Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2018 | Jul. 31, 2018 | Dec. 31, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | KENNAMETAL INC | ||
Entity Central Index Key | 55,242 | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2018 | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 2,922,300,000 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 81,647,556 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | |||
Sales | $ 2,367,853 | $ 2,058,368 | $ 2,098,436 |
Cost of goods sold | 1,535,561 | 1,400,661 | 1,482,369 |
Gross profit | 832,292 | 657,707 | 616,067 |
Operating expense | 498,152 | 463,167 | 494,975 |
Restructuring and asset impairment charges (Notes 2 and 15) | 11,907 | 65,018 | 143,810 |
Loss on divestiture (Note 4) | 0 | 0 | 131,463 |
Amortization of intangibles | 14,668 | 16,578 | 20,762 |
Operating income (loss) | 307,565 | 112,944 | (174,943) |
Interest expense | 30,081 | 28,842 | 27,752 |
Other expense (income), net | 2,443 | 2,227 | (4,124) |
Income (loss) before income taxes | 275,041 | 81,875 | (198,571) |
Provision for income taxes (Note 12) | 69,981 | 29,895 | 25,313 |
Net income (loss) | 205,060 | 51,980 | (223,884) |
Less: Net income attributable to noncontrolling interests | 4,880 | 2,842 | 2,084 |
Net income (loss) attributable to Kennametal | $ 200,180 | $ 49,138 | $ (225,968) |
PER SHARE DATA ATTRIBUTABLE TO KENNAMETAL SHAREHOLDERS | |||
Basic earnings (loss) per share | $ 2.45 | $ 0.61 | $ (2.83) |
Diluted earnings (loss) per share | 2.42 | 0.61 | (2.83) |
Dividends per share | $ 0.80 | $ 0.80 | $ 0.80 |
Basic weighted average shares outstanding | 81,544 | 80,351 | 79,835 |
Diluted weighted average shares outstanding | 82,754 | 81,169 | 79,835 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 205,060 | $ 51,980 | $ (223,884) |
Unrealized loss on derivatives designated and qualified as cash flow hedges | (922) | (471) | (150) |
Reclassification of unrealized loss (gain) on expired derivatives designated and qualified as cash flow hedges | 3,747 | 1,557 | (1,563) |
Unrecognized net pension and other postretirement benefit (loss) gain | (5,991) | 15,559 | (78,295) |
Reclassification of net pension and other postretirement benefit loss | 7,274 | 7,566 | 4,925 |
Foreign currency translation adjustments | (1,490) | 5,888 | (52,695) |
Reclassification of foreign currency translation adjustment loss realized upon sale | 0 | 0 | 15,088 |
Other comprehensive income (loss), net of tax | 2,618 | 30,099 | (112,690) |
Total comprehensive income (loss) | 207,678 | 82,079 | (336,574) |
Less: comprehensive income attributable to noncontrolling interests | (4,131) | (4,124) | (896) |
Comprehensive income (loss) attributable to Kennametal Shareholders | $ 203,547 | $ 77,955 | $ (337,470) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 556,153 | $ 190,629 |
Accounts receivable, less allowance for doubtful accounts of $11,807 and $13,693, respectively | 401,290 | 380,425 |
Inventories (Note 7) | 525,466 | 487,681 |
Other current assets | 63,257 | 55,166 |
Total current assets | 1,546,166 | 1,113,901 |
Property, plant and equipment: | ||
Land and buildings | 351,953 | 350,002 |
Machinery and equipment | 1,702,243 | 1,577,776 |
Less accumulated depreciation | (1,229,983) | (1,183,390) |
Property, plant and equipment, net | 824,213 | 744,388 |
Other assets: | ||
Assets held for sale (Note 15) | 0 | 6,980 |
Goodwill (Notes 2 and 8) | 301,802 | 301,367 |
Other intangible assets, less accumulated amortization of $145,334 and $129,981, respectively (Notes 2 and 8) | 176,468 | 190,527 |
Deferred income taxes (Note 12) | 17,015 | 28,349 |
Long-term prepaid pension benefit (Note 13) | 42,543 | 17,208 |
Other | 17,530 | 12,776 |
Total other assets | 555,358 | 557,207 |
Total assets | 2,925,737 | 2,415,496 |
Current liabilities: | ||
Current maturities of long-term debt and capital leases (Note 10) | 399,266 | 190 |
Notes payable to banks (Note 11) | 934 | 735 |
Accounts payable | 221,903 | 215,722 |
Accrued income taxes | 18,603 | 6,202 |
Accrued vacation pay | 18,078 | 18,108 |
Accrued payroll | 77,161 | 67,574 |
Other current liabilities (Note 9) | 150,586 | 152,947 |
Total current liabilities | 886,531 | 461,478 |
Long-term debt and capital leases, less current maturities (Note 10) | 591,505 | 694,991 |
Deferred income taxes (Note 12) | 26,991 | 14,883 |
Accrued postretirement benefits (Note 13) | 13,725 | 16,906 |
Accrued pension benefits (Note 13) | 145,797 | 143,954 |
Accrued income taxes | 6,249 | 2,636 |
Other liabilities | 24,612 | 27,995 |
Total liabilities | 1,695,410 | 1,362,843 |
Commitments and contingencies (Note 19) | ||
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; 81,646 and 80,665 shares issued respectively | 102,058 | 100,832 |
Additional paid-in capital | 511,909 | 474,547 |
Retained earnings | 900,683 | 765,607 |
Accumulated other comprehensive loss (Note 14) | (320,325) | (323,692) |
Total Kennametal Shareholders' Equity | 1,194,325 | 1,017,294 |
Noncontrolling interests | 36,002 | 35,359 |
Total equity | 1,230,327 | 1,052,653 |
Total liabilities and equity | $ 2,925,737 | $ 2,415,496 |
Consolidated Balance Sheets(Par
Consolidated Balance Sheets(Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 11,807 | $ 13,693 |
Accumulated amortization on other intangible assets | $ 145,334 | $ 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 | 81,646 | 80,665 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
OPERATING ACTIVITIES | |||
Net income (loss) | $ 205,060 | $ 51,980 | $ (223,884) |
Adjustments for non-cash items: | |||
Depreciation | 94,012 | 91,078 | 96,704 |
Amortization | 14,668 | 16,578 | 20,762 |
Stock-based compensation expense | 20,830 | 21,065 | 18,129 |
Restructuring and asset impairment charges (Notes 2 and 15) | (248) | 1,802 | 118,779 |
Loss on divestiture (Note 4) | 131,124 | ||
Deferred income tax provision | 22,915 | 6,267 | 8,328 |
Other | 4,651 | 94 | (6,113) |
Changes in certain assets and liabilities: | |||
Accounts receivable | (22,201) | (7,606) | 32,661 |
Inventories | (37,230) | (24,300) | 69,552 |
Accounts payable and accrued liabilities | (5,046) | 54,554 | 991 |
Accrued income taxes | 11,093 | 6,873 | (25,247) |
Accrued pension and postretirement benefits | (26,759) | (27,818) | (15,013) |
Other | (4,441) | 4,771 | (4,280) |
Net cash flow provided by operating activities | 277,304 | 195,338 | 222,493 |
INVESTING ACTIVITIES | |||
Purchases of property, plant and equipment | (171,004) | (118,018) | (110,697) |
Disposals of property, plant and equipment | 14,358 | 5,023 | 5,978 |
Proceeds from divestiture (Note 4) | 0 | 0 | 56,127 |
Other | (225) | 247 | 659 |
Net cash flow used for investing activities | (156,871) | (112,748) | (47,933) |
FINANCING ACTIVITIES | |||
Net increase (decrease) in notes payable | 495 | (317) | (6,288) |
Term debt borrowings | 295,863 | 25,298 | 50,070 |
Term debt repayments | (190) | (25,899) | (94,577) |
Purchase of capital stock | (217) | (241) | (295) |
The effect of employee benefit and stock plans and dividend reinvestment | 17,975 | 18,319 | 1,348 |
Cash dividends paid to Shareholders | (65,104) | (64,128) | (63,717) |
Other | (1,625) | (6,317) | (181) |
Net cash flow provided by (used for) financing activities | 247,197 | (53,285) | (113,640) |
Effect of exchange rate changes on cash and cash equivalents | (2,106) | (255) | (4,835) |
CASH AND CASH EQUIVALENTS | |||
Net increase in cash and cash equivalents | 365,524 | 29,050 | 56,085 |
Cash and cash equivalents, beginning of year | 190,629 | 161,579 | 105,494 |
Cash and cash equivalents, end of year | $ 556,153 | $ 190,629 | $ 161,579 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interests [Member] |
Additions to noncontrolling interests | $ 0 | |||||
Beginning Balance, Shares at Jun. 30, 2015 | 79,375 | |||||
Beginning Balance at Jun. 30, 2015 | $ 99,219 | $ 419,829 | $ 1,070,282 | $ (243,523) | 29,628 | |
Dividend reinvestment, Shares | 12 | |||||
Dividend reinvestment | $ 15 | 279 | ||||
Capital stock issued under employee benefit and stock plans, Shares | 319 | |||||
Capital stock issued under employee benefit and stock plans | $ 399 | 14,271 | ||||
Purchase of capital stock, Shares | (12) | |||||
Purchase of capital stock | $ (15) | (279) | ||||
Sale of subsidiary stock to noncontrolling interests | 2,517 | 2,517 | 2,566 | |||
Net income (loss) | $ (223,884) | (225,968) | 2,084 | |||
Cash dividends paid to Shareholders | (63,717) | (1,612) | ||||
Unrealized loss on derivatives designated and qualified as cash flow hedges | (150) | (150) | ||||
Reclassification of unrealized loss (gain) on expired derivatives designated and qualified as cash flow hedges | (1,563) | (1,563) | ||||
Unrecognized net pension and other postretirement benefit (loss) gain | (78,295) | (78,295) | ||||
Reclassification of net pension and other postretirement benefit loss | 4,925 | 4,925 | ||||
Foreign currency translation adjustments, net of tax | (52,695) | (51,508) | ||||
Reclassification of foreign currency translation adjustment loss realized upon sale | 15,088 | 15,088 | ||||
Other comprehensive income (loss), net of tax | (112,690) | (111,503) | (1,188) | |||
Ending Balance, Shares at Jun. 30, 2016 | 79,694 | |||||
Ending Balance at Jun. 30, 2016 | 995,801 | $ 99,618 | 436,617 | 780,597 | (352,509) | 31,478 |
Additions to noncontrolling interests | 0 | |||||
Dividend reinvestment, Shares | 7 | |||||
Dividend reinvestment | $ 9 | 235 | ||||
Capital stock issued under employee benefit and stock plans, Shares | 971 | |||||
Capital stock issued under employee benefit and stock plans | $ 1,214 | 37,930 | ||||
Purchase of capital stock, Shares | (7) | |||||
Purchase of capital stock | $ (9) | (235) | ||||
Sale of subsidiary stock to noncontrolling interests | 0 | 0 | 0 | |||
Net income (loss) | 51,980 | 49,138 | 2,842 | |||
Cash dividends paid to Shareholders | (64,128) | (243) | ||||
Unrealized loss on derivatives designated and qualified as cash flow hedges | (471) | (471) | ||||
Reclassification of unrealized loss (gain) on expired derivatives designated and qualified as cash flow hedges | 1,557 | 1,557 | ||||
Unrecognized net pension and other postretirement benefit (loss) gain | 15,559 | 15,559 | ||||
Reclassification of net pension and other postretirement benefit loss | 7,566 | 7,566 | ||||
Foreign currency translation adjustments, net of tax | 5,888 | 4,606 | ||||
Reclassification of foreign currency translation adjustment loss realized upon sale | 0 | 0 | ||||
Other comprehensive income (loss), net of tax | 30,099 | 28,817 | 1,282 | |||
Ending Balance, Shares at Jun. 30, 2017 | 80,665 | |||||
Ending Balance at Jun. 30, 2017 | 1,052,653 | $ 100,832 | 474,547 | 765,607 | (323,692) | 35,359 |
Additions to noncontrolling interests | 591 | |||||
Dividend reinvestment, Shares | 5 | |||||
Dividend reinvestment | $ 7 | 210 | ||||
Capital stock issued under employee benefit and stock plans, Shares | 981 | |||||
Capital stock issued under employee benefit and stock plans | $ 1,226 | 37,362 | ||||
Purchase of capital stock, Shares | (5) | |||||
Purchase of capital stock | $ (7) | (210) | ||||
Sale of subsidiary stock to noncontrolling interests | 0 | 0 | 0 | |||
Net income (loss) | 205,060 | 200,180 | 4,880 | |||
Cash dividends paid to Shareholders | (65,104) | (4,079) | ||||
Unrealized loss on derivatives designated and qualified as cash flow hedges | (922) | (922) | ||||
Reclassification of unrealized loss (gain) on expired derivatives designated and qualified as cash flow hedges | 3,747 | 3,747 | ||||
Unrecognized net pension and other postretirement benefit (loss) gain | (5,991) | (5,991) | ||||
Reclassification of net pension and other postretirement benefit loss | 7,274 | 7,274 | ||||
Foreign currency translation adjustments, net of tax | (1,490) | (741) | ||||
Reclassification of foreign currency translation adjustment loss realized upon sale | 0 | 0 | ||||
Other comprehensive income (loss), net of tax | 2,618 | 3,367 | (749) | |||
Ending Balance, Shares at Jun. 30, 2018 | 81,646 | |||||
Ending Balance at Jun. 30, 2018 | $ 1,230,327 | $ 102,058 | $ 511,909 | $ 900,683 | $ (320,325) | $ 36,002 |
Nature of operations
Nature of operations | 12 Months Ended |
Jun. 30, 2018 | |
Nature of operations [Abstract] | |
Nature of Operations [Text Block] | NATURE OF OPERATIONS Kennametal Inc. is a global leader in the development and application of tungsten carbides, ceramics, super-hard materials and solutions used in metal cutting and mission-critical wear applications to combat extreme conditions associated with wear fatigue, corrosion and high temperatures. The Company's reputation for material technology, metal cutting application knowledge, as well as expertise and innovation in the development of custom solutions and services, contributes to its leading position in its primary markets. Our product offering includes a wide selection of standard and customized technologies for metalworking applications, such as turning, milling, hole making, tooling systems and services. End users of the Company's metalworking products include manufacturers engaged in a diverse array of industries including: the manufacturers of transportation vehicles and components, machine tools and light and heavy machinery; airframe and aerospace components; and energy-related components for the oil and gas industry, as well as power generation. In addition, we produce specialized wear components and metallurgical powders that are used for custom-engineered and challenging applications. End users of these products include producers and suppliers in equipment-intensive operations such as coal mining, road construction, quarrying, oil and gas exploration, refining, production and supply. Unless otherwise specified, any reference to a “year” is to a fiscal year ended June 30. When used in this Annual Report on Form 10-K, unless the context requires otherwise, the terms “we,” “our” and “us” refer to Kennametal Inc. and its subsidiaries. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The summary of our significant accounting policies is presented below to assist in evaluating our consolidated financial statements. PRINCIPLES OF CONSOLIDATION The consolidated financial statements include our accounts and those of our majority-owned subsidiaries. All significant intercompany balances and transactions are eliminated. Investments in entities of less than 50 percent of the voting stock over which we have significant influence are accounted for on an equity basis. The factors used to determine significant influence include, but are not limited to, our management involvement in the investee, such as hiring and setting compensation for management of the investee, the ability to make operating and capital decisions of the investee, representation on the investee’s board of directors and purchase and supply agreements with the investee. Investments in entities of less than 50 percent of the voting stock in which we do not have significant influence are accounted for on the cost basis. USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS In preparing our consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP), we make judgments and estimates about the amounts reflected in our financial statements. As part of our financial reporting process, our management collaborates to determine the necessary information on which to base our judgments and develop estimates used to prepare the financial statements. We use historical experience and available information to make these judgments and estimates. However, different amounts could be reported using different assumptions and in light of different facts and circumstances. Therefore, actual amounts could differ from the estimates reflected in our financial statements. CASH AND CASH EQUIVALENTS Cash investments having original maturities of three months or less are considered cash equivalents. Cash equivalents principally consist of investments in money market funds and bank deposits at June 30, 2018 . ACCOUNTS RECEIVABLE We market our products to a diverse customer base throughout the world. Trade credit is extended based upon periodically updated evaluations of each customer’s ability to satisfy its obligations. We make judgments as to our ability to collect outstanding receivables and provide allowances for the portion of receivables when collection becomes doubtful. Accounts receivable reserves are determined based upon an aging of accounts and a review of specific accounts. INVENTORIES We use the last-in, first-out (LIFO) method for determining the cost of a significant portion of our United States ((U.S.) inventories, and they are stated at the lower of cost or market. The cost of the remainder of our inventories is measured using approximate costs determined on the first-in, first-out basis or using the average cost method, and are stated at the lower of cost or net realizable value. When market conditions indicate an excess of carrying costs over market value, a lower of cost or net realizable value provision or a lower of cost or market provision, as applicable, is recorded. Excess and obsolete inventory reserves are established based upon our evaluation of the quantity of inventory on hand relative to demand. The excess and obsolete inventory reserve at June 30, 2018 and 2017 was $31.3 million and $32.1 million , respectively. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are carried at cost. Major improvements are capitalized, while maintenance and repairs are expensed as incurred. Retirements and disposals are removed from cost and accumulated depreciation accounts, with the gain or loss reflected in operating income. Interest related to the construction of major facilities is capitalized as part of the construction costs and is depreciated over the facilities' estimated useful lives. Depreciation for financial reporting purposes is computed using the straight-line method over the following estimated useful lives: building and improvements over 15 - 40 years; machinery and equipment over 4 - 15 years; furniture and fixtures over 5 - 10 years and computer hardware and software over 3 - 5 years. Leased property and equipment under capital leases are depreciated using the straight-line method over the terms of the related leases. LONG-LIVED ASSETS We evaluate the recoverability of property, plant and equipment and intangible assets that are amortized, whenever events or changes in circumstances indicate the carrying amount of any such assets may not be fully recoverable. Changes in circumstances include technological advances, changes in our business model, capital structure, economic conditions or operating performance. Our evaluation is based upon, among other things, our assumptions about the estimated future undiscounted cash flows these assets are expected to generate. When the sum of the undiscounted cash flows is less than the carrying value of the asset or asset group, we will recognize an impairment loss to the extent that carrying value exceeds fair value. We apply our best judgment when performing these evaluations to determine if a triggering event has occurred, the undiscounted cash flows used to assess recoverability and the fair value of the asset. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill represents the excess of cost over the fair value of the net assets of acquired companies. Goodwill and other intangible assets with indefinite lives are tested at least annually for impairment. We perform our annual impairment tests during the June quarter in connection with our annual planning process unless there are impairment indicators based on the results of an ongoing cumulative qualitative assessment that warrant a test prior to that quarter. 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. The majority of our intangible assets with definite lives are amortized on a straight-line basis, while certain customer-related intangible assets are amortized on an accelerated method. Identifiable assets with finite lives are reviewed for impairment when events or circumstances indicate that the carrying value may not be recoverable. 2016 December Quarter Impairment Charge As previously disclosed, we recorded a preliminary non-cash pre-tax impairment charge during the three months ended December 31, 2015 of $106.1 million in the Infrastructure segment, of which $105.7 million was for goodwill and $0.4 million was for an indefinite-lived trademark intangible asset. We also recorded a preliminary non-cash pre-tax impairment charge during the three months ended December 31, 2015 of $2.3 million in the Widia segment for an indefinite-lived trademark intangible asset. These impairment charges are recorded in restructuring and asset impairment charges in our consolidated statements of income. 2016 Divestiture Impact on Goodwill During 2016, we completed the sale of non-core businesses. See Note 4. As a result of this transaction, goodwill decreased by $1.1 million and $6.5 million in our Industrial and Infrastructure segments, respectively. These decreases are recorded in loss on divestiture in our consolidated statements of income. 2016 Divestiture Impact on Other Intangible Assets The divestiture of non-core businesses completed during 2016 resulted in a reduction of $30.0 million in customer-related, $15.4 million in unpatented technology, $5.0 million in indefinite-lived trademarks, $1.1 million in definite-lived trademarks, $0.8 million in technology-based and other and $0.5 million in contract-based. 2017 Reorganization Impact on Goodwill At the beginning of fiscal 2017, we reorganized our operating structure in a manner that changed the composition of our reporting units. The Industrial and Widia reporting units in fiscal 2017 were formed from the fiscal 2016 Industrial reporting unit. In connection with this reporting unit realignment, during the first quarter of fiscal 2017 we updated our goodwill impairment assessment based on a quantitative analysis. We allocated our goodwill from the former Industrial segment to the current Industrial and Widia segments using a relative fair value approach. We evaluated the goodwill of our reporting units immediately prior to and after the realignment and concluded in both cases that there was no impairment. We performed our annual goodwill and indefinite-lived intangible assets impairment test during the June quarter of fiscal 2018 and concluded that there was no impairment. PENSION AND OTHER POSTRETIREMENT BENEFITS We sponsor these types of benefit plans for certain employees and retirees. Accounting for the cost of these plans requires the estimation of the cost of the benefits to be provided well into the future and attributing that cost over either the expected work life of employees or over average life of participants participating in these plans, depending on plan status and on participant population. This estimation requires our judgment about the discount rate used to determine these obligations, expected return on plan assets, rate of future compensation increases, rate of future health care costs, withdrawal and mortality rates and participant retirement age. Differences between our estimates and actual results may significantly affect the cost of our obligations under these plans. In the valuation of our pension and other postretirement benefit liabilities, management utilizes various assumptions. Discount rates are derived by identifying a theoretical settlement portfolio of high quality corporate bonds sufficient to provide for a plan’s projected benefit payments. This rate can fluctuate based on changes in the corporate bond yields. The long-term rate of return on plan assets is estimated based on an evaluation of historical returns for each asset category held by the plans, coupled with the current and short-term mix of the investment portfolio. The historical returns are adjusted for expected future market and economic changes. This return will fluctuate based on actual market returns and other economic factors. The rate of future health care costs is based on historical claims and enrollment information projected over the next year and adjusted for administrative charges. This rate is expected to decrease until 2027. Future compensation rates, withdrawal rates and participant retirement age are determined based on historical information. These assumptions are not expected to significantly change. Mortality rates are determined based on a review of published mortality tables. EARNINGS PER SHARE Basic earnings per share is computed using the weighted average number of shares outstanding during the period, while diluted earnings per share is calculated to reflect the potential dilution that 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 1.2 million shares and 0.8 million shares for the fiscal year ended June 30, 2018 and 2017 , respectively. Unexercised capital stock options, performance awards and restricted stock units of 0.4 million shares and 1.4 million shares for the fiscal year ended June 30, 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. In 2016 , the effect of unexercised capital stock options, unvested performance awards and unvested restricted stock units was anti-dilutive as a result of a net loss in the periods and therefore has been excluded from diluted shares outstanding as well as from the diluted earnings per share calculation. REVENUE RECOGNITION We recognize revenue for our products and assembled machines when title and all risks of loss and damages pass to the buyer. Our general conditions of sale explicitly state that the delivery of our products and assembled machines is freight on board shipping point and that title and all risks of loss and damage pass to the buyer upon delivery of the sold products or assembled machines to the common carrier. We recognize revenue related to the sale of specialized assembled machines upon customer acceptance and installation, as installation is deemed essential to the functionality of a specialized assembled machine. Sales of specialized assembled machines were immaterial for 2018 , 2017 and 2016 . Our general conditions of sale explicitly state that acceptance of the conditions of shipment are considered to have occurred unless written notice of objection is received by Kennametal within 10 calendar days of the date specified on the invoice. We do not ship products or assembled machines unless we have documentation from our customers authorizing shipment. The majority of our products are consumed by our customers in the manufacture of their products. Historically, we have experienced very low levels of returned products and assembled machines and do not consider the effect of returned products and assembled machines to be material. We have recorded an estimated returned goods allowance to provide for any potential returns. We warrant that products and services sold are free from defects in material and workmanship under normal use and service when correctly installed, used and maintained. This warranty terminates 30 days after delivery of the product to the customer and does not apply to products that have been subjected to misuse, abuse, neglect or improper storage, handling or maintenance. Products may be returned to Kennametal, only after inspection and approval by Kennametal and upon receipt by the customer of shipping instructions from Kennametal. We have included an estimated allowance for warranty returns in our returned goods allowance. STOCK-BASED COMPENSATION We recognize stock-based compensation expense for all stock options, restricted stock awards and restricted stock units over the period from the date of grant to the date when the award is no longer contingent on the employee providing additional service (substantive vesting period), net of expected forfeitures. We utilize the Black-Scholes valuation method to establish the fair value of all stock option awards. Time vesting stock units are valued at the market value of the stock on the grant date. Performance vesting stock units with a market condition are valued using a Monte Carlo model. Capital stock options are granted to eligible employees at fair market value at the date of grant. Capital stock options are exercisable under specified conditions for up to 10 years from the date of grant. The Kennametal Inc. Stock and Incentive Plan of 2010, as Amended and Restated on October 22, 2013, and as further amended January 27, 2015 (A/R 2010 Plan) and the Kennametal Inc. 2016 Stock and Incentive Plan (2016 Plan) authorize the issuance of up to 9,500,000 shares of the Company’s capital stock plus any shares remaining unissued under the Kennametal Inc. Stock and Incentive Plan of 2002, as amended (2002 Plan). Under the provisions of the A/R 2010 Plan and 2016 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 2018 , 2017 and 2016 was immaterial. In addition to stock option grants, the A/R 2010 Plan and the 2016 Plan permit the award of stock appreciation rights, performance share awards, performance unit awards, restricted stock awards, restricted unit awards and share awards to directors, officers and key employees. RESEARCH AND DEVELOPMENT COSTS Research and development costs of $38.9 million , $38.0 million and $39.4 million in 2018 , 2017 and 2016 , respectively, were expensed as incurred. These costs are included in operating expense in the consolidated statements of income. SHIPPING AND HANDLING FEES AND COSTS All fees billed to customers for shipping and handling are classified as a component of sales. All costs associated with shipping and handling are classified as a component of cost of goods sold. INCOME TAXES Deferred income taxes are recognized based on the future income tax effects (using enacted tax laws and rates) of differences in the carrying amounts of assets and liabilities for financial reporting and tax purposes. A valuation allowance is recognized if it is “more likely than not” that some or all of a deferred tax asset will not be realized. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES As part of our financial risk management program, we use certain derivative financial instruments. We do not enter into derivative transactions for speculative purposes and, therefore, hold no derivative instruments for trading purposes. We use derivative financial instruments to provide predictability to the effects of changes in foreign exchange rates on our consolidated results, achieve our targeted mix of fixed and floating interest rates on our outstanding debt. Our objective in managing foreign exchange exposures with derivative instruments is to reduce volatility in cash flow, allowing us to focus more of our attention on business operations. With respect to interest rate management, these derivative instruments allow us to achieve our targeted fixed-to-floating interest rate mix, as a separate decision from funding arrangements, in the bank and public debt markets. We account for derivative instruments as a hedge of the related asset, liability, firm commitment or anticipated transaction, when the derivative is specifically designated as a hedge of such items. We measure hedge effectiveness by assessing the changes in the fair value or expected future cash flows of the hedged item. The ineffective portions are recorded in other expense (income), net. Certain currency forward contracts hedging significant cross-border intercompany loans are considered other derivatives and, therefore, do not qualify for hedge accounting. These contracts are recorded at fair value in the balance sheet, with the offset to other expense (income), net. CASH FLOW HEDGES Currency Forward contracts and range forward contracts (a transaction where both a put option is purchased and a call option is sold) are designated as cash flow hedges and hedge anticipated cash flows from cross-border intercompany sales of products and services. Gains and losses realized on these contracts are recorded in accumulated other comprehensive (loss) income, and are recognized as a component of other expense (income), net when the underlying sale of products or services is recognized into earnings. FAIR VALUE HEDGES Interest Rate Fixed-to-floating interest rate swap contracts, designated as fair value hedges, are entered into from time to time to hedge our exposure to fair value fluctuations on a portion of our fixed rate debt. These interest rate swap contracts convert a portion of our fixed rate debt to floating rate debt. When in place, these contracts require periodic settlement, and the difference between amounts to be received and paid under the contracts is recognized in interest expense. NET INVESTMENT HEDGES We designate financial instruments as net investment hedges from time to time to hedge the foreign exchange exposure of our net investment in foreign currency-based subsidiaries. The remeasurements of these non-derivatives designated as net investment hedges are calculated each period with changes reported in foreign currency translation adjustment within accumulated other comprehensive loss. Such amounts will remain in accumulated other comprehensive loss unless we complete or substantially complete liquidation or disposal of our investment in the underlying foreign operations. CURRENCY TRANSLATION Assets and liabilities of international operations are translated into U.S. dollars using year-end exchange rates, while revenues and expenses are translated at average exchange rates throughout the year. The resulting net translation adjustments are recorded as a component of accumulated other comprehensive loss. The local currency is the functional currency of most of our locations. Losses of $6.4 million and $6.7 million and a gain of $1.6 million from currency transactions were included in other expense (income), net in 2018 , 2017 and 2016 , respectively. 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 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 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 $3.1 million and $3.2 million in 2017 and 2016, respectively. 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 consolidated financial statements. Issued In June 2018, the FASB issued ASU No. 2018-07, “Improvements to Nonemployee Share-Based Payment Accounting" which expands the scope of accounting for stock-based compensation to nonemployees. This guidance is effective for Kennametal July 1, 2019. We are in the process of assessing the impact the adoption of this guidance may have on our consolidated financial statements. 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 optional and is effective for Kennametal 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 consolidated financial statements and determining whether we will adopt this guidance. In August 2017, the FASB issued ASU No. 2017-12, "Targeted Improvements to Accounting for Hedging Activities," which seeks to improve financial reporting and obtain closer alignment with risk management activities, in addition to simplifying the application of hedge accounting guidance and additional disclosures. This guidance is effective for Kennametal July 1, 2019. We are in the process of assessing the impact the adoption of this guidance may have on our consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, "Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting," which clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. This guidance is effective for Kennametal beginning July 1, 2018. We do not expect the adoption of this guidance to have a material effect on our consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, "Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost," which requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. This guidance is effective for Kennametal beginning July 1, 2018, with the amendments to be applied retrospectively. We expect to reclassify combined effects of pension income and postretirement benefit cost of approximately $17 million and $18 million out of operating income and into non-operating income for 2018 and 2017, respectively, when comparative financial information is presented going forward. In October 2016, the FASB issued ASU No. 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory," which clarifies that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. This guidance is effective for Kennametal beginning July 1, 2018. We do not expect the adoption of this guidance to have a material effect on our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, "Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force)," which addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice with respect to how these are classified in the statement of cash flows. This guidance is effective for Kennametal beginning July 1, 2018. We do not expect the adoption of this guidance to have a material effect on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, "Measurement of Credit Losses on Financial Instruments," which introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. Beyond other modifications in the update, the scope of this amendment includes valuation of trade receivables. This standard is effective for Kennametal beginning July 1, 2020. We are in the process of assessing the impact the adoption of this guidance will have on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases: Topic 842," which replaces the existing guidance in ASC 840, Leases. The standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. This standard is effective for Kennametal beginning July 1, 2019. We have a project team in place that will begin inventorying our leasing arrangements. We are in the process of assessing the impact the adoption of this guidance will have on our consolidated financial statements. As of June 30, 2018 , our undiscounted future minimum payments outstanding for lease obligations were approximately $65 million . In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers: Topic 606.” This ASU, along with subsequent complementary updates in ASU Nos. 2015-14, 2016-08, 2016-10 and 2016-12 among others, 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 adopted 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, and concluded that the new standard will not affect the timing nor measurement of revenue for these contracts in comparison to the results of historical accounting policies and practices. We do not expect the adoption of this guidance to have a material effect on our consolidated financial statements other than additional disclosures. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Jun. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW DISCLOSURES | SUPPLEMENTAL CASH FLOW DISCLOSURES Year ended June 30 (in thousands) 2018 2017 2016 Cash paid during the period for: Income taxes $ 35,974 $ 16,755 $ 43,733 Interest 27,887 27,529 26,250 Supplemental disclosure of non-cash information: Changes in accounts payable related to purchases of property, plant and equipment 9,500 (3,900 ) 1,000 |
Divestiture
Divestiture | 12 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
DIVESTITURE | DIVESTITURE In 2016, we completed the transaction to sell all of the outstanding capital stock of: Kennametal Extrude Hone LLC and its wholly owned subsidiaries, Kennametal Stellite S.r.l. (Bellusco, Italy), Kennametal Stellite S.p.A. (Milan, Italy), Kennametal Stellite GmbH (Koblenz, Germany); and all of the assets of the businesses of: Tricon (manufacturing operations in Birmingham, Alabama; Chicago, Illinois; and Elko, Nevada), Landis (manufacturing operation in Waynesboro, Pennsylvania); and all of the assets located at the Biel, Switzerland manufacturing facility ("non-core businesses") to Madison Industries for an aggregate price of $56.1 million cash, net of cash. A portion of the transaction proceeds were used to pay down revolver debt and the remaining balance is being held as cash on hand. The net book value of these non-core businesses was $191.9 million . The pre-tax net loss on divestiture recognized in 2016 was $131.5 million , of which $127.9 million and $3.6 million were recorded in the Infrastructure and Industrial segments, respectively. The pre-tax income attributable to the non-core businesses was assessed and determined to be immaterial for disclosure for the periods presented. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy consists of three levels to prioritize the inputs used in valuations, as defined below: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3: Inputs that are unobservable. As of June 30, 2018 , the fair values of the Company’s financial assets and financial liabilities measured at fair value on a recurring basis are categorized as follows: (in thousands) Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 1,665 $ — $ 1,665 Total assets at fair value $ — $ 1,665 $ — $ 1,665 Liabilities: Derivatives (1) $ — $ 207 $ — $ 207 Total liabilities at fair value $ — $ 207 $ — $ 207 As of June 30, 2017 , the fair value of the Company’s financial assets and financial liabilities measured at fair value on a recurring basis are categorized as follows: (in thousands) Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 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 | 12 Months Ended |
Jun. 30, 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. See Note 2 for discussion on our derivative instruments and hedging activities policy. The fair value of derivatives designated and not designated as hedging instruments in the consolidated balance sheet are as follows: (in thousands) 2018 2017 Derivatives designated as hedging instruments Other current assets - range forward contracts $ 799 $ 1 Other current liabilities - range forward contracts (5 ) (671 ) Other assets - range forward contracts 27 — Other liabilities - range forward contracts — (101 ) Total derivatives designated as hedging instruments 821 (771 ) Derivatives not designated as hedging instruments Other current assets - currency forward contracts 839 358 Other current liabilities - currency forward contracts (202 ) (138 ) Total derivatives not designated as hedging instruments 637 220 Total derivatives $ 1,458 $ (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 consolidated balance sheet, with the offset to other expense (income), net. Gains related to derivatives not designated as hedging instruments have been recognized as follows: (in thousands) 2018 2017 2016 Other expense (income), net - currency forward contracts $ (122 ) $ (873 ) $ 719 FAIR VALUE HEDGES Fixed-to-floating interest rate swap contracts, designated as fair value hedges, are entered into from time to time to hedge our exposure to fair value fluctuations on a portion of our fixed rate debt. We had no such contracts outstanding at June 30, 2018 and June 30, 2017 . CASH FLOW HEDGES Currency forward contracts and range forward contracts (a transaction where both a put option is purchased and a call option is sold) are designated as cash flow hedges and hedge anticipated cash flows from cross-border intercompany sales of products and services. Gains and losses realized on these contracts are recorded in accumulated other comprehensive loss, and are recognized as a component of other expense (income), net when the underlying sale of products or services is recognized into earnings. The notional amount of the contracts translated into U.S. dollars at June 30, 2018 and 2017 was $62.9 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 June 30, 2018 , we expect to recognize into earnings in the next 12 months $0.5 million of income on outstanding derivatives. The following represents gains and losses related to cash flow hedges: (in thousands) 2018 2017 2016 Losses recognized in other comprehensive income (loss), net $ (922 ) $ (471 ) $ (297 ) Losses reclassified from accumulated other comprehensive loss into other expense (income), net $ 3,001 $ 1,557 $ 381 No portion of the gains or losses recognized in earnings was due to ineffectiveness and no amounts were excluded from our effectiveness testing for the years ended June 30, 2018 , 2017 and 2016 . NET INVESTMENT HEDGES As of June 30, 2018 , we had certain foreign currency-denominated intercompany loans payable with total aggregate principal amounts of €33.0 million designated as net investment hedges to hedge the foreign exchange exposure of our net investment in Euro-based subsidiaries. Losses of $0.7 million and $4.5 million were recorded as a component of foreign currency translation adjustments in other comprehensive income (loss) during 2018 and 2017 , respectively. We did not have net investment hedges during 2016. As of June 30, 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 € 27,325 $ 31,819 June 26, 2022 Foreign currency-denominated intercompany loan payable 8,707 10,139 November 20, 2018 Foreign currency-denominated intercompany loan payable 2,014 2,345 October 11, 2019 (2) Includes principal and accrued interest. |
Inventories
Inventories | 12 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consisted of the following at June 30: (in thousands) 2018 2017 Finished goods $ 279,240 $ 290,817 Work in process and powder blends 232,973 166,857 Raw materials 96,859 87,627 Inventories at current cost 609,072 545,301 Less: LIFO valuation (83,606 ) (57,620 ) Total inventories $ 525,466 $ 487,681 We used the LIFO method of valuing inventories for approximately 40 percent and 43 percent of total inventories at June 30, 2018 and 2017 , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets | 12 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS A summary of the carrying amount of goodwill attributable to each segment, as well as the changes in such, is as follows: (in thousands) Industrial Widia Infrastructure Total Gross goodwill $ 408,705 $ 40,624 $ 633,211 $ 1,082,540 Accumulated impairment losses (137,204 ) (13,638 ) (633,211 ) (784,053 ) Balance as of June 30, 2016 $ 271,501 $ 26,986 $ — $ 298,487 Activity for 2017: Change in gross goodwill due to translation 1,989 891 — 2,880 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 2018: Change in gross goodwill due to translation 764 (329 ) — 435 Gross goodwill 411,458 41,186 633,211 1,085,855 Accumulated impairment losses (137,204 ) (13,638 ) (633,211 ) (784,053 ) Balance as of June 30, 2018 $ 274,254 $ 27,548 $ — $ 301,802 The components of our other intangible assets were as follows: Estimated Useful Life (in years) June 30, 2018 June 30, 2017 (in thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Contract-based 3 to 15 $ 7,061 $ (7,036 ) $ 7,064 $ (7,014 ) Technology-based and other 4 to 20 46,666 (30,923 ) 46,461 (29,061 ) Customer-related 10 to 21 206,162 (85,301 ) 205,502 (74,669 ) Unpatented technology 10 to 30 31,854 (13,096 ) 31,754 (10,589 ) Trademarks 5 to 20 12,450 (8,978 ) 12,401 (8,648 ) Trademarks Indefinite 17,609 — 17,326 — Total $ 321,802 $ (145,334 ) $ 320,508 $ (129,981 ) Amortization expense for intangible assets was $14.7 million , $16.6 million and $20.8 million for 2018 , 2017 and 2016 , respectively. Estimated amortization expense for 2019 through 2023 is $14.1 million , $13.9 million , $13.5 million , $13.1 million , and $12.9 million , respectively. |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Jun. 30, 2018 | |
Other Liabilities, Current [Abstract] | |
Other Current Liabilities [Text Block] | OTHER CURRENT LIABILITIES Other current liabilities consisted of the following at June 30: (in thousands) 2018 2017 Accrued employee benefits $ 48,889 $ 39,478 Accrued restructuring (Note 15) 17,469 27,294 Payroll, state and local taxes 10,146 9,943 Accrued legal and professional fees 9,291 10,741 Accrued interest 7,898 7,048 Other 56,893 58,443 Total other current liabilities $ 150,586 $ 152,947 |
Long-Term Debt and Capital Leas
Long-Term Debt and Capital Leases | 12 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT AND CAPITAL LEASES | LONG-TERM DEBT AND CAPITAL LEASES Long-term debt and capital lease obligations consisted of the following at June 30: (in thousands) 2018 2017 2.650% Senior Unsecured Notes due fiscal 2020, net of discount of $0.1 million for 2018 and $0.2 million for 2017 $ 399,898 $ 399,823 3.875% Senior Unsecured Notes due fiscal 2022, net of discount of $0.1 million for 2018 and $0.2 million for 2017 299,868 299,831 4.625% Senior Unsecured Notes due fiscal 2028, net of discount of $2.2 million for 2018 297,813 — Capital leases with terms expiring through 2018 at 3.9% in 2017 — 190 Total debt and capital leases 997,579 699,844 Less unamortized debt issuance costs (6,808 ) (4,663 ) Less current maturities: Long-term debt (399,266 ) — Capital leases — (190 ) Total long-term debt $ 591,505 $ 694,991 Senior Unsecured Notes On June 7, 2018, we issued $300.0 million of 4.625 percent Senior Unsecured Notes with a maturity date of June 15, 2028. Interest will be paid semi-annually on June 15 and December 15 of each year. We used the net proceeds from the offering of the notes, plus cash on hand, for the early extinguishment of our $400.0 million of 2.650 percent Senior Unsecured Notes in July of fiscal 2019. The $400.0 million of 2.650 percent Senior Unsecured Notes, with an original maturity date of November 1, 2019 ($400.0 million Notes), were reclassified to current maturities of long-term debt as of June 30, 2018 , since our notification of early redemption to bondholders in June 2018 created an irrevocable commitment to redeem the debt. Interest on the 2019 Note was paid semi-annually on May 1 and November 1 of each year. On February 14, 2012, we issued $300 million of 3.875 percent Senior Unsecured Notes with a maturity date of February 15, 2022. Interest is paid semi-annually on February 15 and August 15 of each year. Credit Agreement The five -year, multi-currency, revolving credit facility, as amended and restated in June 2018 (Credit Agreement) provides for revolving credit loans of up to $700.0 million for working capital, capital expenditures and general corporate purposes. The Credit Agreement matures in June 2023 and allows for borrowings in U.S. dollars, euros, Canadian dollars, pounds sterling and Japanese yen. Interest payable under the Credit Agreement is based upon the type of borrowing under the facility and may be (1) LIBOR plus an applicable margin, (2) the greater of the prime rate or the Federal Funds effective rate plus an applicable margin, or (3) fixed as negotiated by us. The Credit Agreement requires us to comply with various restrictive and affirmative covenants, including two financial covenants: a maximum leverage ratio and a minimum consolidated interest coverage ratio (as those terms are defined in the Credit agreement). We were in compliance with all covenants as of June 30, 2018 . We had no borrowings outstanding under the Credit Agreement as of June 30, 2018 and 2017 . Borrowings under the Credit Agreement are guaranteed by our significant domestic subsidiaries. Future principal maturities of long-term debt are $300 million in 2022 and $300 million in 2028. At June 30, 2017 , our collateralized debt consisted of capitalized lease obligations of $0.2 million . The underlying assets collateralized these obligations. |
Notes Payable and Lines of Cred
Notes Payable and Lines of Credit | 12 Months Ended |
Jun. 30, 2018 | |
Notes Payable and Lines of Credit [Abstract] | |
Notes Payable and Lines of Credit | NOTES PAYABLE AND LINES OF CREDIT Notes payable to banks of $0.9 million and $0.7 million at June 30, 2018 and 2017 , respectively, represents short-term borrowings under credit lines with commercial banks. These credit lines, translated into U.S. dollars at June 30, 2018 exchange rates, totaled $71.9 million at June 30, 2018 , of which $71.0 million was unused. The weighted average interest rate for notes payable and lines of credit was 25.0 percent and 13.8 percent at June 30, 2018 and 2017 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income (loss) before income taxes consisted of the following for the years ended June 30: (in thousands) 2018 2017 2016 Income (loss) before income taxes: United States $ 57,109 $ (23,055 ) $ (228,667 ) International 217,932 104,930 30,096 Total income (loss) before income taxes $ 275,041 $ 81,875 $ (198,571 ) Current income taxes: Federal $ 3,755 $ (1,455 ) $ (15,039 ) State (816 ) 172 454 International 44,127 24,911 31,570 Total current income taxes 47,066 23,628 16,985 Deferred income taxes: Federal $ 1,121 $ 298 $ 6,786 State 3,552 (867 ) 8,407 International 18,242 6,836 (6,865 ) Total deferred income taxes: 22,915 6,267 8,328 Provision for income taxes $ 69,981 $ 29,895 $ 25,313 Effective tax rate 25.4 % 36.5 % (12.7 )% On December 22, 2017, the Tax Cuts and Jobs Act of 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 eliminates U.S. federal taxes on most future foreign earnings. 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 year ended June 30, 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 a blended rate of 28.1 percent . We expect our U.S. federal statutory tax rate to be 21.0 percent in 2019. During 2018, we estimated the toll tax charge to be $80.9 million after available foreign tax credits. 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. We estimate a cash payment of $3.5 million associated with the toll charge which will be paid over eight years, of which $3.2 million is classified as long-term accrued income taxes in our consolidated balance sheet as of June 30, 2018. The toll tax charge is preliminary, and subject to finalization of the 2018 U.S. federal income tax return and applying any additional regulatory guidance issued after June 30, 2018. The reconciliation of income taxes computed using the statutory U.S. income tax rate and the provision for income taxes was as follows for the years ended June 30: (in thousands) 2018 2017 2016 Income taxes at U.S. statutory rate $ 77,286 $ 28,656 $ (69,500 ) State income taxes, net of federal tax benefits 2,975 (306 ) 859 U.S. income taxes provided on international income 1,010 10,273 2,364 Combined tax effects of international income (9,333 ) (11,530 ) (25,469 ) Impact of goodwill impairment charges — — 6,439 Impact of divestiture — — 27,790 Change in valuation allowance and other uncertain tax positions (90,817 ) 5,163 84,530 Impact of domestic production activities deduction — — (2,072 ) Research and development credit (3,141 ) (1,895 ) (4,351 ) Change in permanent reinvestment assertion — — 3,659 Combined effects of tax reform 86,044 — — Adjustment to deferred tax charges on intra-entity transfers 5,297 — — Other 660 (466 ) 1,064 Provision for income taxes $ 69,981 $ 29,895 $ 25,313 During 2018, we recorded a charge for the combined effects of tax reform of $86.0 million , which includes $80.9 million for the toll tax charge and a net charge in our U.S. provision of $5.1 million for revaluation of U.S. net deferred taxes. The impact of these items is included in the tax reconciliation table under the caption “Combined effects of tax reform.” The revaluation of U.S. net deferred taxes is preliminary and subject to finalization of the 2018 U.S. federal income tax return. During 2018, we released $91.3 million of the U.S. valuation allowance that was previously recorded against our net deferred tax assets in the U.S., including deferred tax assets related to items of Other Comprehensive Income. 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. During 2017, we recorded a valuation allowance against the net deferred tax assets of our Australian subsidiary. The impact of the valuation allowance was approximately $1.3 million and is included in the tax reconciliation table under the caption "change in valuation allowance and other uncertain tax positions." During 2016, we recorded a valuation allowance against our net domestic deferred tax assets of $105.9 million , as discussed below. Of this amount, $81.2 million impacted the effective tax rate and is included in the income tax reconciliation table under the caption "change in valuation allowance and other uncertain tax positions," and $24.7 million was recorded in other comprehensive income. During 2016, we recorded goodwill impairment charges related to our Infrastructure segment for which there was no tax benefit for a portion of the charges. The federal effect of these permanent differences is included in the income tax reconciliation table under the caption "impact of goodwill impairment charges." During 2016, we divested certain non-core businesses as described in Note 4. A portion of the loss from this divestiture was not deductible for tax purposes. The Federal effect of this permanent difference is included in the income tax reconciliation table under the caption "impact of divestiture." During 2016 we recorded an adjustment of $3.7 million related to a change in assertion of certain foreign subsidiaries' undistributed earnings primarily related to the transaction described in Note 4, which are no longer considered permanently reinvested. The effect of this charge is included in the income tax reconciliation table under the caption "change in permanent reinvestment assertion." The components of net deferred tax assets and (liabilities) were as follows at June 30: (in thousands) 2018 2017 Deferred tax assets: Net operating loss (NOL) carryforwards $ 39,884 $ 81,920 Inventory valuation and reserves 10,023 20,428 Pension benefits 15,750 24,824 Other postretirement benefits 3,996 5,959 Accrued employee benefits 15,697 18,409 Other accrued liabilities 9,386 8,609 Hedging activities 1,477 5,409 Tax credits and other carryforwards 644 37,603 Intangible assets — 14,947 Total 96,857 218,108 Valuation allowance (21,629 ) (116,770 ) Total deferred tax assets $ 75,228 $ 101,338 Deferred tax liabilities: Tax depreciation in excess of book $ 77,106 $ 83,258 Intangible assets 537 — Other 7,561 4,614 Total deferred tax liabilities $ 85,204 $ 87,872 Total net deferred tax assets $ (9,976 ) $ 13,466 As noted previously, TCJA reduced the statutory Federal income tax rate from 35.0 percent to 21.0 percent . The table above reflects deferred taxes calculated using the U.S. Federal rates, which was at the 21.0 percent rate and at 35.0 percent rate as of June 30, 2018 and 2017, respectively. We revised NOL carryforwards, tax credits and other carryforwards and accrued employee benefits in our components of net deferred tax assets as of June 30, 2017 to correct a prior period classification error. This correction resulted in a decrease to NOL carryforwards and to tax credits and other carryforwards of $3.7 million and $3.4 million , respectively, and an increase to accrued employee benefits of $7.1 million . This misstatement was not material to our current or any prior period financial statements. During 2018, 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 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 during 2018. The remaining balance related to this item was reclassified and included in other current assets. The impact to the effective tax rate was 1.9 percent in 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 2018 results. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not (greater than 50 percent) that a tax benefit will not be realized. In evaluating the need for a valuation allowance, we consider all potential sources of taxable income, including income available in carryback periods, future reversals of taxable temporary differences, projections of taxable income, and income from tax planning strategies, as well as all available positive and negative evidence. Positive evidence includes factors such as a history of profitable operations, and projections of future profitability within the carry forward period, including taxable income from tax planning strategies. Negative evidence includes items such as cumulative losses, projections of future losses, or carryforward periods that are not long enough to allow for the utilization of the deferred tax asset based on existing projections of income. Upon changes in facts and circumstances, we may conclude that deferred tax assets for which no valuation allowance is currently recorded may not be realized, resulting in a future charge to establish a valuation allowance. Existing valuation allowances are re-examined under the same standards of positive and negative evidence. If it is determined that it is more likely than not that a deferred tax asset will be realized, the appropriate amount of the valuation allowance, if any, is released. In 2016, we recorded a valuation allowance of $105.9 million against our net deferred tax assets in the U.S. Of this amount, $81.2 million was recorded in the provision for income taxes and $24.7 million was recorded in other comprehensive income. After weighing all available positive and negative evidence, as previously described, we determined that it was no longer more likely than not that we will realize the tax benefit of these deferred tax assets. This was driven by cumulative pre-tax domestic losses from charges related to asset impairment, restructuring and loss on divestiture, as well as an overall decrease in demand in U.S. operations. During 2018, we released $91.3 million of the valuation allowance, which was triggered by utilization of a significant portion of our deferred tax assets to satisfy the toll tax provision in TCJA. A valuation allowance on certain state NOLs in the amount of $13.4 million remains recorded on our U.S. deferred tax assets. Included in deferred tax assets at June 30, 2018 is $0.6 million associated with tax credits and other carryforward items primarily in federal and state jurisdictions. Of that amount, $0.3 million expires through 2023 and $0.3 million expires through 2028. Included in deferred tax assets at June 30, 2018 is $39.9 million associated with NOL carryforwards in state and foreign jurisdictions. Of that amount, $11.0 million expires through 2023, $2.9 million expires through 2028, $2.9 million expires through 2033, $4.6 million expires through 2038, and the remaining $18.5 million does not expire. The realization of these tax benefits is primarily dependent on future taxable income in these jurisdictions. A valuation allowance of $21.6 million has been placed against deferred tax assets in the U.S., Brazil, the Netherlands, Hong Kong and Australia, all of which would be allocated to income tax expense upon realization of the deferred tax assets. As the respective operations generate sufficient income, the valuation allowances will be partially or fully reversed at such time we believe it will be more likely than not that the deferred tax assets will be realized. In 2018, the valuation allowance related to these deferred tax assets decreased by $95.1 million , due primarily to the release of the valuation allowance against most of our U.S. deferred tax assets. We consider substantially all of the unremitted earnings of our non-U.S. subsidiaries to be permanently reinvested. As a result of TCJA, which among other provisions allows for a 100 percent dividends received deduction from controlled foreign subsidiaries, we are in the process of re-evaluating our assertion with respect to permanent reinvestment. As part of this evaluation, we are considering 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, U.S. tax on foreign currency gains and losses and other relevant foreign taxes in the period the conclusion is determined. As of June 30, 2018, the unremitted earnings and profits of our non-U.S. subsidiaries and affiliates is approximately $1.3 billion . This amount has been subject to U.S. federal income tax, but may remain subject to state and foreign taxes if repatriated. In accordance with SAB 118, we expect to complete our evaluation by December 22, 2018. A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest) is as follows as of June 30: (in thousands) 2018 2017 2016 Balance at beginning of year $ 2,632 $ 3,106 $ 14,619 Increases for tax positions of prior years 3,409 — 1,197 Decreases related to settlement with taxing authority — (231 ) (11,942 ) Decreases related to lapse of statute of limitations (289 ) (184 ) (667 ) Foreign currency translation 23 (59 ) (101 ) Balance at end of year $ 5,775 $ 2,632 $ 3,106 The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate in 2018 , 2017 and 2016 is $5.8 million , $2.6 million and $3.1 million , respectively. Our policy is to recognize interest and penalties related to income taxes as a component of the provision for income taxes in the consolidated statement of income. We recognized increases in interest of $0.7 million and $0.2 million in 2018 and 2017, respectively, and a reduction in interest of $0.2 million in 2016. As of June 30, 2018 and 2017 the amount of interest accrued was $1.1 million and $0.5 million , respectively. As of June 30, 2018 and 2017 , the amount of penalty accrued was $0.1 million . In 2016, decreases for tax positions primarily relate to one foreign tax position. We settled this position with the foreign authority. A corresponding deferred tax asset in the amount of $11.9 million was released for the position in the U.S. and in the prior year this amount was included in the components of net deferred tax liabilities and assets table under the caption "other." With few exceptions, we are no longer subject to income tax examinations by tax authorities for years prior to 2011. The Internal Revenue Service has audited all U.S. tax years prior to 2015. Various state and foreign jurisdiction tax authorities are in the process of examining our income tax returns for various tax years ranging from 2011 to 2015. We continue to execute our pan-European business model. As a result of this and other matters, we continuously review our uncertain tax positions and evaluate any potential issues that may lead to an increase or decrease in the total amount of unrecognized tax benefits recorded. We believe that it is reasonably possible that the amount of unrecognized tax benefits could decrease by approximately $3.1 million within the next twelve months. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 12 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits Disclosure | PENSION AND OTHER POSTRETIREMENT BENEFITS Defined Benefit Pension Plans We have defined benefit pension plans that cover certain employees in the U.S., Germany, the UK and Canada. Pension benefits under defined benefit pension plans are based on years of service and, for certain plans, on average compensation for specified years preceding retirement. We fund pension costs in accordance with the funding requirements of the Employee Retirement Income Security Act of 1974 (ERISA), as amended, for U.S. plans and in accordance with local regulations or customs for non-U.S. plans. Beginning in 2017, the accrued benefit for all participants in the Kennametal Inc. Retirement Income Plan is frozen as the result of amendment. The majority of our defined benefit pension plans are closed to future participation. We have an Executive Retirement Plan for various executives and a Supplemental Executive Retirement Plan both of which have been closed to future participation on June 15, 2017 and July 26, 2006, respectively. We presently provide varying levels of postretirement health care and life insurance benefits to certain employees and retirees. Postretirement health care benefits are available to employees and their spouses retiring on or after age 55 with 10 or more years of service. Beginning with retirements on or after January 1, 1998, our portion of the costs of postretirement health care benefits is capped at 1996 levels. Beginning with retirements on or after January 1, 2009, we have no obligation to provide a company subsidy for retiree medical costs. Postretirement health and life benefits are closed to future participants as of December 31, 2016. We use a June 30 measurement date for all of our plans. The funded status of our pension plans and amounts recognized in the consolidated balance sheets as of June 30 were as follows: (in thousands) 2018 2017 Change in benefit obligation: Benefit obligation, beginning of year $ 941,094 $ 1,005,368 Service cost 1,635 2,908 Interest cost 30,751 31,113 Participant contributions 3 8 Actuarial gains (24,501 ) (19,660 ) Benefits and expenses paid (47,212 ) (70,257 ) Currency translation adjustments 3,876 (1,045 ) Special termination benefits — 98 Plan settlements (2,935 ) (7,439 ) Benefit obligation, end of year $ 902,711 $ 941,094 Change in plans' assets: Fair value of plans' assets, beginning of year $ 808,635 $ 821,675 Actual return on plans' assets 24,931 56,818 Company contributions 7,999 11,960 Participant contributions 3 8 Plan settlements (2,935 ) (7,439 ) Benefits and expenses paid (47,212 ) (70,257 ) Currency translation adjustments 1,337 (4,130 ) Fair value of plans' assets, end of year $ 792,758 $ 808,635 Funded status of plans $ (109,953 ) $ (132,459 ) Amounts recognized in the balance sheet consist of: Long-term prepaid benefit $ 42,543 $ 17,208 Short-term accrued benefit obligation (6,699 ) (5,713 ) Accrued pension benefits (145,797 ) (143,954 ) Net amount recognized $ (109,953 ) $ (132,459 ) The pre-tax amounts related to our defined benefit pension plans recognized in accumulated other comprehensive loss were as follows at June 30: (in thousands) 2018 2017 Unrecognized net actuarial losses $ 247,230 $ 246,428 Unrecognized net prior service credits 723 580 Unrecognized transition obligations 539 622 Total $ 248,492 $ 247,630 Prepaid pension benefits are included in other long-term assets. The assets of our U.S. and international defined benefit pension plans consist principally of capital stocks, corporate bonds and government securities. To the best of our knowledge and belief, the asset portfolios of our defined benefit pension plans do not contain our capital stock. We do not issue insurance contracts to cover future annual benefits of defined benefit pension plan participants. Transactions between us and our defined benefit pension plans include the reimbursement of plan expenditures incurred by us on behalf of the plans. To the best of our knowledge and belief, the reimbursement of cost is permissible under current ERISA rules or local government law. The accumulated benefit obligation for all defined benefit pension plans was $902.1 million and $940.9 million as of June 30, 2018 and 2017 , respectively. Included in the above information are plans with accumulated benefit obligations exceeding the fair value of plan assets as of June 30 as follows: (in thousands) 2018 2017 Projected benefit obligation $ 152,485 $ 156,816 Accumulated benefit obligation 151,871 156,590 Fair value of plan assets — 7,083 The components of net periodic pension income include the following as of June 30: (in thousands) 2018 2017 2016 Service cost $ 1,635 $ 2,908 $ 4,640 Interest cost 30,751 31,113 37,726 Expected return on plans' assets (56,579 ) (58,781 ) (58,523 ) Amortization of transition obligation 94 89 80 Amortization of prior service cost 48 (452 ) (417 ) Special termination benefit charge — 98 334 Settlement loss 626 379 227 Recognition of actuarial losses 6,907 8,356 7,286 Net periodic pension income $ (16,518 ) $ (16,290 ) $ (8,647 ) As of June 30, 2018 , the projected benefit payments, including future service accruals for these plans for 2019 through 2023, are $49.3 million , $50.1 million , $51.8 million , $52.3 million and $54.1 million , respectively, and $280.1 million in 2024 through 2028. The amounts of accumulated other comprehensive loss expected to be recognized in net periodic pension cost during 2019 related to net actuarial losses and transition obligations are $6.8 million and $0.1 million , respectively. The amount of accumulated other comprehensive income expected to be recognized in net periodic pension cost during 2019 related to prior service credit is immaterial. We expect to contribute approximately $8.1 million to our pension plans in 2019. Other Postretirement Benefit Plans The funded status of our other postretirement benefit plans and the related amounts recognized in the consolidated balance sheets were as follows: (in thousands) 2018 2017 Change in benefit obligation: Benefit obligation, beginning of year $ 18,160 $ 20,542 Interest cost 629 673 Actuarial losses (323 ) (747 ) Benefits paid (2,208 ) (2,308 ) Plan amendments (935 ) — Benefit obligation, end of year $ 15,323 $ 18,160 Funded status of plan $ (15,323 ) $ (18,160 ) Amounts recognized in the balance sheet consist of: Short-term accrued benefit obligation $ (1,598 ) $ (1,254 ) Accrued postretirement benefits (13,725 ) (16,906 ) Net amount recognized $ (15,323 ) $ (18,160 ) The pre-tax amounts related to our other postretirement benefit plans which were recognized in accumulated other comprehensive loss were as follows at June 30: (in thousands) 2018 2017 Unrecognized net actuarial losses $ 4,662 $ 5,266 Unrecognized net prior service credits (1,041 ) (128 ) Total $ 3,621 $ 5,138 The components of net periodic other postretirement benefit cost include the following for the years ended June 30: (in thousands) 2018 2017 2016 Interest cost 629 673 840 Amortization of prior service credit (22 ) (22 ) (22 ) Recognition of actuarial loss 280 355 324 Net periodic other postretirement benefit cost $ 887 $ 1,006 $ 1,142 As of June 30, 2018 , the projected benefit payments, including future service accruals for our other postretirement benefit plans for 2019 through 2023, are $1.6 million , $1.5 million , $1.4 million , $1.4 million and $1.3 million , respectively, and $5.4 million in 2024 through 2028. The amounts of accumulated other comprehensive loss expected to be recognized in net periodic pension cost during 2019 related to net actuarial losses are $0.2 million . The amount of accumulated other comprehensive income expected to be recognized in net periodic pension cost during 2019 related to prior service credit is $0.1 million . We expect to contribute approximately $1.6 million to our postretirement benefit plans in 2019. Assumptions The significant actuarial assumptions used to determine the present value of net benefit obligations for our defined benefit pension plans and other postretirement benefit plans were as follows: 2018 2017 2016 Discount Rate: U.S. plans 4.0-4.3% 3.3-3.9% 2.4-3.7% International plans 1.8-3.3% 2.0-3.3% 0.9-3.2% Rates of future salary increases: U.S. plans 4.0 % 4.0 % 3.0-4.0% International plans 2.5-3.0% 2.5-3.0% 2.5-3.0% The significant assumptions used to determine the net periodic (income) cost for our pension and other postretirement benefit plans were as follows: 2018 2017 2016 Discount Rate: U.S. plans 3.3-3.9% 2.4-3.7% 3.2-4.5% International plans 2.0-3.3% 0.9-3.2% 2.3-3.8% Rates of future salary increases: U.S. plans 4.0 % 3.0-4.0% 3.0-4.0% International plans 2.5-3.0% 2.5-3.0% 2.5-3.0% Rate of return on plans assets: U.S. plans 7.3 % 7.5 % 7.5 % International plans 5.3 % 5.3-5.5% 5.3-5.5% The rates of return on plan assets are based on historical performance, as well as future expected returns by asset class considering macroeconomic conditions, current portfolio mix, long-term investment strategy and other available relevant information. The annual assumed rate of increase in the per capita cost of covered benefits (the health care cost trend rate) for our postretirement benefit plans was as follows: 2018 2017 2016 Health care costs trend rate assumed for next year 7.5 % 8.0 % 8.5 % Rate to which the cost trend rate gradually declines 5.0 % 5.0 % 5.0 % Year that the rate reaches the rate at which it is assumed to remain 2027 2027 2027 A change of one percentage point in the assumed health care cost trend rates would have the following effects on the total service and interest cost components of our other postretirement cost and other postretirement benefit obligation at June 30, 2018 : (in thousands) 1% Increase 1% Decrease Effect on total service and interest cost components $ 27 $ (24 ) Effect on other postretirement obligation 492 (437 ) Plan Assets The primary objective of certain of our pension plans' investment policies is to ensure that sufficient assets are available to provide the benefit obligations at the time the obligations come due. The overall investment strategy for the defined benefit pension plans' assets combine considerations of preservation of principal and moderate risk-taking. The assumption of an acceptable level of risk is warranted in order to achieve satisfactory results consistent with the long-term objectives of the portfolio. Fixed income securities comprise a significant portion of the portfolio due to their plan-liability-matching characteristics and to address the plans' cash flow requirements. Additionally, diversification of investments within each asset class is utilized to further reduce the impact of losses in single investments. Investment management practices must comply with ERISA and all applicable regulations and rulings thereof. The use of derivative instruments is permitted where appropriate and necessary for achieving overall investment policy objectives. Currently, the use of derivative instruments is not significant when compared to the overall investment portfolio. The Company utilizes a liability driven investment strategy (LDI) for the assets of its U.S. defined benefit pension plans in order to reduce the volatility of the funded status of these plans and to meet the obligations at an acceptable cost over the long term. This LDI strategy entails modifying the asset allocation and duration of the assets of the plans to more closely match the liability profile of these plans. The asset reallocation involves increasing the fixed income allocation, reducing the equity component and adding alternative investments. Longer duration interest rate swaps have been utilized periodically in order to increase the overall duration of the asset portfolio to more closely match the liabilities. Our defined benefit pension plans’ asset allocations as of June 30, 2018 and 2017 and target allocations for 2019 , by asset class, were as follows: 2018 2017 Target % Equity 28 % 27 % 24 % Fixed Income 62 63 69 Other 11 10 7 The following sections describe the valuation methodologies used by the trustee to measure the fair value of the defined benefit pension plan assets, including an indication of the level in the fair value hierarchy in which each type of asset is generally classified (see Note 5 for the definition of fair value and a description of the fair value hierarchy). Corporate fixed income securities Investments in corporate fixed income securities consist of corporate debt and asset backed securities. These investments are classified as level two and are valued using independent observable market inputs such as the treasury curve, swap curve and yield curve. Common stock Common stocks are classified as level one and are valued at their quoted market price. Government securities Investments in government securities consist of fixed income securities such as U.S. government and agency obligations and foreign government bonds and asset and mortgage backed securities such as obligations issued by government sponsored organizations. These investments are classified as level two and are valued using independent observable market inputs such as the treasury curve, credit spreads and interest rates. Other fixed income securities Investments in other fixed income securities are classified as level two and valued based on observable market data. Other Other investments consist primarily of a hedge fund, in addition to state and local obligations and short term investments including cash, corporate notes, and various short term debt instruments which can be redeemed within a nominal redemption notice period. These investments are primarily classified as level two and are valued using independent observable market inputs. The fair value methods described may not be reflective of future fair values. Additionally, while the Company believes the valuation methods used by the plans’ trustee are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in different fair value measurement at the reporting date. The following table presents the fair value of the benefit plan assets by asset category as of June 30, 2018 : (in thousands) Level 1 Level 2 Level 3 NAV (3) Total Common / collective trusts (3) : Value funds $ — $ — $ — $ 74,070 $ 74,070 Growth funds — — — 49,438 49,438 Balanced funds — — — 11,854 11,854 Corporate fixed income securities — 350,394 — — 350,394 Common stock 83,361 — — — 83,361 Government securities: U.S. government securities — 62,381 — — 62,381 Foreign government securities — 46,286 — — 46,286 Other fixed income securities — 31,630 — — 31,630 Other 3,898 79,446 — — 83,344 Total investments $ 87,259 $ 570,137 $ — $ 135,362 $ 792,758 The following table presents the fair value of the benefit plan assets by asset category as of June 30, 2017 : (in thousands) Level 1 Level 2 Level 3 NAV (3) Total Common / collective trusts (3) : Value funds $ — $ — $ — $ 76,186 $ 76,186 Growth funds — — — 43,880 43,880 Balanced funds — — — 12,421 12,421 Corporate fixed income securities — 365,723 — — 365,723 Common stock 85,138 — — — 85,138 Government securities: U.S. government securities — 72,817 — — 72,817 Foreign government securities — 45,359 — — 45,359 Other fixed income securities — 25,761 — — 25,761 Other 3,313 78,037 — — 81,350 Total investments $ 88,451 $ 587,697 $ — 132,487 $ 808,635 (3) Investments in common / collective trusts invest primarily in publicly traded securities and are valued using net asset value (NAV) of units of a bank collective trust. Therefore, these amounts have not been classified in the fair value hierarchy and are presented in the tables to reconcile the fair value hierarchy to the total fair value of plan assets. Defined Contribution Plans We sponsor several defined contribution retirement plans. Costs for defined contribution plans were $19.6 million , $15.8 million and $17.2 million in 2018 , 2017 and 2016 , respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 12 Months Ended |
Jun. 30, 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 year ended June 30, 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 loss before reclassifications (5,991 ) (741 ) (922 ) (7,654 ) Amounts Reclassified from AOCL 7,274 — 3,747 11,021 Net current period other comprehensive income (loss) 1,283 (741 ) 2,825 3,367 AOCL, June 30, 2018 $ (187,755 ) $ (127,347 ) $ (5,223 ) $ (320,325 ) Attributable to noncontrolling interests: Balance, June 30, 2017 $ — $ (2,164 ) $ — $ (2,164 ) Other comprehensive loss before reclassifications — (749 ) — (749 ) Net current period other comprehensive loss — (749 ) — (749 ) AOCL, June 30, 2018 $ — $ (2,913 ) $ — $ (2,913 ) The components of and changes in AOCL were as follows, net of tax, for the year ended June 30, 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 15,559 4,606 (471 ) 19,694 Amounts Reclassified from AOCL 7,566 — 1,557 9,123 Net current period other comprehensive income 23,125 4,606 1,086 28,817 AOCL, June 30, 2017 $ (189,038 ) $ (126,606 ) $ (8,048 ) $ (323,692 ) Attributable to noncontrolling interests: Balance, June 30, 2016 $ — $ (3,446 ) $ — $ (3,446 ) Other comprehensive income before reclassifications — 1,282 — 1,282 Net current period other comprehensive income — 1,282 — 1,282 AOCL, June 30, 2017 $ — $ (2,164 ) $ — $ (2,164 ) The components of and changes in AOCL were as follows, net of tax, for the year ended June 30, 2016 (in thousands): Attributable to Kennametal: Postretirement benefit plans Currency translation adjustment Derivatives Total Balance, June 30, 2015 $ (138,793 ) $ (97,309 ) $ (7,421 ) $ (243,523 ) Other comprehensive loss before reclassifications (78,295 ) (51,508 ) (150 ) (129,953 ) Amounts Reclassified from AOCL 4,925 15,088 (1,563 ) 18,450 Net current period other comprehensive loss (73,370 ) (36,420 ) (1,713 ) (111,503 ) Sale of subsidiary stock to noncontrolling interest — 2,517 — 2,517 AOCL, June 30, 2016 $ (212,163 ) $ (131,212 ) $ (9,134 ) $ (352,509 ) Attributable to noncontrolling interests: Balance, June 30, 2015 $ — $ (2,258 ) $ — $ (2,258 ) Other comprehensive loss before — (1,188 ) — (1,188 ) Net current period other comprehensive loss — (1,188 ) — (1,188 ) AOCL, June 30, 2016 $ — $ (3,446 ) $ — $ (3,446 ) Reclassifications out of AOCL for the years ended June 30, 2018 , 2017 and 2016 consisted of the following: Year Ended June 30, Details about AOCL components 2018 2017 2016 Affected line item in the Income Statement Gains and losses on cash flow hedges: Forward starting interest rate swaps $ 2,265 $ 2,180 $ 2,099 Interest expense Currency exchange contracts 2,243 (623 ) (4,645 ) Other expense (income), net Total before tax 4,508 1,557 (2,546 ) Tax impact (761 ) — 983 Provision for income taxes Net of tax $ 3,747 $ 1,557 $ (1,563 ) Postretirement benefit plans: Amortization of transition obligations $ 94 $ 89 $ 80 See Note 13 for further details Amortization of prior service credit 26 (474 ) (439 ) See Note 13 for further details Recognition of actuarial losses 7,187 8,711 7,610 See Note 13 for further details Total before tax 7,307 8,326 7,251 Tax impact (33 ) (760 ) (2,326 ) Provision for income taxes Net of tax $ 7,274 $ 7,566 $ 4,925 Foreign currency translation adjustments: Released due to divestiture $ — $ — $ 15,088 Loss on divestiture Total before taxes — — 15,088 Tax impact — — — Provision for income taxes Net of tax $ — $ — $ 15,088 The amount of income tax allocated to each component of other comprehensive income for the year ended June 30, 2018 : (in thousands) Pre-tax Tax impact Net of tax Unrealized loss on derivatives designated and qualified as cash flow hedges $ (928 ) $ 6 $ (922 ) Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges 4,508 (761 ) 3,747 Unrecognized net pension and other postretirement benefit loss (8,043 ) 2,052 (5,991 ) Reclassification of net pension and other postretirement benefit loss 7,307 (33 ) 7,274 Foreign currency translation adjustments (1,593 ) 103 (1,490 ) Other comprehensive income $ 1,251 $ 1,367 $ 2,618 The amount of income tax allocated to each component of other comprehensive loss for the year ended June 30, 2017 : (in thousands) Pre-tax Tax impact Net of tax Unrealized loss on derivatives designated and qualified as cash flow hedges $ (471 ) $ — $ (471 ) Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges 1,557 — 1,557 Unrecognized net pension and other postretirement benefit gain 18,656 (3,097 ) 15,559 Reclassification of net pension and other postretirement benefit loss 8,326 (760 ) 7,566 Foreign currency translation adjustments 6,266 (378 ) 5,888 Other comprehensive income $ 34,334 $ (4,235 ) $ 30,099 The amount of income tax allocated to each component of other comprehensive loss for the year ended June 30, 2016 : (in thousands) Pre-tax Tax impact Net of tax Unrealized loss on derivatives designated and qualified as cash flow hedges $ (244 ) $ 94 $ (150 ) Reclassification of unrealized gain on expired derivatives designated and qualified as cash flow hedges (2,546 ) 983 (1,563 ) Unrecognized net pension and other postretirement benefit loss (84,266 ) 5,971 (78,295 ) Reclassification of net pension and other postretirement benefit loss 7,251 (2,326 ) 4,925 Foreign currency translation adjustments (52,699 ) 4 (52,695 ) Reclassification of foreign currency translation adjustment loss realized upon sale 15,088 — 15,088 Other comprehensive loss $ (117,416 ) $ 4,726 $ (112,690 ) |
Restructuring and Related Charg
Restructuring and Related Charges and Asset Impairment Charges | 12 Months Ended |
Jun. 30, 2018 | |
Restructuring Charges [Abstract] | |
RESTRUCTURING AND RELATED CHARGES AND ASSET IMPAIRMENT CHARGES | RESTRUCTURING AND RELATED CHARGES AND ASSET IMPAIRMENT CHARGES Legacy Restructuring In prior years, we implemented restructuring actions to streamline the Company's cost structure. The purpose of this restructuring initiative was to improve the alignment of our cost structure with the operating environment through employee reductions and to consolidate certain manufacturing facilities. These restructuring actions were substantially completed in the September quarter of 2018, were mostly cash expenditures and achieved annual run rate ongoing pre-tax savings of approximately $165 million . Total restructuring and related charges since inception of $152.7 million have been recorded for these programs through June 30, 2018 : $85.6 million in Industrial, $13.9 million in Widia, $45.9 million in Infrastructure and $7.3 million in Corporate. Industrial Simplification In the June quarter of 2018, we implemented and substantially completed restructuring actions to streamline the Industrial segment's cost structure by directing resources to more profitable business and increasing sales force productivity. These actions are currently anticipated to deliver annual ongoing pre-tax savings of $10 million and are anticipated to be mostly cash expenditures. Total restructuring and related charges since inception of $8.2 million have been recorded for this program in the Industrial segment through June 30, 2018 . Combined Restructuring During 2018 , we recorded restructuring and related charges of $15.9 million , net of a $4.7 million gain on sale of the previously closed Houston manufacturing location that was part of our legacy restructuring programs. Of this amount, restructuring charges totaled $16.4 million , of which benefit of $0.2 million was related to inventory and were recorded in cost of goods sold. Restructuring-related charges of $3.7 million were recorded in cost of goods sold and $0.5 million were recorded in operating expense during 2018 . During 2017 , we recorded restructuring and related charges of $76.2 million . Of this amount, restructuring charges totaled $65.6 million , of which $0.6 million were charges related to inventory and were recorded in cost of goods sold. Restructuring-related charges of $7.1 million were recorded in cost of goods sold and $3.5 million in operating expense during 2017 . During 2016 , we recorded restructuring and related charges of $53.5 million . Of this amount, restructuring charges totaled $30.0 million . Restructuring-related charges of $7.3 million were recorded in cost of goods sold and $16.2 million in operating expense during 2016 . As of June 30, 2017 , property, plant, and equipment of $7.0 million for certain closed manufacturing locations that were part of our legacy restructuring programs met held for sale criteria. We expected to sell these assets within one year from the balance sheet date. These assets were recorded at the lower of carrying amount or fair value less cost to sell. We had also ceased depreciating these assets. As of June 30, 2018 and 2017 , $17.5 million and $27.3 million of the restructuring accrual is recorded in other current liabilities, and $0.1 million and $2.5 million is recorded in other liabilities, respectively, in our consolidated balance sheet. The restructuring accrual of $15.7 million as of June 30, 2016 is recorded in other current liabilities. The amount attributable to each segment is as follows: (in thousands) June 30, 2017 Expense Asset Write-Down Translation Cash Expenditures June 30, 2018 Industrial Severance $ 17,639 $ 9,734 $ — $ 868 $ (20,274 ) $ 7,967 Facilities — 3,084 (3,084 ) — — — Other 94 (85 ) — 1 (10 ) — Total Industrial 17,733 12,733 (3,084 ) 869 (20,284 ) 7,967 Widia Severance 2,434 475 — 42 (864 ) 2,087 Facilities — 747 (747 ) — — — Other — (4 ) — — 19 15 Total Widia 2,434 1,218 (747 ) 42 (845 ) 2,102 Infrastructure Severance 9,573 2,053 — 183 (4,251 ) 7,558 Facilities 21 433 (433 ) — (21 ) — Other 45 (18 ) — — (15 ) 12 Total Infrastructure 9,639 2,468 (433 ) 183 (4,287 ) 7,570 Total $ 29,806 $ 16,419 $ (4,264 ) $ 1,094 $ (25,416 ) $ 17,639 (in thousands) June 30, 2016 Expense Asset Write-Down Translation Cash Expenditures June 30, 2017 Industrial Severance $ 8,180 $ 39,214 $ — $ 229 $ (29,984 ) $ 17,639 Facilities — 237 (237 ) — — — Other 809 162 — (8 ) (869 ) 94 Total Industrial 8,989 39,613 (237 ) 221 (30,853 ) 17,733 Widia Severance 909 6,325 — 37 (4,837 ) 2,434 Facilities — 10 (10 ) — — — Other 90 26 — (1 ) (115 ) — Total Widia 999 6,361 (10 ) 36 (4,952 ) 2,434 Infrastructure Severance 5,301 17,710 — 103 (13,541 ) 9,573 Facilities 33 1,849 (1,849 ) — (12 ) 21 Other 381 73 — (4 ) (405 ) 45 Total Infrastructure 5,715 19,632 (1,849 ) 99 (13,958 ) 9,639 Total $ 15,703 $ 65,606 $ (2,096 ) $ 356 $ (49,763 ) $ 29,806 Asset impairment Charges See discussion on goodwill and other intangible asset impairment charges in Note 2. During 2016, we identified specific machinery and equipment that was no longer being utilized in the manufacturing organization of which we disposed by abandonment. As a result of this review, we recorded property, plant, and equipment impairment charges of $5.4 million during 2016, which has been presented in restructuring and asset impairment charges in our consolidated statement of income. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Jun. 30, 2018 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Financial Instruments Disclosure [Text Block] | FINANCIAL INSTRUMENTS The methods used to estimate the fair value of our financial instruments are as follows: Cash and Equivalents, Current Maturities of Long-Term Debt and Notes Payable to Banks The carrying amounts approximate their fair value because of the short maturity of the instruments. Long-Term Debt, Including Current Maturities Fixed rate debt had a fair market value of $996.4 million and $704.0 million at June 30, 2018 and 2017 , respectively. The fair value is determined based on the quoted market price of this debt as of June 30 and were classified in Level 2 of the fair value hierarchy. Foreign Exchange Contracts The notional amount of outstanding foreign exchange contracts, translated at current exchange rates, was $62.9 million and $75.3 million at June 30, 2018 and 2017 , respectively. We would have received $0.8 million and would have paid $0.8 million at June 30, 2018 and 2017 , respectively, to settle these contracts representing the fair value of these agreements. The carrying value equaled the fair value for these contracts at June 30, 2018 and 2017 . Fair value was estimated based on quoted market prices of comparable instruments. Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist primarily of temporary cash investments and trade receivables. By policy, we make temporary cash investments with high credit quality financial institutions and limit the amount of exposure to any one financial institution. With respect to trade receivables, concentrations of credit risk are significantly reduced because we serve numerous customers in many industries and geographic areas. We are exposed to counterparty credit risk for nonperformance of derivatives and, in the unlikely event of nonperformance, to market risk for changes in interest and currency exchange rates, as well as settlement risk. We manage exposure to counterparty credit risk through credit standards, diversification of counterparties and procedures to monitor concentrations of credit risk. We do not anticipate nonperformance by any of the counterparties. As of June 30, 2018 and 2017 , we had no significant concentrations of credit risk. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Stock Options There were no grants made during 2018 and 2017. The assumptions used in our Black-Scholes valuation related to grants made during 2016 were as follows: 2016 Risk-free interest rate 1.4 % Expected life (years) (4) 4.5 Expected volatility (5) 31.7 % Expected dividend yield 2.1 % (4) Expected life is derived from historical experience. (5) Expected volatility is based on the implied historical volatility of our stock. Changes in our stock options for 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 (625,503 ) 35.54 Lapsed and forfeited (111,296 ) 34.68 Options outstanding, June 30, 2018 989,992 $ 33.08 5.1 $ 5,170 Options vested and expected to vest, June 30, 2018 989,992 $ 33.08 5.1 $ 5,170 Options exercisable, June 30, 2018 812,159 $ 33.97 4.6 $ 3,851 During 2018 , 2017 and 2016 , compensation expense related to stock options was $0.7 million , $1.5 million and $3.3 million , respectively. As of June 30, 2018 , the total unrecognized compensation cost related to options outstanding was $0.1 million and is expected to be recognized over a weighted average period of 0.3 years. Weighted average fair value of options granted during 2016 was $6.45 per option. Fair value of options vested during 2018 , 2017 and 2016 was $1.9 million , $3.3 million and $2.3 million , respectively. Tax benefits relating to excess stock-based compensation deductions are presented in the consolidated statements of cash flow as operating cash inflows for 2018 and as financing cash inflows for 2017 and 2016 . Tax benefits resulting from stock-based compensation deductions were greater than the amounts reported for financial reporting purposes by an immaterial amount in 2018 . No tax benefits were realized resulting from stock-based compensation deductions for 2017 due to the valuation allowance on U.S. deferred tax assets, and tax benefits resulting from stock-based compensation deductions were less than the amounts reported for financial reporting purposes by $1.9 million in 2016 . The amount of cash received from the exercise of capital stock options during 2018 , 2017 and 2016 was $22.2 million , $21.3 million and $1.0 million , respectively. The related tax benefit in 2018 was $1.4 million . No related tax benefit was realized in 2017 due to the valuation allowance on U.S. deferred tax assets, and the related tax benefit was immaterial in 2016 . The total intrinsic value of options exercised in 2018 and 2017 was $6.6 million and $3.1 million , respectively, and was immaterial in 2016 . Under the provisions of the A/R 2010 Plan and the 2016 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 2018 , 2017 and 2016 were immaterial. Restricted Stock Units – Time Vesting and Performance Vesting Performance vesting restricted stock units are earned pro rata each year if certain performance goals are met over a three -year period, and are also subject to a service condition that requires the individual to be employed by the Company at the payment date after the three -year performance period, with the exception of retirement eligible grantees, who upon retirement are entitled to receive payment for any units that have been earned, including a prorated portion in the partially completed fiscal year in which the retirement occurs. Time vesting stock units are valued at the market value of the stock on the grant date. Performance vesting stock units with a market condition are valued using a Monte Carlo model. Changes in our time vesting and performance vesting restricted stock units for 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 (421,625 ) 30.29 Performance metric adjustments, net 16,766 25.88 — — Forfeited (36,085 ) 30.91 (82,535 ) 30.81 Unvested, June 30, 2018 409,297 $ 31.22 1,083,675 $ 30.47 During 2018 , 2017 and 2016 , compensation expense related to time vesting and performance vesting restricted stock units was $19.4 million , $19.3 million and $14.6 million , respectively. As of June 30, 2018 , the total unrecognized compensation cost related to unvested time vesting and performance vesting restricted stock units was $13.9 million and is expected to be recognized over a weighted average period of 1.9 years. |
Environmental Matters
Environmental Matters | 12 Months Ended |
Jun. 30, 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 locations in the countries in which we operate. 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 potential liability associated with these Superfund sites based upon the best information currently available to us. We believe our environmental accruals will be adequate to cover our portion of the environmental remedial costs at those 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 June 30, 2018 and 2017 , the balance of these reserves was $12.5 million and $12.4 million , respectively. These reserves represent anticipated costs associated with the remediation of these environmental issues and are generally not discounted. The reserves we have established for our potential environmental liabilities represent our best current estimate of the costs of addressing all identified environmental situations, based on our review of currently available evidence, taking into consideration our prior experience in environmental remediation and the experiences 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 our reserves currently appear to be sufficient to cover our potential environmental liabilities, there are uncertainties associated with environmental remediation matters, and we can give no assurance that our estimate of any environmental liability will not increase or decrease in the future. Our reserved and unreserved liabilities for environmental matters 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 EHS Department to monitor our compliance with environmental regulations and to oversee our 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. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | COMMITMENTS AND CONTINGENCIES Legal Matters Various lawsuits arising during the normal course of business are pending against us. In our opinion, the ultimate liability, if any, resulting from these matters will have no significant effect on our consolidated financial positions or results of operations. Lease Commitments We lease a wide variety of facilities and equipment under operating leases, primarily for warehouses, production and office facilities and equipment. Lease expense under these rentals amounted to $26.6 million , $26.3 million and $28.6 million in 2018 , 2017 and 2016 , respectively. Future minimum lease payments for non-cancelable operating leases are $17.6 million , $13.7 million , $9.3 million , $5.4 million and $4.1 million for the years 2019 through 2023 and $15.2 million thereafter. Purchase Commitments We have purchase commitments for materials, supplies and machinery and equipment as part of the ordinary conduct of business. Some of these commitments extend beyond one year and are based on minimum purchase requirements. We believe these commitments are not at prices in excess of current market. Other Contractual Obligations We do not have material financial guarantees or other contractual commitments that are reasonably likely to adversely affect our liquidity. Related Party Transactions Sales to affiliated companies were immaterial in 2018 , 2017 and 2016 . We do not have any other related party transactions that affect our operations, results of operations, cash flow or financial condition |
Segment Data
Segment Data | 12 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT DATA | SEGMENT DATA The Company manages and reports its business in the following three segments: Industrial, Widia and Infrastructure. The Company's reportable operating segments have been determined in accordance with the Company's internal management structure, which is organized based on operating activities, the manner in which we organize segments for making operating decisions and assessing performance and the availability of separate financial results. We do not allocate certain corporate expenses related to executive retirement plans, the Company’s Board of Directors and strategic initiatives, as well as certain other costs and report them in Corporate. None of our reportable operating segments represent the aggregation of two or more operating segments. Sales to a single customer did not aggregate 4 percent or more of total sales in 2018 , 2017 and 2016 . Export sales from U.S. operations to unaffiliated customers were $72.4 million , $58.6 million and $65.3 million in 2018 , 2017 and 2016 , respectively. INDUSTRIAL The Industrial segment generally serves customers that operate in industrial end markets such as transportation, general engineering, aerospace and defense market sectors, 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. WIDIA 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. INFRASTRUCTURE 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. Segment data is summarized as follows: (in thousands) 2018 2017 2016 Sales: Industrial $ 1,292,098 $ 1,126,309 $ 1,098,439 Widia 198,568 177,662 170,723 Infrastructure 877,187 754,397 829,274 Total sales $ 2,367,853 $ 2,058,368 $ 2,098,436 Operating income (loss): Industrial $ 187,495 $ 82,842 $ 90,324 Widia 4,441 (9,606 ) (9,081 ) Infrastructure 119,701 40,011 (246,306 ) Corporate (4,072 ) (303 ) (9,880 ) Total operating income (loss) $ 307,565 $ 112,944 $ (174,943 ) Interest expense $ 30,081 $ 28,842 $ 27,752 Other expense (income), net 2,443 2,227 (4,124 ) Income (loss) before income taxes $ 275,041 $ 81,875 $ (198,571 ) Depreciation and amortization: Industrial $ 57,261 $ 54,269 $ 52,523 Widia 9,483 10,728 10,419 Infrastructure 41,916 42,596 54,459 Corporate 20 63 65 Total depreciation and amortization $ 108,680 $ 107,656 $ 117,466 Total assets: Industrial $ 1,169,610 $ 1,103,686 $ 1,019,887 Widia 193,971 191,626 195,339 Infrastructure 864,402 813,747 849,447 Corporate 697,754 306,437 298,110 Total assets $ 2,925,737 $ 2,415,496 $ 2,362,783 Capital expenditures: Industrial $ 112,124 $ 70,281 $ 66,467 Widia 17,445 17,853 14,093 Infrastructure 41,435 29,884 30,137 Total capital expenditures $ 171,004 $ 118,018 $ 110,697 Geographic information for sales, based on country where the sale originated, and long-lived assets is as follows: (in thousands) 2018 2017 2016 Sales: United States (6) $ 970,003 $ 868,466 $ 866,197 Germany 331,893 282,347 334,366 China 271,343 220,561 210,124 Canada (6) 102,139 85,488 87,014 India 102,120 84,769 77,934 Italy 69,049 59,967 69,821 France 62,982 56,231 56,264 United Kingdom 45,714 39,731 50,723 Other (7) 412,610 360,808 345,993 Total sales $ 2,367,853 $ 2,058,368 $ 2,098,436 Total long-lived assets: United States $ 456,678 $ 423,543 $ 424,970 Germany 188,673 157,323 143,855 China 67,462 60,908 62,614 India 31,984 28,569 23,797 Israel 25,831 26,627 23,083 Canada 19,396 19,576 18,587 Other 34,189 34,822 33,734 Total long-lived assets (8) : $ 824,213 $ 751,368 $ 730,640 (6) Sales of $28.9 million and $31.2 million have been reclassified out of United States and into Canada for 2017 and 2016, respectively, to revise a single legal entity's sales attribution by country from the basis of location to which the product is shipped to the intended basis of location where the sale originated. These misstatements were not material to our current or any prior period financial statements. (7) Other consists of sales from 26 countries, none of which individually exceed 2 percent of total sales. (8) Total long-lived assets as of June 30, 2018 and 2016 include property, plant and equipment, net of $824.2 million and $730.6 million , respectively. Total long-lived assets as of June 30, 2017 include property, plant and equipment, net of $744.4 million and assets held for sale of $7.0 million . Approximate sales by end markets as a percentage of consolidated sales are as follows: 2018 2017 2016 End markets: General engineering 41 % 39 % 38 % Transportation 20 20 21 Energy 17 18 17 Earthworks 14 15 16 Aerospace and defense 8 8 8 Total 100 % 100 % 100 % |
Selected Quarterly Financial Da
Selected Quarterly Financial Data | 12 Months Ended |
Jun. 30, 2018 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Information [Text Block] | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) For the quarter ended (in thousands, except per share data) September 30 December 31 March 31 June 30 2018 Sales $ 542,454 $ 571,345 $ 607,936 $ 646,119 Gross profit 184,993 192,545 219,461 235,294 Net income attributable to Kennametal 39,183 41,601 50,866 68,528 Basic earnings per share attributable to Kennametal (9) Net income 0.48 0.51 0.62 0.84 Diluted earnings per share attributable to Kennametal (9) Net income 0.48 0.50 0.61 0.83 2017 Sales $ 477,140 $ 487,573 $ 528,630 $ 565,025 Gross profit 143,530 147,623 186,265 180,289 Net (loss) income attributable to Kennametal (21,656 ) 7,262 38,890 24,643 Basic (loss) earnings per share attributable to Kennametal (9) Net income (0.27 ) 0.09 0.48 0.31 Diluted (loss) earnings per share attributable to Kennametal (9) Net income (0.27 ) 0.09 0.48 0.30 (9) Earnings per share amounts attributable to Kennametal for each quarter are computed using the weighted average number of shares outstanding during the quarter. Earnings per share amounts attributable to Kennametal for the full year are computed using the weighted average number of shares outstanding during the year. Thus, the sum of the four quarters’ earnings per share attributable to Kennametal does not always equal the full-year earnings per share attributable to Kennametal. |
Subsequent Events (Notes)
Subsequent Events (Notes) | 12 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS On July 9, 2018, we completed the early extinguishment of our $400.0 million Notes. We expect an immaterial effect to the statement of income in the September quarter of fiscal 2019 from the early extinguishment of debt. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Jun. 30, 2018 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (In thousands) For the year ended June 30 Balance at Beginning of Year Charges to Costs and Expenses Charged to Other Comprehensive Income (Loss) Recoveries Other Adjustments Deductions from Reserves Balance at End of Year 2018 Allowance for doubtful accounts $ 13,693 $ 1,831 $ — $ 559 $ (135 ) (1) $ (4,141 ) (2) $ 11,807 Reserve for excess and obsolete inventory 32,114 9,067 — — 108 (1) (10,032 ) (3) 31,257 Deferred tax asset valuation allowance 116,770 (94,641 ) (7) 511 — (1,011 ) (1) — 21,629 2017 Allowance for doubtful accounts $ 12,724 $ 3,589 $ — $ 45 $ (24 ) (1) $ (2,641 ) (2) $ 13,693 Reserve for excess and obsolete inventory 36,713 9,603 — — 328 (1) (14,530 ) (3) 32,114 Deferred tax asset valuation allowance 122,699 2,361 (5,805 ) — (2,485 ) (6) — 116,770 2016 Allowance for doubtful accounts $ 13,560 $ 4,827 $ — $ 31 $ (601 ) (4) $ (5,093 ) (2) $ 12,724 Reserve for excess and obsolete inventory 45,020 5,393 — — (3,372 ) (4) (10,328 ) (3) 36,713 Deferred tax asset valuation allowance 16,771 85,361 (5) 24,666 (5) — (4,099 ) (4) — 122,699 (1) Represents foreign currency translation adjustment. (2) Represents uncollected accounts charged against the allowance. (3) Represents scrapped inventory and other charges against the reserve. (4) Represents foreign currency translation adjustment and reserves divested through business combinations. (5) Represents primarily effects from the recording of a valuation allowance against our net deferred tax assets in the U.S. (6) Represents the shortfall on restricted stock units and non-qualified stock options which resulted in a reduction of our deferred tax asset and subsequently the valuation allowance, in addition to foreign currency translation adjustment. (7) Represents primarily the effects from the release of the valuation allowance against our net deferred tax assets in the U.S. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | PRINCIPLES OF CONSOLIDATION The consolidated financial statements include our accounts and those of our majority-owned subsidiaries. All significant intercompany balances and transactions are eliminated. Investments in entities of less than 50 percent of the voting stock over which we have significant influence are accounted for on an equity basis. The factors used to determine significant influence include, but are not limited to, our management involvement in the investee, such as hiring and setting compensation for management of the investee, the ability to make operating and capital decisions of the investee, representation on the investee’s board of directors and purchase and supply agreements with the investee. Investments in entities of less than 50 percent of the voting stock in which we do not have significant influence are accounted for on the cost basis. |
Use of Estimates in the Preparation of Financial Statements | USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS In preparing our consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP), we make judgments and estimates about the amounts reflected in our financial statements. As part of our financial reporting process, our management collaborates to determine the necessary information on which to base our judgments and develop estimates used to prepare the financial statements. We use historical experience and available information to make these judgments and estimates. However, different amounts could be reported using different assumptions and in light of different facts and circumstances. Therefore, actual amounts could differ from the estimates reflected in our financial statements. |
Cash and Cash Equivalents | CASH AND CASH EQUIVALENTS Cash investments having original maturities of three months or less are considered cash equivalents. Cash equivalents principally consist of investments in money market funds and bank deposits at June 30, 2018 . |
Accounts Receivable | ACCOUNTS RECEIVABLE We market our products to a diverse customer base throughout the world. Trade credit is extended based upon periodically updated evaluations of each customer’s ability to satisfy its obligations. We make judgments as to our ability to collect outstanding receivables and provide allowances for the portion of receivables when collection becomes doubtful. Accounts receivable reserves are determined based upon an aging of accounts and a review of specific accounts. |
Inventory | INVENTORIES We use the last-in, first-out (LIFO) method for determining the cost of a significant portion of our United States ((U.S.) inventories, and they are stated at the lower of cost or market. The cost of the remainder of our inventories is measured using approximate costs determined on the first-in, first-out basis or using the average cost method, and are stated at the lower of cost or net realizable value. When market conditions indicate an excess of carrying costs over market value, a lower of cost or net realizable value provision or a lower of cost or market provision, as applicable, is recorded. Excess and obsolete inventory reserves are established based upon our evaluation of the quantity of inventory on hand relative to demand. The excess and obsolete inventory reserve at June 30, 2018 and 2017 was $31.3 million and $32.1 million , respectively. |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are carried at cost. Major improvements are capitalized, while maintenance and repairs are expensed as incurred. Retirements and disposals are removed from cost and accumulated depreciation accounts, with the gain or loss reflected in operating income. Interest related to the construction of major facilities is capitalized as part of the construction costs and is depreciated over the facilities' estimated useful lives. Depreciation for financial reporting purposes is computed using the straight-line method over the following estimated useful lives: building and improvements over 15 - 40 years; machinery and equipment over 4 - 15 years; furniture and fixtures over 5 - 10 years and computer hardware and software over 3 - 5 years. Leased property and equipment under capital leases are depreciated using the straight-line method over the terms of the related leases. |
Long Lived Assets | LONG-LIVED ASSETS We evaluate the recoverability of property, plant and equipment and intangible assets that are amortized, whenever events or changes in circumstances indicate the carrying amount of any such assets may not be fully recoverable. Changes in circumstances include technological advances, changes in our business model, capital structure, economic conditions or operating performance. Our evaluation is based upon, among other things, our assumptions about the estimated future undiscounted cash flows these assets are expected to generate. When the sum of the undiscounted cash flows is less than the carrying value of the asset or asset group, we will recognize an impairment loss to the extent that carrying value exceeds fair value. We apply our best judgment when performing these evaluations to determine if a triggering event has occurred, the undiscounted cash flows used to assess recoverability and the fair value of the asset. |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill represents the excess of cost over the fair value of the net assets of acquired companies. Goodwill and other intangible assets with indefinite lives are tested at least annually for impairment. We perform our annual impairment tests during the June quarter in connection with our annual planning process unless there are impairment indicators based on the results of an ongoing cumulative qualitative assessment that warrant a test prior to that quarter. 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. The majority of our intangible assets with definite lives are amortized on a straight-line basis, while certain customer-related intangible assets are amortized on an accelerated method. Identifiable assets with finite lives are reviewed for impairment when events or circumstances indicate that the carrying value may not be recoverable. 2016 December Quarter Impairment Charge As previously disclosed, we recorded a preliminary non-cash pre-tax impairment charge during the three months ended December 31, 2015 of $106.1 million in the Infrastructure segment, of which $105.7 million was for goodwill and $0.4 million was for an indefinite-lived trademark intangible asset. We also recorded a preliminary non-cash pre-tax impairment charge during the three months ended December 31, 2015 of $2.3 million in the Widia segment for an indefinite-lived trademark intangible asset. These impairment charges are recorded in restructuring and asset impairment charges in our consolidated statements of income. 2016 Divestiture Impact on Goodwill During 2016, we completed the sale of non-core businesses. See Note 4. As a result of this transaction, goodwill decreased by $1.1 million and $6.5 million in our Industrial and Infrastructure segments, respectively. These decreases are recorded in loss on divestiture in our consolidated statements of income. 2016 Divestiture Impact on Other Intangible Assets The divestiture of non-core businesses completed during 2016 resulted in a reduction of $30.0 million in customer-related, $15.4 million in unpatented technology, $5.0 million in indefinite-lived trademarks, $1.1 million in definite-lived trademarks, $0.8 million in technology-based and other and $0.5 million in contract-based. 2017 Reorganization Impact on Goodwill At the beginning of fiscal 2017, we reorganized our operating structure in a manner that changed the composition of our reporting units. The Industrial and Widia reporting units in fiscal 2017 were formed from the fiscal 2016 Industrial reporting unit. In connection with this reporting unit realignment, during the first quarter of fiscal 2017 we updated our goodwill impairment assessment based on a quantitative analysis. We allocated our goodwill from the former Industrial segment to the current Industrial and Widia segments using a relative fair value approach. We evaluated the goodwill of our reporting units immediately prior to and after the realignment and concluded in both cases that there was no impairment. We performed our annual goodwill and indefinite-lived intangible assets impairment test during the June quarter of fiscal 2018 and concluded that there was no impairment. |
Pension and Other Postretirement Benefits | PENSION AND OTHER POSTRETIREMENT BENEFITS We sponsor these types of benefit plans for certain employees and retirees. Accounting for the cost of these plans requires the estimation of the cost of the benefits to be provided well into the future and attributing that cost over either the expected work life of employees or over average life of participants participating in these plans, depending on plan status and on participant population. This estimation requires our judgment about the discount rate used to determine these obligations, expected return on plan assets, rate of future compensation increases, rate of future health care costs, withdrawal and mortality rates and participant retirement age. Differences between our estimates and actual results may significantly affect the cost of our obligations under these plans. In the valuation of our pension and other postretirement benefit liabilities, management utilizes various assumptions. Discount rates are derived by identifying a theoretical settlement portfolio of high quality corporate bonds sufficient to provide for a plan’s projected benefit payments. This rate can fluctuate based on changes in the corporate bond yields. The long-term rate of return on plan assets is estimated based on an evaluation of historical returns for each asset category held by the plans, coupled with the current and short-term mix of the investment portfolio. The historical returns are adjusted for expected future market and economic changes. This return will fluctuate based on actual market returns and other economic factors. The rate of future health care costs is based on historical claims and enrollment information projected over the next year and adjusted for administrative charges. This rate is expected to decrease until 2027. Future compensation rates, withdrawal rates and participant retirement age are determined based on historical information. These assumptions are not expected to significantly change. Mortality rates are determined based on a review of published mortality tables. |
Earnings Per Share | EARNINGS PER SHARE Basic earnings per share is computed using the weighted average number of shares outstanding during the period, while diluted earnings per share is calculated to reflect the potential dilution that 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 1.2 million shares and 0.8 million shares for the fiscal year ended June 30, 2018 and 2017 , respectively. Unexercised capital stock options, performance awards and restricted stock units of 0.4 million shares and 1.4 million shares for the fiscal year ended June 30, 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. In 2016 , the effect of unexercised capital stock options, unvested performance awards and unvested restricted stock units was anti-dilutive as a result of a net loss in the periods and therefore has been excluded from diluted shares outstanding as well as from the diluted earnings per share calculation. |
Revenue Recognition | REVENUE RECOGNITION We recognize revenue for our products and assembled machines when title and all risks of loss and damages pass to the buyer. Our general conditions of sale explicitly state that the delivery of our products and assembled machines is freight on board shipping point and that title and all risks of loss and damage pass to the buyer upon delivery of the sold products or assembled machines to the common carrier. We recognize revenue related to the sale of specialized assembled machines upon customer acceptance and installation, as installation is deemed essential to the functionality of a specialized assembled machine. Sales of specialized assembled machines were immaterial for 2018 , 2017 and 2016 . Our general conditions of sale explicitly state that acceptance of the conditions of shipment are considered to have occurred unless written notice of objection is received by Kennametal within 10 calendar days of the date specified on the invoice. We do not ship products or assembled machines unless we have documentation from our customers authorizing shipment. The majority of our products are consumed by our customers in the manufacture of their products. Historically, we have experienced very low levels of returned products and assembled machines and do not consider the effect of returned products and assembled machines to be material. We have recorded an estimated returned goods allowance to provide for any potential returns. We warrant that products and services sold are free from defects in material and workmanship under normal use and service when correctly installed, used and maintained. This warranty terminates 30 days after delivery of the product to the customer and does not apply to products that have been subjected to misuse, abuse, neglect or improper storage, handling or maintenance. Products may be returned to Kennametal, only after inspection and approval by Kennametal and upon receipt by the customer of shipping instructions from Kennametal. We have included an estimated allowance for warranty returns in our returned goods allowance. |
Stock-Based Compensation | STOCK-BASED COMPENSATION We recognize stock-based compensation expense for all stock options, restricted stock awards and restricted stock units over the period from the date of grant to the date when the award is no longer contingent on the employee providing additional service (substantive vesting period), net of expected forfeitures. We utilize the Black-Scholes valuation method to establish the fair value of all stock option awards. Time vesting stock units are valued at the market value of the stock on the grant date. Performance vesting stock units with a market condition are valued using a Monte Carlo model. Capital stock options are granted to eligible employees at fair market value at the date of grant. Capital stock options are exercisable under specified conditions for up to 10 years from the date of grant. The Kennametal Inc. Stock and Incentive Plan of 2010, as Amended and Restated on October 22, 2013, and as further amended January 27, 2015 (A/R 2010 Plan) and the Kennametal Inc. 2016 Stock and Incentive Plan (2016 Plan) authorize the issuance of up to 9,500,000 shares of the Company’s capital stock plus any shares remaining unissued under the Kennametal Inc. Stock and Incentive Plan of 2002, as amended (2002 Plan). Under the provisions of the A/R 2010 Plan and 2016 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 2018 , 2017 and 2016 was immaterial. In addition to stock option grants, the A/R 2010 Plan and the 2016 Plan permit the award of stock appreciation rights, performance share awards, performance unit awards, restricted stock awards, restricted unit awards and share awards to directors, officers and key employees. |
Research and Development Costs | RESEARCH AND DEVELOPMENT COSTS Research and development costs of $38.9 million , $38.0 million and $39.4 million in 2018 , 2017 and 2016 , respectively, were expensed as incurred. These costs are included in operating expense in the consolidated statements of income. |
Shipping and Handling Fees and Costs | SHIPPING AND HANDLING FEES AND COSTS All fees billed to customers for shipping and handling are classified as a component of sales. All costs associated with shipping and handling are classified as a component of cost of goods sold. |
Income Taxes | INCOME TAXES Deferred income taxes are recognized based on the future income tax effects (using enacted tax laws and rates) of differences in the carrying amounts of assets and liabilities for financial reporting and tax purposes. A valuation allowance is recognized if it is “more likely than not” that some or all of a deferred tax asset will not be realized. |
Derivative Instruments and Hedging Activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES As part of our financial risk management program, we use certain derivative financial instruments. We do not enter into derivative transactions for speculative purposes and, therefore, hold no derivative instruments for trading purposes. We use derivative financial instruments to provide predictability to the effects of changes in foreign exchange rates on our consolidated results, achieve our targeted mix of fixed and floating interest rates on our outstanding debt. Our objective in managing foreign exchange exposures with derivative instruments is to reduce volatility in cash flow, allowing us to focus more of our attention on business operations. With respect to interest rate management, these derivative instruments allow us to achieve our targeted fixed-to-floating interest rate mix, as a separate decision from funding arrangements, in the bank and public debt markets. We account for derivative instruments as a hedge of the related asset, liability, firm commitment or anticipated transaction, when the derivative is specifically designated as a hedge of such items. We measure hedge effectiveness by assessing the changes in the fair value or expected future cash flows of the hedged item. The ineffective portions are recorded in other expense (income), net. Certain currency forward contracts hedging significant cross-border intercompany loans are considered other derivatives and, therefore, do not qualify for hedge accounting. These contracts are recorded at fair value in the balance sheet, with the offset to other expense (income), net. |
Cash Flow Hedges | CASH FLOW HEDGES Currency Forward contracts and range forward contracts (a transaction where both a put option is purchased and a call option is sold) are designated as cash flow hedges and hedge anticipated cash flows from cross-border intercompany sales of products and services. Gains and losses realized on these contracts are recorded in accumulated other comprehensive (loss) income, and are recognized as a component of other expense (income), net when the underlying sale of products or services is recognized into earnings. |
Fair Value Hedges | FAIR VALUE HEDGES Interest Rate Fixed-to-floating interest rate swap contracts, designated as fair value hedges, are entered into from time to time to hedge our exposure to fair value fluctuations on a portion of our fixed rate debt. These interest rate swap contracts convert a portion of our fixed rate debt to floating rate debt. When in place, these contracts require periodic settlement, and the difference between amounts to be received and paid under the contracts is recognized in interest expense. |
Net Investment Hedges [Policy Text Block] | NET INVESTMENT HEDGES We designate financial instruments as net investment hedges from time to time to hedge the foreign exchange exposure of our net investment in foreign currency-based subsidiaries. The remeasurements of these non-derivatives designated as net investment hedges are calculated each period with changes reported in foreign currency translation adjustment within accumulated other comprehensive loss. Such amounts will remain in accumulated other comprehensive loss unless we complete or substantially complete liquidation or disposal of our investment in the underlying foreign operations. |
Currency Translation | CURRENCY TRANSLATION Assets and liabilities of international operations are translated into U.S. dollars using year-end exchange rates, while revenues and expenses are translated at average exchange rates throughout the year. The resulting net translation adjustments are recorded as a component of accumulated other comprehensive loss. The local currency is the functional currency of most of our locations. Losses of $6.4 million and $6.7 million and a gain of $1.6 million from currency transactions were included in other expense (income), net in 2018 , 2017 and 2016 , respectively. |
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 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 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 $3.1 million and $3.2 million in 2017 and 2016, respectively. 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 consolidated financial statements. Issued In June 2018, the FASB issued ASU No. 2018-07, “Improvements to Nonemployee Share-Based Payment Accounting" which expands the scope of accounting for stock-based compensation to nonemployees. This guidance is effective for Kennametal July 1, 2019. We are in the process of assessing the impact the adoption of this guidance may have on our consolidated financial statements. 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 optional and is effective for Kennametal 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 consolidated financial statements and determining whether we will adopt this guidance. In August 2017, the FASB issued ASU No. 2017-12, "Targeted Improvements to Accounting for Hedging Activities," which seeks to improve financial reporting and obtain closer alignment with risk management activities, in addition to simplifying the application of hedge accounting guidance and additional disclosures. This guidance is effective for Kennametal July 1, 2019. We are in the process of assessing the impact the adoption of this guidance may have on our consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, "Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting," which clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. This guidance is effective for Kennametal beginning July 1, 2018. We do not expect the adoption of this guidance to have a material effect on our consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, "Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost," which requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. This guidance is effective for Kennametal beginning July 1, 2018, with the amendments to be applied retrospectively. We expect to reclassify combined effects of pension income and postretirement benefit cost of approximately $17 million and $18 million out of operating income and into non-operating income for 2018 and 2017, respectively, when comparative financial information is presented going forward. In October 2016, the FASB issued ASU No. 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory," which clarifies that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. This guidance is effective for Kennametal beginning July 1, 2018. We do not expect the adoption of this guidance to have a material effect on our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, "Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force)," which addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice with respect to how these are classified in the statement of cash flows. This guidance is effective for Kennametal beginning July 1, 2018. We do not expect the adoption of this guidance to have a material effect on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, "Measurement of Credit Losses on Financial Instruments," which introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. Beyond other modifications in the update, the scope of this amendment includes valuation of trade receivables. This standard is effective for Kennametal beginning July 1, 2020. We are in the process of assessing the impact the adoption of this guidance will have on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases: Topic 842," which replaces the existing guidance in ASC 840, Leases. The standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. This standard is effective for Kennametal beginning July 1, 2019. We have a project team in place that will begin inventorying our leasing arrangements. We are in the process of assessing the impact the adoption of this guidance will have on our consolidated financial statements. As of June 30, 2018 , our undiscounted future minimum payments outstanding for lease obligations were approximately $65 million . In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers: Topic 606.” This ASU, along with subsequent complementary updates in ASU Nos. 2015-14, 2016-08, 2016-10 and 2016-12 among others, 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 adopted 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, and concluded that the new standard will not affect the timing nor measurement of revenue for these contracts in comparison to the results of historical accounting policies and practices. We do not expect the adoption of this guidance to have a material effect on our consolidated financial statements other than additional disclosures. |
Supplemental Cash Flow Inform32
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Disclosures | Year ended June 30 (in thousands) 2018 2017 2016 Cash paid during the period for: Income taxes $ 35,974 $ 16,755 $ 43,733 Interest 27,887 27,529 26,250 Supplemental disclosure of non-cash information: Changes in accounts payable related to purchases of property, plant and equipment 9,500 (3,900 ) 1,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial instruments at fair value on recurring basis | As of June 30, 2018 , the fair values of the Company’s financial assets and financial liabilities measured at fair value on a recurring basis are categorized as follows: (in thousands) Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 1,665 $ — $ 1,665 Total assets at fair value $ — $ 1,665 $ — $ 1,665 Liabilities: Derivatives (1) $ — $ 207 $ — $ 207 Total liabilities at fair value $ — $ 207 $ — $ 207 As of June 30, 2017 , the fair value of the Company’s financial assets and financial liabilities measured at fair value on a recurring basis are categorized as follows: (in thousands) Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 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 He34
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair value of derivatives designated and not designated as hedging instruments | The fair value of derivatives designated and not designated as hedging instruments in the consolidated balance sheet are as follows: (in thousands) 2018 2017 Derivatives designated as hedging instruments Other current assets - range forward contracts $ 799 $ 1 Other current liabilities - range forward contracts (5 ) (671 ) Other assets - range forward contracts 27 — Other liabilities - range forward contracts — (101 ) Total derivatives designated as hedging instruments 821 (771 ) Derivatives not designated as hedging instruments Other current assets - currency forward contracts 839 358 Other current liabilities - currency forward contracts (202 ) (138 ) Total derivatives not designated as hedging instruments 637 220 Total derivatives $ 1,458 $ (551 ) |
Losses (gains) related to derivatives not designated as hedging instruments | Gains related to derivatives not designated as hedging instruments have been recognized as follows: (in thousands) 2018 2017 2016 Other expense (income), net - currency forward contracts $ (122 ) $ (873 ) $ 719 |
Losses related to cash flow hedges | The following represents gains and losses related to cash flow hedges: (in thousands) 2018 2017 2016 Losses recognized in other comprehensive income (loss), net $ (922 ) $ (471 ) $ (297 ) Losses reclassified from accumulated other comprehensive loss into other expense (income), net $ 3,001 $ 1,557 $ 381 |
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | As of June 30, 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 € 27,325 $ 31,819 June 26, 2022 Foreign currency-denominated intercompany loan payable 8,707 10,139 November 20, 2018 Foreign currency-denominated intercompany loan payable 2,014 2,345 October 11, 2019 (2) Includes principal and accrued interest. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following at June 30: (in thousands) 2018 2017 Finished goods $ 279,240 $ 290,817 Work in process and powder blends 232,973 166,857 Raw materials 96,859 87,627 Inventories at current cost 609,072 545,301 Less: LIFO valuation (83,606 ) (57,620 ) Total inventories $ 525,466 $ 487,681 |
Goodwill and Other Intangible36
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets [Abstract] | |
Schedule of Goodwill [Table Text Block] | A summary of the carrying amount of goodwill attributable to each segment, as well as the changes in such, is as follows: (in thousands) Industrial Widia Infrastructure Total Gross goodwill $ 408,705 $ 40,624 $ 633,211 $ 1,082,540 Accumulated impairment losses (137,204 ) (13,638 ) (633,211 ) (784,053 ) Balance as of June 30, 2016 $ 271,501 $ 26,986 $ — $ 298,487 Activity for 2017: Change in gross goodwill due to translation 1,989 891 — 2,880 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 2018: Change in gross goodwill due to translation 764 (329 ) — 435 Gross goodwill 411,458 41,186 633,211 1,085,855 Accumulated impairment losses (137,204 ) (13,638 ) (633,211 ) (784,053 ) Balance as of June 30, 2018 $ 274,254 $ 27,548 $ — $ 301,802 |
Components of Other Intangible Assets [Table Text Block] | The components of our other intangible assets were as follows: Estimated Useful Life (in years) June 30, 2018 June 30, 2017 (in thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Contract-based 3 to 15 $ 7,061 $ (7,036 ) $ 7,064 $ (7,014 ) Technology-based and other 4 to 20 46,666 (30,923 ) 46,461 (29,061 ) Customer-related 10 to 21 206,162 (85,301 ) 205,502 (74,669 ) Unpatented technology 10 to 30 31,854 (13,096 ) 31,754 (10,589 ) Trademarks 5 to 20 12,450 (8,978 ) 12,401 (8,648 ) Trademarks Indefinite 17,609 — 17,326 — Total $ 321,802 $ (145,334 ) $ 320,508 $ (129,981 ) |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Other Liabilities, Current [Abstract] | |
Other Current Liabilities [Text Block] | Other current liabilities consisted of the following at June 30: (in thousands) 2018 2017 Accrued employee benefits $ 48,889 $ 39,478 Accrued restructuring (Note 15) 17,469 27,294 Payroll, state and local taxes 10,146 9,943 Accrued legal and professional fees 9,291 10,741 Accrued interest 7,898 7,048 Other 56,893 58,443 Total other current liabilities $ 150,586 $ 152,947 |
Long-Term Debt and Capital Le38
Long-Term Debt and Capital Leases (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Schedule of Debt [Abstract] | |
Schedule of Debt [Table Text Block] | Long-term debt and capital lease obligations consisted of the following at June 30: (in thousands) 2018 2017 2.650% Senior Unsecured Notes due fiscal 2020, net of discount of $0.1 million for 2018 and $0.2 million for 2017 $ 399,898 $ 399,823 3.875% Senior Unsecured Notes due fiscal 2022, net of discount of $0.1 million for 2018 and $0.2 million for 2017 299,868 299,831 4.625% Senior Unsecured Notes due fiscal 2028, net of discount of $2.2 million for 2018 297,813 — Capital leases with terms expiring through 2018 at 3.9% in 2017 — 190 Total debt and capital leases 997,579 699,844 Less unamortized debt issuance costs (6,808 ) (4,663 ) Less current maturities: Long-term debt (399,266 ) — Capital leases — (190 ) Total long-term debt $ 591,505 $ 694,991 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Before Income Taxes | Income (loss) before income taxes consisted of the following for the years ended June 30: (in thousands) 2018 2017 2016 Income (loss) before income taxes: United States $ 57,109 $ (23,055 ) $ (228,667 ) International 217,932 104,930 30,096 Total income (loss) before income taxes $ 275,041 $ 81,875 $ (198,571 ) Current income taxes: Federal $ 3,755 $ (1,455 ) $ (15,039 ) State (816 ) 172 454 International 44,127 24,911 31,570 Total current income taxes 47,066 23,628 16,985 Deferred income taxes: Federal $ 1,121 $ 298 $ 6,786 State 3,552 (867 ) 8,407 International 18,242 6,836 (6,865 ) Total deferred income taxes: 22,915 6,267 8,328 Provision for income taxes $ 69,981 $ 29,895 $ 25,313 Effective tax rate 25.4 % 36.5 % (12.7 )% |
Reconciliation of Income Taxes and the Provision for Income Taxes | The reconciliation of income taxes computed using the statutory U.S. income tax rate and the provision for income taxes was as follows for the years ended June 30: (in thousands) 2018 2017 2016 Income taxes at U.S. statutory rate $ 77,286 $ 28,656 $ (69,500 ) State income taxes, net of federal tax benefits 2,975 (306 ) 859 U.S. income taxes provided on international income 1,010 10,273 2,364 Combined tax effects of international income (9,333 ) (11,530 ) (25,469 ) Impact of goodwill impairment charges — — 6,439 Impact of divestiture — — 27,790 Change in valuation allowance and other uncertain tax positions (90,817 ) 5,163 84,530 Impact of domestic production activities deduction — — (2,072 ) Research and development credit (3,141 ) (1,895 ) (4,351 ) Change in permanent reinvestment assertion — — 3,659 Combined effects of tax reform 86,044 — — Adjustment to deferred tax charges on intra-entity transfers 5,297 — — Other 660 (466 ) 1,064 Provision for income taxes $ 69,981 $ 29,895 $ 25,313 |
Components of Net Deferred Tax Liabilities and Assets | The components of net deferred tax assets and (liabilities) were as follows at June 30: (in thousands) 2018 2017 Deferred tax assets: Net operating loss (NOL) carryforwards $ 39,884 $ 81,920 Inventory valuation and reserves 10,023 20,428 Pension benefits 15,750 24,824 Other postretirement benefits 3,996 5,959 Accrued employee benefits 15,697 18,409 Other accrued liabilities 9,386 8,609 Hedging activities 1,477 5,409 Tax credits and other carryforwards 644 37,603 Intangible assets — 14,947 Total 96,857 218,108 Valuation allowance (21,629 ) (116,770 ) Total deferred tax assets $ 75,228 $ 101,338 Deferred tax liabilities: Tax depreciation in excess of book $ 77,106 $ 83,258 Intangible assets 537 — Other 7,561 4,614 Total deferred tax liabilities $ 85,204 $ 87,872 Total net deferred tax assets $ (9,976 ) $ 13,466 |
Reconciliation of Unrecognized Tax Benefits Excluding Interest | A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest) is as follows as of June 30: (in thousands) 2018 2017 2016 Balance at beginning of year $ 2,632 $ 3,106 $ 14,619 Increases for tax positions of prior years 3,409 — 1,197 Decreases related to settlement with taxing authority — (231 ) (11,942 ) Decreases related to lapse of statute of limitations (289 ) (184 ) (667 ) Foreign currency translation 23 (59 ) (101 ) Balance at end of year $ 5,775 $ 2,632 $ 3,106 |
Pension and Other Postretirem40
Pension and Other Postretirement Benefits (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Funded Status of Pension Plans and Amount recognized in the Consolidated Balance Sheet | The funded status of our pension plans and amounts recognized in the consolidated balance sheets as of June 30 were as follows: (in thousands) 2018 2017 Change in benefit obligation: Benefit obligation, beginning of year $ 941,094 $ 1,005,368 Service cost 1,635 2,908 Interest cost 30,751 31,113 Participant contributions 3 8 Actuarial gains (24,501 ) (19,660 ) Benefits and expenses paid (47,212 ) (70,257 ) Currency translation adjustments 3,876 (1,045 ) Special termination benefits — 98 Plan settlements (2,935 ) (7,439 ) Benefit obligation, end of year $ 902,711 $ 941,094 Change in plans' assets: Fair value of plans' assets, beginning of year $ 808,635 $ 821,675 Actual return on plans' assets 24,931 56,818 Company contributions 7,999 11,960 Participant contributions 3 8 Plan settlements (2,935 ) (7,439 ) Benefits and expenses paid (47,212 ) (70,257 ) Currency translation adjustments 1,337 (4,130 ) Fair value of plans' assets, end of year $ 792,758 $ 808,635 Funded status of plans $ (109,953 ) $ (132,459 ) Amounts recognized in the balance sheet consist of: Long-term prepaid benefit $ 42,543 $ 17,208 Short-term accrued benefit obligation (6,699 ) (5,713 ) Accrued pension benefits (145,797 ) (143,954 ) Net amount recognized $ (109,953 ) $ (132,459 ) |
Defined Benefit Pension Plans Recognized in Accumulated Other Comprehensive (Loss) Income | The pre-tax amounts related to our defined benefit pension plans recognized in accumulated other comprehensive loss were as follows at June 30: (in thousands) 2018 2017 Unrecognized net actuarial losses $ 247,230 $ 246,428 Unrecognized net prior service credits 723 580 Unrecognized transition obligations 539 622 Total $ 248,492 $ 247,630 The pre-tax amounts related to our other postretirement benefit plans which were recognized in accumulated other comprehensive loss were as follows at June 30: (in thousands) 2018 2017 Unrecognized net actuarial losses $ 4,662 $ 5,266 Unrecognized net prior service credits (1,041 ) (128 ) Total $ 3,621 $ 5,138 |
Accumulated Benefit Obligations Exceeding Plan Assets Fair Value | Included in the above information are plans with accumulated benefit obligations exceeding the fair value of plan assets as of June 30 as follows: (in thousands) 2018 2017 Projected benefit obligation $ 152,485 $ 156,816 Accumulated benefit obligation 151,871 156,590 Fair value of plan assets — 7,083 |
Net Periodic Pension (Income) Cost | The components of net periodic pension income include the following as of June 30: (in thousands) 2018 2017 2016 Service cost $ 1,635 $ 2,908 $ 4,640 Interest cost 30,751 31,113 37,726 Expected return on plans' assets (56,579 ) (58,781 ) (58,523 ) Amortization of transition obligation 94 89 80 Amortization of prior service cost 48 (452 ) (417 ) Special termination benefit charge — 98 334 Settlement loss 626 379 227 Recognition of actuarial losses 6,907 8,356 7,286 Net periodic pension income $ (16,518 ) $ (16,290 ) $ (8,647 ) |
Funded Status of Other Postretirement Benefit Plans and Amount Recognized in the Consolidated Balance Sheet | The funded status of our other postretirement benefit plans and the related amounts recognized in the consolidated balance sheets were as follows: (in thousands) 2018 2017 Change in benefit obligation: Benefit obligation, beginning of year $ 18,160 $ 20,542 Interest cost 629 673 Actuarial losses (323 ) (747 ) Benefits paid (2,208 ) (2,308 ) Plan amendments (935 ) — Benefit obligation, end of year $ 15,323 $ 18,160 Funded status of plan $ (15,323 ) $ (18,160 ) Amounts recognized in the balance sheet consist of: Short-term accrued benefit obligation $ (1,598 ) $ (1,254 ) Accrued postretirement benefits (13,725 ) (16,906 ) Net amount recognized $ (15,323 ) $ (18,160 ) |
Net Periodic Other Postretirement Costs (Benefit) | The components of net periodic other postretirement benefit cost include the following for the years ended June 30: (in thousands) 2018 2017 2016 Interest cost 629 673 840 Amortization of prior service credit (22 ) (22 ) (22 ) Recognition of actuarial loss 280 355 324 Net periodic other postretirement benefit cost $ 887 $ 1,006 $ 1,142 |
Significant Actuarial Assumptions Used to Determine the Present Value of Net Benefit Obligations | The significant actuarial assumptions used to determine the present value of net benefit obligations for our defined benefit pension plans and other postretirement benefit plans were as follows: 2018 2017 2016 Discount Rate: U.S. plans 4.0-4.3% 3.3-3.9% 2.4-3.7% International plans 1.8-3.3% 2.0-3.3% 0.9-3.2% Rates of future salary increases: U.S. plans 4.0 % 4.0 % 3.0-4.0% International plans 2.5-3.0% 2.5-3.0% 2.5-3.0% The significant assumptions used to determine the net periodic (income) cost for our pension and other postretirement benefit plans were as follows: 2018 2017 2016 Discount Rate: U.S. plans 3.3-3.9% 2.4-3.7% 3.2-4.5% International plans 2.0-3.3% 0.9-3.2% 2.3-3.8% Rates of future salary increases: U.S. plans 4.0 % 3.0-4.0% 3.0-4.0% International plans 2.5-3.0% 2.5-3.0% 2.5-3.0% Rate of return on plans assets: U.S. plans 7.3 % 7.5 % 7.5 % International plans 5.3 % 5.3-5.5% 5.3-5.5% |
Annual Assumed Rate of Increase in Per Capita Cost of Covered Benefits for Postretirement Benefit Plans | The annual assumed rate of increase in the per capita cost of covered benefits (the health care cost trend rate) for our postretirement benefit plans was as follows: 2018 2017 2016 Health care costs trend rate assumed for next year 7.5 % 8.0 % 8.5 % Rate to which the cost trend rate gradually declines 5.0 % 5.0 % 5.0 % Year that the rate reaches the rate at which it is assumed to remain 2027 2027 2027 |
Calculated Effect of Change on Assumption Used to Calculate Interest Cost Components and Obligations of Healthcare Plans | A change of one percentage point in the assumed health care cost trend rates would have the following effects on the total service and interest cost components of our other postretirement cost and other postretirement benefit obligation at June 30, 2018 : (in thousands) 1% Increase 1% Decrease Effect on total service and interest cost components $ 27 $ (24 ) Effect on other postretirement obligation 492 (437 ) |
Asset Allocations and Target Allocations by Asset Class | The following table presents the fair value of the benefit plan assets by asset category as of June 30, 2018 : (in thousands) Level 1 Level 2 Level 3 NAV (3) Total Common / collective trusts (3) : Value funds $ — $ — $ — $ 74,070 $ 74,070 Growth funds — — — 49,438 49,438 Balanced funds — — — 11,854 11,854 Corporate fixed income securities — 350,394 — — 350,394 Common stock 83,361 — — — 83,361 Government securities: U.S. government securities — 62,381 — — 62,381 Foreign government securities — 46,286 — — 46,286 Other fixed income securities — 31,630 — — 31,630 Other 3,898 79,446 — — 83,344 Total investments $ 87,259 $ 570,137 $ — $ 135,362 $ 792,758 The following table presents the fair value of the benefit plan assets by asset category as of June 30, 2017 : (in thousands) Level 1 Level 2 Level 3 NAV (3) Total Common / collective trusts (3) : Value funds $ — $ — $ — $ 76,186 $ 76,186 Growth funds — — — 43,880 43,880 Balanced funds — — — 12,421 12,421 Corporate fixed income securities — 365,723 — — 365,723 Common stock 85,138 — — — 85,138 Government securities: U.S. government securities — 72,817 — — 72,817 Foreign government securities — 45,359 — — 45,359 Other fixed income securities — 25,761 — — 25,761 Other 3,313 78,037 — — 81,350 Total investments $ 88,451 $ 587,697 $ — 132,487 $ 808,635 (3) Investments in common / collective trusts invest primarily in publicly traded securities and are valued using net asset value (NAV) of units of a bank collective trust. Therefore, these amounts have not been classified in the fair value hierarchy and are presented in the tables to reconcile the fair value hierarchy to the total fair value of plan assets. Our defined benefit pension plans’ asset allocations as of June 30, 2018 and 2017 and target allocations for 2019 , by asset class, were as follows: 2018 2017 Target % Equity 28 % 27 % 24 % Fixed Income 62 63 69 Other 11 10 7 |
Accumulated Other Comprehensi41
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of Accumulated Other Comprehensive I(Loss) Income [Table Text Block] | The components of and changes in AOCL were as follows, net of tax, for the year ended June 30, 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 loss before reclassifications (5,991 ) (741 ) (922 ) (7,654 ) Amounts Reclassified from AOCL 7,274 — 3,747 11,021 Net current period other comprehensive income (loss) 1,283 (741 ) 2,825 3,367 AOCL, June 30, 2018 $ (187,755 ) $ (127,347 ) $ (5,223 ) $ (320,325 ) Attributable to noncontrolling interests: Balance, June 30, 2017 $ — $ (2,164 ) $ — $ (2,164 ) Other comprehensive loss before reclassifications — (749 ) — (749 ) Net current period other comprehensive loss — (749 ) — (749 ) AOCL, June 30, 2018 $ — $ (2,913 ) $ — $ (2,913 ) The components of and changes in AOCL were as follows, net of tax, for the year ended June 30, 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 15,559 4,606 (471 ) 19,694 Amounts Reclassified from AOCL 7,566 — 1,557 9,123 Net current period other comprehensive income 23,125 4,606 1,086 28,817 AOCL, June 30, 2017 $ (189,038 ) $ (126,606 ) $ (8,048 ) $ (323,692 ) Attributable to noncontrolling interests: Balance, June 30, 2016 $ — $ (3,446 ) $ — $ (3,446 ) Other comprehensive income before reclassifications — 1,282 — 1,282 Net current period other comprehensive income — 1,282 — 1,282 AOCL, June 30, 2017 $ — $ (2,164 ) $ — $ (2,164 ) The components of and changes in AOCL were as follows, net of tax, for the year ended June 30, 2016 (in thousands): Attributable to Kennametal: Postretirement benefit plans Currency translation adjustment Derivatives Total Balance, June 30, 2015 $ (138,793 ) $ (97,309 ) $ (7,421 ) $ (243,523 ) Other comprehensive loss before reclassifications (78,295 ) (51,508 ) (150 ) (129,953 ) Amounts Reclassified from AOCL 4,925 15,088 (1,563 ) 18,450 Net current period other comprehensive loss (73,370 ) (36,420 ) (1,713 ) (111,503 ) Sale of subsidiary stock to noncontrolling interest — 2,517 — 2,517 AOCL, June 30, 2016 $ (212,163 ) $ (131,212 ) $ (9,134 ) $ (352,509 ) Attributable to noncontrolling interests: Balance, June 30, 2015 $ — $ (2,258 ) $ — $ (2,258 ) Other comprehensive loss before — (1,188 ) — (1,188 ) Net current period other comprehensive loss — (1,188 ) — (1,188 ) AOCL, June 30, 2016 $ — $ (3,446 ) $ — $ (3,446 ) |
Reclassification out of Accumulated Other Comprehensive Loss | Reclassifications out of AOCL for the years ended June 30, 2018 , 2017 and 2016 consisted of the following: Year Ended June 30, Details about AOCL components 2018 2017 2016 Affected line item in the Income Statement Gains and losses on cash flow hedges: Forward starting interest rate swaps $ 2,265 $ 2,180 $ 2,099 Interest expense Currency exchange contracts 2,243 (623 ) (4,645 ) Other expense (income), net Total before tax 4,508 1,557 (2,546 ) Tax impact (761 ) — 983 Provision for income taxes Net of tax $ 3,747 $ 1,557 $ (1,563 ) Postretirement benefit plans: Amortization of transition obligations $ 94 $ 89 $ 80 See Note 13 for further details Amortization of prior service credit 26 (474 ) (439 ) See Note 13 for further details Recognition of actuarial losses 7,187 8,711 7,610 See Note 13 for further details Total before tax 7,307 8,326 7,251 Tax impact (33 ) (760 ) (2,326 ) Provision for income taxes Net of tax $ 7,274 $ 7,566 $ 4,925 Foreign currency translation adjustments: Released due to divestiture $ — $ — $ 15,088 Loss on divestiture Total before taxes — — 15,088 Tax impact — — — Provision for income taxes Net of tax $ — $ — $ 15,088 |
Amount of Income Tax (Expense) Benefit Allocated to Each Component of Other Comprehensive Income (Loss) [Table Text Block] | The amount of income tax allocated to each component of other comprehensive income for the year ended June 30, 2018 : (in thousands) Pre-tax Tax impact Net of tax Unrealized loss on derivatives designated and qualified as cash flow hedges $ (928 ) $ 6 $ (922 ) Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges 4,508 (761 ) 3,747 Unrecognized net pension and other postretirement benefit loss (8,043 ) 2,052 (5,991 ) Reclassification of net pension and other postretirement benefit loss 7,307 (33 ) 7,274 Foreign currency translation adjustments (1,593 ) 103 (1,490 ) Other comprehensive income $ 1,251 $ 1,367 $ 2,618 The amount of income tax allocated to each component of other comprehensive loss for the year ended June 30, 2017 : (in thousands) Pre-tax Tax impact Net of tax Unrealized loss on derivatives designated and qualified as cash flow hedges $ (471 ) $ — $ (471 ) Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges 1,557 — 1,557 Unrecognized net pension and other postretirement benefit gain 18,656 (3,097 ) 15,559 Reclassification of net pension and other postretirement benefit loss 8,326 (760 ) 7,566 Foreign currency translation adjustments 6,266 (378 ) 5,888 Other comprehensive income $ 34,334 $ (4,235 ) $ 30,099 The amount of income tax allocated to each component of other comprehensive loss for the year ended June 30, 2016 : (in thousands) Pre-tax Tax impact Net of tax Unrealized loss on derivatives designated and qualified as cash flow hedges $ (244 ) $ 94 $ (150 ) Reclassification of unrealized gain on expired derivatives designated and qualified as cash flow hedges (2,546 ) 983 (1,563 ) Unrecognized net pension and other postretirement benefit loss (84,266 ) 5,971 (78,295 ) Reclassification of net pension and other postretirement benefit loss 7,251 (2,326 ) 4,925 Foreign currency translation adjustments (52,699 ) 4 (52,695 ) Reclassification of foreign currency translation adjustment loss realized upon sale 15,088 — 15,088 Other comprehensive loss $ (117,416 ) $ 4,726 $ (112,690 ) |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Restructuring Charges [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The amount attributable to each segment is as follows: (in thousands) June 30, 2017 Expense Asset Write-Down Translation Cash Expenditures June 30, 2018 Industrial Severance $ 17,639 $ 9,734 $ — $ 868 $ (20,274 ) $ 7,967 Facilities — 3,084 (3,084 ) — — — Other 94 (85 ) — 1 (10 ) — Total Industrial 17,733 12,733 (3,084 ) 869 (20,284 ) 7,967 Widia Severance 2,434 475 — 42 (864 ) 2,087 Facilities — 747 (747 ) — — — Other — (4 ) — — 19 15 Total Widia 2,434 1,218 (747 ) 42 (845 ) 2,102 Infrastructure Severance 9,573 2,053 — 183 (4,251 ) 7,558 Facilities 21 433 (433 ) — (21 ) — Other 45 (18 ) — — (15 ) 12 Total Infrastructure 9,639 2,468 (433 ) 183 (4,287 ) 7,570 Total $ 29,806 $ 16,419 $ (4,264 ) $ 1,094 $ (25,416 ) $ 17,639 (in thousands) June 30, 2016 Expense Asset Write-Down Translation Cash Expenditures June 30, 2017 Industrial Severance $ 8,180 $ 39,214 $ — $ 229 $ (29,984 ) $ 17,639 Facilities — 237 (237 ) — — — Other 809 162 — (8 ) (869 ) 94 Total Industrial 8,989 39,613 (237 ) 221 (30,853 ) 17,733 Widia Severance 909 6,325 — 37 (4,837 ) 2,434 Facilities — 10 (10 ) — — — Other 90 26 — (1 ) (115 ) — Total Widia 999 6,361 (10 ) 36 (4,952 ) 2,434 Infrastructure Severance 5,301 17,710 — 103 (13,541 ) 9,573 Facilities 33 1,849 (1,849 ) — (12 ) 21 Other 381 73 — (4 ) (405 ) 45 Total Infrastructure 5,715 19,632 (1,849 ) 99 (13,958 ) 9,639 Total $ 15,703 $ 65,606 $ (2,096 ) $ 356 $ (49,763 ) $ 29,806 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Assumptions used in our Black-Scholes valuation | The assumptions used in our Black-Scholes valuation related to grants made during 2016 were as follows: 2016 Risk-free interest rate 1.4 % Expected life (years) (4) 4.5 Expected volatility (5) 31.7 % Expected dividend yield 2.1 % (4) Expected life is derived from historical experience. (5) Expected volatility is based on the implied historical volatility of our stock. |
Changes in stock options | Changes in our stock options for 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 (625,503 ) 35.54 Lapsed and forfeited (111,296 ) 34.68 Options outstanding, June 30, 2018 989,992 $ 33.08 5.1 $ 5,170 Options vested and expected to vest, June 30, 2018 989,992 $ 33.08 5.1 $ 5,170 Options exercisable, June 30, 2018 812,159 $ 33.97 4.6 $ 3,851 |
Changes in time vesting and performance vesting restricted stock units | Changes in our time vesting and performance vesting restricted stock units for 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 (421,625 ) 30.29 Performance metric adjustments, net 16,766 25.88 — — Forfeited (36,085 ) 30.91 (82,535 ) 30.81 Unvested, June 30, 2018 409,297 $ 31.22 1,083,675 $ 30.47 |
Segment Data (Tables)
Segment Data (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Data | Segment data is summarized as follows: (in thousands) 2018 2017 2016 Sales: Industrial $ 1,292,098 $ 1,126,309 $ 1,098,439 Widia 198,568 177,662 170,723 Infrastructure 877,187 754,397 829,274 Total sales $ 2,367,853 $ 2,058,368 $ 2,098,436 Operating income (loss): Industrial $ 187,495 $ 82,842 $ 90,324 Widia 4,441 (9,606 ) (9,081 ) Infrastructure 119,701 40,011 (246,306 ) Corporate (4,072 ) (303 ) (9,880 ) Total operating income (loss) $ 307,565 $ 112,944 $ (174,943 ) Interest expense $ 30,081 $ 28,842 $ 27,752 Other expense (income), net 2,443 2,227 (4,124 ) Income (loss) before income taxes $ 275,041 $ 81,875 $ (198,571 ) Depreciation and amortization: Industrial $ 57,261 $ 54,269 $ 52,523 Widia 9,483 10,728 10,419 Infrastructure 41,916 42,596 54,459 Corporate 20 63 65 Total depreciation and amortization $ 108,680 $ 107,656 $ 117,466 Total assets: Industrial $ 1,169,610 $ 1,103,686 $ 1,019,887 Widia 193,971 191,626 195,339 Infrastructure 864,402 813,747 849,447 Corporate 697,754 306,437 298,110 Total assets $ 2,925,737 $ 2,415,496 $ 2,362,783 Capital expenditures: Industrial $ 112,124 $ 70,281 $ 66,467 Widia 17,445 17,853 14,093 Infrastructure 41,435 29,884 30,137 Total capital expenditures $ 171,004 $ 118,018 $ 110,697 |
Geographic Information for Sales [Table Text Block] | Geographic information for sales, based on country where the sale originated, and long-lived assets is as follows: (in thousands) 2018 2017 2016 Sales: United States (6) $ 970,003 $ 868,466 $ 866,197 Germany 331,893 282,347 334,366 China 271,343 220,561 210,124 Canada (6) 102,139 85,488 87,014 India 102,120 84,769 77,934 Italy 69,049 59,967 69,821 France 62,982 56,231 56,264 United Kingdom 45,714 39,731 50,723 Other (7) 412,610 360,808 345,993 Total sales $ 2,367,853 $ 2,058,368 $ 2,098,436 Total long-lived assets: United States $ 456,678 $ 423,543 $ 424,970 Germany 188,673 157,323 143,855 China 67,462 60,908 62,614 India 31,984 28,569 23,797 Israel 25,831 26,627 23,083 Canada 19,396 19,576 18,587 Other 34,189 34,822 33,734 Total long-lived assets (8) : $ 824,213 $ 751,368 $ 730,640 (6) Sales of $28.9 million and $31.2 million have been reclassified out of United States and into Canada for 2017 and 2016, respectively, to revise a single legal entity's sales attribution by country from the basis of location to which the product is shipped to the intended basis of location where the sale originated. These misstatements were not material to our current or any prior period financial statements. (7) Other consists of sales from 26 countries, none of which individually exceed 2 percent of total sales. (8) Total long-lived assets as of June 30, 2018 and 2016 include property, plant and equipment, net of $824.2 million and $730.6 million , respectively. Total long-lived assets as of June 30, 2017 include property, plant and equipment, net of $744.4 million and assets held for sale of $7.0 million . |
Revenue from External Customers by Products and Services [Table Text Block] | Approximate sales by end markets as a percentage of consolidated sales are as follows: 2018 2017 2016 End markets: General engineering 41 % 39 % 38 % Transportation 20 20 21 Energy 17 18 17 Earthworks 14 15 16 Aerospace and defense 8 8 8 Total 100 % 100 % 100 % |
Selected Quarterly Financial 45
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Quarterly Financial Data [Abstract] | |
Selected Quarterly Financials Data [Table Text Block] | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) For the quarter ended (in thousands, except per share data) September 30 December 31 March 31 June 30 2018 Sales $ 542,454 $ 571,345 $ 607,936 $ 646,119 Gross profit 184,993 192,545 219,461 235,294 Net income attributable to Kennametal 39,183 41,601 50,866 68,528 Basic earnings per share attributable to Kennametal (9) Net income 0.48 0.51 0.62 0.84 Diluted earnings per share attributable to Kennametal (9) Net income 0.48 0.50 0.61 0.83 2017 Sales $ 477,140 $ 487,573 $ 528,630 $ 565,025 Gross profit 143,530 147,623 186,265 180,289 Net (loss) income attributable to Kennametal (21,656 ) 7,262 38,890 24,643 Basic (loss) earnings per share attributable to Kennametal (9) Net income (0.27 ) 0.09 0.48 0.31 Diluted (loss) earnings per share attributable to Kennametal (9) Net income (0.27 ) 0.09 0.48 0.30 (9) Earnings per share amounts attributable to Kennametal for each quarter are computed using the weighted average number of shares outstanding during the quarter. Earnings per share amounts attributable to Kennametal for the full year are computed using the weighted average number of shares outstanding during the year. Thus, the sum of the four quarters’ earnings per share attributable to Kennametal does not always equal the full-year earnings per share attributable to Kennametal. |
Summary of Significant Accoun46
Summary of Significant Accounting Policies - Goodwill (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Goodwill and Intangible Asset Impairment | $ 0 | |||
Goodwill, Gross | 1,085,855 | $ 1,085,420 | $ 1,082,540 | |
Goodwill, Accumulated Impairment Loss | 784,053 | 784,053 | 784,053 | |
Goodwill | 301,802 | 301,367 | 298,487 | |
Goodwill, Period Increase (Decrease) | 435 | 2,880 | ||
Industrial [Member] | ||||
Goodwill, Written off Related to Sale of Business Unit | (1,100) | |||
Goodwill, Gross | 411,458 | 410,694 | 408,705 | |
Goodwill, Accumulated Impairment Loss | (137,204) | (137,204) | (137,204) | |
Goodwill | 274,254 | 273,490 | 271,501 | |
Goodwill, Period Increase (Decrease) | 764 | 1,989 | ||
Infrastructure [Member] | ||||
Goodwill, Written off Related to Sale of Business Unit | (6,500) | |||
Goodwill and Intangible Asset Impairment | $ 106,100 | |||
Goodwill, Gross | 633,211 | 633,211 | 633,211 | |
Goodwill, Accumulated Impairment Loss | (633,211) | (633,211) | (633,211) | |
Goodwill | 0 | 0 | $ 0 | |
Goodwill, Period Increase (Decrease) | $ 0 | $ 0 | ||
Goodwill, Impairment Loss | (105,700) | |||
Trademarks [Member] | Industrial [Member] | ||||
Impairment of Intangible Assets (Excluding Goodwill) | 2,300 | |||
Trademarks [Member] | Infrastructure [Member] | ||||
Impairment of Intangible Assets (Excluding Goodwill) | $ 400 |
Summary of Significant Accoun47
Summary of Significant Accounting Policies (Details 1) - USD ($) $ in Thousands, shares in Millions | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 1.2 | 0.8 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ (145,334) | $ (129,981) |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.4 | 1.4 |
Contractual Rights [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 7,061 | $ 7,064 |
Finite-Lived Intangible Assets, Accumulated Amortization | (7,036) | (7,014) |
Technology-Based and other [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 46,666 | 46,461 |
Finite-Lived Intangible Assets, Accumulated Amortization | (30,923) | (29,061) |
Customer-related [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 206,162 | 205,502 |
Finite-Lived Intangible Assets, Accumulated Amortization | (85,301) | (74,669) |
Unpatented Technology [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 31,854 | 31,754 |
Finite-Lived Intangible Assets, Accumulated Amortization | (13,096) | (10,589) |
Trademarks [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 12,450 | 12,401 |
Finite-Lived Intangible Assets, Accumulated Amortization | (8,978) | (8,648) |
Trademarks [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 17,609 | $ 17,326 |
Minimum [Member] | Contractual Rights [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 3 years | |
Minimum [Member] | Technology-Based and other [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 4 years | |
Minimum [Member] | Customer-related [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | |
Minimum [Member] | Unpatented Technology [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | |
Minimum [Member] | Trademarks [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 5 years | |
Maximum [Member] | Contractual Rights [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 15 years | |
Maximum [Member] | Technology-Based and other [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 20 years | |
Maximum [Member] | Customer-related [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 21 years | |
Maximum [Member] | Unpatented Technology [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 30 years | |
Maximum [Member] | Trademarks [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 20 years |
Summary Of Significant Accoun48
Summary Of Significant Accounting Policies (Details 2) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 145,334 | $ 129,981 |
Contractual Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 7,061 | 7,064 |
Finite-Lived Intangible Assets, Accumulated Amortization | 7,036 | 7,014 |
Technology-Based and other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 46,666 | 46,461 |
Finite-Lived Intangible Assets, Accumulated Amortization | 30,923 | 29,061 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 206,162 | 205,502 |
Finite-Lived Intangible Assets, Accumulated Amortization | 85,301 | 74,669 |
Unpatented Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 31,854 | 31,754 |
Finite-Lived Intangible Assets, Accumulated Amortization | 13,096 | 10,589 |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 12,450 | 12,401 |
Finite-Lived Intangible Assets, Accumulated Amortization | 8,978 | 8,648 |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 17,609 | $ 17,326 |
Summary Of Significant Accoun49
Summary Of Significant Accounting Policies - Stock-Based Compensation (Details) - shares | 12 Months Ended | |
Jun. 30, 2018 | Oct. 26, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercisable Period for Capital Stock Options | 10 years | |
Amended and Restated Two Thousand Ten Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 9,500,000 |
Summary Of Significant Accoun50
Summary Of Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($) $ in Thousands, shares in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Conditions for Investments in Entities Accounted for Equity Basis | 0.50 | ||
Conditions for Investments in Entities Accounted for on Cost Basis | 0.50 | ||
Excess and obsolete inventory reserve | $ 31,300 | $ 32,100 | |
Amortization | 14,668 | $ 16,578 | $ 20,762 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 14,100 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 13,900 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 13,500 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 13,100 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 12,900 | ||
Increase in weighted average shares due to dilutive effect of unexercised capital stock options, unvested restricted stock awards and unvested restricted stock units | 1.2 | 0.8 | |
Unexercised capital stock options, restricted stock units and restricted stock awards excluded from computation of diluted EPS | 0.4 | 1.4 | |
Conditions of Shipment are Considered to Have Occurred Unless Written Notice of Objection is Received | 10 | ||
Termination of Warranty | 30 | ||
Research and Development Expense | $ 38,900 | $ 38,000 | 39,400 |
Currency Transaction Gain (Loss), before Tax | $ (6,400) | $ (6,700) | $ 1,600 |
Minimum [Member] | Building and Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 15 years | ||
Minimum [Member] | Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 4 years | ||
Minimum [Member] | Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Minimum [Member] | ComputerHardwareAndSoftware [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Maximum [Member] | Building and Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 40 years | ||
Maximum [Member] | Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 15 years | ||
Maximum [Member] | Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Maximum [Member] | ComputerHardwareAndSoftware [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years |
Summary of Signficant Accountin
Summary of Signficant Accounting Policies (Details Textual 1) - USD ($) $ in Thousands, shares in Millions | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Business Acquisition [Line Items] | ||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 1.2 | 0.8 | ||
Conditions for Investments in Entities Accounted for Equity Basis | 0.50 | |||
Goodwill | $ 301,802 | $ 301,367 | $ 298,487 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 145,334 | 129,981 | ||
Intangible Assets, Gross (Excluding Goodwill) | 321,802 | $ 320,508 | ||
Goodwill and Intangible Asset Impairment | $ 0 | |||
Conditions for Investments in Entities Accounted for on Cost Basis | 0.50 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.4 | 1.4 | ||
Contractual Rights [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | $ 7,061 | $ 7,064 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 7,036 | 7,014 | ||
Finite-lived Intangible Assets, Written off Related to Sale of Business Unit | 500 | |||
Contractual Rights [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 15 years | |||
Contractual Rights [Member] | Minimum [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 3 years | |||
Technology-Based and other [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | $ 46,666 | 46,461 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 30,923 | 29,061 | ||
Finite-lived Intangible Assets, Written off Related to Sale of Business Unit | 800 | |||
Technology-Based and other [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 20 years | |||
Technology-Based and other [Member] | Minimum [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 4 years | |||
Customer-related [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | $ 206,162 | 205,502 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 85,301 | 74,669 | ||
Finite-lived Intangible Assets, Written off Related to Sale of Business Unit | 30,000 | |||
Customer-related [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 21 years | |||
Customer-related [Member] | Minimum [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 10 years | |||
Unpatented Technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | $ 31,854 | 31,754 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 13,096 | 10,589 | ||
Finite-lived Intangible Assets, Written off Related to Sale of Business Unit | 15,400 | |||
Unpatented Technology [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 30 years | |||
Unpatented Technology [Member] | Minimum [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 10 years | |||
Trademarks [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | $ 12,450 | 12,401 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 8,978 | 8,648 | ||
Finite-lived Intangible Assets, Written off Related to Sale of Business Unit | 1,100 | |||
Trademarks [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 20 years | |||
Trademarks [Member] | Minimum [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 5 years | |||
Trademarks [Member] | ||||
Business Acquisition [Line Items] | ||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 17,609 | 17,326 | ||
Indefinite-lived Intangible Assets, Written off Related to Sale of Business Unit | 5,000 | |||
Infrastructure [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 0 | 0 | 0 | |
Goodwill, Written off Related to Sale of Business Unit | (6,500) | |||
Goodwill and Intangible Asset Impairment | $ 106,100 | |||
Goodwill, Impairment Loss | 105,700 | |||
Infrastructure [Member] | Trademarks [Member] | ||||
Business Acquisition [Line Items] | ||||
Impairment of Intangible Assets (Excluding Goodwill) | 400 | |||
Industrial [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 274,254 | $ 273,490 | 271,501 | |
Goodwill, Written off Related to Sale of Business Unit | $ (1,100) | |||
Industrial [Member] | Trademarks [Member] | ||||
Business Acquisition [Line Items] | ||||
Impairment of Intangible Assets (Excluding Goodwill) | $ 2,300 |
Summary of Significant Accoun52
Summary of Significant Accounting Policies (Details Textual 2) | 12 Months Ended |
Jun. 30, 2018 | |
Trademarks [Member] | Minimum [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
Trademarks [Member] | Maximum [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 20 years |
Technology-Based and other [Member] | Minimum [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 4 years |
Technology-Based and other [Member] | Maximum [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 20 years |
Unpatented Technology [Member] | Minimum [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Unpatented Technology [Member] | Maximum [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 30 years |
Summary Of Significant Accoun53
Summary Of Significant Accounting Policies New Accounting Standards (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
New Accounting Standards [Abstract] | |||
Excess Tax Benefit from Share-based Compensation, Financing Activities | $ 1.4 | ||
Payments Related to Tax Withholding for Share-based Compensation | $ 3.1 | $ 3.2 | |
Expected reclassification of combined pension income and postretirement cost due to new accounting standard | (17) | $ (18) | |
Operating Leases, Future Minimum Payments Due | $ 65 |
Supplemental Cash Flow Inform54
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |||
Interest | $ 27,887 | $ 27,529 | $ 26,250 |
Income taxes | 35,974 | 16,755 | 43,733 |
Change In Accounts Payable Related To Purchases Of Property, Plant And Equipment | $ 9,500 | $ (3,900) | $ 1,000 |
Divestiture - Narrative (Detail
Divestiture - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Nov. 30, 2015 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Proceeds from divestiture (Note 4) | $ 0 | $ 0 | $ 56,127 | |
Loss on divestiture | $ 0 | $ 0 | (131,463) | |
Infrastructure [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Loss on divestiture | 127,900 | |||
Industrial [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Loss on divestiture | $ 3,600 | |||
Non-Core Businesses Sold to Madison Industries [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Net Book Value | $ 191,900 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives | [1] | $ 1,665 | $ 359 |
Total assets at fair value | 1,665 | 359 | |
Derivatives | [1] | 207 | 910 |
Total liabilities at fair value | 207 | 910 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives | [1] | 1,665 | 359 |
Total assets at fair value | 1,665 | 359 | |
Derivatives | [1] | 207 | 910 |
Total liabilities at fair value | 207 | 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 | |
[1] | (in thousands)Level 1 Level 2 Level 3 TotalAssets: Derivatives (1)$— $359 $— $359Total assets at fair value$— $359 $— $359 Liabilities: Derivatives (1)$— $910 $— $910Total liabilities at fair value$— $910 $— $910 (1) Currency derivatives are valued based on observable market spot and forward rates and are classified within Level 2 of the fair value hierarchy.There have been no changes in classification and transfers between levels in the fair value hierarchy in the current period. |
Derivative Instruments and He57
Derivative Instruments and Hedging Activities - Fair Value of Derivatives Designated and Note Designated as Hedging Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Fair value of derivatives | ||
Total derivatives | $ 1,458 | $ (551) |
Designated as Hedging Instrument [Member] | ||
Fair value of derivatives | ||
Total derivatives | 821 | (771) |
Not Designated as Hedging Instrument [Member] | ||
Fair value of derivatives | ||
Total derivatives | 637 | 220 |
Range Forward Contracts [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ||
Fair value of derivatives | ||
Derivative assets designated as hedging instruments | 799 | 1 |
Range Forward Contracts [Member] | Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||
Fair value of derivatives | ||
Derivative liabilities designated as hedging instruments | (5) | (671) |
Range Forward Contracts [Member] | Designated as Hedging Instrument [Member] | Other Assets [Member] | ||
Fair value of derivatives | ||
Derivative assets designated as hedging instruments | 27 | 0 |
Range Forward Contracts [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Liabilities [Member] | ||
Fair value of derivatives | ||
Derivative liabilities designated as hedging instruments | 0 | |
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ||
Fair value of derivatives | ||
Derivative assets designated as hedging instruments | 839 | 358 |
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||
Fair value of derivatives | ||
Derivative liabilities designated as hedging instruments | $ (202) | $ (138) |
Derivative Instruments and He58
Derivative Instruments and Hedging Activities - Losses (gains) related to Derivatives Not Designated as Hedging Instruments and to Cash Flow Hedges (Details) € in Thousands, $ in Thousands | 12 Months Ended | ||||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2018EUR (€) | Jun. 30, 2018USD ($) | |
Net Investment Hedging [Member] | |||||
(Gains) losses related to cash flow hedges | |||||
Gain (Loss) on Derivative Used in Net Investment Hedge, Net of Tax | $ (700) | $ (4,500) | |||
Net Investment Hedging [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, Amount of Hedged Item | € | € 33,000 | ||||
Net Investment Hedge Maturing on June 26, 2022 [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, Notional Amount | 27,325 | $ 31,819 | |||
Foreign Exchange Forward [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 | (122) | (873) | $ 719 | ||
Range Forward And Interest Rate Swap Contracts [Member] [Member] | Cash flow hedging [Member] | |||||
(Gains) losses related to cash flow hedges | |||||
Losses recognized in other comprehensive income (loss), net | (922) | (471) | (297) | ||
Losses reclassified from accumulated other comprehensive loss into other expense (income), net | $ 3,001 | $ 1,557 | $ 381 | ||
Net Investment Hedge Maturing on November 20, 2018 [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, Notional Amount | 8,707 | 10,139 | |||
Net Investment Hedge Maturing on October 11, 2019 [Member] [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, Notional Amount | € 2,014 | $ 2,345 |
Derivative Instruments and He59
Derivative Instruments and Hedging Activities - Narrative 1 (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities (Textual) [Abstract] | ||
Recognize income on outstanding derivatives in the next 12 months | $ 0.5 | |
Gains or losses recognized in earnings due to ineffectiveness and excluded from effectiveness testing | 0 | |
Contracts Translated to U S Dollars [Member] | ||
Additional Derivative Instruments and Hedging Activities (Textual) [Abstract] | ||
Notional amount of the contracts translated into U.S. dollars | 62.9 | $ 75.3 |
Net Investment Hedging [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gain (Loss) on Derivative Used in Net Investment Hedge, Net of Tax | $ (0.7) | $ (4.5) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Inventories | ||
Finished goods | $ 279,240 | $ 290,817 |
Work in process and powder blends | 232,973 | 166,857 |
Raw materials | 96,859 | 87,627 |
Inventories at current cost | 609,072 | 545,301 |
Less: LIFO valuation | (83,606) | (57,620) |
Total inventories | $ 525,466 | $ 487,681 |
Inventories (Textual) [Abstract] | ||
Percentage of inventories valued by using LIFO method | 40.00% | 43.00% |
Goodwill and Other Intangible61
Goodwill and Other Intangible Assets Schedule of Goodwill (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Goodwill [Line Items] | ||||
Goodwill, Gross | $ 1,085,855 | $ 1,085,420 | $ 1,082,540 | |
Goodwill, Accumulated Impairment Loss | (784,053) | (784,053) | (784,053) | |
Goodwill | 301,802 | 301,367 | 298,487 | |
Goodwill, Period Increase (Decrease) | 435 | 2,880 | ||
Industrial [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Gross | 411,458 | 410,694 | 408,705 | |
Goodwill, Accumulated Impairment Loss | 137,204 | 137,204 | 137,204 | |
Goodwill | 274,254 | 273,490 | 271,501 | |
Goodwill, Written off Related to Sale of Business Unit | (1,100) | |||
Goodwill, Period Increase (Decrease) | 764 | 1,989 | ||
WIDIA [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Gross | 41,186 | 41,515 | 40,624 | |
Goodwill, Accumulated Impairment Loss | 13,638 | 13,638 | 13,638 | |
Goodwill | 27,548 | 27,877 | 26,986 | |
Goodwill, Period Increase (Decrease) | (329) | 891 | ||
Infrastructure [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Gross | 633,211 | 633,211 | 633,211 | |
Goodwill, Accumulated Impairment Loss | 633,211 | 633,211 | 633,211 | |
Goodwill | 0 | 0 | 0 | |
Goodwill, Written off Related to Sale of Business Unit | $ (6,500) | |||
Goodwill, Period Increase (Decrease) | $ 0 | $ 0 | ||
Goodwill, Impairment Loss | $ 105,700 |
Goodwill and Other Intangible62
Goodwill and Other Intangible Assets Other Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 145,334 | $ 129,981 |
Intangible Assets, Gross (Excluding Goodwill) | 321,802 | 320,508 |
Contractual Rights [Member] | ||
Finite-Lived Intangible Assets, Gross | 7,061 | 7,064 |
Finite-Lived Intangible Assets, Accumulated Amortization | 7,036 | 7,014 |
Technology-Based and other [Member] | ||
Finite-Lived Intangible Assets, Gross | 46,666 | 46,461 |
Finite-Lived Intangible Assets, Accumulated Amortization | 30,923 | 29,061 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets, Gross | 206,162 | 205,502 |
Finite-Lived Intangible Assets, Accumulated Amortization | 85,301 | 74,669 |
Unpatented Technology [Member] | ||
Finite-Lived Intangible Assets, Gross | 31,854 | 31,754 |
Finite-Lived Intangible Assets, Accumulated Amortization | 13,096 | 10,589 |
Trademarks [Member] | ||
Finite-Lived Intangible Assets, Gross | 12,450 | 12,401 |
Finite-Lived Intangible Assets, Accumulated Amortization | 8,978 | 8,648 |
Trademarks [Member] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 17,609 | $ 17,326 |
Goodwill and Other Intangible63
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets (Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Goodwill and Other Intangible Assets [Abstract] | |||
Amortization of intangibles | $ 14,668 | $ 16,578 | $ 20,762 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 14,100 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 13,900 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 13,500 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 13,100 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 12,900 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Other Liabilities, Current [Abstract] | |||
Accrued employee benefits, current | $ 48,889 | $ 39,478 | |
Restructuring reserve, current | 17,469 | 27,294 | $ 15,703 |
Accrued payroll, state and local taxes, current | 10,146 | 9,943 | |
Accrued legal and professional fees, current | 9,291 | 10,741 | |
Accrued interest, current | 7,898 | 7,048 | |
Other | 56,893 | 58,443 | |
Total Other Current Liabilities | $ 150,586 | $ 152,947 |
Long-Term Debt and Capital Le65
Long-Term Debt and Capital Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Long-term Debt and Capital Lease Obligations Current and Noncurrent | ||
Capital leases | $ 0 | $ 190 |
Long-term Debt and Capital Lease Obligations, Including Current Maturities | 997,579 | 699,844 |
Debt Issuance Costs, Net | (6,808) | (4,663) |
Long-term Debt, Current Maturities | 399,266 | 0 |
Long-term Debt, Current Maturities [Abstract] | ||
Capital Lease, Current Maturities | 0 | (190) |
Total Current Maturities | (399,266) | (190) |
Long-term Debt and Capital Leases, Less Current Maturities | 591,505 | 694,991 |
2.650% Senior Notes due 2019 [Member] | ||
Long-term Debt and Capital Lease Obligations Current and Noncurrent | ||
Long-term Debt | 399,898 | 399,823 |
3.875% Senior Unsecured Notes Due in 2022 [Member] | ||
Long-term Debt and Capital Lease Obligations Current and Noncurrent | ||
Long-term Debt | 299,868 | $ 299,831 |
4.625% Senior Unsecured Notes Due in 2028 | ||
Long-term Debt and Capital Lease Obligations Current and Noncurrent | ||
Long-term Debt | $ 297,813 |
Long -Term Debt and Capital Lea
Long -Term Debt and Capital Leases - Narrative (Details) - USD ($) $ in Thousands | Jun. 07, 2018 | Nov. 07, 2012 | Feb. 14, 2012 | Jun. 30, 2018 | Jun. 30, 2017 |
Long Term Debt and Capital Leases (Additional Textual) [Abstract] | |||||
Long-term Debt, Maturities, Repayments of Principal in 2022 | $ 300,000 | ||||
Future Principal Maturities of Long-term Debt in 2028 | 300,000 | ||||
Capital Lease Obligations | $ 0 | $ 190 | |||
US Dollar Denominated Borrowings [Member] | |||||
Long-Term Debt and Capital Leases (Textual) [Abstract] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 0.00% | 0.00% | |||
Capital Lease Obligations [Member] | |||||
Long-Term Debt and Capital Leases (Textual) [Abstract] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 0.00% | 3.90% | |||
4.625% Senior Unsecured Notes Due in 2028 | |||||
Long-Term Debt and Capital Leases (Textual) [Abstract] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.625% | ||||
Debt Instrument, Unamortized Discount | $ 2,200 | $ 0 | |||
Long Term Debt and Capital Leases (Additional Textual) [Abstract] | |||||
Proceeds from Issuance of Senior Long-term Debt | $ 300,000 | ||||
2.650% Senior Notes due 2019 [Member] | |||||
Long-Term Debt and Capital Leases (Textual) [Abstract] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 2.65% | ||||
Debt Instrument, Unamortized Discount | 100 | 200 | |||
Long Term Debt and Capital Leases (Additional Textual) [Abstract] | |||||
Proceeds from Issuance of Senior Long-term Debt | $ 400,000 | ||||
3.875% Senior Unsecured Notes Due in 2022 [Member] | |||||
Long-Term Debt and Capital Leases (Textual) [Abstract] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 3.875% | ||||
Debt Instrument, Unamortized Discount | 100 | $ 200 | |||
Long Term Debt and Capital Leases (Additional Textual) [Abstract] | |||||
Proceeds from Issuance of Senior Long-term Debt | $ 300,000 | ||||
Twenty Eighteen Credit Agreement [Member] [Domain] | |||||
Long-Term Debt and Capital Leases (Textual) [Abstract] | |||||
Maximum Borrowing Capacity under the 2018 Credit Agreement | $ 700,000 | ||||
Borrowing outstanding under 2018 Credit Agreement | $ 0 | ||||
Term of Long Term Debt | 5 years |
Notes Payable and Lines of Cr67
Notes Payable and Lines of Credit (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Notes Payable and Lines of Credit (Textual) [Abstract] | ||
Notes Payable | $ 934 | $ 735 |
Weighted Average Interest Rate for Notes Payable and Lines of Credit | 25.00% | 13.80% |
Notes Payable to Banks [Member] | ||
Notes Payable and Lines of Credit (Textual) [Abstract] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 71,900 | |
Line of Credit Facility Unused | $ 71,000 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income (Loss) Before Income Taxes | |||
United States | $ 57,109 | $ (23,055) | $ (228,667) |
International | 217,932 | 104,930 | 30,096 |
Total income (loss) before income taxes | 275,041 | 81,875 | (198,571) |
Current Income Taxes | |||
Federal | 3,755 | (1,455) | (15,039) |
State | (816) | 172 | 454 |
International | 44,127 | 24,911 | 31,570 |
Total Current Income Taxes | 47,066 | 23,628 | 16,985 |
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Federal | 1,121 | 298 | 6,786 |
State | 3,552 | (867) | 8,407 |
International | 18,242 | 6,836 | (6,865) |
Total deferred income taxes | 22,915 | 6,267 | 8,328 |
Provision for income taxes | $ 69,981 | $ 29,895 | $ 25,313 |
Effective tax rate | 25.40% | 36.50% | (12.70%) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Income Taxes at U.S Statutory Rate | $ 77,286 | $ 28,656 | $ (69,500) |
State Income Taxes, Net of Federal Tax Benefits | 2,975 | (306) | 859 |
US Income Tax Provided On International Income | 1,010 | 10,273 | 2,364 |
Combined Tax Effects of International Income | (9,333) | (11,530) | (25,469) |
Impact of goodwill impairment charges | 0 | 0 | 6,439 |
Impact of divestiture | 0 | 0 | 27,790 |
Change in valuation allowance and other uncertain tax positions | (90,817) | 5,163 | 84,530 |
Impact of Domestic Production Activities Deduction | 0 | 0 | (2,072) |
Research and Development Credit | (3,141) | (1,895) | (4,351) |
Change In Permanent Reinvestment Assertion | 0 | 0 | 3,659 |
Combined effects of tax reform | 86,044 | 0 | 0 |
Adjustment to deferred tax charges on intra-entity transfers | 5,297 | 0 | 0 |
Other | 660 | (466) | 1,064 |
Provision for income taxes | $ 69,981 | $ 29,895 | $ 25,313 |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Deferred Tax Assets | ||
Net Operating Loss Carryforwards | $ 39,884 | $ 81,920 |
Inventory Valuation and Reserves | 10,023 | 20,428 |
Pension Benefits | 15,750 | 24,824 |
Other Postretirement Benefits | 3,996 | 5,959 |
Accrued Employee Benefits | 15,697 | 18,409 |
Other Accrued Liabilities | 9,386 | 8,609 |
Hedging Activities | 1,477 | 5,409 |
Tax Credit and Other Carryforwards | 644 | 37,603 |
Intangible Assets | 0 | 14,947 |
Total | 96,857 | 218,108 |
Valuation Allowance | (21,629) | (116,770) |
Total Deferred Tax Assets | 75,228 | 101,338 |
Deferred Tax Liabilities | ||
Tax Depreciation in Excess of Book | 77,106 | 83,258 |
Deferred Tax Liabilities, Intangible Assets | 537 | 0 |
Deferred Tax Liabilities, Other | 7,561 | 4,614 |
Total Deferred Tax Liabilities | 85,204 | 87,872 |
Total Net Deferred Tax Liabilities | $ (9,976) | $ (13,466) |
Income Taxes - Reconciliation71
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 2,632 | $ 3,106 | $ 14,619 |
Increases for tax positions of prior years | 3,409 | 0 | 1,197 |
Decreases related to settlement with taxing authority | 0 | (231) | (11,942) |
Decreases related to lapse of statute of limitations | (289) | (184) | (667) |
Increase Resulting from Foreign Currency Translation | 23 | ||
Decrease Resulting from Foreign Currency Translation | (59) | (101) | |
Balance at end of year | $ 5,775 | $ 2,632 | $ 3,106 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Operating Loss Carryforwards [Line Items] | ||||||
Combined effects of tax reform | $ 86,044 | $ 0 | $ 0 | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 28.10% | ||||
Increase (decrease) to NOL carryforwards due to error correction | $ (3,700) | |||||
Increase (decrease) to tax credits and other carryfowards due to error correction | (3,400) | |||||
Increase (decrease) to deferred tax assets, accrued employee benefits, due to error correction | 7,100 | |||||
Overstatement of deferred tax assets | 8,200 | |||||
Income Tax (Textual) [Abstract] | ||||||
Valuation Allowance Adjustment | $ (90,817) | 5,163 | 84,530 | |||
Operating Loss Carryforwards, Valuation Allowance | 13,400 | 13,400 | ||||
Change In Permanent Reinvestment Assertion | 0 | 0 | 3,659 | |||
Tax Benefits associated with Net Operating Loss Carryforwards in Federal, State and Foreign Jurisdictions | 39,884 | 39,884 | 81,920 | |||
Tax Benefits that Do Not Expire | 18,500 | 18,500 | ||||
Valuation Allowance | (21,629) | (21,629) | (116,770) | |||
Change in Valuation Allowance, Current Year | $ 2,900 | |||||
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | 1.90% | |||||
Deferred Tax Assets, Tax Credit Carryforwards | 644 | $ 644 | 37,603 | |||
Unremitted Earnings of Non-U.S. Subsidiaries and Affiliates | 1,300,000 | 1,300,000 | ||||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 5,800 | 5,800 | 2,600 | 3,100 | ||
Increase (reduction) in Interest | 700 | 200 | (200) | |||
Interest Accrued | 1,100 | 1,100 | 500 | |||
Penalties Accrued | 100 | 100 | ||||
Deferred Tax Assets, Other | 11,900 | |||||
Reasonably Possible amount of Unrecognized Tax Benefits within next 12 Months Could Decrease | 3,100 | 3,100 | ||||
Provisional tax expense for the deemed repatriation of undistributed foreign earnings | 80,900 | |||||
Provisional tax expense for revaluation of U.S. net deferred taxes | 5,100 | |||||
Estimated cash payment related to provisional tax expense for the deemed repatriation of undistributed foreign earnings | 3,500 | 3,500 | ||||
Taxes Payable | 3,200 | 3,200 | ||||
Expiring Year Fifteen Through Twenty [Member] | ||||||
Income Tax (Textual) [Abstract] | ||||||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 4,600 | 4,600 | ||||
Expiring Year Ten Through Fifteen [Member] | ||||||
Income Tax (Textual) [Abstract] | ||||||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 2,900 | 2,900 | ||||
Expiring Year Five Through Ten [Member] | ||||||
Income Tax (Textual) [Abstract] | ||||||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 2,900 | 2,900 | ||||
Expiring Through Year Five [Member] | ||||||
Income Tax (Textual) [Abstract] | ||||||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 11,000 | 11,000 | ||||
Valuation Allowance, Operating Loss Carryforwards [Member] | ||||||
Income Tax (Textual) [Abstract] | ||||||
Valuation Allowance Adjustment | $ 1,300 | 81,200 | ||||
Change in Valuation Allowance, Current Year | 105,900 | |||||
Other Comprehensive Income (Loss) [Member] | Valuation Allowance, Operating Loss Carryforwards [Member] | ||||||
Income Tax (Textual) [Abstract] | ||||||
Change in Valuation Allowance, Current Year | $ 24,700 | |||||
Expiring Year Five Through Ten [Member] | ||||||
Income Tax (Textual) [Abstract] | ||||||
Deferred Tax Assets, Tax Credit Carryforwards | 300 | 300 | ||||
Expiring Through Year Five [Member] | ||||||
Income Tax (Textual) [Abstract] | ||||||
Deferred Tax Assets, Tax Credit Carryforwards | $ 300 | 300 | ||||
Scenario, Forecast [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | |||||
Income Tax Expense (Benefit) [Member] | ||||||
Income Tax (Textual) [Abstract] | ||||||
Quantifying Misstatement in Current Year Financial Statements, Amount | 5,300 | |||||
Release of U.S. valuation allowance [Member] | ||||||
Income Tax (Textual) [Abstract] | ||||||
Valuation Allowance Adjustment | 91,300 | |||||
Deferred Tax Asset Valuation Allowance [Member] | ||||||
Income Tax (Textual) [Abstract] | ||||||
Change in Valuation Allowance, Current Year | $ 95,100 |
Pension and Other Postretirem73
Pension and Other Postretirement Benefits - Funded Status of Pension Plans and Amounts Recognized in the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Change in Plan Assets | |||
Fair Value of Plans' Assets, Beginning of Year | $ 808,635 | ||
Fair Value of Plans' Assets, End of Year | 792,758 | $ 808,635 | |
Long-term prepaid pension benefit (Note 13) | 42,543 | 17,208 | |
Pension plans contribution [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefits and expenses paid | (47,212) | (70,257) | |
Defined Benefit Plan, Plan Assets, Payment for Settlement | (2,935) | (7,439) | |
Change in Benefit Obligation | |||
Benefit Obligation, Beginning of Year | 941,094 | 1,005,368 | |
Service Cost | 1,635 | 2,908 | $ 4,640 |
Interest Cost | 30,751 | 31,113 | 37,726 |
Participant Contributions | 3 | 8 | |
Actuarial Losses | (24,501) | (19,660) | |
Benefits and expenses paid | (47,212) | (70,257) | |
Currency Translation Adjustment | 3,876 | (1,045) | |
Defined Benefit Plan, Benefit Obligation, Special and Contractual Termination Benefits | 0 | 98 | |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | (2,935) | (7,439) | |
Benefit Obligation, End of Year | 902,711 | 941,094 | 1,005,368 |
Change in Plan Assets | |||
Fair Value of Plans' Assets, Beginning of Year | 808,635 | 821,675 | |
Actual Return on Plans' Assets | 24,931 | 56,818 | |
Company Contributions | 7,999 | 11,960 | |
Currency translation adjustments | 1,337 | (4,130) | |
Fair Value of Plans' Assets, End of Year | 792,758 | 808,635 | $ 821,675 |
Funded Status of Plans | (109,953) | (132,459) | |
Defined Benefit Plan, Plan Assets, Contributions by Plan Participant | 3 | 8 | |
Long-term prepaid pension benefit (Note 13) | 42,543 | 17,208 | |
Amounts Recognized in Balance Sheet | |||
Short-term Accrued Benefit Obligation | (6,699) | (5,713) | |
Accrued Pension Benefits | (145,797) | (143,954) | |
Net Amount Recognized | $ (109,953) | $ (132,459) |
Pension and Other Postretirem74
Pension and Other Postretirement Benefits - Amounts Related to Defined Pension Plans Recognized in Accumulated Other Comprehensive (Loss) Income (Details) - Pension plans contribution [Member] - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | ||
Unrecognized Net Actuarial Losses | $ 247,230 | $ 246,428 |
Unrecognized Net Prior Service Credits | 723 | 580 |
Unrecognized Transition Obligations | 539 | 622 |
Total | $ 248,492 | $ 247,630 |
Pension and Other Postretirem75
Pension and Other Postretirement Benefits - Plans with Accumulated Benefit Obligations Exceeding the Fair Value of Plan Assets (Details) - Pension plans contribution [Member] - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Project Benefit Obligation | $ 152,485 | $ 156,816 |
Accumulated Benefit Obligation | 151,871 | 156,590 |
Fair Value of Plan Assets | $ 0 | $ 7,083 |
Pension and Other Postretirem76
Pension and Other Postretirement Benefits - Components of Net Periodic Pension (Income) Cost (Details) - Pension plans contribution [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net periodic pension income | |||
Service cost | $ 1,635 | $ 2,908 | $ 4,640 |
Interest cost | 30,751 | 31,113 | 37,726 |
Expected Return on Plans' Assets | (56,579) | (58,781) | (58,523) |
Amortization of transition obligation | 94 | 89 | 80 |
Amortization of prior service cost | 48 | (452) | (417) |
Special termination benefit charge | 0 | 98 | 334 |
Settlement Loss | 626 | 379 | 227 |
Recognition of actuarial losses | 6,907 | 8,356 | 7,286 |
Net Periodic Benefit (Income) Cost | $ (16,518) | $ (16,290) | $ (8,647) |
Pension and Other Postretirem77
Pension and Other Postretirement Benefits - Funded Status of Other Postretirement Benefit Plans and Amounts Recognized in the Consolidated Balance Sheets (Details) - Other Postretirement Benefit Plan, Defined Benefit [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Change in Benefit Obligation | |||
Benefit Obligation, Beginning of Year | $ 18,160 | $ 20,542 | |
Interest Cost | 629 | 673 | $ 840 |
Actuarial Losses | (323) | (747) | |
Benefit Obligation, End of Year | 15,323 | 18,160 | $ 20,542 |
Funded Status of Plans | (15,323) | (18,160) | |
Amounts Recognized in Balance Sheet | |||
Short-term Accrued Benefit Obligation | (1,598) | (1,254) | |
Accrued Postretirement Benefits | (13,725) | (16,906) | |
Net Amount Recognized | (15,323) | (18,160) | |
Benefits and expenses paid | (2,208) | (2,308) | |
Plan Amendments | $ (935) | $ 0 |
Pension and Other Postretirem78
Pension and Other Postretirement Benefits - Amounts Related to Other Postretirement Benefit Plans Recognized in Accumulated Other Comprehensive (Loss) Income (Details) - Other postretirement benefit plans [Member] - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | ||
Unrecognized Net Actuarial Losses | $ 4,662 | $ 5,266 |
Unrecognized Net Prior Service Credits | (1,041) | (128) |
Total | $ 3,621 | $ 5,138 |
Pension and Other Postretirem79
Pension and Other Postretirement Benefits - Components of Net Periodic Other Postretirement Benefit Cost (Details) - Other postretirement benefit plans [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net periodic other postretirement benefit costs | |||
Interest cost | $ 629 | $ 673 | $ 840 |
Amortization of prior service credit | (22) | (22) | (22) |
Recognition of actuarial loss | 280 | 355 | 324 |
Net Periodic Benefit (Income) Cost | $ 887 | $ 1,006 | $ 1,142 |
Pension and Other Postretirem80
Pension and Other Postretirement Benefits (Details 7) | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
U.S. Plans [Member] | |||
Rates of Future Salary Increases [Abstract] | |||
Rate of Future Salary Increase | 4.00% | 4.00% | |
Minimum [Member] | U.S. Plans [Member] | |||
Discount Rate | |||
Discount Rate | 4.00% | 3.30% | 2.40% |
Rates of Future Salary Increases [Abstract] | |||
Rate of Future Salary Increase | 3.00% | ||
Minimum [Member] | International Plans [Member] | |||
Discount Rate | |||
Discount Rate | 1.80% | 2.00% | 0.90% |
Rates of Future Salary Increases [Abstract] | |||
Rate of Future Salary Increase | 2.50% | 2.50% | 2.50% |
Maximum [Member] | U.S. Plans [Member] | |||
Discount Rate | |||
Discount Rate | 4.30% | 3.90% | 3.70% |
Rates of Future Salary Increases [Abstract] | |||
Rate of Future Salary Increase | 4.00% | ||
Maximum [Member] | International Plans [Member] | |||
Discount Rate | |||
Discount Rate | 3.30% | 3.30% | 3.20% |
Rates of Future Salary Increases [Abstract] | |||
Rate of Future Salary Increase | 3.00% | 3.00% | 3.00% |
Pension and Other Postretirem81
Pension and Other Postretirement Benefits (Details 8) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
International Plans [Member] | |||
Rate of Return on Plans Assets [Abstract] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 5.30% | ||
International Plans [Member] | Minimum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 2.00% | 0.90% | 2.30% |
Rates of Future Salary Increases [Abstract] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 2.50% | 2.50% | 2.50% |
Rate of Return on Plans Assets [Abstract] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 5.30% | 5.30% | |
International Plans [Member] | Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.30% | 3.20% | 3.80% |
Rates of Future Salary Increases [Abstract] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 3.00% | 3.00% | 3.00% |
Rate of Return on Plans Assets [Abstract] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 5.50% | 5.50% | |
U.S. Plans [Member] | |||
Rates of Future Salary Increases [Abstract] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 4.00% | ||
Rate of Return on Plans Assets [Abstract] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 7.30% | 7.50% | 7.50% |
U.S. Plans [Member] | Minimum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.30% | 2.40% | 3.20% |
Rates of Future Salary Increases [Abstract] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 3.00% | 3.00% | |
U.S. Plans [Member] | Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.90% | 3.70% | 4.50% |
Rates of Future Salary Increases [Abstract] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 4.00% | 4.00% |
Pension and Other Postretirem82
Pension and Other Postretirement Benefits - Significant Assumptions to Determine the Present Value of Net Benefit Obligations and the Net Periodic Costs (Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Annual assumed rate of increase in per capita cost of covered benefits for postretirement benefit plans | |||
Health Care Cost Trend Rate Assumed for Next Year | 7.50% | 8.00% | 8.50% |
Rate to which the Cost Trend Rate Gradually Declines | 5.00% | 5.00% | 5.00% |
Year that the Rate Reaches the Rate at which it is assumed to Remain | 2,027 | 2,027 | 2,027 |
Calculated effect of change on assumption used to calculate cost components and obligations of healthcare plans | |||
Effect on Total Service and Interest Cost Components, Increase | $ 27 | ||
Effect on Total Service and Interest Cost Components, Decrease | (24) | ||
Effect on Other Postretirement Obligation, Increase | 492 | ||
Effect on Other Postretirement Obligation, Decrease | $ (437) | ||
U.S. Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 4.00% | ||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 7.30% | 7.50% | 7.50% |
International Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 5.30% | ||
Minimum [Member] | U.S. Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 3.00% | 3.00% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.30% | 2.40% | 3.20% |
Minimum [Member] | International Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 2.50% | 2.50% | 2.50% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 2.00% | 0.90% | 2.30% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 5.30% | 5.30% | |
Maximum [Member] | U.S. Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 4.00% | 4.00% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.90% | 3.70% | 4.50% |
Maximum [Member] | International Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 3.00% | 3.00% | 3.00% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.30% | 3.20% | 3.80% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 5.50% | 5.50% |
Pension and Other Postretirem83
Pension and Other Postretirement Benefits Pension and Other Postretirement Benefits - Allocation of Plan Assets (Details) | Jun. 30, 2018 | Jun. 30, 2017 |
Equity Securities [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 28.00% | 27.00% |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 24.00% | |
Fixed Income Securities [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 62.00% | 63.00% |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 69.00% | |
Other Security Investments [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 11.00% | 10.00% |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 7.00% |
Pension and Other Postretirem84
Pension and Other Postretirement Benefits - Hierarchy of Fair Value of the Benefit Plan Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plans', Fair Value of Plan Assets | $ 792,758 | $ 808,635 |
NAV [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plans', Fair Value of Plan Assets | 135,362 | 132,487 |
Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plans', Fair Value of Plan Assets | 87,259 | 88,451 |
Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plans', Fair Value of Plan Assets | 570,137 | 587,697 |
Corporate Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plans', Fair Value of Plan Assets | 350,394 | 365,723 |
Corporate Fixed Income Securities [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plans', Fair Value of Plan Assets | 350,394 | 365,723 |
Value Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plans', Fair Value of Plan Assets | 74,070 | 76,186 |
Growth Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plans', Fair Value of Plan Assets | 49,438 | 43,880 |
Balanced Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plans', Fair Value of Plan Assets | 11,854 | 12,421 |
Common Stock [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plans', Fair Value of Plan Assets | 83,361 | 85,138 |
Common Stock [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plans', Fair Value of Plan Assets | 83,361 | 85,138 |
US Government Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plans', Fair Value of Plan Assets | 62,381 | 72,817 |
US Government Securities [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plans', Fair Value of Plan Assets | 62,381 | 72,817 |
Foreign Government Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plans', Fair Value of Plan Assets | 46,286 | 45,359 |
Foreign Government Securities [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plans', Fair Value of Plan Assets | 46,286 | 45,359 |
Other Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plans', Fair Value of Plan Assets | 31,630 | 25,761 |
Other Fixed Income Securities [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plans', Fair Value of Plan Assets | 31,630 | 25,761 |
Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plans', Fair Value of Plan Assets | 83,344 | 81,350 |
Other [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plans', Fair Value of Plan Assets | 3,898 | 3,313 |
Other [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plans', Fair Value of Plan Assets | $ 79,446 | $ 78,037 |
Pension and Other Postretirem85
Pension and Other Postretirement Benefits - Narrative (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Eligible Age for Availing Postretirement Healthcare Benefits | 55 | ||
Years of Service | 10 | ||
Defined Contribution Plan [Abstract] | |||
Defined Contribution Plan, Cost | $ 19,600,000 | $ 15,800,000 | $ 17,200,000 |
Pension plans contribution [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | (2,935,000) | (7,439,000) | |
Accumulated Benefit Obligation for all Defined Benefit Pension Plans | 902,100,000 | 940,900,000 | |
Net Periodic Pension Cost | (16,518,000) | (16,290,000) | (8,647,000) |
Special termination benefit charge | 0 | 98,000 | 334,000 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | (626,000) | (379,000) | (227,000) |
Projected Benefit Payments for 2019 | 49,300,000 | ||
Projected Benefit Payments for 2020 | 50,100,000 | ||
Projected Benefit Payments for 2021 | 51,800,000 | ||
Projected Benefit Payments for 2022 | 52,300,000 | ||
Projected Benefit Payments for 2023 | 54,100,000 | ||
Projected Benefit Payments for 2024 through 2028 | 280,100,000 | ||
Accumulated Other Comprehensive Loss Expected to be Recognized in Net Periodic Pension Cost during 2019 related to Net Actuarial Losses | 6,775,854 | ||
Accumulated Other Comprehensive Loss Expected to be Recognized in Net Periodic Pension Cost during 2019 related to Transition Obligations | 92,005 | ||
Estimated Future Employer Contributions in 2019 | 8,063,471 | ||
Other postretirement benefit plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net Periodic Pension Cost | 887,000 | $ 1,006,000 | $ 1,142,000 |
Projected Benefit Payments for 2019 | 1,600,000 | ||
Projected Benefit Payments for 2020 | 1,500,000 | ||
Projected Benefit Payments for 2021 | 1,400,000 | ||
Projected Benefit Payments for 2022 | 1,400,000 | ||
Projected Benefit Payments for 2023 | 1,300,000 | ||
Projected Benefit Payments for 2024 through 2028 | 5,400,000 | ||
Accumulated Other Comprehensive Loss Expected to be Recognized in Net Periodic Pension Cost during 2019 related to Net Actuarial Losses | 248,457 | ||
Accumulated Other Comprehensive Income Expected to be Recognized in Net Periodic Pension Cost during 2019 related to Prior Service Credit | (90,321) | ||
Estimated Future Employer Contributions in 2019 | $ 1,630,981 |
Accumulated Other Comprehensi86
Accumulated Other Comprehensive (Loss) Income - Components of and Changes in AOCL (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive (Loss) Income | $ (323,692) | ||
Net current period other comprehensive loss | 2,618 | $ 30,099 | $ (112,690) |
Accumulated Other Comprehensive (Loss) Income | (320,325) | (323,692) | |
Post-retirement Benefit Plans [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive (Loss) Income | (189,038) | (212,163) | (138,793) |
Net current period other comprehensive loss | 1,283 | 23,125 | (73,370) |
Other comprehensive loss before reclassifications | (5,991) | 15,559 | (78,295) |
Amounts reclassified from accumulated other comprehensive loss | 7,274 | 7,566 | 4,925 |
Accumulated Other Comprehensive (Loss) Income | (187,755) | (189,038) | (212,163) |
Currency Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive (Loss) Income | (126,606) | (131,212) | (97,309) |
Net current period other comprehensive loss | (741) | 4,606 | (36,420) |
Other comprehensive loss before reclassifications | (741) | 4,606 | (51,508) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 15,088 | |
Stock Issued During Period, Value, Other | 2,517 | ||
Accumulated Other Comprehensive (Loss) Income | (127,347) | (126,606) | (131,212) |
Derivatives [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive (Loss) Income | (8,048) | (9,134) | (7,421) |
Net current period other comprehensive loss | 2,825 | 1,086 | (1,713) |
Other comprehensive loss before reclassifications | (922) | (471) | (150) |
Amounts reclassified from accumulated other comprehensive loss | 3,747 | 1,557 | (1,563) |
Accumulated Other Comprehensive (Loss) Income | (5,223) | (8,048) | (9,134) |
AOCI Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive (Loss) Income | (323,692) | (352,509) | (243,523) |
Net current period other comprehensive loss | 3,367 | 28,817 | (111,503) |
Other comprehensive loss before reclassifications | (7,654) | 19,694 | (129,953) |
Amounts reclassified from accumulated other comprehensive loss | 11,021 | 9,123 | 18,450 |
Stock Issued During Period, Value, Other | 0 | 0 | 2,517 |
Net current period other comprehensive loss | 3,367 | 28,817 | (111,503) |
Accumulated Other Comprehensive (Loss) Income | (320,325) | (323,692) | (352,509) |
Accumulated Foreign Currency Adjustment Attributable to Noncontrolling Interest [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive (Loss) Income | (2,164) | (3,446) | (2,258) |
Other comprehensive loss before reclassifications | (749) | 1,282 | (1,188) |
Net current period other comprehensive loss | (749) | 1,282 | (1,188) |
Accumulated Other Comprehensive (Loss) Income | (2,913) | (2,164) | (3,446) |
AOCI Attributable to Noncontrolling Interest [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive (Loss) Income | (2,164) | (3,446) | (2,258) |
Other comprehensive loss before reclassifications | (749) | 1,282 | (1,188) |
Net current period other comprehensive loss | (749) | 1,282 | (1,188) |
Accumulated Other Comprehensive (Loss) Income | $ (2,913) | $ (2,164) | $ (3,446) |
Accumulated Other Comprehensi87
Accumulated Other Comprehensive (Loss) Income - Components of and Changes in AOCL (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive (Loss) Income | $ (320,325) | $ (323,692) | |
Other comprehensive income (loss), net of tax | 2,618 | 30,099 | $ (112,690) |
Post-retirement Benefit Plans [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive (Loss) Income | (187,755) | (189,038) | (212,163) |
Other comprehensive loss before reclassifications | (5,991) | 15,559 | (78,295) |
Amounts reclassified from accumulated other comprehensive loss | 7,274 | 7,566 | 4,925 |
Net current period other comprehensive loss | 1,283 | 23,125 | (73,370) |
Currency Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive (Loss) Income | (127,347) | (126,606) | (131,212) |
Other comprehensive loss before reclassifications | (741) | 4,606 | (51,508) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 15,088 | |
Sale of subsidiary stock to noncontrolling interests | 2,517 | ||
Net current period other comprehensive loss | (741) | 4,606 | (36,420) |
Derivatives [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive (Loss) Income | (5,223) | (8,048) | (9,134) |
Other comprehensive loss before reclassifications | (922) | (471) | (150) |
Amounts reclassified from accumulated other comprehensive loss | 3,747 | 1,557 | (1,563) |
Net current period other comprehensive loss | 2,825 | 1,086 | (1,713) |
AOCI Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive (Loss) Income | (320,325) | (323,692) | (352,509) |
Other comprehensive loss before reclassifications | (7,654) | 19,694 | (129,953) |
Other comprehensive income (loss), net of tax | 3,367 | 28,817 | (111,503) |
Amounts reclassified from accumulated other comprehensive loss | 11,021 | 9,123 | 18,450 |
Sale of subsidiary stock to noncontrolling interests | 0 | 0 | 2,517 |
Net current period other comprehensive loss | 3,367 | 28,817 | (111,503) |
Accumulated Foreign Currency Adjustment Attributable to Noncontrolling Interest [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive (Loss) Income | (2,913) | (2,164) | (3,446) |
Other comprehensive loss before reclassifications | (749) | 1,282 | (1,188) |
Other comprehensive income (loss), net of tax | (749) | 1,282 | (1,188) |
AOCI Attributable to Noncontrolling Interest [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive (Loss) Income | (2,913) | (2,164) | (3,446) |
Other comprehensive loss before reclassifications | (749) | 1,282 | (1,188) |
Other comprehensive income (loss), net of tax | (749) | 1,282 | (1,188) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Interest Rate Swap [Member] | Derivatives [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Interest Income (Expense), Net | $ 2,265 | $ 2,180 | $ 2,099 |
Accumulated Other Comprehensi88
Accumulated Other Comprehensive Loss - Reclassifications Out of AOCL (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Currency Exchange Contracts | $ (2,443) | $ (2,227) | $ 4,124 |
Recognition of Actuarial Losses | (7,307) | (8,326) | (7,251) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Tax | 0 | ||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, Tax | (33) | (760) | (2,326) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | (761) | 0 | 983 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | (15,088) | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivatives [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total Before Tax | 4,508 | 1,557 | (2,546) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | (761) | 0 | 983 |
Net of tax | 3,747 | 1,557 | (1,563) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Post-retirement Benefit Plans [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amortization of Transition Obligations | 94 | 89 | 80 |
Amortization of Prior Service Credit | 26 | (474) | (439) |
Recognition of Actuarial Losses | 7,187 | 8,711 | 7,610 |
Total Before Tax | 7,307 | 8,326 | 7,251 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, Tax | (33) | (760) | (2,326) |
Net of tax | 7,274 | 7,566 | 4,925 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Currency Translation Adjustment [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total Before Tax | 0 | 0 | 15,088 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Tax | 0 | 0 | 0 |
Net of tax | 0 | 0 | 15,088 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | 0 | 0 | 15,088 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Currency Exchange Contracts [Member] | Derivatives [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Currency Exchange Contracts | $ 2,243 | $ (623) | $ (4,645) |
Accumulated Other Comprehensi89
Accumulated Other Comprehensive (Loss) Income Accumulated Other Comprehensive (Loss) Income - Income Tax Allocated to Each Component of Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accumulated Other Comprehensive (Loss) IncomeAccumulated Other Comprehensive (Loss) Income - Income Tax Allocated to Each Component of Other Comprehensive Income [Abstract] | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ (928) | $ (471) | $ (244) |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | (6) | 0 | 94 |
Unrealized loss on derivatives designated and qualified as cash flow hedges | (922) | (471) | (150) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | 4,508 | 1,557 | (2,546) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | (761) | 0 | 983 |
Reclassification of unrealized loss (gain) on expired derivatives designated and qualified as cash flow hedges | 3,747 | 1,557 | (1,563) |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | (8,043) | 18,656 | (84,266) |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, Tax | 2,052 | (3,097) | 5,971 |
Unrecognized net pension and other postretirement benefit (loss) gain | (5,991) | 15,559 | (78,295) |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, before Tax | 7,307 | 8,326 | 7,251 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, Tax | (33) | (760) | (2,326) |
Reclassification of net pension and other postretirement benefit loss | 7,274 | 7,566 | 4,925 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss), before Reclassification and Tax | (1,593) | 6,266 | (52,699) |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | 103 | (378) | 4 |
Foreign currency translation adjustments | (1,490) | 5,888 | (52,695) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | 15,088 | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Tax | 0 | ||
Reclassification of foreign currency translation adjustment loss realized upon sale | 0 | 0 | 15,088 |
Other Comprehensive Income (Loss), before Tax | 1,251 | 34,334 | (117,416) |
Other Comprehensive Income (Loss), Tax | 1,367 | (4,235) | 4,726 |
Other comprehensive income (loss), net of tax | $ 2,618 | $ 30,099 | $ (112,690) |
Restructuring and Related Cha90
Restructuring and Related Charges and Asset Impairment Charges - Restructuring Reserve by Type of Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Restructuring and Related Costs and Reserve [Line Items] | |||
Restructuring reserve, current | $ 17,469 | $ 27,294 | $ 15,703 |
Restructuring Reserve [Abstract] | |||
Beginning Balance | 29,806 | ||
Expense | 16,419 | 65,606 | 30,000 |
Asset Write-Down | (4,264) | (2,096) | |
Translation | 1,094 | 356 | |
Cash Expenditures | (25,416) | (49,763) | |
Ending Balance | 17,639 | 29,806 | |
Industrial [Member] | |||
Restructuring Reserve [Abstract] | |||
Beginning Balance | 17,733 | 8,989 | |
Expense | 12,733 | 39,613 | |
Asset Write-Down | (3,084) | (237) | |
Translation | 869 | 221 | |
Cash Expenditures | (20,284) | (30,853) | |
Ending Balance | 7,967 | 17,733 | 8,989 |
Industrial [Member] | Severance [Member] | |||
Restructuring Reserve [Abstract] | |||
Beginning Balance | 17,639 | 8,180 | |
Expense | 9,734 | 39,214 | |
Asset Write-Down | 0 | 0 | |
Translation | 868 | 229 | |
Cash Expenditures | (20,274) | (29,984) | |
Ending Balance | 7,967 | 17,639 | 8,180 |
Industrial [Member] | Facilities [Member] | |||
Restructuring Reserve [Abstract] | |||
Beginning Balance | 0 | 0 | |
Expense | 3,084 | 237 | |
Asset Write-Down | (3,084) | (237) | |
Translation | 0 | 0 | |
Cash Expenditures | 0 | 0 | |
Ending Balance | 0 | 0 | 0 |
Industrial [Member] | Other [Member] | |||
Restructuring Reserve [Abstract] | |||
Beginning Balance | 94 | 809 | |
Expense | (85) | 162 | |
Asset Write-Down | 0 | 0 | |
Translation | 1 | (8) | |
Cash Expenditures | (10) | (869) | |
Ending Balance | 0 | 94 | 809 |
WIDIA [Member] | |||
Restructuring Reserve [Abstract] | |||
Beginning Balance | 2,434 | 999 | |
Expense | 1,218 | 6,361 | |
Asset Write-Down | (747) | (10) | |
Translation | 42 | 36 | |
Cash Expenditures | (845) | (4,952) | |
Ending Balance | 2,102 | 2,434 | 999 |
WIDIA [Member] | Severance [Member] | |||
Restructuring Reserve [Abstract] | |||
Beginning Balance | 2,434 | 909 | |
Expense | 475 | 6,325 | |
Asset Write-Down | 0 | 0 | |
Translation | 42 | 37 | |
Cash Expenditures | (864) | (4,837) | |
Ending Balance | 2,087 | 2,434 | 909 |
WIDIA [Member] | Facilities [Member] | |||
Restructuring Reserve [Abstract] | |||
Beginning Balance | 0 | 0 | |
Expense | 747 | 10 | |
Asset Write-Down | (747) | (10) | |
Translation | 0 | 0 | |
Cash Expenditures | 0 | 0 | |
Ending Balance | 0 | 0 | 0 |
WIDIA [Member] | Other [Member] | |||
Restructuring Reserve [Abstract] | |||
Beginning Balance | 0 | 90 | |
Expense | (4) | 26 | |
Asset Write-Down | 0 | 0 | |
Translation | 0 | (1) | |
Cash Expenditures | 19 | (115) | |
Ending Balance | 15 | 0 | 90 |
Infrastructure [Member] | |||
Restructuring Reserve [Abstract] | |||
Beginning Balance | 9,639 | 5,715 | |
Expense | 2,468 | 19,632 | |
Asset Write-Down | (433) | (1,849) | |
Translation | 183 | 99 | |
Cash Expenditures | (4,287) | (13,958) | |
Ending Balance | 7,570 | 9,639 | 5,715 |
Infrastructure [Member] | Severance [Member] | |||
Restructuring Reserve [Abstract] | |||
Beginning Balance | 9,573 | 5,301 | |
Expense | 2,053 | 17,710 | |
Asset Write-Down | 0 | 0 | |
Translation | 183 | 103 | |
Cash Expenditures | (4,251) | (13,541) | |
Ending Balance | 7,558 | 9,573 | 5,301 |
Infrastructure [Member] | Facilities [Member] | |||
Restructuring Reserve [Abstract] | |||
Beginning Balance | 21 | 33 | |
Expense | 433 | 1,849 | |
Asset Write-Down | (433) | (1,849) | |
Translation | 0 | 0 | |
Cash Expenditures | (21) | (12) | |
Ending Balance | 0 | 21 | 33 |
Infrastructure [Member] | Other [Member] | |||
Restructuring Reserve [Abstract] | |||
Beginning Balance | 45 | 381 | |
Expense | (18) | 73 | |
Asset Write-Down | 0 | 0 | |
Translation | 0 | (4) | |
Cash Expenditures | (15) | (405) | |
Ending Balance | $ 12 | $ 45 | $ 381 |
Restructuring and Related Cha91
Restructuring and Related Charges and Asset Impairment Charges - Restructuring and Related Charges Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Restructuring and Related Costs and Reserve [Line Items] | |||
Legacy restructuring pre-tax savings inception-to-date | $ 165,000 | ||
Tangible Asset Impairment Charges | $ 5,400 | ||
Estimated future pre-tax savings from Industrial Simplification | 10,000 | ||
Restructuring and Related Cost, Incurred Cost | 15,900 | $ 76,200 | 53,500 |
Gain (Loss) on Sale of Properties | 4,700 | ||
Restructuring Charges | 16,419 | 65,606 | 30,000 |
Restructuring Charges Related to Inventory Disposals | (200) | 600 | |
Assets held for sale (Note 15) | 0 | 6,980 | |
Restructuring reserve, current | 17,469 | 27,294 | 15,703 |
Restructuring Reserve, Noncurrent | 100 | 2,500 | |
Industrial [Member] | |||
Restructuring and Related Costs and Reserve [Line Items] | |||
Restructuring Charges | 12,733 | 39,613 | |
WIDIA [Member] | |||
Restructuring and Related Costs and Reserve [Line Items] | |||
Restructuring Charges | 1,218 | 6,361 | |
Infrastructure [Member] | |||
Restructuring and Related Costs and Reserve [Line Items] | |||
Restructuring Charges | 2,468 | 19,632 | |
Ongoing Restructuring [Member] | |||
Restructuring and Related Costs and Reserve [Line Items] | |||
Restructuring and Related Cost, Cost Incurred to Date | 152,700 | ||
Ongoing Restructuring [Member] | Industrial [Member] | |||
Restructuring and Related Costs and Reserve [Line Items] | |||
Restructuring and Related Cost, Cost Incurred to Date | 85,600 | ||
Ongoing Restructuring [Member] | WIDIA [Member] | |||
Restructuring and Related Costs and Reserve [Line Items] | |||
Restructuring and Related Cost, Cost Incurred to Date | 13,900 | ||
Ongoing Restructuring [Member] | Infrastructure [Member] | |||
Restructuring and Related Costs and Reserve [Line Items] | |||
Restructuring and Related Cost, Cost Incurred to Date | 45,900 | ||
Ongoing Restructuring [Member] | Corporate Segment [Member] | |||
Restructuring and Related Costs and Reserve [Line Items] | |||
Restructuring and Related Cost, Cost Incurred to Date | 7,300 | ||
Industrial Simplification [Member] | Industrial [Member] | |||
Restructuring and Related Costs and Reserve [Line Items] | |||
Restructuring and Related Cost, Cost Incurred to Date | 8,200 | ||
Cost of Sales [Member] | |||
Restructuring and Related Costs and Reserve [Line Items] | |||
Restructuring Related Charges | 3,700 | 7,100 | 7,300 |
Operating Expense [Member] | |||
Restructuring and Related Costs and Reserve [Line Items] | |||
Restructuring Related Charges | $ 500 | $ 3,500 | $ 16,200 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Fair Value [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 996.4 | $ 704 |
Contracts Translated to U S Dollars [Member] | ||
Fair Value [Line Items] | ||
Derivative, Notional Amount | 62.9 | 75.3 |
Estimated Amount Of Receivable On Settlement Of Foreign Exchange Contracts | 0.8 | (0.8) |
Foreign Exchange Contract [Member] | ||
Fair Value [Line Items] | ||
Derivative, Notional Amount | $ 62.9 | $ 75.3 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions Used in Black-Scholes Valuation for Grants (Details) - Stock Option [Member] | 12 Months Ended | |
Jun. 30, 2016 | ||
Assumptions used in valuation of stock options | ||
Risk-free interest rate | 1.40% | |
Expected life (years) | 4 years 6 months | [1] |
Expected volatility | 31.70% | [2] |
Expected dividend yield | 2.10% | |
[1] | Expected life is derived from historical experience. | |
[2] | Expected volatility is based on the implied historical volatility of our stock. |
Stock-Based Compensation - Chan
Stock-Based Compensation - Changes in Stock Options (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Jun. 30, 2018USD ($)$ / sharesshares | |
Changes in stock options | |
Options outstanding, Beginning of Period | shares | 1,726,791 |
Options, Granted | shares | 0 |
Options, Exercised | shares | (625,503) |
Options, Lapsed and Forfeited | shares | (111,296) |
Options outstanding, End of Period | shares | 989,992 |
Options vested and expected to vest, June 30, 2018 | shares | 989,992 |
Options exercisable, June 30, 2018 | shares | 812,159 |
Weighted Average Exercise Price, Options outstanding, Beginning of Period | $ / shares | $ 34.08 |
Weighted Average Exercise Price, Granted | $ / shares | 0 |
Weighted Average Exercise Price, Exercised | $ / shares | 35.54 |
Weighted Average Exercise Price, Lapsed and Forfeited | $ / shares | 34.68 |
Weighted Average Exercise Price, Options outstanding, End of Period | $ / shares | 33.08 |
Weighted Average Exercise Price, Option vested and expected to vest, June 30, 2018 | $ / shares | 33.08 |
Weighted Average Exercise Price, Options exercisable, June 30, 2018 | $ / shares | $ 33.97 |
Weighted Average Remaining Life, Options outstanding, June 30, 2018 | 5 years 1 month |
Weighted Average Remaining Life, Options vested and expected to vest, June 30, 2018 | 5 years 1 month |
Weighted Average Remaining Life, Options exercisable, June 30, 2018 | 4 years 7 months |
Aggregate Intrinsic value, Options outstanding, June 30, 2018 | $ | $ 5,170 |
Aggregate Intrinsic Value, Options vested and expected to vest, June 30, 2018 | $ | 5,170 |
Aggregate Intrinsic Value, Options exercisable, June 30, 2018 | $ | $ 3,851 |
Stock-Based Compensation - Ch95
Stock-Based Compensation - Changes in Restricted Stock Units (Details) | 12 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Performance Shares [Member] | |
Changes in Restricted Stock Units | |
Unvested Performance Vesting and Time Vesting Restricted Stock Units, Beginning of Period, Shares | shares | 280,250 |
Granted, Shares | shares | 158,397 |
Vested, Shares | shares | (10,031) |
Performance metric adjustments, net | shares | 16,766 |
Forfeited, Shares | shares | (36,085) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares | $ 30.91 |
Unvested Performance Vesting and Time Vesting Restricted Stock Units End of Period | shares | 409,297 |
Weighted Average Fair Value, Unvested Restricted Stock Units, Beginning of Period | $ / shares | $ 27.62 |
Weighted Average Fair Value, Granted | $ / shares | 38.81 |
Weighted Average Fair Value, Vested | $ / shares | 42.83 |
Performance Metric Not Achieved, Weighted Average Exercise Price | $ / shares | 25.88 |
Weighted Average Fair Value, Unvested Restricted Stock Units, End of Period | $ / shares | $ 31.22 |
Restricted Stock Units - Time Vesting [Member] | |
Changes in Restricted Stock Units | |
Unvested Performance Vesting and Time Vesting Restricted Stock Units, Beginning of Period, Shares | shares | 1,153,444 |
Granted, Shares | shares | 434,391 |
Vested, Shares | shares | (421,625) |
Forfeited, Shares | shares | (82,535) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares | $ 30.81 |
Unvested Performance Vesting and Time Vesting Restricted Stock Units End of Period | shares | 1,083,675 |
Weighted Average Fair Value, Unvested Restricted Stock Units, Beginning of Period | $ / shares | $ 27.66 |
Weighted Average Fair Value, Granted | $ / shares | 37.87 |
Weighted Average Fair Value, Vested | $ / shares | 30.29 |
Weighted Average Fair Value, Unvested Restricted Stock Units, End of Period | $ / shares | $ 30.47 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 0 | ||
Stock-Based Compensation (Textual) [Abstract] | |||
Tax benefits resulting from stock-based compensation deductions in excess of amounts reported for financial reporting purposes | $ 1.4 | ||
Stock-Based Compensation (Additional Textual) [Abstract] | |||
Maximum period of achievement of performance goals to earn performance units | 3 years | ||
Minimum performance period of individual required to earn performance units | 3 years | ||
Stock Option [Member] | |||
Stock-Based Compensation (Textual) [Abstract] | |||
Compensation expense related to stock option | $ 0.7 | $ 1.5 | $ 3.3 |
Unrecognized compensation cost | $ 0.1 | ||
Unrecognized compensation costs, weighted average period | 3 months | ||
Weighted average fair value of options granted | $ 6.45 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 1.9 | 3.3 | $ 2.3 |
Tax benefits resulting from stock-based compensation deductions in excess of amounts reported for financial reporting purposes | 0 | (1.9) | |
Cash received from the exercise of capital stock option | 22.2 | 21.3 | 1 |
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options | 1.4 | 0 | |
Total Intrinsic value of options exercised | 6.6 | 3.1 | |
Restricted Stock Units - Time Vesting Performance Vesting [Member] | |||
Stock-Based Compensation (Textual) [Abstract] | |||
Compensation expense related to stock option | 19.4 | $ 19.3 | $ 14.6 |
Unrecognized compensation cost | $ 13.9 | ||
Unrecognized compensation costs, weighted average period | 1 year 10 months 15 days |
Environmental Matters (Details)
Environmental Matters (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Environmental Remediation Obligations [Abstract] | ||
Accrual for Potential Environmental Loss Contingencies | $ 12.5 | $ 12.4 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Lease Payments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Lease Expense Under Rental | $ 26.6 | $ 26.3 | $ 28.6 |
Future Minimum Operating Lease Payment For Year 2019 | 17.6 | ||
Future Minimum Operating Lease Payment For Year 2020 | 13.7 | ||
Future Minimum Operating Lease Payment For Year 2021 | 9.3 | ||
Future Minimum Operating Lease Payment For Year 2022 | 5.4 | ||
Future Minimum Operating Lease Payment For Year 2023 | 4.1 | ||
Future Minimum Operating Lease Payment Due Thereafter | $ 15.2 |
Segment Data (Details)
Segment Data (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | |||
Prior period reclassification of sales | $ 28,900 | $ 31,200 | |
Property, Plant and Equipment, Net | $ 824,213 | 744,388 | 730,640 |
Total External Sales | 2,367,853 | 2,058,368 | 2,098,436 |
Total operating income (loss) | 307,565 | 112,944 | (174,943) |
Interest expense | 30,081 | 28,842 | 27,752 |
Other expense (income), net | 2,443 | 2,227 | (4,124) |
Income (loss) before income taxes | 275,041 | 81,875 | (198,571) |
Depreciation and Amortization | 108,680 | 107,656 | 117,466 |
Assets | 2,925,737 | 2,415,496 | 2,362,783 |
Capital Expenditures | 171,004 | 118,018 | 110,697 |
Assets held for sale (Note 15) | 0 | 6,980 | |
Industrial [Member] | |||
Segment Reporting Information [Line Items] | |||
Total External Sales | 1,292,098 | 1,126,309 | 1,098,439 |
Total operating income (loss) | 187,495 | 82,842 | 90,324 |
Depreciation and Amortization | 57,261 | 54,269 | 52,523 |
Assets | 1,169,610 | 1,103,686 | 1,019,887 |
Capital Expenditures | 112,124 | 70,281 | 66,467 |
WIDIA [Member] | |||
Segment Reporting Information [Line Items] | |||
Total External Sales | 198,568 | 177,662 | 170,723 |
Total operating income (loss) | 4,441 | (9,606) | (9,081) |
Depreciation and Amortization | 9,483 | 10,728 | 10,419 |
Assets | 193,971 | 191,626 | 195,339 |
Capital Expenditures | 17,445 | 17,853 | 14,093 |
Infrastructure [Member] | |||
Segment Reporting Information [Line Items] | |||
Total External Sales | 877,187 | 754,397 | 829,274 |
Total operating income (loss) | 119,701 | 40,011 | (246,306) |
Depreciation and Amortization | 41,916 | 42,596 | 54,459 |
Assets | 864,402 | 813,747 | 849,447 |
Capital Expenditures | 41,435 | 29,884 | 30,137 |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Total operating income (loss) | (4,072) | (303) | (9,880) |
Depreciation and Amortization | 20 | 63 | 65 |
Assets | $ 697,754 | $ 306,437 | $ 298,110 |
Segment Data - Geographic Sales
Segment Data - Geographic Sales Information (Details) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | |
External Sales and Long-Lived Assets [Line Items] | |||
Prior period reclassification of sales | $ 28,900 | $ 31,200 | |
Number of countries in Other | 26 | ||
Sales from Other country did not exceed | 2.00% | ||
Property, Plant and Equipment, Net | $ 824,213 | 744,388 | 730,640 |
External Sales [Abstract] | |||
Total External Sales | 2,367,853 | 2,058,368 | 2,098,436 |
Total Long-Lived Assets [Abstract] | |||
Long-Lived Assets | 824,213 | 751,368 | 730,640 |
UNITED STATES | |||
External Sales [Abstract] | |||
Total External Sales | 970,003 | 868,466 | 866,197 |
Total Long-Lived Assets [Abstract] | |||
Long-Lived Assets | 456,678 | 423,543 | 424,970 |
GERMANY | |||
External Sales [Abstract] | |||
Total External Sales | 331,893 | 282,347 | 334,366 |
Total Long-Lived Assets [Abstract] | |||
Long-Lived Assets | 188,673 | 157,323 | 143,855 |
CHINA | |||
External Sales [Abstract] | |||
Total External Sales | 271,343 | 220,561 | 210,124 |
Total Long-Lived Assets [Abstract] | |||
Long-Lived Assets | 67,462 | 60,908 | 62,614 |
INDIA | |||
External Sales [Abstract] | |||
Total External Sales | 102,120 | 84,769 | 77,934 |
Total Long-Lived Assets [Abstract] | |||
Long-Lived Assets | 31,984 | 28,569 | 23,797 |
ITALY | |||
External Sales [Abstract] | |||
Total External Sales | 69,049 | 59,967 | 69,821 |
CANADA | |||
External Sales [Abstract] | |||
Total External Sales | 102,139 | 85,488 | 87,014 |
Total Long-Lived Assets [Abstract] | |||
Long-Lived Assets | 19,396 | 19,576 | 18,587 |
FRANCE | |||
External Sales [Abstract] | |||
Total External Sales | 62,982 | 56,231 | 56,264 |
UNITED KINGDOM | |||
External Sales [Abstract] | |||
Total External Sales | 45,714 | 39,731 | 50,723 |
ISRAEL | |||
Total Long-Lived Assets [Abstract] | |||
Long-Lived Assets | 25,831 | 26,627 | 23,083 |
Other | |||
External Sales [Abstract] | |||
Total External Sales | 412,610 | 360,808 | 345,993 |
Total Long-Lived Assets [Abstract] | |||
Long-Lived Assets | $ 34,189 | $ 34,822 | $ 33,734 |
Segment Data Segment Data - Sal
Segment Data Segment Data - Sales by End Market (Details) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenue from External Customer [Line Items] | |||
Sales by End Market | 100.00% | 100.00% | 100.00% |
General Engineering [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales by End Market | 41.00% | 39.00% | 38.00% |
Transportation [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales by End Market | 20.00% | 20.00% | 21.00% |
Energy [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales by End Market | 17.00% | 18.00% | 17.00% |
Earthworks [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales by End Market | 14.00% | 15.00% | 16.00% |
Aerospace and Defense [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales by End Market | 8.00% | 8.00% | 8.00% |
Segment Data - Narrative (Detai
Segment Data - Narrative (Details) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018USD ($)Segment | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | |
Segment Reporting [Abstract] | |||
Operations in Number of Global Reporting Segments | Segment | 3 | ||
Sales To a Single Customer Did Not Aggretage More Than | 0.04 | ||
Export Sales from U.S. Operations to Unaffiliated Customers | $ | $ 72.4 | $ 58.6 | $ 65.3 |
Selected Quarterly Financial103
Selected Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | ||||||||
Quarterly Financial Data [Abstract] | ||||||||||||||||||
Sales | $ 646,119 | $ 607,936 | $ 571,345 | $ 542,454 | $ 565,025 | $ 528,630 | $ 487,573 | $ 477,140 | $ 2,367,853 | $ 2,058,368 | $ 2,098,436 | |||||||
Gross profit | 235,294 | 219,461 | 192,545 | 184,993 | 180,289 | 186,265 | 147,623 | 143,530 | 832,292 | 657,707 | 616,067 | |||||||
Net income (loss) attributable to Kennametal | $ 68,528 | $ 50,866 | $ 41,601 | $ 39,183 | $ 24,643 | $ 38,890 | $ 7,262 | $ (21,656) | $ 200,180 | $ 49,138 | $ (225,968) | |||||||
Basic earnings (loss) per share attributable to Kennametal | $ 0.84 | $ 0.62 | [1] | $ 0.51 | [1] | $ 0.48 | [1] | $ 0.31 | [1] | $ 0.48 | [1] | $ 0.09 | [1] | $ (0.27) | [1] | $ 2.45 | $ 0.61 | $ (2.83) |
Diluted earnings (loss) per share attributable to Kennametal | $ 0.83 | $ 0.61 | [1] | $ 0.50 | [1] | $ 0.48 | [1] | $ 0.30 | [1] | $ 0.48 | [1] | $ 0.09 | [1] | $ (0.27) | [1] | $ 2.42 | $ 0.61 | $ (2.83) |
[1] | Earnings per share amounts attributable to Kennametal for each quarter are computed using the weighted average number of shares outstanding during the quarter. Earnings per share amounts attributable to Kennametal for the full year are computed using the weighted average number of shares outstanding during the year. Thus, the sum of the four quarters’ earnings per share attributable to Kennametal does not always equal the full-year earnings per share attributable to Kennametal. |
Subsequent Events (Details)
Subsequent Events (Details) - 2.650% Senior Notes due 2019 [Member] $ in Millions | Nov. 07, 2012USD ($) |
Subsequent Event [Line Items] | |
Proceeds from Issuance of Senior Long-term Debt | $ 400 |
Debt Instrument, Interest Rate, Stated Percentage | 2.65% |
Schedule II Valuation and Qu105
Schedule II Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Allowance for Doubtful Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | $ 13,693 | $ 12,724 | $ 13,560 |
Charges to Costs and Expenses | 1,831 | 3,589 | 4,827 |
Charged to Other Comprehensive (Loss) Income | 0 | 0 | 0 |
Recoveries | 559 | 45 | 31 |
Other Adjustments | (135) | (24) | (601) |
Deductions from Reserves | (4,141) | (2,641) | (5,093) |
Balance at End of Year | 11,807 | 13,693 | 12,724 |
Reserve for Excess and Obsolete Inventory [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | 32,114 | 36,713 | 45,020 |
Charges to Costs and Expenses | 9,067 | 9,603 | 5,393 |
Charged to Other Comprehensive (Loss) Income | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Other Adjustments | 108 | 328 | (3,372) |
Deductions from Reserves | (10,032) | (14,530) | (10,328) |
Balance at End of Year | 31,257 | 32,114 | 36,713 |
Deferred Tax Asset Valuation Allowance [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | 116,770 | 122,699 | 16,771 |
Charges to Costs and Expenses | (94,641) | 2,361 | 85,361 |
Charged to Other Comprehensive (Loss) Income | 511 | (5,805) | 24,666 |
Recoveries | 0 | 0 | 0 |
Other Adjustments | (1,011) | (2,485) | (4,099) |
Deductions from Reserves | 0 | 0 | 0 |
Balance at End of Year | $ 21,629 | $ 116,770 | $ 122,699 |