Kennametal (KMT) 10-Q7 Nov 172018 Q1 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Sep. 30, 2017	Oct. 31, 2017
Document Information [Line Items]
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, 2017
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		81,048,153

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Sales	$ 542,454	$ 477,140
Cost of goods sold	357,461	333,610
Gross profit	184,993	143,530
Operating expense	119,330	119,865
Restructuring and asset impairment charges (Notes 7 and 17)	5,525	28,605
Amortization of intangibles	3,661	4,271
Operating income (loss)	56,477	(9,211)
Interest expense	7,149	6,993
Other expense, net	88	118
Income (loss) before income taxes	49,240	(16,322)
Provision for income taxes	9,602	4,879
Net income (loss)	39,638	(21,201)
Less: Net income attributable to noncontrolling interests	455	455
Net income (loss) attributable to Kennametal	$ 39,183	$ (21,656)
PER SHARE DATA ATTRIBUTABLE TO KENNAMETAL SHAREHOLDERS
Basic earnings (loss) per share	$ 0.48	$ (0.27)
Diluted earnings (loss) per share	0.48	(0.27)
Dividends per share	$ 0.20	$ 0.20
Basic weighted average shares outstanding	81,071	80,054
Diluted weighted average shares outstanding	82,123	80,054

CONDENSED CONSOLIDATED STATEME3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Net income (loss)	$ 39,638	$ (21,201)
Other comprehensive income, net of tax [Abstract]
Unrealized loss on derivatives designated and qualified as cash flow hedges	(619)	(126)
Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges	396	387
Unrecognized net pension and other postretirement (loss) gain	(1,965)	630
Reclassification of net pension and other postretirement benefit loss	1,779	1,834
Foreign currency translation adjustments	19,868	1,164
Total other comprehensive income, net of tax	19,459	3,889
Total comprehensive income (loss)	59,097	(17,312)
Less: comprehensive income attributable to noncontrolling interests	739	870
Comprehensive income (loss) attributable to Kennametal Shareholders	$ 58,358	$ (18,182)

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017
Current assets:
Cash and cash equivalents	$ 110,697	$ 190,629
Accounts receivable, less allowance for doubtful accounts of $13,455 and $13,693, respectively	385,624	380,425
Inventories (Note 10)	514,720	487,681
Other current assets	64,874	55,166
Total current assets	1,075,915	1,113,901
Property, plant and equipment:
Land and buildings	351,351	350,002
Machinery and equipment	1,616,376	1,577,776
Less accumulated depreciation	(1,212,208)	(1,183,390)
Property, plant and equipment, net	755,519	744,388
Other assets:
Assets held for sale (Note 7)	7,547	6,980
Goodwill (Note 17)	304,678	301,367
Other intangible assets, less accumulated amortization of $134,941 and $129,981, respectively (Note 17)	187,740	190,527
Deferred income taxes (Note 3)	28,772	28,349
Other	39,529	29,984
Total other assets	568,266	557,207
Total assets	2,399,700	2,415,496
Current liabilities:
Current maturities of long-term debt and capital leases	96	190
Notes payable to banks	1,156	735
Accounts payable	186,342	215,722
Accrued income taxes	7,135	6,202
Accrued expenses	65,122	85,682
Other current liabilities	137,116	152,947
Total current liabilities	396,967	461,478
Long-term debt and capital leases, less current maturities (Note 11)	695,357	694,991
Deferred income taxes	15,479	14,883
Accrued pension and postretirement benefits	162,941	160,860
Accrued income taxes	2,737	2,636
Other liabilities	28,141	27,995
Total liabilities	1,301,622	1,362,843
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; 80,967 and 80,665 shares issued, respectively	101,208	100,832
Additional paid-in capital	476,690	474,547
Retained earnings	788,599	765,607
Accumulated other comprehensive loss	(304,517)	(323,692)
Total Kennametal Shareholders' Equity	1,061,980	1,017,294
Noncontrolling interests	36,098	35,359
Total equity	1,098,078	1,052,653
Total liabilities and equity	$ 2,399,700	$ 2,415,496

CONDENSED CONSOLIDATED BALANCE5

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Sep. 30, 2017	Jun. 30, 2017
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 13,455	$ 13,693
Accumulated amortization on other intangible assets	$ 134,941	$ 129,981
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	80,967	80,665

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
OPERATING ACTIVITIES
Net income (loss)	$ 39,638	$ (21,201)
Adjustments for non-cash items:
Depreciation	22,777	23,167
Amortization	3,661	4,271
Stock-based compensation expense	6,543	9,088
Restructuring and asset impairment charges (Notes 7 and 17)	3,159	(77)
Deferred income tax provision	577	456
Other	1,368	(1,312)
Changes in certain assets and liabilities:
Accounts receivable	626	23,111
Inventories	(19,704)	838
Accounts Payable and accrued liabilities (Note 3)	(62,654)	(2,145)
Accrued income taxes	398	(521)
Accrued pension and postretirement benefits	(8,060)	(5,644)
Other	(8,203)	(6,480)
Net cash flow (used for) provided by operating activities	(19,874)	23,551
INVESTING ACTIVITIES
Purchases of property, plant and equipment	(42,106)	(42,264)
Disposals of property, plant and equipment	426	1,138
Other	(67)	159
Net cash flow used for investing activities	(41,747)	(40,967)
FINANCING ACTIVITIES
Net increase (decrease) in notes payable	423	(128)
Term debt repayments	(93)	(244)
Purchase of capital stock	(55)	(63)
Dividend reinvestment and the effect of employee benefit and stock plans (Note 3)	(3,969)	(2,124)
Cash dividends paid to Shareholders	(16,191)	(15,980)
Other	(320)	(6,576)
Net cash flow used for financing activities	(20,205)	(25,115)
Effect of exchange rate changes on cash and cash equivalents	1,894	363
CASH AND CASH EQUIVALENTS
Net decrease in cash and cash equivalents	(79,932)	(42,168)
Cash and cash equivalents, beginning of period	190,629	161,579
Cash and cash equivalents, end of period	$ 110,697	$ 119,411

Organization

Organization	3 Months Ended
Organization	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION	ORGANIZATION Kennametal Inc. was incorporated in Pennsylvania in 1943 as a manufacturer of tungsten carbide metal cutting tooling. From this beginning, Kennametal Inc. and its subsidiaries (collectively, Kennametal or the Company) has grown into a global leader in the development and application of tungsten carbides, ceramics, super-hard materials and solutions used in metal cutting and mission-critical wear applications to combat extreme conditions associated with wear fatigue, corrosion and high temperatures. The Company's reputation for material technology, metal cutting application knowledge, as well as expertise and innovation in the development of custom solutions and services, contributes to its leading position in its primary markets. Our product offering includes a wide selection of standard and customized technologies for metalworking applications, such as turning, milling, hole making, tooling systems and services. End users of the Company's metalworking products include manufacturers engaged in a diverse array of industries including: the manufacturers of transportation vehicles and components, machine tools and light and heavy machinery; airframe and aerospace components; and energy-related components for the oil and gas industry, as well as power generation. In addition, we produce specialized wear components and metallurgical powders that are used for custom-engineered and challenging applications. End users of the Company's products include producers and suppliers in equipment-intensive operations such as coal mining, road construction, quarrying, oil and gas exploration, refining, production and supply.

Basis of Presentation

Basis of Presentation	3 Months Ended
Basis of Presentation	Sep. 30, 2017
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 2017 Annual Report on Form 10-K. The condensed consolidated balance sheet as of June 30, 2017 was derived from the audited balance sheet included in our 2017 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, 2017 and 2016 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 2018 is to the fiscal year ending June 30, 2018 . 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
New Accounting Standards	Sep. 30, 2017
Accounting Changes and Error Corrections [Abstract]
NEW ACCOUNTING STANDARDS	NEW ACCOUNTING STANDARDS Adopted In March 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-09, "Improvements to Employee Share-Based Payment Accounting," which is intended to simplify equity-based award accounting and presentation. The guidance impacts income tax accounting related to equity-based awards, the classification of awards as either equity or liabilities, and the classification on the statement of cash flows. We adopted this guidance July 1, 2017. The adoption of this guidance resulted in three changes. (1) The increase to deferred tax assets of $1.4 million related to cumulative excess tax benefits previously unrecognized was offset by a valuation allowance, due to the valuation allowance position of our U.S. entity. (2) Excess tax benefits, previously reported in the financing activities section of the condensed consolidated statement of cash flows, is now reported in the operating activities section, adopted on a prospective basis. Therefore, prior period statements of cash flow were not retrospectively adjusted for this provision. (3) Employee taxes paid when Kennametal withholds shares for tax withholding purposes, previously reported in the operating activities section of the condensed consolidated statement of cash flows, is now reported in the financing activities section, adopted on a retrospective basis. Therefore, prior period statements of cash flow were retrospectively adjusted for this provision: cash flow provided by operating activities and cash flow used for financing activities increased by $1.7 million for the three months ended September 30, 2016 . In July 2015, the FASB issued ASU No. 2015-11, "Simplifying the Measurement of Inventory," which requires that inventory other than LIFO be subsequently measured at the lower of cost and net realizable value, as opposed to the previous practice of lower of cost or market. Subsequent measurement is unchanged for inventory measured using LIFO. We adopted this guidance July 1, 2017. Adoption of this guidance did not have a material impact on our condensed consolidated financial statements. Issued In August 2017, the FASB issued ASU No. 2017-12, "Targeted Improvements to Accounting for Hedging Activities," which seeks to improve financial reporting and obtain closer alignment with risk management activities, in addition to simplifying the application of hedge accounting guidance and additional disclosures. This guidance is effective for us July 1, 2019. We are in the process of assessing the impact the adoption of this guidance may have on our condensed consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers: Topic 606.” This ASU replaces nearly all existing U.S. GAAP guidance on revenue recognition. The standard prescribes a five-step model for recognizing revenue, the application of which will require significant judgment. It also requires additional disclosures. We will adopt this standard on July 1, 2018. Currently, we are analyzing the standard's impact on our customer arrangements and evaluating the new standard against our historical accounting policies and practices, including the timing of revenue recognition. In particular, we are assessing the identification of performance obligations and the impact of variable consideration on the transaction price determination. We continue to evaluate the impact that the adoption of this ASU will have on the condensed consolidated financial statements, including the timing of revenue recognition associated with certain customized products primarily in the Industrial and Infrastructure segments. Further, we continue to assess certain marketing programs and expect to identify more performance obligations under ASC 606 as compared with deliverables and separate units of account previously identified, primarily in the Industrial and Widia segments. We are evaluating the timing of revenue to determine if it will occur in the same or different periods. We have not determined the complete impact of adoption on our condensed consolidated financial statements.

Supplemental Cash Flow Disclosu

Supplemental Cash Flow Disclosures	3 Months Ended
Supplemental Cash Flow Disclosures	Sep. 30, 2017
Supplemental Cash Flow Elements [Abstract]
SUPPLEMENTAL CASH FLOW DISCLOSURES	SUPPLEMENTAL CASH FLOW DISCLOSURES Three Months Ended September 30, (in thousands) 2017 2016 Cash paid during the period for: Income taxes $ 8,627 $ 4,943 Interest 7,060 6,935 Supplemental disclosure of non-cash information: Changes in accounts payable related to purchases of property, plant and equipment 11,477 15,404

Fair Value Measurements

Fair Value Measurements	3 Months Ended
Fair Value Measurements	Sep. 30, 2017
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, 2017 , the fair values of the Company’s financial assets and financial liabilities are categorized as follows: (in thousands) Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 163 $ — $ 163 Total assets at fair value $ — $ 163 $ — $ 163 Liabilities: Derivatives (1) $ — $ 1,674 $ — $ 1,674 Total liabilities at fair value $ — $ 1,674 $ — $ 1,674 As of June 30, 2017 , the fair values of the Company’s financial assets and financial liabilities are categorized as follows: (in thousands) Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 359 $ — $ 359 Total assets at fair value $ — $ 359 $ — $ 359 Liabilities: Derivatives (1) $ — $ 910 $ — $ 910 Total liabilities at fair value $ — $ 910 $ — $ 910 (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.

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities	3 Months Ended
Derivative Instruments and Hedging Activities	Sep. 30, 2017
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 $ 38 $ 1 Other current liabilities - range forward contracts (1,510 ) (671 ) Other assets - range forward contracts 15 — Other liabilities - range forward contracts — (101 ) Total derivatives designated as hedging instruments (1,457 ) (771 ) Derivatives not designated as hedging instruments Other current assets - currency forward contracts 110 358 Other current liabilities - currency forward contracts (164 ) (138 ) Total derivatives not designated as hedging instruments (54 ) 220 Total derivatives $ (1,511 ) $ (551 ) 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) 2017 2016 Other expense, net - currency forward contracts $ (116 ) $ (318 ) 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 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, 2017 and June 30, 2017 , was $75.7 million and $75.3 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, 2017 , we expect to recognize into earnings in the next 12 months $1.8 million of income on outstanding derivatives. The following represents gains and losses related to cash flow hedges: Three Months Ended September 30, (in thousands) 2017 2016 Losses recognized in other comprehensive loss, net $ (619 ) $ (125 ) Losses reclassified from accumulated other comprehensive loss into other expense, net $ 392 $ 386 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, 2017 and 2016 . NET INVESTMENT HEDGES As of September 30, 2017 , we had certain foreign currency-denominated intercompany loans payable with total aggregate principal amounts of €33.0 million as net investment hedges to hedge the foreign exchange exposure of our net investment in Euro-based subsidiaries. A loss of $1.3 million was recorded as a component of foreign currency translation adjustments in other comprehensive income (loss) for the three months ended September 30, 2017 . We did not have net investment hedges during the three months ended September 30, 2016 . As of September 30, 2017 , the foreign currency-denominated intercompany loans payable designated as net investment hedges consisted of: Instrument Notional (EUR in thousands) (2) Notional (USD in thousands) (2) Maturity Foreign currency-denominated intercompany loan payable € 26,728 $ 31,616 June 26, 2022 Foreign currency-denominated intercompany loan payable 8,653 10,235 November 20, 2018 Foreign currency-denominated intercompany loan payable 2,041 2,414 October 11, 2019 (2) Includes principal and accrued interest.

Restructuring and Related Charg

Restructuring and Related Charges	3 Months Ended
Restructuring and Related Charges	Sep. 30, 2017
Restructuring Charges [Abstract]
RESTRUCTURING AND RELATED CHARGES	RESTRUCTURING AND RELATED CHARGES In prior years, we implemented restructuring actions to streamline the Company's cost structure. The purpose of these initiatives was to improve the alignment of our cost structure with the current operating environment through headcount reductions, as well as rationalization and consolidation of certain manufacturing facilities. These restructuring actions were substantially completed in the September quarter of fiscal 2018 and were mostly cash expenditures. Total restructuring and related charges since inception of $154.5 million has been recorded for these programs through September 30, 2017 : $84.5 million in Industrial, $49.1 million in Infrastructure, $13.6 million in Widia and $7.3 million in Corporate. We recorded restructuring and related charges of $6.9 million and $31.7 million for the three months ended September 30, 2017 and 2016 , respectively. Of these amounts, restructuring charges totaled $5.5 million and $28.6 million , respectively. During the three months ended September 30, 2016 , an immaterial amount of restructuring charges was related to inventory disposals and was recorded in cost of goods sold. There were no restructuring charges related to inventory disposals and recorded in cost of good sold during the three months ended September 30, 2017 . Restructuring-related charges of $1.3 million and $2.0 million were recorded in cost of goods sold and $0.1 million and $1.1 million in operating expense for the three months ended September 30, 2017 and 2016 , respectively. As of September 30, 2017 and June 30, 2017 , property, plant, and equipment of $7.5 million and $7.0 million , respectively, for certain closed manufacturing locations that are part of our restructuring programs met held for sale criteria. We expect to sell these assets within one year from the balance sheet date. These assets are recorded at the lower of carrying amount or fair value less cost to sell. We have also ceased depreciating these assets. As of September 30, 2017 and June 30, 2017 , $19.7 million and $27.3 million of the restructuring accrual is recorded in other current liabilities, respectively, and as of September 30, 2017 and June 30, 2017 , $2.5 million is recorded in other liabilities in our condensed consolidated balance sheet. The amount attributable to each segment is as follows: (in thousands) June 30, 2017 Expense Asset Write-Down Translation Cash Expenditures September 30, 2017 Industrial Severance $ 17,639 $ 1,686 $ — $ 696 $ (7,627 ) $ 12,394 Facilities — 2,374 (2,374 ) — — — Other 94 (30 ) — 2 (22 ) 44 Total Industrial $ 17,733 $ 4,030 $ (2,374 ) $ 698 $ (7,649 ) $ 12,438 Widia Severance $ 2,434 $ 342 $ — $ 141 $ (1,545 ) $ 1,372 Facilities — 747 (747 ) — — — Other — (6 ) — — 6 — Total Widia $ 2,434 $ 1,083 $ (747 ) $ 141 $ (1,539 ) $ 1,372 Infrastructure Severance $ 9,573 $ 381 $ — $ 158 $ (1,726 ) $ 8,386 Facilities 21 38 (38 ) — (21 ) — Other 45 (7 ) — — 5 43 Total Infrastructure $ 9,639 $ 412 $ (38 ) $ 158 $ (1,742 ) $ 8,429 Total $ 29,806 $ 5,525 $ (3,159 ) $ 997 $ (10,930 ) $ 22,239

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
Stock-Based Compensation	Sep. 30, 2017
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, 2017 and 2016 . Changes in our stock options for the three months ended September 30, 2017 were as follows: Options Weighted Average Exercise Price Weighted Average Remaining Life (years) Aggregate Intrinsic value (in thousands) Options outstanding, June 30, 2017 1,726,791 $ 34.08 Granted — — Exercised (1,628 ) 26.99 Lapsed or forfeited (60,849 ) 39.40 Options outstanding, September 30, 2017 1,664,314 $ 33.89 4.5 $ 12,406 Options vested and expected to vest, September 30, 2017 1,654,835 $ 33.92 4.5 $ 12,291 Options exercisable, September 30, 2017 1,383,912 $ 35.47 3.8 $ 8,380 During the three months ended September 30, 2017 and 2016 , compensation expense related to stock options was $0.2 million and $0.5 million , respectively. As of September 30, 2017 , the total unrecognized compensation cost related to options outstanding was $0.7 million and is expected to be recognized over a weighted average period of 1.0 year . Fair value of options vested during the three months ended September 30, 2017 and 2016 was $1.6 million and $2.6 million , respectively. No tax benefits were realized resulting from stock-based compensation deductions for the three months ended September 30, 2017 and 2016 due to the valuation allowance on U.S. deferred tax assets. The amount of cash received from the exercise of capital stock options during the three months ended September 30, 2017 and 2016 was immaterial. No related tax benefit was realized for the three months ended September 30, 2017 and 2016 due to the valuation allowance on U.S. deferred tax assets. The total intrinsic value of options exercised during the three months ended September 30, 2017 and 2016 was immaterial. 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, and the Kennametal Inc. 2016 Stock and Incentive Plan, 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, 2017 and 2016 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, 2017 were as follows: Performance Vesting Stock Units Performance Vesting Weighted Average Fair Value Time Vesting Stock Units Time Vesting Weighted Average Fair Value Unvested, June 30, 2017 280,250 $ 27.62 1,153,444 $ 27.66 Granted 158,397 38.81 414,515 37.50 Vested (10,031 ) 42.83 (371,610 ) 30.81 Performance metric adjustments, net 16,766 25.84 — — Forfeited — — (10,311 ) 32.50 Unvested, September 30, 2017 445,382 $ 31.19 1,186,038 $ 30.06 During the three months ended September 30, 2017 and 2016 , compensation expense related to time vesting and performance vesting restricted stock units was $6.0 million and $8.3 million , respectively. As of September 30, 2017 , the total unrecognized compensation cost related to unvested time vesting and performance vesting restricted stock units was $27.5 million and is expected to be recognized over a weighted average period of 2.3 years.

Benefit Plans

Benefit Plans	3 Months Ended
Benefit Plans	Sep. 30, 2017
Retirement Benefits [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) 2017 2016 Service cost $ 404 $ 733 Interest cost 7,657 7,809 Expected return on plan assets (14,090 ) (14,757 ) Amortization of transition obligation 23 23 Amortization of prior service cost (credit) 173 (113 ) Recognition of actuarial losses 1,710 2,112 Net periodic pension (income) cost $ (4,123 ) $ (4,193 ) The table below summarizes the components of net periodic other postretirement benefit cost: Three Months Ended September 30, (in thousands) 2017 2016 Interest cost $ 157 $ 168 Amortization of prior service credit (6 ) (6 ) Recognition of actuarial loss 70 89 Net periodic other postretirement benefit cost $ 221 $ 251

Inventories

Inventories	3 Months Ended
Inventories	Sep. 30, 2017
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES We used the last-in, first-out (LIFO) method of valuing inventories for 41 percent and 43 percent of total inventories at September 30, 2017 and June 30, 2017 , 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, 2017 June 30, 2017 Finished goods $ 298,266 $ 290,817 Work in process and powder blends 190,638 166,857 Raw materials 86,072 87,627 Inventories at current cost 574,976 545,301 Less: LIFO valuation (60,256 ) (57,620 ) Total inventories $ 514,720 $ 487,681

Long-Term Debt

Long-Term Debt	3 Months Ended
Long-Term Debt	Sep. 30, 2017
Debt Disclosure [Abstract]
LONG-TERM DEBT	LONG-TERM DEBT Our five-year, multi-currency, revolving credit facility, as amended and restated in April 2016 (Credit Agreement) provides for 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 Credit agreement). We were in compliance with all covenants as of September 30, 2017 . We had no borrowings outstanding under the Credit Agreement as of September 30, 2017 and June 30, 2017 . 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 $707.2 million and $704.0 million at September 30, 2017 and June 30, 2017 , respectively. The Level 2 fair value is determined based on the quoted market price of this debt as of September 30, 2017 and June 30, 2017 , respectively.

Environmental Matters

Environmental Matters	3 Months Ended
Environmental Matters	Sep. 30, 2017
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 (CERCLA), 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, 2017 and June 30, 2017 , the balances of these reserves were $12.6 million and $12.4 million , respectively. These reserves represent anticipated costs associated with the remediation of these issues. The reserves we have established for environmental liabilities represent our best current estimate of the costs of addressing all identified environmental situations, based on our review of currently available evidence, and taking into consideration our prior experience in remediation and that of other companies, as well as public information released by the USEPA, other governmental agencies and by the PRP groups in which we are participating. Although the reserves currently appear to be sufficient to cover these environmental liabilities, there are uncertainties associated with environmental liabilities, and we can give no assurance that our estimate of any environmental liability will not increase or decrease in the future. The reserved and unreserved liabilities for all environmental concerns could change substantially due to factors such as the nature and extent of contamination, changes in remedial requirements, technological changes, discovery of new information, the financial strength of other PRPs, the identification of new PRPs and the involvement of and direction taken by the government on these matters. We maintain a Corporate Environmental Health and Safety (EHS) Department to monitor compliance with environmental regulations and to oversee remediation activities. In addition, we have designated EHS analysts 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
Income Taxes	Sep. 30, 2017
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The effective income tax rates for the three months ended September 30, 2017 and 2016 were 19.5 percent (provision on income) and 29.9 percent (provision on a loss) , respectively. The change was primarily driven by U.S. losses in the prior year and U.S. income in the current year, neither of which can be tax affected due to a full valuation allowance on our domestic deferred tax assets.

Earnings Per Share

Earnings Per Share	3 Months Ended
Earnings Per Share	Sep. 30, 2017
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, performance awards and restricted stock units. The difference between basic and diluted earnings per share relates solely to the effect of capital stock options, performance awards and restricted stock units. For purposes of determining the number of diluted shares outstanding, weighted average shares outstanding for basic earnings per share calculations were increased due solely to the dilutive effect of unexercised capital stock options, unvested performance awards and unvested restricted stock units by 1.1 million shares for the three months ended September 30, 2017 . Unexercised capital stock options, performance awards and restricted stock units of 0.8 million shares for the three months ended September 30, 2017 were not included in the computation of diluted earnings per share because the option exercise price was greater than the average market price, and therefore the inclusion would have been anti-dilutive. For the three months ended September 30, 2016 , the effect of unexercised capital stock options, unvested performance awards and unvested restricted stock units was anti-dilutive as a result of a net loss in the period and therefore has been excluded from diluted shares outstanding as well as from the diluted earnings per share calculation.

Equity

Equity	3 Months Ended
Equity	Sep. 30, 2017
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, 2017 and 2016 is as follows: Kennametal Shareholders’ Equity (in thousands) Capital Additional Retained Accumulated Non- Total equity Balance as of June 30, 2017 $ 100,832 $ 474,547 $ 765,607 $ (323,692 ) $ 35,359 $ 1,052,653 Net income — — 39,183 — 455 39,638 Other comprehensive income — — — 19,175 284 19,459 Dividend reinvestment 2 53 — — — 55 Capital stock issued under employee benefit and stock plans (3) 376 2,143 — — — 2,519 Purchase of capital stock (2 ) (53 ) — — — (55 ) Cash dividends paid — — (16,191 ) — — (16,191 ) Balance as of September 30, 2017 $ 101,208 $ 476,690 $ 788,599 $ (304,517 ) $ 36,098 $ 1,098,078 Kennametal Shareholders’ Equity (in thousands) Capital stock Additional paid-in capital Retained earnings Accumulated Non- controlling interests 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 (3) 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 (3) Net of restricted stock units delivered upon vesting to satisfy tax withholding requirements. 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
Accumulated Other Comprehensive Loss	Sep. 30, 2017
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, 2017 (in thousands): Attributable to Kennametal: Postretirement benefit plans Currency translation adjustment Derivatives Total Balance, June 30, 2017 $ (189,038 ) $ (126,606 ) $ (8,048 ) $ (323,692 ) Other comprehensive income before reclassifications (1,965 ) 19,584 (619 ) 17,000 Amounts reclassified from AOCL 1,779 — 396 2,175 Net current period other comprehensive income (186 ) 19,584 (223 ) 19,175 AOCL, September 30, 2017 $ (189,224 ) $ (107,022 ) $ (8,271 ) $ (304,517 ) Attributable to noncontrolling interests: Balance, June 30, 2017 $ — $ (2,164 ) $ — $ (2,164 ) Other comprehensive income before reclassifications — 284 — 284 Net current period other comprehensive income — 284 — 284 AOCL, September 30, 2017 $ — $ (1,880 ) $ — $ (1,880 ) 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 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 ) Reclassifications out of AOCL for the three months ended September 30, 2017 and 2016 consisted of the following (in thousands): Three Months Ended September 30, Details about AOCL components 2017 2016 Affected line item in the Income Statement Gains and losses on cash flow hedges: Forward starting interest rate swaps $ 566 $ 545 Interest expense Currency exchange contracts (170 ) (158 ) Other expense, net Total before tax 396 387 Tax impact — — Provision for income taxes Net of tax $ 396 $ 387 Postretirement benefit plans: Amortization of transition obligations $ 23 $ 23 See note 9 for further details Amortization of prior service credit 167 (119 ) See note 9 for further details Recognition of actuarial losses 1,780 2,201 See note 9 for further details Total before tax 1,970 2,105 Tax impact (191 ) (271 ) Provision for income taxes Net of tax $ 1,779 $ 1,834 The amount of income tax allocated to each component of other comprehensive income for the three months ended September 30, 2017 and 2016 : 2017 2016 (in thousands) Pre-tax Tax impact Net of tax Pre-tax Tax impact Net of tax Unrealized loss on derivatives designated and qualified as cash flow hedges $ (619 ) $ — $ (619 ) $ (126 ) $ — $ (126 ) Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges 396 — 396 387 — 387 Unrecognized net pension and other postretirement benefit (loss) gain (2,600 ) 635 (1,965 ) 716 (86 ) 630 Reclassification of net pension and other postretirement benefit loss 1,970 (191 ) 1,779 2,105 (271 ) 1,834 Foreign currency translation adjustments 20,445 (577 ) 19,868 1,164 — 1,164 Other comprehensive income $ 19,592 $ (133 ) $ 19,459 $ 4,246 $ (357 ) $ 3,889

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	3 Months Ended
Goodwill and Other Intangible Assets	Sep. 30, 2017
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. 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 $ 410,694 $ 41,515 $ 633,211 $ 1,085,420 Accumulated impairment losses (137,204 ) (13,638 ) (633,211 ) (784,053 ) Balance as of June 30, 2017 $ 273,490 $ 27,877 $ — $ 301,367 Activity for the three months ended September 30, 2017: Change in gross goodwill due to translation 3,176 135 — 3,311 Gross goodwill 413,870 41,650 633,211 1,088,731 Accumulated impairment losses (137,204 ) (13,638 ) (633,211 ) (784,053 ) Balance as of September 30, 2017 $ 276,666 $ 28,012 $ — $ 304,678 The components of our other intangible assets were as follows: Estimated Useful Life (in years) September 30, 2017 June 30, 2017 (in thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Contract-based 3 to 15 $ 7,071 $ (7,027 ) $ 7,064 $ (7,014 ) Technology-based and other 4 to 20 46,875 (29,911 ) 46,461 (29,061 ) Customer-related 10 to 21 206,552 (77,963 ) 205,502 (74,669 ) Unpatented technology 10 to 30 31,833 (11,235 ) 31,754 (10,589 ) Trademarks 5 to 20 12,492 (8,805 ) 12,401 (8,648 ) Trademarks Indefinite 17,858 — 17,326 — Total $ 322,681 $ (134,941 ) $ 320,508 $ (129,981 ) During the three months ended September 30, 2017 and 2016 , we recorded amortization expense of $3.7 million and $4.3 million , respectively, related to our other intangible assets.

Segment Data

Segment Data	3 Months Ended
Segment Data	Sep. 30, 2017
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, aerospace and defense market sectors, as well as the machine tool industry, delivering high performance metalworking tools for specified purposes. Our customers in these end markets use our products and services in the manufacture of engines, airframes, automobiles, trucks, ships and other various types of industrial equipment. The technology and customization requirements we provide vary by customer, application and industry. Industrial goes to market under the Kennametal® brand through its direct sales force, a network of independent and national chain distributors, integrated supplier channels and via the Internet. Application engineers and technicians are critical to the sales process and directly assist our customers with specified product design, selection, application and support. The Widia segment offers a focused assortment of standard custom metal cutting solutions to general engineering, aerospace, energy and transportation customers. We serve our customers primarily through a network of value added resellers, integrated supplier channels and via the Internet. Widia markets its products under the WIDIA®, WIDIA Hanita® and WIDIA GTD® brands. The Infrastructure segment generally serves customers that operate in the energy and earthworks market sectors that support primary industries such as oil and gas, power generation and chemicals; underground, surface and hard-rock mining; highway construction and road maintenance; and process industries such as food and feed. Our success is determined by our ability to gain an in-depth understanding of our customers’ engineering and development needs, to provide complete system solutions and high-performance capabilities to optimize and add value to their operations. Infrastructure markets its products primarily under the Kennametal® brand and sells through a direct sales force as well as distributors. Our sales and operating income (loss) by segment are as follows: Three Months Ended September 30, (in thousands) 2017 2016 Sales: Industrial $ 297,464 $ 269,043 Widia 45,243 41,015 Infrastructure 199,747 167,082 Total sales $ 542,454 $ 477,140 Operating income (loss): Industrial $ 34,812 $ 5,556 Widia 62 (5,756 ) Infrastructure 22,069 (7,587 ) Corporate (466 ) (1,424 ) Total operating income (loss) 56,477 (9,211 ) Interest expense 7,149 6,993 Other expense, net 88 118 Income (loss) from continuing operations before income taxes $ 49,240 $ (16,322 )

Supplemental Cash Flow Disclo25

Supplemental Cash Flow Disclosures (Tables)	3 Months Ended
Supplemental Cash Flow Disclosures (Tables)	Sep. 30, 2017
Supplemental Cash Flow Elements [Abstract]
Supplemental Cash Flow Disclosures	Three Months Ended September 30, (in thousands) 2017 2016 Cash paid during the period for: Income taxes $ 8,627 $ 4,943 Interest 7,060 6,935 Supplemental disclosure of non-cash information: Changes in accounts payable related to purchases of property, plant and equipment 11,477 15,404

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
Fair Value Measurements (Tables)	Sep. 30, 2017
Fair Value Disclosures [Abstract]
Financial instruments at fair value on recurring basis	As of September 30, 2017 , the fair values of the Company’s financial assets and financial liabilities are categorized as follows: (in thousands) Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 163 $ — $ 163 Total assets at fair value $ — $ 163 $ — $ 163 Liabilities: Derivatives (1) $ — $ 1,674 $ — $ 1,674 Total liabilities at fair value $ — $ 1,674 $ — $ 1,674 As of June 30, 2017 , the fair values of the Company’s financial assets and financial liabilities are categorized as follows: (in thousands) Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 359 $ — $ 359 Total assets at fair value $ — $ 359 $ — $ 359 Liabilities: Derivatives (1) $ — $ 910 $ — $ 910 Total liabilities at fair value $ — $ 910 $ — $ 910 (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
Derivative Instruments and Hedging Activities (Tables)	Sep. 30, 2017
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 $ 38 $ 1 Other current liabilities - range forward contracts (1,510 ) (671 ) Other assets - range forward contracts 15 — Other liabilities - range forward contracts — (101 ) Total derivatives designated as hedging instruments (1,457 ) (771 ) Derivatives not designated as hedging instruments Other current assets - currency forward contracts 110 358 Other current liabilities - currency forward contracts (164 ) (138 ) Total derivatives not designated as hedging instruments (54 ) 220 Total derivatives $ (1,511 ) $ (551 )
(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) 2017 2016 Other expense, net - currency forward contracts $ (116 ) $ (318 )
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) 2017 2016 Losses recognized in other comprehensive loss, net $ (619 ) $ (125 ) Losses reclassified from accumulated other comprehensive loss into other expense, net $ 392 $ 386
Net investment hedges	As of September 30, 2017 , the foreign currency-denominated intercompany loans payable designated as net investment hedges consisted of: Instrument Notional (EUR in thousands) (2) Notional (USD in thousands) (2) Maturity Foreign currency-denominated intercompany loan payable € 26,728 $ 31,616 June 26, 2022 Foreign currency-denominated intercompany loan payable 8,653 10,235 November 20, 2018 Foreign currency-denominated intercompany loan payable 2,041 2,414 October 11, 2019 (2) Includes principal and accrued interest.

Restructuring (Tables)

Restructuring (Tables)	3 Months Ended
Restructuring (Tables)	Sep. 30, 2017
Restructuring Cost and Reserve [Line Items]
Schedule of Restructuring Reserve by Type of Cost	As of September 30, 2017 and June 30, 2017 , $19.7 million and $27.3 million of the restructuring accrual is recorded in other current liabilities, respectively, and as of September 30, 2017 and June 30, 2017 , $2.5 million is recorded in other liabilities in our condensed consolidated balance sheet. The amount attributable to each segment is as follows: (in thousands) June 30, 2017 Expense Asset Write-Down Translation Cash Expenditures September 30, 2017 Industrial Severance $ 17,639 $ 1,686 $ — $ 696 $ (7,627 ) $ 12,394 Facilities — 2,374 (2,374 ) — — — Other 94 (30 ) — 2 (22 ) 44 Total Industrial $ 17,733 $ 4,030 $ (2,374 ) $ 698 $ (7,649 ) $ 12,438 Widia Severance $ 2,434 $ 342 $ — $ 141 $ (1,545 ) $ 1,372 Facilities — 747 (747 ) — — — Other — (6 ) — — 6 — Total Widia $ 2,434 $ 1,083 $ (747 ) $ 141 $ (1,539 ) $ 1,372 Infrastructure Severance $ 9,573 $ 381 $ — $ 158 $ (1,726 ) $ 8,386 Facilities 21 38 (38 ) — (21 ) — Other 45 (7 ) — — 5 43 Total Infrastructure $ 9,639 $ 412 $ (38 ) $ 158 $ (1,742 ) $ 8,429 Total $ 29,806 $ 5,525 $ (3,159 ) $ 997 $ (10,930 ) $ 22,239

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
Stock-Based Compensation (Tables)	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Changes in stock options	Changes in our stock options for the three months ended September 30, 2017 were as follows: Options Weighted Average Exercise Price Weighted Average Remaining Life (years) Aggregate Intrinsic value (in thousands) Options outstanding, June 30, 2017 1,726,791 $ 34.08 Granted — — Exercised (1,628 ) 26.99 Lapsed or forfeited (60,849 ) 39.40 Options outstanding, September 30, 2017 1,664,314 $ 33.89 4.5 $ 12,406 Options vested and expected to vest, September 30, 2017 1,654,835 $ 33.92 4.5 $ 12,291 Options exercisable, September 30, 2017 1,383,912 $ 35.47 3.8 $ 8,380
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, 2017 were as follows: Performance Vesting Stock Units Performance Vesting Weighted Average Fair Value Time Vesting Stock Units Time Vesting Weighted Average Fair Value Unvested, June 30, 2017 280,250 $ 27.62 1,153,444 $ 27.66 Granted 158,397 38.81 414,515 37.50 Vested (10,031 ) 42.83 (371,610 ) 30.81 Performance metric adjustments, net 16,766 25.84 — — Forfeited — — (10,311 ) 32.50 Unvested, September 30, 2017 445,382 $ 31.19 1,186,038 $ 30.06

Benefit Plans (Tables)

Benefit Plans (Tables)	3 Months Ended
Benefit Plans (Tables)	Sep. 30, 2017
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) 2017 2016 Service cost $ 404 $ 733 Interest cost 7,657 7,809 Expected return on plan assets (14,090 ) (14,757 ) Amortization of transition obligation 23 23 Amortization of prior service cost (credit) 173 (113 ) Recognition of actuarial losses 1,710 2,112 Net periodic pension (income) cost $ (4,123 ) $ (4,193 )
Other Postretirement Benefits 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) 2017 2016 Interest cost $ 157 $ 168 Amortization of prior service credit (6 ) (6 ) Recognition of actuarial loss 70 89 Net periodic other postretirement benefit cost $ 221 $ 251

Inventories (Tables)

Inventories (Tables)	3 Months Ended
Inventories (Tables)	Sep. 30, 2017
Inventory Disclosure [Abstract]
Inventories	Inventories consisted of the following: (in thousands) September 30, 2017 June 30, 2017 Finished goods $ 298,266 $ 290,817 Work in process and powder blends 190,638 166,857 Raw materials 86,072 87,627 Inventories at current cost 574,976 545,301 Less: LIFO valuation (60,256 ) (57,620 ) Total inventories $ 514,720 $ 487,681

Equity (Tables)

Equity (Tables)	3 Months Ended
Equity (Tables)	Sep. 30, 2017
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, 2017 and 2016 is as follows: Kennametal Shareholders’ Equity (in thousands) Capital Additional Retained Accumulated Non- Total equity Balance as of June 30, 2017 $ 100,832 $ 474,547 $ 765,607 $ (323,692 ) $ 35,359 $ 1,052,653 Net income — — 39,183 — 455 39,638 Other comprehensive income — — — 19,175 284 19,459 Dividend reinvestment 2 53 — — — 55 Capital stock issued under employee benefit and stock plans (3) 376 2,143 — — — 2,519 Purchase of capital stock (2 ) (53 ) — — — (55 ) Cash dividends paid — — (16,191 ) — — (16,191 ) Balance as of September 30, 2017 $ 101,208 $ 476,690 $ 788,599 $ (304,517 ) $ 36,098 $ 1,098,078 Kennametal Shareholders’ Equity (in thousands) Capital stock Additional paid-in capital Retained earnings Accumulated Non- controlling interests 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 (3) 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

Accumulated Other Comprehensi33

Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
Accumulated Other Comprehensive Loss (Tables)	Sep. 30, 2017
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, 2017 (in thousands): Attributable to Kennametal: Postretirement benefit plans Currency translation adjustment Derivatives Total Balance, June 30, 2017 $ (189,038 ) $ (126,606 ) $ (8,048 ) $ (323,692 ) Other comprehensive income before reclassifications (1,965 ) 19,584 (619 ) 17,000 Amounts reclassified from AOCL 1,779 — 396 2,175 Net current period other comprehensive income (186 ) 19,584 (223 ) 19,175 AOCL, September 30, 2017 $ (189,224 ) $ (107,022 ) $ (8,271 ) $ (304,517 ) Attributable to noncontrolling interests: Balance, June 30, 2017 $ — $ (2,164 ) $ — $ (2,164 ) Other comprehensive income before reclassifications — 284 — 284 Net current period other comprehensive income — 284 — 284 AOCL, September 30, 2017 $ — $ (1,880 ) $ — $ (1,880 ) 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 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 )
Reclassification out of Accumulated Other Comprehensive Loss	Reclassifications out of AOCL for the three months ended September 30, 2017 and 2016 consisted of the following (in thousands): Three Months Ended September 30, Details about AOCL components 2017 2016 Affected line item in the Income Statement Gains and losses on cash flow hedges: Forward starting interest rate swaps $ 566 $ 545 Interest expense Currency exchange contracts (170 ) (158 ) Other expense, net Total before tax 396 387 Tax impact — — Provision for income taxes Net of tax $ 396 $ 387 Postretirement benefit plans: Amortization of transition obligations $ 23 $ 23 See note 9 for further details Amortization of prior service credit 167 (119 ) See note 9 for further details Recognition of actuarial losses 1,780 2,201 See note 9 for further details Total before tax 1,970 2,105 Tax impact (191 ) (271 ) Provision for income taxes Net of tax $ 1,779 $ 1,834
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 for the three months ended September 30, 2017 and 2016 : 2017 2016 (in thousands) Pre-tax Tax impact Net of tax Pre-tax Tax impact Net of tax Unrealized loss on derivatives designated and qualified as cash flow hedges $ (619 ) $ — $ (619 ) $ (126 ) $ — $ (126 ) Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges 396 — 396 387 — 387 Unrecognized net pension and other postretirement benefit (loss) gain (2,600 ) 635 (1,965 ) 716 (86 ) 630 Reclassification of net pension and other postretirement benefit loss 1,970 (191 ) 1,779 2,105 (271 ) 1,834 Foreign currency translation adjustments 20,445 (577 ) 19,868 1,164 — 1,164 Other comprehensive income $ 19,592 $ (133 ) $ 19,459 $ 4,246 $ (357 ) $ 3,889

Goodwill and Other Intangible34

Goodwill and Other Intangible Assets (Tables)	3 Months Ended
Goodwill and Other Intangible Assets (Tables)	Sep. 30, 2017
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 $ 410,694 $ 41,515 $ 633,211 $ 1,085,420 Accumulated impairment losses (137,204 ) (13,638 ) (633,211 ) (784,053 ) Balance as of June 30, 2017 $ 273,490 $ 27,877 $ — $ 301,367 Activity for the three months ended September 30, 2017: Change in gross goodwill due to translation 3,176 135 — 3,311 Gross goodwill 413,870 41,650 633,211 1,088,731 Accumulated impairment losses (137,204 ) (13,638 ) (633,211 ) (784,053 ) Balance as of September 30, 2017 $ 276,666 $ 28,012 $ — $ 304,678
The components of intangible assets	The components of our other intangible assets were as follows: Estimated Useful Life (in years) September 30, 2017 June 30, 2017 (in thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Contract-based 3 to 15 $ 7,071 $ (7,027 ) $ 7,064 $ (7,014 ) Technology-based and other 4 to 20 46,875 (29,911 ) 46,461 (29,061 ) Customer-related 10 to 21 206,552 (77,963 ) 205,502 (74,669 ) Unpatented technology 10 to 30 31,833 (11,235 ) 31,754 (10,589 ) Trademarks 5 to 20 12,492 (8,805 ) 12,401 (8,648 ) Trademarks Indefinite 17,858 — 17,326 — Total $ 322,681 $ (134,941 ) $ 320,508 $ (129,981 )

Segment Data (Tables)

Segment Data (Tables)	3 Months Ended
Segment Data (Tables)	Sep. 30, 2017
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) 2017 2016 Sales: Industrial $ 297,464 $ 269,043 Widia 45,243 41,015 Infrastructure 199,747 167,082 Total sales $ 542,454 $ 477,140 Operating income (loss): Industrial $ 34,812 $ 5,556 Widia 62 (5,756 ) Infrastructure 22,069 (7,587 ) Corporate (466 ) (1,424 ) Total operating income (loss) 56,477 (9,211 ) Interest expense 7,149 6,993 Other expense, net 88 118 Income (loss) from continuing operations before income taxes $ 49,240 $ (16,322 )

New Accounting Standards New Ac

New Accounting Standards New Accounting Standards - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
New Accounting Standards [Abstract]
Excess Tax Benefit from Share-based Compensation, Financing Activities	$ 1.4
Payments Related to Tax Withholding for Share-based Compensation		$ 1.7

Supplemental Cash Flow Disclo37

Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash paid during the period for:
Interest	$ 7,060	$ 6,935
Income taxes	8,627	4,943
Change in accounts payable related to property, plant, and equipment	$ 11,477	$ 15,404

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives Assets	$ 163	$ 359
Total assets at fair value	163	359
Derivatives Liabilities	1,674	910
Total liabilities at fair value	1,674	910
Fair Value, Measurements, Recurring [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives Assets	163	359
Total assets at fair value	163	359
Derivatives Liabilities	1,674	910
Total liabilities at fair value	1,674	910
Fair Value, Measurements, Recurring [Member] \| Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities at fair value	$ 0	$ 0

Derivative Instruments and He39

Derivative Instruments and Hedging Activities - Fair Value of Derivatives Designated and Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017
Fair value of derivatives
Derivative, Fair Value, Net	$ (1,511)	$ (551)
Designated as Hedging Instrument [Member]
Fair value of derivatives
Derivative, Fair Value, Net	(1,457)	(771)
Not Designated as Hedging Instrument [Member]
Fair value of derivatives
Derivative, Fair Value, Net	(54)	220
Range Forward Contracts [Member] \| Designated as Hedging Instrument [Member] \| Other Current Assets [Member]
Fair value of derivatives
Derivative assets designated as hedging instruments	38	1
Range Forward Contracts [Member] \| Designated as Hedging Instrument [Member] \| Other Current Liabilities [Member]
Fair value of derivatives
Derivative liabilities designated as hedging instruments	(1,510)	(671)
Range Forward Contracts [Member] \| Designated as Hedging Instrument [Member] \| Other Assets [Member]
Fair value of derivatives
Derivative assets designated as hedging instruments	15	0
Range Forward Contracts [Member] \| Designated as Hedging Instrument [Member] \| Other Liabilities [Member]
Fair value of derivatives
Derivative liabilities designated as hedging instruments	0	(101)
Currency Forward Contracts [Member] \| Not Designated as Hedging Instrument [Member] \| Other Current Assets [Member]
Fair value of derivatives
Derivative assets designated as hedging instruments	110	358
Currency Forward Contracts [Member] \| Not Designated as Hedging Instrument [Member] \| Other Current Liabilities [Member]
Fair value of derivatives
Derivative liabilities designated as hedging instruments	$ (164)	$ (138)

Derivative Instruments and He40

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, 2017	Sep. 30, 2016
Net Investment Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Loss on Derivative Used in Net Investment Hedge, Net of Tax	$ 1,300
Currency Forward Contracts [Member] \| Other Expense Income Net [Member] \| Not Designated as Hedging Instrument [Member]
Derivative Instruments, (Gain) Loss Recognized in Income, Net
Other expense, net - currency forward contracts	(116)	$ (318)
Range Forward Contracts [Member] \| Cash flow hedging [Member]
(Gains) losses related to cash flow hedges
Losses recognized in other comprehensive loss, net	(619)	(125)
Losses reclassified from accumulated other comprehensive loss into other expense, net	$ 392	$ 386

Derivative Instruments and He41

Derivative Instruments and Hedging Activities (Details Textual) € in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2017EUR (€)	Sep. 30, 2017USD ($)	Jun. 30, 2017USD ($)
Derivative Instruments and Hedging Activities (Textual) [Abstract]
Recognize loss on outstanding derivatives in the next 12 months			$ 1,800
Gains or losses recognized in earnings due to ineffectiveness and excluded from effectiveness testing	$ 0
Cash Flow Hedging [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount			75,700	$ 75,300
Net Investment Hedging [Member]
Additional Derivative Instruments and Hedging Activities (Textual) [Abstract]
Derivative, Amount of Hedged Item \| €		€ 33,000
Net Investment Hedge Maturing on June 26, 2022 [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount		26,728	31,616
Net Investment Hedge Maturing on November 20, 2018 [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount		8,653	10,235
Net Investment Hedge Maturing on October 11, 2019 [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount		€ 2,041	$ 2,414

Restructuring and Related Cha42

Restructuring and Related Charges - Restructuring Accrual (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Restructuring Reserve [Abstract]
Beginning Balance	$ 29,806
Restructuring Charges	5,525	$ 28,600
Asset Write-Down	(3,159)
Translation	997
Cash Expenditures	(10,930)
Ending Balance	22,239
Industrial [Member]
Restructuring Reserve [Abstract]
Beginning Balance	17,733
Restructuring Charges	4,030
Asset Write-Down	(2,374)
Translation	698
Cash Expenditures	(7,649)
Ending Balance	12,438
Industrial [Member] \| Severance [Member]
Restructuring Reserve [Abstract]
Beginning Balance	17,639
Restructuring Charges	1,686
Asset Write-Down	0
Translation	696
Cash Expenditures	(7,627)
Ending Balance	12,394
Industrial [Member] \| Facilities [Member]
Restructuring Reserve [Abstract]
Beginning Balance	0
Restructuring Charges	2,374
Asset Write-Down	(2,374)
Translation	0
Cash Expenditures	0
Ending Balance	0
Industrial [Member] \| Other Restructuring [Member]
Restructuring Reserve [Abstract]
Beginning Balance	94
Restructuring Charges	(30)
Asset Write-Down	0
Translation	2
Cash Expenditures	(22)
Ending Balance	44
WIDIA [Member]
Restructuring Reserve [Abstract]
Beginning Balance	2,434
Restructuring Charges	1,083
Asset Write-Down	(747)
Translation	141
Cash Expenditures	(1,539)
Ending Balance	1,372
WIDIA [Member] \| Severance [Member]
Restructuring Reserve [Abstract]
Beginning Balance	2,434
Restructuring Charges	342
Asset Write-Down	0
Translation	141
Cash Expenditures	(1,545)
Ending Balance	1,372
WIDIA [Member] \| Facilities [Member]
Restructuring Reserve [Abstract]
Beginning Balance	0
Restructuring Charges	747
Asset Write-Down	(747)
Translation	0
Cash Expenditures	0
Ending Balance	0
WIDIA [Member] \| Other Restructuring [Member]
Restructuring Reserve [Abstract]
Beginning Balance	0
Restructuring Charges	(6)
Asset Write-Down	0
Translation	0
Cash Expenditures	6
Ending Balance	0
Infrastructure [Member]
Restructuring Reserve [Abstract]
Beginning Balance	9,639
Restructuring Charges	412
Asset Write-Down	(38)
Translation	158
Cash Expenditures	(1,742)
Ending Balance	8,429
Infrastructure [Member] \| Severance [Member]
Restructuring Reserve [Abstract]
Beginning Balance	9,573
Restructuring Charges	381
Asset Write-Down	0
Translation	158
Cash Expenditures	(1,726)
Ending Balance	8,386
Infrastructure [Member] \| Facilities [Member]
Restructuring Reserve [Abstract]
Beginning Balance	21
Restructuring Charges	38
Asset Write-Down	(38)
Translation	0
Cash Expenditures	(21)
Ending Balance	0
Infrastructure [Member] \| Other Restructuring [Member]
Restructuring Reserve [Abstract]
Beginning Balance	45
Restructuring Charges	(7)
Asset Write-Down	0
Translation	0
Cash Expenditures	5
Ending Balance	$ 43

Restructuring and Related Cha43

Restructuring and Related Charges - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Jun. 30, 2017
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Incurred Cost	$ 6,900	$ 31,700
Restructuring Charges	5,525	28,600
Restructuring and Related Cost, Cost Incurred to Date	154,500
Restructuring Reserve, Current	19,700		$ 27,300
Restructuring Reserve, Noncurrent	2,500
Industrial [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	4,030
Restructuring and Related Cost, Cost Incurred to Date	84,500
Infrastructure [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	412
Restructuring and Related Cost, Cost Incurred to Date	49,100
WIDIA [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	1,083
Restructuring and Related Cost, Cost Incurred to Date	13,600
Corporate Segment [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Cost Incurred to Date	7,300
Cost of Sales [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Related Charges Recorded in Cost of Goods Sold	1,300	2,000
Operating Expense [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Related Charges Recorded in Cost of Goods Sold	100	$ 1,100
Other Restructuring [Member] \| Industrial [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	(30)
Other Restructuring [Member] \| Infrastructure [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	(7)
Other Restructuring [Member] \| WIDIA [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	$ (6)

Stock-Based Compensation - Chan

Stock-Based Compensation - Changes in Stock Options (Details)	3 Months Ended
	Sep. 30, 2017USD ($)$ / sharesshares
Changes in stock options
Options outstanding, June 30, 2017 \| shares	1,726,791
Options, Granted \| shares	0
Options, Exercised \| shares	(1,628)
Options, Lapsed or Forfeited \| shares	(60,849)
Options outstanding, September 30, 2017 \| shares	1,664,314
Options vested and expected to vest, September 30, 2017 \| shares	1,654,835
Options exercisable, September 30, 2017 \| shares	1,383,912
Weighted Average Exercise Price, Options outstanding, June 30, 2017 \| $ / shares	$ 34.08
Weighted Average Exercise Price, Granted \| $ / shares	0
Weighted Average Exercise Price, Exercised \| $ / shares	26.99
Weighted Average Exercise Price, Lapsed or Forfeited \| $ / shares	39.40
Weighted Average Exercise Price, Options outstanding, September 30, 2017 \| $ / shares	33.89
Weighted Average Exercise Price, Option vested and expected to vest, September 30, 2017 \| $ / shares	33.92
Weighted Average Exercise Price, Options exercisable, September 30, 2017 \| $ / shares	$ 35.47
Weighted Average Remaining Life, Options outstanding, September 30, 2017	4 years 6 months 6 days
Weighted Average Remaining Life, Options vested and expected to vest, September 30, 2017	4 years 6 months 6 days
Weighted Average Remaining Life, Options exercisable, September 30, 2017	3 years 9 months 9 days
Aggregate Intrinsic value, Options outstanding, September 30, 2017 \| $	$ 12,406,000
Aggregate Intrinsic Value, Options vested and expected to vest, September 30, 2017 \| $	12,291,000
Aggregate Intrinsic Value, Options exercisable, September 30, 2017 \| $	$ 8,380,000

Stock-Based Compensation - Ch45

Stock-Based Compensation - Changes in Restricted Stock Units (Details)	3 Months Ended
	Sep. 30, 2017$ / sharesshares
Restricted Stock Units Performance Vesting [Member]
Changes in restricted stock awards
Unvested restricted stock awards, June 30, 2017, Shares \| shares	280,250
Granted, Shares \| shares	158,397
Vested, Shares \| shares	(10,031)
Performance metric adjustments, net, Shares \| shares	16,766
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, 2017 \| shares	445,382
Weighted Average Fair Value, Unvested restricted stock awards, June 30, 2017 \| $ / shares	$ 27.62
Weighted Average Fair Value, Granted \| $ / shares	38.81
Weighted Average Fair Value, Vested \| $ / shares	42.83
Weighted Average Fair Value, Performance Metric Not Achieved \| $ / shares	25.84
Weighted Average Fair Value, Unvested restricted stock awards, September 30, 2017 \| $ / shares	$ 31.19
Restricted Stock Units - Time Vesting [Member]
Changes in restricted stock awards
Unvested restricted stock awards, June 30, 2017, Shares \| shares	1,153,444
Granted, Shares \| shares	414,515
Vested, Shares \| shares	(371,610)
Performance metric adjustments, net, Shares \| shares	0
Forfeited, Shares \| shares	(10,311)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value \| $ / shares	$ 32.50
Unvested restricted stock awards, September 30, 2017 \| shares	1,186,038
Weighted Average Fair Value, Unvested restricted stock awards, June 30, 2017 \| $ / shares	$ 27.66
Weighted Average Fair Value, Granted \| $ / shares	37.50
Weighted Average Fair Value, Vested \| $ / shares	30.81
Weighted Average Fair Value, Performance Metric Not Achieved \| $ / shares	0
Weighted Average Fair Value, Unvested restricted stock awards, September 30, 2017 \| $ / shares	$ 30.06

Stock-Based Compensation (Detai

Stock-Based Compensation (Details Textual) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
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 (Textual) [Abstract]
Tax benefits resulting from stock-based compensation deductions (less than) in excess of amounts reported for financial reporting purposes	$ (1.4)
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	$ 0.2	$ 0.5
Unrecognized compensation cost	$ 0.7
Unrecognized compensation costs, weighted average period	1 year
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value	$ 1.6	2.6
Tax benefits resulting from stock-based compensation deductions (less than) in excess of amounts reported for financial reporting purposes	0
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	6	$ 8.3
Unrecognized compensation cost	$ 27.5
Unrecognized compensation costs, weighted average period	2 years 3 months 3 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, 2017	Sep. 30, 2016
Net periodic pension income
Service cost	$ 404	$ 733
Interest cost	7,657	7,809
Expected return on plan assets	(14,090)	(14,757)
Amortization of transition obligation	23	23
Amortization of prior service cost (credit)	173	(113)
Recognition of actuarial losses	1,710	2,112
Net periodic pension income	$ (4,123)	$ (4,193)

Benefit Plans - Components of48

Benefit Plans - Components of Net Periodic Other Postretirement Benefit Cost (Details) - Other postretirement benefit plans [Member] - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Net periodic other postretirement benefit costs
Interest cost	$ 157	$ 168
Amortization of prior service credit	(6)	(6)
Recognition of actuarial loss	70	89
Net periodic other postretirement benefit cost	$ 221	$ 251

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017
Inventories
Finished goods	$ 298,266	$ 290,817
Work in process and powder blends	190,638	166,857
Raw materials	86,072	87,627
Inventories at current cost	574,976	545,301
Less: LIFO valuation	(60,256)	(57,620)
Total inventories	$ 514,720	$ 487,681
Inventories (Textual) [Abstract]
Percentage of inventories valued by using LIFO method	41.00%	43.00%

Long-Term Debt (Details)

Long-Term Debt (Details) - USD ($) $ in Millions	Sep. 30, 2017	Jun. 30, 2017	Apr. 15, 2016
Long-Term Debt (Additional Textual) [Abstract]
Fixed rate at fair market value	$ 707.2	$ 704
2016 Credit Agreement [Member]
Long-Term Debt (Textual) [Abstract]
Borrowing outstanding under 2016 Credit Agreement	$ 0
Line of Credit Facility, Maximum Borrowing Capacity			$ 600

Environmental Matters (Details)

Environmental Matters (Details) - USD ($) $ in Millions	Sep. 30, 2017	Jun. 30, 2017
Environmental Remediation Obligations [Abstract]
Reserves for Environmental Costs	$ 12.6	$ 12.4

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
Income Taxes (Details)	Sep. 30, 2017	Sep. 30, 2016
Income Tax (Textual) [Abstract]
Effective tax rate	19.50%	(29.90%)

Earnings Per Shares (Details)

Earnings Per Shares (Details) shares in Millions	3 Months Ended
Earnings Per Shares (Details) shares in Millions	Sep. 30, 2017shares
Earnings Per Share (Textual) [Abstract]
Increase in weighted average shares due to dilutive effect of unexercised capital stock options and unvested restricted stock units	1.1
Unexercised capital stock options and restricted stock units excluded from computation of diluted EPS	0.8

Equity (Details)

Equity (Details) - USD ($) $ in Thousands	3 Months Ended
Equity (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Sep. 30, 2016
Beginning Balance	$ 1,052,653	$ 995,801
Net income (loss)	39,638	(21,201)
Other comprehensive income (loss)	19,459	3,889
Dividend reinvestment	55	63
Capital stock issued under employee benefit and stock plans	2,519	6,899
Purchase of capital stock	(55)	(63)
Cash dividends paid	(16,191)	(15,980)
Ending Balance	1,098,078	969,408
Capital stock [Member]
Beginning Balance	100,832	99,618
Dividend reinvestment	2	3
Capital stock issued under employee benefit and stock plans	376	290
Purchase of capital stock	(2)	(3)
Ending Balance	101,208	99,908
Additional paid-in capital [Member]
Beginning Balance	474,547	436,617
Dividend reinvestment	53	60
Capital stock issued under employee benefit and stock plans	2,143	6,609
Purchase of capital stock	(53)	(60)
Ending Balance	476,690	443,226
Retained earnings [Member]
Beginning Balance	765,607	780,597
Net income (loss)	39,183	(21,656)
Cash dividends paid	(16,191)	(15,980)
Ending Balance	788,599	742,961
Accumulated other comprehensive (loss) income [Member]
Beginning Balance	(323,692)	(352,509)
Other comprehensive income (loss)	19,175	3,474
Ending Balance	(304,517)	(349,035)
Non-controlling interest [Member]
Beginning Balance	35,359	31,478
Net income (loss)	455	455
Other comprehensive income (loss)	284	415
Cash dividends paid	0	0
Ending Balance	$ 36,098	$ 32,348

Accumulated Other Comprehensi55

Accumulated Other Comprehensive Loss - Components of and Changes in Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Accumulated Other Comprehensive (Loss) Income [Line Items]
Accumulated Other Comprehensive Loss, Net of Tax	$ (323,692)	$ (352,509)
Other comprehensive income before reclassifications	17,000	1,253
Amounts reclassified from accumulated other comprehensive loss	2,175	2,221
Net current period other comprehensive income	19,175	3,474
Accumulated Other Comprehensive Loss, Net of Tax	(304,517)	(349,035)
Accumulated Defined Benefit Plans Adjustment [Member]
Accumulated Other Comprehensive (Loss) Income [Line Items]
Accumulated Other Comprehensive Loss, Net of Tax	(189,038)	(212,163)
Other comprehensive income before reclassifications	(1,965)	630
Amounts reclassified from accumulated other comprehensive loss	1,779	1,834
Net current period other comprehensive income	(186)	2,464
Accumulated Other Comprehensive Loss, Net of Tax	(189,224)	(209,699)
Accumulated Currency Translation Adjustment [Member]
Accumulated Other Comprehensive (Loss) Income [Line Items]
Accumulated Other Comprehensive Loss, Net of Tax	(126,606)	(131,212)
Other comprehensive income before reclassifications	19,584	749
Amounts reclassified from accumulated other comprehensive loss	0	0
Net current period other comprehensive income	19,584	749
Accumulated Other Comprehensive Loss, Net of Tax	(107,022)	(130,463)
Accumulated Net (Loss) Gain from Designated or Qualifying Cash Flow Hedges [Member]
Accumulated Other Comprehensive (Loss) Income [Line Items]
Accumulated Other Comprehensive Loss, Net of Tax	(8,048)	(9,134)
Other comprehensive income before reclassifications	(619)	(126)
Amounts reclassified from accumulated other comprehensive loss	396	387
Net current period other comprehensive income	(223)	261
Accumulated Other Comprehensive Loss, Net of Tax	(8,271)	(8,873)
Noncontrolling Interest [Member]
Accumulated Other Comprehensive (Loss) Income [Line Items]
Accumulated Other Comprehensive Loss, Net of Tax	(2,164)	(3,446)
Other comprehensive income before reclassifications	284	415
Net current period other comprehensive income	284	415
Accumulated Other Comprehensive Loss, Net of Tax	(1,880)	(3,031)
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	(1,970)	(2,105)
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	$ 396	$ 387

Accumulated Other Comprehensi56

Accumulated Other Comprehensive Loss - Reclassifications (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items]
Currency exchange contracts	$ (88)	$ (118)
Recognition of actuarial losses	1,970	2,105
Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges, tax	0	0
Provision for income taxes	9,602	4,879
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	(396)	(387)
Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges, tax	0	0
Net of tax	(396)	(387)
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	23
Amortization of prior service credit	167	(119)
Recognition of actuarial losses	1,780	2,201
Total before tax	1,970	2,105
Provision for income taxes	(191)	(271)
Net of tax	1,779	1,834
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	566	545
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	$ (170)	$ (158)

Accumulated Other Comprehensi57

Accumulated Other Comprehensive Loss Other Comprehensive Income - Income Tax Allocated to Each Component (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Other Comprehensive Income - Income Tax Allocated to Each Component [Abstract]
Unrealized loss on derivatives designated and qualified as cash flow hedges, before tax	$ (619)	$ (126)
Unrealized loss on derivatives designated and qualified as cash flow hedges, tax	0	0
Unrealized loss on derivatives designated and qualified as cash flow hedges, net of tax	(619)	(126)
Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges, before tax	396	387
Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges, tax	0	0
Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges, net of tax	396	387
Unrecognized net pension and other postretirement benefit loss, before tax	(2,600)	716
Unrecognized net pension and other postretirement benefit loss, tax	635	(86)
Unrecognized net pension and other postretirement benefit loss, net of tax	(1,965)	630
Reclassification of net pension and other postretirement benefit loss, before tax	1,970	2,105
Reclassification of net pension and other postretirement benefit loss, tax	(191)	(271)
Reclassification of net pension and other postretirement benefit loss	1,779	1,834
Foreign currency translation adjustment, before tax	20,445	1,164
Foreign currency translation adjustment, tax	(577)	0
Foreign currency translation adjustment, net of tax	19,868	1,164
Other comprehensive income, before tax	19,592	4,246
Other comprehensive income, tax	(133)	(357)
Other comprehensive income, net of tax	$ 19,459	$ 3,889

Goodwill and Other Intangible58

Goodwill and Other Intangible Assets - Carrying Amount of Goodwill Attributable to Each Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Jun. 30, 2017
Goodwill [Line Items]
Goodwill, Foreign Currency Translation Gain (Loss)	$ 3,311
Goodwill [Roll Forward]
Goodwill	1,088,731	$ 1,085,420
Accumulated impairment losses	(784,053)	(784,053)
Goodwill, Beginning Balance	301,367
Goodwill, Ending Balance	304,678
Industrial [Member]
Goodwill [Line Items]
Goodwill, Foreign Currency Translation Gain (Loss)	3,176
Goodwill [Roll Forward]
Goodwill	413,870	410,694
Accumulated impairment losses	(137,204)	(137,204)
Goodwill, Beginning Balance	273,490
Goodwill, Ending Balance	276,666
Infrastructure [Member]
Goodwill [Line Items]
Goodwill, Foreign Currency Translation Gain (Loss)	0
Goodwill [Roll Forward]
Goodwill	633,211	633,211
Accumulated impairment losses	(633,211)	(633,211)
Goodwill, Beginning Balance	0
Goodwill, Ending Balance	0
WIDIA [Member]
Goodwill [Line Items]
Goodwill, Foreign Currency Translation Gain (Loss)	135
Goodwill [Roll Forward]
Goodwill	41,650	41,515
Accumulated impairment losses	(13,638)	$ (13,638)
Goodwill, Beginning Balance	27,877
Goodwill, Ending Balance	$ 28,012

Goodwill and Other Intangible59

Goodwill and Other Intangible Assets - Components of Other Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Jun. 30, 2017
The components of intangible assets
Accumulated amortization	$ (134,941)	$ (129,981)
Intangible Assets, Gross (Excluding Goodwill)	322,681	320,508
Trademarks [Member]
The components of intangible assets
Gross carrying amount, Indefinite	17,858	17,326
Contract-based [Member]
The components of intangible assets
Gross carrying amount, finite	7,071	7,064
Accumulated amortization	(7,027)	(7,014)
Technology-based and other [Member]
The components of intangible assets
Gross carrying amount, finite	46,875	46,461
Accumulated amortization	(29,911)	(29,061)
Customer-related [Member]
The components of intangible assets
Gross carrying amount, finite	206,552	205,502
Accumulated amortization	(77,963)	(74,669)
Unpatented technology [Member]
The components of intangible assets
Gross carrying amount, finite	31,833	31,754
Accumulated amortization	(11,235)	(10,589)
Trademarks [Member]
The components of intangible assets
Gross carrying amount, finite	12,492	12,401
Accumulated amortization	$ (8,805)	$ (8,648)
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 Intangible60

Goodwill and Other Intangible Assets (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Jun. 30, 2017
Goodwill and Other Intangible Assets (Additional Textual) [Abstract]
Goodwill	$ 304,678		$ 301,367
Amortization expense for intangible assets	3,661	$ 4,271
Infrastructure [Member]
Goodwill and Other Intangible Assets (Additional Textual) [Abstract]
Goodwill	0		0
Industrial [Member]
Goodwill and Other Intangible Assets (Additional Textual) [Abstract]
Goodwill	276,666		273,490
WIDIA [Member]
Goodwill and Other Intangible Assets (Additional Textual) [Abstract]
Goodwill	$ 28,012		$ 27,877

Segment Data - Sales and Operat

Segment Data - Sales and Operating Income (Loss) by Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Jun. 30, 2017
Segment Reporting Information [Line Items]
Assets	$ 2,399,700		$ 2,415,496
External sales:
Total sales	542,454	$ 477,140
Operating income (loss):
Total operating (income) loss	(56,477)	9,211
Interest expense	7,149	6,993
Other expense, net	88	118
Income (loss) from continuing operations before income taxes	49,240	(16,322)
Industrial [Member]
External sales:
Total sales	297,464	269,043
Operating income (loss):
Total operating (income) loss	(34,812)	(5,556)
Infrastructure [Member]
External sales:
Total sales	199,747	167,082
Operating income (loss):
Total operating (income) loss	(22,069)	7,587
WIDIA [Member]
External sales:
Total sales	45,243	41,015
Operating income (loss):
Total operating (income) loss	(62)	5,756
Corporate [Member]
Operating income (loss):
Total operating (income) loss	$ 466	$ 1,424