Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2018 | Oct. 31, 2018 | |
Document Information [Line Items] | ||
Entity Registrant Name | KENNAMETAL INC. | |
Entity Central Index Key | 55,242 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 82,102,785 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||
Sales (Note 3) | $ 586,687 | $ 542,454 |
Cost of goods sold | 375,595 | 360,505 |
Gross profit | 211,092 | 181,949 |
Operating expense | 123,285 | 120,592 |
Restructuring and asset impairment charges (Note 7) | 1,075 | 5,525 |
Amortization of intangibles | 3,580 | 3,661 |
Operating income | 83,152 | 52,171 |
Interest expense | 8,097 | 7,149 |
Other income, net | (2,761) | (4,218) |
Income before income taxes | 77,816 | 49,240 |
Provision for income taxes | 19,392 | 9,602 |
Net income | 58,424 | 39,638 |
Less: Net income attributable to noncontrolling interests | 1,725 | 455 |
Net income attributable to Kennametal | $ 56,699 | $ 39,183 |
PER SHARE DATA ATTRIBUTABLE TO KENNAMETAL SHAREHOLDERS | ||
Basic earnings per share | $ 0.69 | $ 0.48 |
Diluted earnings per share | 0.68 | 0.48 |
Dividends per share | $ 0.20 | $ 0.20 |
Basic weighted average shares outstanding | 82,105 | 81,071 |
Diluted weighted average shares outstanding | 83,194 | 82,123 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Net income | $ 58,424 | $ 39,638 |
Other comprehensive (loss) income, net of tax [Abstract] | ||
Unrealized loss on derivatives designated and qualified as cash flow hedges | (262) | (619) |
Reclassification of unrealized loss on derivatives designated and qualified as cash flow hedges | 595 | 396 |
Unrecognized net pension and other postretirement benefit gain (loss) | 318 | (1,965) |
Reclassification of net pension and other postretirement benefit loss | 1,312 | 1,779 |
Foreign currency translation adjustments | (16,203) | 19,868 |
Total other comprehensive (loss) income, net of tax | (14,240) | 19,459 |
Total comprehensive income | 44,184 | 59,097 |
Less: comprehensive income attributable to noncontrolling interests | 493 | 739 |
Comprehensive income attributable to Kennametal Shareholders | $ 43,691 | $ 58,358 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 102,084 | $ 556,153 |
Accounts receivable, less allowance for doubtful accounts of $12,134 and $11,807, respectively | 386,685 | 401,290 |
Inventories (Note 10) | 569,252 | 525,466 |
Other current assets | 63,461 | 63,257 |
Total current assets | 1,121,482 | 1,546,166 |
Property, plant and equipment: | ||
Land and buildings | 349,244 | 351,953 |
Machinery and equipment | 1,723,306 | 1,702,243 |
Less accumulated depreciation | (1,238,199) | (1,229,983) |
Property, plant and equipment, net | 834,351 | 824,213 |
Other assets: | ||
Goodwill (Note 17) | 300,844 | 301,802 |
Other intangible assets, less accumulated amortization of $148,413 and $145,334, respectively (Note 17) | 172,477 | 176,468 |
Deferred income taxes | 16,714 | 17,015 |
Other | 66,336 | 60,073 |
Total other assets | 556,371 | 555,358 |
Total assets | 2,512,204 | 2,925,737 |
Current liabilities: | ||
Current maturities of long-term debt and capital leases (Note 11) | 0 | 399,266 |
Notes payable to banks | 756 | 934 |
Accounts payable | 220,887 | 221,903 |
Accrued income taxes | 30,025 | 18,603 |
Accrued expenses | 64,356 | 95,239 |
Other current liabilities | 123,147 | 150,586 |
Total current liabilities | 439,171 | 886,531 |
Long-term debt and capital leases, less current maturities (Note 11) | 591,303 | 591,505 |
Deferred income taxes | 27,389 | 26,991 |
Accrued pension and postretirement benefits | 159,547 | 159,522 |
Accrued income taxes | 6,265 | 6,249 |
Other liabilities | 24,420 | 24,612 |
Total liabilities | 1,248,095 | 1,695,410 |
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; 82,092 and 81,646 shares issued, respectively | 102,615 | 102,058 |
Additional paid-in capital | 517,349 | 511,909 |
Retained earnings | 940,983 | 900,683 |
Accumulated other comprehensive loss | (333,333) | (320,325) |
Total Kennametal Shareholders' Equity | 1,227,614 | 1,194,325 |
Noncontrolling interests | 36,495 | 36,002 |
Total equity | 1,264,109 | 1,230,327 |
Total liabilities and equity | $ 2,512,204 | $ 2,925,737 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 12,134 | $ 11,807 |
Accumulated amortization on other intangible assets | $ 148,413 | $ 145,334 |
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 | 82,092 | 81,646 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
OPERATING ACTIVITIES | ||
Net income | $ 58,424 | $ 39,638 |
Adjustments for non-cash items: | ||
Depreciation | 23,973 | 22,777 |
Amortization | 3,580 | 3,661 |
Stock-based compensation expense | 8,486 | 6,543 |
Restructuring and asset impairment charges (Note 7) | (288) | 3,159 |
Deferred income tax provision | 20 | 577 |
Other | 257 | 1,368 |
Changes in certain assets and liabilities: | ||
Accounts receivable | 9,009 | 626 |
Inventories | (48,597) | (19,704) |
Accounts Payable and accrued liabilities (Note 4) | (52,731) | (82,454) |
Accrued income taxes | 9,461 | 398 |
Accrued pension and postretirement benefits | (4,348) | (8,060) |
Other | 1,955 | (8,203) |
Net cash flow provided by (used for) operating activities | 9,201 | (39,674) |
INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment (Note 4) | (43,263) | (22,306) |
Disposals of property, plant and equipment | 833 | 426 |
Other | 37 | (67) |
Net cash flow used for investing activities | (42,393) | (21,947) |
FINANCING ACTIVITIES | ||
Net (decrease) increase in notes payable | (16) | 423 |
Term debt repayments | (400,000) | (93) |
Purchase of capital stock | (54) | (55) |
Dividend reinvestment and the effect of employee benefit and stock plans | (2,436) | (3,969) |
Cash dividends paid to Shareholders | (16,399) | (16,191) |
Other | 16 | (320) |
Net cash flow used for financing activities | (418,889) | (20,205) |
Effect of exchange rate changes on cash and cash equivalents | (1,988) | 1,894 |
CASH AND CASH EQUIVALENTS | ||
Net decrease in cash and cash equivalents | (454,069) | (79,932) |
Cash and cash equivalents, beginning of period | 556,153 | 190,629 |
Cash and cash equivalents, end of period | $ 102,084 | $ 110,697 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The condensed consolidated financial statements, which include our accounts and those of our majority-owned subsidiaries, should be read in conjunction with our 2018 Annual Report on Form 10-K. The condensed consolidated balance sheet as of June 30, 2018 was derived from the audited balance sheet included in our 2018 Annual Report on Form 10-K. These interim statements are unaudited; however, we believe that all adjustments necessary for a fair statement of the results of the interim periods were made and all adjustments are normal recurring adjustments. The results for the three months ended September 30, 2018 and 2017 are not necessarily indicative of the results to be expected for a full fiscal year. Unless otherwise specified, any reference to a “year” is to a fiscal year ended June 30. For example, a reference to 2019 is to the fiscal year ending June 30, 2019 . When used in this Quarterly Report on Form 10-Q, unless the context requires otherwise, the terms “we,” “our” and “us” refer to Kennametal Inc. and its subsidiaries. |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
Sep. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
NEW ACCOUNTING STANDARDS | NEW ACCOUNTING STANDARDS Adopted In May 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)," which requires an entity to recognize revenue in a manner that depicts the transfer of promised goods to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange. The standard also expands the disclosure requirements around contracts with customers. We adopted Topic 606 July 1, 2018 using the modified retrospective transition method applied to those contracts that were not completed as of that date. The adoption did not have a material impact on the condensed consolidated financial statements beyond the additional disclosure requirements. Refer to Notes 3 and 18 to the condensed consolidated financial statements for further details. 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. We adopted this ASU July 1, 2018. Adoption of this guidance did not have a material effect on our condensed consolidated financial statements. 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. We adopted this ASU July 1, 2018. Adoption of this guidance did not have a material effect on our condensed 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. We adopted this ASU July 1, 2018, with the amendments applied on a retrospective basis. Refer to Note 9 to the condensed consolidated financial statements for further details. 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. We adopted this ASU July 1, 2018. Adoption of this guidance did not have a material effect on our condensed consolidated financial statements. Issued In August 2018, the FASB issued ASU 2018-15, "Intangibles - Goodwill and Other - Internal-use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract." The standard requires implementation costs incurred by customers in cloud computing arrangements to be capitalized and amortized under the same premises of authoritative guidance for internal-use software. 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 August 2018, the FASB issued ASU 2018-14, "Compensation - Retirement Benefits - Defined Benefit Plans - General: Disclosure Framework - Changes to Disclosure Requirements for Defined Benefit Plans." The standard modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. This standard is effective for Kennametal beginning July 1, 2021. 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. Currently, we are inventorying our leasing arrangements in order to determine the impact this ASU will have on our consolidated financial statements. |
Revenue Recognition Narrative
Revenue Recognition Narrative | 3 Months Ended |
Sep. 30, 2018 | |
Revenue Recognition [Abstract] | |
Revenue Recognition, Sales of Goods [Policy Text Block] | 3. REVENUE RECOGNITION Revenue Accounting Description and Policy The Company's contracts with customers are comprised of purchase orders, and for larger customers, may also include long-term agreements. We account for a contract when it has approval and commitment from both parties, the rights of the parties and payment terms are identified, the contract has commercial substance and collectability of consideration is probable. These contracts with customers typically relate to the manufacturing of products, which represent single performance obligations that are satisfied when control of the product passes to the customer. The Company considers the timing of right to payment, transfer of risk and rewards, transfer of title, transfer of physical possession and customer acceptance when determining when control transfers to the customer. As a result, revenue is generally recognized at a point in time - either upon shipment or delivery - based on the specific shipping terms in the contract. The shipping terms vary across all businesses and depend on the product, the country of origin and the type of transportation. Shipping and handling activities are accounted for as activities to fulfill a promise to transfer a product to a customer and as such, costs incurred are recorded when the related revenue is recognized. Payment for products is due within a limited time period after shipment or delivery, typically within 30 - 90 calendar days of the respective invoice dates. The Company does not generally offer extended payment terms. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods. Amounts billed and due from our customers are classified as accounts receivable, less allowance for doubtful accounts on the condensed consolidated balance sheet. Certain contracts with customers, primarily distributor customers, have an element of variable consideration that is estimated when revenue is recognized under the contract. Variable consideration primarily includes volume incentive rebates, which are based on achieving a certain level of purchases and other performance criteria as established by our distributor programs. These rebates are estimated based on projected sales to the customer and accrued as a reduction of net sales as they are earned. The majority of our products are consumed by our customers or end users in the manufacture of their products. Historically, we have experienced very low levels of returned products and do not consider the effect of returned products to be material. See "Note 18. Segment Data" for disaggregation of revenue by geography and end market. Contract Balances The Company records a contract asset when it has a right to payment from a customer that is conditioned on events that have occurred other than the passage of time. The Company also records a contract liability when customers prepay but the Company has not yet satisfied its performance obligation. The Company did not have any material remaining performance obligations, contract assets or liabilities as of September 30, 2018 and June 30, 2018 . Practical Expedient The Company pays sales commissions related to certain contracts, which qualify as incremental costs of obtaining a contract. However, the Company applies the practical expedient that allows an entity to recognize incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that would have been recognized is one year or less. These costs are recorded within operating expense in our condensed consolidated statement of income. |
Supplemental Cash Flow Disclosu
Supplemental Cash Flow Disclosures | 3 Months Ended |
Sep. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW DISCLOSURES | SUPPLEMENTAL CASH FLOW DISCLOSURES Three Months Ended September 30, (in thousands) 2018 2017 Cash paid during the period for: Interest $ 9,966 $ 7,060 Income taxes 9,911 8,627 Supplemental disclosure of non-cash information: Changes in accounts payable related to purchases of property, plant and equipment (3,200 ) 8,300 During the current quarter, the Company revised its condensed consolidated statement of cash flow for the three months ended September 30, 2017 to correctly present the changes in accounts payable and accrued liabilities and in purchases of property, plant and equipment, resulting in an increase of $19.8 million to previously reported net cash flow used for operating activities and a corresponding decrease to previously reported net cash flow used for investing activities. Revisions of $25.7 million and $22.7 million will be made in future filings to the condensed consolidated statements of cash flow for the six months ended December 31, 2017 and the nine months ended March 31, 2018, respectively, with similar effects on the condensed consolidated statements of cash flow. The supplemental disclosure of non-cash information for changes in accounts payable related to purchases of property, plant and equipment for the three months ended September 30, 2017 was also revised accordingly, at an increase of $8.3 million . The amount of that disclosure will be revised in future filings for the six months ended December 31, 2017 and the nine months ended March 31, 2018 to depict increases of $14.2 million and $11.2 million , respectively. The Company has evaluated the correction and determined it was not material to the previously issued interim financial statements. The correction had no effect on the previously issued annual financial statements. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received on the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy consists of three levels to prioritize the inputs used in valuations, as defined below: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3: Inputs that are unobservable. As of September 30, 2018 , the fair values of the Company’s financial assets and financial liabilities are categorized as follows: (in thousands) Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 433 $ — $ 433 Total assets at fair value $ — $ 433 $ — $ 433 Liabilities: Derivatives (1) $ — $ 287 $ — $ 287 Total liabilities at fair value $ — $ 287 $ — $ 287 As of June 30, 2018 , the fair values of the Company’s financial assets and financial liabilities are categorized as follows: (in thousands) Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 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 (1) Currency derivatives are valued based on observable market spot and forward rates and are classified within Level 2 of the fair value hierarchy. There have been no changes in classification and transfers between levels in the fair value hierarchy in the current period. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Sep. 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. We do not enter into derivative transactions for speculative purposes and, therefore, hold no derivative instruments for trading purposes. We account for derivative instruments as a hedge of the related asset, liability, firm commitment or anticipated transaction, when the derivative is specifically designated and qualifies as a hedge of such items. Our objective in managing foreign exchange exposures with derivative instruments is to reduce volatility in cash flow. We measure hedge effectiveness by assessing the changes in the fair value or expected future cash flows of the hedged item. The ineffective portions are recorded in other income, net. The fair value of derivatives designated and not designated as hedging instruments in the condensed consolidated balance sheet are as follows: (in thousands) September 30, June 30, Derivatives designated as hedging instruments Other current assets - range forward contracts $ 406 $ 799 Other current liabilities - range forward contracts — (5 ) Other assets - range forward contracts 27 27 Total derivatives designated as hedging instruments 433 821 Derivatives not designated as hedging instruments Other current assets - currency forward contracts — 839 Other current liabilities - currency forward contracts (287 ) (202 ) Total derivatives not designated as hedging instruments (287 ) 637 Total derivatives $ 146 $ 1,458 Certain currency forward contracts that hedge significant cross-border intercompany loans are considered as other derivatives and therefore do not qualify for hedge accounting. These contracts are recorded at fair value in the condensed consolidated balance sheet, with the offset to other income, net. Gains (losses) related to derivatives not designated as hedging instruments have been recognized as follows: Three Months Ended September 30, (in thousands) 2018 2017 Other income, net - currency forward contracts $ 78 $ (116 ) CASH FLOW HEDGES Range forward contracts (a transaction where both a put option is purchased and a call option is sold) are designated as cash flow hedges and hedge anticipated cash flows from cross-border intercompany sales of products and services. Gains and losses realized on these contracts are recorded in accumulated other comprehensive (loss) income and are recognized as a component of other 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 September 30, 2018 and June 30, 2018 , was $60.2 million and $62.9 million , respectively. The time value component of the fair value of range forward contracts is excluded from the assessment of hedge effectiveness. Assuming the market rates remain constant with the rates at September 30, 2018 , we expect to recognize into earnings $0.2 million of income on outstanding derivatives in the next 12 months. The following represents losses related to cash flow hedges: Three Months Ended September 30, (in thousands) 2018 2017 Losses recognized in other comprehensive (loss) income, net $ (262 ) $ (619 ) Losses reclassified from accumulated other comprehensive loss into other income, net $ 532 $ 392 No portion of the gains or losses recognized in earnings was due to ineffectiveness and no amounts were excluded from our effectiveness testing for the three months ended September 30, 2018 and 2017 . NET INVESTMENT HEDGES As of September 30, 2018 , we had certain foreign currency-denominated intercompany loans payable with total aggregate principal amounts of €33.0 million as net investment hedges to hedge the foreign exchange exposure of our net investment in Euro-based subsidiaries. A gain of $0.1 million and a loss of $1.3 million were recorded as a component of foreign currency translation adjustments in other comprehensive (loss) income for the three months ended September 30, 2018 and 2017, respectively. As of September 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 € 27,527 $ 31,891 June 26, 2022 Foreign currency-denominated intercompany loan payable 8,728 10,112 November 20, 2018 Foreign currency-denominated intercompany loan payable 2,019 2,339 October 11, 2019 (2) Includes principal and accrued interest. |
Restructuring and Related Charg
Restructuring and Related Charges | 3 Months Ended |
Sep. 30, 2018 | |
Restructuring Charges [Abstract] | |
RESTRUCTURING AND RELATED CHARGES | RESTRUCTURING AND RELATED CHARGES In the June quarter of fiscal 2018, we implemented and substantially completed restructuring actions to simplify the Industrial segment's cost structure by directing resources to more profitable business and increasing sales force productivity. We supplemented this with the rationalization of a small manufacturing facility in the Infrastructure segment which we expect to complete in fiscal 2019. Total restructuring and related charges since inception of $11.8 million have been recorded for this program through September 30, 2018 . We recorded restructuring and related charges of $1.1 million and $6.9 million for the three months ended September 30, 2018 and 2017 , respectively. Of the 2017 amount, restructuring charges totaled $5.5 million . Restructuring-related charges of $1.3 million and $0.1 million were recorded in cost of goods sold and operating expense, respectively, for the three months ended September 30, 2017 . As of September 30, 2018 , the total restructuring accrual is recorded in other current liabilities in our condensed consolidated balance sheet. As of June 30, 2018 , $17.5 million and $0.1 million of the restructuring accrual is recorded in other current liabilities and other liabilities, respectively. The amount attributable to each segment is as follows: (in thousands) June 30, 2018 Expense Asset Write-Down Translation Cash Expenditures September 30, 2018 Industrial Severance $ 7,967 $ 186 $ — $ (8 ) $ (499 ) $ 7,646 Facilities — (9 ) 9 — — — Other — 8 — — 2 10 Total Industrial $ 7,967 $ 185 $ 9 $ (8 ) $ (497 ) $ 7,656 Widia Severance $ 2,087 $ 38 $ — $ (2 ) $ (103 ) $ 2,020 Facilities — — — — — — Other 15 2 — — 1 18 Total Widia $ 2,102 $ 40 $ — $ (2 ) $ (102 ) $ 2,038 Infrastructure Severance $ 7,558 $ 1,085 $ — $ (47 ) $ (2,911 ) $ 5,685 Facilities — (279 ) 279 — — — Other 12 44 — (1 ) 17 72 Total Infrastructure $ 7,570 $ 850 $ 279 $ (48 ) $ (2,894 ) $ 5,757 Total $ 17,639 $ 1,075 $ 288 $ (58 ) $ (3,493 ) $ 15,451 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Stock Options Changes in our stock options for the three months ended September 30, 2018 were as follows: Options Weighted Average Exercise Price Weighted Average Remaining Life (years) Aggregate Intrinsic value (in thousands) Options outstanding, June 30, 2018 989,992 $ 33.08 Exercised (107,880 ) 29.45 Options outstanding, September 30, 2018 882,112 $ 33.53 4.9 $ 9,066 Options vested and expected to vest, September 30, 2018 882,112 $ 33.53 4.9 $ 9,066 Options exercisable, September 30, 2018 834,539 $ 34.35 4.7 $ 7,907 During the three months ended September 30, 2018 and 2017 , compensation expense related to stock options was $0.1 million and $0.2 million , respectively. As of September 30, 2018 , the total unrecognized compensation cost related to options outstanding was immaterial and is expected to be recognized over a weighted average period of 0.5 years . Fair value of options vested during the three months ended September 30, 2018 and 2017 was $1.0 million and $1.6 million , respectively. The amount of cash received from the exercise of capital stock options during the three months ended September 30, 2018 was $3.1 million and was immaterial for the three months ended September 30, 2017. The total intrinsic value of options exercised during the three months ended September 30, 2018 was $1.4 million and was immaterial during the three months ended September 30, 2017 . Restricted Stock Units – Performance Vesting and Time Vesting Changes in our performance vesting and time vesting restricted stock units for the three months ended September 30, 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, 2018 409,297 $ 31.22 1,083,675 $ 30.47 Granted 147,769 37.74 419,069 37.79 Vested (36,394 ) 31.13 (425,891 ) 31.73 Performance metric adjustments, net 41,196 29.06 — — Forfeited (44,179 ) 31.04 (15,418 ) 32.21 Unvested, September 30, 2018 517,689 $ 32.93 1,061,435 $ 32.85 During the three months ended September 30, 2018 and 2017 , compensation expense related to time vesting and performance vesting restricted stock units was $7.8 million and $6.0 million , respectively. As of September 30, 2018 , the total unrecognized compensation cost related to unvested time vesting and performance vesting restricted stock units was $26.1 million and is expected to be recognized over a weighted average period of 2.3 years. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 3 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
PENSION AND OTHER POSTRETIREMENT BENEFITS | We sponsor several defined benefit pension plans. Additionally, we provide varying levels of postretirement health care and life insurance benefits to certain U.S. employees. The table below summarizes the components of net periodic pension income: Three Months Ended September 30, (in thousands) 2018 2017 Service cost $ 411 $ 404 Interest cost 7,990 7,657 Expected return on plan assets (13,462 ) (14,090 ) Amortization of transition obligation 23 23 Amortization of prior service (credit) cost (5 ) 173 Recognition of actuarial losses 1,695 1,710 Net periodic pension income $ (3,348 ) $ (4,123 ) The table below summarizes the components of net periodic other postretirement benefit cost: Three Months Ended September 30, (in thousands) 2018 2017 Interest cost $ 153 $ 157 Amortization of prior service credit (22 ) (6 ) Recognition of actuarial loss 62 70 Net periodic other postretirement benefit cost $ 193 $ 221 In accordance with ASU 2017-07, as described in Note 3, the service cost of $0.4 million for the three months ended September 30, 2018 and 2017 was reported as a component of cost of goods sold and operating expense. The other components of net periodic benefit income totaling a net benefit of $3.6 million for the three months ended September 30, 2018 were presented as a component of other income, net. For the three months ended September 30, 2017 , we reclassified a net benefit of $3.0 million and $1.3 million from cost of goods sold and operating expense, respectively to other income, net. |
Inventories
Inventories | 3 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES We used the last-in, first-out (LIFO) method of valuing inventories for 39 percent and 40 percent of total inventories at September 30, 2018 and June 30, 2018 , respectively. Since inventory valuations under the LIFO method are based on an annual determination of quantities and costs as of June 30 of each year, the interim LIFO valuations are based on our projections of expected year-end inventory levels and costs. Therefore, the interim financial results are subject to any final year-end LIFO inventory adjustments. Inventories consisted of the following: (in thousands) September 30, 2018 June 30, 2018 Finished goods $ 299,121 $ 279,240 Work in process and powder blends 251,322 232,973 Raw materials 102,339 96,859 Inventories at current cost 652,782 609,072 Less: LIFO valuation (83,530 ) (83,606 ) Total inventories $ 569,252 $ 525,466 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Our 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 million for working capital, capital expenditures and general corporate purposes. The Credit Agreement requires us to comply with various restrictive and affirmative covenants, including two financial covenants: a maximum leverage ratio and a minimum consolidated interest coverage ratio (as those terms are defined in the Credit Agreement). We were in compliance with all such covenants as of September 30, 2018 . We had no borrowings outstanding under the Credit Agreement as of September 30, 2018 and June 30, 2018 . Borrowings under the Credit Agreement are guaranteed by our significant domestic subsidiaries. The Credit Agreement matures in June 2023. Fixed rate debt had a fair market value of $592.2 million and $996.4 million at September 30, 2018 and June 30, 2018 , respectively. The Level 2 fair value is determined based on the quoted market price of this debt as of September 30, 2018 and June 30, 2018 , respectively. On July 9, 2018, the Company completed the early redemption of its previously outstanding $400.0 million of 2.650 percent Senior Unsecured Notes due 2019. |
Environmental Matters
Environmental Matters | 3 Months Ended |
Sep. 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 of our locations. We establish and maintain reserves for certain potential environmental issues. At September 30, 2018 and June 30, 2018 , the balances of these reserves were $12.6 million . These reserves represent anticipated costs associated with the remediation of these issues and are generally not discounted. The reserves we have established for environmental liabilities represent our best current estimate of the costs of addressing all identified environmental situations, based on our review of currently available evidence, and taking into consideration our prior experience in remediation and that of other companies, as well as public information released by the United States Environmental Protection Agency (USEPA), other governmental agencies and by the Potentially Responsible Party (PRP) groups in which we are participating. Although the reserves currently appear to be sufficient to cover these environmental liabilities, there are uncertainties associated with environmental liabilities, and we can give no assurance that our estimate of any environmental liability will not increase or decrease in the future. The reserved and unreserved liabilities for all environmental concerns could change substantially due to factors such as the nature and extent of contamination, changes in remedial requirements, technological changes, discovery of new information, the financial strength of other PRPs, the identification of new PRPs and the involvement of and direction taken by the government on these matters. 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 USEPA as a PRP with respect to environmental remedial costs at certain Superfund sites. We have evaluated our claims and liabilities associated with these Superfund sites based upon best currently available information. We believe our environmental accruals are adequate to cover our portion of the environmental remedial costs at the Superfund sites where we have been designated a PRP, to the extent these expenses are probable and reasonably estimable. |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The effective income tax rates for the three months ended September 30, 2018 and 2017 were 24.9 percent and 19.5 percent , respectively. The change is primarily due to (1) U.S. income in the prior year quarter not being tax-effected and current quarter U.S. income being tax-effected now that a valuation allowance is no longer recorded on U.S. deferred tax assets; (2) the reduction in the U.S. federal statutory tax rate, partially offset by the tax on global intangible low-taxed income (GILTI) associated with tax reform effective in fiscal 2019; and (3) an incremental charge in the current quarter to estimate the one-time tax that is imposed on our unremitted foreign earnings (toll tax). Tax Cuts and Jobs Act of 2017 (TCJA) Three items from TCJA that effect the Company for fiscal 2019 are the reduction in the statutory tax rate, the toll tax and GILTI. At this time, the Company does not anticipate a material impact to the fiscal 2019 condensed consolidated financial statements from the base erosion anti-abuse tax (BEAT) or a deduction for foreign-derived intangible income (FDII). In accordance with the SEC Staff Accounting Bulletin 118 (SAB 118), we have accounted for the impacts of TCJA provisions first effective in fiscal 2018 to the extent a reasonable estimate could be made during the three months ended September 30, 2018 . We will continue to refine our estimates throughout the measurement period, which will not extend beyond December 22, 2018. The U.S. federal tax rate reduction was effective as of January 1, 2018. As a June 30 fiscal year-end taxpayer, our fiscal 2018 U.S. federal statutory tax rate was a blended rate of 28.1 percent . Our U.S. federal statutory tax rate is 21.0 percent in fiscal 2019. During the three months ended September 30, 2018 , we revised our estimate of the toll tax charge primarily related to regulations issued by the U.S. Treasury and the Internal Revenue Service during the quarter. The adjustment resulted in an additional $1.0 million charge, increasing the total toll tax charge to $81.9 million as of September 30, 2018 . We estimate a cash payment of $4.5 million associated with the toll charge, which will be paid over a period of eight years. The toll tax charge, in addition to the revaluation of U.S. net deferred taxes, is preliminary and subject to finalization of our 2018 U.S. federal income tax return, applying any additional regulatory guidance issued after September 30, 2018 and changes in the interpretations and assumptions of existing guidance. We consider substantially all of the unremitted earnings of our non-U.S. subsidiaries to be permanently reinvested. As a result of TCJA, we are in the process of re-evaluating our permanent reinvestment assertion in certain jurisdictions. The unremitted earnings and profits of our non-U.S. subsidiaries and affiliates have been subject to U.S. federal income tax, but may remain subject to foreign currency adjustments and state and foreign taxes if repatriated. In accordance with SAB 118, we expect to complete our evaluation by December 22, 2018. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share is computed using the weighted average number of shares outstanding during the period, while diluted earnings per share is calculated to reflect the potential dilution that would occur related to the issuance of capital stock under stock option grants, performance awards and restricted stock units. The difference between basic and diluted earnings per share relates solely to the effect of capital stock options, performance awards and restricted stock units. For purposes of determining the number of diluted shares outstanding, weighted average shares outstanding for basic earnings per share calculations were increased by 1.1 million shares for the three months ended September 30, 2018 and 2017 due solely to the dilutive effect of unexercised capital stock options, unvested performance awards and unvested restricted stock units. Unexercised capital stock options, performance awards and restricted stock units of 0.3 million and 0.8 million shares for the three months ended September 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. |
Equity
Equity | 3 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
EQUITY | EQUITY A summary of the changes in the carrying amounts of total equity, Kennametal Shareholders’ equity and equity attributable to noncontrolling interests as of September 30, 2018 and 2017 is as follows: Kennametal Shareholders’ Equity (in thousands) Capital Additional Retained Accumulated Non- Total equity Balance as of June 30, 2018 $ 102,058 $ 511,909 $ 900,683 $ (320,325 ) $ 36,002 $ 1,230,327 Net income — — 56,699 — 1,725 58,424 Other comprehensive income — — — (13,008 ) (1,232 ) (14,240 ) Dividend reinvestment 2 52 — — — 54 Capital stock issued under employee benefit and stock plans (3) 557 5,440 — — — 5,997 Purchase of capital stock (2 ) (52 ) — — — (54 ) Cash dividends — — (16,399 ) — — (16,399 ) Balance as of September 30, 2018 $ 102,615 $ 517,349 $ 940,983 $ (333,333 ) $ 36,495 $ 1,264,109 Kennametal Shareholders’ Equity (in thousands) Capital stock Additional paid-in capital Retained earnings Accumulated Non- controlling interests Total equity Balance as of June 30, 2017 $ 100,832 $ 474,547 $ 765,607 $ (323,692 ) $ 35,359 $ 1,052,653 Net income — — 39,183 — 455 39,638 Other comprehensive (loss) income — — — 19,175 284 19,459 Dividend reinvestment 2 53 — — — 55 Capital stock issued under employee benefit and stock plans (3) 376 2,143 — — — 2,519 Purchase of capital stock (2 ) (53 ) — — — (55 ) Cash dividends — — (16,191 ) — — (16,191 ) Balance as of September 30, 2017 $ 101,208 $ 476,690 $ 788,599 $ (304,517 ) $ 36,098 $ 1,098,078 (3) Net of restricted stock units delivered upon vesting to satisfy tax withholding requirements. The amounts of comprehensive income attributable to Kennametal Shareholders and noncontrolling interests are disclosed in the condensed consolidated statements of comprehensive income. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS The components of, and changes in, accumulated other comprehensive loss (AOCL) were as follows, net of tax, for the three months ended September 30, 2018 : (in thousands) Postretirement benefit plans Currency translation adjustment Derivatives Total Attributable to Kennametal: Balance, June 30, 2018 $ (187,755 ) $ (127,347 ) $ (5,223 ) $ (320,325 ) Other comprehensive income (loss) before reclassifications 318 (14,971 ) (262 ) (14,915 ) Amounts reclassified from AOCL 1,312 — 595 1,907 Net current period other comprehensive income (loss) 1,630 (14,971 ) 333 (13,008 ) AOCL, September 30, 2018 $ (186,125 ) $ (142,318 ) $ (4,890 ) $ (333,333 ) Attributable to noncontrolling interests: Balance, June 30, 2018 $ — $ (2,913 ) $ — $ (2,913 ) Other comprehensive loss before reclassifications — (1,232 ) — (1,232 ) Net current period other comprehensive loss — (1,232 ) — (1,232 ) AOCL, September 30, 2018 $ — $ (4,145 ) $ — $ (4,145 ) The components of, and changes in, AOCL were as follows, net of tax, for the three months ended September 30, 2017 : (in thousands) Postretirement benefit plans Currency translation adjustment Derivatives Total Attributable to Kennametal: Balance, June 30, 2017 $ (189,038 ) $ (126,606 ) $ (8,048 ) $ (323,692 ) Other comprehensive income (loss) before reclassifications (1,965 ) 19,584 (619 ) 17,000 Amounts reclassified from AOCL 1,779 — 396 2,175 Net current period other comprehensive income (loss) (186 ) 19,584 (223 ) 19,175 AOCL, September 30, 2017 $ (189,224 ) $ (107,022 ) $ (8,271 ) $ (304,517 ) Attributable to noncontrolling interests: Balance, June 30, 2017 $ — $ (2,164 ) $ — $ (2,164 ) Other comprehensive income before reclassifications — 284 — 284 Net current period other comprehensive income — 284 — 284 AOCL, September 30, 2017 $ — $ (1,880 ) $ — $ (1,880 ) Reclassifications out of AOCL for the three months ended September 30, 2018 and 2017 consisted of the following: Three Months Ended September 30, (in thousands) 2018 2017 Affected line item in the Income Statement Gains and losses on cash flow hedges: Forward starting interest rate swaps $ 588 $ 566 Interest expense Currency exchange contracts 200 (170 ) Other income, net Total before tax 788 396 Tax impact (193 ) — Provision for income taxes Net of tax $ 595 $ 396 Postretirement benefit plans: Amortization of transition obligations $ 23 $ 23 Other income, net Amortization of prior service (credit) cost (27 ) 167 Other income, net Recognition of actuarial losses 1,757 1,780 Other income, net Total before tax 1,753 1,970 Tax impact (441 ) (191 ) Provision for income taxes Net of tax $ 1,312 $ 1,779 The amount of income tax allocated to each component of other comprehensive income for the three months ended September 30, 2018 and 2017 were as follows: 2018 2017 (in thousands) Pre-tax Tax impact Net of tax Pre-tax Tax impact Net of tax Unrealized loss on derivatives designated and qualified as cash flow hedges $ (347 ) $ 85 $ (262 ) $ (619 ) $ — $ (619 ) Reclassification of unrealized loss on derivatives designated and qualified as cash flow hedges 788 (193 ) 595 396 — 396 Unrecognized net pension and other postretirement benefit gain (loss) 412 (94 ) 318 (2,600 ) 635 (1,965 ) Reclassification of net pension and other postretirement benefit loss 1,753 (441 ) 1,312 1,970 (191 ) 1,779 Foreign currency translation adjustments (16,270 ) 67 (16,203 ) 20,445 (577 ) 19,868 Other comprehensive (loss) income $ (13,664 ) $ (576 ) $ (14,240 ) $ 19,592 $ (133 ) $ 19,459 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [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 carrying amounts, is as follows: (in thousands) Industrial Widia Infrastructure Total 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 Activity for the three months ended September 30, 2018: Change in gross goodwill due to translation (570 ) (388 ) — (958 ) Gross goodwill 410,888 40,798 633,211 1,084,897 Accumulated impairment losses (137,204 ) (13,638 ) (633,211 ) (784,053 ) Balance as of September 30, 2018 $ 273,684 $ 27,160 $ — $ 300,844 The components of our other intangible assets were as follows: Estimated Useful Life (in years) September 30, 2018 June 30, 2018 (in thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Contract-based 3 to 15 $ 7,063 $ (7,045 ) $ 7,061 $ (7,036 ) Technology-based and other 4 to 20 46,593 (31,213 ) 46,666 (30,923 ) Customer-related 10 to 21 205,558 (87,484 ) 206,162 (85,301 ) Unpatented technology 10 to 30 31,697 (13,644 ) 31,854 (13,096 ) Trademarks 5 to 20 12,428 (9,027 ) 12,450 (8,978 ) Trademarks Indefinite 17,551 — 17,609 — Total $ 320,890 $ (148,413 ) $ 321,802 $ (145,334 ) |
Segment Data
Segment Data | 3 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT DATA | SEGMENT DATA Our reportable operating segments have been determined in accordance with our internal management structure, which is organized based on operating activities, the manner in which we organize segments for making operating decisions and assessing performance and the availability of separate financial results. We do not allocate certain corporate expenses related to, among other things, executive retirement plans, our Board of Directors and strategic initiatives to our reportable operating segments. These costs are instead reported in Corporate. None of our three reportable operating segments represent the aggregation of two or more operating segments. The Industrial segment generally serves customers that operate in industrial end markets such as transportation, general engineering, aerospace and defense market sectors, as well as the machine tool industry, delivering high performance metalworking tools for specified purposes. Our customers in these end markets use our products and services in the manufacture of engines, airframes, automobiles, trucks, ships and other various types of industrial equipment. The technology and customization requirements we provide vary by customer, application and industry. Industrial goes to market under the Kennametal ® brand through its direct sales force, a network of independent and national chain distributors, integrated supplier channels and via the internet. Application engineers and technicians are critical to the sales process and directly assist our customers with specified product design, selection, application and support. The Widia segment offers a focused assortment of standard custom metal cutting solutions to general engineering, aerospace, energy and transportation customers. We serve our customers primarily through a network of value added resellers, integrated supplier channels and via the internet. Widia markets its products under the WIDIA ® , WIDIA Hanita ® and WIDIA GTD ® brands. The Infrastructure segment generally serves customers that operate in the energy and earthworks market sectors that support primary industries such as oil and gas, power generation and chemicals; underground, surface and hard-rock mining; highway construction and road maintenance; and process industries such as food and feed. Our success is determined by our ability to gain an in-depth understanding of our customers’ engineering and development needs, and to provide complete system solutions and high-performance capabilities to optimize and add value to their operations. Infrastructure markets its products primarily under the Kennametal ® brand and sells through a direct sales force as well as distributors. Our sales and operating income (loss) by segment are as follows: Three Months Ended September 30, (in thousands) 2018 2017 Sales: Industrial $ 320,559 $ 297,464 Widia 48,672 45,243 Infrastructure 217,456 199,747 Total sales $ 586,687 $ 542,454 Operating income (loss): Industrial $ 58,542 $ 32,039 Widia 2,093 (320 ) Infrastructure 23,860 20,390 Corporate (1,343 ) 62 Total operating income 83,152 52,171 Interest expense 8,097 7,149 Other income, net (2,761 ) (4,218 ) Income from continuing operations before income taxes $ 77,816 $ 49,240 The following table presents Kennametal's revenue disaggregated by geography: Three Months Ended September 30, 2018 September 30, 2017 (in thousands) Industrial Widia Infrastructure Total Kennametal Industrial Widia Infrastructure Total Kennametal Americas 39% 45% 65% 49% 39% 48% 63% 48% EMEA 40 24 15 29 41 24 17 31 Asia Pacific 21 31 20 22 20 28 20 21 The following tables presents Kennametal's revenue disaggregated by end market: Three Months Ended September 30, 2018 (in thousands) Industrial Widia Infrastructure Total Kennametal General engineering 43% 100% 32% 44% Transportation 35 — — 19 Aerospace and defense 13 — — 7 Energy 9 — 34 17 Earthworks — — 34 13 Three Months Ended September 30, 2017 (in thousands) Industrial Widia Infrastructure Total Kennametal General engineering 42% 100% 32% 43% Transportation 37 — — 20 Aerospace and defense 12 — — 7 Energy 9 — 31 16 Earthworks — — 37 14 |
Supplemental Cash Flow Disclo_2
Supplemental Cash Flow Disclosures (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Disclosures | Three Months Ended September 30, (in thousands) 2018 2017 Cash paid during the period for: Interest $ 9,966 $ 7,060 Income taxes 9,911 8,627 Supplemental disclosure of non-cash information: Changes in accounts payable related to purchases of property, plant and equipment (3,200 ) 8,300 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial instruments at fair value on recurring basis | As of September 30, 2018 , the fair values of the Company’s financial assets and financial liabilities are categorized as follows: (in thousands) Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 433 $ — $ 433 Total assets at fair value $ — $ 433 $ — $ 433 Liabilities: Derivatives (1) $ — $ 287 $ — $ 287 Total liabilities at fair value $ — $ 287 $ — $ 287 As of June 30, 2018 , the fair values of the Company’s financial assets and financial liabilities are categorized as follows: (in thousands) Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 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 (1) Currency derivatives are valued based on observable market spot and forward rates and are classified within Level 2 of the fair value hierarchy. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair value of derivatives | The fair value of derivatives designated and not designated as hedging instruments in the condensed consolidated balance sheet are as follows: (in thousands) September 30, June 30, Derivatives designated as hedging instruments Other current assets - range forward contracts $ 406 $ 799 Other current liabilities - range forward contracts — (5 ) Other assets - range forward contracts 27 27 Total derivatives designated as hedging instruments 433 821 Derivatives not designated as hedging instruments Other current assets - currency forward contracts — 839 Other current liabilities - currency forward contracts (287 ) (202 ) Total derivatives not designated as hedging instruments (287 ) 637 Total derivatives $ 146 $ 1,458 |
(Gains) losses related to derivatives not designated as hedging instruments | Gains (losses) related to derivatives not designated as hedging instruments have been recognized as follows: Three Months Ended September 30, (in thousands) 2018 2017 Other income, net - currency forward contracts $ 78 $ (116 ) |
Gains and losses related to cash flow hedges | The following represents losses related to cash flow hedges: Three Months Ended September 30, (in thousands) 2018 2017 Losses recognized in other comprehensive (loss) income, net $ (262 ) $ (619 ) Losses reclassified from accumulated other comprehensive loss into other income, net $ 532 $ 392 |
Net investment hedges | As of September 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 € 27,527 $ 31,891 June 26, 2022 Foreign currency-denominated intercompany loan payable 8,728 10,112 November 20, 2018 Foreign currency-denominated intercompany loan payable 2,019 2,339 October 11, 2019 (2) Includes principal and accrued interest. |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring Reserve by Type of Cost | As of September 30, 2018 , the total restructuring accrual is recorded in other current liabilities in our condensed consolidated balance sheet. As of June 30, 2018 , $17.5 million and $0.1 million of the restructuring accrual is recorded in other current liabilities and other liabilities, respectively. The amount attributable to each segment is as follows: (in thousands) June 30, 2018 Expense Asset Write-Down Translation Cash Expenditures September 30, 2018 Industrial Severance $ 7,967 $ 186 $ — $ (8 ) $ (499 ) $ 7,646 Facilities — (9 ) 9 — — — Other — 8 — — 2 10 Total Industrial $ 7,967 $ 185 $ 9 $ (8 ) $ (497 ) $ 7,656 Widia Severance $ 2,087 $ 38 $ — $ (2 ) $ (103 ) $ 2,020 Facilities — — — — — — Other 15 2 — — 1 18 Total Widia $ 2,102 $ 40 $ — $ (2 ) $ (102 ) $ 2,038 Infrastructure Severance $ 7,558 $ 1,085 $ — $ (47 ) $ (2,911 ) $ 5,685 Facilities — (279 ) 279 — — — Other 12 44 — (1 ) 17 72 Total Infrastructure $ 7,570 $ 850 $ 279 $ (48 ) $ (2,894 ) $ 5,757 Total $ 17,639 $ 1,075 $ 288 $ (58 ) $ (3,493 ) $ 15,451 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Changes in stock options | Changes in our stock options for the three months ended September 30, 2018 were as follows: Options Weighted Average Exercise Price Weighted Average Remaining Life (years) Aggregate Intrinsic value (in thousands) Options outstanding, June 30, 2018 989,992 $ 33.08 Exercised (107,880 ) 29.45 Options outstanding, September 30, 2018 882,112 $ 33.53 4.9 $ 9,066 Options vested and expected to vest, September 30, 2018 882,112 $ 33.53 4.9 $ 9,066 Options exercisable, September 30, 2018 834,539 $ 34.35 4.7 $ 7,907 |
Changes in time vesting and performance vesting restricted stock units | Changes in our performance vesting and time vesting restricted stock units for the three months ended September 30, 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, 2018 409,297 $ 31.22 1,083,675 $ 30.47 Granted 147,769 37.74 419,069 37.79 Vested (36,394 ) 31.13 (425,891 ) 31.73 Performance metric adjustments, net 41,196 29.06 — — Forfeited (44,179 ) 31.04 (15,418 ) 32.21 Unvested, September 30, 2018 517,689 $ 32.93 1,061,435 $ 32.85 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Net periodic pension (income) | The table below summarizes the components of net periodic pension income: Three Months Ended September 30, (in thousands) 2018 2017 Service cost $ 411 $ 404 Interest cost 7,990 7,657 Expected return on plan assets (13,462 ) (14,090 ) Amortization of transition obligation 23 23 Amortization of prior service (credit) cost (5 ) 173 Recognition of actuarial losses 1,695 1,710 Net periodic pension income $ (3,348 ) $ (4,123 ) |
Other Postretirement Benefits Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Net periodic pension (income) | The table below summarizes the components of net periodic other postretirement benefit cost: Three Months Ended September 30, (in thousands) 2018 2017 Interest cost $ 153 $ 157 Amortization of prior service credit (22 ) (6 ) Recognition of actuarial loss 62 70 Net periodic other postretirement benefit cost $ 193 $ 221 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following: (in thousands) September 30, 2018 June 30, 2018 Finished goods $ 299,121 $ 279,240 Work in process and powder blends 251,322 232,973 Raw materials 102,339 96,859 Inventories at current cost 652,782 609,072 Less: LIFO valuation (83,530 ) (83,606 ) Total inventories $ 569,252 $ 525,466 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Summary of the changes in the carrying amounts of total equity, Kennametal shareholders' equity and equity attributable to noncontrolling interests | A summary of the changes in the carrying amounts of total equity, Kennametal Shareholders’ equity and equity attributable to noncontrolling interests as of September 30, 2018 and 2017 is as follows: Kennametal Shareholders’ Equity (in thousands) Capital Additional Retained Accumulated Non- Total equity Balance as of June 30, 2018 $ 102,058 $ 511,909 $ 900,683 $ (320,325 ) $ 36,002 $ 1,230,327 Net income — — 56,699 — 1,725 58,424 Other comprehensive income — — — (13,008 ) (1,232 ) (14,240 ) Dividend reinvestment 2 52 — — — 54 Capital stock issued under employee benefit and stock plans (3) 557 5,440 — — — 5,997 Purchase of capital stock (2 ) (52 ) — — — (54 ) Cash dividends — — (16,399 ) — — (16,399 ) Balance as of September 30, 2018 $ 102,615 $ 517,349 $ 940,983 $ (333,333 ) $ 36,495 $ 1,264,109 Kennametal Shareholders’ Equity (in thousands) Capital stock Additional paid-in capital Retained earnings Accumulated Non- controlling interests Total equity Balance as of June 30, 2017 $ 100,832 $ 474,547 $ 765,607 $ (323,692 ) $ 35,359 $ 1,052,653 Net income — — 39,183 — 455 39,638 Other comprehensive (loss) income — — — 19,175 284 19,459 Dividend reinvestment 2 53 — — — 55 Capital stock issued under employee benefit and stock plans (3) 376 2,143 — — — 2,519 Purchase of capital stock (2 ) (53 ) — — — (55 ) Cash dividends — — (16,191 ) — — (16,191 ) Balance as of September 30, 2017 $ 101,208 $ 476,690 $ 788,599 $ (304,517 ) $ 36,098 $ 1,098,078 (3) Net of restricted stock units delivered upon vesting to satisfy tax withholding requirements. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of, and changes in accumulated other comprehensive loss | The components of, and changes in, accumulated other comprehensive loss (AOCL) were as follows, net of tax, for the three months ended September 30, 2018 : (in thousands) Postretirement benefit plans Currency translation adjustment Derivatives Total Attributable to Kennametal: Balance, June 30, 2018 $ (187,755 ) $ (127,347 ) $ (5,223 ) $ (320,325 ) Other comprehensive income (loss) before reclassifications 318 (14,971 ) (262 ) (14,915 ) Amounts reclassified from AOCL 1,312 — 595 1,907 Net current period other comprehensive income (loss) 1,630 (14,971 ) 333 (13,008 ) AOCL, September 30, 2018 $ (186,125 ) $ (142,318 ) $ (4,890 ) $ (333,333 ) Attributable to noncontrolling interests: Balance, June 30, 2018 $ — $ (2,913 ) $ — $ (2,913 ) Other comprehensive loss before reclassifications — (1,232 ) — (1,232 ) Net current period other comprehensive loss — (1,232 ) — (1,232 ) AOCL, September 30, 2018 $ — $ (4,145 ) $ — $ (4,145 ) The components of, and changes in, AOCL were as follows, net of tax, for the three months ended September 30, 2017 : (in thousands) Postretirement benefit plans Currency translation adjustment Derivatives Total Attributable to Kennametal: Balance, June 30, 2017 $ (189,038 ) $ (126,606 ) $ (8,048 ) $ (323,692 ) Other comprehensive income (loss) before reclassifications (1,965 ) 19,584 (619 ) 17,000 Amounts reclassified from AOCL 1,779 — 396 2,175 Net current period other comprehensive income (loss) (186 ) 19,584 (223 ) 19,175 AOCL, September 30, 2017 $ (189,224 ) $ (107,022 ) $ (8,271 ) $ (304,517 ) Attributable to noncontrolling interests: Balance, June 30, 2017 $ — $ (2,164 ) $ — $ (2,164 ) Other comprehensive income before reclassifications — 284 — 284 Net current period other comprehensive income — 284 — 284 AOCL, September 30, 2017 $ — $ (1,880 ) $ — $ (1,880 ) |
Reclassification out of Accumulated Other Comprehensive Loss | Reclassifications out of AOCL for the three months ended September 30, 2018 and 2017 consisted of the following: Three Months Ended September 30, (in thousands) 2018 2017 Affected line item in the Income Statement Gains and losses on cash flow hedges: Forward starting interest rate swaps $ 588 $ 566 Interest expense Currency exchange contracts 200 (170 ) Other income, net Total before tax 788 396 Tax impact (193 ) — Provision for income taxes Net of tax $ 595 $ 396 Postretirement benefit plans: Amortization of transition obligations $ 23 $ 23 Other income, net Amortization of prior service (credit) cost (27 ) 167 Other income, net Recognition of actuarial losses 1,757 1,780 Other income, net Total before tax 1,753 1,970 Tax impact (441 ) (191 ) Provision for income taxes Net of tax $ 1,312 $ 1,779 |
Income Tax Allocated to Each Component of Other Comprehensive Income [Table Text Block] | The amount of income tax allocated to each component of other comprehensive income for the three months ended September 30, 2018 and 2017 were as follows: 2018 2017 (in thousands) Pre-tax Tax impact Net of tax Pre-tax Tax impact Net of tax Unrealized loss on derivatives designated and qualified as cash flow hedges $ (347 ) $ 85 $ (262 ) $ (619 ) $ — $ (619 ) Reclassification of unrealized loss on derivatives designated and qualified as cash flow hedges 788 (193 ) 595 396 — 396 Unrecognized net pension and other postretirement benefit gain (loss) 412 (94 ) 318 (2,600 ) 635 (1,965 ) Reclassification of net pension and other postretirement benefit loss 1,753 (441 ) 1,312 1,970 (191 ) 1,779 Foreign currency translation adjustments (16,270 ) 67 (16,203 ) 20,445 (577 ) 19,868 Other comprehensive (loss) income $ (13,664 ) $ (576 ) $ (14,240 ) $ 19,592 $ (133 ) $ 19,459 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
The carrying amount of goodwill | A summary of the carrying amount of goodwill attributable to each segment, as well as the changes in such carrying amounts, is as follows: (in thousands) Industrial Widia Infrastructure Total 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 Activity for the three months ended September 30, 2018: Change in gross goodwill due to translation (570 ) (388 ) — (958 ) Gross goodwill 410,888 40,798 633,211 1,084,897 Accumulated impairment losses (137,204 ) (13,638 ) (633,211 ) (784,053 ) Balance as of September 30, 2018 $ 273,684 $ 27,160 $ — $ 300,844 |
The components of intangible assets | The components of our other intangible assets were as follows: Estimated Useful Life (in years) September 30, 2018 June 30, 2018 (in thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Contract-based 3 to 15 $ 7,063 $ (7,045 ) $ 7,061 $ (7,036 ) Technology-based and other 4 to 20 46,593 (31,213 ) 46,666 (30,923 ) Customer-related 10 to 21 205,558 (87,484 ) 206,162 (85,301 ) Unpatented technology 10 to 30 31,697 (13,644 ) 31,854 (13,096 ) Trademarks 5 to 20 12,428 (9,027 ) 12,450 (8,978 ) Trademarks Indefinite 17,551 — 17,609 — Total $ 320,890 $ (148,413 ) $ 321,802 $ (145,334 ) |
Segment Data (Tables)
Segment Data (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue [Table Text Block] | The following table presents Kennametal's revenue disaggregated by geography: Three Months Ended September 30, 2018 September 30, 2017 (in thousands) Industrial Widia Infrastructure Total Kennametal Industrial Widia Infrastructure Total Kennametal Americas 39% 45% 65% 49% 39% 48% 63% 48% EMEA 40 24 15 29 41 24 17 31 Asia Pacific 21 31 20 22 20 28 20 21 The following tables presents Kennametal's revenue disaggregated by end market: Three Months Ended September 30, 2018 (in thousands) Industrial Widia Infrastructure Total Kennametal General engineering 43% 100% 32% 44% Transportation 35 — — 19 Aerospace and defense 13 — — 7 Energy 9 — 34 17 Earthworks — — 34 13 Three Months Ended September 30, 2017 (in thousands) Industrial Widia Infrastructure Total Kennametal General engineering 42% 100% 32% 43% Transportation 37 — — 20 Aerospace and defense 12 — — 7 Energy 9 — 31 16 Earthworks — — 37 14 |
Sales and operating income (loss) by segment and segment assets | Our sales and operating income (loss) by segment are as follows: Three Months Ended September 30, (in thousands) 2018 2017 Sales: Industrial $ 320,559 $ 297,464 Widia 48,672 45,243 Infrastructure 217,456 199,747 Total sales $ 586,687 $ 542,454 Operating income (loss): Industrial $ 58,542 $ 32,039 Widia 2,093 (320 ) Infrastructure 23,860 20,390 Corporate (1,343 ) 62 Total operating income 83,152 52,171 Interest expense 8,097 7,149 Other income, net (2,761 ) (4,218 ) Income from continuing operations before income taxes $ 77,816 $ 49,240 |
Segment Data Disaggregation of
Segment Data Disaggregation of Revenue (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue [Table Text Block] | The following table presents Kennametal's revenue disaggregated by geography: Three Months Ended September 30, 2018 September 30, 2017 (in thousands) Industrial Widia Infrastructure Total Kennametal Industrial Widia Infrastructure Total Kennametal Americas 39% 45% 65% 49% 39% 48% 63% 48% EMEA 40 24 15 29 41 24 17 31 Asia Pacific 21 31 20 22 20 28 20 21 The following tables presents Kennametal's revenue disaggregated by end market: Three Months Ended September 30, 2018 (in thousands) Industrial Widia Infrastructure Total Kennametal General engineering 43% 100% 32% 44% Transportation 35 — — 19 Aerospace and defense 13 — — 7 Energy 9 — 34 17 Earthworks — — 34 13 Three Months Ended September 30, 2017 (in thousands) Industrial Widia Infrastructure Total Kennametal General engineering 42% 100% 32% 43% Transportation 37 — — 20 Aerospace and defense 12 — — 7 Energy 9 — 31 16 Earthworks — — 37 14 |
Revenue Recognition Details (De
Revenue Recognition Details (Details) | 3 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Payment terms, minimum | 30 |
Payment terms, maximum | 90 |
Supplemental Cash Flow Disclo_3
Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Mar. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | ||||
Increase/decrease to net operating cash flow and net investing cash flow due to revisions to AP and PP&E | $ (19,800) | $ (25,700) | $ (22,700) | |
Interest | $ 9,966 | 7,060 | ||
Income taxes | 9,911 | 8,627 | ||
Change in accounts payable related to property, plant, and equipment | $ (3,200) | $ 8,300 | $ 14,200 | $ 11,200 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives Assets | $ 433 | $ 1,665 |
Total assets at fair value | 433 | 1,665 |
Derivatives Liabilities | 287 | 207 |
Total liabilities at fair value | 287 | 207 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives Assets | 433 | 1,665 |
Total assets at fair value | 433 | 1,665 |
Derivatives Liabilities | 287 | 207 |
Total liabilities at fair value | 287 | 207 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total liabilities at fair value | $ 0 | $ 0 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Fair Value of Derivatives Designated and Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 |
Fair value of derivatives | ||
Derivative, Fair Value, Net | $ 146 | $ 1,458 |
Designated as Hedging Instrument [Member] | ||
Fair value of derivatives | ||
Derivative, Fair Value, Net | 433 | 821 |
Not Designated as Hedging Instrument [Member] | ||
Fair value of derivatives | ||
Derivative, Fair Value, Net | (287) | 637 |
Range Forward Contracts [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ||
Fair value of derivatives | ||
Derivative assets designated as hedging instruments | 406 | 799 |
Range Forward Contracts [Member] | Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||
Fair value of derivatives | ||
Derivative liabilities designated as hedging instruments | 0 | (5) |
Range Forward Contracts [Member] | Designated as Hedging Instrument [Member] | Other Assets [Member] | ||
Fair value of derivatives | ||
Derivative assets designated as hedging instruments | 27 | 27 |
Currency Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ||
Fair value of derivatives | ||
Derivative assets designated as hedging instruments | 0 | 839 |
Currency Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||
Fair value of derivatives | ||
Derivative liabilities designated as hedging instruments | $ (287) | $ (202) |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Gains and Losses Related to Derivatives Not Designated as Hedging Instruments and to Cash Flow Hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Gains and losses related to cash flow hedges | ||
Losses recognized in other comprehensive (loss) income, net | $ (347) | $ (619) |
Net Investment Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Loss on Derivative Used in Net Investment Hedge, Net of Tax | 100 | (1,300) |
Currency Forward Contracts [Member] | Other Expense Income Net [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative Instruments, (Gain) Loss Recognized in Income, Net | ||
Other income, net - currency forward contracts | 78 | (116) |
Range Forward Contracts [Member] | Cash flow hedging [Member] | ||
Gains and losses related to cash flow hedges | ||
Losses recognized in other comprehensive (loss) income, net | (262) | (619) |
Losses reclassified from accumulated other comprehensive loss into other income, net | $ 532 | $ 392 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities (Details Textual) € in Thousands, $ in Thousands | 3 Months Ended | ||||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018EUR (€) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | |
Derivative Instruments and Hedging Activities (Textual) [Abstract] | |||||
Recognize income on outstanding derivatives in the next 12 months | $ 200 | ||||
Gains or losses recognized in earnings due to ineffectiveness and excluded from effectiveness testing | $ 0 | ||||
Cash Flow Hedging [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, Notional Amount | 60,200 | $ 62,900 | |||
Net Investment Hedging [Member] | |||||
Additional Derivative Instruments and Hedging Activities (Textual) [Abstract] | |||||
Derivative, Amount of Hedged Item | € | € 33,000 | ||||
Net Investment Hedge Maturing on June 26, 2022 [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, Notional Amount | 27,527 | 31,891 | |||
Net Investment Hedge Maturing on November 20, 2018 [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, Notional Amount | 8,728 | 10,112 | |||
Net Investment Hedge Maturing on October 11, 2019 [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, Notional Amount | € 2,019 | $ 2,339 | |||
Net Investment Hedging [Member] | |||||
Additional Derivative Instruments and Hedging Activities (Textual) [Abstract] | |||||
(Gain) Loss on Derivative Used in Net Investment Hedge, Net of Tax | $ (100) | $ 1,300 |
Restructuring and Related Cha_2
Restructuring and Related Charges - Restructuring Accrual (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Restructuring Reserve [Abstract] | ||
Beginning Balance | $ 17,639 | |
Restructuring Charges | 1,075 | $ 5,500 |
Asset Write-Down | 288 | |
Translation | (58) | |
Cash Expenditures | (3,493) | |
Ending Balance | 15,451 | |
Industrial [Member] | ||
Restructuring Reserve [Abstract] | ||
Beginning Balance | 7,967 | |
Restructuring Charges | 185 | |
Asset Write-Down | 9 | |
Translation | (8) | |
Cash Expenditures | (497) | |
Ending Balance | 7,656 | |
Industrial [Member] | Severance [Member] | ||
Restructuring Reserve [Abstract] | ||
Beginning Balance | 7,967 | |
Restructuring Charges | 186 | |
Asset Write-Down | 0 | |
Translation | (8) | |
Cash Expenditures | (499) | |
Ending Balance | 7,646 | |
Industrial [Member] | Facilities [Member] | ||
Restructuring Reserve [Abstract] | ||
Beginning Balance | 0 | |
Restructuring Charges | (9) | |
Asset Write-Down | 9 | |
Translation | 0 | |
Cash Expenditures | 0 | |
Ending Balance | 0 | |
Industrial [Member] | Other Restructuring [Member] | ||
Restructuring Reserve [Abstract] | ||
Beginning Balance | 0 | |
Restructuring Charges | 8 | |
Asset Write-Down | 0 | |
Translation | 0 | |
Cash Expenditures | 2 | |
Ending Balance | 10 | |
WIDIA [Member] | ||
Restructuring Reserve [Abstract] | ||
Beginning Balance | 2,102 | |
Restructuring Charges | 40 | |
Asset Write-Down | 0 | |
Translation | (2) | |
Cash Expenditures | (102) | |
Ending Balance | 2,038 | |
WIDIA [Member] | Severance [Member] | ||
Restructuring Reserve [Abstract] | ||
Beginning Balance | 2,087 | |
Restructuring Charges | 38 | |
Asset Write-Down | 0 | |
Translation | (2) | |
Cash Expenditures | (103) | |
Ending Balance | 2,020 | |
WIDIA [Member] | Facilities [Member] | ||
Restructuring Reserve [Abstract] | ||
Beginning Balance | 0 | |
Restructuring Charges | 0 | |
Asset Write-Down | 0 | |
Translation | 0 | |
Cash Expenditures | 0 | |
Ending Balance | 0 | |
WIDIA [Member] | Other Restructuring [Member] | ||
Restructuring Reserve [Abstract] | ||
Beginning Balance | 15 | |
Restructuring Charges | 2 | |
Asset Write-Down | 0 | |
Translation | 0 | |
Cash Expenditures | 1 | |
Ending Balance | 18 | |
Infrastructure [Member] | ||
Restructuring Reserve [Abstract] | ||
Beginning Balance | 7,570 | |
Restructuring Charges | 850 | |
Asset Write-Down | 279 | |
Translation | (48) | |
Cash Expenditures | (2,894) | |
Ending Balance | 5,757 | |
Infrastructure [Member] | Severance [Member] | ||
Restructuring Reserve [Abstract] | ||
Beginning Balance | 7,558 | |
Restructuring Charges | 1,085 | |
Asset Write-Down | 0 | |
Translation | (47) | |
Cash Expenditures | (2,911) | |
Ending Balance | 5,685 | |
Infrastructure [Member] | Facilities [Member] | ||
Restructuring Reserve [Abstract] | ||
Beginning Balance | 0 | |
Restructuring Charges | (279) | |
Asset Write-Down | 279 | |
Translation | 0 | |
Cash Expenditures | 0 | |
Ending Balance | 0 | |
Infrastructure [Member] | Other Restructuring [Member] | ||
Restructuring Reserve [Abstract] | ||
Beginning Balance | 12 | |
Restructuring Charges | 44 | |
Asset Write-Down | 0 | |
Translation | (1) | |
Cash Expenditures | 17 | |
Ending Balance | $ 72 |
Restructuring and Related Cha_3
Restructuring and Related Charges - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | $ 1,100 | $ 6,900 | |
Restructuring Charges | 1,075 | 5,500 | |
Restructuring Reserve, Current | $ 17,500 | ||
Restructuring Reserve, Noncurrent | $ 100 | ||
Industrial [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 185 | ||
Infrastructure [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 850 | ||
WIDIA [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 40 | ||
Simplification [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Cost Incurred to Date | 11,800 | ||
Cost of Sales [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Related Charges Recorded in Cost of Goods Sold | 1,300 | ||
Operating Expense [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Related Charges Recorded in Cost of Goods Sold | $ 100 | ||
Other Restructuring [Member] | Industrial [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 8 | ||
Other Restructuring [Member] | Infrastructure [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 44 | ||
Other Restructuring [Member] | WIDIA [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $ 2 |
Stock-Based Compensation - Chan
Stock-Based Compensation - Changes in Stock Options (Details) | 3 Months Ended |
Sep. 30, 2018USD ($)$ / sharesshares | |
Changes in stock options | |
Options outstanding, June 30, 2018 | shares | 989,992 |
Options, Exercised | shares | (107,880) |
Options outstanding, September 30, 2018 | shares | 882,112 |
Options vested and expected to vest, September 30, 2018 | shares | 882,112 |
Options exercisable, September 30, 2018 | shares | 834,539 |
Weighted Average Exercise Price, Options outstanding, June 30, 2018 | $ / shares | $ 33.08 |
Weighted Average Exercise Price, Exercised | $ / shares | 29.45 |
Weighted Average Exercise Price, Options outstanding, September 30, 2018 | $ / shares | 33.53 |
Weighted Average Exercise Price, Option vested and expected to vest, September 30, 2018 | $ / shares | 33.53 |
Weighted Average Exercise Price, Options exercisable, September 30, 2018 | $ / shares | $ 34.35 |
Weighted Average Remaining Life, Options outstanding, September 30, 2018 | 4 years 11 months |
Weighted Average Remaining Life, Options vested and expected to vest, September 30, 2018 | 4 years 11 months |
Weighted Average Remaining Life, Options exercisable, September 30, 2018 | 4 years 8 months |
Aggregate Intrinsic value, Options outstanding, September 30, 2018 | $ | $ 9,066,000 |
Aggregate Intrinsic Value, Options vested and expected to vest, September 30, 2018 | $ | 9,066,000 |
Aggregate Intrinsic Value, Options exercisable, September 30, 2018 | $ | $ 7,907,000 |
Stock-Based Compensation - Ch_2
Stock-Based Compensation - Changes in Restricted Stock Units (Details) | 3 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Restricted Stock Units - Performance Vesting [Member] | |
Changes in restricted stock awards | |
Unvested restricted stock awards, June 30, 2018, Shares | shares | 409,297 |
Granted, Shares | shares | 147,769 |
Vested, Shares | shares | (36,394) |
Performance metric adjustments, net, Shares | shares | 41,196 |
Forfeited, Shares | shares | (44,179) |
Unvested restricted stock awards, September 30, 2018 | shares | 517,689 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares | $ 31.04 |
Weighted Average Fair Value, Unvested restricted stock awards, June 30, 2018 | $ / shares | 31.22 |
Weighted Average Fair Value, Granted | $ / shares | 37.74 |
Weighted Average Fair Value, Vested | $ / shares | 31.13 |
Weighted Average Fair Value, Performance Metric Not Achieved | $ / shares | 29.06 |
Weighted Average Fair Value, Unvested restricted stock awards, September 30, 2018 | $ / shares | $ 32.93 |
Restricted Stock Units - Time Vesting [Member] | |
Changes in restricted stock awards | |
Unvested restricted stock awards, June 30, 2018, Shares | shares | 1,083,675 |
Granted, Shares | shares | 419,069 |
Vested, Shares | shares | (425,891) |
Performance metric adjustments, net, Shares | shares | 0 |
Forfeited, Shares | shares | (15,418) |
Unvested restricted stock awards, September 30, 2018 | shares | 1,061,435 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares | $ 32.21 |
Weighted Average Fair Value, Unvested restricted stock awards, June 30, 2018 | $ / shares | 30.47 |
Weighted Average Fair Value, Granted | $ / shares | 37.79 |
Weighted Average Fair Value, Vested | $ / shares | 31.73 |
Weighted Average Fair Value, Performance Metric Not Achieved | $ / shares | 0 |
Weighted Average Fair Value, Unvested restricted stock awards, September 30, 2018 | $ / shares | $ 32.85 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Textual) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Stock-Based Compensation (Textual) [Abstract] | ||
Cash received from the exercise of capital stock option | $ 3.1 | |
Stock Option [Member] | ||
Stock-Based Compensation (Textual) [Abstract] | ||
Compensation expense related to time vesting and performance vesting restricted stock units | $ 0.1 | $ 0.2 |
Unrecognized compensation costs, weighted average period | 5 months 20 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 1 | 1.6 |
Restricted Stock Units (RSUs) [Member] | ||
Stock-Based Compensation (Textual) [Abstract] | ||
Compensation expense related to time vesting and performance vesting restricted stock units | 7.8 | $ 6 |
Unrecognized compensation cost | $ 26.1 | |
Unrecognized compensation costs, weighted average period | 2 years 3 months |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits - Components of Net Periodic Pension Income (Details) - Pension plans contribution [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Net periodic pension income | ||
Service cost | $ 411 | $ 404 |
Interest cost | 7,990 | 7,657 |
Expected return on plan assets | (13,462) | (14,090) |
Amortization of transition obligation | 23 | 23 |
Amortization of prior service (credit) cost | (5) | 173 |
Recognition of actuarial losses | 1,695 | 1,710 |
Net periodic pension income | $ (3,348) | $ (4,123) |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits - Components of Net Periodic Other Postretirement Benefit Cost (Details) - Other postretirement benefit plans [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Net periodic other postretirement benefit costs | ||
Interest cost | $ 153 | $ 157 |
Amortization of prior service credit | (22) | (6) |
Recognition of actuarial loss | 62 | 70 |
Net periodic other postretirement benefit cost | $ 193 | $ 221 |
Pension and Other Postretirem_5
Pension and Other Postretirement Benefits Pension and Other Postretirement Benefits - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | $ (3,600) | |
Pension Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan, Service Cost | $ 411 | $ 404 |
Cost of Goods, Total [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | (3,000) | |
Operating Expense [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | $ (1,300) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 |
Inventories | ||
Finished goods | $ 299,121 | $ 279,240 |
Work in process and powder blends | 251,322 | 232,973 |
Raw materials | 102,339 | 96,859 |
Inventories at current cost | 652,782 | 609,072 |
Less: LIFO valuation | (83,530) | (83,606) |
Total inventories | $ 569,252 | $ 525,466 |
Inventories (Textual) [Abstract] | ||
Percentage of inventories valued by using LIFO method | 39.00% | 40.00% |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Millions | Nov. 07, 2012 | Sep. 30, 2018 | Jun. 30, 2018 | Jun. 07, 2018 |
Long-Term Debt (Additional Textual) [Abstract] | ||||
Fixed rate at fair market value | $ 592.2 | $ 996.4 | ||
2018 Credit Agreement [Member] | ||||
Long-Term Debt (Textual) [Abstract] | ||||
Borrowing outstanding under 2018 Credit Agreement | $ 0 | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 700 | |||
2.650% Senior Notes due 2019 [Member] | ||||
Long-Term Debt (Additional Textual) [Abstract] | ||||
Proceeds from Issuance of Senior Long-term Debt | $ 400 | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.65% |
Environmental Matters (Details)
Environmental Matters (Details) $ in Millions | Sep. 30, 2018USD ($) |
Environmental Remediation Obligations [Abstract] | |
Reserves for Environmental Costs | $ 12.6 |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2018USD ($) | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Taxes - Additional Information [Line Items] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 28.10% | |||
Provisional tax expense for the deemed repatriation of undistributed foreign earnings, Increase (decrease) | $ 1 | |||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | 81.9 | |||
Estimated cash payment related to provisional tax expense for the deemed repatriation of undistributed foreign earnings | $ 4.5 | |||
Estimated cash payment related to provisional tax expense for the deemed repatriation of undistributed foreign earnings, payment term, years | 8 | |||
Income Tax (Textual) [Abstract] | ||||
Effective tax rate | 24.90% | 19.50% | ||
Scenario, Forecast [Member] | ||||
Income Taxes - Additional Information [Line Items] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% |
Earnings Per Shares (Details)
Earnings Per Shares (Details) - shares shares in Millions | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share (Textual) [Abstract] | ||
Increase in weighted average shares due to dilutive effect of unexercised capital stock options and unvested restricted stock units | 1.1 | |
Unexercised capital stock options and restricted stock units excluded from computation of diluted EPS | 0.3 | 0.8 |
Equity (Details)
Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Beginning Balance | $ 1,230,327 | $ 1,052,653 |
Net income | 58,424 | 39,638 |
Other comprehensive income (loss) | (14,240) | 19,459 |
Dividend reinvestment | 54 | 55 |
Capital stock issued under employee benefit and stock plans | 5,997 | 2,519 |
Purchase of capital stock | (54) | (55) |
Cash dividends | (16,399) | (16,191) |
Ending Balance | 1,264,109 | 1,098,078 |
Capital stock [Member] | ||
Beginning Balance | 102,058 | 100,832 |
Dividend reinvestment | 2 | 2 |
Capital stock issued under employee benefit and stock plans | 557 | 376 |
Purchase of capital stock | (2) | (2) |
Ending Balance | 102,615 | 101,208 |
Additional paid-in capital [Member] | ||
Beginning Balance | 511,909 | 474,547 |
Dividend reinvestment | 52 | 53 |
Capital stock issued under employee benefit and stock plans | 5,440 | 2,143 |
Purchase of capital stock | (52) | (53) |
Ending Balance | 517,349 | 476,690 |
Retained earnings [Member] | ||
Beginning Balance | 900,683 | 765,607 |
Net income | 56,699 | 39,183 |
Cash dividends | (16,399) | (16,191) |
Ending Balance | 940,983 | 788,599 |
Accumulated other comprehensive loss [Member] | ||
Beginning Balance | (320,325) | (323,692) |
Other comprehensive income (loss) | (13,008) | 19,175 |
Ending Balance | (333,333) | (304,517) |
Non-controlling interest [Member] | ||
Beginning Balance | 36,002 | 35,359 |
Net income | 1,725 | 455 |
Other comprehensive income (loss) | (1,232) | 284 |
Cash dividends | 0 | 0 |
Ending Balance | $ 36,495 | $ 36,098 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Components of and Changes in Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Accumulated Other Comprehensive (Loss) Income [Line Items] | ||
Accumulated Other Comprehensive Loss, Net of Tax | $ (320,325) | $ (323,692) |
Other comprehensive income (loss) before reclassifications | (14,915) | 17,000 |
Amounts reclassified from accumulated other comprehensive loss | 1,907 | 2,175 |
Net current period other comprehensive income (loss) | (13,008) | 19,175 |
Accumulated Other Comprehensive Loss, Net of Tax | (333,333) | (304,517) |
Accumulated Defined Benefit Plans Adjustment [Member] | ||
Accumulated Other Comprehensive (Loss) Income [Line Items] | ||
Accumulated Other Comprehensive Loss, Net of Tax | (187,755) | (189,038) |
Other comprehensive income (loss) before reclassifications | 318 | (1,965) |
Amounts reclassified from accumulated other comprehensive loss | 1,312 | 1,779 |
Net current period other comprehensive income (loss) | 1,630 | (186) |
Accumulated Other Comprehensive Loss, Net of Tax | (186,125) | (189,224) |
Accumulated Currency Translation Adjustment [Member] | ||
Accumulated Other Comprehensive (Loss) Income [Line Items] | ||
Accumulated Other Comprehensive Loss, Net of Tax | (127,347) | (126,606) |
Other comprehensive income (loss) before reclassifications | (14,971) | 19,584 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Net current period other comprehensive income (loss) | (14,971) | 19,584 |
Accumulated Other Comprehensive Loss, Net of Tax | (142,318) | (107,022) |
Accumulated Net (Loss) Gain from Designated or Qualifying Cash Flow Hedges [Member] | ||
Accumulated Other Comprehensive (Loss) Income [Line Items] | ||
Accumulated Other Comprehensive Loss, Net of Tax | (5,223) | (8,048) |
Other comprehensive income (loss) before reclassifications | (262) | (619) |
Amounts reclassified from accumulated other comprehensive loss | 595 | 396 |
Net current period other comprehensive income (loss) | 333 | (223) |
Accumulated Other Comprehensive Loss, Net of Tax | (4,890) | (8,271) |
Noncontrolling Interest [Member] | ||
Accumulated Other Comprehensive (Loss) Income [Line Items] | ||
Accumulated Other Comprehensive Loss, Net of Tax | (2,913) | (2,164) |
Other comprehensive income (loss) before reclassifications | (1,232) | 284 |
Net current period other comprehensive income (loss) | (1,232) | 284 |
Accumulated Other Comprehensive Loss, Net of Tax | (4,145) | (1,880) |
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | ||
Accumulated Other Comprehensive (Loss) Income [Line Items] | ||
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest | (1,753) | (1,970) |
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Accumulated Net (Loss) Gain from Designated or Qualifying Cash Flow Hedges [Member] | ||
Accumulated Other Comprehensive (Loss) Income [Line Items] | ||
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest | $ 788 | $ 396 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items] | ||
Currency exchange contracts | $ 2,761 | $ 4,218 |
Recognition of actuarial losses | 1,753 | 1,970 |
Reclassification of unrealized loss on derivatives designated and qualified as cash flow hedges, tax | (193) | 0 |
Provision for income taxes | 19,392 | 9,602 |
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Accumulated Net (Loss) Gain from Designated or Qualifying Cash Flow Hedges [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items] | ||
Total before tax | (788) | (396) |
Reclassification of unrealized loss on derivatives designated and qualified as cash flow hedges, tax | (193) | 0 |
Net of tax | 595 | 396 |
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items] | ||
Amortization of transition obligations | 23 | 23 |
Amortization of prior service (credit) cost | (27) | 167 |
Recognition of actuarial losses | 1,757 | 1,780 |
Total before tax | 1,753 | 1,970 |
Provision for income taxes | (441) | (191) |
Net of tax | (1,312) | (1,779) |
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Forward Starting Interest Rate Swap Contracts [Member] | Accumulated Net (Loss) Gain from Designated or Qualifying Cash Flow Hedges [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items] | ||
Forward starting interest rate swaps | 588 | 566 |
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Currency Forward Contracts [Member] | Accumulated Net (Loss) Gain from Designated or Qualifying Cash Flow Hedges [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items] | ||
Currency exchange contracts | $ 200 | $ (170) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Loss Other Comprehensive Income - Income Tax Allocated to Each Component (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Other Comprehensive Income - Income Tax Allocated to Each Component [Abstract] | ||
Unrealized loss on derivatives designated and qualified as cash flow hedges, before tax | $ (347) | $ (619) |
Unrealized loss on derivatives designated and qualified as cash flow hedges, tax | 85 | 0 |
Unrealized loss on derivatives designated and qualified as cash flow hedges, net of tax | (262) | (619) |
Reclassification of unrealized loss on derivatives designated and qualified as cash flow hedges, before tax | 788 | 396 |
Reclassification of unrealized loss on derivatives designated and qualified as cash flow hedges, tax | (193) | 0 |
Reclassification of unrealized loss on derivatives designated and qualified as cash flow hedges, net of tax | 595 | 396 |
Unrecognized net pension and other postretirement benefit gain (loss), before tax | 412 | (2,600) |
Unrecognized net pension and other postretirement benefit gain (loss), tax | (94) | 635 |
Unrecognized net pension and other postretirement benefit gain (loss), net of tax | 318 | (1,965) |
Reclassification of net pension and other postretirement benefit loss, before tax | 1,753 | 1,970 |
Reclassification of net pension and other postretirement benefit loss, tax | (441) | (191) |
Reclassification of net pension and other postretirement benefit loss | 1,312 | 1,779 |
Foreign currency translation adjustment, before tax | (16,270) | 20,445 |
Foreign currency translation adjustment, tax | 67 | (577) |
Foreign currency translation adjustment, net of tax | (16,203) | 19,868 |
Other comprehensive (loss) income, before tax | (13,664) | 19,592 |
Other comprehensive (loss) income, tax | (576) | (133) |
Other comprehensive (loss) income, net of tax | $ (14,240) | $ 19,459 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Carrying Amount of Goodwill Attributable to Each Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Jun. 30, 2018 | |
Goodwill [Roll Forward] | ||
Goodwill | $ 1,084,897 | $ 1,085,855 |
Accumulated impairment losses | (784,053) | (784,053) |
Goodwill, Beginning Balance | 301,802 | |
Goodwill, Foreign Currency Translation Gain (Loss) | (958) | |
Goodwill, Ending Balance | 300,844 | |
Industrial [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill | 410,888 | 411,458 |
Accumulated impairment losses | (137,204) | (137,204) |
Goodwill, Beginning Balance | 274,254 | |
Goodwill, Foreign Currency Translation Gain (Loss) | (570) | |
Goodwill, Ending Balance | 273,684 | |
Infrastructure [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill | 633,211 | 633,211 |
Accumulated impairment losses | (633,211) | (633,211) |
Goodwill, Beginning Balance | 0 | |
Goodwill, Foreign Currency Translation Gain (Loss) | 0 | |
Goodwill, Ending Balance | 0 | |
WIDIA [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill | 40,798 | 41,186 |
Accumulated impairment losses | (13,638) | $ (13,638) |
Goodwill, Beginning Balance | 27,548 | |
Goodwill, Foreign Currency Translation Gain (Loss) | (388) | |
Goodwill, Ending Balance | $ 27,160 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Components of Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Jun. 30, 2018 | |
The components of intangible assets | ||
Accumulated amortization | $ (148,413) | $ (145,334) |
Intangible Assets, Gross (Excluding Goodwill) | 320,890 | 321,802 |
Trademarks [Member] | ||
The components of intangible assets | ||
Gross carrying amount, Indefinite | 17,551 | 17,609 |
Contract-based [Member] | ||
The components of intangible assets | ||
Gross carrying amount, finite | 7,063 | 7,061 |
Accumulated amortization | (7,045) | (7,036) |
Technology-based and other [Member] | ||
The components of intangible assets | ||
Gross carrying amount, finite | 46,593 | 46,666 |
Accumulated amortization | (31,213) | (30,923) |
Customer-related [Member] | ||
The components of intangible assets | ||
Gross carrying amount, finite | 205,558 | 206,162 |
Accumulated amortization | (87,484) | (85,301) |
Unpatented technology [Member] | ||
The components of intangible assets | ||
Gross carrying amount, finite | 31,697 | 31,854 |
Accumulated amortization | (13,644) | (13,096) |
Trademarks [Member] | ||
The components of intangible assets | ||
Gross carrying amount, finite | 12,428 | 12,450 |
Accumulated amortization | $ (9,027) | $ (8,978) |
Minimum [Member] | Contract-based [Member] | ||
The components of intangible assets | ||
Useful life related to technology-based intangible assets | 3 years | |
Minimum [Member] | Technology-based and other [Member] | ||
The components of intangible assets | ||
Useful life related to technology-based intangible assets | 4 years | |
Minimum [Member] | Customer-related [Member] | ||
The components of intangible assets | ||
Useful life related to technology-based intangible assets | 10 years | |
Minimum [Member] | Unpatented technology [Member] | ||
The components of intangible assets | ||
Useful life related to technology-based intangible assets | 10 years | |
Minimum [Member] | Trademarks [Member] | ||
The components of intangible assets | ||
Useful life related to technology-based intangible assets | 5 years | |
Maximum [Member] | Contract-based [Member] | ||
The components of intangible assets | ||
Useful life related to technology-based intangible assets | 15 years | |
Maximum [Member] | Technology-based and other [Member] | ||
The components of intangible assets | ||
Useful life related to technology-based intangible assets | 20 years | |
Maximum [Member] | Customer-related [Member] | ||
The components of intangible assets | ||
Useful life related to technology-based intangible assets | 21 years | |
Maximum [Member] | Unpatented technology [Member] | ||
The components of intangible assets | ||
Useful life related to technology-based intangible assets | 30 years | |
Maximum [Member] | Trademarks [Member] | ||
The components of intangible assets | ||
Useful life related to technology-based intangible assets | 20 years |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | |
Goodwill and Other Intangible Assets (Additional Textual) [Abstract] | |||
Goodwill | $ 300,844 | $ 301,802 | |
Amortization expense for intangible assets | 3,580 | $ 3,661 | |
Infrastructure [Member] | |||
Goodwill and Other Intangible Assets (Additional Textual) [Abstract] | |||
Goodwill | 0 | 0 | |
Industrial [Member] | |||
Goodwill and Other Intangible Assets (Additional Textual) [Abstract] | |||
Goodwill | 273,684 | 274,254 | |
WIDIA [Member] | |||
Goodwill and Other Intangible Assets (Additional Textual) [Abstract] | |||
Goodwill | $ 27,160 | $ 27,548 |
Segment Data - Sales and Operat
Segment Data - Sales and Operating Income (Loss) by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | |||
Assets | $ 2,512,204 | $ 2,925,737 | |
External sales: | |||
Sales (Note 3) | 586,687 | $ 542,454 | |
Operating income (loss): | |||
Total operating (income) loss | (83,152) | (52,171) | |
Interest expense | 8,097 | 7,149 | |
Other income, net | (2,761) | (4,218) | |
Income from continuing operations before income taxes | 77,816 | 49,240 | |
Industrial [Member] | |||
External sales: | |||
Sales (Note 3) | 320,559 | 297,464 | |
Operating income (loss): | |||
Total operating (income) loss | (58,542) | (32,039) | |
Infrastructure [Member] | |||
External sales: | |||
Sales (Note 3) | 217,456 | 199,747 | |
Operating income (loss): | |||
Total operating (income) loss | (23,860) | (20,390) | |
WIDIA [Member] | |||
External sales: | |||
Sales (Note 3) | 48,672 | 45,243 | |
Operating income (loss): | |||
Total operating (income) loss | (2,093) | 320 | |
Corporate [Member] | |||
Operating income (loss): | |||
Total operating (income) loss | $ 1,343 | $ (62) |
Segment Data Disaggregation o_2
Segment Data Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
General Engineering [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, percent | $ 0.44 | $ 0.43 |
Transportation [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, percent | 0.19 | 0.20 |
Aerospace and defense [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, percent | 0.07 | 0.07 |
Energy [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, percent | 0.17 | 0.16 |
Earthworks [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, percent | 0.13 | 0.14 |
Americas [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, percent | 0.49 | 0.48 |
EMEA [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, percent | 0.29 | 0.31 |
Asia Pacific [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, percent | 0.22 | 0.21 |
Infrastructure [Member] | General Engineering [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, percent | 0.32 | 0.32 |
Infrastructure [Member] | Energy [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, percent | 0.34 | 0.31 |
Infrastructure [Member] | Earthworks [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, percent | 0.34 | 0.37 |
Infrastructure [Member] | Americas [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, percent | 0.65 | 0.63 |
Infrastructure [Member] | EMEA [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, percent | 0.15 | 0.17 |
Infrastructure [Member] | Asia Pacific [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, percent | 0.20 | 0.20 |
WIDIA [Member] | General Engineering [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, percent | 1 | 1 |
WIDIA [Member] | Americas [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, percent | 0.45 | 0.48 |
WIDIA [Member] | EMEA [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, percent | 0.24 | 0.24 |
WIDIA [Member] | Asia Pacific [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, percent | 0.31 | 0.28 |
Industrial [Member] | General Engineering [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, percent | 0.43 | 0.42 |
Industrial [Member] | Transportation [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, percent | 0.35 | 0.37 |
Industrial [Member] | Aerospace and defense [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, percent | 0.13 | 0.12 |
Industrial [Member] | Energy [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, percent | 0.09 | 0.09 |
Industrial [Member] | Americas [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, percent | 0.39 | 0.39 |
Industrial [Member] | EMEA [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, percent | 0.40 | 0.41 |
Industrial [Member] | Asia Pacific [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues, percent | $ 0.21 | $ 0.20 |