $ 22,351 $ 887 $ 23,238 The amount of income tax allocated to each component of other comprehensive income for the year ended June 30, 2013 : (in thousands) Pre-tax Tax impact Net of tax Unrealized loss on derivatives designated and qualified as cash flow hedges (992 ) 381 (611 ) Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges 2,235 (858 ) 1,377 Unrecognized net pension and other postretirement benefit gain 64,340 (24,964 ) 39,376 Reclassification of net pension and other postretirement benefit loss 15,141 (5,462 ) 9,679 Foreign currency translation adjustments 10,414 (1,191 ) 9,223 Other comprehensive income 91,138 (32,094 ) 59,044 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
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) June 30, 2014 Expense Asset Write-Down Other (2) Translation Cash Expenditures June 30, 2015 Industrial Severance $ 5,815 $ 20,713 $ — $ — $ (328 ) $ (12,744 ) $ 13,456 Facilities 444 2,277 (2,231 ) — (15 ) (475 ) — Other 67 77 — — (2 ) (114 ) 28 Total Industrial $ 6,326 $ 23,067 $ (2,231 ) $ — $ (345 ) $ (13,333 ) $ 13,484 Infrastructure Severance $ 2,458 $ 14,027 $ — $ (459 ) $ (223 ) $ (8,630 ) $ 7,173 Facilities 190 4,969 (3,638 ) — (32 ) (1,358 ) 131 Other 28 — — — (3 ) (25 ) — Total Infrastructure 2,676 18,996 (3,638 ) (459 ) (258 ) (10,013 ) 7,304 Total $ 9,002 $ 42,063 $ (5,869 ) $ (459 ) $ (603 ) $ (23,346 ) $ 20,788 (2) Special termination benefit charge for one of our U.S.-based benefit pension plans resulting from a plant closure - see Note 12. (in thousands) June 30, 2013 Expense Asset Write-Down Other Translation Cash Expenditures June 30, 2014 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 Asset impairment Charges See discussion on Infrastructure segment goodwill and other intangible asset impairment charges in Note 2. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
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 2015 , 2014 and 2013 were as follows: 2015 2014 2013 Risk-free interest rate 1.5 % 1.3 % 0.6 % Expected life (years) (3) 4.5 4.5 4.5 Expected volatility (4) 32.5 % 40.3 % 49.5 % Expected dividend yield 1.7 % 1.7 % 1.5 % (3) Expected life is derived from historical experience. (4) Expected volatility is based on the implied historical volatility of our stock. |
Changes in stock options | Changes in our stock options for 2015 were as follows: Options Weighted Average Exercise Price Weighted Average Remaining Life (years) Aggregate Intrinsic value (in thousands) Options outstanding, June 30, 2014 2,264,824 $ 33.95 Granted 436,541 40.81 Exercised (416,534 ) 27.18 Lapsed and forfeited (190,794 ) 41.08 Options outstanding, June 30, 2015 2,094,037 $ 36.08 4.4 $ 4,720 Options vested and expected to vest, June 30, 2015 2,062,054 $ 36.02 4.4 $ 4,720 Options exercisable, June 30, 2015 1,615,372 $ 34.65 3.2 $ 4,720 |
Changes in time vesting and performance vesting restricted stock units | Changes in our time vesting and performance vesting restricted stock units for 2015 were as follows: Performance Vesting Stock Units Performance Vesting Weighted Average Fair Value Time Vesting Stock Units Time Vesting Weighted Average Fair Value Unvested performance vesting and time vesting restricted stock units, June 30, 2014 197,356 $ 40.92 743,326 $ 39.20 Granted 88,536 43.16 455,296 42.00 Vested (28,022 ) 38.95 (385,321 ) 37.42 Performance metric not achieved (65,373 ) 43.16 — — Forfeited (91,252 ) 42.96 (124,033 ) 42.20 Unvested performance vesting and time vesting restricted stock units, June 30, 2015 101,245 $ 43.00 689,268 $ 41.53 |
Segment Data (Tables)
Segment Data (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Data | Segment data is summarized as follows: (in thousands) 2015 2014 2013 Sales: Industrial $ 1,461,744 $ 1,524,075 $ 1,386,690 Infrastructure 1,185,451 1,313,115 1,202,683 Total sales $ 2,647,195 $ 2,837,190 $ 2,589,373 Operating (loss) income: Industrial $ 160,894 $ 177,040 $ 192,828 Infrastructure (509,381 ) 94,940 111,453 Corporate (9,336 ) (8,548 ) (7,887 ) Total operating (loss) income $ (357,823 ) $ 263,432 $ 296,394 Interest expense $ 31,466 $ 32,451 $ 27,472 Other (income) expense, net (1,674 ) 2,172 2,313 (Loss) income before income taxes $ (387,615 ) $ 228,809 $ 266,609 Depreciation and amortization: Industrial $ 64,188 $ 65,820 $ 60,458 Infrastructure 67,413 64,339 52,583 Corporate 63 63 63 Total depreciation and amortization $ 131,664 $ 130,222 $ 113,104 Equity income: Industrial $ — $ 34 $ — Infrastructure 6 50 42 Total equity income $ 6 $ 84 $ 42 Total assets: Industrial $ 1,259,270 $ 1,449,688 $ 1,190,026 Infrastructure 1,279,608 1,986,724 1,522,470 Corporate 310,651 431,674 588,543 Total assets $ 2,849,529 $ 3,868,086 $ 3,301,039 Capital expenditures: Industrial $ 64,497 $ 71,628 $ 47,501 Infrastructure 36,442 45,748 35,334 Total capital expenditures $ 100,939 $ 117,376 $ 82,835 Investments in affiliated companies: Industrial $ — $ — $ 234 Infrastructure 361 495 437 Total investments in affiliated companies $ 361 $ 495 $ 671 |
Geographic Information for Sales [Table Text Block] | Geographic information for sales, based on country of origin, and assets is as follows: (in thousands) 2015 2014 2013 Sales: United States $ 1,176,622 $ 1,198,541 $ 1,052,466 Germany 442,009 511,209 454,807 China 246,953 248,212 239,418 Italy 85,530 107,511 94,183 India 85,193 81,455 83,401 Canada 73,912 78,163 93,257 United Kingdom 70,600 105,041 92,614 Other 466,376 507,058 479,227 Total sales $ 2,647,195 $ 2,837,190 $ 2,589,373 Total assets: United States $ 1,338,594 $ 1,842,453 $ 1,228,923 Germany 394,491 538,661 646,983 China 274,774 341,949 311,053 Switzerland 194,139 264,928 207,000 India 97,463 94,897 94,914 Italy 94,978 178,141 172,764 United Kingdom 71,342 79,657 107,738 Canada 60,492 133,481 138,959 Other 323,256 393,919 392,705 Total assets: $ 2,849,529 $ 3,868,086 $ 3,301,039 |
Revenue from External Customers by Products and Services [Table Text Block] | Approximate sales by end markets as a percentage of consolidated sales are as follows: 2015 2014 2013 End Markets: General engineering 36 % 31 % 29 % Transportation 21 21 21 Energy 19 23 23 Earthworks 17 19 20 Aerospace and defense 7 6 7 Total 100 % 100 % 100 % |
Selected Quarterly Financial 43
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Quarterly Financial Data [Abstract] | |
Selected Quarterly Financials Data [Table Text Block] | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) For the quarter ended (in thousands, except per share data) September 30 December 31 March 31 June 30 2015 Sales $ 694,941 $ 675,631 $ 638,970 $ 637,653 Gross profit 218,099 199,458 199,470 188,966 Net income (loss) attributable to Kennametal 39,489 (388,302 ) (46,229 ) 21,146 Basic earnings (loss) per share attributable to Kennametal (5) Net income 0.50 (4.89 ) (0.58 ) 0.27 Diluted earnings (loss) per share attributable to Kennametal (5) Net income 0.49 (4.89 ) (0.58 ) 0.26 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 (5) Net income 0.48 0.31 0.65 0.58 Diluted earnings per share attributable to Kennametal (5) Net income 0.48 0.30 0.64 0.57 (5) 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. |
Summary of Significant Accoun44
Summary of Significant Accounting Policies - Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Goodwill, Gross | $ 1,095,731 | $ 1,126,418 | $ 872,597 | |
Goodwill, Accumulated Impairment Loss | (678,342) | (150,842) | (150,842) | |
Goodwill | 417,389 | 975,576 | 721,755 | |
Goodwill, Acquired During Period | 2,984 | 243,577 | ||
Goodwill, Translation Adjustments | (33,671) | 10,244 | ||
Goodwill, Period Increase (Decrease) | (30,687) | 253,821 | ||
Goodwill, Impairment Loss | (527,500) | |||
Industrial [Member] | ||||
Goodwill, Gross | 455,371 | 472,337 | 408,925 | |
Goodwill, Accumulated Impairment Loss | (150,842) | (150,842) | (150,842) | |
Goodwill | 304,529 | 321,495 | 258,083 | |
Goodwill, Acquired During Period | 60,100 | |||
Goodwill, Translation Adjustments | (19,950) | 3,312 | ||
Goodwill, Period Increase (Decrease) | (16,966) | 63,412 | ||
Goodwill, Impairment Loss | 0 | |||
Infrastructure [Member] | ||||
Goodwill, Gross | 640,360 | 654,081 | 463,672 | |
Goodwill, Accumulated Impairment Loss | (527,500) | 0 | 0 | |
Goodwill | 112,860 | 654,081 | $ 463,672 | |
Goodwill, Acquired During Period | 0 | 183,477 | ||
Goodwill, Translation Adjustments | (13,721) | 6,932 | ||
Goodwill, Period Increase (Decrease) | (13,721) | $ 190,409 | ||
Goodwill, Impairment Loss | $ (527,500) | |||
March Charges [Member] | Infrastructure [Member] | ||||
Goodwill and Intangible Asset Impairment | $ 152,900 | |||
Goodwill, Impairment Loss | (152,500) | |||
December Charges [Member] | Infrastructure [Member] | ||||
Goodwill and Intangible Asset Impairment | 376,500 | |||
Goodwill, Impairment Loss | (375,000) | |||
Infrastructure Indefinite-Lived Trademark Asset [Member] | March Charges [Member] | Infrastructure [Member] | ||||
Impairment of Intangible Assets (Excluding Goodwill) | 400 | |||
Infrastructure Indefinite-Lived Trademark Asset [Member] | Charge Associated with Finalization [Member] | Infrastructure [Member] | ||||
Impairment of Intangible Assets (Excluding Goodwill) | 6,800 | |||
Infrastructure Indefinite-Lived Trademark Asset [Member] | December Charges [Member] | Infrastructure [Member] | ||||
Impairment of Intangible Assets (Excluding Goodwill) | 1,500 | |||
Minimum [Member] | Infrastructure [Member] | Portfolio of Businesses for Strategic Alternatives [Member] | ||||
Net Book Value | 170,000 | |||
Maximum [Member] | Infrastructure [Member] | Portfolio of Businesses for Strategic Alternatives [Member] | ||||
Net Book Value | $ 250,000 | |||
Industrial Reporting Unit [Member] | ||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 90.00% |
Summary of Significant Accoun45
Summary of Significant Accounting Policies (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | $ (153,370) | $ (139,245) |
Finite and Infinite Lived Intangible Assets Gross | 440,039 | 482,421 |
Contract-based [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 8,523 | 23,446 |
Finite-Lived Intangible Assets, Accumulated Amortization | (6,990) | (10,820) |
Technology-Based and other [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 52,820 | 54,842 |
Finite-Lived Intangible Assets, Accumulated Amortization | (29,723) | (28,516) |
Customer-related [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 275,796 | 285,751 |
Finite-Lived Intangible Assets, Accumulated Amortization | (90,141) | (76,376) |
Unpatented Technology [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 59,449 | 61,867 |
Finite-Lived Intangible Assets, Accumulated Amortization | (14,426) | (12,549) |
Trademarks [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 18,575 | 19,256 |
Finite-Lived Intangible Assets, Accumulated Amortization | (12,090) | (10,984) |
Trademarks [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 24,876 | $ 37,259 |
Minimum [Member] | Contract-based [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 3 years | |
Minimum [Member] | Technology-Based and other [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 4 years | |
Minimum [Member] | Customer-related [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | |
Minimum [Member] | Unpatented Technology [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | |
Minimum [Member] | Trademarks [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 5 years | |
Maximum [Member] | Contract-based [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 15 years | |
Maximum [Member] | Technology-Based and other [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 20 years | |
Maximum [Member] | Customer-related [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 21 years | |
Maximum [Member] | Unpatented Technology [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 30 years | |
Maximum [Member] | Trademarks [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 20 years |
Summary Of Significant Accoun46
Summary Of Significant Accounting Policies (Details 2) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 153,370 | $ 139,245 |
Finite and Infinite Lived Intangible Assets Gross | 440,039 | 482,421 |
Contractual Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 8,523 | 23,446 |
Finite-Lived Intangible Assets, Accumulated Amortization | 6,990 | 10,820 |
Technology-Based and other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 52,820 | 54,842 |
Finite-Lived Intangible Assets, Accumulated Amortization | 29,723 | 28,516 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 275,796 | 285,751 |
Finite-Lived Intangible Assets, Accumulated Amortization | 90,141 | 76,376 |
Unpatented Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 59,449 | 61,867 |
Finite-Lived Intangible Assets, Accumulated Amortization | 14,426 | 12,549 |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 18,575 | 19,256 |
Finite-Lived Intangible Assets, Accumulated Amortization | 12,090 | 10,984 |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 24,876 | $ 37,259 |
Summary Of Significant Accoun47
Summary Of Significant Accounting Policies - Stock-Based Compensation (Details) - shares | 12 Months Ended | |
Jun. 30, 2015 | Oct. 26, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercisable Period for Capital Stock Options | 10 years | |
Amended and Restated Two Thousand Ten Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 9,500,000 |
Summary Of Significant Accoun48
Summary Of Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($) $ in Thousands, shares in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Property, Plant and Equipment [Line Items] | |||
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 | $ 45,000 | $ 52,700 | |
Increase Decrease in Intangible Assets Due to Foreign Currency Translation Adjustments | (10,700) | 3,000 | |
Amortization | 26,686 | $ 26,195 | $ 20,760 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 24,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 22,300 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 20,500 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 19,800 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 14,400 | ||
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 | |
Unexercised capital stock options, restricted stock units and restricted stock awards excluded from computation of diluted EPS | 0.3 | 1 | |
Conditions of Shipment are Considered to Have Occurred Unless Written Notice of Objection is Received | |||
Termination of Warranty | |||
Research and Development Expense | $ 45,100 | $ 44,000 | $ 39,700 |
Currency Transaction Gain (Loss), before Tax | $ 1,700 | $ (2,500) | $ (4,500) |
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 Accountin
Summary of Signficant Accounting Policies (Details Textual 1) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Business Acquisition [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 153,370 | $ 139,245 |
Goodwill, Acquired During Period | 2,984 | 243,577 |
Finite and Infinite Lived Intangible Assets Gross | 440,039 | 482,421 |
Contract-based [Member] | ||
Business Acquisition [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 8,523 | 23,446 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 6,990 | 10,820 |
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 | $ 52,820 | 54,842 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 29,723 | 28,516 |
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 | $ 275,796 | 285,751 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 90,141 | 76,376 |
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 | $ 59,449 | 61,867 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 14,426 | 12,549 |
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 | $ 18,575 | 19,256 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 12,090 | 10,984 |
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) | $ 24,876 | 37,259 |
Infrastructure [Member] | ||
Business Acquisition [Line Items] | ||
Goodwill, Acquired During Period | 0 | $ 183,477 |
Infrastructure [Member] | Infrastructure Technology Asset [Member] | ||
Business Acquisition [Line Items] | ||
Intangible Asset Write-Down | 10,500 | |
Impairment of Intangible Assets (Excluding Goodwill) | 5,500 | |
Reduction of Liability | $ 5,000 |
Summary of Significant Accoun50
Summary of Significant Accounting Policies (Details Textual 2) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Goodwill, Acquired During Period | $ 2,984 | $ 243,577 |
Infrastructure [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Goodwill, Acquired During Period | $ 0 | 183,477 |
Industrial [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Goodwill, Acquired During Period | 60,100 | |
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 | |
Finite-lived Intangible Assets Acquired | 127,300 | |
Goodwill Deductible For Tax Purposes | 202,100 | |
TMB [Member] | Infrastructure [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Goodwill, Acquired During Period | 183,500 | |
TMB [Member] | Industrial [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Goodwill, Acquired During Period | 60,100 | |
TMB [Member] | Trademarks [Member] | Infrastructure [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived Intangible Assets Acquired | $ 2,700 | |
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 | |
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 | |
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 | |
TMB [Member] | Technology-Based and other [Member] | Industrial [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived Intangible Assets Acquired | $ 200 | |
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 | |
TMB [Member] | Customer-Related Intangible Assets [Member] | Industrial [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived Intangible Assets Acquired | $ 2,900 | |
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 | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Summary of Significant Accoun51
Summary of Significant Accounting Policies (Details Textual 3) - 12 months ended Jun. 30, 2014 - Emura [Member] - USD ($) $ in Millions | Total |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 16.4 |
Technology-Based and other [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 15.9 |
Finite-Lived Intangible Asset, Useful Life | 20 years |
Contractual Rights [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 0.4 |
Finite-Lived Intangible Asset, Useful Life | 3 years |
Trademarks [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 0.1 |
Finite-Lived Intangible Asset, Useful Life | 20 years |
Supplemental Cash Flow Inform52
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Supplemental Cash Flow Elements [Abstract] | |||
Interest | $ 30,984 | $ 29,836 | $ 24,432 |
Income taxes | 40,295 | 49,393 | 51,098 |
Change In Accounts Payable Related To Purchases Of Property, Plant And Equipment | $ (9,900) | $ 2,100 | $ (8,600) |
Acquisition Acquisition - Purch
Acquisition Acquisition - Purchase Price Allocation (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 |
Assets, Current [Abstract] | |||
Goodwill | $ 417,389 | $ 975,576 | $ 721,755 |
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 - Unaudited Pro For
Acquisition - Unaudited Pro Forma Financial Information (Details) - TMB [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Pro forma operating results | ||
Net Sales | $ 2,941,005 | $ 2,902,160 |
Net income attributable to Kennametal | $ 175,804 | $ 190,863 |
Per share data attributable to Kennametal Shareholders: | ||
Basic earnings per share | $ 2.23 | $ 2.40 |
Diluted earnings per share | $ 2.21 | $ 2.37 |
Acquisition - Narrative (Detail
Acquisition - Narrative (Details) - USD ($) | 8 Months Ended | 12 Months Ended | ||||
Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Nov. 04, 2013 | Aug. 01, 2013 | |
Acquisitions (Textual) [Abstract] | ||||||
Goodwill | $ 975,576,000 | $ 417,389,000 | $ 975,576,000 | $ 721,755,000 | ||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 194,900,000 | |||||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | (10,500,000) | |||||
Restructuring and Related Pre-tax Costs | 58,100,000 | 19,100,000 | 0 | |||
Payments to Acquire Businesses, Gross | 0 | 634,615,000 | 500,000 | |||
Contingent Consideration | 14,000,000 | 10,000,000 | 14,000,000 | |||
Goodwill, Acquired During Period | 2,984,000 | $ 243,577,000 | ||||
TMB [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Significant Acquisitions and Disposals, Acquisition Costs or Sale Proceeds | $ 607,000,000 | |||||
Acquisitions (Textual) [Abstract] | ||||||
Number of Employees | 1,175 | |||||
Number of Primary Operating Facilities | 12 | |||||
Acquisition Related Costs | $ 8,700,000 | |||||
Goodwill | 243,577,000 | 243,577,000 | ||||
Acquisition-Related Pre-tax Costs | 8,700,000 | 8,700,000 | ||||
Restructuring and Related Pre-tax Costs | 19,100,000 | |||||
Goodwill, Acquired During Period | 243,577,000 | |||||
Emura [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Significant Acquisitions and Disposals, Acquisition Costs or Sale Proceeds | $ 40,100,000 | |||||
Acquisitions (Textual) [Abstract] | ||||||
Payments to Acquire Businesses, Gross | 25,600,000 | 500,000 | ||||
Contingent Consideration | $ 14,000,000 | |||||
Small Acquisition in Infrastructure Segment [Member] | ||||||
Acquisitions (Textual) [Abstract] | ||||||
Small Acquisition, Acquisition Cost | 2,000,000 | |||||
Industrial [Member] | ||||||
Acquisitions (Textual) [Abstract] | ||||||
Goodwill | $ 321,495,000 | $ 304,529,000 | 321,495,000 | $ 258,083,000 | ||
Goodwill, Acquired During Period | 60,100,000 | |||||
Industrial [Member] | TMB [Member] | ||||||
Acquisitions (Textual) [Abstract] | ||||||
Goodwill, Acquired During Period | $ 60,100,000 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives | [1] | $ 2,678 | $ 253 | |
Total assets at fair value | 2,678 | 253 | ||
Derivatives | [1] | 44 | 1,053 | |
Contingent Consideration | 10,000 | 14,000 | ||
Total liabilities at fair value | 10,044 | 15,053 | ||
Contingent Consideration Paid | $ 4,000 | |||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives | [1] | 2,678 | 253 | |
Total assets at fair value | 2,678 | 253 | ||
Derivatives | [1] | 44 | 1,053 | |
Total liabilities at fair value | $ 44 | 1,053 | ||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Period Over which Contingent Consideration is Payable | 2 years | |||
Contingent Consideration | $ 10,000 | $ 14,000 | ||
Total liabilities at fair value | $ 10,000 | |||
[1] | (in thousands)Level 1 Level 2 Level 3 TotalAssets: Derivatives (1)$— $253 $— $253Total assets at fair value$— $253 $— $253 Liabilities: Derivatives (1)$— $1,053 $— $1,053 Contingent consideration 14,000 14,000Total liabilities at fair value$— $1,053 $14,000 $15,053 (1) Currency derivatives are valued based on observable market spot and forward rates and are classified within Level 2 of the fair value hierarchy. |
Derivative Instruments and He57
Derivative Instruments and Hedging Activities - Fair Value of Derivatives Designated and Note Designated as Hedging Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Fair value of derivatives | ||
Total derivatives designated as hedging instruments | $ 2,626 | $ 220 |
Total derivatives not designated as hedging instruments | 8 | (1,020) |
Total derivatives | 2,634 | (800) |
Range Forward Contracts [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ||
Fair value of derivatives | ||
Derivative assets designated as hedging instruments | 2,626 | 184 |
Range Forward Contracts [Member] | Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||
Fair value of derivatives | ||
Derivative liabilities designated as hedging instruments | 0 | (6) |
Range Forward Contracts [Member] | Designated as Hedging Instrument [Member] | Other Assets [Member] | ||
Fair value of derivatives | ||
Derivative assets designated as hedging instruments | 0 | 42 |
Currency Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ||
Fair value of derivatives | ||
Derivative assets designated as hedging instruments | 52 | 27 |
Currency Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||
Fair value of derivatives | ||
Derivative liabilities designated as hedging instruments | $ (44) | $ (1,047) |
Derivative Instruments and He58
Derivative Instruments and Hedging Activities - Losses (gains) related to Derivatives Not Designated as Hedging Instruments and to Cash Flow Hedges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Currency Forward Contracts [Member] | Other Expense Income Net [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, (Gain )Loss Recognized in Income, Net | |||
Other (income) expense, net - currency forward contracts | $ (1,026) | $ 1,057 | $ 1,210 |
Range Forward And Interest Rate Swap Contracts [Member] [Member] | Cash flow hedging [Member] | |||
(Gains) losses related to cash flow hedges | |||
Gains (losses) recognized in other comprehensive loss, net | 6,651 | (702) | (611) |
(Gains) losses reclassified from accumulated other comprehensive loss into other (income) expense, net | $ (250) | $ 1,399 | $ 1,116 |
Derivative Instruments and He59
Derivative Instruments and Hedging Activities - Narrative 1 (Details) - Derivative Contract Type [Domain] - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative Instruments and Hedging Activities (Textual) [Abstract] | ||
Recognize loss on outstanding derivatives in the next 12 months | $ 2.4 | |
Gains or losses recognized in earnings due to ineffectiveness and excluded from effectiveness testing | $ 0 | $ 0 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Inventories | ||
Finished goods | $ 324,840 | $ 371,599 |
Work in process and powder blends | 249,629 | 308,129 |
Raw materials | 100,881 | 126,004 |
Inventories at current cost | 675,350 | 805,732 |
Less: LIFO valuation | (99,819) | (101,966) |
Total inventories | $ 575,531 | $ 703,766 |
Inventories (Textual) [Abstract] | ||
Percentage of inventories valued by using LIFO method | 47.00% | 43.00% |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 |
Other Liabilities, Current [Abstract] | |||
Accrued Employee Benefits, Current | $ 40,995 | $ 29,758 | |
Payroll State and Local Taxes | 15,006 | 16,401 | |
Accrued Restructuring | 20,788 | 9,002 | $ 0 |
Accrued Professional Fees, Current | 11,710 | 11,848 | |
Other | 90,179 | 91,894 | |
Total Other Current Liabilities | $ 178,678 | $ 158,903 |
Notes Payable and Lines of Cr62
Notes Payable and Lines of Credit (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Notes Payable and Lines of Credit (Textual) [Abstract] | ||
Notes Payable | $ 7,573 | $ 72,455 |
Weighted Average Interest Rate for Notes Payable and Lines of Credit | 2.00% | 1.50% |
Notes Payable to Banks [Member] | ||
Notes Payable and Lines of Credit (Textual) [Abstract] | ||
Notes Payable | $ 7,600 | $ 72,500 |
Line of Credit Facility, Maximum Borrowing Capacity | 200,400 | |
Line of Credit Facility Unused | $ 192,800 |
Long-Term Debt and Capital Le63
Long-Term Debt and Capital Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Long-term Debt and Capital Lease Obligations Current and Noncurrent | ||
Capital leases | $ 1,771 | $ 2,886 |
Other | 6 | 15 |
Long-term Debt and Capital Lease Obligations, Including Current Maturities | 744,014 | 989,328 |
Long-term Debt, Current Maturities [Abstract] | ||
Long-term Debt, Current Maturities | (8,049) | (7,512) |
Capital Lease, Current Maturities | (74) | (135) |
Other, Current Maturities | (6) | (15) |
Total Current Maturities | (8,129) | (7,662) |
Long-term Debt and Capital Leases, Less Current Maturities | 735,885 | 981,666 |
Euro Denominated Borrowings [Member] | ||
Long-term Debt and Capital Lease Obligations Current and Noncurrent | ||
Long-term Debt | 42,609 | 200,112 |
U.S. Dollar Denominated Borrowings [Member] | ||
Long-term Debt and Capital Lease Obligations Current and Noncurrent | ||
Long-term Debt | 200 | 87,000 |
2.650% Senior Notes due 2019 [Member] | ||
Long-term Debt and Capital Lease Obligations Current and Noncurrent | ||
Long-term Debt | 399,671 | 399,595 |
3.875% Senior Unsecured Notes Due in 2022 [Member] | ||
Long-term Debt and Capital Lease Obligations Current and Noncurrent | ||
Long-term Debt | $ 299,757 | $ 299,720 |
Long-Term Debt and Capital Le64
Long-Term Debt and Capital Leases - Future Minimum Lease Payments (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Future Minimum Lease Payments Under Capital Leases | |
2,016 | $ 76 |
2,017 | 1,625 |
2,018 | 199 |
2,019 | 0 |
2,020 | 0 |
After 2,021 | 0 |
Total Future Minimum Lease Payments | 1,900 |
Less Amount Representing Interest | (129) |
Capital Lease Obligations | $ 1,771 |
Long -Term Debt and Capital Lea
Long -Term Debt and Capital Leases - Narrative (Details) - USD ($) $ in Thousands | Nov. 07, 2012 | Feb. 29, 2012 | Jun. 30, 2015 | Jun. 30, 2014 | Feb. 14, 2012 | Oct. 21, 2011 |
Long Term Debt and Capital Leases (Additional Textual) [Abstract] | ||||||
Minimum Interest Rate Stated Percentage under Capital Lease with terms | 1.60% | 1.60% | ||||
Maximum Interest Rate Stated Percentage under Capital Leases with terms | 5.40% | 5.40% | ||||
Future Principal Maturities of Long-term Debt in 2016 | $ 8,000 | |||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 34,800 | |||||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 399,700 | |||||
Future Principal Maturities of Long-term Debt Beyond 2020 | 299,800 | |||||
Capital Lease Obligations | $ 1,771 | $ 2,886 | ||||
US Dollar Denominated Borrowings [Member] | ||||||
Long-Term Debt and Capital Leases (Textual) [Abstract] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.20% | 1.20% | ||||
Euro Denominated Borrowings [Member] | ||||||
Long-Term Debt and Capital Leases (Textual) [Abstract] | ||||||
Debt Instrument, Interest Rate, Effective Percentage Rate Range, Minimum | 0.90% | 1.10% | ||||
Debt Instrument, Interest Rate, Effective Percentage Rate Range, Maximum | 1.10% | 1.30% | ||||
2.650% Senior Notes due 2019 [Member] | ||||||
Long-Term Debt and Capital Leases (Textual) [Abstract] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.65% | |||||
Debt Instrument, Unamortized Discount | $ 300 | $ 400 | ||||
Long Term Debt and Capital Leases (Additional Textual) [Abstract] | ||||||
Proceeds from Issuance of Senior Long-term Debt | $ 400,000 | |||||
3.875% Senior Unsecured Notes Due in 2022 [Member] | ||||||
Long-Term Debt and Capital Leases (Textual) [Abstract] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.875% | |||||
Debt Instrument, Unamortized Discount | 200 | 300 | ||||
Long Term Debt and Capital Leases (Additional Textual) [Abstract] | ||||||
Proceeds from Issuance of Senior Long-term Debt | $ 300,000 | |||||
2011 Credit Agreement [Member] | ||||||
Long-Term Debt and Capital Leases (Textual) [Abstract] | ||||||
Maximum Borrowing Capacity under the 2011 Credit Agreement | $ 600,000 | |||||
Borrowing outstanding under 2011 Credit Agreement | $ 42,800 | $ 287,100 | ||||
Term of Long Term Debt | 5 years |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Before Income Taxes | |||
United States | $ (323,299) | $ 59,160 | $ 87,499 |
International | (64,316) | 169,649 | 179,110 |
Total (loss) income Before Income Taxes | (387,615) | 228,809 | 266,609 |
Current Income Taxes | |||
Federal | (9,328) | 15,108 | 10,645 |
State | 816 | 896 | 3,441 |
International | 40,433 | 27,488 | 45,375 |
Total Current Income Taxes | 31,921 | 43,492 | 59,461 |
Federal | (38,943) | 10,157 | 12,951 |
State | (8,680) | (62) | 2,433 |
International | (952) | 13,024 | (15,152) |
Total deferred income taxes | (48,575) | 23,119 | 232 |
(Benefit) provision for income taxes | $ (16,654) | $ 66,611 | $ 59,693 |
Effective tax rate | 4.30% | 29.10% | 22.40% |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
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 | $ (135,665) | $ 80,083 | $ 93,313 |
State Income Taxes, Net of Federal Tax Benefits | (1,748) | 1,593 | 4,051 |
US Income Tax Provided On International Income | 3,679 | 2,423 | 3,067 |
Combined Tax Effects of International Income | (21,560) | (22,580) | (30,692) |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Impairment Losses, Amount | 134,657 | ||
Change in Valuation Allowance and Other Uncertain Tax Positions | 1,530 | (2,603) | (4,550) |
Impact of Domestic Production Activities Deduction | 0 | (942) | (3,546) |
Research and Development Credit | (3,087) | (1,385) | (4,141) |
Change In Permanent Reinvestment Assertion | 2,945 | 7,170 | |
Other | 2,595 | 2,852 | 2,191 |
(Benefit) provision for income taxes | $ (16,654) | $ 66,611 | $ 59,693 |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Deferred Tax Assets | ||
Net Operating Loss Carryforwards | $ 47,289 | $ 52,812 |
Inventory Valuation and Reserves | 18,023 | 20,612 |
Pension Benefits | 23,559 | 2,427 |
Other Postretirement Benefits | 7,359 | 8,432 |
Accrued Employee Benefits | 23,674 | 29,034 |
Other Accrued Liabilities | 18,210 | 12,981 |
Hedging Activities | 4,354 | 14,996 |
Tax Credit and Other Carryforwards | 13,815 | 2,082 |
Other | 12,028 | 14,617 |
Total | 168,311 | 157,993 |
Valuation Allowance | (16,771) | (17,860) |
Total Deferred Tax Assets | 151,540 | 140,133 |
Deferred Tax Liabilities | ||
Tax Depreciation in Excess of Book | 102,480 | 107,171 |
Intangible Assets | 18,688 | 70,957 |
Total Deferred Tax Liabilities | 121,168 | 178,128 |
Total Net Deferred Tax Liabilities | $ 30,372 | $ (37,995) |
Income Taxes - Reconciliation69
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 20,366 | $ 26,798 | $ 7,298 |
Increases for tax positions of prior years | 0 | 1,461 | 0 |
Decreases for tax positions of prior years | (3,188) | (6,982) | 0 |
Increases for tax positions related to the current year | 0 | 116 | 23,231 |
Decreases related to settlement with taxing authority | (348) | (2,161) | (3,813) |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | (398) | 0 | 0 |
Foreign currency translation | (1,813) | 1,134 | 82 |
Balance at end of year | $ 14,619 | $ 20,366 | $ 26,798 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Tax (Textual) [Abstract] | |||
Tax Adjustments Related to Settlements of Uncertain Tax Positions | $ 2,200 | $ 4,200 | |
Valuation Allowance Adjustment | 1,200 | ||
Change In Permanent Reinvestment Assertion | $ 2,945 | 7,170 | |
Tax Benefits associated with Net Operating Loss Carryforwards in Federal, State and Foreign Jurisdictions | 47,289 | 52,812 | |
Tax Benefits that Do Not Expire | 29,900 | ||
Valuation Allowance | (16,771) | (17,860) | |
Change in Valuation Allowance, Current Year | 1,100 | ||
Unremitted Earnings of Non-U.S. Subsidiaries and Affiliates | 2,087,900 | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 2,700 | 2,400 | 4,300 |
Interest Expense | 800 | ||
Reduction in Interest | 700 | $ 1,900 | |
Interest Accrued | 500 | 1,300 | |
Penalties Accrued | 200 | 400 | |
Reduction in Unrecognized Tax Benefit | 3,200 | $ 7,000 | |
Reasonably Possible amount of Unrecognized Tax Benefits within next 12 Months Could Decrease | 11,900 | ||
Expiring Year Fifteen Through Twenty [Member] | |||
Income Tax (Textual) [Abstract] | |||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 1,900 | ||
Expiring Year Ten Through Fifteen [Member] | |||
Income Tax (Textual) [Abstract] | |||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 2,800 | ||
Expiring Year Five Through Ten [Member] | |||
Income Tax (Textual) [Abstract] | |||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 7,400 | ||
Expiring Through Year Five [Member] | |||
Income Tax (Textual) [Abstract] | |||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | $ 5,300 |
Pension and Other Postretirem71
Pension and Other Postretirement Benefits - Funded Status of Pension Plans and Amounts Recognized in the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Change in Plan Assets | |||
Fair Value of Plans' Assets, Beginning of Year | $ 884,264 | ||
Fair Value of Plans' Assets, End of Year | 827,337 | $ 884,264 | |
Pension plans contribution [Member] | |||
Change in Benefit Obligation | |||
Benefit Obligation, Beginning of Year | 969,904 | 890,831 | |
Service Cost | 5,474 | 6,910 | $ 7,797 |
Interest Cost | 39,007 | 41,084 | 38,183 |
Participant Contributions | 12 | 15 | |
Actuarial Losses | 50,464 | 56,925 | |
Benefits and expenses paid | (73,897) | (43,948) | |
Currency Translation Adjustment | (36,377) | 16,994 | |
Effect of Acquired Business | 0 | 1,093 | |
Defined Benefit Plan, Special Termination Benefits | 459 | 0 | |
Plan Curtailments | (592) | 0 | |
Benefit Obligation, End of Year | 954,454 | 969,904 | 890,831 |
Change in Plan Assets | |||
Fair Value of Plans' Assets, Beginning of Year | 884,264 | 796,079 | |
Actual Return on Plans' Assets | 20,007 | 108,640 | |
Company Contributions | 8,703 | 10,902 | |
Participant Contributions | 12 | 15 | |
Benefits and expenses paid | (73,897) | (43,948) | |
Currency translation adjustments | (11,752) | 12,576 | |
Fair Value of Plans' Assets, End of Year | 827,337 | 884,264 | $ 796,079 |
Funded Status of Plans | (127,117) | (85,640) | |
Defined Benefit Plan, Assets for Plan Benefits, Noncurrent | 31,274 | 81,307 | |
Amounts Recognized in Balance Sheet | |||
Short-term Accrued Benefit Obligation | (14,592) | (8,679) | |
Accrued Pension Benefits | (143,799) | (158,268) | |
Net Amount Recognized | $ (127,117) | $ (85,640) |
Pension and Other Postretirem72
Pension and Other Postretirement Benefits - Amounts Related to Defined Pension Plans Recognized in Accumulated Other Comprehensive (Loss) Income (Details) - Pension plans contribution [Member] - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract] | ||
Unrecognized Net Actuarial Losses | $ 196,567 | $ 121,799 |
Unrecognized Net Prior Service Credits | (953) | (939) |
Unrecognized Transition Obligations | 951 | 1,105 |
Total | $ 196,565 | $ 121,965 |
Pension and Other Postretirem73
Pension and Other Postretirement Benefits - Plans with Accumulated Benefit Obligations Exceeding the Fair Value of Plan Assets (Details) - Pension plans contribution [Member] - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Project Benefit Obligation | $ 165,281 | $ 190,679 |
Accumulated Benefit Obligation | 164,913 | 189,391 |
Fair Value of Plan Assets | $ 7,394 | $ 23,390 |
Pension and Other Postretirem74
Pension and Other Postretirement Benefits - Components of Net Periodic Pension (Income) Cost (Details) - Pension plans contribution [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Net periodic pension (income) cost | |||
Service cost | $ 5,474 | $ 6,910 | $ 7,797 |
Interest cost | 39,007 | 41,084 | 38,183 |
Expected Return on Plans' Assets | (59,698) | (59,527) | (56,111) |
Amortization of transition obligation | 78 | 78 | 69 |
Amortization of prior service cost | (361) | (234) | (195) |
Special termination benefit charge | 459 | 0 | 0 |
Curtailment loss | (358) | 0 | 0 |
Settlement Loss | 261 | 0 | 158 |
Recognition of actuarial losses | 3,671 | 2,642 | 14,961 |
Net Periodic Benefit (Income) Cost | $ (10,751) | $ (9,047) | $ 4,862 |
Pension and Other Postretirem75
Pension and Other Postretirement Benefits - Funded Status of Other Postretirement Benefit Plans and Amounts Recognized in the Consolidated Balance Sheets (Details) - Other Postretirement Benefit Plan, Defined Benefit [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Change in Benefit Obligation | |||
Benefit Obligation, Beginning of Year | $ 24,476 | $ 21,422 | |
Service Cost | 45 | 55 | $ 72 |
Interest Cost | 934 | 1,006 | 938 |
Actuarial Losses | 1,489 | 3,658 | |
Benefits Paid | (2,155) | (1,665) | |
Benefit Obligation, End of Year | 21,205 | 24,476 | $ 21,422 |
Funded Status of Plans | (21,205) | (24,476) | |
Amounts Recognized in Balance Sheet | |||
Short-term Accrued Benefit Obligation | (1,975) | (1,960) | |
Accrued Postretirement Benefits | (19,230) | (22,516) | |
Net Amount Recognized | $ (21,205) | $ (24,476) |
Pension and Other Postretirem76
Pension and Other Postretirement Benefits - Amounts Related to Other Postretirement Benefit Plans Recognized in Accumulated Other Comprehensive (Loss) Income (Details) - Other postretirement benefit plans [Member] - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | ||
Unrecognized Net Actuarial Losses | $ 5,969 | $ 8,554 |
Unrecognized Net Prior Service Credits | (172) | (452) |
Total | $ 5,797 | $ 8,102 |
Pension and Other Postretirem77
Pension and Other Postretirement Benefits - Components of Net Periodic Other Postretirement Benefit Cost (Details) - Other postretirement benefit plans [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Net periodic other postretirement benefit costs | |||
Service cost | $ 45 | $ 55 | $ 72 |
Interest cost | 934 | 1,006 | 938 |
Amortization of prior service credit | (59) | (111) | (111) |
Recognition of actuarial loss | 492 | 317 | 417 |
Curtailment Gain | (221) | 0 | 0 |
Net Periodic Benefit (Income) Cost | $ 1,191 | $ 1,267 | $ 1,316 |
Pension and Other Postretirem78
Pension and Other Postretirement Benefits (Details 7) | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 |
U.S. Plans [Member] | |||
Discount Rate | |||
Discount Rate | 4.40% | 4.90% | |
Minimum [Member] | U.S. Plans [Member] | |||
Discount Rate | |||
Discount Rate | 3.20% | ||
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 | 2.30% | 2.90% | 3.50% |
Rates of Future Salary Increases [Abstract] | |||
Rate of Future Salary Increase | 2.50% | 2.50% | 2.50% |
Maximum [Member] | U.S. Plans [Member] | |||
Discount Rate | |||
Discount Rate | 4.50% | ||
Rates of Future Salary Increases [Abstract] | |||
Rate of Future Salary Increase | 4.00% | 5.00% | 5.00% |
Maximum [Member] | International Plans [Member] | |||
Discount Rate | |||
Discount Rate | 3.80% | 4.30% | 4.80% |
Rates of Future Salary Increases [Abstract] | |||
Rate of Future Salary Increase | 3.00% | 3.00% | 3.00% |
Pension and Other Postretirem79
Pension and Other Postretirement Benefits (Details 8) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
U.S. Plans [Member] | |||
Discount Rate [Abstract] | |||
Discount Rate | 4.40% | 4.90% | 4.00% |
Rate of Return on Plans Assets [Abstract] | |||
Rate of Return on Plan Assets | 7.50% | 8.00% | 8.00% |
International Plans [Member] | |||
Rate of Return on Plans Assets [Abstract] | |||
Rate of Return on Plan Assets | 5.60% | ||
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 | 2.90% | 3.50% | 4.00% |
Rates of Future Salary Increases [Abstract] | |||
Rate of Future Salary Increases | 2.50% | 2.50% | 2.50% |
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 | 4.30% | 4.80% | 5.50% |
Rates of Future Salary Increases [Abstract] | |||
Rate of Future Salary Increases | 3.00% | 3.00% | 4.00% |
Pension and Other Postretirem80
Pension and Other Postretirement Benefits - Significant Assumptions to Determine the Present Value of Net Benefit Obligations and the Net Periodic Costs (Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
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 | 7.25% | 7.50% | 7.80% |
Rate to which the Cost Trend Rate Gradually Declines | 5.00% | 5.00% | 4.50% |
Year that the Rate Reaches the Rate at which it is assumed to Remain | 2,024 | 2,024 | 2,029 |
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 | $ 45 | ||
Effect on Total Service and Interest Cost Components, Decrease | (40) | ||
Effect on Other Postretirement Obligation, Increase | 881 | ||
Effect on Other Postretirement Obligation, Decrease | $ (790) |
Pension and Other Postretirem81
Pension and Other Postretirement Benefits Pension and Other Postretirement Benefits - Allocation of Plan Assets (Details) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Equity Securities [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 32.00% | 34.00% |
Defined Benefit Plan, Target Plan Asset Allocations | 30.00% | |
Fixed Income Securities [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 65.00% | 63.00% |
Defined Benefit Plan, Target Plan Asset Allocations | 70.00% | |
Other Security Investments [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 3.00% | 3.00% |
Defined Benefit Plan, Target Plan Asset Allocations | 0.00% |
Pension and Other Postretirem82
Pension and Other Postretirement Benefits - Hierarchy of Fair Value of the Benefit Plan Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Benefit Plan Assets Classified Under Appropriate Level of Fair Value Hierarchy [Abstract] | ||
Defined Benefit Plans', Fair Value of Plan Assets | $ 827,337 | $ 884,264 |
Level 1 [Member] | ||
Benefit Plan Assets Classified Under Appropriate Level of Fair Value Hierarchy [Abstract] | ||
Defined Benefit Plans', Fair Value of Plan Assets | 98,360 | 104,683 |
Level 2 [Member] | ||
Benefit Plan Assets Classified Under Appropriate Level of Fair Value Hierarchy [Abstract] | ||
Defined Benefit Plans', Fair Value of Plan Assets | 728,977 | 779,581 |
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 | 391,275 | 409,167 |
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 | 391,275 | 409,167 |
Value Funds [Member] | ||
Benefit Plan Assets Classified Under Appropriate Level of Fair Value Hierarchy [Abstract] | ||
Defined Benefit Plans', Fair Value of Plan Assets | 102,466 | 117,479 |
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 | 102,466 | 117,479 |
Growth Funds [Member] | ||
Benefit Plan Assets Classified Under Appropriate Level of Fair Value Hierarchy [Abstract] | ||
Defined Benefit Plans', Fair Value of Plan Assets | 54,179 | 64,830 |
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 | 54,179 | 64,830 |
Balanced Funds [Member] | ||
Benefit Plan Assets Classified Under Appropriate Level of Fair Value Hierarchy [Abstract] | ||
Defined Benefit Plans', Fair Value of Plan Assets | 10,090 | 22,262 |
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 | 10,090 | 22,262 |
Common Stock [Member] | ||
Benefit Plan Assets Classified Under Appropriate Level of Fair Value Hierarchy [Abstract] | ||
Defined Benefit Plans', Fair Value of Plan Assets | 94,964 | 101,527 |
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 | 94,964 | 101,527 |
US Government Securities [Member] | ||
Benefit Plan Assets Classified Under Appropriate Level of Fair Value Hierarchy [Abstract] | ||
Defined Benefit Plans', Fair Value of Plan Assets | 68,628 | 66,709 |
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 | 68,628 | 66,709 |
Foreign Government Securities [Member] | ||
Benefit Plan Assets Classified Under Appropriate Level of Fair Value Hierarchy [Abstract] | ||
Defined Benefit Plans', Fair Value of Plan Assets | 44,474 | 41,202 |
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 | 44,474 | 41,202 |
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 | 32,540 | 36,469 |
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 | 32,540 | 36,469 |
Other [Member] | ||
Benefit Plan Assets Classified Under Appropriate Level of Fair Value Hierarchy [Abstract] | ||
Defined Benefit Plans', Fair Value of Plan Assets | 28,721 | 24,619 |
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 | 3,396 | 3,156 |
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 | $ 25,325 | $ 21,463 |
Pension and Other Postretirem83
Pension and Other Postretirement Benefits - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, (Increase) Decrease in Benefits Paid | $ (29,900) | ||
Defined Benefit Plan, Settlements, Benefit Obligation | 32,800 | ||
Defined Benefit Plan, Increase (Decrease) in Actual Return on Plans' Assets | $ (88,600) | ||
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 | $ 23,118 | $ 20,386 | $ 16,701 |
Pension plans contribution [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated Benefit Obligation for all Defined Benefit Pension Plans | 943,500 | 956,700 | |
Net Periodic Pension Cost | (10,751) | (9,047) | 4,862 |
Special termination benefit charge | 459 | 0 | 0 |
Curtailment loss | (358) | 0 | 0 |
Projected Benefit Payments for 2016 | 55,400 | ||
Projected Benefit Payments for 2017 | 49,300 | ||
Projected Benefit Payments for 2018 | 50,800 | ||
Projected Benefit Payments for 2019 | 53,000 | ||
Projected Benefit Payments for 2020 | 55,000 | ||
Projected Benefit Payments for 2021 through 2025 | 295,900 | ||
Accumulated Other Comprehensive Loss Expected to be Recognized in Net Periodic Pension Cost during 2015 related to Net Actuarial Losses | 7,300 | ||
Accumulated Other Comprehensive Loss Expected to be Recognized in Net Periodic Pension Cost during 2015 related to Transition Obligations | 100 | ||
Accumulated Other Comprehensive Income Expected to be Recognized in Net Periodic Pension Cost during 2015 related to Prior Service Credit | (400) | ||
Estimated Future Employer Contributions in 2015 | 16,800 | ||
Other postretirement benefit plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net Periodic Pension Cost | 1,191 | 1,267 | 1,316 |
Curtailment loss | 221 | $ 0 | $ 0 |
Projected Benefit Payments for 2016 | 2,200 | ||
Projected Benefit Payments for 2017 | 2,100 | ||
Projected Benefit Payments for 2018 | 2,000 | ||
Projected Benefit Payments for 2019 | 1,800 | ||
Projected Benefit Payments for 2020 | 1,700 | ||
Projected Benefit Payments for 2021 through 2025 | 7,300 | ||
Accumulated Other Comprehensive Loss Expected to be Recognized in Net Periodic Pension Cost during 2015 related to Net Actuarial Losses | 300 | ||
Estimated Future Employer Contributions in 2015 | $ 2,200 |
Accumulated Other Comprehensi84
Accumulated Other Comprehensive (Loss) Income - Components of and Changes in AOCL (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive (Loss) Income | $ (66,131) | $ (89,004) | $ (150,662) |
Net current period other comprehensive loss | (177,392) | 22,873 | 59,593 |
Other comprehensive loss before reclassifications | (177,450) | 18,702 | 48,537 |
Amounts reclassified from accumulated other comprehensive loss | 58 | 4,171 | 11,056 |
Stock Issued During Period, Value, Other | 2,065 | ||
Net current period other comprehensive loss | (180,737) | 23,238 | 59,044 |
Accumulated Other Comprehensive (Loss) Income | (243,523) | (66,131) | (89,004) |
Post-retirement Benefit Plans [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive (Loss) Income | (93,742) | (83,936) | (132,991) |
Net current period other comprehensive loss | (45,051) | (9,806) | 49,055 |
Other comprehensive loss before reclassifications | (47,982) | (11,990) | 39,376 |
Amounts reclassified from accumulated other comprehensive loss | 2,931 | 2,184 | 9,679 |
Accumulated Other Comprehensive (Loss) Income | (138,793) | (93,742) | (83,936) |
Currency Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive (Loss) Income | 38,811 | 7,413 | (4,424) |
Net current period other comprehensive loss | (136,120) | 31,398 | 9,772 |
Other comprehensive loss before reclassifications | (136,120) | 31,398 | 9,772 |
Stock Issued During Period, Value, Other | 2,065 | ||
Accumulated Other Comprehensive (Loss) Income | (97,309) | 38,811 | 7,413 |
Currency Translation Adjustment Relating to Noncontrolling Interest [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive (Loss) Income | 1,087 | 721 | 1,271 |
Other comprehensive loss before reclassifications | (3,345) | 366 | (550) |
Net current period other comprehensive loss | (3,345) | 366 | (550) |
Accumulated Other Comprehensive (Loss) Income | (2,258) | 1,087 | 721 |
Derivatives [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive (Loss) Income | (11,200) | (12,481) | (13,247) |
Net current period other comprehensive loss | 3,779 | 1,281 | 766 |
Other comprehensive loss before reclassifications | 6,652 | (706) | (611) |
Amounts reclassified from accumulated other comprehensive loss | (2,873) | 1,987 | 1,377 |
Accumulated Other Comprehensive (Loss) Income | (7,421) | (11,200) | (12,481) |
Noncontrolling Interests [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive (Loss) Income | 1,087 | 721 | 1,271 |
Other comprehensive loss before reclassifications | (3,345) | 366 | (550) |
Stock Issued During Period, Value, Other | 0 | 0 | 7,727 |
Net current period other comprehensive loss | (3,345) | 366 | (550) |
Accumulated Other Comprehensive (Loss) Income | $ (2,258) | $ 1,087 | $ 721 |
Accumulated Other Comprehensi85
Accumulated Other Comprehensive (Loss) Income - Components of and Changes in AOCL (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive (Loss) Income | $ (243,523) | $ (66,131) | $ (89,004) |
Other comprehensive loss before reclassifications | (177,450) | 18,702 | 48,537 |
Other comprehensive (loss) income, net of tax | (180,737) | 23,238 | 59,044 |
Amounts reclassified from accumulated other comprehensive loss | 58 | 4,171 | 11,056 |
Sale of subsidiary stock to noncontrolling interests | 2,065 | ||
Net current period other comprehensive loss | (177,392) | 22,873 | 59,593 |
Post-retirement Benefit Plans [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive (Loss) Income | (138,793) | (93,742) | (83,936) |
Other comprehensive loss before reclassifications | (47,982) | (11,990) | 39,376 |
Amounts reclassified from accumulated other comprehensive loss | 2,931 | 2,184 | 9,679 |
Net current period other comprehensive loss | (45,051) | (9,806) | 49,055 |
Currency Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive (Loss) Income | (97,309) | 38,811 | 7,413 |
Other comprehensive loss before reclassifications | (136,120) | 31,398 | 9,772 |
Sale of subsidiary stock to noncontrolling interests | 2,065 | ||
Net current period other comprehensive loss | (136,120) | 31,398 | 9,772 |
Derivatives [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive (Loss) Income | (7,421) | (11,200) | (12,481) |
Other comprehensive loss before reclassifications | 6,652 | (706) | (611) |
Amounts reclassified from accumulated other comprehensive loss | (2,873) | 1,987 | 1,377 |
Net current period other comprehensive loss | 3,779 | 1,281 | 766 |
Currency Translation Adjustment Relating to Noncontrolling Interest [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive (Loss) Income | (2,258) | 1,087 | 721 |
Other comprehensive loss before reclassifications | (3,345) | 366 | (550) |
Other comprehensive (loss) income, net of tax | (3,345) | 366 | (550) |
Noncontrolling Interests [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive (Loss) Income | (2,258) | 1,087 | 721 |
Other comprehensive loss before reclassifications | (3,345) | 366 | (550) |
Other comprehensive (loss) income, net of tax | (3,345) | 366 | (550) |
Sale of subsidiary stock to noncontrolling interests | $ 0 | $ 0 | $ 7,727 |
Accumulated Other Comprehensi86
Accumulated Other Comprehensive Loss - Reclassifications Out of AOCL (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Currency Exchange Contracts | $ 1,674 | $ (2,172) | $ (2,313) |
Recognition of Actuarial Losses | (3,821) | (2,692) | (15,141) |
Tax (expense) benefit | 16,654 | (66,611) | (59,693) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivatives [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total Before Tax | (4,679) | 3,205 | 2,235 |
Tax (expense) benefit | 1,806 | (1,218) | (858) |
Net of tax | (2,873) | 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 | 78 | 69 |
Amortization of Prior Service Credit | (420) | (345) | (306) |
Recognition of Actuarial Losses | 4,163 | 2,959 | 15,378 |
Total Before Tax | 3,821 | 2,692 | 15,141 |
Tax (expense) benefit | (890) | (508) | (5,462) |
Net of tax | 2,931 | 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 | 2,021 | 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 | $ (6,700) | $ 1,260 | $ 363 |
Accumulated Other Comprehensi87
Accumulated Other Comprehensive (Loss) Income Accumulated Other Comprehensive (Loss) Income - Income Tax Allocated to Each Component of Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Accumulated Other Comprehensive (Loss) IncomeAccumulated Other Comprehensive (Loss) Income - Income Tax Allocated to Each Component of Other Comprehensive Income [Abstract] | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ 10,834 | $ (1,139) | $ (992) |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | (4,200) | 400 | 400 |
Unrealized gain (loss) on derivatives designated and qualified as cash flow hedges | 6,652 | (706) | (611) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | (4,679) | 3,205 | 2,235 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | 1,800 | (1,200) | (900) |
Reclassification of unrealized (gain) loss on expired derivatives designated and qualified as cash flow hedges | (2,873) | 1,987 | 1,377 |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, before Tax | (76,029) | (15,900) | 64,340 |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Tax | 28,000 | 3,900 | (25,000) |
Unrecognized net pension and other postretirement benefit (loss) gain | (47,982) | (11,990) | 39,376 |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, before Tax | 3,821 | 2,692 | 15,141 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), Tax | (900) | (500) | (5,500) |
Reclassification of net pension and other postretirement benefit loss | 2,931 | 2,184 | 9,679 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss), before Reclassification and Tax | (147,172) | 33,493 | 10,414 |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | 7,700 | (1,700) | (1,200) |
Foreign currency translation adjustments | (139,465) | 31,763 | 9,223 |
Other Comprehensive Income (Loss), before Tax | (213,225) | 22,351 | 91,138 |
Other Comprehensive Income (Loss), Tax | 32,488 | 887 | (32,094) |
Other comprehensive (loss) income, net of tax | $ (180,737) | $ 23,238 | $ 59,044 |
Restructuring and Related Cha88
Restructuring and Related Charges and Asset Impairment Charges - Restructuring Reserve by Type of Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Restructuring Reserve [Abstract] | ||
Beginning Balance | $ 9,002 | $ 0 |
Expense | 42,063 | 17,789 |
Asset Write-Down | (5,869) | (3,408) |
Reclass of Special Termination Benefit Charges | (459) | 0 |
Translation | (603) | 56 |
Cash Expenditures | (23,346) | (5,435) |
Ending Balance | 20,788 | 9,002 |
Industrial [Member] | ||
Restructuring Reserve [Abstract] | ||
Beginning Balance | 6,326 | 0 |
Expense | 23,067 | 12,501 |
Asset Write-Down | (2,231) | (2,395) |
Reclass of Special Termination Benefit Charges | 0 | 0 |
Translation | (345) | 38 |
Cash Expenditures | (13,333) | (3,818) |
Ending Balance | 13,484 | 6,326 |
Industrial [Member] | Severance [Member] | ||
Restructuring Reserve [Abstract] | ||
Beginning Balance | 5,815 | 0 |
Expense | 20,713 | 9,536 |
Asset Write-Down | 0 | 0 |
Reclass of Special Termination Benefit Charges | 0 | 0 |
Translation | (328) | 11 |
Cash Expenditures | (12,744) | (3,732) |
Ending Balance | 13,456 | 5,815 |
Industrial [Member] | Facilities [Member] | ||
Restructuring Reserve [Abstract] | ||
Beginning Balance | 444 | 0 |
Expense | 2,277 | 2,829 |
Asset Write-Down | (2,231) | (2,395) |
Reclass of Special Termination Benefit Charges | 0 | 0 |
Translation | (15) | 14 |
Cash Expenditures | (475) | (4) |
Ending Balance | 0 | 444 |
Industrial [Member] | Other [Member] | ||
Restructuring Reserve [Abstract] | ||
Beginning Balance | 67 | 0 |
Expense | 77 | 136 |
Asset Write-Down | 0 | 0 |
Reclass of Special Termination Benefit Charges | 0 | 0 |
Translation | (2) | 13 |
Cash Expenditures | (114) | (82) |
Ending Balance | 28 | 67 |
Infrastructure [Member] | ||
Restructuring Reserve [Abstract] | ||
Beginning Balance | 2,676 | 0 |
Expense | 18,996 | 5,288 |
Asset Write-Down | (3,638) | (1,013) |
Reclass of Special Termination Benefit Charges | (459) | 0 |
Translation | (258) | 18 |
Cash Expenditures | (10,013) | (1,617) |
Ending Balance | 7,304 | 2,676 |
Infrastructure [Member] | Severance [Member] | ||
Restructuring Reserve [Abstract] | ||
Beginning Balance | 2,458 | 0 |
Expense | 14,027 | 4,034 |
Asset Write-Down | 0 | 0 |
Reclass of Special Termination Benefit Charges | (459) | 0 |
Translation | (223) | 4 |
Cash Expenditures | (8,630) | (1,580) |
Ending Balance | 7,173 | 2,458 |
Infrastructure [Member] | Facilities [Member] | ||
Restructuring Reserve [Abstract] | ||
Beginning Balance | 190 | 0 |
Expense | 4,969 | 1,197 |
Asset Write-Down | (3,638) | (1,013) |
Reclass of Special Termination Benefit Charges | 0 | 0 |
Translation | (32) | 8 |
Cash Expenditures | (1,358) | (2) |
Ending Balance | 131 | 190 |
Infrastructure [Member] | Other [Member] | ||
Restructuring Reserve [Abstract] | ||
Beginning Balance | 28 | 0 |
Expense | 0 | 57 |
Asset Write-Down | 0 | 0 |
Reclass of Special Termination Benefit Charges | 0 | 0 |
Translation | (3) | 6 |
Cash Expenditures | (25) | (35) |
Ending Balance | $ 0 | $ 28 |
Restructuring and Related Cha89
Restructuring and Related Charges and Asset Impairment Charges - Restructuring and Related Charges Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Restructuring and Related Costs and Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | $ 58,100 | $ 19,100 | $ 0 |
Restructuring Charges | 42,063 | 17,789 | |
Restructuring Charges Related to Inventory Disposals | 1,500 | 200 | |
Restructuring Related Charges Recorded in Cost of Goods Sold | 8,200 | 1,200 | |
Restructuring Related Charges Recorded in Operating Expenses | 7,800 | 100 | |
Industrial [Member] | |||
Restructuring and Related Costs and Reserve [Line Items] | |||
Restructuring Charges | 23,067 | 12,501 | |
Infrastructure [Member] | |||
Restructuring and Related Costs and Reserve [Line Items] | |||
Restructuring Charges | 18,996 | $ 5,288 | |
Phase 1 [Member] | |||
Restructuring and Related Costs and Reserve [Line Items] | |||
Restructuring and Related Cost, Cost Incurred to Date | 51,946 | ||
Phase 1 [Member] | Minimum [Member] | |||
Restructuring and Related Costs and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 55,000 | ||
Phase 1 [Member] | Maximum [Member] | |||
Restructuring and Related Costs and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | $ 60,000 | ||
Phase 1 [Member] | Industrial [Member] | |||
Restructuring and Related Costs and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost Percent | 50.00% | ||
Restructuring and Related Cost, Cost Incurred to Date | $ 29,704 | ||
Phase 1 [Member] | Infrastructure [Member] | |||
Restructuring and Related Costs and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost Percent | 50.00% | ||
Restructuring and Related Cost, Cost Incurred to Date | $ 20,045 | ||
Phase 1 [Member] | Corporate Segment [Member] | |||
Restructuring and Related Costs and Reserve [Line Items] | |||
Restructuring and Related Cost, Cost Incurred to Date | 2,197 | ||
Phase 2 [Member] | |||
Restructuring and Related Costs and Reserve [Line Items] | |||
Restructuring and Related Cost, Cost Incurred to Date | 23,649 | ||
Phase 2 [Member] | Minimum [Member] | |||
Restructuring and Related Costs and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 90,000 | ||
Phase 2 [Member] | Maximum [Member] | |||
Restructuring and Related Costs and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | $ 100,000 | ||
Phase 2 [Member] | Industrial [Member] | |||
Restructuring and Related Costs and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost Percent | 85.00% | ||
Restructuring and Related Cost, Cost Incurred to Date | $ 14,189 | ||
Phase 2 [Member] | Infrastructure [Member] | |||
Restructuring and Related Costs and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost Percent | 15.00% | ||
Restructuring and Related Cost, Cost Incurred to Date | $ 8,249 | ||
Phase 2 [Member] | Corporate Segment [Member] | |||
Restructuring and Related Costs and Reserve [Line Items] | |||
Restructuring and Related Cost, Cost Incurred to Date | 1,202 | ||
Phase 3 [Member] | |||
Restructuring and Related Costs and Reserve [Line Items] | |||
Restructuring and Related Cost, Cost Incurred to Date | 1,592 | ||
Phase 3 [Member] | Minimum [Member] | |||
Restructuring and Related Costs and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 40,000 | ||
Phase 3 [Member] | Maximum [Member] | |||
Restructuring and Related Costs and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | $ 45,000 | ||
Phase 3 [Member] | Industrial [Member] | |||
Restructuring and Related Costs and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost Percent | 50.00% | ||
Phase 3 [Member] | Infrastructure [Member] | |||
Restructuring and Related Costs and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost Percent | 50.00% |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2014 |
Fair Value [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 698 | $ 705.3 |
Contracts Translated to U S Dollars [Member] | ||
Fair Value [Line Items] | ||
Notional Amount of Foreign Exchange Contracts | 53.8 | 91.1 |
Estimated Amount Of Receivable On Settlement Of Foreign Exchange Contracts | 2.6 | 0.2 |
Foreign Exchange Contract [Member] | ||
Fair Value [Line Items] | ||
Notional Amount of Foreign Exchange Contracts | $ 53.8 | $ 91.1 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions Used in Black-Scholes Valuation for Grants (Details) - Stock Option [Member] | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | ||
Assumptions used in valuation of stock options | ||||
Risk-free interest rate | 1.50% | 1.30% | 0.60% | |
Expected life (years) | [1] | 4 years 6 months | 4 years 6 months | 4 years 6 months |
Expected volatility | [2] | 32.50% | 40.30% | 49.50% |
Expected dividend yield | 1.70% | 1.70% | 1.50% | |
[1] | Expected life is derived from historical experience. | |||
[2] | Expected volatility is based on the implied historical volatility of our stock. |
Stock-Based Compensation - Chan
Stock-Based Compensation - Changes in Stock Options (Details) - 12 months ended Jun. 30, 2015 - USD ($) $ / shares in Units, $ in Thousands | Total |
Changes in stock options | |
Options outstanding, Beginning of Period | 2,264,824 |
Options, Granted | 436,541 |
Options, Exercised | (416,534) |
Options, Lapsed and Forfeited | (190,794) |
Options outstanding, End of Period | 2,094,037 |
Options vested and expected to vest, June 30, 2014 | 2,062,054 |
Options exercisable, June 30, 2014 | 1,615,372 |
Weighted Average Exercise Price, Options outstanding, Beginning of Period | $ 33.95 |
Weighted Average Exercise Price, Granted | 40.81 |
Weighted Average Exercise Price, Exercised | 27.18 |
Weighted Average Exercise Price, Lapsed and Forfeited | 41.08 |
Weighted Average Exercise Price, Options outstanding, End of Period | 36.08 |
Weighted Average Exercise Price, Option vested and expected to vest, June 30, 2014 | 36.02 |
Weighted Average Exercise Price, Options exercisable, June 30, 2014 | $ 34.65 |
Weighted Average Remaining Life, Options outstanding, June 30, 2014 | 4 years 4 months 7 days |
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageRemainingLife | 4 years 4 months 24 days |
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageRemainingLife | 3 years 2 months 11 days |
Aggregate Intrinsic value, Options outstanding, June 30, 2014 | $ 4,720 |
Aggregate Intrinsic Value, Options vested and expected to vest, June 30, 2014 | 4,720 |
Aggregate Intrinsic Value, Options exercisable, June 30, 2014 | $ 4,720 |
Stock-Based Compensation - Ch93
Stock-Based Compensation - Changes in Restricted Stock Units (Details) - 12 months ended Jun. 30, 2015 - $ / shares | Total |
Restricted Stock Units - Performance Vesting [Member] | |
Changes in Restricted Stock Units | |
Unvested Performance Vesting and Time Vesting Restricted Stock Units, Beginning of Period, Shares | 197,356 |
Granted, Shares | 88,536 |
Vested, Shares | (28,022) |
Performance Metric Not Achieved | (65,373) |
Forfeited, Shares | (91,252) |
Unvested Performance Vesting and Time Vesting Restricted Stock Units End of Period | 101,245 |
Weighted Average Fair Value, Unvested Restricted Stock Units, Beginning of Period | $ 40.92 |
Weighted Average Fair Value, Granted | 43.16 |
Weighted Average Fair Value, Vested | 38.95 |
Performance Metric Not Achieved, Weighted Average Exercise Price | 43.16 |
Weighted Average Fair Value, Forfeited | 42.96 |
Weighted Average Fair Value, Unvested Restricted Stock Units, End of Period | $ 43 |
Restricted Stock Units - Time Vesting [Member] | |
Changes in Restricted Stock Units | |
Unvested Performance Vesting and Time Vesting Restricted Stock Units, Beginning of Period, Shares | 743,326 |
Granted, Shares | 455,296 |
Vested, Shares | (385,321) |
Forfeited, Shares | (124,033) |
Unvested Performance Vesting and Time Vesting Restricted Stock Units End of Period | 689,268 |
Weighted Average Fair Value, Unvested Restricted Stock Units, Beginning of Period | $ 39.20 |
Weighted Average Fair Value, Granted | 42 |
Weighted Average Fair Value, Vested | 37.42 |
Weighted Average Fair Value, Forfeited | 42.20 |
Weighted Average Fair Value, Unvested Restricted Stock Units, End of Period | $ 41.53 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
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 | $ 3.2 | $ 4.3 | $ 6.2 |
Unrecognized compensation cost | $ 2.1 | ||
Unrecognized compensation costs, weighted average period | 2 years 7 months | ||
Weighted average fair value of options granted | $ 10.16 | $ 13.76 | $ 13.53 |
Fair value of options vested | $ 7.6 | $ 5.1 | $ 5.2 |
Tax benefits resulting from stock-based compensation deductions in excess of amounts reported for financial reporting purposes | 1.3 | 6 | 4.2 |
Cash received from the exercise of capital stock option | 11.7 | 20.6 | 12.5 |
Tax benefit from the exercise of capital stock option | 2 | 4.6 | 2.8 |
Total Intrinsic value of options exercised | 5.3 | 14.8 | 8.3 |
Restricted Stock Units - Time Vesting Performance Vesting [Member] | |||
Stock-Based Compensation (Textual) [Abstract] | |||
Compensation expense related to stock option | 13.5 | $ 13.1 | $ 15.2 |
Unrecognized compensation cost | $ 12.5 | ||
Unrecognized compensation costs, weighted average period | 2 years 6 months 10 days |
Environmental Matters (Details)
Environmental Matters (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2014 |
Environmental Remediation Obligations [Abstract] | ||
Accrual for Potential Environmental Loss Contingencies | $ 12.6 | $ 11 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Lease Payments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Lease Expense Under Rental | $ 29.4 | $ 31.9 | $ 30.8 |
Future Minimum Operating Lease Payment For Year 2016 | 24.8 | ||
Future Minimum Operating Lease Payment For Year 2017 | 18.3 | ||
Future Minimum Operating Lease Payment For Year 2018 | 11.7 | ||
Future Minimum Operating Lease Payment For Year 2019 | 8.9 | ||
Future Minimum Operating Lease Payment For Year 2020 | 9.1 | ||
Future Minimum Operating Lease Payment Due Thereafter | $ 38.2 |
Segment Data (Details)
Segment Data (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Segment Reporting Information [Line Items] | |||
Total External Sales | $ 2,647,195 | $ 2,837,190 | $ 2,589,373 |
Total operating (loss) income | (357,823) | 263,432 | 296,394 |
Interest expense | 31,466 | 32,451 | 27,472 |
Other (income) expense, net | (1,674) | 2,172 | 2,313 |
(Loss) income before income taxes | (387,615) | 228,809 | 266,609 |
Depreciation and Amortization | 131,664 | 130,222 | 113,104 |
Equity Income | 6 | 84 | 42 |
Assets | 2,849,529 | 3,868,086 | 3,301,039 |
Capital Expenditures | 100,939 | 117,376 | 82,835 |
Investments in Affiliated Companies | 361 | 495 | 671 |
Industrial [Member] | |||
Segment Reporting Information [Line Items] | |||
Total External Sales | 1,461,744 | 1,524,075 | 1,386,690 |
Total operating (loss) income | 160,894 | 177,040 | 192,828 |
Depreciation and Amortization | 64,188 | 65,820 | 60,458 |
Equity Income | 0 | 34 | 0 |
Assets | 1,259,270 | 1,449,688 | 1,190,026 |
Capital Expenditures | 64,497 | 71,628 | 47,501 |
Investments in Affiliated Companies | 0 | 0 | 234 |
Infrastructure [Member] | |||
Segment Reporting Information [Line Items] | |||
Total External Sales | 1,185,451 | 1,313,115 | 1,202,683 |
Total operating (loss) income | (509,381) | 94,940 | 111,453 |
Depreciation and Amortization | 67,413 | 64,339 | 52,583 |
Equity Income | 6 | 50 | 42 |
Assets | 1,279,608 | 1,986,724 | 1,522,470 |
Capital Expenditures | 36,442 | 45,748 | 35,334 |
Investments in Affiliated Companies | 361 | 495 | 437 |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Total operating (loss) income | (9,336) | (8,548) | (7,887) |
Depreciation and Amortization | 63 | 63 | 63 |
Assets | $ 310,651 | $ 431,674 | $ 588,543 |
Segment Data - Geographic Sales
Segment Data - Geographic Sales Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
External Sales [Abstract] | |||
Total External Sales | $ 2,647,195 | $ 2,837,190 | $ 2,589,373 |
Total Assets [Abstract] | |||
Assets | 2,849,529 | 3,868,086 | 3,301,039 |
UNITED STATES | |||
External Sales [Abstract] | |||
Total External Sales | 1,176,622 | 1,198,541 | 1,052,466 |
Total Assets [Abstract] | |||
Assets | 1,338,594 | 1,842,453 | 1,228,923 |
GERMANY | |||
External Sales [Abstract] | |||
Total External Sales | 442,009 | 511,209 | 454,807 |
Total Assets [Abstract] | |||
Assets | 394,491 | 538,661 | 646,983 |
CHINA | |||
External Sales [Abstract] | |||
Total External Sales | 246,953 | 248,212 | 239,418 |
Total Assets [Abstract] | |||
Assets | 274,774 | 341,949 | 311,053 |
ITALY | |||
External Sales [Abstract] | |||
Total External Sales | 85,530 | 107,511 | 94,183 |
Total Assets [Abstract] | |||
Assets | 94,978 | 178,141 | 172,764 |
UNITED KINGDOM | |||
External Sales [Abstract] | |||
Total External Sales | 70,600 | 105,041 | 92,614 |
Total Assets [Abstract] | |||
Assets | 71,342 | 79,657 | 107,738 |
INDIA | |||
External Sales [Abstract] | |||
Total External Sales | 85,193 | 81,455 | 83,401 |
Total Assets [Abstract] | |||
Assets | 97,463 | 94,897 | 94,914 |
CANADA | |||
External Sales [Abstract] | |||
Total External Sales | 73,912 | 78,163 | 93,257 |
Total Assets [Abstract] | |||
Assets | 60,492 | 133,481 | 138,959 |
Other | |||
External Sales [Abstract] | |||
Total External Sales | 466,376 | 507,058 | 479,227 |
Total Assets [Abstract] | |||
Assets | 323,256 | 393,919 | 392,705 |
SWITZERLAND | |||
Total Assets [Abstract] | |||
Assets | $ 194,139 | $ 264,928 | $ 207,000 |
Segment Data Segment Data - Sal
Segment Data Segment Data - Sales by End Market (Details) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Revenue from External Customer [Line Items] | |||
Sales by End Market | 100.00% | 100.00% | 100.00% |
General Engineering [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales by End Market | 36.00% | 31.00% | 29.00% |
Transportation [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales by End Market | 21.00% | 21.00% | 21.00% |
Energy [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales by End Market | 19.00% | 23.00% | 23.00% |
Earthworks [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales by End Market | 17.00% | 19.00% | 20.00% |
Aerospace and Defense [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales by End Market | 7.00% | 6.00% | 7.00% |
Segment Data - Narrative (Detai
Segment Data - Narrative (Details) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015USD ($)Segment | Jun. 30, 2014USD ($) | Jun. 30, 2013USD ($) | |
Segment Data [Abstract] | |||
Operations in Number of Global Reporting Segments | Segment | 2 | ||
Sales To a Single Customer Did Not Aggretage More Than | 0.04 | ||
Export Sales from U.S. Operations to Unaffiliated Customers | $ 71 | $ 82.2 | $ 102.1 |
Selected Quarterly Financial101
Selected Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||
Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | ||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||
Sales | $ 638,970 | $ 675,631 | $ 694,941 | $ 772,204 | $ 755,242 | $ 689,936 | $ 619,808 | $ 2,647,195 | $ 2,837,190 | $ 2,589,373 | |||||||
Gross profit | 199,470 | 199,458 | 218,099 | 252,840 | 238,955 | 206,971 | 198,237 | 805,993 | 897,003 | 845,004 | |||||||
Net income (loss) attributable to Kennametal | $ (46,229) | $ (388,302) | $ 39,489 | $ 45,455 | $ 50,865 | $ 24,209 | $ 37,837 | $ (373,896) | $ 158,366 | $ 203,265 | |||||||
Basic earning (loss) per share attributable to Kennametal | $ (0.58) | [1] | $ (4.89) | [1] | $ 0.50 | [1] | $ 0.58 | [1] | $ 0.65 | [1] | $ 0.31 | [1] | $ 0.48 | [1] | $ (4.71) | $ 2.01 | $ 2.56 |
Diluted earning (loss) per share attributable to Kennametal | $ (0.58) | [1] | $ (4.89) | [1] | $ 0.49 | [1] | $ 0.57 | [1] | $ 0.64 | [1] | $ 0.30 | [1] | $ 0.48 | [1] | $ (4.71) | $ 1.99 | $ 2.52 |
[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 quarters’ earnings per share attributable to Kennametal does not always equal the full-year earnings per share attributable to Kennametal. |
Schedule II Valuation and Qu102
Schedule II Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |||||
Valuation and Qualifying Accounts and Reserves (Details Textual) [Abstract] | |||||||
Valuation Allowances and Reserves, Goodwill Related to Businesses Acquired | $ (2,000) | ||||||
Valuation Allowances And Reserves Currency Translation Adjustment | (300) | ||||||
Allowance for Doubtful Accounts [Member] | |||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||||
Balance at Beginning of Year | $ 14,027 | $ 11,949 | 12,530 | ||||
Charges to Costs and Expenses | 3,602 | 2,880 | 1,532 | ||||
Charged to Other Comprehensive (Loss) Income | 0 | 0 | 0 | ||||
Recoveries | 40 | 207 | 193 | ||||
Other Adjustments | [1] | (1,095) | 111 | 55 | |||
Deductions from Reserves | [2] | (3,014) | (1,120) | (2,361) | |||
Balance at End of Year | 13,560 | 14,027 | 11,949 | ||||
Reserve for Excess and Obsolete Inventory [Member] | |||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||||
Balance at Beginning of Year | 52,737 | 52,739 | 55,042 | ||||
Charges to Costs and Expenses | 8,666 | 9,252 | 6,688 | ||||
Charged to Other Comprehensive (Loss) Income | 0 | 0 | 0 | ||||
Recoveries | 0 | 0 | 0 | ||||
Other Adjustments | [1] | (5,613) | 1,317 | 508 | |||
Deductions from Reserves | [3] | (10,770) | (10,571) | (9,499) | |||
Balance at End of Year | 45,020 | 52,737 | 52,739 | ||||
Deferred Tax Asset Valuation Allowance [Member] | |||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||||
Balance at Beginning of Year | 17,860 | 15,569 | 19,502 | ||||
Charges to Costs and Expenses | 1,846 | 3,001 | (148) | ||||
Charged to Other Comprehensive (Loss) Income | 0 | 24 | 0 | ||||
Recoveries | 0 | 0 | 0 | ||||
Other Adjustments | (2,935) | [1] | 505 | [4] | (2,288) | [5] | |
Deductions from Reserves | 0 | [6] | (1,239) | [6] | (1,497) | ||
Balance at End of Year | $ 16,771 | $ 17,860 | $ 15,569 | ||||
[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] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjJiMTYyZWEwOWUxZDQ2M2JiMzE3ZmRjZGYwOGQ1Yjk3fFRleHRTZWxlY3Rpb246MzIyQTZBMEFBQ0NDNjRDQzYzMDJFMzNCQzlDREI2N0EM} | ||||||
[5] | Represents $2.0 million charged to goodwill relating to the business acquisition and $0.3 million relating to currency translation adjustment. | ||||||
[6] | Represents a forfeited net operating loss deduction. |
Uncategorized Items - kmt-20150
Label | Element | Value |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | us-gaap_ScheduleOfFutureMinimumLeasePaymentsForCapitalLeasesTableTextBlock | Future minimum lease payments under capital leases for the next five years and thereafter in total are as follows: (in thousands) 2016 $ 76 2017 1,625 2018 199 2019 — 2020 — After 2021 — Total future minimum lease payments 1,900 Less amount representing interest (129 ) Amount recognized as capital lease obligations $ 1,771 |
Schedule of Debt [Table Text Block] | us-gaap_ScheduleOfDebtTableTextBlock | Long-term debt and capital lease obligations consisted of the following at June 30: (in thousands) 2015 2014 2.65% Senior Unsecured Notes due 2019 net of discount of $0.3 million for 2015 and $0.4 million for 2014 $ 399,671 $ 399,595 3.875% Senior Unsecured Notes due 2022 net of discount of $0.2 million for 2015 and $0.3 million for 2014 299,757 299,720 Credit Agreement: Euro-denominated borrowings, 0.9% to 1.1% in 2015 and 1.1% to 1.3% in 2014, due 2018 42,609 200,112 U.S. Dollar-denominated borrowings, 1.2% in 2015 and 2014, due 2018 200 87,000 Capital leases with terms expiring through 2018 at 1.6% to 5.4% in 2015 and 2014 1,771 2,886 Other 6 15 Total debt and capital leases 744,014 989,328 Less current maturities: Long-term debt (8,049 ) (7,512 ) Capital leases (74 ) (135 ) Other (6 ) (15 ) Total current maturities (8,129 ) (7,662 ) Long-term debt and capital leases, less current maturities $ 735,885 $ 981,666 |
Accumulated Defined Benefit Plans Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax | $ 0 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax | $ 0 |