Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2018 | Apr. 30, 2018 | |
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 | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 81,628,262 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||||
Sales | $ 607,936 | $ 528,630 | $ 1,721,734 | $ 1,493,343 |
Cost of goods sold | 388,475 | 342,365 | 1,124,736 | 1,015,926 |
Gross profit | 219,461 | 186,265 | 596,998 | 477,417 |
Operating expense | 129,151 | 116,939 | 369,131 | 347,808 |
Restructuring and asset impairment charges (Note 7) | 1,264 | 7,169 | 6,834 | 44,230 |
Amortization of intangibles | 3,690 | 4,245 | 11,028 | 12,665 |
Operating income | 85,356 | 57,912 | 210,005 | 72,714 |
Interest expense | 7,468 | 7,331 | 21,848 | 21,475 |
Other expense, net | 647 | 1,626 | 2,046 | 2,470 |
Income before income taxes | 77,241 | 48,955 | 186,111 | 48,769 |
Provision for income taxes | 24,130 | 9,301 | 51,204 | 22,401 |
Net income | 53,111 | 39,654 | 134,907 | 26,368 |
Less: Net income attributable to noncontrolling interests | 2,245 | 764 | 3,256 | 1,873 |
Net income attributable to Kennametal | $ 50,866 | $ 38,890 | $ 131,651 | $ 24,495 |
PER SHARE DATA ATTRIBUTABLE TO KENNAMETAL SHAREHOLDERS | ||||
Basic earnings per share | $ 0.62 | $ 0.48 | $ 1.62 | $ 0.31 |
Diluted earnings per share | 0.61 | 0.48 | 1.59 | 0.30 |
Dividends per share | $ 0.20 | $ 0.20 | $ 0.60 | $ 0.60 |
Basic weighted average shares outstanding | 81,793 | 80,398 | 81,445 | 80,219 |
Diluted weighted average shares outstanding | 83,109 | 81,381 | 82,670 | 80,965 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Net income | $ 53,111 | $ 39,654 | $ 134,907 | $ 26,368 |
Other comprehensive income (loss), net of tax [Abstract] | ||||
Unrealized (loss) gain on derivatives designated and qualified as cash flow hedges | (783) | (866) | (1,688) | 614 |
Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges | 898 | 389 | 2,301 | 1,158 |
Unrecognized net pension and other postretirement benefit (loss) gain | (1,749) | (725) | (4,339) | 3,376 |
Reclassification of net pension and other postretirement benefit loss | 1,344 | 1,804 | 4,692 | 5,434 |
Foreign currency translation adjustments | 20,282 | 13,785 | 54,075 | (26,480) |
Total other comprehensive income (loss), net of tax | 19,992 | 14,387 | 55,041 | (15,898) |
Total comprehensive income | 73,103 | 54,041 | 189,948 | 10,470 |
Less: comprehensive income attributable to noncontrolling interests | 2,515 | 1,734 | 4,699 | 2,203 |
Comprehensive income attributable to Kennametal Shareholders | $ 70,588 | $ 52,307 | $ 185,249 | $ 8,267 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Mar. 31, 2018 | Jun. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 221,906 | $ 190,629 |
Accounts receivable, less allowance for doubtful accounts of $13,404 and $13,693, respectively | 410,550 | 380,425 |
Inventories (Note 10) | 537,205 | 487,681 |
Assets held for sale (Note 7) | 4,947 | 0 |
Other current assets | 65,979 | 55,166 |
Total current assets | 1,240,587 | 1,113,901 |
Property, plant and equipment: | ||
Land and buildings | 359,512 | 350,002 |
Machinery and equipment | 1,703,582 | 1,577,776 |
Less accumulated depreciation | (1,258,140) | (1,183,390) |
Property, plant and equipment, net | 804,954 | 744,388 |
Other assets: | ||
Assets held for sale (Note 7) | 886 | 6,980 |
Goodwill (Note 17) | 309,433 | 301,367 |
Other intangible assets, less accumulated amortization of $144,012 and $129,981, respectively (Note 17) | 181,676 | 190,527 |
Deferred income taxes (Note 3) | 22,160 | 28,349 |
Other | 58,166 | 29,984 |
Total other assets | 572,321 | 557,207 |
Total assets | 2,617,862 | 2,415,496 |
Current liabilities: | ||
Current maturities of long-term debt and capital leases | 0 | 190 |
Notes payable to banks | 1,399 | 735 |
Accounts payable | 220,205 | 215,722 |
Accrued income taxes | 27,300 | 6,202 |
Accrued expenses | 88,505 | 85,682 |
Other current liabilities | 140,381 | 152,947 |
Total current liabilities | 477,790 | 461,478 |
Long-term debt and capital leases, less current maturities (Note 11) | 696,087 | 694,991 |
Deferred income taxes | 14,856 | 14,883 |
Accrued pension and postretirement benefits | 168,328 | 160,860 |
Accrued income taxes | 8,766 | 2,636 |
Other liabilities | 25,881 | 27,995 |
Total liabilities | 1,391,708 | 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; 81,626 and 80,665 shares issued, respectively | 102,032 | 100,832 |
Additional paid-in capital | 506,902 | 474,547 |
Retained earnings | 848,485 | 765,607 |
Accumulated other comprehensive loss | (270,094) | (323,692) |
Total Kennametal Shareholders' Equity | 1,187,325 | 1,017,294 |
Noncontrolling interests | 38,829 | 35,359 |
Total equity | 1,226,154 | 1,052,653 |
Total liabilities and equity | $ 2,617,862 | $ 2,415,496 |
CONDENSED CONSOLIDATED BALANCE5
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Mar. 31, 2018 | Jun. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 13,404 | $ 13,693 |
Accumulated amortization on other intangible assets | $ 144,012 | $ 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 | 81,626 | 80,665 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
OPERATING ACTIVITIES | ||
Net income | $ 134,907 | $ 26,368 |
Adjustments for non-cash items: | ||
Depreciation | 69,994 | 68,369 |
Amortization | 11,028 | 12,665 |
Stock-based compensation expense | 16,225 | 17,285 |
Restructuring and asset impairment charges (Note 7) | 4,267 | 1,224 |
Deferred income tax provision | 6,911 | 1,300 |
Other | 3,384 | (2,711) |
Changes in certain assets and liabilities: | ||
Accounts receivable | (14,761) | (12,736) |
Inventories | (32,861) | (38,110) |
Accounts Payable and accrued liabilities (Note 3) | (15,703) | 28,561 |
Accrued income taxes | 20,206 | 1,087 |
Accrued pension and postretirement benefits | (19,973) | (18,799) |
Other | (3,038) | (1,710) |
Net cash flow provided by operating activities | 180,586 | 82,793 |
INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | (128,310) | (94,095) |
Disposals of property, plant and equipment | 2,196 | 3,852 |
Other | 321 | 111 |
Net cash flow used for investing activities | (125,793) | (90,132) |
FINANCING ACTIVITIES | ||
Net increase in notes payable | 791 | 333 |
Term debt borrowings | 0 | 25,298 |
Term debt repayments | (190) | (25,830) |
Purchase of capital stock | (163) | (188) |
Dividend reinvestment and the effect of employee benefit and stock plans (Note 3) | 17,493 | 4,285 |
Cash dividends paid to Shareholders | (48,773) | (48,013) |
Other | (415) | (6,439) |
Net cash flow used for financing activities | (31,257) | (50,554) |
Effect of exchange rate changes on cash and cash equivalents | 7,741 | (2,869) |
CASH AND CASH EQUIVALENTS | ||
Net increase (decrease) in cash and cash equivalents | 31,277 | (60,762) |
Cash and cash equivalents, beginning of period | 190,629 | 161,579 |
Cash and cash equivalents, end of period | $ 221,906 | $ 100,817 |
Organization
Organization | 9 Months Ended |
Mar. 31, 2018 | |
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. We also 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, and oil and gas exploration, refining, production and supply. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Mar. 31, 2018 | |
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 nine months ended March 31, 2018 and 2017 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 Quarterly Report on 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 | 9 Months Ended |
Mar. 31, 2018 | |
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 at the time of adoption of this standard; (2) excess tax benefits, previously reported in the financing activities section of the condensed consolidated statements of cash flow, 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; and (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, are 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 $2.8 million for the nine months ended March 31, 2017 . 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 February 2018, the FASB issued ASU No. 2018-02, “Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income," which includes amendments related to the reclassification of the income tax effects of the Tax Cuts and Jobs Act of 2017 (TCJA) to improve the usefulness of information reported to financial statement users. The amendments in this update also require certain disclosures about stranded tax effects. This guidance is effective for us July 1, 2019, although early adoption is permitted. 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 using the modified retrospective approach. We have a project team that has performed a detailed review of the terms and provisions in customer contracts, tentatively concluding that the new standard will not affect the timing and measurement of revenue for these contracts in comparison to the results of historical accounting policies and practices. Under the provisions of this ASU, we believe certain costs currently reported in operating expense may be reclassified to cost of goods sold on the condensed consolidated statement of income, as they represent costs incurred in satisfaction of performance obligations. Although we have not yet finalized our assessment of the impact of adoption of this guidance, we do not expect it to have a material impact on our condensed consolidated financial statements other than additional disclosures. |
Supplemental Cash Flow Disclosu
Supplemental Cash Flow Disclosures | 9 Months Ended |
Mar. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW DISCLOSURES | SUPPLEMENTAL CASH FLOW DISCLOSURES Nine Months Ended March 31, (in thousands) 2018 2017 Cash paid during the period for: Income taxes $ 24,087 $ 20,013 Interest 21,091 20,725 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 | 9 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received on the sale of 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 March 31, 2018 , 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) $ — $ 44 $ — $ 44 Total assets at fair value $ — $ 44 $ — $ 44 Liabilities: Derivatives (1) $ — $ 1,289 $ — $ 1,289 Total liabilities at fair value $ — $ 1,289 $ — $ 1,289 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 | 9 Months Ended |
Mar. 31, 2018 | |
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) March 31, June 30, Derivatives designated as hedging instruments Other current assets - range forward contracts $ — $ 1 Other current liabilities - range forward contracts (1,262 ) (671 ) Other liabilities - range forward contracts — (101 ) Total derivatives designated as hedging instruments (1,262 ) (771 ) Derivatives not designated as hedging instruments Other current assets - currency forward contracts 44 358 Other current liabilities - currency forward contracts (27 ) (138 ) Total derivatives not designated as hedging instruments 17 220 Total derivatives $ (1,245 ) $ (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 March 31, Nine Months Ended March 31, (in thousands) 2018 2017 2018 2017 Other expense (income), net - currency forward contracts $ 182 $ 538 $ (26 ) $ 161 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 March 31, 2018 and June 30, 2017 , was $61.6 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 March 31, 2018 , we expect to recognize into earnings $1.5 million of expense on outstanding derivatives in the next 12 months. The following represents gains and losses related to cash flow hedges: Three Months Ended March 31, Nine Months Ended March 31, (in thousands) 2018 2017 2018 2017 (Losses) gains recognized in other comprehensive loss, net $ (782 ) $ (866 ) $ (1,688 ) $ 615 Losses reclassified from accumulated other comprehensive loss into other expense, net $ 761 $ 390 $ 2,024 $ 1,158 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 nine months ended March 31, 2018 and 2017 . NET INVESTMENT HEDGES As of March 31, 2018 , 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. Losses of $1.1 million and $2.9 million were recorded as a component of foreign currency translation adjustments in other comprehensive income (loss) for the three and nine months ended March 31, 2018 , respectively, compared to a loss of $0.5 million recorded for the three and nine months ended March 31, 2017 . As of March 31, 2018 , 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 € 27,126 $ 33,414 June 26, 2022 Foreign currency-denominated intercompany loan payable 8,687 10,700 November 20, 2018 Foreign currency-denominated intercompany loan payable 2,009 2,475 October 11, 2019 (2) Includes principal and accrued interest. |
Restructuring and Related Charg
Restructuring and Related Charges | 9 Months Ended |
Mar. 31, 2018 | |
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 employee reductions, as well as rationalization and consolidation of certain manufacturing facilities. These restructuring actions were substantially completed in the first quarter of fiscal 2018 and were mainly cash expenditures. Total restructuring and related charges since inception of $157.7 million have been recorded for these programs through March 31, 2018 : $85.6 million in Industrial, $50.9 million in Infrastructure, $13.9 million in Widia and $7.3 million in Corporate. We recorded restructuring and related charges of $1.7 million and $9.6 million for the three months ended March 31, 2018 and 2017 , respectively. Of these amounts, restructuring charges totaled $1.1 million and $7.1 million for the three months ended March 31, 2018 and 2017 , respectively, of which benefit of $0.2 million was related to inventory and was recorded in cost of goods sold for the three months ended March 31, 2018 . Restructuring-related charges of $0.9 million and $1.7 million were recorded in cost of goods sold and $0.3 million of benefit and $0.8 million of expense were recorded in operating expense for the three months ended March 31, 2018 and 2017 , respectively. We recorded restructuring and related charges of $10.0 million and $53.1 million for the nine months ended March 31, 2018 and 2017 , respectively. Of these amounts, restructuring charges totaled $6.7 million and $44.5 million , of which benefit of $0.2 million and expense of $0.3 million were related to inventory and were recorded in cost of goods sold for the nine months ended March 31, 2018 and 2017 , respectively. Restructuring-related charges of $3.3 million and $5.8 million were recorded in cost of goods sold and $0.1 million and $2.8 million in operating expense for the nine months ended March 31, 2018 and 2017 , respectively. As of March 31, 2018 and June 30, 2017 , property, plant, and equipment of $5.8 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 March 31, 2018 and June 30, 2017 , $11.8 million and $27.3 million of the restructuring accrual is recorded in other current liabilities and $0.5 million and $2.5 million is recorded in other liabilities, respectively, 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 March 31, 2018 Industrial Severance $ 17,639 $ 1,804 $ — $ 1,171 $ (15,099 ) $ 5,515 Facilities — 3,084 (3,084 ) — — — Other 94 (29 ) — 3 (38 ) 30 Total Industrial $ 17,733 $ 4,859 $ (3,084 ) $ 1,174 $ (15,137 ) $ 5,545 Widia Severance $ 2,434 $ 384 $ — $ 249 $ (3,067 ) $ — Facilities — 747 (747 ) — — — Other — (6 ) — 1 8 3 Total Widia $ 2,434 $ 1,125 $ (747 ) $ 250 $ (3,059 ) $ 3 Infrastructure Severance $ 9,573 $ 422 $ — $ 273 $ (3,501 ) $ 6,767 Facilities 21 265 (265 ) — (21 ) — Other 45 (7 ) — — (21 ) 17 Total Infrastructure $ 9,639 $ 680 $ (265 ) $ 273 $ (3,543 ) $ 6,784 Total $ 29,806 $ 6,664 $ (4,096 ) $ 1,697 $ (21,739 ) $ 12,332 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Stock Options There were no grants made during the nine months ended March 31, 2018 and 2017 . Changes in our stock options for the nine months ended March 31, 2018 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 (609,230 ) 35.68 Lapsed or forfeited (94,292 ) 34.06 Options outstanding, March 31, 2018 1,023,269 $ 33.12 5.2 $ 8,168 Options vested and expected to vest, March 31, 2018 1,020,522 $ 33.13 5.2 $ 8,141 Options exercisable, March 31, 2018 845,436 $ 33.98 4.7 $ 6,159 During the nine months ended March 31, 2018 and 2017 , compensation expense related to stock options was $0.6 million and $1.3 million , respectively. As of March 31, 2018 , the total unrecognized compensation cost related to options outstanding was $0.2 million and is expected to be recognized over a weighted average period of 0.5 years . Fair value of options vested during the nine months ended March 31, 2018 and 2017 was $1.9 million and $3.3 million , respectively. Tax benefits relating to excess stock-based compensation deductions are presented in the operating activities section of the condensed consolidated statements of cash flow for the nine months ended March 31, 2018 . Tax benefits resulting from stock-based compensation deductions were greater than the amounts reported for financial reporting purposes by $0.1 million for the nine months ended March 31, 2018 , and no tax benefits were realized for the nine months ended March 31, 2017 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 nine months ended March 31, 2018 and 2017 was $21.7 million and $7.2 million , respectively. The related tax benefit was $1.4 million for the nine months ended March 31, 2018 , and there was no related tax benefit realized for the nine months ended March 31, 2017 due to the valuation allowance on U.S. deferred tax assets. The total intrinsic value of options exercised during the nine months ended March 31, 2018 and 2017 was $6.4 million and $1.6 million , respectively. 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 the nine months ended March 31, 2018 and 2017 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 has ended, 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 for 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 nine months ended March 31, 2018 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 38.81 434,391 37.87 Vested (10,031 ) 42.83 (417,712 ) 30.27 Performance metric adjustments, net 16,766 25.88 — — Forfeited (36,085 ) 30.91 (66,507 ) 30.98 Unvested, March 31, 2018 409,297 $ 31.22 1,103,616 $ 30.47 During the nine months ended March 31, 2018 and 2017 , compensation expense related to time vesting and performance vesting restricted stock units was $15.0 million and $15.8 million , respectively. As of March 31, 2018 , the total unrecognized compensation cost related to unvested time vesting and performance vesting restricted stock units was $18.1 million and is expected to be recognized over a weighted average period of 2.0 years. |
Benefit Plans
Benefit Plans | 9 Months Ended |
Mar. 31, 2018 | |
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 March 31, Nine Months Ended March 31, (in thousands) 2018 2017 2018 2017 Service cost $ 414 $ 720 $ 1,224 $ 2,180 Interest cost 7,716 7,756 23,051 23,335 Expected return on plan assets (14,188 ) (14,659 ) (42,410 ) (44,088 ) Amortization of transition obligation 24 22 70 67 Amortization of prior service (credit) cost (42 ) (113 ) 90 (339 ) Recognition of actuarial losses 1,746 2,066 5,174 6,266 Settlement gain — (320 ) — (320 ) Net periodic pension income $ (4,330 ) $ (4,528 ) $ (12,801 ) $ (12,899 ) The settlement gain of $0.3 million during the three and nine months ended March 31, 2017 is the result of income from the settlement with several terminated Executive Retirement Plan participants. The table below summarizes the components of net periodic other postretirement benefit cost: Three Months Ended March 31, Nine Months Ended March 31, (in thousands) 2018 2017 2018 2017 Interest cost $ 157 $ 168 $ 471 $ 505 Amortization of prior service credit (6 ) (6 ) (16 ) (16 ) Recognition of actuarial loss 70 89 210 266 Net periodic other postretirement benefit cost $ 221 $ 251 $ 665 $ 755 |
Inventories
Inventories | 9 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES We used the last-in, first-out (LIFO) method of valuing inventories for 39 percent and 43 percent of total inventories at March 31, 2018 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) March 31, 2018 June 30, 2017 Finished goods $ 304,313 $ 290,817 Work in process and powder blends 217,659 166,857 Raw materials 88,792 87,627 Inventories at current cost 610,764 545,301 Less: LIFO valuation (73,559 ) (57,620 ) Total inventories $ 537,205 $ 487,681 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Mar. 31, 2018 | |
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 such covenants as of March 31, 2018 . We had no borrowings outstanding under the Credit Agreement as of March 31, 2018 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 $700.3 million and $704.0 million at March 31, 2018 and June 30, 2017 , respectively. The Level 2 fair value is determined based on the quoted market price of this debt as of March 31, 2018 and June 30, 2017 , respectively. |
Environmental Matters
Environmental Matters | 9 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 and June 30, 2017 , the balances of these reserves were $12.8 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 | 9 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES On December 22, 2017, TCJA was signed into law in the U.S. TCJA amends the Internal Revenue Code of 1986 to reduce tax rates and modify policies, credits and deductions for individuals and corporations. For corporations, TCJA reduces the federal tax rate from a maximum of 35.0 percent to a flat 21.0 percent rate and transitions from a worldwide tax system to a territorial tax system. TCJA also adds many new provisions including changes to bonus depreciation, the deduction for executive compensation and interest expense, a tax on global intangible low-taxed income (GILTI), the base erosion anti-abuse tax (BEAT) and a deduction for foreign-derived intangible income (FDII). We are assessing the impact of certain provisions, including the tax on GILTI, the BEAT and the deduction for FDII, which do not apply to the Company until fiscal 2019. This assessment includes the evaluation of our accounting election relative to GILTI as either a period cost or an adjustment to deferred tax assets or liabilities of our foreign subsidiaries for the new tax. The two material items that effect the Company for fiscal 2018 are the reduction in the tax rate and a one-time tax that is imposed on our unremitted foreign earnings (toll tax). On December 22, 2017, the SEC issued Staff Accounting Bulletin 118 (SAB 118) that includes additional guidance allowing companies to use a measurement period, similar to that used in business combinations, to account for the impacts of TCJA in their financial statements. We have accounted for the impacts of TCJA to the extent a reasonable estimate could be made during the three and nine months ended March 31, 2018 . We will continue to refine our estimates throughout the measurement period, which will not extend beyond 12 months from the enactment of TCJA, or until the accounting is complete. The U.S. federal tax rate reduction is effective as of January 1, 2018. As a June 30 fiscal year-end taxpayer, our 2018 fiscal year U.S. federal statutory tax rate is expected to be a blended rate of 28.1 percent . We expect our U.S. federal statutory tax rate to be 21.0 percent in 2019. As a result of the reduction in the U.S. corporate income tax rate from 35.0 percent to 21.0 percent under TCJA, we recorded a provisional reduction to our net deferred tax assets during the three months ended December 31, 2017 with a corresponding decrease to the valuation allowance prior to its release on December 31, 2017. The result of this reduction had no impact on our condensed consolidated statement of income for the six months ended December 31, 2017. The revaluation of our deferred tax assets and liabilities are subject to further adjustments during the measurement period due to the complexity of determining our net deferred tax liability as of the enactment date. Some of the information necessary to determine the accounting effects of the tax rate change includes finalizing the assessment of which existing deferred balances at the enactment date reverse in 2018 at the 28.1 percent tax rate and which deferred balances will reverse after 2018 at the 21.0 percent tax rate. During the three months ended December 31, 2017, we estimated the toll tax charge to be $77 million after available foreign tax credits. We recorded an adjustment to this estimate during the three months ended March 31, 2018 , primarily related to consideration of Internal Revenue Service notices issued during the March quarter. The adjustment resulted in an additional $6 million of expense, increasing the total estimated toll tax charge to $83 million as of March 31, 2018 . The toll tax charge consumed our entire U.S. federal net operating loss carryforward and other credit carryforwards, which represent a significant portion of our previously available deferred tax assets, and was offset by the release of the valuation allowance associated with these assets. As a result of the March quarter adjustment, we estimate a cash payment of $6.4 million associated with the toll charge which will be paid over eight years, of which $5.9 million is classified as long-term accrued income taxes in our condensed consolidated balance sheet as of March 31, 2018 . The toll tax charge is preliminary, and subject to finalization of collecting all information, applying any additional regulatory guidance issued after March 31, 2018, considering changes in interpretations and assumptions and analyzing the calculation, along with foreign taxes and the related gross-up, in reasonable detail to complete the accounting. During the three months ended December 31, 2017, we released a valuation allowance of $3.9 million that was previously recorded against our net deferred tax assets in the U.S. The valuation allowance release was triggered by utilization of a significant portion of our deferred tax assets to satisfy the toll tax provision in TCJA. Along with expected full-year income in the U.S. in fiscal 2018 , we anticipate our domestic deferred taxes to be in a net liability position by June 30, 2018 . We consider substantially all of the unremitted earnings of our non-U.S. subsidiaries that have not previously been taxed in the U.S. to be permanently reinvested. As a result of TCJA, which among other provisions allows for a 100% dividends received deduction from controlled foreign subsidiaries, we will re-evaluate our assertion with respect to permanent reinvestment. As part of this evaluation, we will consider our global working capital and capital investment requirements, among other considerations, including the potential tax liabilities that would be incurred if the non-U.S. subsidiaries distribute cash to the U.S. parent. If we determine that an entity should no longer remain subject to the permanent reinvestment assertion, we will accrue additional tax charges, including but not limited to state income taxes, withholding taxes and other relevant foreign taxes in the period the conclusion is determined. In accordance with SAB 118, we expect to complete our evaluation by December 22, 2018. The effective income tax rates for the three months ended March 31, 2018 and 2017 were 31.2 percent and 19.0 percent , respectively. The change is primarily driven by the discrete tax charge of $6 million recorded in the current quarter for adjustment to the toll tax charge and prior year U.S. income not being tax-effected and current year U.S. income being subject to tax. This is the result of the valuation allowance, originally recorded in the fourth quarter of fiscal 2016, being released in the December quarter of fiscal 2018. The effective income tax rates for the nine months ended March 31, 2018 and 2017 were 27.5 percent and 45.9 percent , respectively. The change is primarily driven by restructuring and related charges, and to a lesser extent the net discrete tax charges recorded in the current year associated with TCJA and prior year U.S. loss not being tax-effected and current year U.S. income being subject to tax as a result of the aforementioned timing of release of the valuation allowance. During the three months ended December 31, 2017, we identified an error related to the tax rate that had historically been used to calculate the deferred tax charge on intra-entity product transfers. This resulted in an overstatement of deferred tax assets of $8.2 million as of June 30, 2017 . During the December quarter of fiscal 2018, $2.9 million of this amount was corrected in connection with the release of the U.S. valuation allowance. Therefore, the out of period adjustment recorded resulted in a further increase of $5.3 million to the provision for income taxes for the three months ended December 31, 2017. The remaining balance related to this item was reclassified and included in other current assets. The impact to the effective tax rate was 2.8 percent for the nine months ended March 31, 2018. After evaluation, we determined that the impact of the adjustment was not material to the previously issued financial statements, nor are the out of period adjustments material to the estimated results of fiscal year 2018. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Mar. 31, 2018 | |
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 1.3 million shares and 1.0 million shares for the three months ended March 31, 2018 and 2017 , respectively, and 1.2 million shares and 0.7 million shares for the nine months ended March 31, 2018 and 2017 , respectively. Unexercised capital stock options, unvested performance awards and unvested restricted stock units of 1.2 million shares for the three months ended March 31, 2017 and 0.4 million shares and 1.8 million shares for the nine months ended March 31, 2018 and 2017 , respectively, were not included in the computation of diluted earnings per share because the option exercise price was greater than the average market price, and therefore the inclusion would have been anti-dilutive. The amount of shares of unexercised capital stock options, unvested performance awards and unvested restricted stock units for the three months ended March 31, 2018 that were not included in the computation of diluted earnings per share was immaterial. |
Equity
Equity | 9 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 and 2017 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 — — 131,651 — 3,256 134,907 Other comprehensive income — — — 53,598 1,443 55,041 Dividend reinvestment 5 158 — — — 163 Capital stock issued under employee benefit and stock plans (3) 1,200 32,355 — — — 33,555 Purchase of capital stock (5 ) (158 ) — — — (163 ) Cash dividends — — (48,773 ) — (1,229 ) (50,002 ) Balance as of March 31, 2018 $ 102,032 $ 506,902 $ 848,485 $ (270,094 ) $ 38,829 $ 1,226,154 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 income — — 24,495 — 1,873 26,368 Other comprehensive (loss) income — — — (16,228 ) 330 (15,898 ) Dividend reinvestment 7 181 — — — 188 Capital stock issued under employee benefit and stock plans (3) 697 20,688 — — — 21,385 Purchase of capital stock (7 ) (181 ) — — — (188 ) Cash dividends — — (48,013 ) — (72 ) (48,085 ) Balance as of March 31, 2017 $ 100,315 $ 457,305 $ 757,079 $ (368,737 ) $ 33,609 $ 979,571 (3) Net of restricted stock units delivered upon vesting to satisfy tax withholding requirements. The amounts of comprehensive income (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 | 9 Months Ended |
Mar. 31, 2018 | |
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 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 nine months ended March 31, 2018 (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 (loss) before reclassifications (4,339 ) 52,632 (1,688 ) 46,605 Amounts reclassified from AOCL 4,692 — 2,301 6,993 Net current period other comprehensive income 353 52,632 613 53,598 AOCL, March 31, 2018 $ (188,685 ) $ (73,974 ) $ (7,435 ) $ (270,094 ) Attributable to noncontrolling interests: Balance, June 30, 2017 $ — $ (2,164 ) $ — $ (2,164 ) Other comprehensive income before reclassifications — 1,443 — 1,443 Net current period other comprehensive income — 1,443 — 1,443 AOCL, March 31, 2018 $ — $ (721 ) $ — $ (721 ) The components of, and changes in, AOCL were as follows, net of tax, for the nine months ended March 31, 2017 (in thousands): Attributable to Kennametal: Postretirement benefit plans Currency translation adjustment Derivatives Total Balance, June 30, 2016 $ (212,163 ) $ (131,212 ) $ (9,134 ) $ (352,509 ) Other comprehensive income (loss) before reclassifications 3,376 (26,810 ) 614 (22,820 ) Amounts reclassified from AOCL 5,434 — 1,158 6,592 Net current period other comprehensive income (loss) 8,810 (26,810 ) 1,772 (16,228 ) AOCL, March 31, 2017 $ (203,353 ) $ (158,022 ) $ (7,362 ) $ (368,737 ) Attributable to noncontrolling interests: Balance, June 30, 2016 $ — $ (3,446 ) $ — $ (3,446 ) Other comprehensive income before reclassifications — 330 — 330 Net current period other comprehensive income — 330 — 330 AOCL, March 31, 2017 $ — $ (3,116 ) $ — $ (3,116 ) Reclassifications out of AOCL for the three and nine months ended March 31, 2018 and 2017 consisted of the following (in thousands): Three Months Ended March 31, Nine Months Ended March 31, Details about AOCL components 2018 2017 2018 2017 Affected line item in the Income Statement Gains and losses on cash flow hedges: Forward starting interest rate swaps $ 566 $ 545 $ 1,698 $ 1,635 Interest expense Currency exchange contracts 623 (156 ) 1,350 (477 ) Other expense, net Total before tax 1,189 389 3,048 1,158 Tax impact (291 ) — (747 ) — Provision for income taxes Net of tax $ 898 $ 389 $ 2,301 $ 1,158 Postretirement benefit plans: Amortization of transition obligations $ 24 $ 22 $ 70 $ 67 See note 9 for further details Amortization of prior service (credit) cost (48 ) (119 ) 74 (355 ) See note 9 for further details Recognition of actuarial losses 1,816 2,155 5,384 6,532 See note 9 for further details Total before tax 1,792 2,058 5,528 6,244 Tax impact (448 ) (254 ) (836 ) (810 ) Provision for income taxes Net of tax $ 1,344 $ 1,804 $ 4,692 $ 5,434 The amount of income tax allocated to each component of other comprehensive income for the three months ended March 31, 2018 and 2017 : 2018 2017 (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 $ (1,037 ) $ 254 $ (783 ) $ (866 ) $ — $ (866 ) Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges 1,189 (291 ) 898 389 — 389 Unrecognized net pension and other postretirement benefit loss (2,271 ) 522 (1,749 ) (970 ) 245 (725 ) Reclassification of net pension and other postretirement benefit loss 1,792 (448 ) 1,344 2,058 (254 ) 1,804 Foreign currency translation adjustments 20,437 (155 ) 20,282 13,706 79 13,785 Other comprehensive income $ 20,110 $ (118 ) $ 19,992 $ 14,317 $ 70 $ 14,387 The amount of income tax allocated to each component of other comprehensive income (loss) for the nine months ended March 31, 2018 and 2017 : 2018 2017 (in thousands) Pre-tax Tax impact Net of tax Pre-tax Tax impact Net of tax Unrealized (loss) gain on derivatives designated and qualified as cash flow hedges $ (2,236 ) $ 548 $ (1,688 ) $ 614 $ — $ 614 Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges 3,048 (747 ) 2,301 1,158 — 1,158 Unrecognized net pension and other postretirement benefit (loss) gain (5,705 ) 1,366 (4,339 ) 4,431 (1,055 ) 3,376 Reclassification of net pension and other postretirement benefit loss 5,528 (836 ) 4,692 6,244 (810 ) 5,434 Foreign currency translation adjustments 54,495 (420 ) 54,075 (26,559 ) 79 (26,480 ) Other comprehensive income (loss) $ 55,130 $ (89 ) $ 55,041 $ (14,112 ) $ (1,786 ) $ (15,898 ) |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Mar. 31, 2018 | |
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 nine months ended March 31, 2018: Change in gross goodwill due to translation 7,611 455 — 8,066 Gross goodwill 418,305 41,970 633,211 1,093,486 Accumulated impairment losses (137,204 ) (13,638 ) (633,211 ) (784,053 ) Balance as of March 31, 2018 $ 281,101 $ 28,332 $ — $ 309,433 The components of our other intangible assets were as follows: Estimated Useful Life (in years) March 31, 2018 June 30, 2017 (in thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Contract-based 3 to 15 $ 7,066 $ (7,036 ) $ 7,064 $ (7,014 ) Technology-based and other 4 to 20 47,357 (31,244 ) 46,461 (29,061 ) Customer-related 10 to 21 208,107 (84,114 ) 205,502 (74,669 ) Unpatented technology 10 to 30 32,071 (12,566 ) 31,754 (10,589 ) Trademarks 5 to 20 12,600 (9,052 ) 12,401 (8,648 ) Trademarks Indefinite 18,487 — 17,326 — Total $ 325,688 $ (144,012 ) $ 320,508 $ (129,981 ) During the nine months ended March 31, 2018 and 2017 , we recorded amortization expense of $11.0 million and $12.7 million , respectively, related to our other intangible assets. |
Segment Data
Segment Data | 9 Months Ended |
Mar. 31, 2018 | |
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. Our reportable operating segments have been determined in accordance with our 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, our 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 March 31, Nine Months Ended March 31, (in thousands) 2018 2017 2018 2017 Sales: Industrial $ 333,012 $ 289,455 $ 942,922 $ 825,990 Widia 52,217 46,297 145,204 130,186 Infrastructure 222,707 192,878 633,608 537,167 Total sales $ 607,936 $ 528,630 $ 1,721,734 $ 1,493,343 Operating income (loss): Industrial $ 53,029 $ 38,535 $ 131,132 $ 62,138 Widia 1,638 606 2,556 (7,797 ) Infrastructure 31,767 19,770 79,347 22,457 Corporate (1,078 ) (999 ) (3,030 ) (4,084 ) Total operating income 85,356 57,912 210,005 72,714 Interest expense 7,468 7,331 21,848 21,475 Other expense, net 647 1,626 2,046 2,470 Income from continuing operations before income taxes $ 77,241 $ 48,955 $ 186,111 $ 48,769 |
Supplemental Cash Flow Disclo25
Supplemental Cash Flow Disclosures (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Disclosures | Nine Months Ended March 31, (in thousands) 2018 2017 Cash paid during the period for: Income taxes $ 24,087 $ 20,013 Interest 21,091 20,725 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) | 9 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial instruments at fair value on recurring basis | As of March 31, 2018 , 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) $ — $ 44 $ — $ 44 Total assets at fair value $ — $ 44 $ — $ 44 Liabilities: Derivatives (1) $ — $ 1,289 $ — $ 1,289 Total liabilities at fair value $ — $ 1,289 $ — $ 1,289 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) | 9 Months Ended |
Mar. 31, 2018 | |
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) March 31, June 30, Derivatives designated as hedging instruments Other current assets - range forward contracts $ — $ 1 Other current liabilities - range forward contracts (1,262 ) (671 ) Other liabilities - range forward contracts — (101 ) Total derivatives designated as hedging instruments (1,262 ) (771 ) Derivatives not designated as hedging instruments Other current assets - currency forward contracts 44 358 Other current liabilities - currency forward contracts (27 ) (138 ) Total derivatives not designated as hedging instruments 17 220 Total derivatives $ (1,245 ) $ (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 March 31, Nine Months Ended March 31, (in thousands) 2018 2017 2018 2017 Other expense (income), net - currency forward contracts $ 182 $ 538 $ (26 ) $ 161 |
Gains and losses related to cash flow hedges | The following represents gains and losses related to cash flow hedges: Three Months Ended March 31, Nine Months Ended March 31, (in thousands) 2018 2017 2018 2017 (Losses) gains recognized in other comprehensive loss, net $ (782 ) $ (866 ) $ (1,688 ) $ 615 Losses reclassified from accumulated other comprehensive loss into other expense, net $ 761 $ 390 $ 2,024 $ 1,158 |
Net investment hedges | As of March 31, 2018 , 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 € 27,126 $ 33,414 June 26, 2022 Foreign currency-denominated intercompany loan payable 8,687 10,700 November 20, 2018 Foreign currency-denominated intercompany loan payable 2,009 2,475 October 11, 2019 (2) Includes principal and accrued interest. |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring Reserve by Type of Cost | As of March 31, 2018 and June 30, 2017 , $11.8 million and $27.3 million of the restructuring accrual is recorded in other current liabilities and $0.5 million and $2.5 million is recorded in other liabilities, respectively, 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 March 31, 2018 Industrial Severance $ 17,639 $ 1,804 $ — $ 1,171 $ (15,099 ) $ 5,515 Facilities — 3,084 (3,084 ) — — — Other 94 (29 ) — 3 (38 ) 30 Total Industrial $ 17,733 $ 4,859 $ (3,084 ) $ 1,174 $ (15,137 ) $ 5,545 Widia Severance $ 2,434 $ 384 $ — $ 249 $ (3,067 ) $ — Facilities — 747 (747 ) — — — Other — (6 ) — 1 8 3 Total Widia $ 2,434 $ 1,125 $ (747 ) $ 250 $ (3,059 ) $ 3 Infrastructure Severance $ 9,573 $ 422 $ — $ 273 $ (3,501 ) $ 6,767 Facilities 21 265 (265 ) — (21 ) — Other 45 (7 ) — — (21 ) 17 Total Infrastructure $ 9,639 $ 680 $ (265 ) $ 273 $ (3,543 ) $ 6,784 Total $ 29,806 $ 6,664 $ (4,096 ) $ 1,697 $ (21,739 ) $ 12,332 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Changes in stock options | Changes in our stock options for the nine months ended March 31, 2018 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 (609,230 ) 35.68 Lapsed or forfeited (94,292 ) 34.06 Options outstanding, March 31, 2018 1,023,269 $ 33.12 5.2 $ 8,168 Options vested and expected to vest, March 31, 2018 1,020,522 $ 33.13 5.2 $ 8,141 Options exercisable, March 31, 2018 845,436 $ 33.98 4.7 $ 6,159 |
Changes in time vesting and performance vesting restricted stock units | Changes in our time vesting and performance vesting restricted stock units for the nine months ended March 31, 2018 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 38.81 434,391 37.87 Vested (10,031 ) 42.83 (417,712 ) 30.27 Performance metric adjustments, net 16,766 25.88 — — Forfeited (36,085 ) 30.91 (66,507 ) 30.98 Unvested, March 31, 2018 409,297 $ 31.22 1,103,616 $ 30.47 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
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 March 31, Nine Months Ended March 31, (in thousands) 2018 2017 2018 2017 Service cost $ 414 $ 720 $ 1,224 $ 2,180 Interest cost 7,716 7,756 23,051 23,335 Expected return on plan assets (14,188 ) (14,659 ) (42,410 ) (44,088 ) Amortization of transition obligation 24 22 70 67 Amortization of prior service (credit) cost (42 ) (113 ) 90 (339 ) Recognition of actuarial losses 1,746 2,066 5,174 6,266 Settlement gain — (320 ) — (320 ) Net periodic pension income $ (4,330 ) $ (4,528 ) $ (12,801 ) $ (12,899 ) |
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 March 31, Nine Months Ended March 31, (in thousands) 2018 2017 2018 2017 Interest cost $ 157 $ 168 $ 471 $ 505 Amortization of prior service credit (6 ) (6 ) (16 ) (16 ) Recognition of actuarial loss 70 89 210 266 Net periodic other postretirement benefit cost $ 221 $ 251 $ 665 $ 755 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following: (in thousands) March 31, 2018 June 30, 2017 Finished goods $ 304,313 $ 290,817 Work in process and powder blends 217,659 166,857 Raw materials 88,792 87,627 Inventories at current cost 610,764 545,301 Less: LIFO valuation (73,559 ) (57,620 ) Total inventories $ 537,205 $ 487,681 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 and 2017 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 — — 131,651 — 3,256 134,907 Other comprehensive income — — — 53,598 1,443 55,041 Dividend reinvestment 5 158 — — — 163 Capital stock issued under employee benefit and stock plans (3) 1,200 32,355 — — — 33,555 Purchase of capital stock (5 ) (158 ) — — — (163 ) Cash dividends — — (48,773 ) — (1,229 ) (50,002 ) Balance as of March 31, 2018 $ 102,032 $ 506,902 $ 848,485 $ (270,094 ) $ 38,829 $ 1,226,154 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 income — — 24,495 — 1,873 26,368 Other comprehensive (loss) income — — — (16,228 ) 330 (15,898 ) Dividend reinvestment 7 181 — — — 188 Capital stock issued under employee benefit and stock plans (3) 697 20,688 — — — 21,385 Purchase of capital stock (7 ) (181 ) — — — (188 ) Cash dividends — — (48,013 ) — (72 ) (48,085 ) Balance as of March 31, 2017 $ 100,315 $ 457,305 $ 757,079 $ (368,737 ) $ 33,609 $ 979,571 (3) Net of restricted stock units delivered upon vesting to satisfy tax withholding requirements. |
Accumulated Other Comprehensi33
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
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 nine months ended March 31, 2018 (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 (loss) before reclassifications (4,339 ) 52,632 (1,688 ) 46,605 Amounts reclassified from AOCL 4,692 — 2,301 6,993 Net current period other comprehensive income 353 52,632 613 53,598 AOCL, March 31, 2018 $ (188,685 ) $ (73,974 ) $ (7,435 ) $ (270,094 ) Attributable to noncontrolling interests: Balance, June 30, 2017 $ — $ (2,164 ) $ — $ (2,164 ) Other comprehensive income before reclassifications — 1,443 — 1,443 Net current period other comprehensive income — 1,443 — 1,443 AOCL, March 31, 2018 $ — $ (721 ) $ — $ (721 ) The components of, and changes in, AOCL were as follows, net of tax, for the nine months ended March 31, 2017 (in thousands): Attributable to Kennametal: Postretirement benefit plans Currency translation adjustment Derivatives Total Balance, June 30, 2016 $ (212,163 ) $ (131,212 ) $ (9,134 ) $ (352,509 ) Other comprehensive income (loss) before reclassifications 3,376 (26,810 ) 614 (22,820 ) Amounts reclassified from AOCL 5,434 — 1,158 6,592 Net current period other comprehensive income (loss) 8,810 (26,810 ) 1,772 (16,228 ) AOCL, March 31, 2017 $ (203,353 ) $ (158,022 ) $ (7,362 ) $ (368,737 ) Attributable to noncontrolling interests: Balance, June 30, 2016 $ — $ (3,446 ) $ — $ (3,446 ) Other comprehensive income before reclassifications — 330 — 330 Net current period other comprehensive income — 330 — 330 AOCL, March 31, 2017 $ — $ (3,116 ) $ — $ (3,116 ) |
Reclassification out of Accumulated Other Comprehensive Loss | Reclassifications out of AOCL for the three and nine months ended March 31, 2018 and 2017 consisted of the following (in thousands): Three Months Ended March 31, Nine Months Ended March 31, Details about AOCL components 2018 2017 2018 2017 Affected line item in the Income Statement Gains and losses on cash flow hedges: Forward starting interest rate swaps $ 566 $ 545 $ 1,698 $ 1,635 Interest expense Currency exchange contracts 623 (156 ) 1,350 (477 ) Other expense, net Total before tax 1,189 389 3,048 1,158 Tax impact (291 ) — (747 ) — Provision for income taxes Net of tax $ 898 $ 389 $ 2,301 $ 1,158 Postretirement benefit plans: Amortization of transition obligations $ 24 $ 22 $ 70 $ 67 See note 9 for further details Amortization of prior service (credit) cost (48 ) (119 ) 74 (355 ) See note 9 for further details Recognition of actuarial losses 1,816 2,155 5,384 6,532 See note 9 for further details Total before tax 1,792 2,058 5,528 6,244 Tax impact (448 ) (254 ) (836 ) (810 ) Provision for income taxes Net of tax $ 1,344 $ 1,804 $ 4,692 $ 5,434 |
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 March 31, 2018 and 2017 : 2018 2017 (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 $ (1,037 ) $ 254 $ (783 ) $ (866 ) $ — $ (866 ) Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges 1,189 (291 ) 898 389 — 389 Unrecognized net pension and other postretirement benefit loss (2,271 ) 522 (1,749 ) (970 ) 245 (725 ) Reclassification of net pension and other postretirement benefit loss 1,792 (448 ) 1,344 2,058 (254 ) 1,804 Foreign currency translation adjustments 20,437 (155 ) 20,282 13,706 79 13,785 Other comprehensive income $ 20,110 $ (118 ) $ 19,992 $ 14,317 $ 70 $ 14,387 The amount of income tax allocated to each component of other comprehensive income (loss) for the nine months ended March 31, 2018 and 2017 : 2018 2017 (in thousands) Pre-tax Tax impact Net of tax Pre-tax Tax impact Net of tax Unrealized (loss) gain on derivatives designated and qualified as cash flow hedges $ (2,236 ) $ 548 $ (1,688 ) $ 614 $ — $ 614 Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges 3,048 (747 ) 2,301 1,158 — 1,158 Unrecognized net pension and other postretirement benefit (loss) gain (5,705 ) 1,366 (4,339 ) 4,431 (1,055 ) 3,376 Reclassification of net pension and other postretirement benefit loss 5,528 (836 ) 4,692 6,244 (810 ) 5,434 Foreign currency translation adjustments 54,495 (420 ) 54,075 (26,559 ) 79 (26,480 ) Other comprehensive income (loss) $ 55,130 $ (89 ) $ 55,041 $ (14,112 ) $ (1,786 ) $ (15,898 ) |
Goodwill and Other Intangible34
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
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 nine months ended March 31, 2018: Change in gross goodwill due to translation 7,611 455 — 8,066 Gross goodwill 418,305 41,970 633,211 1,093,486 Accumulated impairment losses (137,204 ) (13,638 ) (633,211 ) (784,053 ) Balance as of March 31, 2018 $ 281,101 $ 28,332 $ — $ 309,433 |
The components of intangible assets | The components of our other intangible assets were as follows: Estimated Useful Life (in years) March 31, 2018 June 30, 2017 (in thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Contract-based 3 to 15 $ 7,066 $ (7,036 ) $ 7,064 $ (7,014 ) Technology-based and other 4 to 20 47,357 (31,244 ) 46,461 (29,061 ) Customer-related 10 to 21 208,107 (84,114 ) 205,502 (74,669 ) Unpatented technology 10 to 30 32,071 (12,566 ) 31,754 (10,589 ) Trademarks 5 to 20 12,600 (9,052 ) 12,401 (8,648 ) Trademarks Indefinite 18,487 — 17,326 — Total $ 325,688 $ (144,012 ) $ 320,508 $ (129,981 ) |
Segment Data (Tables)
Segment Data (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
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 March 31, Nine Months Ended March 31, (in thousands) 2018 2017 2018 2017 Sales: Industrial $ 333,012 $ 289,455 $ 942,922 $ 825,990 Widia 52,217 46,297 145,204 130,186 Infrastructure 222,707 192,878 633,608 537,167 Total sales $ 607,936 $ 528,630 $ 1,721,734 $ 1,493,343 Operating income (loss): Industrial $ 53,029 $ 38,535 $ 131,132 $ 62,138 Widia 1,638 606 2,556 (7,797 ) Infrastructure 31,767 19,770 79,347 22,457 Corporate (1,078 ) (999 ) (3,030 ) (4,084 ) Total operating income 85,356 57,912 210,005 72,714 Interest expense 7,468 7,331 21,848 21,475 Other expense, net 647 1,626 2,046 2,470 Income from continuing operations before income taxes $ 77,241 $ 48,955 $ 186,111 $ 48,769 |
New Accounting Standards New Ac
New Accounting Standards New Accounting Standards - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
New Accounting Standards [Abstract] | ||
Excess Tax Benefit from Share-based Compensation, Financing Activities | $ 1.4 | |
Payments Related to Tax Withholding for Share-based Compensation | $ 2.8 |
Supplemental Cash Flow Disclo37
Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash paid during the period for: | ||
Interest | $ 21,091 | $ 20,725 |
Income taxes | 24,087 | 20,013 |
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 | Mar. 31, 2018 | Jun. 30, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives Assets | $ 44 | $ 359 |
Total assets at fair value | 44 | 359 |
Derivatives Liabilities | 1,289 | 910 |
Total liabilities at fair value | 1,289 | 910 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives Assets | 44 | 359 |
Total assets at fair value | 44 | 359 |
Derivatives Liabilities | 1,289 | 910 |
Total liabilities at fair value | 1,289 | 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 | Mar. 31, 2018 | Jun. 30, 2017 |
Fair value of derivatives | ||
Derivative, Fair Value, Net | $ (1,245) | $ (551) |
Designated as Hedging Instrument [Member] | ||
Fair value of derivatives | ||
Derivative, Fair Value, Net | (1,262) | (771) |
Not Designated as Hedging Instrument [Member] | ||
Fair value of derivatives | ||
Derivative, Fair Value, Net | 17 | 220 |
Range Forward Contracts [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ||
Fair value of derivatives | ||
Derivative assets designated as hedging instruments | 0 | 1 |
Range Forward Contracts [Member] | Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||
Fair value of derivatives | ||
Derivative liabilities designated as hedging instruments | (1,262) | (671) |
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 | 44 | 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 | $ (27) | $ (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 | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Net Investment Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Loss on Derivative Used in Net Investment Hedge, Net of Tax | $ 1,100 | $ 2,900 | $ 500 | |
Currency Forward Contracts [Member] | Other Expense Income Net [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, (Gain) Loss Recognized in Income, Net | ||||
Other expense (income), net - currency forward contracts | 182 | $ 538 | (26) | 161 |
Range Forward Contracts [Member] | Cash flow hedging [Member] | ||||
Gains and losses related to cash flow hedges | ||||
(Losses) gains recognized in other comprehensive loss, net | (782) | (866) | (1,688) | 615 |
Losses reclassified from accumulated other comprehensive loss into other expense, net | $ 761 | $ 390 | $ 2,024 | $ 1,158 |
Derivative Instruments and He41
Derivative Instruments and Hedging Activities (Details Textual) € in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2018USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2018EUR (€) | Mar. 31, 2018USD ($) | Jun. 30, 2017USD ($) | |
Derivative Instruments and Hedging Activities (Textual) [Abstract] | ||||||
Recognize loss on outstanding derivatives in the next 12 months | $ 1,500 | |||||
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 | 61,600 | $ 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 | 27,126 | 33,414 | ||||
Net Investment Hedge Maturing on November 20, 2018 [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, Notional Amount | 8,687 | 10,700 | ||||
Net Investment Hedge Maturing on October 11, 2019 [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, Notional Amount | € 2,009 | $ 2,475 | ||||
Net Investment Hedging [Member] | ||||||
Additional Derivative Instruments and Hedging Activities (Textual) [Abstract] | ||||||
Loss on Derivative Used in Net Investment Hedge, Net of Tax | $ 1,100 | $ 2,900 | $ 500 |
Restructuring and Related Cha42
Restructuring and Related Charges - Restructuring Accrual (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Restructuring Reserve [Abstract] | ||||
Beginning Balance | $ 29,806 | |||
Restructuring Charges | $ 1,100 | $ 7,100 | 6,664 | $ 44,500 |
Asset Write-Down | (4,096) | |||
Translation | 1,697 | |||
Cash Expenditures | (21,739) | |||
Ending Balance | 12,332 | 12,332 | ||
Industrial [Member] | ||||
Restructuring Reserve [Abstract] | ||||
Beginning Balance | 17,733 | |||
Restructuring Charges | 4,859 | |||
Asset Write-Down | (3,084) | |||
Translation | 1,174 | |||
Cash Expenditures | (15,137) | |||
Ending Balance | 5,545 | 5,545 | ||
Industrial [Member] | Severance [Member] | ||||
Restructuring Reserve [Abstract] | ||||
Beginning Balance | 17,639 | |||
Restructuring Charges | 1,804 | |||
Asset Write-Down | 0 | |||
Translation | 1,171 | |||
Cash Expenditures | (15,099) | |||
Ending Balance | 5,515 | 5,515 | ||
Industrial [Member] | Facilities [Member] | ||||
Restructuring Reserve [Abstract] | ||||
Beginning Balance | 0 | |||
Restructuring Charges | 3,084 | |||
Asset Write-Down | (3,084) | |||
Translation | 0 | |||
Cash Expenditures | 0 | |||
Ending Balance | 0 | 0 | ||
Industrial [Member] | Other Restructuring [Member] | ||||
Restructuring Reserve [Abstract] | ||||
Beginning Balance | 94 | |||
Restructuring Charges | (29) | |||
Asset Write-Down | 0 | |||
Translation | 3 | |||
Cash Expenditures | (38) | |||
Ending Balance | 30 | 30 | ||
WIDIA [Member] | ||||
Restructuring Reserve [Abstract] | ||||
Beginning Balance | 2,434 | |||
Restructuring Charges | 1,125 | |||
Asset Write-Down | (747) | |||
Translation | 250 | |||
Cash Expenditures | (3,059) | |||
Ending Balance | 3 | 3 | ||
WIDIA [Member] | Severance [Member] | ||||
Restructuring Reserve [Abstract] | ||||
Beginning Balance | 2,434 | |||
Restructuring Charges | 384 | |||
Asset Write-Down | 0 | |||
Translation | 249 | |||
Cash Expenditures | (3,067) | |||
Ending Balance | 0 | 0 | ||
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 | 0 | ||
WIDIA [Member] | Other Restructuring [Member] | ||||
Restructuring Reserve [Abstract] | ||||
Beginning Balance | 0 | |||
Restructuring Charges | (6) | |||
Asset Write-Down | 0 | |||
Translation | 1 | |||
Cash Expenditures | 8 | |||
Ending Balance | 3 | 3 | ||
Infrastructure [Member] | ||||
Restructuring Reserve [Abstract] | ||||
Beginning Balance | 9,639 | |||
Restructuring Charges | 680 | |||
Asset Write-Down | (265) | |||
Translation | 273 | |||
Cash Expenditures | (3,543) | |||
Ending Balance | 6,784 | 6,784 | ||
Infrastructure [Member] | Severance [Member] | ||||
Restructuring Reserve [Abstract] | ||||
Beginning Balance | 9,573 | |||
Restructuring Charges | 422 | |||
Asset Write-Down | 0 | |||
Translation | 273 | |||
Cash Expenditures | (3,501) | |||
Ending Balance | 6,767 | 6,767 | ||
Infrastructure [Member] | Facilities [Member] | ||||
Restructuring Reserve [Abstract] | ||||
Beginning Balance | 21 | |||
Restructuring Charges | 265 | |||
Asset Write-Down | (265) | |||
Translation | 0 | |||
Cash Expenditures | (21) | |||
Ending Balance | 0 | 0 | ||
Infrastructure [Member] | Other Restructuring [Member] | ||||
Restructuring Reserve [Abstract] | ||||
Beginning Balance | 45 | |||
Restructuring Charges | (7) | |||
Asset Write-Down | 0 | |||
Translation | 0 | |||
Cash Expenditures | (21) | |||
Ending Balance | $ 17 | $ 17 |
Restructuring and Related Cha43
Restructuring and Related Charges - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Jun. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Incurred Cost | $ 1,700 | $ 9,600 | $ 10,000 | $ 53,100 | |
Restructuring Charges | 1,100 | 7,100 | 6,664 | 44,500 | |
Restructuring Charges Related to Inventory Disposals | (200) | (200) | 300 | ||
Restructuring and Related Cost, Cost Incurred to Date | 157,700 | 157,700 | |||
Assets Held-for-sale, Current and Noncurrent | 5,800 | 5,800 | $ 7,000 | ||
Restructuring Reserve, Current | 11,800 | 11,800 | 27,300 | ||
Restructuring Reserve, Noncurrent | 500 | 500 | $ 2,500 | ||
Industrial [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 4,859 | ||||
Restructuring and Related Cost, Cost Incurred to Date | 85,600 | 85,600 | |||
Infrastructure [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 680 | ||||
Restructuring and Related Cost, Cost Incurred to Date | 50,900 | 50,900 | |||
WIDIA [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 1,125 | ||||
Restructuring and Related Cost, Cost Incurred to Date | 13,900 | 13,900 | |||
Corporate Segment [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Cost Incurred to Date | 7,300 | 7,300 | |||
Cost of Sales [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Related Charges Recorded in Cost of Goods Sold | 900 | 1,700 | 3,300 | 5,800 | |
Operating Expense [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Related Charges Recorded in Cost of Goods Sold | $ (300) | $ 800 | 100 | $ 2,800 | |
Other Restructuring [Member] | Industrial [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | (29) | ||||
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) | 9 Months Ended |
Mar. 31, 2018USD ($)$ / sharesshares | |
Changes in stock options | |
Options outstanding, June 30, 2017 | shares | 1,726,791 |
Options, Granted | shares | 0 |
Options, Exercised | shares | (609,230) |
Options, Lapsed or Forfeited | shares | (94,292) |
Options outstanding, March 31, 2018 | shares | 1,023,269 |
Options vested and expected to vest, March 31, 2018 | shares | 1,020,522 |
Options exercisable, March 31, 2018 | shares | 845,436 |
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 | 35.68 |
Weighted Average Exercise Price, Lapsed or Forfeited | $ / shares | 34.06 |
Weighted Average Exercise Price, Options outstanding, March 31, 2018 | $ / shares | 33.12 |
Weighted Average Exercise Price, Option vested and expected to vest, March 31, 2018 | $ / shares | 33.13 |
Weighted Average Exercise Price, Options exercisable, March 31, 2018 | $ / shares | $ 33.98 |
Weighted Average Remaining Life, Options outstanding, March 31, 2018 | 5 years 2 months |
Weighted Average Remaining Life, Options vested and expected to vest, March 31, 2018 | 5 years 2 months |
Weighted Average Remaining Life, Options exercisable, March 31, 2018 | 4 years 8 months |
Aggregate Intrinsic value, Options outstanding, March 31, 2018 | $ | $ 8,168,000 |
Aggregate Intrinsic Value, Options vested and expected to vest, March 31, 2018 | $ | 8,141,000 |
Aggregate Intrinsic Value, Options exercisable, March 31, 2018 | $ | $ 6,159,000 |
Stock-Based Compensation - Ch45
Stock-Based Compensation - Changes in Restricted Stock Units (Details) | 9 Months Ended |
Mar. 31, 2018$ / 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 | (36,085) |
Unvested restricted stock awards, March 31, 2018 | shares | 409,297 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares | $ 30.91 |
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 | 25.88 |
Weighted Average Fair Value, Unvested restricted stock awards, March 31, 2018 | $ / shares | $ 31.22 |
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 | 434,391 |
Vested, Shares | shares | (417,712) |
Performance metric adjustments, net, Shares | shares | 0 |
Forfeited, Shares | shares | (66,507) |
Unvested restricted stock awards, March 31, 2018 | shares | 1,103,616 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares | $ 30.98 |
Weighted Average Fair Value, Unvested restricted stock awards, June 30, 2017 | $ / shares | 27.66 |
Weighted Average Fair Value, Granted | $ / shares | 37.87 |
Weighted Average Fair Value, Vested | $ / shares | 30.27 |
Weighted Average Fair Value, Performance Metric Not Achieved | $ / shares | 0 |
Weighted Average Fair Value, Unvested restricted stock awards, March 31, 2018 | $ / shares | $ 30.47 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Textual) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
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] | ||
Cash received from the exercise of capital stock option | $ 21.7 | $ 7.2 |
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 | $ 0.6 | 1.3 |
Unrecognized compensation cost | $ 0.2 | |
Unrecognized compensation costs, weighted average period | 5 months 20 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 1.9 | 3.3 |
Tax benefits resulting from stock-based compensation deductions (less than) in excess of amounts reported for financial reporting purposes | 0.1 | 0 |
Tax benefit from the exercise of capital stock option | 1.4 | 0 |
Total Intrinsic value of options exercised | 6.4 | 1.6 |
Restricted Stock Units (RSUs) [Member] | ||
Stock-Based Compensation (Textual) [Abstract] | ||
Compensation expense related to stock option | 15 | $ 15.8 |
Unrecognized compensation cost | $ 18.1 | |
Unrecognized compensation costs, weighted average period | 2 years |
Benefit Plans - Components of N
Benefit Plans - Components of Net Periodic Pension Income (Details) - Pension plans contribution [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Net periodic pension income | ||||
Service cost | $ 414 | $ 720 | $ 1,224 | $ 2,180 |
Interest cost | 7,716 | 7,756 | 23,051 | 23,335 |
Expected return on plan assets | (14,188) | (14,659) | (42,410) | (44,088) |
Amortization of transition obligation | 24 | 22 | 70 | 67 |
Amortization of prior service (credit) cost | (42) | (113) | 90 | (339) |
Recognition of actuarial losses | 1,746 | 2,066 | 5,174 | 6,266 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 0 | (320) | 0 | (320) |
Net periodic pension income | $ (4,330) | $ (4,528) | $ (12,801) | $ (12,899) |
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 | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Net periodic other postretirement benefit costs | ||||
Interest cost | $ 157 | $ 168 | $ 471 | $ 505 |
Amortization of prior service credit | (6) | (6) | (16) | (16) |
Recognition of actuarial loss | 70 | 89 | 210 | 266 |
Net periodic other postretirement benefit cost | $ 221 | $ 251 | $ 665 | $ 755 |
Benefit Plans Benefit Plans - N
Benefit Plans Benefit Plans - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Pension Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | $ 0 | $ 320 | $ 0 | $ 320 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Jun. 30, 2017 |
Inventories | ||
Finished goods | $ 304,313 | $ 290,817 |
Work in process and powder blends | 217,659 | 166,857 |
Raw materials | 88,792 | 87,627 |
Inventories at current cost | 610,764 | 545,301 |
Less: LIFO valuation | (73,559) | (57,620) |
Total inventories | $ 537,205 | $ 487,681 |
Inventories (Textual) [Abstract] | ||
Percentage of inventories valued by using LIFO method | 39.00% | 43.00% |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Jun. 30, 2017 | Apr. 15, 2016 |
Long-Term Debt (Additional Textual) [Abstract] | |||
Fixed rate at fair market value | $ 700.3 | $ 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 | Mar. 31, 2018 | Jun. 30, 2017 |
Environmental Remediation Obligations [Abstract] | ||
Reserves for Environmental Costs | $ 12.8 | $ 12.4 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Taxes - Additional Information [Line Items] | |||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | ||||||||
Provisional tax expense for the deemed repatriation of undistributed foreign earnings | $ 77 | $ 83 | |||||||
Estimated cash payment related to provisional tax expense for the deemed repatriation of undistributed foreign earnings | $ 6.4 | 6.4 | |||||||
Income Taxes Payable, long-current | 5.9 | $ 5.9 | |||||||
Provisional tax expense for the deemed repatriation of undistributed foreign earnings, Increase (decrease) | $ 6 | ||||||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 3.9 | ||||||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 2.9 | ||||||||
Overstatement of deferred tax assets | $ 8.2 | ||||||||
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | 2.80% | ||||||||
Income Tax (Textual) [Abstract] | |||||||||
Effective tax rate | 31.20% | 19.00% | 27.50% | 45.90% | |||||
Scenario, Forecast [Member] | |||||||||
Income Taxes - Additional Information [Line Items] | |||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 28.10% | |||||||
Income Tax Expense (Benefit) [Member] | |||||||||
Income Taxes - Additional Information [Line Items] | |||||||||
Quantifying Misstatement in Current Year Financial Statements, Amount | $ 5.3 |
Earnings Per Shares (Details)
Earnings Per Shares (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share (Textual) [Abstract] | ||||
Increase in weighted average shares due to dilutive effect of unexercised capital stock options and unvested restricted stock units | 1.3 | 1 | 1.2 | 0.7 |
Unexercised capital stock options and restricted stock units excluded from computation of diluted EPS | 1.2 | 0.4 | 1.8 |
Equity (Details)
Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Beginning Balance | $ 1,226,154 | $ 1,052,653 | $ 995,801 | |
Net income | 53,111 | $ 39,654 | 134,907 | 26,368 |
Other comprehensive income (loss) | 19,992 | 14,387 | 55,041 | (15,898) |
Dividend reinvestment | 163 | 188 | ||
Capital stock issued under employee benefit and stock plans | 33,555 | 21,385 | ||
Purchase of capital stock | (163) | (188) | ||
Cash dividends | (50,002) | (48,085) | ||
Ending Balance | 1,226,154 | 979,571 | 1,226,154 | 979,571 |
Capital stock [Member] | ||||
Beginning Balance | 100,832 | 99,618 | ||
Dividend reinvestment | 5 | 7 | ||
Capital stock issued under employee benefit and stock plans | 1,200 | 697 | ||
Purchase of capital stock | (5) | (7) | ||
Ending Balance | 102,032 | 100,315 | 102,032 | 100,315 |
Additional paid-in capital [Member] | ||||
Beginning Balance | 474,547 | 436,617 | ||
Dividend reinvestment | 158 | 181 | ||
Capital stock issued under employee benefit and stock plans | 32,355 | 20,688 | ||
Purchase of capital stock | (158) | (181) | ||
Ending Balance | 506,902 | 457,305 | 506,902 | 457,305 |
Retained earnings [Member] | ||||
Beginning Balance | 765,607 | 780,597 | ||
Net income | 131,651 | 24,495 | ||
Cash dividends | (48,773) | (48,013) | ||
Ending Balance | 848,485 | 757,079 | 848,485 | 757,079 |
Accumulated other comprehensive loss [Member] | ||||
Beginning Balance | (323,692) | (352,509) | ||
Other comprehensive income (loss) | 53,598 | (16,228) | ||
Ending Balance | (270,094) | (368,737) | (270,094) | (368,737) |
Non-controlling interest [Member] | ||||
Beginning Balance | 35,359 | 31,478 | ||
Net income | 3,256 | 1,873 | ||
Other comprehensive income (loss) | 1,443 | 330 | ||
Cash dividends | (1,229) | (72) | ||
Ending Balance | $ 38,829 | $ 33,609 | $ 38,829 | $ 33,609 |
Accumulated Other Comprehensi56
Accumulated Other Comprehensive Loss - Components of and Changes in Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive (Loss) Income [Line Items] | ||||
Accumulated Other Comprehensive Loss, Net of Tax | $ (323,692) | $ (352,509) | ||
Other comprehensive income (loss) before reclassifications | 46,605 | (22,820) | ||
Amounts reclassified from accumulated other comprehensive loss | 6,993 | 6,592 | ||
Net current period other comprehensive income (loss) | 53,598 | (16,228) | ||
Accumulated Other Comprehensive Loss, Net of Tax | $ (270,094) | $ (368,737) | (270,094) | (368,737) |
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 (loss) before reclassifications | (4,339) | 3,376 | ||
Amounts reclassified from accumulated other comprehensive loss | 4,692 | 5,434 | ||
Net current period other comprehensive income (loss) | 353 | 8,810 | ||
Accumulated Other Comprehensive Loss, Net of Tax | (188,685) | (203,353) | (188,685) | (203,353) |
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 (loss) before reclassifications | 52,632 | (26,810) | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | ||
Net current period other comprehensive income (loss) | 52,632 | (26,810) | ||
Accumulated Other Comprehensive Loss, Net of Tax | (73,974) | (158,022) | (73,974) | (158,022) |
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 (loss) before reclassifications | (1,688) | 614 | ||
Amounts reclassified from accumulated other comprehensive loss | 2,301 | 1,158 | ||
Net current period other comprehensive income (loss) | 613 | 1,772 | ||
Accumulated Other Comprehensive Loss, Net of Tax | (7,435) | (7,362) | (7,435) | (7,362) |
Noncontrolling Interest [Member] | ||||
Accumulated Other Comprehensive (Loss) Income [Line Items] | ||||
Accumulated Other Comprehensive Loss, Net of Tax | (2,164) | (3,446) | ||
Other comprehensive income (loss) before reclassifications | 1,443 | 330 | ||
Net current period other comprehensive income (loss) | 1,443 | 330 | ||
Accumulated Other Comprehensive Loss, Net of Tax | (721) | (3,116) | (721) | (3,116) |
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 | (1,792) | (2,058) | (5,528) | (6,244) |
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 | $ 1,189 | $ 389 | $ 3,048 | $ 1,158 |
Accumulated Other Comprehensi57
Accumulated Other Comprehensive Loss - Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items] | ||||
Currency exchange contracts | $ (647) | $ (1,626) | $ (2,046) | $ (2,470) |
Recognition of actuarial losses | 1,792 | 2,058 | 5,528 | 6,244 |
Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges, tax | (291) | 0 | (747) | 0 |
Provision for income taxes | 24,130 | 9,301 | 51,204 | 22,401 |
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 | (1,189) | (389) | (3,048) | (1,158) |
Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges, tax | (291) | 0 | (747) | 0 |
Net of tax | (898) | (389) | (2,301) | (1,158) |
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 | 24 | 22 | 70 | 67 |
Amortization of prior service (credit) cost | (48) | (119) | 74 | (355) |
Recognition of actuarial losses | 1,816 | 2,155 | 5,384 | 6,532 |
Total before tax | 1,792 | 2,058 | 5,528 | 6,244 |
Provision for income taxes | (448) | (254) | (836) | (810) |
Net of tax | 1,344 | 1,804 | 4,692 | 5,434 |
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 | 1,698 | 1,635 |
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 | $ 623 | $ (156) | $ 1,350 | $ (477) |
Accumulated Other Comprehensi58
Accumulated Other Comprehensive Loss Other Comprehensive Income - Income Tax Allocated to Each Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Other Comprehensive Income - Income Tax Allocated to Each Component [Abstract] | ||||
Unrealized (loss) gain on derivatives designated and qualified as cash flow hedges, before tax | $ (1,037) | $ (866) | $ (2,236) | $ 614 |
Unrealized (loss) gain on derivatives designated and qualified as cash flow hedges, tax | 254 | 0 | 548 | 0 |
Unrealized (loss) gain on derivatives designated and qualified as cash flow hedges, net of tax | (783) | (866) | (1,688) | 614 |
Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges, before tax | 1,189 | 389 | 3,048 | 1,158 |
Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges, tax | (291) | 0 | (747) | 0 |
Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges, net of tax | 898 | 389 | 2,301 | 1,158 |
Unrecognized net pension and other postretirement benefit (loss) gain, before tax | (2,271) | (970) | (5,705) | 4,431 |
Unrecognized net pension and other postretirement benefit (loss) gain, tax | 522 | 245 | 1,366 | (1,055) |
Unrecognized net pension and other postretirement benefit (loss) gain, net of tax | (1,749) | (725) | (4,339) | 3,376 |
Reclassification of net pension and other postretirement benefit loss, before tax | 1,792 | 2,058 | 5,528 | 6,244 |
Reclassification of net pension and other postretirement benefit loss, tax | (448) | (254) | (836) | (810) |
Reclassification of net pension and other postretirement benefit loss | 1,344 | 1,804 | 4,692 | 5,434 |
Foreign currency translation adjustment, before tax | 20,437 | 13,706 | 54,495 | (26,559) |
Foreign currency translation adjustment, tax | (155) | 79 | (420) | 79 |
Foreign currency translation adjustment, net of tax | 20,282 | 13,785 | 54,075 | (26,480) |
Other comprehensive income (loss), before tax | 20,110 | 14,317 | 55,130 | (14,112) |
Other comprehensive income (loss), tax | (118) | 70 | (89) | (1,786) |
Other comprehensive income (loss), net of tax | $ 19,992 | $ 14,387 | $ 55,041 | $ (15,898) |
Goodwill and Other Intangible59
Goodwill and Other Intangible Assets - Carrying Amount of Goodwill Attributable to Each Segment (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2018 | Jun. 30, 2017 | |
Goodwill [Roll Forward] | ||
Goodwill | $ 1,093,486 | $ 1,085,420 |
Accumulated impairment losses | (784,053) | (784,053) |
Goodwill, Beginning Balance | 301,367 | |
Goodwill, Foreign Currency Translation Gain (Loss) | 8,066 | |
Goodwill, Ending Balance | 309,433 | |
Industrial [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill | 418,305 | 410,694 |
Accumulated impairment losses | (137,204) | (137,204) |
Goodwill, Beginning Balance | 273,490 | |
Goodwill, Foreign Currency Translation Gain (Loss) | 7,611 | |
Goodwill, Ending Balance | 281,101 | |
Infrastructure [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill | 633,211 | 633,211 |
Accumulated impairment losses | (633,211) | (633,211) |
Goodwill, Beginning Balance | 0 | |
Goodwill, Foreign Currency Translation Gain (Loss) | 0 | |
Goodwill, Ending Balance | 0 | |
WIDIA [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill | 41,970 | 41,515 |
Accumulated impairment losses | (13,638) | $ (13,638) |
Goodwill, Beginning Balance | 27,877 | |
Goodwill, Foreign Currency Translation Gain (Loss) | 455 | |
Goodwill, Ending Balance | $ 28,332 |
Goodwill and Other Intangible60
Goodwill and Other Intangible Assets - Components of Other Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2018 | Jun. 30, 2017 | |
The components of intangible assets | ||
Accumulated amortization | $ (144,012) | $ (129,981) |
Intangible Assets, Gross (Excluding Goodwill) | 325,688 | 320,508 |
Trademarks [Member] | ||
The components of intangible assets | ||
Gross carrying amount, Indefinite | 18,487 | 17,326 |
Contract-based [Member] | ||
The components of intangible assets | ||
Gross carrying amount, finite | 7,066 | 7,064 |
Accumulated amortization | (7,036) | (7,014) |
Technology-based and other [Member] | ||
The components of intangible assets | ||
Gross carrying amount, finite | 47,357 | 46,461 |
Accumulated amortization | (31,244) | (29,061) |
Customer-related [Member] | ||
The components of intangible assets | ||
Gross carrying amount, finite | 208,107 | 205,502 |
Accumulated amortization | (84,114) | (74,669) |
Unpatented technology [Member] | ||
The components of intangible assets | ||
Gross carrying amount, finite | 32,071 | 31,754 |
Accumulated amortization | (12,566) | (10,589) |
Trademarks [Member] | ||
The components of intangible assets | ||
Gross carrying amount, finite | 12,600 | 12,401 |
Accumulated amortization | $ (9,052) | $ (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 Intangible61
Goodwill and Other Intangible Assets (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Jun. 30, 2017 | |
Goodwill and Other Intangible Assets (Additional Textual) [Abstract] | |||||
Goodwill | $ 309,433 | $ 309,433 | $ 301,367 | ||
Amortization expense for intangible assets | 3,690 | $ 4,245 | 11,028 | $ 12,665 | |
Infrastructure [Member] | |||||
Goodwill and Other Intangible Assets (Additional Textual) [Abstract] | |||||
Goodwill | 0 | 0 | 0 | ||
Industrial [Member] | |||||
Goodwill and Other Intangible Assets (Additional Textual) [Abstract] | |||||
Goodwill | 281,101 | 281,101 | 273,490 | ||
WIDIA [Member] | |||||
Goodwill and Other Intangible Assets (Additional Textual) [Abstract] | |||||
Goodwill | $ 28,332 | $ 28,332 | $ 27,877 |
Segment Data - Sales and Operat
Segment Data - Sales and Operating Income (Loss) by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | |||||
Assets | $ 2,617,862 | $ 2,617,862 | $ 2,415,496 | ||
External sales: | |||||
Total sales | 607,936 | $ 528,630 | 1,721,734 | $ 1,493,343 | |
Operating income (loss): | |||||
Total operating (income) loss | (85,356) | (57,912) | (210,005) | (72,714) | |
Interest expense | 7,468 | 7,331 | 21,848 | 21,475 | |
Other expense, net | 647 | 1,626 | 2,046 | 2,470 | |
Income from continuing operations before income taxes | 77,241 | 48,955 | 186,111 | 48,769 | |
Industrial [Member] | |||||
External sales: | |||||
Total sales | 333,012 | 289,455 | 942,922 | 825,990 | |
Operating income (loss): | |||||
Total operating (income) loss | (53,029) | (38,535) | (131,132) | (62,138) | |
Infrastructure [Member] | |||||
External sales: | |||||
Total sales | 222,707 | 192,878 | 633,608 | 537,167 | |
Operating income (loss): | |||||
Total operating (income) loss | (31,767) | (19,770) | (79,347) | (22,457) | |
WIDIA [Member] | |||||
External sales: | |||||
Total sales | 52,217 | 46,297 | 145,204 | 130,186 | |
Operating income (loss): | |||||
Total operating (income) loss | (1,638) | (606) | (2,556) | 7,797 | |
Corporate [Member] | |||||
Operating income (loss): | |||||
Total operating (income) loss | $ 1,078 | $ 999 | $ 3,030 | $ 4,084 |