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KMT Kennametal

Cover

Cover - shares9 Months Ended
Mar. 31, 2021Apr. 30, 2021
Document Information [Line Items]
Document Type10-Q
Document Quarterly Reporttrue
Document Period End DateMar. 31,
2021
Document Transition Reportfalse
Entity File Number1-5318
Entity Registrant NameKENNAMETAL INC.
Entity Incorporation, State or Country CodePA
Entity Tax Identification Number25-0900168
Entity Address, Address Line One525 William Penn Place
Entity Address, Address Line TwoSuite 3300
Entity Address, City or TownPittsburgh,
Entity Address, State or ProvincePA
Entity Address, Postal Zip Code15219
City Area Code412
Local Phone Number248-8000
Entity Current Reporting StatusYes
Entity Interactive Data CurrentYes
Entity Filer CategoryLarge Accelerated Filer
Entity Small Businessfalse
Entity Emerging Growth Companyfalse
Entity Shell Companyfalse
Entity Common Stock, Shares Outstanding (in shares)83,598,649
Entity Central Index Key0000055242
Current Fiscal Year End Date--06-30
Document Fiscal Year Focus2021
Document Fiscal Period FocusQ3
Amendment Flagfalse
Capital Stock, par value $1.25 per share | New York Stock Exchange
Document Information [Line Items]
Title of 12(b) SecurityCapital Stock, par value $1.25 per share
Trading SymbolKMT
Security Exchange NameNYSE
Preferred Stock Purchase Rights | New York Stock Exchange
Document Information [Line Items]
Title of 12(b) SecurityPreferred Stock Purchase Rights
Security Exchange NameNYSE
No Trading Symbol Flagtrue

Basis of Presentation

Basis of Presentation9 Months Ended
Mar. 31, 2021
Accounting Policies [Abstract]
BASIS OF PRESENTATIONBASIS OF PRESENTATIONThe condensed consolidated financial statements and accompanying notes included in this Quarterly Report on Form 10-Q, which include our accounts and those of our majority-owned subsidiaries, should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2020 (the “2020 Annual Report”). The condensed consolidated balance sheet as of June 30, 2020 was derived from the audited balance sheet included in our 2020 Annual Report. The interim statements are unaudited; however, we believe that all adjustments necessary for a fair statement of the results of the interim periods were made and all adjustments are normal recurring adjustments. The results for the nine months ended March 31, 2021 and 2020 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 2021 is to the fiscal year ending June 30, 2021. When used in this Quarterly Report on Form 10-Q, unless the context requires otherwise, the terms “the Company,” “we,” “our” and “us” refer to Kennametal Inc. and its subsidiaries.

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands3 Months Ended9 Months Ended
Mar. 31, 2021Mar. 31, 2020Mar. 31, 2021Mar. 31, 2020
Sales $ 484,658 $ 483,084 $ 1,325,470 $ 1,506,252
Cost of goods sold334,483 326,066 948,693 1,078,236
Gross profit150,175 157,018 376,777 428,016
Operating expense108,113 98,534 299,211 320,273
Restructuring and asset impairment charges (Note 6)(822)17,187 26,145 84,182
Loss on divestiture (Note 3)0 0 0 6,517
Amortization of intangibles3,362 3,404 10,043 10,413
Operating income39,522 37,893 41,378 6,631
Interest expense (Note 10)20,928 7,897 39,823 23,834
Other income, net(2,692)(2,438)(10,568)(9,330)
Income (loss) before income taxes21,286 32,434 12,123 (7,873)
(Benefit) provision from income taxes(1,699)30,193 (10,252)(11,295)
Net income22,985 2,241 22,375 3,422
Less: Net income (loss) attributable to noncontrolling interests1,364 (676)3,042 (23)
Net income attributable to Kennametal $ 21,621 $ 2,917 $ 19,333 $ 3,445
PER SHARE DATA ATTRIBUTABLE TO KENNAMETAL SHAREHOLDERS
Basic earnings per share $ 0.26 $ 0.04 $ 0.23 $ 0.04
Diluted earnings per share0.260.030.230.04
Dividends per share $ 0.20 $ 0.20 $ 0.60 $ 0.60
Basic weighted average shares outstanding83,719 83,106 83,539 83,022
Diluted weighted average shares outstanding84,588 83,696 84,184 83,589
Noncontrolling Interest [Member]
Net income $ 1,364 $ (676) $ 3,042 $ (23)

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands3 Months Ended9 Months Ended
Mar. 31, 2021Mar. 31, 2020Mar. 31, 2021Mar. 31, 2020
Net income $ 22,985 $ 2,241 $ 22,375 $ 3,422
Other comprehensive income (loss), net of tax [Abstract]
Unrealized gain (loss) on derivatives designated and qualified as cash flow hedges4,771 (1,000)9,272 (144)
Reclassification of unrealized (gain) loss on derivatives designated and qualified as cash flow hedges(1,148)518 (210)306
Unrecognized net pension and other postretirement benefit gain (loss)2,032 2,573 (5,489)2,123
Reclassification of net pension and other postretirement benefit loss2,579 1,966 7,758 5,916
Foreign currency translation adjustments(25,536)(38,018)49,012 (47,691)
Total other comprehensive (loss) income, net of tax(17,302)(33,961)60,343 (39,490)
Total comprehensive income (loss)5,683 (31,720)82,718 (36,068)
Less: comprehensive income (loss) attributable to noncontrolling interests634 (2,659)4,947 (2,860)
Comprehensive income (loss) attributable to Kennametal Shareholders $ 5,049 $ (29,061) $ 77,771 $ (33,208)

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) shares in Thousands, $ in ThousandsMar. 31, 2021Jun. 30, 2020
Current assets:
Cash and cash equivalents $ 114,307 $ 606,684
Accounts receivable, less allowance for doubtful accounts of $9,653 and $9,430, respectively303,210 237,983
Inventories (Note 9)476,164 522,447
Other current assets73,235 73,698
Total current assets966,916 1,440,812
Property, plant and equipment:
Land and buildings399,417 360,256
Machinery and equipment1,973,528 1,913,967
Less accumulated depreciation(1,318,956)(1,235,952)
Property, plant and equipment, net1,053,989 1,038,271
Other assets:
Goodwill (Note 17)276,048 270,580
Other intangible assets, less accumulated amortization of $149,320 and $137,386, respectively (Note 17)123,687 132,568
Operating lease right-of-use assets52,983 48,035
Deferred income taxes55,999 46,782
Other85,358 60,543
Total other assets594,075 558,508
Total assets2,614,980 3,037,591
Current liabilities:
Revolving and other lines of credit and notes payable (Note 11)18,745 500,368
Current operating lease liabilities14,768 13,246
Accounts payable164,481 164,641
Accrued income taxes9,830 27,938
Accrued expenses58,265 47,610
Other current liabilities159,464 144,277
Total current liabilities425,553 898,080
Long-term debt, less current maturities (Note 10)591,672 594,083
Operating lease liabilities38,858 35,372
Deferred income taxes22,250 21,796
Accrued pension and postretirement benefits177,931 175,458
Accrued income taxes9,937 9,584
Other liabilities31,198 34,430
Total liabilities1,297,399 1,768,803
Commitments and contingencies
Kennametal Shareholders' Equity:
Preferred stock, no par value; 5,000 shares authorized; none issued0 0
Capital stock, $1.25 par value; 120,000 shares authorized; 83,583 and 82,923 shares issued, respectively104,478 103,654
Additional paid-in capital556,522 538,575
Retained earnings974,215 1,004,898
Accumulated other comprehensive loss(358,803)(417,242)
Total Kennametal Shareholders' Equity1,276,412 1,229,885
Noncontrolling interests41,169 38,903
Total equity1,317,581 1,268,788
Total liabilities and equity $ 2,614,980 $ 3,037,591
Common Stock, Par or Stated Value Per Share $ 1.25 $ 1.25
Preferred Stock, No Par Value $ 0 $ 0
Preferred Stock, Shares Authorized5,000 5,000

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) shares in Thousands, $ in ThousandsMar. 31, 2021Jun. 30, 2020
Statement of Financial Position [Abstract]
Allowance for doubtful accounts $ 9,653 $ 9,430
Accumulated amortization on other intangible assets $ 149,320 $ 137,386
Preferred stock, par value $ 0 $ 0
Preferred stock, shares authorized5,000 5,000
Capital stock, par value $ 1.25 $ 1.25
Capital stock, shares authorized120,000 120,000
Capital stock, shares issued83,583 82,923
Preferred Stock, Shares Issued0 0

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED) - USD ($) $ in Thousands9 Months Ended
Mar. 31, 2021Mar. 31, 2020
OPERATING ACTIVITIES
Net income $ 22,375 $ 3,422
Adjustments for non-cash items:
Depreciation83,677 79,078
Amortization10,043 10,413
Stock-based compensation expense19,381 14,289
Restructuring and asset impairment charges (Note 6)2,805 33,792
Deferred income taxes(14,418)(23,597)
Loss on divestiture (Note 3)0 6,517
Debt refinancing charge (Note 10)9,071
Other4,567 2,748
Changes in certain assets and liabilities:
Accounts receivable(56,454)60,616
Inventories58,109 29,947
Accounts payable and accrued liabilities28,086 (34,351)
Accrued income taxes(20,926)(21,957)
Accrued pension and postretirement benefits(21,142)(18,163)
Other14,023 3,305
Net cash flow provided by operating activities139,197 146,059
INVESTING ACTIVITIES
Purchases of property, plant and equipment(94,066)(206,061)
Disposals of property, plant and equipment1,216 2,780
Proceeds from divestiture (Note 3)0 23,950
Other112 (869)
Net cash flow used for investing activities(92,738)(180,200)
FINANCING ACTIVITIES
Net increase (decrease) in notes payable1,008 (175)
Net (decrease) increase revolving and other lines of credit(490,000)4,500
Term debt borrowings297,867
Term debt repayments(300,000)0
Make-whole premium on early extinguishment of debt (Note 10)(9,639)
Settlement of interest rate swap agreement (Note 5)10,198
Purchase of capital stock(149)(158)
The effect of employee benefit and stock plans and dividend reinvestment(150)(5,747)
Cash dividends paid to Shareholders(50,016)(49,725)
Other(4,581)(2,698)
Net cash flow used for financing activities(545,462)(54,003)
Effect of exchange rate changes on cash and cash equivalents6,626 (8,641)
CASH AND CASH EQUIVALENTS
Net decrease in cash and cash equivalents(492,377)(96,785)
Cash and cash equivalents, beginning of period606,684 182,015
Cash and cash equivalents, end of period $ 114,307 $ 85,230

Supplemental Cash Flow Disclosu

Supplemental Cash Flow Disclosures9 Months Ended
Mar. 31, 2021
Supplemental Cash Flow Elements [Abstract]
SUPPLEMENTAL CASH FLOW DISCLOSURESSUPPLEMENTAL CASH FLOW DISCLOSURES Nine Months Ended March 31, (in thousands) 2021 2020 Cash paid during the period for: Interest (Note 10) $ 36,456 $ 20,783 Income taxes 28,715 31,523 Supplemental disclosure of non-cash information: Changes in accounts payable related to purchases of property, plant and equipment (14,700) (16,000) Changes in notes payable related to purchases of property, plant and equipment 7,254 —

Supplemental Cash Flow (Tables)

Supplemental Cash Flow (Tables)9 Months Ended
Mar. 31, 2021
Supplemental Cash Flow Elements [Abstract]
Supplemental Cash Flow DisclosuresNine Months Ended March 31, (in thousands) 2021 2020 Cash paid during the period for: Interest (Note 10) $ 36,456 $ 20,783 Income taxes 28,715 31,523 Supplemental disclosure of non-cash information: Changes in accounts payable related to purchases of property, plant and equipment (14,700) (16,000) Changes in notes payable related to purchases of property, plant and equipment 7,254 —

Supplemental Cash Flow (Details

Supplemental Cash Flow (Details) - USD ($) $ in Thousands9 Months Ended
Mar. 31, 2021Mar. 31, 2020
Supplemental Cash Flow Elements [Abstract]
Interest (Note 10) $ 36,456 $ 20,783
Income taxes28,715 31,523
Change in accounts payable related to property, plant, and equipment(14,700) $ (16,000)
Changes in notes payable related to purchases of property, plant and equipment $ 7,254

Divestiture (Notes)

Divestiture (Notes)9 Months Ended
Mar. 31, 2021
Divestiture [Abstract]
Mergers, Acquisitions and Dispositions Disclosures [Text Block]DIVESTITURE During the three months ended December 31, 2019, we completed the sale of certain assets of the non-core specialty alloys and metals business within the Infrastructure segment located in New Castle, Pennsylvania to Advanced Metallurgical Group N.V. for an aggregate price of $24.0 million. The net book value of these assets at closing was $29.5 million, and the pre-tax loss on divestiture recognized during the three months ended December 31, 2019 was $6.5 million. Transaction proceeds were primarily used for capital expenditures related to our simplification/modernization efforts.

Fair Value Measurements

Fair Value Measurements9 Months Ended
Mar. 31, 2021
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTSFAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received on the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy consists of three levels to prioritize the inputs used in valuations, as defined below: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3: Inputs that are unobservable. As of March 31, 2021, the fair values of our financial assets and financial liabilities are categorized as follows: (in thousands) Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 171 $ — $ 171 Total assets at fair value $ — $ 171 $ — $ 171 Liabilities: Derivatives (1) $ — $ 216 $ — $ 216 Total liabilities at fair value $ — $ 216 $ — $ 216 As of June 30, 2020, the fair values of our financial assets and financial liabilities are categorized as follows: (in thousands) Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 36 $ — $ 36 Total assets at fair value $ — $ 36 $ — $ 36 Liabilities: Derivatives (1) $ — $ 2,139 $ — $ 2,139 Total liabilities at fair value $ — $ 2,139 $ — $ 2,139 (1) Currency and interest rate 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 Hedg

Derivative Instruments and Hedging Activities9 Months Ended
Mar. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIESDERIVATIVE 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, we do not hold any 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 fair value of derivatives designated and not designated as hedging instruments in the condensed consolidated balance sheet are as follows: (in thousands) March 31, 2021 June 30, 2020 Derivatives designated as hedging instruments Other current assets - range forward contracts $ — $ 4 Other assets - forward starting interest rate swap contracts — 20 Other liabilities - forward starting interest rate swap contracts — (2,094) Total derivatives designated as hedging instruments — (2,070) Derivatives not designated as hedging instruments Other current assets - currency forward contracts 171 12 Other current liabilities - currency forward contracts (216) (45) Total derivatives not designated as hedging instruments (45) (33) Total derivatives $ (45) $ (2,103) 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. Losses related to derivatives not designated as hedging instruments have been recognized as follows: Three Months Ended March 31, Nine Months Ended March 31, (in thousands) 2021 2020 2021 2020 Other income, net - currency forward contracts $ 1,428 $ 220 $ 20 $ 231 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. Unrealized gains and losses related to these contracts are recorded in accumulated other comprehensive loss and are recognized as a component of cost of goods sold and other income, net when the underlying sale of products or services is recognized into earnings. All outstanding range forward contracts expired as of March 31, 2021. The notional amount of these contracts translated into U.S. dollars at June 30, 2020 was $2.2 million. The time value component of the fair value of range forward contracts is excluded from the assessment of hedge effectiveness. During the three months ended March 31, 2021, upon issuance of the Senior Unsecured Notes due 2031 (see Note 10 for more information) we settled the forward starting interest rate swap contracts used to hedge a portion of the interest rate risk related to the refinancing for a gain of $10.2 million in other comprehensive income (loss). The gain will be amortized out of accumulated other comprehensive income (loss) and into interest expense (as a benefit) over the life of the Senior Unsecured Notes due 2031. The notional amount of the forward starting interest rate swap contracts at June 30, 2020 was $200.0 million. We recorded $2.1 million of liabilities as of June 30, 2020 related to these contracts. No portion of the gains or losses recognized in earnings was due to hedge ineffectiveness and no amounts were excluded from our effectiveness testing for the nine months ended March 31, 2021 and 2020. NET INVESTMENT HEDGES As of March 31, 2021 and June 30, 2020, we had certain foreign currency-denominated intercompany loans payable with total aggregate principal amounts of €60.9 million and €15.9 million, respectively, designated as net investment hedges to hedge the foreign exchange exposure of our net investment in our Euro-based subsidiaries. Gains of $1.5 million and $1.1 million were recorded as a component of foreign currency translation adjustments in other comprehensive loss for the three months ended March 31, 2021 and 2020, respectively. Gains of an immaterial amount and $1.0 million were recorded as a component of foreign currency translation adjustments in other comprehensive income (loss) for the nine months ended March 31, 2021 and 2020, respectively. As of March 31, 2021, 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 €45,010 $52,772 June 25, 2021 Foreign currency-denominated intercompany loan payable 16,330 19,146 June 26, 2022 (2) Includes principal and accrued interest.

Restructuring and Related Charg

Restructuring and Related Charges9 Months Ended
Mar. 31, 2021
Restructuring Charges [Abstract]
RESTRUCTURING AND RELATED CHARGESRESTRUCTURING AND RELATED CHARGES FY20 Restructuring Actions In the June quarter of fiscal 2019, we implemented, and in fiscal 2020 substantially completed, the FY20 Restructuring Actions associated with our simplification/modernization initiative to reduce structural costs, improve operational efficiency and position us for long-term profitable growth. Total restructuring and related charges since inception of $54.8 million were recorded for this program through March 31, 2021, consisting of: $46.5 million in Metal Cutting and $8.3 million in Infrastructure. FY21 Restructuring Actions In the September quarter of fiscal 2020, we announced the initiation of restructuring actions in Germany associated with our simplification/modernization initiative, which are expected to reduce structural costs. Subsequently, we also announced the acceleration of our structural cost reduction plans including the closing of the Johnson City, Tennessee facility. Expected pre-tax charges for the FY21 Restructuring Actions are $90 million to $95 million. Total restructuring and related charges since inception of $76.7 million were recorded for this program through March 31, 2021, consisting of: $71.0 million in Metal Cutting and $5.8 million in Infrastructure. The majority of the remaining charges related to the FY21 Restructuring Actions are expected to be within the Metal Cutting segment. Restructuring and Related Charges Recorded We recorded restructuring and related charges of $2.1 million for the three months ended March 31, 2021, which consisted of charges of $2.5 million in Metal Cutting offset by a benefit from the reversal of charges of $0.4 million in Infrastructure, and $5.8 million for the three months ended March 31, 2020. Of these amounts, restructuring benefits from the reversal of charges of $0.9 million were recorded for the three months ended March 31, 2021, of which $0.1 million is included in cost of goods sold, and charges of $1.8 million were recorded for the three months ended March 31, 2020, of which $0.2 million was included in cost of goods sold. Restructuring-related charges of $3.0 million and $4.0 million were recorded in cost of goods sold for the three months ended March 31, 2021 and 2020, respectively. We recorded restructuring and related charges of $34.9 million for the nine months ended March 31, 2021, of which $32.0 million was in Metal Cutting and $2.9 million was in Infrastructure, and $65.1 million for the nine months ended March 31, 2020. Of these amounts, restructuring charges totaled $26.5 million for the nine months ended March 31, 2021, of which $0.3 million is included in cost of goods sold, and $54.5 million for the nine months ended March 31, 2020, of which $0.6 million was included in cost of goods sold. Restructuring-related charges of $8.5 million and $10.6 million were recorded in cost of goods sold for the nine months ended March 31, 2021 and 2020, respectively. As of March 31, 2021, $27.8 million and $8.6 million of the restructuring accrual was recorded in other current liabilities and other liabilities, respectively, in our condensed consolidated balance sheet. As of June 30, 2020, $34.9 million and $12.5 million of the restructuring accrual was recorded in other current liabilities and other liabilities, respectively. The amounts are as follows: (in thousands) June 30, 2020 Expense, net Asset Write-Down Translation Cash Expenditures March 31, 2021 Severance $ 47,303 $ 23,645 $ — $ 7,378 $ (41,886) $ 36,440 Facilities — 2,805 (2,805) — — — Other 63 — — 4 (67) — Total $ 47,366 $ 26,450 $ (2,805) $ 7,382 $ (41,953) $ 36,440

Stock-Based Compensation

Stock-Based Compensation9 Months Ended
Mar. 31, 2021
Share-based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATIONSTOCK-BASED COMPENSATION Stock Options Changes in our stock options for the nine months ended March 31, 2021 were as follows: Options Weighted Average Exercise Price Weighted Average Remaining Life (years) Aggregate Intrinsic value (in thousands) Options outstanding, June 30, 2020 646,959 $ 33.60 Exercised (252,658) 26.06 Lapsed or forfeited (32,514) 42.70 Options outstanding, March 31, 2021 361,787 $ 38.04 2.5 $ 1,317 Options vested, March 31, 2021 361,787 $ 38.04 2.5 $ 1,317 Options exercisable, March 31, 2021 361,787 $ 38.04 2.5 $ 1,317 As of March 31, 2021 and June 30, 2020, there was no unrecognized compensation cost related to options outstanding, and all options were fully vested as of March 31, 2021 and 2020. The amount of cash received from the exercise of options during the nine months ended March 31, 2021 and 2020 was $5.6 million and $0.7 million, respectively. The total intrinsic value of options exercised was $2.2 million and $0.3 million during the nine months ended March 31, 2021 and 2020, respectively. Restricted Stock Units – Performance Vesting and Time Vesting Changes in our performance vesting and time vesting restricted stock units for the nine months ended March 31, 2021 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, 2020 554,633 $ 34.26 1,039,695 $ 32.48 Granted 220,876 33.49 922,460 31.86 Vested (77,284) 47.47 (476,704) 33.99 Performance metric adjustments, net (100,000) 32.92 — — Other adjustments (4,565) 30.26 — — Forfeited (90,714) 32.36 (128,647) 31.39 Unvested, March 31, 2021 502,946 $ 32.54 1,356,804 $ 31.64 During the nine months ended March 31, 2021 and 2020, compensation expense related to time vesting and performance vesting restricted stock units was $18.7 million and $13.7 million, respectively. Certain performance metrics related to fiscal 2020 were not met, resulting in an adjustment of 100,000 performance vesting stock units during the nine months ended March 31, 2021. As of March 31, 2021, the total unrecognized compensation cost related to unvested time vesting and performance vesting restricted stock units was $28.8 million and is expected to be recognized over a weighted average period of 2.0 years.

Pension and Other Postretiremen

Pension and Other Postretirement Benefits9 Months Ended
Mar. 31, 2021
Retirement Benefits [Abstract]
PENSION AND OTHER POSTRETIREMENT BENEFITSThe table below summarizes the components of net periodic pension income: Three Months Ended March 31, Nine Months Ended March 31, (in thousands) 2021 2020 2021 2020 Service cost $ 429 $ 452 $ 1,264 $ 1,346 Interest cost 5,815 6,848 17,371 20,504 Expected return on plan assets (13,459) (13,539) (40,171) (40,491) Amortization of transition obligation 24 23 70 67 Amortization of prior service cost 8 13 25 38 Recognition of actuarial losses 3,431 2,597 10,190 7,777 Settlement gain — — — (122) Net periodic pension income $ (3,752) $ (3,606) $ (11,251) $ (10,881) The table below summarizes the components of net periodic other postretirement benefit cost: Three Months Ended March 31, Nine Months Ended March 31, (in thousands) 2021 2020 2021 2020 Interest cost $ 76 $ 101 $ 230 $ 303 Amortization of prior service credit (69) (69) (207) (207) Recognition of actuarial loss 77 64 230 193 Net periodic other postretirement benefit cost $ 84 $ 96 $ 253 $ 289

Inventories

Inventories9 Months Ended
Mar. 31, 2021
Inventory Disclosure [Abstract]
INVENTORIESINVENTORIES We used the last-in, first-out (LIFO) method of valuing inventories for 39 percent and 43 percent of total inventories at March 31, 2021 and June 30, 2020, respectively. Inventory valuations under the LIFO method are based on an annual determination of quantities and costs as of June 30 of each year; therefore, the interim LIFO valuations are based on our projections of expected year-end inventory levels and costs and are subject to any final year-end LIFO inventory adjustments. Inventories consisted of the following: (in thousands) March 31, 2021 June 30, 2020 Finished goods $ 305,478 $ 318,071 Work in process and powder blends 167,272 190,041 Raw materials 68,364 75,589 Inventories at current cost 541,114 583,701 Less: LIFO valuation (64,950) (61,254) Total inventories $ 476,164 $ 522,447

Long-Term Debt

Long-Term Debt9 Months Ended
Mar. 31, 2021
Debt Disclosure [Abstract]
LONG-TERM DEBTLONG-TERM DEBT Long-term debt consisted of the following: (in thousands) March 31, 2021 June 30, 2020 2.800% Senior Unsecured Notes due fiscal 2031, net of discount of $2.7 million at March 31, 2021 $ 297,320 $ — 4.625% Senior Unsecured Notes due fiscal 2028, net of discount of $1.6 million at March 31, 2021 and $1.7 million at June 30, 2020 298,428 298,264 3.875% Senior Unsecured Notes due fiscal 2022, net of discount of $0.1 million at June 30, 2020 — 299,940 Total term debt 595,748 598,204 Less unamortized debt issuance costs (4,076) (4,121) Total long-term debt $ 591,672 $ 594,083 Senior Unsecured Notes In February 2021, we issued $300.0 million of 2.800 percent Senior Unsecured Notes with a maturity date of March 1, 2031. Interest will be paid semi-annually on March 1 and September 1 of each year. We settled forward starting interest rate swap contracts for a gain of $10.2 million related to the bond issuance as discussed in Note 5. In March 2021, we used the net proceeds from the bond issuance, plus cash on hand, for the early extinguishment of our $300.0 million of 3.875 percent Senior Unsecured Notes due 2022 (the 2022 Notes). Due to the early extinguishment, interest expense during the three months ended March 31, 2021 includes a make-whole premium of $9.6 million and the acceleration of a loss in the amount of $2.6 million from other comprehensive loss related to forward starting interest rate contracts that were used to hedge the interest payments of the 2022 Notes. A stranded tax benefit associated with the termination of this hedge was also recognized during the three months ended March 31, 2021. Refer to Note 13 for more information related to the stranded tax benefits. On June 7, 2018, we issued $300.0 million of 4.625 percent Senior Unsecured Notes with a maturity date of June 15, 2028. Interest on these notes is paid semi-annually on June 15 and December 15 of each year. Future principal maturities of long-term debt are $300 million in 2028 and $300 million in 2031. Fixed rate debt had a fair market value of $628.4 million and $630.2 million at March 31, 2021 and June 30, 2020, respectively. The Level 2 fair value is determined based on the quoted market prices for similar debt instruments as of March 31, 2021 and June 30, 2020, respectively.

Revolving and Other Lines of Cr

Revolving and Other Lines of Credit9 Months Ended
Mar. 31, 2021
Debt Disclosure [Abstract]
Short-term DebtREVOLVING AND OTHER LINES OF CREDIT During the three months ended September 30, 2020, we entered into the First Amendment (the Amendment) to the Fifth Amended and Restated Credit Agreement dated as of June 21, 2018, (as amended by the Amendment, the Credit Agreement). The Credit Agreement is a five-year, multi-currency, revolving credit facility and we use it to augment cash from operations and as an additional source of funds. The Credit Agreement provides for revolving credit loans of up to $700.0 million for working capital, capital expenditures and general corporate purposes. The Credit Agreement allows for borrowings in U.S. dollars, euros, Canadian dollars, pounds sterling and Japanese yen. Interest payable under the Credit Agreement is based upon the type of borrowing under the facility and may be (1) LIBOR plus an applicable margin, (2) the greater of the prime rate or the Federal Funds effective rate plus an applicable margin, or (3) fixed as negotiated by us. The Credit Agreement matures in June 2023. The Credit Agreement requires us to comply with various restrictive and affirmative covenants, including two financial covenants: (1) a maximum leverage ratio where debt, net of domestic cash in excess of $25 million and sixty percent of the unrestricted cash held outside of the United States, must be less than or equal to 3.5 times trailing twelve months EBITDA (temporarily increased by the Amendment to 4.25 times trailing twelve months EBITDA during the period from September 30, 2020 through and including December 31, 2021), adjusted for certain non-cash expenses and which may be further adjusted, at our discretion, to include up to $120 million of cash restructuring charges through December 31, 2021; and (2) a minimum consolidated interest coverage ratio of EBITDA to interest of 3.5 times (as such terms are defined in the Credit Agreement). Borrowings under the Credit Agreement are guaranteed by our significant domestic subsidiaries. As of March 31, 2021, we were in compliance with all covenants of the Credit Agreement and we had $10.0 million of borrowings outstanding and $670.0 million of additional availability. There were $500.0 million of borrowings outstanding as of June 30, 2020.

Environmental Matters

Environmental Matters9 Months Ended
Mar. 31, 2021
Environmental Remediation Obligations [Abstract]
ENVIRONMENTAL MATTERSENVIRONMENTAL 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 accruals for certain potential environmental liabilities. At March 31, 2021, the balance of these accruals was $14.7 million, of which $2.6 million was current. At June 30, 2020, the balance was $15.6 million, of which $6.1 million was current. The balances as of March 31, 2021 and June 30, 2020 include the Company’s resolution of an environmental indemnity claim against the seller of a prior acquisition for which receivables are also recorded in other current assets. These accruals represent anticipated costs associated with potential remedial requirements and are generally not discounted. The accruals we have established for potential environmental liabilities represent our best current estimate of the costs of addressing all identified environmental situations, based on our review of currently available evidence, 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 our accruals currently appear to be sufficient to cover these potential 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 accrued 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 Taxes9 Months Ended
Mar. 31, 2020
Income Tax Disclosure [Abstract]
INCOME TAXESINCOME TAXES The effective income tax rates for the three months ended March 31, 2021 and 2020 were 8.0 percent (benefit on income) and 93.1 percent (provision on income), respectively. The year-over-year change is primarily due to the effects of changes in projected pretax income in both periods and two discrete tax benefits that were recorded in the current year quarter. The first discrete tax benefit of $12.4 million is a provision to return adjustment related to our fiscal 2020 U.S. income tax returns, the majority of which is attributable to a tax election made in our federal income tax return pursuant to global intangible low-taxed income (GILTI) regulations which were issued during the current fiscal year. The second discrete tax benefit of $3.5 million is the recognition of a stranded deferred tax balance in accumulated other comprehensive loss arising from valuation allowance adjustments and enacted tax rate changes associated with the forward starting interest rate cash flow hedges that were terminated during the current year quarter (see Note 10). The prior year rate included the effects from the impairment of goodwill and other intangible asset impairment charges in the former Widia segment. The effective income tax rates for the nine months ended March 31, 2021 and 2020 were 84.6 percent (benefit on income) and 143.5 percent (benefit on a loss), respectively. The year-over-year change is primarily due to (i) the effects of relatively low projected pretax income in the current year quarter coupled with a relatively low projected pretax loss in the prior year quarter, and (ii) two discrete tax benefits that were recorded in the current year quarter. The first discrete tax benefit of $12.4 million is a provision to return adjustment related to our fiscal 2020 U.S. income tax returns, the majority of which is attributable to a tax election made in our federal income tax return pursuant to global intangible low-taxed income (GILTI) regulations which were issued during the current fiscal year. The second discrete tax benefit of $3.5 million is the recognition of a stranded deferred tax balance in accumulated other comprehensive loss arising from valuation allowance adjustments and enacted tax rate changes associated with the forward starting interest rate cash flow hedges that were terminated during the current year quarter (see Note 10). The prior year rate included a discrete $14.5 million benefit for the one-time effect of Swiss tax reform and the effects from the impairment of goodwill and other intangible asset impairment charges in the former Widia segment. Swiss tax reform Legislation was effectively enacted during the three months ended December 31, 2019 when the Canton of Schaffhausen approved the Federal Act on Tax Reform and AHV Financing on October 8, 2019 (Swiss tax reform). Significant changes from Swiss tax reform include the abolishment of certain favorable tax regimes and the creation of a ten-year transitional period at both the federal and cantonal levels. The transitional provisions of Swiss tax reform allow companies to utilize a combination of lower tax rates and tax basis adjustments to fair value, which are used for tax depreciation and amortization purposes resulting in deductions over the transitional period. To reflect the federal and cantonal transitional provisions, as they apply to us, we recorded a deferred tax asset of $14.5 million during the three months ended December 31, 2019. We consider the deferred tax asset from Swiss tax reform to be an estimate based on our current interpretation of the legislation, which is subject to change based on further legislative guidance, review with the Swiss federal and cantonal authorities and modifications to the underlying valuation. We expect such reviews with the relevant tax authorities will be finalized during the fourth quarter of the current fiscal year or the first quarter of fiscal 2022. There have been no material changes to the recorded deferred tax asset since inception.

Earnings Per Share

Earnings Per Share9 Months Ended
Mar. 31, 2021
Earnings Per Share [Abstract]
EARNINGS PER SHAREEARNINGS PER SHAREBasic 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. The following table provides the computation of diluted shares outstanding for the three and nine months ended March 31, 2021 and 2020: Three Months Ended March 31, Nine Months Ended March 31, (in thousands) 2021 2020 2021 2020 Weighted-average shares outstanding during period 83,719 83,106 83,539 83,022 Add: Unexercised stock options and unvested restricted stock units 869 590 645 567 Number of shares on which diluted earnings per share is calculated 84,588 83,696 84,184 83,589 Unexercised stock options with an exercise price greater than the average market price and restricted stock units not included in the computation because they were anti-dilutive 217 646 321 833

Equity

Equity9 Months Ended
Mar. 31, 2021
Equity [Abstract]
EQUITYEQUITY A summary of the changes in the carrying amounts of total equity, Kennametal Shareholders’ equity and equity attributable to noncontrolling interests for the three months ending March 31, 2021 and 2020 is as follows: Kennametal Shareholders’ Equity (in thousands, except per share amounts) Capital stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Non-controlling interests Total equity Balance as of December 31, 2020 $ 104,330 $ 547,754 $ 969,301 $ (342,231) $ 40,535 $ 1,319,689 Net income — — 21,621 — 1,364 22,985 Other comprehensive loss — — — (16,572) (730) (17,302) Dividend reinvestment 2 48 — — — 50 Capital stock issued under employee benefit and stock plans (3) 148 8,768 — — — 8,916 Purchase of capital stock (2) (48) — — — (50) Cash dividends ($0.20 per share) — — (16,707) — — (16,707) Total equity, March 31, 2021 $ 104,478 $ 556,522 $ 974,215 $ (358,803) $ 41,169 $ 1,317,581 Kennametal Shareholders’ Equity (in thousands, except per share amounts) Capital stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Non-controlling interests Total equity Balance as of December 31, 2019 $ 103,618 $ 536,522 $ 1,044,247 $ (378,219) $ 40,859 $ 1,347,027 Net income (loss) — — 2,917 — (676) 2,241 Other comprehensive loss — — — (31,978) (1,983) (33,961) Dividend reinvestment 2 50 — — — 52 Capital stock issued under employee benefit and stock plans (3) 24 74 — — — 98 Purchase of capital stock (2) (50) — — — (52) Cash dividends ($0.20 per share) — — (16,582) — — (16,582) Total equity, March 31, 2020 $ 103,642 $ 536,596 $ 1,030,582 $ (410,197) $ 38,200 $ 1,298,823 (3) Net of restricted stock units delivered upon vesting to satisfy tax withholding requirements. A summary of the changes in the carrying amounts of total equity, Kennametal Shareholders’ equity and equity attributable to noncontrolling interests for the nine months ending March 31, 2021 and 2020 is as follows: Kennametal Shareholders’ Equity (in thousands, except per share amounts) Capital stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Non-controlling interests Total equity Balance as of June 30, 2020 $ 103,654 $ 538,575 $ 1,004,898 $ (417,242) $ 38,903 $ 1,268,788 Net income — — 19,333 — 3,042 22,375 Other comprehensive income — — — 58,439 1,904 60,343 Dividend reinvestment 6 144 — — — 150 Capital stock issued under employee benefit and stock plans (3) 824 18,258 — — — 19,082 Purchase of capital stock (6) (144) — — — (150) Cash dividends ($0.60 per share) — — (50,016) — — (50,016) Cash dividends to non-controlling interests — — — — (1,361) (1,361) Other — (311) — — (1,319) (1,630) Total equity, March 31, 2021 $ 104,478 $ 556,522 $ 974,215 $ (358,803) $ 41,169 $ 1,317,581 Kennametal Shareholders’ Equity (in thousands, except per share amounts) Capital stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Non-controlling interests Total equity Balance as of June 30, 2019 $ 103,026 $ 528,827 $ 1,076,862 $ (373,543) $ 39,532 $ 1,374,704 Net income (loss) — — 3,445 — (23) 3,422 Other comprehensive loss — — — (36,654) (2,836) (39,490) Dividend reinvestment 6 151 — — — 157 Capital stock issued under employee benefit and stock plans (3) 616 7,769 — — — 8,385 Purchase of capital stock (6) (151) — — — (157) Additions to noncontrolling interest — — — — 1,527 1,527 Cash dividends ($0.60 per share) — — (49,725) — — (49,725) Total equity, March 31, 2020 $ 103,642 $ 536,596 $ 1,030,582 $ (410,197) $ 38,200 $ 1,298,823 (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 Loss9 Months Ended
Mar. 31, 2021
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive LossACCUMULATED OTHER COMPREHENSIVE LOSS The components of, and changes in, accumulated other comprehensive loss (AOCL) were as follows, net of tax, for the nine months ended March 31, 2021: (in thousands) Pension and other postretirement benefits Currency translation adjustment Derivatives Total Attributable to Kennametal: Balance, June 30, 2020 $ (232,634) $ (181,027) $ (3,581) $ (417,242) Other comprehensive (loss) income before reclassifications (5,489) 47,108 9,272 50,891 Amounts reclassified from AOCL 7,758 — (210) 7,548 Net current period other comprehensive 2,269 47,108 9,062 58,439 AOCL, March 31, 2021 $ (230,365) $ (133,919) $ 5,481 $ (358,803) Attributable to noncontrolling interests: Balance, June 30, 2020 $ — $ (5,909) $ — $ (5,909) Other comprehensive income before — 1,904 — 1,904 Net current period other comprehensive — 1,904 — 1,904 AOCL, March 31, 2021 $ — $ (4,005) $ — $ (4,005) The components of, and changes in, AOCL were as follows, net of tax, for the nine months ended March 31, 2020: (in thousands) Pension and other postretirement benefits Currency translation adjustment Derivatives Total Attributable to Kennametal: Balance, June 30, 2019 $ (222,270) $ (147,595) $ (3,678) $ (373,543) Other comprehensive income (loss) before reclassifications 2,123 (44,855) (144) (42,876) Amounts reclassified from AOCL 5,916 — 306 6,222 Net current period other comprehensive 8,039 (44,855) 162 (36,654) AOCL, March 31, 2020 $ (214,231) $ (192,450) $ (3,516) $ (410,197) Attributable to noncontrolling interests: Balance, June 30, 2019 $ — $ (3,450) $ — $ (3,450) Other comprehensive loss before — (2,836) — (2,836) Net current period other comprehensive loss — (2,836) — (2,836) AOCL, March 31, 2020 $ — $ (6,286) $ — $ (6,286) Reclassifications out of AOCL for the three and nine months ended March 31, 2021 and 2020 consisted of the following: Three Months Ended March 31, Nine Months Ended March 31, (in thousands) 2021 2020 2021 2020 Affected line item in the Income Statement Losses and (gains) on cash flow hedges: Forward starting interest rate swaps $ 3,068 $ 611 $ 4,337 $ 1,833 Interest expense Currency exchange contracts — 75 (24) (1,428) Cost of goods sold and other income, net Total before tax 3,068 686 4,313 405 Tax impact (4,216) (168) (4,523) (99) Provision/benefit on/from income taxes Net of tax $ (1,148) $ 518 $ (210) $ 306 Pension and other postretirement benefits: Amortization of transition obligations $ 24 $ 23 $ 70 $ 67 Other income, net Amortization of prior service credit (61) (56) (182) (169) Other income, net Recognition of actuarial losses 3,508 2,661 10,420 7,970 Other income, net Total before tax 3,471 2,628 10,308 7,868 Tax impact (892) (662) (2,550) (1,952) Provision/benefit on/from income taxes Net of tax $ 2,579 $ 1,966 $ 7,758 $ 5,916 The amount of income tax allocated to each component of other comprehensive income (loss) for the three months ended March 31, 2021 and 2020 were as follows: 2021 2020 (in thousands) Pre-tax Tax impact Net of tax Pre-tax Tax impact Net of tax Unrealized gain (loss) on derivatives designated and qualified as cash flow hedges $ 6,319 $ (1,548) $ 4,771 $ (1,325) $ 325 $ (1,000) Reclassification of unrealized (gain) loss on derivatives designated and qualified as cash flow hedges 3,068 (4,216) (1,148) 686 (168) 518 Unrecognized net pension and other postretirement benefit gain 2,804 (772) 2,032 3,295 (722) 2,573 Reclassification of net pension and other postretirement benefit loss 3,471 (892) 2,579 2,628 (662) 1,966 Foreign currency translation adjustments (24,604) (932) (25,536) (38,103) 85 (38,018) Other comprehensive (loss) income $ (8,942) $ (8,360) $ (17,302) $ (32,819) $ (1,142) $ (33,961) The amount of income tax allocated to each component of other comprehensive income (loss) for the nine months ended March 31, 2021 and 2020 were as follows: 2021 2020 (in thousands) Pre-tax Tax impact Net of tax Pre-tax Tax impact Net of tax Unrealized gain (loss) on derivatives designated and qualified as cash flow hedges $ 12,281 $ (3,009) $ 9,272 $ (191) $ 47 $ (144) Reclassification of unrealized loss (gain) on derivatives designated and qualified as cash flow hedges 4,313 (4,523) (210) 405 (99) 306 Unrecognized net pension and other postretirement benefit (loss) gain (7,109) 1,620 (5,489) 2,876 (753) 2,123 Reclassification of net pension and other postretirement benefit loss 10,308 (2,550) 7,758 7,868 (1,952) 5,916 Foreign currency translation adjustments 49,174 (162) 49,012 (47,809) 118 (47,691) Other comprehensive income (loss) $ 68,967 $ (8,624) $ 60,343 $ (36,851) $ (2,639) $ (39,490)

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets9 Months Ended
Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETSGOODWILL AND OTHER INTANGIBLE ASSETS December Quarter of Fiscal 2020 Impairment Charge In the December quarter of fiscal 2020, the Company experienced deteriorating market conditions, primarily in general engineering and transportation applications in India and China, in addition to overall global weakness in the manufacturing sector. In view of these declining conditions and the significant detrimental effect on cash flows and actual and projected revenue and earnings compared with the prior annual impairment test, we determined that an impairment triggering event had occurred and performed an interim quantitative impairment test of our goodwill, indefinite-lived trademark intangible asset and other long-lived assets of our former Widia reporting unit. We evaluated the recoverability of goodwill for the reporting unit by comparing its carrying value with the fair values determined using a combination of a discounted cash flow analysis and market multiples based upon historical and projected financial information. As a result of this test, we recorded a non-cash pre-tax impairment charge during the three months ended December 31, 2019 of $14.6 million in the former Widia segment, which is now part of the Metal Cutting segment as of July 1, 2020, of which $13.1 million was for goodwill and $1.5 million was for an indefinite-lived trademark intangible asset. These impairment charges are recorded in restructuring and asset impairment charges in our condensed consolidated statements of income. March Quarter of Fiscal 2020 March Impairment Charge In the March quarter of fiscal 2020, the decline in actual and projected financial results for the Widia reporting unit, primarily as a result of the COVID-19 pandemic, represented an interim impairment triggering event because there was essentially zero cushion between the reporting unit's carrying value and fair value as of March 31, 2020. As a result, we performed an interim quantitative impairment test of goodwill and the indefinite-lived trademark intangible asset for the Widia reporting unit. We evaluated the recoverability of goodwill for the reporting unit by comparing the fair value with its carrying value, with the fair values determined using a combination of a discounted cash flow analysis and market multiples based upon historical and projected financial information. As a result of this interim test, we recorded a non-cash pre-tax impairment charge during the three months ended March 31, 2020 of $15.6 million in the Widia segment, of which $13.7 million was for goodwill and $1.9 million was for an indefinite-lived trademark intangible asset. These impairment charges were recorded in restructuring and asset impairment charges in our condensed consolidated statements of income. No impairment was recorded for the other Widia long-lived assets. Subsequent to the impairment charges recorded in the March quarter of fiscal 2020, there is no remaining goodwill for the Widia reporting unit and the carrying value of the indefinite-lived trademark at March 31, 2021 is $11.7 million. Divestiture Impact on Other Intangible Assets During the three months ended December 31, 2019, we completed the sale of certain assets of the non-core specialty alloys and metals business within the Infrastructure segment, see Note 3. As a result of this transaction, other intangibles decreased by $12.5 million in our Infrastructure segment. This decrease was recorded in the loss on divestiture account in our condensed consolidated statements of income. 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) Metal Cutting Infrastructure Total Gross goodwill $ 448,241 $ 633,211 $ 1,081,452 Accumulated impairment losses (177,661) (633,211) (810,872) Balance as of June 30, 2020 $ 270,580 $ — $ 270,580 Activity for the nine months ended March 31, 2021: Change in gross goodwill due to translation 5,468 — 5,468 Gross goodwill 453,709 633,211 1,086,920 Accumulated impairment losses (177,661) (633,211) (810,872) Balance as of March 31, 2021 $ 276,048 $ — $ 276,048 The components of our other intangible assets were as follows: Estimated March 31, 2021 June 30, 2020 (in thousands) Gross Carrying Accumulated Gross Carrying Accumulated Technology-based and other 4 to 20 $ 33,373 $ (23,977) $ 32,713 $ (22,612) Customer-related 10 to 21 182,840 (95,662) 181,408 (88,112) Unpatented technology 10 to 30 31,896 (19,918) 31,586 (17,890) Trademarks 5 to 20 13,229 (9,763) 13,087 (8,772) Trademarks Indefinite 11,669 — 11,160 — Total $ 273,007 $ (149,320) $ 269,954 $ (137,386)

Segment Data

Segment Data9 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]
SEGMENT DATASEGMENT DATA Effective July 1, 2020, as a result of a change in commercial strategy, organizational structure, and the way performance is assessed and resources are allocated, the Industrial and Widia businesses were combined to form one Metal Cutting business. The Infrastructure business remained unchanged. Therefore, we currently operate in two reportable segments consisting of Metal Cutting and Infrastructure. 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 allocating resources, making operating decisions and assessing performance and the availability of separate financial results. We do not allocate certain corporate expenses related to executive retirement plans, our Board of Directors, strategic initiatives, and certain other costs and report them in Corporate, and our reportable operating segments do not represent the aggregation of two or more operating segments. METAL CUTTING The Metal Cutting segment develops and manufactures high performance tooling and metal cutting products and services and offers an assortment of standard and custom metal cutting solutions to diverse end markets, including aerospace, general engineering, energy and transportation. The products include milling, hole making, turning, threading and toolmaking systems used in the manufacture of airframes, aero engines, trucks and automobiles, ships and various types of industrial equipment. We leverage advanced manufacturing capabilities in combination with varying levels of customization to solve our customers’ toughest challenges and deliver improved productivity for a wide range of applications . Metal Cutting markets its products under the Kennametal ® , WIDIA ® , WIDIA Hanita ® and WIDIA GTD ® brands through its direct sales force, a network of independent and national 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. INFRASTRUCTURE Our Infrastructure segment produces engineered tungsten carbide and ceramic components, earth-cutting tools, and advanced metallurgical powders, primarily for the energy, earthworks and general engineering end markets. These wear-resistant products include compacts, nozzles, frac seats and custom components used in oil and gas and petrochemical industries; rod blanks and abrasive water jet nozzles for general industries; earth cutting tools and systems used in underground mining, trenching and foundation drilling and road milling; tungsten carbide powders for the oil and gas, aerospace and process industries; and ceramics used by the packaging industry for metallization of films and papers. We combine deep metallurgical and engineering expertise with advanced manufacturing capabilities to deliver solutions that drive improved productivity for our customers. Infrastructure markets its products primarily under the Kennametal ® brand and sells through a direct sales force as well as through distributors. Our sales and operating income (loss) by segment are as follows: Three Months Ended March 31, Nine Months Ended March 31, (in thousands) 2021 2020 2021 2020 Sales: Metal Cutting $ 308,144 $ 303,459 $ 838,937 $ 951,123 Infrastructure 176,514 179,625 486,533 555,129 Total sales $ 484,658 $ 483,084 $ 1,325,470 $ 1,506,252 Operating income (loss): Metal Cutting $ 22,674 $ 16,619 $ 12,741 $ 749 Infrastructure 18,282 21,941 31,815 7,679 Corporate (1,434) (667) (3,178) (1,797) Total operating income 39,522 37,893 41,378 6,631 Interest expense 20,928 7,897 39,823 23,834 Other income, net (2,692) (2,438) (10,568) (9,330) Income (loss) before income taxes $ 21,286 $ 32,434 $ 12,123 $ (7,873) The following table presents Kennametal's revenue disaggregated by geography: Three Months Ended March 31, 2021 March 31, 2020 (in thousands) Metal Cutting Infrastructure Total Kennametal Metal Cutting Infrastructure Total Kennametal Americas 37% 58% 45% 42% 64% 50% EMEA 40 17 31 38 18 30 Asia Pacific 23 25 24 20 18 20 Nine Months Ended March 31, 2021 March 31, 2020 (in thousands) Metal Cutting Infrastructure Total Kennametal Metal Cutting Infrastructure Total Kennametal Americas 38% 56% 45% 42% 62% 50% EMEA 38 19 31 37 18 30 Asia Pacific 24 25 24 21 20 20 The following tables presents Kennametal's revenue disaggregated by end market: Three Months Ended March 31, 2021 (in thousands) Metal Cutting Infrastructure Total Kennametal General engineering 53% 37% 48% Transportation 32 — 20 Aerospace 8 — 5 Energy 7 26 14 Earthworks — 37 13 Three Months Ended March 31, 2020 (in thousands) Metal Cutting Infrastructure Total Kennametal General engineering 52% 35% 46% Transportation 28 — 18 Aerospace 12 — 7 Energy 8 29 16 Earthworks — 36 13 Nine Months Ended March 31, 2021 (in thousands) Metal Cutting Infrastructure Total Kennametal General engineering 53% 36% 47% Transportation 31 — 20 Aerospace 8 — 5 Energy 8 25 14 Earthworks — 39 14 Nine Months Ended March 31, 2020 (in thousands) Metal Cutting Infrastructure Total Kennametal General engineering 52% 34% 45% Transportation 28 — 18 Aerospace 12 — 8 Energy 8 29 16 Earthworks — 37 13

Fair Value Measurements (Tables

Fair Value Measurements (Tables)9 Months Ended
Mar. 31, 2021
Fair Value Disclosures [Abstract]
Financial instruments at fair value on recurring basisAs of March 31, 2021, the fair values of our financial assets and financial liabilities are categorized as follows: (in thousands) Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 171 $ — $ 171 Total assets at fair value $ — $ 171 $ — $ 171 Liabilities: Derivatives (1) $ — $ 216 $ — $ 216 Total liabilities at fair value $ — $ 216 $ — $ 216 As of June 30, 2020, the fair values of our financial assets and financial liabilities are categorized as follows: (in thousands) Level 1 Level 2 Level 3 Total Assets: Derivatives (1) $ — $ 36 $ — $ 36 Total assets at fair value $ — $ 36 $ — $ 36 Liabilities: Derivatives (1) $ — $ 2,139 $ — $ 2,139 Total liabilities at fair value $ — $ 2,139 $ — $ 2,139 (1) Currency and interest rate 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)9 Months Ended
Mar. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Fair value of derivativesThe fair value of derivatives designated and not designated as hedging instruments in the condensed consolidated balance sheet are as follows: (in thousands) March 31, 2021 June 30, 2020 Derivatives designated as hedging instruments Other current assets - range forward contracts $ — $ 4 Other assets - forward starting interest rate swap contracts — 20 Other liabilities - forward starting interest rate swap contracts — (2,094) Total derivatives designated as hedging instruments — (2,070) Derivatives not designated as hedging instruments Other current assets - currency forward contracts 171 12 Other current liabilities - currency forward contracts (216) (45) Total derivatives not designated as hedging instruments (45) (33) Total derivatives $ (45) $ (2,103)
(Gains) losses related to derivatives not designated as hedging instrumentsLosses related to derivatives not designated as hedging instruments have been recognized as follows: Three Months Ended March 31, Nine Months Ended March 31, (in thousands) 2021 2020 2021 2020 Other income, net - currency forward contracts $ 1,428 $ 220 $ 20 $ 231
Schedule of Net Investment Hedges, Statements of Financial Performance and Financial Position, LocationAs of March 31, 2021, 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 €45,010 $52,772 June 25, 2021 Foreign currency-denominated intercompany loan payable 16,330 19,146 June 26, 2022 (2) Includes principal and accrued interest.

Restructuring (Tables)

Restructuring (Tables)9 Months Ended
Mar. 31, 2021
Restructuring Cost and Reserve [Line Items]
Schedule of Restructuring Reserve by Type of CostAs of March 31, 2021, $27.8 million and $8.6 million of the restructuring accrual was recorded in other current liabilities and other liabilities, respectively, in our condensed consolidated balance sheet. As of June 30, 2020, $34.9 million and $12.5 million of the restructuring accrual was recorded in other current liabilities and other liabilities, respectively. The amounts are as follows: (in thousands) June 30, 2020 Expense, net Asset Write-Down Translation Cash Expenditures March 31, 2021 Severance $ 47,303 $ 23,645 $ — $ 7,378 $ (41,886) $ 36,440 Facilities — 2,805 (2,805) — — — Other 63 — — 4 (67) — Total $ 47,366 $ 26,450 $ (2,805) $ 7,382 $ (41,953) $ 36,440

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)9 Months Ended
Mar. 31, 2021
Share-based Payment Arrangement [Abstract]
Changes in stock optionsChanges in our stock options for the nine months ended March 31, 2021 were as follows: Options Weighted Average Exercise Price Weighted Average Remaining Life (years) Aggregate Intrinsic value (in thousands) Options outstanding, June 30, 2020 646,959 $ 33.60 Exercised (252,658) 26.06 Lapsed or forfeited (32,514) 42.70 Options outstanding, March 31, 2021 361,787 $ 38.04 2.5 $ 1,317 Options vested, March 31, 2021 361,787 $ 38.04 2.5 $ 1,317 Options exercisable, March 31, 2021 361,787 $ 38.04 2.5 $ 1,317
Changes in time vesting and performance vesting restricted stock unitsChanges in our performance vesting and time vesting restricted stock units for the nine months ended March 31, 2021 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, 2020 554,633 $ 34.26 1,039,695 $ 32.48 Granted 220,876 33.49 922,460 31.86 Vested (77,284) 47.47 (476,704) 33.99 Performance metric adjustments, net (100,000) 32.92 — — Other adjustments (4,565) 30.26 — — Forfeited (90,714) 32.36 (128,647) 31.39 Unvested, March 31, 2021 502,946 $ 32.54 1,356,804 $ 31.64

Pension and Other Postretirem_2

Pension and Other Postretirement Benefits (Tables)9 Months Ended
Mar. 31, 2021
Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Net periodic pension (income)The table below summarizes the components of net periodic pension income: Three Months Ended March 31, Nine Months Ended March 31, (in thousands) 2021 2020 2021 2020 Service cost $ 429 $ 452 $ 1,264 $ 1,346 Interest cost 5,815 6,848 17,371 20,504 Expected return on plan assets (13,459) (13,539) (40,171) (40,491) Amortization of transition obligation 24 23 70 67 Amortization of prior service cost 8 13 25 38 Recognition of actuarial losses 3,431 2,597 10,190 7,777 Settlement gain — — — (122) Net periodic pension income $ (3,752) $ (3,606) $ (11,251) $ (10,881)
Other Postretirement Benefits Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Net periodic pension (income)The table below summarizes the components of net periodic other postretirement benefit cost: Three Months Ended March 31, Nine Months Ended March 31, (in thousands) 2021 2020 2021 2020 Interest cost $ 76 $ 101 $ 230 $ 303 Amortization of prior service credit (69) (69) (207) (207) Recognition of actuarial loss 77 64 230 193 Net periodic other postretirement benefit cost $ 84 $ 96 $ 253 $ 289

Inventories (Tables)

Inventories (Tables)9 Months Ended
Mar. 31, 2021
Inventory Disclosure [Abstract]
InventoriesInventories consisted of the following: (in thousands) March 31, 2021 June 30, 2020 Finished goods $ 305,478 $ 318,071 Work in process and powder blends 167,272 190,041 Raw materials 68,364 75,589 Inventories at current cost 541,114 583,701 Less: LIFO valuation (64,950) (61,254) Total inventories $ 476,164 $ 522,447

Debt (Tables)

Debt (Tables)9 Months Ended
Mar. 31, 2021
Debt Disclosure [Abstract]
Schedule of Long-term Debt InstrumentsLong-term debt consisted of the following: (in thousands) March 31, 2021 June 30, 2020 2.800% Senior Unsecured Notes due fiscal 2031, net of discount of $2.7 million at March 31, 2021 $ 297,320 $ — 4.625% Senior Unsecured Notes due fiscal 2028, net of discount of $1.6 million at March 31, 2021 and $1.7 million at June 30, 2020 298,428 298,264 3.875% Senior Unsecured Notes due fiscal 2022, net of discount of $0.1 million at June 30, 2020 — 299,940 Total term debt 595,748 598,204 Less unamortized debt issuance costs (4,076) (4,121) Total long-term debt $ 591,672 $ 594,083

Earnings Per Share (Tables) (Ta

Earnings Per Share (Tables) (Tables)9 Months Ended
Mar. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]The following table provides the computation of diluted shares outstanding for the three and nine months ended March 31, 2021 and 2020: Three Months Ended March 31, Nine Months Ended March 31, (in thousands) 2021 2020 2021 2020 Weighted-average shares outstanding during period 83,719 83,106 83,539 83,022 Add: Unexercised stock options and unvested restricted stock units 869 590 645 567 Number of shares on which diluted earnings per share is calculated 84,588 83,696 84,184 83,589 Unexercised stock options with an exercise price greater than the average market price and restricted stock units not included in the computation because they were anti-dilutive 217 646 321 833

Equity (Tables)

Equity (Tables)9 Months Ended
Mar. 31, 2021
Equity [Abstract]
Summary of the changes in the carrying amounts of total equity, Kennametal shareholders' equity and equity attributable to noncontrolling interestsA summary of the changes in the carrying amounts of total equity, Kennametal Shareholders’ equity and equity attributable to noncontrolling interests for the three months ending March 31, 2021 and 2020 is as follows: Kennametal Shareholders’ Equity (in thousands, except per share amounts) Capital stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Non-controlling interests Total equity Balance as of December 31, 2020 $ 104,330 $ 547,754 $ 969,301 $ (342,231) $ 40,535 $ 1,319,689 Net income — — 21,621 — 1,364 22,985 Other comprehensive loss — — — (16,572) (730) (17,302) Dividend reinvestment 2 48 — — — 50 Capital stock issued under employee benefit and stock plans (3) 148 8,768 — — — 8,916 Purchase of capital stock (2) (48) — — — (50) Cash dividends ($0.20 per share) — — (16,707) — — (16,707) Total equity, March 31, 2021 $ 104,478 $ 556,522 $ 974,215 $ (358,803) $ 41,169 $ 1,317,581 Kennametal Shareholders’ Equity (in thousands, except per share amounts) Capital stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Non-controlling interests Total equity Balance as of December 31, 2019 $ 103,618 $ 536,522 $ 1,044,247 $ (378,219) $ 40,859 $ 1,347,027 Net income (loss) — — 2,917 — (676) 2,241 Other comprehensive loss — — — (31,978) (1,983) (33,961) Dividend reinvestment 2 50 — — — 52 Capital stock issued under employee benefit and stock plans (3) 24 74 — — — 98 Purchase of capital stock (2) (50) — — — (52) Cash dividends ($0.20 per share) — — (16,582) — — (16,582) Total equity, March 31, 2020 $ 103,642 $ 536,596 $ 1,030,582 $ (410,197) $ 38,200 $ 1,298,823 (3) Net of restricted stock units delivered upon vesting to satisfy tax withholding requirements. A summary of the changes in the carrying amounts of total equity, Kennametal Shareholders’ equity and equity attributable to noncontrolling interests for the nine months ending March 31, 2021 and 2020 is as follows: Kennametal Shareholders’ Equity (in thousands, except per share amounts) Capital stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Non-controlling interests Total equity Balance as of June 30, 2020 $ 103,654 $ 538,575 $ 1,004,898 $ (417,242) $ 38,903 $ 1,268,788 Net income — — 19,333 — 3,042 22,375 Other comprehensive income — — — 58,439 1,904 60,343 Dividend reinvestment 6 144 — — — 150 Capital stock issued under employee benefit and stock plans (3) 824 18,258 — — — 19,082 Purchase of capital stock (6) (144) — — — (150) Cash dividends ($0.60 per share) — — (50,016) — — (50,016) Cash dividends to non-controlling interests — — — — (1,361) (1,361) Other — (311) — — (1,319) (1,630) Total equity, March 31, 2021 $ 104,478 $ 556,522 $ 974,215 $ (358,803) $ 41,169 $ 1,317,581 Kennametal Shareholders’ Equity (in thousands, except per share amounts) Capital stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Non-controlling interests Total equity Balance as of June 30, 2019 $ 103,026 $ 528,827 $ 1,076,862 $ (373,543) $ 39,532 $ 1,374,704 Net income (loss) — — 3,445 — (23) 3,422 Other comprehensive loss — — — (36,654) (2,836) (39,490) Dividend reinvestment 6 151 — — — 157 Capital stock issued under employee benefit and stock plans (3) 616 7,769 — — — 8,385 Purchase of capital stock (6) (151) — — — (157) Additions to noncontrolling interest — — — — 1,527 1,527 Cash dividends ($0.60 per share) — — (49,725) — — (49,725) Total equity, March 31, 2020 $ 103,642 $ 536,596 $ 1,030,582 $ (410,197) $ 38,200 $ 1,298,823 (3) Net of restricted stock units delivered upon vesting to satisfy tax withholding requirements.

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)9 Months Ended
Mar. 31, 2021
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Components of, and changes in accumulated other comprehensive lossThe components of, and changes in, accumulated other comprehensive loss (AOCL) were as follows, net of tax, for the nine months ended March 31, 2021: (in thousands) Pension and other postretirement benefits Currency translation adjustment Derivatives Total Attributable to Kennametal: Balance, June 30, 2020 $ (232,634) $ (181,027) $ (3,581) $ (417,242) Other comprehensive (loss) income before reclassifications (5,489) 47,108 9,272 50,891 Amounts reclassified from AOCL 7,758 — (210) 7,548 Net current period other comprehensive 2,269 47,108 9,062 58,439 AOCL, March 31, 2021 $ (230,365) $ (133,919) $ 5,481 $ (358,803) Attributable to noncontrolling interests: Balance, June 30, 2020 $ — $ (5,909) $ — $ (5,909) Other comprehensive income before — 1,904 — 1,904 Net current period other comprehensive — 1,904 — 1,904 AOCL, March 31, 2021 $ — $ (4,005) $ — $ (4,005) The components of, and changes in, AOCL were as follows, net of tax, for the nine months ended March 31, 2020: (in thousands) Pension and other postretirement benefits Currency translation adjustment Derivatives Total Attributable to Kennametal: Balance, June 30, 2019 $ (222,270) $ (147,595) $ (3,678) $ (373,543) Other comprehensive income (loss) before reclassifications 2,123 (44,855) (144) (42,876) Amounts reclassified from AOCL 5,916 — 306 6,222 Net current period other comprehensive 8,039 (44,855) 162 (36,654) AOCL, March 31, 2020 $ (214,231) $ (192,450) $ (3,516) $ (410,197) Attributable to noncontrolling interests: Balance, June 30, 2019 $ — $ (3,450) $ — $ (3,450) Other comprehensive loss before — (2,836) — (2,836) Net current period other comprehensive loss — (2,836) — (2,836) AOCL, March 31, 2020 $ — $ (6,286) $ — $ (6,286)
Reclassification out of Accumulated Other Comprehensive LossReclassifications out of AOCL for the three and nine months ended March 31, 2021 and 2020 consisted of the following: Three Months Ended March 31, Nine Months Ended March 31, (in thousands) 2021 2020 2021 2020 Affected line item in the Income Statement Losses and (gains) on cash flow hedges: Forward starting interest rate swaps $ 3,068 $ 611 $ 4,337 $ 1,833 Interest expense Currency exchange contracts — 75 (24) (1,428) Cost of goods sold and other income, net Total before tax 3,068 686 4,313 405 Tax impact (4,216) (168) (4,523) (99) Provision/benefit on/from income taxes Net of tax $ (1,148) $ 518 $ (210) $ 306 Pension and other postretirement benefits: Amortization of transition obligations $ 24 $ 23 $ 70 $ 67 Other income, net Amortization of prior service credit (61) (56) (182) (169) Other income, net Recognition of actuarial losses 3,508 2,661 10,420 7,970 Other income, net Total before tax 3,471 2,628 10,308 7,868 Tax impact (892) (662) (2,550) (1,952) Provision/benefit on/from income taxes Net of tax $ 2,579 $ 1,966 $ 7,758 $ 5,916
Income Tax Allocated to Each Component of Other Comprehensive Income [Table Text Block]The amount of income tax allocated to each component of other comprehensive income (loss) for the three months ended March 31, 2021 and 2020 were as follows: 2021 2020 (in thousands) Pre-tax Tax impact Net of tax Pre-tax Tax impact Net of tax Unrealized gain (loss) on derivatives designated and qualified as cash flow hedges $ 6,319 $ (1,548) $ 4,771 $ (1,325) $ 325 $ (1,000) Reclassification of unrealized (gain) loss on derivatives designated and qualified as cash flow hedges 3,068 (4,216) (1,148) 686 (168) 518 Unrecognized net pension and other postretirement benefit gain 2,804 (772) 2,032 3,295 (722) 2,573 Reclassification of net pension and other postretirement benefit loss 3,471 (892) 2,579 2,628 (662) 1,966 Foreign currency translation adjustments (24,604) (932) (25,536) (38,103) 85 (38,018) Other comprehensive (loss) income $ (8,942) $ (8,360) $ (17,302) $ (32,819) $ (1,142) $ (33,961) The amount of income tax allocated to each component of other comprehensive income (loss) for the nine months ended March 31, 2021 and 2020 were as follows: 2021 2020 (in thousands) Pre-tax Tax impact Net of tax Pre-tax Tax impact Net of tax Unrealized gain (loss) on derivatives designated and qualified as cash flow hedges $ 12,281 $ (3,009) $ 9,272 $ (191) $ 47 $ (144) Reclassification of unrealized loss (gain) on derivatives designated and qualified as cash flow hedges 4,313 (4,523) (210) 405 (99) 306 Unrecognized net pension and other postretirement benefit (loss) gain (7,109) 1,620 (5,489) 2,876 (753) 2,123 Reclassification of net pension and other postretirement benefit loss 10,308 (2,550) 7,758 7,868 (1,952) 5,916 Foreign currency translation adjustments 49,174 (162) 49,012 (47,809) 118 (47,691) Other comprehensive income (loss) $ 68,967 $ (8,624) $ 60,343 $ (36,851) $ (2,639) $ (39,490)

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)9 Months Ended
Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
The carrying amount of goodwillA 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) Metal Cutting Infrastructure Total Gross goodwill $ 448,241 $ 633,211 $ 1,081,452 Accumulated impairment losses (177,661) (633,211) (810,872) Balance as of June 30, 2020 $ 270,580 $ — $ 270,580 Activity for the nine months ended March 31, 2021: Change in gross goodwill due to translation 5,468 — 5,468 Gross goodwill 453,709 633,211 1,086,920 Accumulated impairment losses (177,661) (633,211) (810,872) Balance as of March 31, 2021 $ 276,048 $ — $ 276,048
The components of intangible assetsThe components of our other intangible assets were as follows: Estimated March 31, 2021 June 30, 2020 (in thousands) Gross Carrying Accumulated Gross Carrying Accumulated Technology-based and other 4 to 20 $ 33,373 $ (23,977) $ 32,713 $ (22,612) Customer-related 10 to 21 182,840 (95,662) 181,408 (88,112) Unpatented technology 10 to 30 31,896 (19,918) 31,586 (17,890) Trademarks 5 to 20 13,229 (9,763) 13,087 (8,772) Trademarks Indefinite 11,669 — 11,160 — Total $ 273,007 $ (149,320) $ 269,954 $ (137,386)

Segment Data (Tables)

Segment Data (Tables)9 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]
Disaggregation of Revenue [Table Text Block]The following table presents Kennametal's revenue disaggregated by geography: Three Months Ended March 31, 2021 March 31, 2020 (in thousands) Metal Cutting Infrastructure Total Kennametal Metal Cutting Infrastructure Total Kennametal Americas 37% 58% 45% 42% 64% 50% EMEA 40 17 31 38 18 30 Asia Pacific 23 25 24 20 18 20 Nine Months Ended March 31, 2021 March 31, 2020 (in thousands) Metal Cutting Infrastructure Total Kennametal Metal Cutting Infrastructure Total Kennametal Americas 38% 56% 45% 42% 62% 50% EMEA 38 19 31 37 18 30 Asia Pacific 24 25 24 21 20 20 The following tables presents Kennametal's revenue disaggregated by end market: Three Months Ended March 31, 2021 (in thousands) Metal Cutting Infrastructure Total Kennametal General engineering 53% 37% 48% Transportation 32 — 20 Aerospace 8 — 5 Energy 7 26 14 Earthworks — 37 13 Three Months Ended March 31, 2020 (in thousands) Metal Cutting Infrastructure Total Kennametal General engineering 52% 35% 46% Transportation 28 — 18 Aerospace 12 — 7 Energy 8 29 16 Earthworks — 36 13 Nine Months Ended March 31, 2021 (in thousands) Metal Cutting Infrastructure Total Kennametal General engineering 53% 36% 47% Transportation 31 — 20 Aerospace 8 — 5 Energy 8 25 14 Earthworks — 39 14 Nine Months Ended March 31, 2020 (in thousands) Metal Cutting Infrastructure Total Kennametal General engineering 52% 34% 45% Transportation 28 — 18 Aerospace 12 — 8 Energy 8 29 16 Earthworks — 37 13
Sales and operating income (loss) by segment and segment assetsOur sales and operating income (loss) by segment are as follows: Three Months Ended March 31, Nine Months Ended March 31, (in thousands) 2021 2020 2021 2020 Sales: Metal Cutting $ 308,144 $ 303,459 $ 838,937 $ 951,123 Infrastructure 176,514 179,625 486,533 555,129 Total sales $ 484,658 $ 483,084 $ 1,325,470 $ 1,506,252 Operating income (loss): Metal Cutting $ 22,674 $ 16,619 $ 12,741 $ 749 Infrastructure 18,282 21,941 31,815 7,679 Corporate (1,434) (667) (3,178) (1,797) Total operating income 39,522 37,893 41,378 6,631 Interest expense 20,928 7,897 39,823 23,834 Other income, net (2,692) (2,438) (10,568) (9,330) Income (loss) before income taxes $ 21,286 $ 32,434 $ 12,123 $ (7,873)

Divestiture (Details)

Divestiture (Details) - USD ($) $ in Thousands3 Months Ended9 Months Ended
Mar. 31, 2021Mar. 31, 2020Mar. 31, 2021Mar. 31, 2020
Divestiture [Abstract]
Proceeds from divestiture (Note 3) $ 0 $ 23,950
Disposition of Businesses, Net Book Value of Assets at Closing29,500
Loss on divestiture (Note 3) $ 0 $ 0 $ 0 $ 6,517

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in ThousandsMar. 31, 2021Jun. 30, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives Assets $ 171 $ 36
Total assets at fair value171 36
Derivatives Liabilities216 2,139
Total liabilities at fair value216 2,139
Fair Value, Recurring [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives Assets171 36
Total assets at fair value171 36
Derivatives Liabilities216 2,139
Total liabilities at fair value $ 216 $ 2,139

Derivative Instruments and He_3

Derivative Instruments and Hedging Activities - Fair Value of Derivatives Designated and Not Designated as Hedging Instruments (Details) - USD ($) $ in ThousandsMar. 31, 2021Jun. 30, 2020
Fair value of derivatives
Derivative, Fair Value, Net $ (45) $ (2,103)
Designated as Hedging Instrument [Member]
Fair value of derivatives
Derivative, Fair Value, Net0 (2,070)
Not Designated as Hedging Instrument [Member]
Fair value of derivatives
Derivative, Fair Value, Net(45)(33)
Range Forward Contracts [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member]
Fair value of derivatives
Derivative assets designated as hedging instruments0 4
Forward Starting Interest Rate Swap Contracts [Member] | Designated as Hedging Instrument [Member] | Other Assets [Member]
Fair value of derivatives
Derivative assets designated as hedging instruments0 20
Forward Starting Interest Rate Swap Contracts [Member] | Designated as Hedging Instrument [Member] | Other Liabilities [Member]
Fair value of derivatives
Derivative liabilities designated as hedging instruments0 (2,094)
Currency Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | Other Current Assets [Member]
Fair value of derivatives
Derivative assets designated as hedging instruments171 12
Currency Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | Other Current Liabilities [Member]
Fair value of derivatives
Derivative liabilities designated as hedging instruments $ (216) $ (45)

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 Thousands3 Months Ended9 Months Ended
Mar. 31, 2021Mar. 31, 2020Mar. 31, 2021Mar. 31, 2020
Gains and losses related to cash flow hedges
Gains recognized in other comprehensive (loss) income, net $ 6,319 $ (1,325) $ 12,281 $ (191)
Net Investment Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Derivative Used in Net Investment Hedge, Net of Tax(1,500)(1,100)(1,000)
Currency Forward Contracts [Member] | Other Nonoperating Income (Expense) [Member] | Not Designated as Hedging Instrument [Member]
Derivative Instruments, (Gain) Loss Recognized in Income, Net
Other income, net - currency forward contracts $ 1,428 $ 220 $ 20 $ 231

Derivative Instruments and He_5

Derivative Instruments and Hedging Activities (Details Textual) € in Thousands, $ in Thousands3 Months Ended9 Months Ended
Mar. 31, 2021USD ($)Mar. 31, 2020USD ($)Mar. 31, 2021USD ($)Mar. 31, 2020USD ($)Mar. 31, 2021EUR (€)Jun. 30, 2020USD ($)Jun. 30, 2020EUR (€)
Derivatives, Fair Value [Line Items]
Settlement of interest rate swap agreement (Note 5) $ 10,198
Derivative Instruments and Hedging Activities (Textual) [Abstract]
Gains or losses recognized in earnings due to ineffectiveness and excluded from effectiveness testing0
Range Forward Contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount $ 2,200
Net Investment Hedge Maturing on June 26, 2022 [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount $ 19,146 19,146 € 16,330
Net Investment Hedging [Member]
Derivatives, Fair Value [Line Items]
Derivative, Amount of Hedged Item | €60,900 € 15,900
Forward Starting Interest Rate Swap Contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount200,000
Net Investment Hedge Maturing on June 25, 2021
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount52,772 52,772 € 45,010
Net Investment Hedging [Member]
Derivatives, Fair Value [Line Items]
Gain (Loss) on Derivative Used in Net Investment Hedge, Net of Tax(1,500) $ (1,100) $ (1,000)
Designated as Hedging Instrument [Member] | Other Assets [Member] | Forward Starting Interest Rate Swap Contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset0 0 20
Designated as Hedging Instrument [Member] | Other Liabilities [Member] | Forward Starting Interest Rate Swap Contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value, Gross Liability $ 0 $ 0 $ 2,094

Restructuring and Related Cha_2

Restructuring and Related Charges - Restructuring Accrual (Details) - USD ($) $ in Thousands3 Months Ended9 Months Ended
Mar. 31, 2021Mar. 31, 2020Mar. 31, 2021Mar. 31, 2020
Restructuring Reserve [Abstract]
Beginning Balance $ 47,366
Restructuring Charges $ (900) $ 1,800 26,450 $ 54,500
Asset Write-Down(2,805)
Translation7,382
Cash Expenditures(41,953)
Ending Balance36,440 36,440
Severance [Member]
Restructuring Reserve [Abstract]
Beginning Balance47,303
Restructuring Charges23,645
Asset Write-Down0
Translation7,378
Cash Expenditures(41,886)
Ending Balance36,440 36,440
Facilities [Member]
Restructuring Reserve [Abstract]
Beginning Balance0
Restructuring Charges2,805
Asset Write-Down(2,805)
Translation0
Cash Expenditures0
Ending Balance0 0
Other Restructuring [Member]
Restructuring Reserve [Abstract]
Beginning Balance63
Restructuring Charges0
Asset Write-Down0
Translation4
Cash Expenditures(67)
Ending Balance $ 0 $ 0

Restructuring and Related Cha_3

Restructuring and Related Charges - Narrative (Details) - USD ($) $ in Thousands3 Months Ended9 Months Ended
Mar. 31, 2021Mar. 31, 2020Mar. 31, 2021Mar. 31, 2020Jun. 30, 2020
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve $ 36,440 $ 36,440 $ 47,366
Restructuring and Related Cost, Incurred Cost2,100 $ 5,800 34,900 $ 65,100
Restructuring Charges(900)1,800 26,450 54,500
Restructuring Charges Related to Inventory Disposals(100)200 300 600
Infrastructure [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Incurred Cost(400)2,900
Metal Cutting
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Incurred Cost2,500 32,000
FY20 Restructuring Actions [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Cost Incurred to Date54,800 54,800
FY20 Restructuring Actions [Member] | Infrastructure [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Cost Incurred to Date8,300 8,300
FY20 Restructuring Actions [Member] | Metal Cutting
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Cost Incurred to Date46,500 46,500
FY21 Restructuring Actions [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Cost Incurred to Date76,700 76,700
FY21 Restructuring Actions [Member] | Minimum [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost90,000 90,000
FY21 Restructuring Actions [Member] | Maximum [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost95,000 95,000
FY21 Restructuring Actions [Member] | Infrastructure [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Cost Incurred to Date5,800 5,800
FY21 Restructuring Actions [Member] | Metal Cutting
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Cost Incurred to Date71,000 71,000
Cost of Sales [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Related Charges Recorded in Cost of Goods Sold or Operating Expense3,000 $ 4,000 8,500 $ 10,600
Other Restructuring [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve0 0 63
Restructuring Charges0
Other Current Liabilities [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve27,800 27,800 34,900
Other Liabilities [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve $ 8,600 $ 8,600 $ 12,500

Stock-Based Compensation - Chan

Stock-Based Compensation - Changes in Stock Options (Details)9 Months Ended
Mar. 31, 2021USD ($)$ / sharesshares
Changes in stock options
Options outstanding, June 30, 2020 | shares646,959
Options, Exercised | shares(252,658)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | shares(32,514)
Options outstanding, March 31, 2021 | shares361,787
Options vested and expected to vest, March 31, 2021 | shares361,787
Options exercisable, March 31, 2021 | shares361,787
Weighted Average Exercise Price, Options outstanding, June 30, 2020 | $ / shares $ 33.60
Weighted Average Exercise Price, Exercised | $ / shares26.06
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $ / shares42.70
Weighted Average Exercise Price, Options outstanding, March 31, 2021 | $ / shares38.04
Weighted Average Exercise Price, Option vested and expected to vest, March 31, 2021 | $ / shares38.04
Weighted Average Exercise Price, Options exercisable, March 31, 2021 | $ / shares $ 38.04
Weighted Average Remaining Life, Options outstanding, March 31, 20212 years 6 months
Weighted Average Remaining Life, Options vested and expected to vest, March 31, 20212 years 6 months
Weighted Average Remaining Life, Options exercisable, March 31, 20212 years 6 months
Aggregate Intrinsic value, Options outstanding, March 31, 2021 | $ $ 1,317,000
Aggregate Intrinsic Value, Options vested and expected to vest, March 31, 2021 | $1,317,000
Aggregate Intrinsic Value, Options exercisable, March 31, 2021 | $ $ 1,317,000

Stock-Based Compensation - Ch_2

Stock-Based Compensation - Changes in Restricted Stock Units (Details)9 Months Ended
Mar. 31, 2021$ / sharesshares
Restricted Stock Units - Performance Vesting [Member]
Changes in restricted stock awards
Unvested restricted stock awards, June 30, 2020, Shares | shares554,633
Granted, Shares | shares220,876
Vested, Shares | shares(77,284)
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Performance Metric Adjustments, net | shares(100,000)
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Forfeitures and Expirations | shares(4,565)
Forfeited, Shares | shares(90,714)
Unvested restricted stock awards, March 31, 2021 | shares502,946
Weighted Average Fair Value, Unvested restricted stock awards, June 30, 2020 | $ / shares $ 34.26
Weighted Average Fair Value, Granted | $ / shares33.49
Weighted Average Fair Value, Vested | $ / shares47.47
Share-based Compensation Arrangements by Share-based Payment Award, Options, Performance Metric Adjustments Share Increase (Decrease) In Period, Weighted Average Exercise Price | $ / shares32.92
Share-based Compensation Arrangements by Share-based Payment Award, Options, Other Share Increase (Decrease) in Period, Weighted Average Exercise Price | $ / shares30.26
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares32.36
Weighted Average Fair Value, Unvested restricted stock awards, March 31, 2021 | $ / shares $ 32.54
Restricted Stock Units - Time Vesting [Member]
Changes in restricted stock awards
Unvested restricted stock awards, June 30, 2020, Shares | shares1,039,695
Granted, Shares | shares922,460
Vested, Shares | shares(476,704)
Performance metric adjustments, net, Shares | shares0
Forfeited, Shares | shares(128,647)
Unvested restricted stock awards, March 31, 2021 | shares1,356,804
Weighted Average Fair Value, Unvested restricted stock awards, June 30, 2020 | $ / shares $ 32.48
Weighted Average Fair Value, Granted | $ / shares31.86
Weighted Average Fair Value, Vested | $ / shares33.99
Weighted Average Fair Value, Performance Metric Not Achieved | $ / shares0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares31.39
Weighted Average Fair Value, Unvested restricted stock awards, March 31, 2021 | $ / shares $ 31.64

Stock-Based Compensation (Detai

Stock-Based Compensation (Details Textual) - USD ($) $ in Millions9 Months Ended
Mar. 31, 2021Mar. 31, 2020
Stock-Based Compensation (Textual) [Abstract]
Cash received from the exercise of capital stock option $ 5.6 $ 0.7
Stock Option [Member]
Stock-Based Compensation (Textual) [Abstract]
Unrecognized compensation cost0
Total Intrinsic value of options exercised2.2 0.3
Restricted Stock Units (RSUs) [Member]
Stock-Based Compensation (Textual) [Abstract]
Compensation expense related to time vesting and performance vesting restricted stock units18.7 $ 13.7
Unrecognized compensation cost $ 28.8
Unrecognized compensation costs, weighted average period2 years

Pension and Other Postretirem_3

Pension and Other Postretirement Benefits - Components of Net Periodic Pension Income (Details) - Pension plans contribution [Member] - USD ($) $ in Thousands3 Months Ended9 Months Ended
Mar. 31, 2021Mar. 31, 2020Mar. 31, 2021Mar. 31, 2020
Net periodic pension income
Service cost $ 429 $ 452 $ 1,264 $ 1,346
Interest cost5,815 6,848 17,371 20,504
Expected return on plan assets(13,459)(13,539)(40,171)(40,491)
Amortization of transition obligation24 23 70 67
Amortization of prior service cost (credit)8 13 25 38
Recognition of actuarial losses3,431 2,597 10,190 7,777
Settlement gain0 0 0 (122)
Net periodic pension income $ (3,752) $ (3,606) $ (11,251) $ (10,881)

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 Thousands3 Months Ended9 Months Ended
Mar. 31, 2021Mar. 31, 2020Mar. 31, 2021Mar. 31, 2020
Net periodic other postretirement benefit costs
Interest cost $ 76 $ 101 $ 230 $ 303
Amortization of prior service credit(69)(69)(207)(207)
Recognition of actuarial loss77 64 230 193
Net periodic other postretirement benefit cost $ 84 $ 96 $ 253 $ 289

Inventories (Details)

Inventories (Details) - USD ($) $ in ThousandsMar. 31, 2021Jun. 30, 2020
Inventories
Finished goods $ 305,478 $ 318,071
Work in process and powder blends167,272 190,041
Raw materials68,364 75,589
Inventories at current cost541,114 583,701
Less: LIFO valuation(64,950)(61,254)
Total inventories $ 476,164 $ 522,447
Inventories (Textual) [Abstract]
Percentage of inventories valued by using LIFO method39.00%43.00%

Long-Term Debt (Details)

Long-Term Debt (Details) - USD ($)Feb. 23, 2021Jun. 07, 2018Feb. 14, 2012Mar. 31, 2021Jun. 30, 2020
Long-Term Debt (Additional Textual) [Abstract]
Fixed rate at fair market value $ 628,400,000 $ 630,200,000
Debt Instrument [Line Items]
Long-term Debt and Lease Obligation, Including Current Maturities595,748,000 598,204,000
Debt Issuance Costs, Net(4,076,000)(4,121,000)
Long-term Debt and Lease Obligation591,672,000 594,083,000
Long-term Debt, Maturities, Repayments of Principal in Rolling after Year Five300,000,000
Long-Term Debt, Maturities, Repayments Of Principal In Rolling After Year Ten300,000,000
Settlement of interest rate swap agreement (Note 5)10,198,000
Make-whole premium on early extinguishment of debt (Note 10)(9,639,000)
ThreePointEightSevenFivePercentSeniorUnsecuredNotesDueInTwoThousandAndTwentyTwo [Member]
Long-Term Debt (Additional Textual) [Abstract]
Proceeds from Issuance of Senior Long-term Debt $ 300,000,000
Debt Instrument, Interest Rate, Stated Percentage3.875%
Debt Instrument [Line Items]
Long-term Debt299,940,000
Debt Instrument, Interest Rate, Stated Percentage3.875%
Debt Instrument, Unamortized Discount100,000
Four Point Six Two Five Percent Senior Unsecured Notes Due In Two Thousand And Twenty Eight Member Member
Long-Term Debt (Additional Textual) [Abstract]
Proceeds from Issuance of Senior Long-term Debt $ 300,000,000
Debt Instrument, Interest Rate, Stated Percentage4.625%
Debt Instrument [Line Items]
Long-term Debt298,428,000 298,264,000
Debt Instrument, Interest Rate, Stated Percentage4.625%
Debt Instrument, Unamortized Discount1,600,000 1,700,000
Two Point Eight Percent Senior Unsecured Notes Due In Two Thousand And Thirty One
Long-Term Debt (Additional Textual) [Abstract]
Proceeds from Issuance of Senior Long-term Debt $ 300,000,000
Debt Instrument, Interest Rate, Stated Percentage2.80%
Debt Instrument [Line Items]
Long-term Debt297,320,000
Debt Instrument, Interest Rate, Stated Percentage2.80%
Debt Instrument, Unamortized Discount2,700,000
2018 Credit Agreement [Member]
Long-Term Debt (Textual) [Abstract]
Line of Credit Facility, Remaining Borrowing Capacity670,000,000
Borrowing outstanding under 2018 Credit Agreement10,000,000 $ 500,000,000
Line of Credit Facility, Maximum Borrowing Capacity $ 700,000,000
Line of Credit [Member]
Long-Term Debt (Textual) [Abstract]
Amended Net Debt to EBITDA Ratio, allowable adjustment for cash restructuring charges, amount120,000,000
Amended Net Debt to EBITDA Ratio, Maximum4.25
Consolidated Interest Coverage Ratio, Minimum3.5
Net Debt to EBITDA Ratio, Maximum3.5
Net Debt to EBITDA Ratio, domestic cash allowed to net debt, amount, minimum $ 25,000,000

Environmental Matters (Details)

Environmental Matters (Details) - USD ($) $ in MillionsMar. 31, 2021Jun. 30, 2020
Environmental Remediation Obligations [Abstract]
Reserves for Environmental Costs $ 14.7 $ 15.6
Accrued Environmental Loss Contingencies, Current $ 2.6 $ 6.1

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions3 Months Ended9 Months Ended
Mar. 31, 2021Mar. 31, 2020Mar. 31, 2021Mar. 31, 2020
Income Taxes - Additional Information [Line Items]
Discrete Benefit for Swiss Tax Reform $ 14.5
Effective Income Tax Rate Reconciliation, Provision to Return Adjustment, Amount $ 12.4
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount $ 3.5
Income Tax (Textual) [Abstract]
Effective tax rate(8.00%)93.10%(84.60%)143.50%

Earnings Per Shares (Details)

Earnings Per Shares (Details) - shares shares in Thousands3 Months Ended9 Months Ended
Mar. 31, 2021Mar. 31, 2020Mar. 31, 2021Mar. 31, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted Average Number of Shares Outstanding, Basic83,719 83,106 83,539 83,022
Earnings Per Share (Textual) [Abstract]
Increase in weighted average shares due to dilutive effect of unexercised capital stock options and unvested restricted stock units869 590 645 567
Weighted Average Number of Shares Outstanding, Diluted84,588 83,696 84,184 83,589
Unexercised capital stock options and restricted stock units excluded from computation of diluted EPS217 646 321 833

Equity (Details)

Equity (Details) - USD ($) $ in Thousands3 Months Ended6 Months Ended9 Months Ended
Mar. 31, 2021Mar. 31, 2020Dec. 31, 2018Mar. 31, 2021Mar. 31, 2020
Beginning Balance $ 1,319,689 $ 1,347,027 $ 1,268,788 $ 1,374,704
Net income22,985 2,241 $ 3,422 22,375 3,422
Other comprehensive income (loss)(17,302)(33,961)60,343 (39,490)
Dividend reinvestment50 52 150 157
Capital stock issued under employee benefit and stock plans8,916 98 19,082 8,385
Purchase of capital stock(50)(52)(150)(157)
Additions to noncontrolling interest1,527
Cash dividends(16,707)(16,582)(50,016)(49,725)
Other(1,630)
Ending Balance1,317,581 1,298,823 1,317,581 1,298,823
Capital stock [Member]
Beginning Balance104,330 103,618 103,654 103,026
Dividend reinvestment2 2 6 6
Capital stock issued under employee benefit and stock plans148 24 824 616
Purchase of capital stock(2)(2)(6)(6)
Ending Balance104,478 103,642 104,478 103,642
Additional paid-in capital [Member]
Beginning Balance547,754 536,522 538,575 528,827
Dividend reinvestment48 50 144 151
Capital stock issued under employee benefit and stock plans8,768 74 18,258 7,769
Purchase of capital stock(48)(50)(144)(151)
Other(311)
Ending Balance556,522 536,596 556,522 536,596
Retained earnings [Member]
Beginning Balance969,301 1,044,247 1,004,898 1,076,862
Net income21,621 2,917 19,333 3,445
Cash dividends(16,707)(16,582)(50,016)(49,725)
Ending Balance974,215 1,030,582 974,215 1,030,582
Accumulated other comprehensive loss [Member]
Beginning Balance(342,231)(378,219)(417,242)(373,543)
Other comprehensive income (loss)(16,572)(31,978)58,439 (36,654)
Ending Balance(358,803)(410,197)(358,803)(410,197)
Non-controlling interest [Member]
Beginning Balance40,535 40,859 38,903 39,532
Net income1,364 (676)3,042 (23)
Other comprehensive income (loss)(730)(1,983)1,904 (2,836)
Additions to noncontrolling interest1,527
Cash dividends(1,361)
Other(1,319)
Ending Balance $ 41,169 $ 38,200 $ 41,169 $ 38,200

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss - Components of and Changes in Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands3 Months Ended9 Months Ended
Mar. 31, 2021Mar. 31, 2020Mar. 31, 2021Mar. 31, 2020
Accumulated Other Comprehensive (Loss) Income [Line Items]
Accumulated Other Comprehensive Loss, Net of Tax $ (417,242) $ (373,543)
Other comprehensive (loss) income before reclassifications50,891 (42,876)
Amounts reclassified from accumulated other comprehensive loss7,548 6,222
Net current period other comprehensive (loss) income58,439 (36,654)
Accumulated Other Comprehensive Loss, Net of Tax $ (358,803) $ (410,197)(358,803)(410,197)
Accumulated Defined Benefit Plans Adjustment [Member]
Accumulated Other Comprehensive (Loss) Income [Line Items]
Accumulated Other Comprehensive Loss, Net of Tax(232,634)(222,270)
Other comprehensive (loss) income before reclassifications(5,489)2,123
Amounts reclassified from accumulated other comprehensive loss7,758 5,916
Net current period other comprehensive (loss) income2,269 8,039
Accumulated Other Comprehensive Loss, Net of Tax(230,365)(214,231)(230,365)(214,231)
Accumulated Currency Translation Adjustment [Member]
Accumulated Other Comprehensive (Loss) Income [Line Items]
Accumulated Other Comprehensive Loss, Net of Tax(181,027)(147,595)
Other comprehensive (loss) income before reclassifications47,108 (44,855)
Amounts reclassified from accumulated other comprehensive loss0 0
Net current period other comprehensive (loss) income47,108 (44,855)
Accumulated Other Comprehensive Loss, Net of Tax(133,919)(192,450)(133,919)(192,450)
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(3,581)(3,678)
Other comprehensive (loss) income before reclassifications9,272 (144)
Amounts reclassified from accumulated other comprehensive loss(210)306
Net current period other comprehensive (loss) income9,062 162
Accumulated Other Comprehensive Loss, Net of Tax5,481 (3,516)5,481 (3,516)
Noncontrolling Interest [Member]
Accumulated Other Comprehensive (Loss) Income [Line Items]
Accumulated Other Comprehensive Loss, Net of Tax(5,909)(3,450)
Other comprehensive (loss) income before reclassifications1,904 (2,836)
Net current period other comprehensive (loss) income1,904 (2,836)
Accumulated Other Comprehensive Loss, Net of Tax(4,005)(6,286)(4,005)(6,286)
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(3,471)(2,628)(10,308)(7,868)
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 $ (3,068) $ (686) $ (4,313) $ (405)

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Loss - Reclassifications (Details) - USD ($) $ in Thousands3 Months Ended9 Months Ended
Mar. 31, 2021Mar. 31, 2020Mar. 31, 2021Mar. 31, 2020
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items]
Currency exchange contracts $ 2,692 $ 2,438 $ 10,568 $ 9,330
Reclassification of unrealized loss (gain) on derivatives designated and qualified as cash flow hedges, tax(4,216)(168)(4,523)(99)
Recognition of actuarial losses3,471 2,628 10,308 7,868
(Benefit) provision from income taxes(1,699)30,193 (10,252)(11,295)
Forward Starting Interest Rate Swap Contracts [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items]
Forward starting interest rate swaps2,600
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]
Reclassification of unrealized loss (gain) on derivatives designated and qualified as cash flow hedges, tax(4,216)(168)(4,523)(99)
Total before tax3,068 686 4,313 405
Net of tax(1,148)518 (210)306
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 obligations24 23 70 67
Amortization of prior service credit(61)(56)(182)(169)
Recognition of actuarial losses3,508 2,661 10,420 7,970
Total before tax3,471 2,628 10,308 7,868
(Benefit) provision from income taxes(892)(662)(2,550)(1,952)
Net of tax(2,579)(1,966)(7,758)(5,916)
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 swaps3,068 611 4,337 1,833
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 $ 0 $ 75 $ (24) $ (1,428)

Accumulated Other Comprehensi_5

Accumulated Other Comprehensive Loss Other Comprehensive Income - Income Tax Allocated to Each Component (Details) - USD ($) $ in Thousands3 Months Ended9 Months Ended
Mar. 31, 2021Mar. 31, 2020Mar. 31, 2021Mar. 31, 2020
Other Comprehensive Income - Income Tax Allocated to Each Component [Abstract]
Unrealized gain on derivatives designated and qualified as cash flow hedges, before tax $ 6,319 $ (1,325) $ 12,281 $ (191)
Unrealized gain on derivatives designated and qualified as cash flow hedges, tax(1,548)325 (3,009)47
Unrealized gain on derivatives designated and qualified as cash flow hedges, net of tax4,771 (1,000)9,272 (144)
Reclassification of unrealized loss on derivatives designated and qualified as cash flow hedges, before tax3,068 686 4,313 405
Reclassification of unrealized loss (gain) on derivatives designated and qualified as cash flow hedges, tax(4,216)(168)(4,523)(99)
Reclassification of unrealized loss on derivatives designated and qualified as cash flow hedges, net of tax(1,148)518 (210)306
Unrecognized net pension and other postretirement benefit (loss) gain, before tax2,804 3,295 (7,109)2,876
Unrecognized net pension and other postretirement benefit (loss) gain, tax(772)(722)1,620 (753)
Unrecognized net pension and other postretirement benefit (loss) gain, net of tax2,032 2,573 (5,489)2,123
Reclassification of net pension and other postretirement benefit loss, before tax3,471 2,628 10,308 7,868
Reclassification of net pension and other postretirement benefit loss, tax(892)(662)(2,550)(1,952)
Reclassification of net pension and other postretirement benefit loss2,579 1,966 7,758 5,916
Foreign currency translation adjustments, before tax(24,604)(38,103)49,174 (47,809)
Foreign currency translation adjustments, tax(932)85 (162)118
Foreign currency translation adjustments, net of tax(25,536)(38,018)49,012 (47,691)
Other comprehensive income (loss), before tax(8,942)(32,819)68,967 (36,851)
Other comprehensive income (loss), tax(8,360)(1,142)(8,624)(2,639)
Other comprehensive income (loss), net of tax $ (17,302) $ (33,961) $ 60,343 $ (39,490)

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Carrying Amount of Goodwill Attributable to Each Segment (Details) - USD ($) $ in Thousands3 Months Ended9 Months Ended
Mar. 31, 2020Dec. 31, 2019Mar. 31, 2021Jun. 30, 2020
Goodwill [Line Items]
Goodwill and Intangible Asset Impairment $ 15,600 $ 14,600
Goodwill [Roll Forward]
Gross goodwill $ 1,086,920 $ 1,081,452
Accumulated impairment losses(810,872)(810,872)
Goodwill, Beginning Balance270,580
Change in gross goodwill due to translation5,468
Goodwill, Ending Balance276,048
Infrastructure [Member]
Goodwill [Roll Forward]
Gross goodwill633,211 633,211
Accumulated impairment losses(633,211)(633,211)
Goodwill, Beginning Balance0
Change in gross goodwill due to translation0
Goodwill, Ending Balance0
Metal Cutting
Goodwill [Roll Forward]
Gross goodwill453,709 448,241
Accumulated impairment losses(177,661) $ (177,661)
Goodwill, Beginning Balance270,580
Change in gross goodwill due to translation5,468
Goodwill, Ending Balance $ 276,048
WIDIA [Member]
Goodwill [Roll Forward]
Impairment charges13,700 13,100
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) $ 1,900 $ 1,500

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Components of Other Intangible Assets (Details) - USD ($) $ in Thousands3 Months Ended9 Months Ended
Mar. 31, 2020Dec. 31, 2019Mar. 31, 2021Mar. 31, 2020Jun. 30, 2020
Finite-Lived and Indefinite-lived Intangible Assets [Line Items]
Other Intangible Assets, Written off Related to Sale of Business Unit $ 12,500
The components of intangible assets
Accumulated amortization $ (149,320) $ (137,386)
Intangible Assets, Gross (Excluding Goodwill)273,007 269,954
Trademarks [Member]
The components of intangible assets
Gross carrying amount, Indefinite11,669 11,160
Technology-based and other [Member]
The components of intangible assets
Gross carrying amount, finite33,373 32,713
Accumulated amortization(23,977)(22,612)
Customer-related [Member]
The components of intangible assets
Gross carrying amount, finite182,840 181,408
Accumulated amortization(95,662)(88,112)
Unpatented technology [Member]
The components of intangible assets
Gross carrying amount, finite31,896 31,586
Accumulated amortization(19,918)(17,890)
Trademarks [Member]
The components of intangible assets
Gross carrying amount, finite13,229 13,087
Accumulated amortization $ (9,763) $ (8,772)
Minimum [Member] | Technology-based and other [Member]
The components of intangible assets
Useful life related to technology-based intangible assets4 years
Minimum [Member] | Customer-related [Member]
The components of intangible assets
Useful life related to technology-based intangible assets10 years
Minimum [Member] | Unpatented technology [Member]
The components of intangible assets
Useful life related to technology-based intangible assets10 years
Minimum [Member] | Trademarks [Member]
The components of intangible assets
Useful life related to technology-based intangible assets5 years
Maximum [Member] | Technology-based and other [Member]
The components of intangible assets
Useful life related to technology-based intangible assets20 years
Maximum [Member] | Customer-related [Member]
The components of intangible assets
Useful life related to technology-based intangible assets21 years
Maximum [Member] | Unpatented technology [Member]
The components of intangible assets
Useful life related to technology-based intangible assets30 years
Maximum [Member] | Trademarks [Member]
The components of intangible assets
Useful life related to technology-based intangible assets20 years
WIDIA [Member]
Finite-Lived and Indefinite-lived Intangible Assets [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) $ 1,900 $ 1,500
WIDIA [Member] | Trademarks [Member]
The components of intangible assets
Gross carrying amount, Indefinite $ 11,700

Segment Data - Sales and Operat

Segment Data - Sales and Operating (Loss) Income by Segment (Details) - USD ($) $ in Thousands3 Months Ended9 Months Ended
Mar. 31, 2021Mar. 31, 2020Mar. 31, 2021Mar. 31, 2020Jun. 30, 2020
Segment Reporting Information [Line Items]
Assets $ 2,614,980 $ 2,614,980 $ 3,037,591
External sales:
Sales484,658 $ 483,084 1,325,470 $ 1,506,252
Operating income (loss):
Total operating income (loss)39,522 37,893 41,378 6,631
Interest expense (Note 10)20,928 7,897 39,823 23,834
Other income, net(2,692)(2,438)(10,568)(9,330)
Income (loss) from continuing operations before income taxes21,286 32,434 12,123 (7,873)
Infrastructure [Member]
External sales:
Sales176,514 179,625 486,533 555,129
Operating income (loss):
Total operating income (loss)(18,282)(21,941)(31,815)(7,679)
Corporate [Member]
Operating income (loss):
Total operating income (loss)1,434 667 3,178 1,797
Metal Cutting
External sales:
Sales308,144 303,459 838,937 951,123
Operating income (loss):
Total operating income (loss) $ (22,674) $ (16,619) $ (12,741) $ (749)

Segment Data Disaggregation of

Segment Data Disaggregation of Revenue (Details)3 Months Ended9 Months Ended
Mar. 31, 2021Mar. 31, 2020Mar. 31, 2021Mar. 31, 2020
General Engineering [Member]
Disaggregation of Revenue [Line Items]
Revenues, percent48.00%46.00%47.00%45.00%
Transportation [Member]
Disaggregation of Revenue [Line Items]
Revenues, percent20.00%18.00%20.00%18.00%
Aerospace [Member]
Disaggregation of Revenue [Line Items]
Revenues, percent5.00%7.00%5.00%8.00%
Energy [Member]
Disaggregation of Revenue [Line Items]
Revenues, percent14.00%16.00%14.00%16.00%
Earthworks [Member]
Disaggregation of Revenue [Line Items]
Revenues, percent13.00%13.00%14.00%13.00%
Americas [Member]
Disaggregation of Revenue [Line Items]
Revenues, percent45.00%50.00%45.00%50.00%
EMEA [Member]
Disaggregation of Revenue [Line Items]
Revenues, percent31.00%30.00%31.00%30.00%
Asia Pacific [Member]
Disaggregation of Revenue [Line Items]
Revenues, percent24.00%20.00%24.00%20.00%
Infrastructure [Member] | General Engineering [Member]
Disaggregation of Revenue [Line Items]
Revenues, percent37.00%35.00%36.00%34.00%
Infrastructure [Member] | Energy [Member]
Disaggregation of Revenue [Line Items]
Revenues, percent26.00%29.00%25.00%29.00%
Infrastructure [Member] | Earthworks [Member]
Disaggregation of Revenue [Line Items]
Revenues, percent37.00%36.00%39.00%37.00%
Infrastructure [Member] | Americas [Member]
Disaggregation of Revenue [Line Items]
Revenues, percent58.00%64.00%56.00%62.00%
Infrastructure [Member] | EMEA [Member]
Disaggregation of Revenue [Line Items]
Revenues, percent17.00%18.00%19.00%18.00%
Infrastructure [Member] | Asia Pacific [Member]
Disaggregation of Revenue [Line Items]
Revenues, percent25.00%18.00%25.00%20.00%
Metal Cutting | General Engineering [Member]
Disaggregation of Revenue [Line Items]
Revenues, percent53.00%52.00%53.00%52.00%
Metal Cutting | Transportation [Member]
Disaggregation of Revenue [Line Items]
Revenues, percent32.00%28.00%31.00%28.00%
Metal Cutting | Aerospace [Member]
Disaggregation of Revenue [Line Items]
Revenues, percent8.00%12.00%8.00%12.00%
Metal Cutting | Energy [Member]
Disaggregation of Revenue [Line Items]
Revenues, percent7.00%8.00%8.00%8.00%
Metal Cutting | Americas [Member]
Disaggregation of Revenue [Line Items]
Revenues, percent37.00%42.00%38.00%42.00%
Metal Cutting | EMEA [Member]
Disaggregation of Revenue [Line Items]
Revenues, percent40.00%38.00%38.00%37.00%
Metal Cutting | Asia Pacific [Member]
Disaggregation of Revenue [Line Items]
Revenues, percent23.00%20.00%24.00%21.00%