Kennametal (KMT) 10-Q 7 Nov 16 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2016	Oct. 31, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	KENNAMETAL INC.
Entity Central Index Key	55,242
Current Fiscal Year End Date	--06-30
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		79,933,935

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Sales	$ 477,140	$ 555,354
Cost of goods sold	333,610	404,130
Gross profit	143,530	151,224
Operating expense	119,865	129,243
Restructuring charges (Note 7)	28,605	9,120
Amortization of intangibles	4,271	6,247
Operating (loss) income	(9,211)	6,614
Interest expense	6,993	6,979
Other expense, net	118	1,087
Loss before income taxes	(16,322)	(1,452)
Provision for income taxes	4,879	4,252
Net loss	(21,201)	(5,704)
Less: Net income attributable to noncontrolling interests	455	522
Net loss attributable to Kennametal	$ (21,656)	$ (6,226)
PER SHARE DATA ATTRIBUTABLE TO KENNAMETAL SHAREHOLDERS
Basic loss per share	$ (0.27)	$ (0.08)
Diluted loss per share	(0.27)	(0.08)
Dividends per share	$ 0.20	$ 0.20
Basic weighted average shares outstanding	80,054	79,728
Diluted weighted average shares outstanding	80,054	79,728

CONDENSED CONSOLIDATED STATEME3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
Net loss	$ (21,201)	$ (5,704)
Other comprehensive loss, net of tax [Abstract]
Unrealized (loss) gain on derivatives designated and qualified as cash flow hedges	(126)	525
Reclassification of unrealized loss (gain) on expired derivatives designated and qualified as cash flow hedges	387	(1,766)
Unrecognized net pension and other postretirement benefit gain	630	999
Reclassification of net pension and other postretirement benefit loss	1,834	1,219
Foreign currency translation adjustments	1,164	(18,849)
Total other comprehensive income (loss), net of tax	3,889	(17,872)
Total comprehensive loss	(17,312)	(23,576)
Less: comprehensive income (loss) attributable to noncontrolling interests	870	(17)
Comprehensive loss attributable to Kennametal Shareholders	$ (18,182)	$ (23,559)

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Sep. 30, 2016	Jun. 30, 2016
Current assets:
Cash and cash equivalents	$ 119,411	$ 161,579
Accounts receivable, less allowance for doubtful accounts of $12,743 and $12,724, respectively	348,470	370,916
Inventories (Note 10)	459,296	458,830
Deferred income taxes (Note 3)	0	26,713
Other current assets	64,660	57,303
Total current assets	991,837	1,075,341
Property, plant and equipment:
Land and buildings	356,765	353,789
Machinery and equipment	1,533,220	1,511,462
Less accumulated depreciation	(1,154,537)	(1,134,611)
Property, plant and equipment, net	735,448	730,640
Other assets:
Investments in affiliated companies	2	2
Goodwill (Note 17)	298,718	298,487
Other intangible assets, less accumulated amortization of $117,186 and $114,093, respectively (Note 17)	202,871	207,208
Deferred income taxes (Note 3)	35,862	14,459
Other	42,695	36,646
Total other assets	580,148	556,802
Total assets	2,307,433	2,362,783
Current liabilities:
Current maturities of long-term debt and capital leases	374	732
Notes payable to banks	1,007	1,163
Accounts payable	176,004	182,039
Accrued income taxes	17,504	16,602
Accrued expenses	61,237	74,470
Other current liabilities	146,448	152,269
Total current liabilities	402,574	427,275
Long-term debt and capital leases, less current maturities (Notes 3 and 11)	694,027	693,548
Deferred income taxes	13,280	17,126
Accrued pension and postretirement benefits	200,998	201,473
Accrued income taxes	2,342	3,100
Other liabilities	24,804	24,460
Total liabilities	1,338,025	1,366,982
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; 79,927 and 79,694 shares issued, respectively	99,908	99,618
Additional paid-in capital	443,226	436,617
Retained earnings	742,961	780,597
Accumulated other comprehensive loss	(349,035)	(352,509)
Total Kennametal Shareholders' Equity	937,060	964,323
Noncontrolling interests	32,348	31,478
Total equity	969,408	995,801
Total liabilities and equity	$ 2,307,433	$ 2,362,783

CONDENSED CONSOLIDATED BALANCE5

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Sep. 30, 2016	Jun. 30, 2016
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 12,743	$ 12,724
Accumulated amortization on other intangible assets	$ 117,186	$ 114,093
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	79,927	79,694

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
OPERATING ACTIVITIES
Net (loss) income	$ (21,201)	$ (5,704)
Adjustments for non-cash items:
Depreciation	23,167	25,312
Amortization	4,271	6,247
Stock-based compensation expense	9,088	7,016
Restructuring charges (Notes 7)	(77)	3,049
Deferred income tax provision	456	14,381
Other	(1,312)	7,141
Changes in certain assets and liabilities:
Accounts receivable	23,111	35,481
Inventories	838	20,288
Accounts Payable and Accrued Liabilities	(3,836)	(27,813)
Accrued income taxes	(521)	(28,597)
Accrued pension and postretirement benefits	(5,644)	(11,416)
Other	(6,480)	(6,678)
Net cash flow provided by operating activities	21,860	38,707
INVESTING ACTIVITIES
Purchases of property, plant and equipment	(42,264)	(37,217)
Disposals of property, plant and equipment	1,138	1,933
Other	159	(72)
Net cash flow used for investing activities	(40,967)	(35,356)
FINANCING ACTIVITIES
Net (decrease) increase in notes payable	(128)	386
Net increase in short-term revolving and other lines of credit	0	9,600
Term debt borrowings	0	16,618
Term debt repayments	(244)	(27,337)
Purchase of capital stock	(63)	(80)
Dividend reinvestment and the effect of employee benefit and stock plans	(433)	401
Cash dividends paid to shareholders	(15,980)	(15,915)
Other	(6,576)	4,075
Net cash flow used for financing activities	(23,424)	(12,252)
Effect of exchange rate changes on cash and cash equivalents	363	606
CASH AND CASH EQUIVALENTS
Net decrease in cash and cash equivalents	(42,168)	(8,295)
Cash and cash equivalents, beginning of period	161,579	105,494
Cash and cash equivalents, end of period	$ 119,411	$ 97,199

Organization

Organization	3 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION	ORGANIZATION Kennametal Inc. was incorporated in Pennsylvania in 1943. Kennametal Inc. and its subsidiaries (collectively, Kennametal or the Company) are a leading global manufacturer and supplier of tooling, engineered components and advanced materials consumed in production processes. We believe that our reputation for manufacturing excellence, as well as our technological expertise and innovation we deliver in our products and services, helps us to achieve a leading position in our primary markets. End users of our products include metalworking and machinery manufacturers and suppliers across a diverse array of industries, including the aerospace, defense, transportation, machine tool, light machinery and heavy machinery, as well as producers and suppliers in a number of equipment-intensive industries such as coal mining, road construction and quarrying, as well as oil and gas exploration, refining, production and supply. Our end users' applications range from airframes to mining operations, engines to oil wells and turbochargers to processing. In order to take advantage of the growth opportunities of our WIDIA brand, we implemented a new operating structure. A key attribute of the new structure is the establishment of the WIDIA operating segment. In order to better leverage the opportunities that lie in this business, in addition to being more agile and competitive in the marketplace, we are placing higher levels of focus, determination and leadership in the business. The Industrial and WIDIA segments in 2017 were formed from the 2016 Industrial segment. We now have three global reportable operating segments: Industrial, WIDIA, and Infrastructure.

Basis of Presentation

Basis of Presentation	3 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION The condensed consolidated financial statements, which include our accounts and those of our majority-owned subsidiaries, should be read in conjunction with our 2016 Annual Report on Form 10-K. The condensed consolidated balance sheet as of June 30, 2016 was derived from the audited balance sheet included in our 2016 Annual Report on Form 10-K. These interim statements are unaudited; however, we believe that all adjustments necessary for a fair statement of the results of the interim periods were made and all adjustments are normal recurring adjustments. The results for the three months ended September 30, 2016 and 2015 are not necessarily indicative of the results to be expected for a full fiscal year. Unless otherwise specified, any reference to a “year” is to a fiscal year ended June 30. For example, a reference to 2017 is to the fiscal year ending June 30, 2017 . When used in this Form 10-Q, unless the context requires otherwise, the terms “we,” “our” and “us” refer to Kennametal Inc. and its subsidiaries.

New Accounting Standards

New Accounting Standards	3 Months Ended
	Sep. 30, 2016
Accounting Changes and Error Corrections [Abstract]
NEW ACCOUNTING STANDARDS	NEW ACCOUNTING STANDARDS Adopted In November 2015, the Financial Accounting Standards Board (FASB) issued guidance on balance sheet classification of deferred taxes. The amendments in this guidance require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position, in comparison to the previous practice of separating deferred income tax liabilities and assets into current and noncurrent amounts on the balance sheet. We adopted this guidance July 1, 2016 on a prospective basis. Therefore, prior period balance sheets were not retrospectively adjusted. Current deferred tax assets of $26.7 million and current deferred tax liabilities of $0.6 million are reported in the June 30, 2016 balance sheet. In April 2015, the FASB issued 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 guidance was effective for Kennametal beginning July 1, 2016 and was retrospectively applied to all periods presented. Debt issuance costs of $5.7 million and $6.0 million are reported as direct reductions of the carrying amounts of debt liabilities in the balance sheet as of September 30, and June 30, 2016 , respectively. In April 2015, the FASB issued guidance on accounting for fees paid in a cloud computing arrangement. The amendments in this update provide guidance to customers about treatment of costs as either capitalized and amortized as an intangible asset or expensed as incurred as a service contract. The amendments provide clarification that costs in arrangements that include software license should be capitalized and amortized, and costs in arrangements that do not include a software license should be expensed as incurred. This standard was effective for Kennametal beginning July 1, 2016 and was applied prospectively. The adoption of this guidance did not have a material impact on our condensed consolidated financial position, results of operations and cash flows. Issued In August 2016, the FASB issued guidance on classification of certain cash receipts and cash payments in the statement of cash flow. The guidance addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. This guidance is effective for Kennametal beginning July 1, 2018. We are in the process of assessing the impact the adoption of this guidance will have on our condensed consolidated financial statements.

Supplemental Cash Flow Disclosu

Supplemental Cash Flow Disclosures	3 Months Ended
	Sep. 30, 2016
Supplemental Cash Flow Elements [Abstract]
SUPPLEMENTAL CASH FLOW DISCLOSURES	SUPPLEMENTAL CASH FLOW DISCLOSURES Three Months Ended September 30, (in thousands) 2016 2015 Cash paid during the period for: Interest $ 6,935 $ 6,832 Income taxes 4,943 19,838 Supplemental disclosure of non-cash information: Changes in accounts payable related to purchases of property, plant and equipment 15,404 16,400

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Sep. 30, 2016
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 September 30, 2016 , 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) $ — $ 394 $ — $ 394 Total assets at fair value $ — $ 394 $ — $ 394 Liabilities: Derivatives (1) $ — $ 518 $ — $ 518 Total liabilities at fair value $ — $ 518 $ — $ 518 As of June 30, 2016 , 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) $ — $ 334 $ — $ 334 Total assets at fair value $ — $ 334 $ — $ 334 Liabilities: Derivatives (1) $ — $ 763 $ — $ 763 Contingent consideration — — 6,600 6,600 Total liabilities at fair value $ — $ 763 $ 6,600 $ 7,363 (1) Currency derivatives are valued based on observable market spot and forward rates and are classified within Level 2 of the fair value hierarchy. There have been no changes in classification and transfers between levels in the fair value hierarchy in the current period. The fair value of contingent consideration payable that was classified as Level 3 at June 30, 2016 related to our probability assessments of expected future milestone targets, primarily associated with product delivery, related to a previous acquisition. During the the three months ended September 30, 2016 , the Company paid the remaining $6.6 million in conjunction with achieved milestone targets. The contingent consideration was recorded in other current liabilities in our condensed consolidated balance sheet at June 30, 2016. No other changes in the expected outcome have occurred during the three months ended September 30, 2016 .

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities	3 Months Ended
	Sep. 30, 2016
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. We do not enter into derivative transactions for speculative purposes and, therefore, hold no derivative instruments for trading purposes. We account for derivative instruments as a hedge of the related asset, liability, firm commitment or anticipated transaction, when the derivative is specifically designated and qualifies as a hedge of such items. Our objective in managing foreign exchange exposures with derivative instruments is to reduce volatility in cash flow. We measure hedge effectiveness by assessing the changes in the fair value or expected future cash flows of the hedged item. The ineffective portions are recorded in other expense, net. The fair value of derivatives designated and not designated as hedging instruments in the condensed consolidated balance sheet are as follows: (in thousands) September 30, June 30, Derivatives designated as hedging instruments Other current assets - range forward contracts $ 239 $ 323 Other current liabilities - range forward contracts (5 ) — Other assets - range forward contracts 35 — Total derivatives designated as hedging instruments 269 323 Derivatives not designated as hedging instruments Other current assets - currency forward contracts 120 11 Other current liabilities - currency forward contracts (513 ) (763 ) Total derivatives not designated as hedging instruments (393 ) (752 ) Total derivatives $ (124 ) $ (429 ) 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 condensed consolidated balance sheet, with the offset to other expense, net. Gains related to derivatives not designated as hedging instruments have been recognized as follows: Three Months Ended September 30, (in thousands) 2016 2015 Other expense, net - currency forward contracts $ (318 ) $ (17 ) CASH FLOW HEDGES 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 and are recognized as a component of other 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 September 30, 2016 and June 30, 2016 , was $71.5 million and $53.3 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 September 30, 2016 , we expect to recognize into earnings in the next 12 months an immaterial amount of income on outstanding derivatives. The following represents gains and losses related to cash flow hedges: Three Months Ended September 30, (in thousands) 2016 2015 (Losses) gains recognized in other comprehensive loss, net $ (125 ) $ 516 Losses (gains) reclassified from accumulated other comprehensive loss into other expense, net $ 386 $ (1,458 ) 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 three months ended September 30, 2016 and 2015 .

Restructuring and Related Charg

Restructuring and Related Charges	3 Months Ended
	Sep. 30, 2016
Restructuring Charges [Abstract]
RESTRUCTURING AND RELATED CHARGES	RESTRUCTURING AND RELATED CHARGES We are implementing restructuring actions to streamline the Company's cost structure. These initiatives are expected to improve the alignment of our cost structure with the current operating environment through headcount reductions; rationalization and consolidation of certain manufacturing facilities; enhancement of operational efficiencies through an enterprise-wide cost reduction program; and other employment and cost reduction programs. These restructuring actions are expected to be completed by December of fiscal 2019 and are anticipated to be mostly cash expenditures. The total pre-tax charges for these programs are expected to be in the range of $155 million to $175 million , which is expected to be approximately 60 percent Industrial, 5 percent WIDIA, 30 percent Infrastructure and 5 percent Corporate. Total restructuring and related charges since inception of $102.8 million have been recorded for these programs through September 30, 2016 : $54.3 million in Industrial, $33.0 million in Infrastructure, $8.6 million in WIDIA and $6.9 million in Corporate. We have recorded restructuring and related charges of $31.7 million and $15.1 million for the three months ended September 30, 2016 and 2015 , respectively. Of these amounts, restructuring charges totaled $28.6 million and $9.1 million , respectively. During the three months ended September 30, 2016 , an immaterial amount of restructuring charges was related to inventory disposals and were recorded in cost of goods sold. Restructuring-related charges of $2.0 million and $1.6 million were recorded in cost of goods sold and $1.1 million and $4.4 million in operating expense for the three months ended September 30, 2016 and 2015 , respectively. The restructuring accrual is recorded in other current liabilities in our condensed consolidated balance sheet and the amount attributable to each segment is as follows: (in thousands) June 30, 2016 Expense Asset Write-Down Translation Cash Expenditures September 30, 2016 Industrial Severance $ 8,180 $ 16,994 $ — $ 36 $ (10,904 ) $ 14,306 Facilities — 105 (105 ) — — — Other 809 (78 ) — (3 ) (355 ) 373 Total Industrial $ 8,989 $ 17,021 $ (105 ) $ 33 $ (11,259 ) $ 14,679 WIDIA Severance $ 909 $ 2,880 $ — $ 6 $ (1,848 ) $ 1,947 Facilities — 9 (9 ) — — — Other 90 (13 ) — — (60 ) 17 Total WIDIA 999 2,876 (9 ) 6 (1,908 ) 1,964 Infrastructure Severance $ 5,301 $ 8,929 $ — $ 19 $ (5,729 ) $ 8,520 Facilities 33 (191 ) 191 — — 33 Other 381 (41 ) — (1 ) (187 ) 152 Total Infrastructure $ 5,715 $ 8,697 $ 191 $ 18 $ (5,916 ) $ 8,705 Total $ 15,703 $ 28,594 $ 77 $ 57 $ (19,083 ) $ 25,348

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION Stock Options There were no grants made during the three months ended September 30, 2016 . The assumptions used in our Black-Scholes valuation related to grants made during the three months ended September 30, 2015 were as follows: Risk-free interest rate 1.4 % Expected life (years) (2) 4.5 Expected volatility (3) 31.0 % Expected dividend yield 2.0 % (2) Expected life is derived from historical experience. (3) Expected volatility is based on the implied historical volatility of our stock. Changes in our stock options for the three months ended September 30, 2016 were as follows: Options Weighted Average Exercise Price Weighted Average Remaining Life (years) Aggregate Intrinsic value (in thousands) Options outstanding, June 30, 2016 2,547,809 $ 33.72 Granted — — Exercised (8,359 ) 22.83 Lapsed or forfeited (90,230 ) 28.36 Options outstanding, September 30, 2016 2,449,220 $ 33.95 4.6 $ 3,431 Options vested and expected to vest, September 30, 2016 2,413,580 $ 34.02 4.6 $ 3,348 Options exercisable, September 30, 2016 1,826,158 $ 35.84 3.2 $ 1,245 During the three months ended September 30, 2016 and 2015 , compensation expense related to stock options was $0.5 million and $1.3 million , respectively. As of September 30, 2016 , the total unrecognized compensation cost related to options outstanding was $2.0 million and is expected to be recognized over a weighted average period of 1.8 years . Weighted average fair value of options granted during the three months ended September 30, 2015 was $7.17 per option. Fair value of options vested during the three months ended September 30, 2016 and 2015 was $2.6 million and $1.9 million , respectively. Tax benefits relating to excess stock-based compensation deductions are presented in the condensed consolidated statements of cash flow as financing cash inflows. There were no tax benefits resulting from stock-based compensation deductions for the three months ended September 30, 2016. Tax benefits resulting from stock-based compensation deductions were less than amounts reported for financial reporting purposes by $1.4 million for the three months ended September 30, 2015 . The amount of cash received from the exercise of capital stock options was immaterial during the three months ended September 30, 2016 and 2015 . There was no related tax benefit for the three months ended September 30, 2016 , and the related tax benefit was immaterial for the three months ended September 30, 2015 . The total intrinsic value of options exercised was immaterial during the three months ended September 30, 2016 and 2015 . Under the provisions of the Kennametal Inc. Stock and Incentive Plan of 2010 as amended and restated on October 22, 2013 and as further amended January 27, 2015, 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 both the three months ended September 30, 2016 and 2015 was 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 vesting date after the three -year performance period, with the exception of retirement eligible grantees, who upon retirement are entitled to vest in 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 the three months ended September 30, 2016 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, 2016 115,467 $ 36.96 1,014,744 $ 31.97 Granted 235,241 26.35 582,219 24.98 Vested (16,084 ) 45.24 (276,114 ) 36.76 Performance metric not achieved (35,980 ) 26.35 — — Forfeited — — (27,830 ) 28.46 Unvested performance vesting and time vesting restricted stock units, September 30, 2016 298,644 $ 28.13 1,293,019 $ 27.87 During the three months ended September 30, 2016 and 2015 , compensation expense related to time vesting and performance vesting restricted stock units was $8.3 million and $5.7 million , respectively. As of September 30, 2016 , the total unrecognized compensation cost related to unvested time vesting and performance vesting restricted stock units was $24.2 million and is expected to be recognized over a weighted average period of 2.3 years.

Benefit Plans

Benefit Plans	3 Months Ended
	Sep. 30, 2016
Compensation and Retirement Disclosure [Abstract]
BENEFIT PLANS	BENEFIT PLANS We sponsor several defined benefit pension plans. Additionally, we provide varying levels of postretirement health care and life insurance benefits to some U.S. employees. The table below summarizes the components of net periodic pension income: Three Months Ended September 30, (in thousands) 2016 2015 Service cost $ 733 $ 1,163 Interest cost 7,809 9,485 Expected return on plan assets (14,757 ) (14,709 ) Amortization of transition obligation 23 21 Amortization of prior service credit (113 ) (104 ) Recognition of actuarial losses 2,112 1,833 Special termination benefit charge — 54 Net periodic pension income $ (4,193 ) $ (2,257 ) The special termination benefit charge of $0.1 million during the three months ended September 30, 2015 is the result of lump sum payments to several terminated Executive Retirement Plan participants. The table below summarizes the components of net periodic other postretirement benefit cost: Three Months Ended September 30, (in thousands) 2016 2015 Interest cost $ 168 $ 210 Amortization of prior service credit (6 ) (6 ) Recognition of actuarial loss 89 81 Net periodic other postretirement benefit cost $ 251 $ 285

Inventories

Inventories	3 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES We used the last-in, first-out (LIFO) method of valuing inventories for 45 percent and 44 percent of total inventories at September 30, 2016 and June 30, 2016 , respectively. Since inventory valuations under the LIFO method are based on an annual determination of quantities and costs as of June 30 of each year, the interim LIFO valuations are based on our projections of expected year-end inventory levels and costs. Therefore, the interim financial results are subject to any final year-end LIFO inventory adjustments. Inventories consisted of the following: (in thousands) September 30, 2016 June 30, 2016 Finished goods $ 290,530 $ 284,054 Work in process and powder blends 153,944 166,274 Raw materials 72,623 68,472 Inventories at current cost 517,097 518,800 Less: LIFO valuation (57,801 ) (59,970 ) Total inventories $ 459,296 $ 458,830

Long-Term Debt

Long-Term Debt	3 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
LONG-TERM DEBT	LONG-TERM DEBT The five-year, multi-currency, revolving credit facility, as amended and restated in April 2016 (Credit Agreement) permits revolving credit loans of up to $600 million for working capital, capital expenditures and general corporate purposes. The 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 September 30, 2016 . We had no borrowings outstanding under the Credit Agreement as of September 30, 2016 and June 30, 2016 . Borrowings under the Credit Agreement are guaranteed by our significant domestic subsidiaries. The Credit Agreement matures in April 2021. Fixed rate debt had a fair market value of $709.0 million and $704.0 million at September 30, 2016 and June 30, 2016 , respectively. The Level 2 fair value is determined based on the quoted market price of this debt as of September 30, 2016 and June 30, 2016 , respectively.

Environmental Matters

Environmental Matters	3 Months Ended
	Sep. 30, 2016
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 Among other environmental laws, we are subject to the Comprehensive Environmental Response Compensation and Liability Act of 1980 (Superfund), under which we have been designated by the United States Environmental Protection Agency (USEPA) as a potentially responsible party (PRP) with respect to environmental remedial costs at certain Superfund sites. We have evaluated our claims and liabilities associated with these Superfund sites based upon best currently available information. We believe our environmental accruals are adequate to cover our portion of the environmental remedial costs at the Superfund sites where we have been designated a PRP, to the extent these expenses are probable and reasonably estimable. Other Environmental Matters We establish and maintain reserves for other potential environmental issues. At September 30, 2016 and June 30, 2016 , the balances of these reserves were $12.5 million . 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.

Income Taxes

Income Taxes	3 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The effective income tax rates for the three months ended September 30, 2016 and 2015 were 29.9 percent (provision on a loss) and 292.8 percent (provision on a loss) , respectively. The change was primarily driven by a discrete tax charge in the prior year quarter for the sale of non-core businesses and a loss in the U.S. in the current quarter for which we could not record a tax benefit due to a full valuation allowance on our U.S deferred tax assets as of the fourth quarter of fiscal 2016.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
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 would occur related to the issuance of capital stock under stock option grants and restricted stock units. The difference between basic and diluted earnings per share relates solely to the effect of capital stock options and restricted stock units. For the three months ended September 30, 2016 and 2015 , the effects of unexercised capital stock options and unvested restricted stock units were anti-dilutive as a result of net losses in the periods and therefore have been excluded from diluted shares outstanding as well as from the diluted earnings per share calculation.

Equity

Equity	3 Months Ended
	Sep. 30, 2016
Equity [Abstract]
EQUITY	EQUITY A summary of the changes in the carrying amounts of total equity, Kennametal Shareholders’ equity and equity attributable to noncontrolling interests as of September 30, 2016 and 2015 is as follows: Kennametal Shareholders’ Equity (in thousands) Capital Additional Retained Accumulated Non- Total equity Balance as of June 30, 2016 $ 99,618 $ 436,617 $ 780,597 $ (352,509 ) $ 31,478 $ 995,801 Net (loss) income — — (21,656 ) — 455 (21,201 ) Other comprehensive income — — — 3,474 415 3,889 Dividend reinvestment 3 60 — — — 63 Capital stock issued under employee benefit and stock plans 290 6,609 — — — 6,899 Purchase of capital stock (3 ) (60 ) — — — (63 ) Cash dividends paid — — (15,980 ) — — (15,980 ) Balance as of September 30, 2016 $ 99,908 $ 443,226 $ 742,961 $ (349,035 ) $ 32,348 $ 969,408 Kennametal Shareholders’ Equity (in thousands) Capital stock Additional paid-in capital Retained earnings Accumulated Non- controlling interests Total equity Balance as of June 30, 2015 $ 99,219 $ 419,829 $ 1,070,282 $ (243,523 ) $ 29,628 $ 1,375,435 Net (loss) income — — (6,226 ) — 522 (5,704 ) Other comprehensive loss — — — (17,333 ) (539 ) (17,872 ) Dividend reinvestment 4 76 — — — 80 Capital stock issued under employee benefit and stock plans 289 2,856 — — — 3,145 Purchase of capital stock (4 ) (76 ) — — — (80 ) Cash dividends paid — — (15,915 ) — — (15,915 ) Balance as of September 30, 2015 $ 99,508 $ 422,685 $ 1,048,141 $ (260,856 ) $ 29,611 $ 1,339,089 The amounts of comprehensive loss attributable to Kennametal Shareholders and noncontrolling interests are disclosed in the condensed consolidated statements of comprehensive income.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	3 Months Ended
	Sep. 30, 2016
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Loss	ACCUMULATED OTHER COMPREHENSIVE LOSS Total accumulated other comprehensive loss (AOCL) consists of net income (loss) 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 three months ended September 30, 2016 (in thousands): Attributable to Kennametal: Postretirement benefit plans Currency translation adjustment Derivatives Total Balance, June 30, 2016 $ (212,163 ) $ (131,212 ) $ (9,134 ) $ (352,509 ) Other comprehensive income (loss) before reclassifications 630 749 (126 ) 1,253 Amounts reclassified from AOCL 1,834 — 387 2,221 Net current period other comprehensive income 2,464 749 261 3,474 AOCL, September 30, 2016 $ (209,699 ) $ (130,463 ) $ (8,873 ) $ (349,035 ) Attributable to noncontrolling interests: Balance, June 30, 2016 $ — $ (3,446 ) $ — $ (3,446 ) Other comprehensive income before reclassifications — 415 — 415 Net current period other comprehensive income — 415 — 415 AOCL, September 30, 2016 $ — $ (3,031 ) $ — $ (3,031 ) The components of, and changes in, AOCL were as follows, net of tax, for the three months ended September 30, 2015 (in thousands): Attributable to Kennametal: Postretirement benefit plans Currency translation adjustment Derivatives Total Balance, June 30, 2015 $ (138,793 ) $ (97,309 ) $ (7,421 ) $ (243,523 ) Other comprehensive income (loss) before reclassifications 999 (18,310 ) 525 (16,786 ) Amounts reclassified from AOCL 1,219 — (1,766 ) (547 ) Net current period other comprehensive income (loss) 2,218 (18,310 ) (1,241 ) (17,333 ) AOCL, September 30, 2015 $ (136,575 ) $ (115,619 ) $ (8,662 ) $ (260,856 ) Attributable to noncontrolling interests: Balance, June, 2015 $ — $ (2,258 ) $ — $ (2,258 ) Other comprehensive loss before reclassifications — (539 ) — (539 ) Net current period other comprehensive loss — (539 ) — (539 ) AOCL, September 30, 2015 $ — $ (2,797 ) $ — $ (2,797 ) Reclassifications out of AOCL for the three months ended September 30, 2016 and 2015 consisted of the following (in thousands): Three Months Ended September 30, Details about AOCL components 2016 2015 Affected line item in the Income Statement Gains and losses on cash flow hedges: Forward starting interest rate swaps $ 545 $ 525 Interest expense Currency exchange contracts (158 ) (3,373 ) Other expense, net Total before tax 387 (2,848 ) Tax expense — 1,082 Provision for income taxes Net of tax $ 387 $ (1,766 ) Postretirement benefit plans: Amortization of transition obligations $ 23 $ 21 See note 9 for further details Amortization of prior service credit (119 ) (110 ) See note 9 for further details Recognition of actuarial losses 2,201 1,914 See note 9 for further details Total before tax 2,105 1,825 Tax benefit (271 ) (606 ) Provision for income taxes Net of tax $ 1,834 $ 1,219 The amount of income tax allocated to each component of other comprehensive income (loss) for the three months ended September 30, 2016 and 2015 : 2016 2015 (in thousands) Pre-tax Tax impact Net of tax Pre-tax Tax impact Net of tax Unrealized (loss) gain on derivatives designated and qualified as cash flow hedges $ (126 ) $ — $ (126 ) $ 847 $ (322 ) $ 525 Reclassification of unrealized loss (gain) on expired derivatives designated and qualified as cash flow hedges 387 — 387 (2,848 ) 1,082 (1,766 ) Unrecognized net pension and other postretirement benefit gain 716 (86 ) 630 1,267 (268 ) 999 Reclassification of net pension and other postretirement benefit loss 2,105 (271 ) 1,834 1,825 (606 ) 1,219 Foreign currency translation adjustments 1,164 — 1,164 (18,905 ) 56 (18,849 ) Other comprehensive income (loss) $ 4,246 $ (357 ) $ 3,889 $ (17,814 ) $ (58 ) $ (17,872 )

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	3 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
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 when events or circumstances indicate that the carrying value may not be recoverable. During the three months ended September 30, 2016 , we reorganized our operating structure in a manner that changed the composition of our reporting units. The Industrial and WIDIA reporting units in fiscal 2017 were formed from the fiscal 2016 Industrial reporting unit. In connection with this reporting unit realignment, during the three months ended September 30, 2016 we updated our goodwill impairment assessment based on a quantitative analysis. We evaluated the goodwill of our reporting units immediately prior to and after the realignment and concluded in both cases that there was no impairment. We allocated our goodwill from the former Industrial segment to the current Industrial and WIDIA segments using a relative fair value approach. The restated Industrial reporting unit passed the goodwill impairment test with fair value substantially exceeded the carrying value. The new WIDIA reporting unit's fair value approximates its carrying value. See Note 18 for further discussion regarding the Company's segments. We are currently exploring strategic alternatives for one of our non-core Infrastructure businesses. The estimated net book value of the business is approximately $30 million as of September 30, 2016 . As the strategic direction has not yet been determined for this business, the Company cannot determine if additional impairment charges will be incurred. 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 WIDIA Infrastructure Total Gross goodwill $ 408,705 $ 40,624 $ 633,211 $ 1,082,540 Accumulated impairment losses (137,204 ) (13,638 ) (633,211 ) (784,053 ) Balance as of June 30, 2016 $ 271,501 $ 26,986 $ — $ 298,487 Activity for the three months ended September 30, 2016: Change in gross goodwill due to translation 210 21 — 231 Gross goodwill 408,915 40,645 633,211 1,082,771 Accumulated impairment losses (137,204 ) (13,638 ) (633,211 ) (784,053 ) Balance as of September 30, 2016 $ 271,711 $ 27,007 $ — $ 298,718 The components of our other intangible assets were as follows: Estimated Useful Life (in years) September 30, 2016 June 30, 2016 (in thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Contract-based 3 to 15 $ 7,063 $ (6,948 ) $ 7,152 $ (6,886 ) Technology-based and other 4 to 20 46,506 (27,253 ) 47,323 (27,011 ) Customer-related 10 to 21 205,377 (70,120 ) 205,471 (66,938 ) Unpatented technology 10 to 30 31,820 (4,867 ) 31,837 (4,614 ) Trademarks 5 to 20 12,357 (7,998 ) 12,668 (8,644 ) Trademarks Indefinite 16,934 — 16,850 — Total $ 320,057 $ (117,186 ) $ 321,301 $ (114,093 ) During the three months ended September 30, 2016 and 2015 , we recorded amortization expense of $4.3 million and $6.2 million , respectively, related to our other intangible assets.

Segment Data

Segment Data	3 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
SEGMENT DATA	SEGMENT DATA Kennametal delivers productivity to customers seeking peak performance in demanding environments by providing innovative custom and standard wear-resistant solutions. To provide these solutions, we harness our knowledge of advanced materials and application development with a commitment to environmental sustainability. 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. 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. None of our three reportable operating segments represent the aggregation of two or more operating segments. The Industrial segment generally serves customers that operate in industrial end markets such as transportation, general engineering and aerospace and defense, delivering high performance metalworking tools for specified purposes. 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, with products delivered through a diverse base including direct and indirect channels. The WIDIA segment generally serves customers that operate in industrial end markets, primarily in general engineering, delivering high performance metalworking tools for general purposes. Whereas the Industrial segment's core is in application expertise and specific customer needs, WIDIA offers a competitive alternative for general metal cutting solutions across a broader platform for application, with products delivered primarily through indirect channels. 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. Our sales and operating income (loss) by segment are as follows: Three Months Ended September 30, (in thousands) 2016 2015 Sales: Industrial (4) $ 269,043 $ 270,191 WIDIA (4) 41,015 43,142 Infrastructure 167,082 242,021 Total sales $ 477,140 $ 555,354 Operating (loss) income: Industrial (4) $ 5,556 $ 21,459 WIDIA (4) (5,756 ) (1,709 ) Infrastructure (7,587 ) (8,428 ) Corporate (1,424 ) (4,708 ) Total operating (loss) income (9,211 ) 6,614 Interest expense 6,993 6,979 Other expense, net 118 1,087 Loss from continuing operations before income taxes $ (16,322 ) $ (1,452 ) Total assets by segment are as follows: (in thousands) September 30, 2016 June 30, 2016 Industrial (4) $ 1,086,170 $ 1,019,887 WIDIA (4) 193,576 195,339 Infrastructure 764,546 849,447 Corporate 263,141 298,110 Total assets $ 2,307,433 $ 2,362,783 (4) Amounts for the three months ended September 30, 2015 and as of June 30, 2016 have been restated to reflect the change in reportable operating segments.

Supplemental Cash Flow Disclo25

Supplemental Cash Flow Disclosures (Tables)	3 Months Ended
	Sep. 30, 2016
Supplemental Cash Flow Elements [Abstract]
Supplemental Cash Flow Disclosures	Three Months Ended September 30, (in thousands) 2016 2015 Cash paid during the period for: Interest $ 6,935 $ 6,832 Income taxes 4,943 19,838 Supplemental disclosure of non-cash information: Changes in accounts payable related to purchases of property, plant and equipment 15,404 16,400

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Financial instruments at fair value on recurring basis	As of September 30, 2016 , 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) $ — $ 394 $ — $ 394 Total assets at fair value $ — $ 394 $ — $ 394 Liabilities: Derivatives (1) $ — $ 518 $ — $ 518 Total liabilities at fair value $ — $ 518 $ — $ 518 As of June 30, 2016 , 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) $ — $ 334 $ — $ 334 Total assets at fair value $ — $ 334 $ — $ 334 Liabilities: Derivatives (1) $ — $ 763 $ — $ 763 Contingent consideration — — 6,600 6,600 Total liabilities at fair value $ — $ 763 $ 6,600 $ 7,363 (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 He27

Derivative Instruments and Hedging Activities (Tables)	3 Months Ended
	Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Fair value of derivatives	The fair value of derivatives designated and not designated as hedging instruments in the condensed consolidated balance sheet are as follows: (in thousands) September 30, June 30, Derivatives designated as hedging instruments Other current assets - range forward contracts $ 239 $ 323 Other current liabilities - range forward contracts (5 ) — Other assets - range forward contracts 35 — Total derivatives designated as hedging instruments 269 323 Derivatives not designated as hedging instruments Other current assets - currency forward contracts 120 11 Other current liabilities - currency forward contracts (513 ) (763 ) Total derivatives not designated as hedging instruments (393 ) (752 ) Total derivatives $ (124 ) $ (429 )
(Gains) losses related to derivatives not designated as hedging instruments	Gains related to derivatives not designated as hedging instruments have been recognized as follows: Three Months Ended September 30, (in thousands) 2016 2015 Other expense, net - currency forward contracts $ (318 ) $ (17 )
Gains and losses related to cash flow hedges	The following represents gains and losses related to cash flow hedges: Three Months Ended September 30, (in thousands) 2016 2015 (Losses) gains recognized in other comprehensive loss, net $ (125 ) $ 516 Losses (gains) reclassified from accumulated other comprehensive loss into other expense, net $ 386 $ (1,458 )

Restructuring (Tables)

Restructuring (Tables)	3 Months Ended
	Sep. 30, 2016
Restructuring Charges [Abstract]
Schedule of Restructuring Reserve by Type of Cost	The restructuring accrual is recorded in other current liabilities in our condensed consolidated balance sheet and the amount attributable to each segment is as follows: (in thousands) June 30, 2016 Expense Asset Write-Down Translation Cash Expenditures September 30, 2016 Industrial Severance $ 8,180 $ 16,994 $ — $ 36 $ (10,904 ) $ 14,306 Facilities — 105 (105 ) — — — Other 809 (78 ) — (3 ) (355 ) 373 Total Industrial $ 8,989 $ 17,021 $ (105 ) $ 33 $ (11,259 ) $ 14,679 WIDIA Severance $ 909 $ 2,880 $ — $ 6 $ (1,848 ) $ 1,947 Facilities — 9 (9 ) — — — Other 90 (13 ) — — (60 ) 17 Total WIDIA 999 2,876 (9 ) 6 (1,908 ) 1,964 Infrastructure Severance $ 5,301 $ 8,929 $ — $ 19 $ (5,729 ) $ 8,520 Facilities 33 (191 ) 191 — — 33 Other 381 (41 ) — (1 ) (187 ) 152 Total Infrastructure $ 5,715 $ 8,697 $ 191 $ 18 $ (5,916 ) $ 8,705 Total $ 15,703 $ 28,594 $ 77 $ 57 $ (19,083 ) $ 25,348

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Sep. 30, 2016
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 the three months ended September 30, 2015 were as follows: Risk-free interest rate 1.4 % Expected life (years) (2) 4.5 Expected volatility (3) 31.0 % Expected dividend yield 2.0 % (2) Expected life is derived from historical experience. (3) Expected volatility is based on the implied historical volatility of our stock.
Changes in stock options	Changes in our stock options for the three months ended September 30, 2016 were as follows: Options Weighted Average Exercise Price Weighted Average Remaining Life (years) Aggregate Intrinsic value (in thousands) Options outstanding, June 30, 2016 2,547,809 $ 33.72 Granted — — Exercised (8,359 ) 22.83 Lapsed or forfeited (90,230 ) 28.36 Options outstanding, September 30, 2016 2,449,220 $ 33.95 4.6 $ 3,431 Options vested and expected to vest, September 30, 2016 2,413,580 $ 34.02 4.6 $ 3,348 Options exercisable, September 30, 2016 1,826,158 $ 35.84 3.2 $ 1,245
Changes in time vesting and performance vesting restricted stock units	Changes in our time vesting and performance vesting restricted stock units for the three months ended September 30, 2016 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, 2016 115,467 $ 36.96 1,014,744 $ 31.97 Granted 235,241 26.35 582,219 24.98 Vested (16,084 ) 45.24 (276,114 ) 36.76 Performance metric not achieved (35,980 ) 26.35 — — Forfeited — — (27,830 ) 28.46 Unvested performance vesting and time vesting restricted stock units, September 30, 2016 298,644 $ 28.13 1,293,019 $ 27.87

Benefit Plans (Tables)

Benefit Plans (Tables)	3 Months Ended
	Sep. 30, 2016
Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Net periodic pension (income)	The table below summarizes the components of net periodic pension income: Three Months Ended September 30, (in thousands) 2016 2015 Service cost $ 733 $ 1,163 Interest cost 7,809 9,485 Expected return on plan assets (14,757 ) (14,709 ) Amortization of transition obligation 23 21 Amortization of prior service credit (113 ) (104 ) Recognition of actuarial losses 2,112 1,833 Special termination benefit charge — 54 Net periodic pension income $ (4,193 ) $ (2,257 )
Other Postretirement Benefit Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Net periodic pension (income)	The table below summarizes the components of net periodic other postretirement benefit cost: Three Months Ended September 30, (in thousands) 2016 2015 Interest cost $ 168 $ 210 Amortization of prior service credit (6 ) (6 ) Recognition of actuarial loss 89 81 Net periodic other postretirement benefit cost $ 251 $ 285

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Inventories	Inventories consisted of the following: (in thousands) September 30, 2016 June 30, 2016 Finished goods $ 290,530 $ 284,054 Work in process and powder blends 153,944 166,274 Raw materials 72,623 68,472 Inventories at current cost 517,097 518,800 Less: LIFO valuation (57,801 ) (59,970 ) Total inventories $ 459,296 $ 458,830

Equity (Tables)

Equity (Tables)	3 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Summary of the changes in the carrying amounts of total equity, Kennametal shareholders' equity and equity attributable to noncontrolling interests	A summary of the changes in the carrying amounts of total equity, Kennametal Shareholders’ equity and equity attributable to noncontrolling interests as of September 30, 2016 and 2015 is as follows: Kennametal Shareholders’ Equity (in thousands) Capital Additional Retained Accumulated Non- Total equity Balance as of June 30, 2016 $ 99,618 $ 436,617 $ 780,597 $ (352,509 ) $ 31,478 $ 995,801 Net (loss) income — — (21,656 ) — 455 (21,201 ) Other comprehensive income — — — 3,474 415 3,889 Dividend reinvestment 3 60 — — — 63 Capital stock issued under employee benefit and stock plans 290 6,609 — — — 6,899 Purchase of capital stock (3 ) (60 ) — — — (63 ) Cash dividends paid — — (15,980 ) — — (15,980 ) Balance as of September 30, 2016 $ 99,908 $ 443,226 $ 742,961 $ (349,035 ) $ 32,348 $ 969,408 Kennametal Shareholders’ Equity (in thousands) Capital stock Additional paid-in capital Retained earnings Accumulated Non- controlling interests Total equity Balance as of June 30, 2015 $ 99,219 $ 419,829 $ 1,070,282 $ (243,523 ) $ 29,628 $ 1,375,435 Net (loss) income — — (6,226 ) — 522 (5,704 ) Other comprehensive loss — — — (17,333 ) (539 ) (17,872 ) Dividend reinvestment 4 76 — — — 80 Capital stock issued under employee benefit and stock plans 289 2,856 — — — 3,145 Purchase of capital stock (4 ) (76 ) — — — (80 ) Cash dividends paid — — (15,915 ) — — (15,915 ) Balance as of September 30, 2015 $ 99,508 $ 422,685 $ 1,048,141 $ (260,856 ) $ 29,611 $ 1,339,089

Accumulated Other Comprehensi33

Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
	Sep. 30, 2016
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Components of, and changes in accumulated other comprehensive loss	The components of, and changes in, AOCL were as follows, net of tax, for the three months ended September 30, 2016 (in thousands): Attributable to Kennametal: Postretirement benefit plans Currency translation adjustment Derivatives Total Balance, June 30, 2016 $ (212,163 ) $ (131,212 ) $ (9,134 ) $ (352,509 ) Other comprehensive income (loss) before reclassifications 630 749 (126 ) 1,253 Amounts reclassified from AOCL 1,834 — 387 2,221 Net current period other comprehensive income 2,464 749 261 3,474 AOCL, September 30, 2016 $ (209,699 ) $ (130,463 ) $ (8,873 ) $ (349,035 ) Attributable to noncontrolling interests: Balance, June 30, 2016 $ — $ (3,446 ) $ — $ (3,446 ) Other comprehensive income before reclassifications — 415 — 415 Net current period other comprehensive income — 415 — 415 AOCL, September 30, 2016 $ — $ (3,031 ) $ — $ (3,031 ) The components of, and changes in, AOCL were as follows, net of tax, for the three months ended September 30, 2015 (in thousands): Attributable to Kennametal: Postretirement benefit plans Currency translation adjustment Derivatives Total Balance, June 30, 2015 $ (138,793 ) $ (97,309 ) $ (7,421 ) $ (243,523 ) Other comprehensive income (loss) before reclassifications 999 (18,310 ) 525 (16,786 ) Amounts reclassified from AOCL 1,219 — (1,766 ) (547 ) Net current period other comprehensive income (loss) 2,218 (18,310 ) (1,241 ) (17,333 ) AOCL, September 30, 2015 $ (136,575 ) $ (115,619 ) $ (8,662 ) $ (260,856 ) Attributable to noncontrolling interests: Balance, June, 2015 $ — $ (2,258 ) $ — $ (2,258 ) Other comprehensive loss before reclassifications — (539 ) — (539 ) Net current period other comprehensive loss — (539 ) — (539 ) AOCL, September 30, 2015 $ — $ (2,797 ) $ — $ (2,797 )
Reclassification out of Accumulated Other Comprehensive Loss	Reclassifications out of AOCL for the three months ended September 30, 2016 and 2015 consisted of the following (in thousands): Three Months Ended September 30, Details about AOCL components 2016 2015 Affected line item in the Income Statement Gains and losses on cash flow hedges: Forward starting interest rate swaps $ 545 $ 525 Interest expense Currency exchange contracts (158 ) (3,373 ) Other expense, net Total before tax 387 (2,848 ) Tax expense — 1,082 Provision for income taxes Net of tax $ 387 $ (1,766 ) Postretirement benefit plans: Amortization of transition obligations $ 23 $ 21 See note 9 for further details Amortization of prior service credit (119 ) (110 ) See note 9 for further details Recognition of actuarial losses 2,201 1,914 See note 9 for further details Total before tax 2,105 1,825 Tax benefit (271 ) (606 ) Provision for income taxes Net of tax $ 1,834 $ 1,219
Income Tax Allocated to Each Component of Other Comprehensive Income [Table Text Block]	The amount of income tax allocated to each component of other comprehensive income (loss) for the three months ended September 30, 2016 and 2015 : 2016 2015 (in thousands) Pre-tax Tax impact Net of tax Pre-tax Tax impact Net of tax Unrealized (loss) gain on derivatives designated and qualified as cash flow hedges $ (126 ) $ — $ (126 ) $ 847 $ (322 ) $ 525 Reclassification of unrealized loss (gain) on expired derivatives designated and qualified as cash flow hedges 387 — 387 (2,848 ) 1,082 (1,766 ) Unrecognized net pension and other postretirement benefit gain 716 (86 ) 630 1,267 (268 ) 999 Reclassification of net pension and other postretirement benefit loss 2,105 (271 ) 1,834 1,825 (606 ) 1,219 Foreign currency translation adjustments 1,164 — 1,164 (18,905 ) 56 (18,849 ) Other comprehensive income (loss) $ 4,246 $ (357 ) $ 3,889 $ (17,814 ) $ (58 ) $ (17,872 )

Goodwill and Other Intangible34

Goodwill and Other Intangible Assets (Tables)	3 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
The carrying amount of goodwill	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 WIDIA Infrastructure Total Gross goodwill $ 408,705 $ 40,624 $ 633,211 $ 1,082,540 Accumulated impairment losses (137,204 ) (13,638 ) (633,211 ) (784,053 ) Balance as of June 30, 2016 $ 271,501 $ 26,986 $ — $ 298,487 Activity for the three months ended September 30, 2016: Change in gross goodwill due to translation 210 21 — 231 Gross goodwill 408,915 40,645 633,211 1,082,771 Accumulated impairment losses (137,204 ) (13,638 ) (633,211 ) (784,053 ) Balance as of September 30, 2016 $ 271,711 $ 27,007 $ — $ 298,718
The components of intangible assets	The components of our other intangible assets were as follows: Estimated Useful Life (in years) September 30, 2016 June 30, 2016 (in thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Contract-based 3 to 15 $ 7,063 $ (6,948 ) $ 7,152 $ (6,886 ) Technology-based and other 4 to 20 46,506 (27,253 ) 47,323 (27,011 ) Customer-related 10 to 21 205,377 (70,120 ) 205,471 (66,938 ) Unpatented technology 10 to 30 31,820 (4,867 ) 31,837 (4,614 ) Trademarks 5 to 20 12,357 (7,998 ) 12,668 (8,644 ) Trademarks Indefinite 16,934 — 16,850 — Total $ 320,057 $ (117,186 ) $ 321,301 $ (114,093 )

Segment Data (Tables)

Segment Data (Tables)	3 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Sales and operating income (loss) by segment and segment assets	Our sales and operating income (loss) by segment are as follows: Three Months Ended September 30, (in thousands) 2016 2015 Sales: Industrial (4) $ 269,043 $ 270,191 WIDIA (4) 41,015 43,142 Infrastructure 167,082 242,021 Total sales $ 477,140 $ 555,354 Operating (loss) income: Industrial (4) $ 5,556 $ 21,459 WIDIA (4) (5,756 ) (1,709 ) Infrastructure (7,587 ) (8,428 ) Corporate (1,424 ) (4,708 ) Total operating (loss) income (9,211 ) 6,614 Interest expense 6,993 6,979 Other expense, net 118 1,087 Loss from continuing operations before income taxes $ (16,322 ) $ (1,452 ) Total assets by segment are as follows: (in thousands) September 30, 2016 June 30, 2016 Industrial (4) $ 1,086,170 $ 1,019,887 WIDIA (4) 193,576 195,339 Infrastructure 764,546 849,447 Corporate 263,141 298,110 Total assets $ 2,307,433 $ 2,362,783 (4) Amounts for the three months ended September 30, 2015 and as of June 30, 2016 have been restated to reflect the change in reportable operating segments.

New Accounting Standards New Ac

New Accounting Standards New Accounting Standards - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Jun. 30, 2016
New Accounting Standards [Abstract]
Deferred Tax Assets, Net of Valuation Allowance, Current	$ 0	$ 26,713
Deferred Tax Liabilities, Net, Current		588
Debt Issuance Costs, Net	$ 5,700	$ 6,000

Supplemental Cash Flow Disclo37

Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash paid during the period for:
Interest	$ 6,935	$ 6,832
Income taxes	4,943	19,838
Change in accounts payable related to property, plant, and equipment	$ 15,404	$ 16,400

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Jun. 30, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives Assets	$ 394	$ 334
Total assets at fair value	394	334
Derivatives Liabilities	518	763
Contingent Consideration		6,600
Total liabilities at fair value	518	7,363
Fair Value, Measurements, Recurring [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives Assets	394	334
Total assets at fair value	394	334
Derivatives Liabilities	518	763
Total liabilities at fair value	518	763
Fair Value, Measurements, Recurring [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent Consideration		6,600
Total liabilities at fair value	$ 0	$ 6,600

Fair Value Measurments - Contin

Fair Value Measurments - Contingent Consideration (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Jun. 30, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business Combination, Contingent Consideration, Liability		$ 6,600
Contingent Consideration Paid	$ 6,600
Fair Value, Measurements, Recurring [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business Combination, Contingent Consideration, Liability		$ 6,600

Derivative Instruments and He40

Derivative Instruments and Hedging Activities - Fair Value of Derivatives Designated and Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Jun. 30, 2016
Fair value of derivatives
Derivative, Fair Value, Net	$ (124)	$ (429)
Designated as Hedging Instrument [Member]
Fair value of derivatives
Derivative, Fair Value, Net	269	323
Not Designated as Hedging Instrument [Member]
Fair value of derivatives
Derivative, Fair Value, Net	(393)	(752)
Range Forward Contracts [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member]
Fair value of derivatives
Derivative assets designated as hedging instruments	239	323
Range Forward Contracts [Member] | Designated as Hedging Instrument [Member] | Other Current Liabilities [Member]
Fair value of derivatives
Derivative liabilities designated as hedging instruments	(5)	0
Range Forward Contracts [Member] | Designated as Hedging Instrument [Member] | Other Assets [Member]
Fair value of derivatives
Derivative assets designated as hedging instruments	35	0
Currency Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | Other Current Assets [Member]
Fair value of derivatives
Derivative assets designated as hedging instruments	120	11
Currency Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | Other Current Liabilities [Member]
Fair value of derivatives
Derivative liabilities designated as hedging instruments	$ (513)	$ (763)

Derivative Instruments and He41

Derivative Instruments and Hedging Activities - Gains and Losses Related to Derivatives Not Designated as Hedging Instruments and to Cash Flow Hedges (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
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, net - currency forward contracts	$ (318)	$ (17)
Range Forward Contracts [Member] | Cash flow hedging [Member]
(Gains) losses related to cash flow hedges
(Losses) gains recognized in other comprehensive loss, net	(125)	516
Losses (gains) reclassified from accumulated other comprehensive loss into other expense, net	$ 386	$ (1,458)

Derivative Instruments and He42

Derivative Instruments and Hedging Activities (Details Textual) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Jun. 30, 2016
Derivative Instruments and Hedging Activities (Textual) [Abstract]
Gains or losses recognized in earnings due to ineffectiveness and excluded from effectiveness testing	$ 0	$ 0
Cash Flow Hedging [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	$ 71.5		$ 53.3

Restructuring and Related Cha43

Restructuring and Related Charges - Restructuring Accrual (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Restructuring Reserve [Abstract]
Beginning Balance	$ 15,703
Restructuring Charges	28,594	$ 9,120
Asset Write-Down	77
Translation	57
Cash Expenditures	(19,083)
Ending Balance	25,348
Industrial [Member]
Restructuring Reserve [Abstract]
Beginning Balance	8,989
Restructuring Charges	17,021
Asset Write-Down	(105)
Translation	33
Cash Expenditures	(11,259)
Ending Balance	14,679
Industrial [Member] | Severance [Member]
Restructuring Reserve [Abstract]
Beginning Balance	8,180
Restructuring Charges	16,994
Asset Write-Down	0
Translation	36
Cash Expenditures	(10,904)
Ending Balance	14,306
Industrial [Member] | Facilities [Member]
Restructuring Reserve [Abstract]
Beginning Balance	0
Restructuring Charges	105
Asset Write-Down	(105)
Translation	0
Cash Expenditures	0
Ending Balance	0
Industrial [Member] | Other [Member]
Restructuring Reserve [Abstract]
Beginning Balance	809
Restructuring Charges	(78)
Asset Write-Down	0
Translation	(3)
Cash Expenditures	(355)
Ending Balance	373
WIDIA [Member]
Restructuring Reserve [Abstract]
Beginning Balance	999
Restructuring Charges	2,876
Asset Write-Down	(9)
Translation	6
Cash Expenditures	(1,908)
Ending Balance	1,964
WIDIA [Member] | Severance [Member]
Restructuring Reserve [Abstract]
Beginning Balance	909
Restructuring Charges	2,880
Asset Write-Down	0
Translation	6
Cash Expenditures	(1,848)
Ending Balance	1,947
WIDIA [Member] | Facilities [Member]
Restructuring Reserve [Abstract]
Beginning Balance	0
Restructuring Charges	9
Asset Write-Down	(9)
Translation	0
Cash Expenditures	0
Ending Balance	0
WIDIA [Member] | Other [Member]
Restructuring Reserve [Abstract]
Beginning Balance	90
Restructuring Charges	(13)
Asset Write-Down	0
Translation	0
Cash Expenditures	(60)
Ending Balance	17
Infrastructure [Member]
Restructuring Reserve [Abstract]
Beginning Balance	5,715
Restructuring Charges	8,697
Asset Write-Down	191
Translation	18
Cash Expenditures	(5,916)
Ending Balance	8,705
Infrastructure [Member] | Severance [Member]
Restructuring Reserve [Abstract]
Beginning Balance	5,301
Restructuring Charges	8,929
Asset Write-Down	0
Translation	19
Cash Expenditures	(5,729)
Ending Balance	8,520
Infrastructure [Member] | Facilities [Member]
Restructuring Reserve [Abstract]
Beginning Balance	33
Restructuring Charges	(191)
Asset Write-Down	191
Translation	0
Cash Expenditures	0
Ending Balance	33
Infrastructure [Member] | Other [Member]
Restructuring Reserve [Abstract]
Beginning Balance	381
Restructuring Charges	(41)
Asset Write-Down	0
Translation	(1)
Cash Expenditures	(187)
Ending Balance	$ 152

Restructuring and Related Cha44

Restructuring and Related Charges - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Incurred Cost	$ 31,658	$ 15,110
Restructuring Charges	28,594	9,120
Industrial [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	17,021
Infrastructure [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	8,697
WIDIA [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	2,876
Ongoing Restructuring [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Cost Incurred to Date	102,807
Ongoing Restructuring [Member] | Minimum [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost	155,000
Ongoing Restructuring [Member] | Maximum [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost	$ 175,000
Ongoing Restructuring [Member] | Industrial [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost Percent	60.00%
Restructuring and Related Cost, Cost Incurred to Date	$ 54,299
Ongoing Restructuring [Member] | Infrastructure [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost Percent	30.00%
Restructuring and Related Cost, Cost Incurred to Date	$ 32,990
Ongoing Restructuring [Member] | WIDIA [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost Percent	5.00%
Restructuring and Related Cost, Cost Incurred to Date	$ 8,574
Ongoing Restructuring [Member] | Corporate Segment [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost Percent	5.00%
Restructuring and Related Cost, Cost Incurred to Date	$ 6,944
Cost of Sales [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Related Charges Recorded in Cost of Goods Sold	1,996	1,627
Operating Expense [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Related Charges Recorded in Cost of Goods Sold	$ 1,057	$ 4,363

Stock-Based Compensation - Gran

Stock-Based Compensation - Grants Valuation Assumptions (Details) - Stock Option [Member]	3 Months Ended
	Sep. 30, 2015
Assumptions used in valuation of stock options
Risk-free interest rate	1.40%
Expected life	4 years 6 months	[1]
Expected volatility	31.00%	[2]
Expected dividend yield	2.00%
[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)	3 Months Ended
	Sep. 30, 2016USD ($)$ / sharesshares
Changes in stock options
Options outstanding, June 30, 2016 | shares	2,547,809
Options, Granted | shares	0
Options, Exercised | shares	(8,359)
Options, Lapsed or Forfeited | shares	(90,230)
Options outstanding, September 30, 2016 | shares	2,449,220
Options vested and expected to vest, September 30, 2016 | shares	2,413,580
Options exercisable, September 30, 2016 | shares	1,826,158
Weighted Average Exercise Price, Options outstanding, June 30, 2016 | $ / shares	$ 33.72
Weighted Average Exercise Price, Granted | $ / shares	0
Weighted Average Exercise Price, Exercised | $ / shares	22.83
Weighted Average Exercise Price, Lapsed or Forfeited | $ / shares	28.36
Weighted Average Exercise Price, Options outstanding, September 30, 2016 | $ / shares	33.95
Weighted Average Exercise Price, Option vested and expected to vest, September 30, 2016 | $ / shares	34.02
Weighted Average Exercise Price, Options exercisable, September 30, 2016 | $ / shares	$ 35.84
Weighted Average Remaining Life, Options outstanding, September 30, 2016	4 years 7 months 6 days
Weighted Average Remaining Life, Options vested and expected to vest, September 30, 2016	4 years 7 months 6 days
Weighted Average Remaining Life, Options exercisable, September 30, 2016	3 years 2 months 12 days
Aggregate Intrinsic value, Options outstanding, September 30, 2016 | $	$ 3,431,000
Aggregate Intrinsic Value, Options vested and expected to vest, September 30, 2016 | $	3,348,000
Aggregate Intrinsic Value, Options exercisable, September 30, 2016 | $	$ 1,245,000

Stock-Based Compensation - Ch47

Stock-Based Compensation - Changes in Restricted Stock Units (Details)	3 Months Ended
	Sep. 30, 2016$ / sharesshares
Restricted Stock Units - Performance Vesting [Member]
Changes in restricted stock awards
Unvested restricted stock awards, June 30, 2016, Shares | shares	115,467
Granted, Shares | shares	235,241
Vested, Shares | shares	(16,084)
Performance Metric Not Achieved, Shares | shares	(35,980)
Forfeited, Shares | shares	0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares	$ 0
Unvested restricted stock awards, September 30, 2016 | shares	298,644
Weighted Average Fair Value, Unvested restricted stock awards, June 30, 2016 | $ / shares	$ 36.96
Weighted Average Fair Value, Granted | $ / shares	26.35
Weighted Average Fair Value, Vested | $ / shares	45.24
Weighted Average Fair Value, Performance Metric Not Achieved | $ / shares	26.35
Weighted Average Fair Value, Unvested restricted stock awards, September 30, 2016 | $ / shares	$ 28.13
Restricted Stock Units - Time Vesting [Member]
Changes in restricted stock awards
Unvested restricted stock awards, June 30, 2016, Shares | shares	1,014,744
Granted, Shares | shares	582,219
Vested, Shares | shares	(276,114)
Forfeited, Shares | shares	(27,830)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares	$ 28.46
Unvested restricted stock awards, September 30, 2016 | shares	1,293,019
Weighted Average Fair Value, Unvested restricted stock awards, June 30, 2016 | $ / shares	$ 31.97
Weighted Average Fair Value, Granted | $ / shares	24.98
Weighted Average Fair Value, Vested | $ / shares	36.76
Weighted Average Fair Value, Unvested restricted stock awards, September 30, 2016 | $ / shares	$ 27.87

Stock-Based Compensation (Detai

Stock-Based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	0
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	$ 0.5	$ 1.3
Unrecognized compensation cost	$ 2
Unrecognized compensation costs, weighted average period	1 year 9 months 18 days
Weighted average fair value of options granted		$ 7.17
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value	$ 2.6	$ 1.9
Tax benefits resulting from stock-based compensation deductions (less than) in excess of amounts reported for financial reporting purposes	0	1.4
Tax benefit from the exercise of capital stock option	0
Restricted Stock Units - Time Vesting Performance Vesting [Member]
Stock-Based Compensation (Textual) [Abstract]
Compensation expense related to stock option	8.3	$ 5.7
Unrecognized compensation cost	$ 24.2
Unrecognized compensation costs, weighted average period	2 years 3 months 18 days

Benefit Plans - Components of N

Benefit Plans - Components of Net Periodic Pension Income (Details) - Pension plans contribution [Member] - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Net periodic pension income
Service cost	$ 733	$ 1,163
Interest cost	7,809	9,485
Expected return on plan assets	(14,757)	(14,709)
Amortization of transition obligation	23	21
Amortization of prior service credit	(113)	(104)
Recognition of actuarial losses	2,112	1,833
Special Termination Benefits Charge	0	54
Net periodic pension income	$ (4,193)	$ (2,257)

Benefit Plans - Components of50

Benefit Plans - Components of Net Periodic Other Postretirement Benefit Cost (Details) - Other postretirement benefit plans [Member] - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Net periodic other postretirement benefit costs
Interest cost	$ 168	$ 210
Amortization of prior service credit	(6)	(6)
Recognition of actuarial loss (gains)	89	81
Net periodic other postretirement benefit cost	$ 251	$ 285

Benefit Plans Benefit Plans - N

Benefit Plans Benefit Plans - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Pension Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Special Termination Benefits Charge	$ 0	$ 54

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Jun. 30, 2016
Inventories
Finished goods	$ 290,530	$ 284,054
Work in process and powder blends	153,944	166,274
Raw materials	72,623	68,472
Inventories at current cost	517,097	518,800
Less: LIFO valuation	(57,801)	(59,970)
Total inventories	$ 459,296	$ 458,830
Inventories (Textual) [Abstract]
Percentage of inventories valued by using LIFO method	45.00%	44.00%

Long-Term Debt (Details)

Long-Term Debt (Details) - USD ($) $ in Millions	Sep. 30, 2016	Jun. 30, 2016	Apr. 15, 2016
Long-Term Debt (Additional Textual) [Abstract]
Fixed rate at fair market value	$ 709	$ 704
2011 Credit Agreement [Member]
Long-Term Debt (Textual) [Abstract]
Borrowing outstanding under 2011 Credit Agreement	$ 0
Line of Credit Facility, Maximum Borrowing Capacity			$ 600

Environmental Matters (Details)

Environmental Matters (Details) $ in Millions	Sep. 30, 2016USD ($)
Environmental Remediation Obligations [Abstract]
Reserves for Environmental Costs	$ 12.5

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Income Tax (Textual) [Abstract]
Effective tax rate	(29.90%)	(292.80%)

Equity (Details)

Equity (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Beginning Balance	$ 995,801	$ 1,375,435
Net (loss) income	(21,201)	(5,704)
Other comprehensive income	3,889	(17,872)
Dividend reinvestment	63	80
Capital stock issued under employee benefit and stock plans	6,899	3,145
Purchase of capital stock	(63)	(80)
Cash dividends paid	(15,980)	(15,915)
Ending Balance	969,408	1,339,089
Capital stock [Member]
Beginning Balance	99,618	99,219
Dividend reinvestment	3	4
Capital stock issued under employee benefit and stock plans	290	289
Purchase of capital stock	(3)	(4)
Ending Balance	99,908	99,508
Additional paid-in capital [Member]
Beginning Balance	436,617	419,829
Dividend reinvestment	60	76
Capital stock issued under employee benefit and stock plans	6,609	2,856
Purchase of capital stock	(60)	(76)
Ending Balance	443,226	422,685
Retained earnings [Member]
Beginning Balance	780,597	1,070,282
Net (loss) income	(21,656)	(6,226)
Cash dividends paid	(15,980)	(15,915)
Ending Balance	742,961	1,048,141
Accumulated other comprehensive (loss) income [Member]
Beginning Balance	(352,509)	(243,523)
Other comprehensive income	3,474	(17,333)
Ending Balance	(349,035)	(260,856)
Non-controlling interest [Member]
Beginning Balance	31,478	29,628
Net (loss) income	455	522
Other comprehensive income	415	(539)
Cash dividends paid	0	0
Ending Balance	$ 32,348	$ 29,611

Accumulated Other Comprehensi57

Accumulated Other Comprehensive Loss - Components of and Changes in Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Accumulated Other Comprehensive (Loss) Income [Line Items]
Accumulated Other Comprehensive (Loss) Income, Net of Tax	$ (352,509)	$ (243,523)
Other comprehensive (loss) income before reclassifications	1,253	(16,786)
Amounts reclassified from accumulated other comprehensive loss	2,221	(547)
Net current period other comprehensive (loss) income	3,474	(17,333)
Accumulated Other Comprehensive (Loss) Income, Net of Tax	(349,035)	(260,856)
Accumulated Defined Benefit Plans Adjustment [Member]
Accumulated Other Comprehensive (Loss) Income [Line Items]
Accumulated Other Comprehensive (Loss) Income, Net of Tax	(212,163)	(138,793)
Other comprehensive (loss) income before reclassifications	630	999
Amounts reclassified from accumulated other comprehensive loss	1,834	1,219
Net current period other comprehensive (loss) income	2,464	2,218
Accumulated Other Comprehensive (Loss) Income, Net of Tax	(209,699)	(136,575)
Accumulated Currency Translation Adjustment [Member]
Accumulated Other Comprehensive (Loss) Income [Line Items]
Accumulated Other Comprehensive (Loss) Income, Net of Tax	(131,212)	(97,309)
Other comprehensive (loss) income before reclassifications	749	(18,310)
Amounts reclassified from accumulated other comprehensive loss	0
Net current period other comprehensive (loss) income	749	(18,310)
Accumulated Other Comprehensive (Loss) Income, Net of Tax	(130,463)	(115,619)
Accumulated Net (Loss) Gain from Designated or Qualifying Cash Flow Hedges [Member]
Accumulated Other Comprehensive (Loss) Income [Line Items]
Accumulated Other Comprehensive (Loss) Income, Net of Tax	(9,134)	(7,421)
Other comprehensive (loss) income before reclassifications	(126)	525
Amounts reclassified from accumulated other comprehensive loss	387	(1,766)
Net current period other comprehensive (loss) income	261	(1,241)
Accumulated Other Comprehensive (Loss) Income, Net of Tax	(8,873)	(8,662)
Noncontrolling Interest [Member]
Accumulated Other Comprehensive (Loss) Income [Line Items]
Accumulated Other Comprehensive (Loss) Income, Net of Tax	(3,446)	(2,258)
Other comprehensive (loss) income before reclassifications	415	(539)
Net current period other comprehensive (loss) income	415	(539)
Accumulated Other Comprehensive (Loss) Income, Net of Tax	(3,031)	(2,797)
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Accumulated Defined Benefit Plans Adjustment [Member]
Accumulated Other Comprehensive (Loss) Income [Line Items]
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest	2,105	1,825
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Accumulated Net (Loss) Gain from Designated or Qualifying Cash Flow Hedges [Member]
Accumulated Other Comprehensive (Loss) Income [Line Items]
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest	$ 387	$ (2,848)

Accumulated Other Comprehensi58

Accumulated Other Comprehensive Loss - Reclassifications (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items]
Currency exchange contracts	$ (118)	$ (1,087)
Recognition of actuarial losses	2,105	1,825
Provision (benefit) for income taxes	(4,879)	(4,252)
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Accumulated Net (Loss) Gain from Designated or Qualifying Cash Flow Hedges [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items]
Total before tax	387	(2,848)
Provision (benefit) for income taxes	0	1,082
Net of tax	387	(1,766)
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Accumulated Defined Benefit Plans Adjustment [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items]
Amortization of transition obligations	23	21
Amortization of prior service credit	(119)	(110)
Recognition of actuarial losses	2,201	1,914
Total before tax	2,105	1,825
Provision (benefit) for income taxes	(271)	(606)
Net of tax	1,834	1,219
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Forward Starting Interest Rate Swap Contracts [Member] | Accumulated Net (Loss) Gain from Designated or Qualifying Cash Flow Hedges [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items]
Forward starting interest rate swaps	545	525
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Currency Forward Contracts [Member] | Accumulated Net (Loss) Gain from Designated or Qualifying Cash Flow Hedges [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items]
Currency exchange contracts	$ (158)	$ (3,373)

Accumulated Other Comprehensi59

Accumulated Other Comprehensive Loss Other Comprehensive Income - Income Tax Allocated to Each Component (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Other Comprehensive Income - Income Tax Allocated to Each Component [Abstract]
Unrealized (loss) gain on derivatives designated and qualified as cash flow hedges, before tax	$ (126)	$ 847
Unrealized (loss) gain on derivatives designated and qualified as cash flow hedges, tax	0	(322)
Unrealized (loss) gain on derivatives designated and qualified as cash flow hedges, net of tax	(126)	525
Reclassification of unrealized loss (gain) on expired derivatives designated and qualified as cash flow hedges, before tax	387	(2,848)
Reclassification of unrealized loss (gain) on expired derivatives designated and qualified as cash flow hedges, tax	0	1,082
Reclassification of unrealized loss (gain) on expired derivatives designated and qualified as cash flow hedges, net of tax	387	(1,766)
Unrecognized net pension and other postretirement benefit gain, before tax	716	1,267
Unrecognized net pension and other postretirement benefit gain, tax	(86)	(268)
Unrecognized net pension and other postretirement benefit gain, net of tax	630	999
Reclassification of net pension and other postretirement benefit loss, before tax	2,105	1,825
Reclassification of net pension and other postretirement benefit loss, tax	(271)	(606)
Reclassification of net pension and other postretirement benefit loss, net of tax	1,834	1,219
Foreign currency translation adjustment, before tax	1,164	(18,905)
Foreign currency translation adjustment, tax	0	56
Foreign currency translation adjustment, net of tax	1,164	(18,849)
Other comprehensive (loss), before tax	4,246	(17,814)
Other comprehensive (loss), tax	(357)	(58)
Other comprehensive income (loss), net of tax	$ 3,889	$ (17,872)

Goodwill and Other Intangible60

Goodwill and Other Intangible Assets - Carrying Amount of Goodwill Attributable to Each Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Jun. 30, 2016
Goodwill [Roll Forward]
Goodwill	$ 1,082,771	$ 1,082,540
Accumulated impairment losses	(784,053)	(784,053)
Goodwill, Beginning Balance	298,487
Change in goodwill	231
Goodwill, Ending Balance	298,718
Industrial [Member]
Goodwill [Roll Forward]
Goodwill	408,915	408,705
Accumulated impairment losses	(137,204)	(137,204)
Goodwill, Beginning Balance	271,501
Change in goodwill	210
Goodwill, Ending Balance	271,711
Infrastructure [Member]
Goodwill [Roll Forward]
Goodwill	633,211	633,211
Accumulated impairment losses	(633,211)	(633,211)
Goodwill, Beginning Balance	0
Change in goodwill	0
Goodwill, Ending Balance	0
WIDIA [Member]
Goodwill [Roll Forward]
Goodwill	40,645	40,624
Accumulated impairment losses	(13,638)	$ (13,638)
Goodwill, Beginning Balance	26,986
Change in goodwill	21
Goodwill, Ending Balance	$ 27,007

Goodwill and Other Intangible61

Goodwill and Other Intangible Assets - Components of Other Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Jun. 30, 2016
The components of intangible assets
Accumulated amortization	$ (117,186)	$ (114,093)
Intangible Assets, Gross (Excluding Goodwill)	320,057	321,301
Trademarks [Member]
The components of intangible assets
Gross carrying amount, Indefinite	16,934	16,850
Contract-based [Member]
The components of intangible assets
Gross carrying amount, finite	7,063	7,152
Accumulated amortization	(6,948)	(6,886)
Technology-based and other [Member]
The components of intangible assets
Gross carrying amount, finite	46,506	47,323
Accumulated amortization	(27,253)	(27,011)
Customer-related [Member]
The components of intangible assets
Gross carrying amount, finite	205,377	205,471
Accumulated amortization	(70,120)	(66,938)
Unpatented technology [Member]
The components of intangible assets
Gross carrying amount, finite	31,820	31,837
Accumulated amortization	(4,867)	(4,614)
Trademarks [Member]
The components of intangible assets
Gross carrying amount, finite	12,357	12,668
Accumulated amortization	$ (7,998)	$ (8,644)
Minimum [Member] | Contract-based [Member]
The components of intangible assets
Useful life related to technology-based intangible assets	3 years
Minimum [Member] | Technology-based and other [Member]
The components of intangible assets
Useful life related to technology-based intangible assets	4 years
Minimum [Member] | Customer-related [Member]
The components of intangible assets
Useful life related to technology-based intangible assets	10 years
Minimum [Member] | Unpatented technology [Member]
The components of intangible assets
Useful life related to technology-based intangible assets	10 years
Minimum [Member] | Trademarks [Member]
The components of intangible assets
Useful life related to technology-based intangible assets	5 years
Maximum [Member] | Contract-based [Member]
The components of intangible assets
Useful life related to technology-based intangible assets	15 years
Maximum [Member] | Technology-based and other [Member]
The components of intangible assets
Useful life related to technology-based intangible assets	20 years
Maximum [Member] | Customer-related [Member]
The components of intangible assets
Useful life related to technology-based intangible assets	21 years
Maximum [Member] | Unpatented technology [Member]
The components of intangible assets
Useful life related to technology-based intangible assets	30 years
Maximum [Member] | Trademarks [Member]
The components of intangible assets
Useful life related to technology-based intangible assets	20 years

Goodwill and Other Intangible62

Goodwill and Other Intangible Assets (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Jun. 30, 2016
Goodwill and Other Intangible Assets (Additional Textual) [Abstract]
Goodwill	$ 298,718		$ 298,487
Amortization expense for intangible assets	4,271	$ 6,247
Infrastructure [Member]
Goodwill and Other Intangible Assets (Additional Textual) [Abstract]
Goodwill	0		0
Infrastructure [Member] | Portfolio of Businesses for Strategic Alternatives [Member]
Goodwill and Other Intangible Assets (Additional Textual) [Abstract]
Net Book Value	30,000
Industrial [Member]
Goodwill and Other Intangible Assets (Additional Textual) [Abstract]
Goodwill	271,711		271,501
WIDIA [Member]
Goodwill and Other Intangible Assets (Additional Textual) [Abstract]
Goodwill	$ 27,007		$ 26,986

Segment Data - Sales and Operat

Segment Data - Sales and Operating Income (Loss) by Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Jun. 30, 2016
Segment Reporting Information [Line Items]
Assets	$ 2,307,433		$ 2,362,783
External sales:
Total sales	477,140	$ 555,354
Operating (loss) income:
Total operating (loss) income	(9,211)	6,614
Interest expense	6,993	6,979
Other expense, net	118	1,087
Loss from continuing operations before income taxes	(16,322)	(1,452)
Industrial [Member]
Segment Reporting Information [Line Items]
Assets	1,086,170		1,019,887
External sales:
Total sales	269,043	270,191
Operating (loss) income:
Total operating (loss) income	5,556	21,459
Infrastructure [Member]
Segment Reporting Information [Line Items]
Assets	764,546		849,447
External sales:
Total sales	167,082	242,021
Operating (loss) income:
Total operating (loss) income	(7,587)	(8,428)
WIDIA [Member]
Segment Reporting Information [Line Items]
Assets	193,576		195,339
External sales:
Total sales	41,015	43,142
Operating (loss) income:
Total operating (loss) income	(5,756)	(1,709)
Corporate [Member]
Segment Reporting Information [Line Items]
Assets	263,141		$ 298,110
Operating (loss) income:
Total operating (loss) income	$ (1,424)	$ (4,708)