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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Jun. 30, 2012	Jul. 31, 2012	Dec. 31, 2011
Document and Entity Information [Abstract]
Entity Registrant Name	KENNAMETAL INC
Entity Central Index Key	0000055242
Document Type	10-K
Document Period End Date	Jun. 30, 2012
Amendment Flag	false
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--06-30
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 2,325,200,000
Entity Common Stock, Shares Outstanding		80,106,781

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
Consolidated Statements of Income [Abstract]
Sales	$ 2,736,246	$ 2,403,493	$ 1,884,067
Cost of goods sold	1,741,996	1,519,102	1,256,339
Gross profit	994,250	884,391	627,728
Operating expense	561,490	538,530	477,487
Restructuring charges (Note 15)		12,586	43,923
Amortization of intangibles	16,351	11,602	13,090
Operating income	416,409	321,673	93,228
Interest expense	27,215	22,760	25,203
Other (income) expense, net	(775)	2,780	(8,577)
Income from continuing operations before income taxes	389,969	296,133	76,602
Provision for income taxes (Note 12)	79,136	63,856	26,977
Income from continuing operations	310,833	232,277	49,625
Loss from discontinued operations (Note 5)			(1,423)
Net income	310,833	232,277	48,202
Less: Net income attributable to noncontrolling interests	3,603	2,550	1,783
Net income attributable to Kennametal	307,230	229,727	46,419
Amounts attributable to Kennametal Shareowners:
Income from continuing operations	307,230	229,727	47,842
Loss from discontinued operations (Note 5)			(1,423)
Net income attributable to Kennametal	$ 307,230	$ 229,727	$ 46,419
Basic earnings per share:
Continuing operations	$ 3.83	$ 2.80	$ 0.59
Discontinued operations			(0.02)
Basic earnings per share, Total	3.83	2.80	0.57
Diluted earnings per share:
Continuing operations	3.77	2.76	0.59
Discontinued operations			(0.02)
Diluted earnings per share, Total	3.77	2.76	0.57
Dividends per share	$ 0.54	$ 0.48	$ 0.48
Basic weighted average shares outstanding	80,216	82,063	80,966
Diluted weighted average shares outstanding	81,439	83,173	81,690

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011
Current assets:
Cash and cash equivalents	$ 116,466	$ 204,565
Accounts receivable, less allowance for doubtful accounts of $12,530 and $20,958	478,989	447,835
Inventories (Note 8)	585,856	519,973
Deferred income taxes (Note 12)	51,017	60,257
Other current assets	50,634	54,955
Total current assets	1,282,962	1,287,585
Property, plant and equipment:
Land and buildings	379,034	373,971
Machinery and equipment	1,396,359	1,396,306
Less accumulated depreciation	(1,033,192)	(1,073,215)
Property, plant and equipment, net	742,201	697,062
Other assets:
Investments in affiliated companies	685	829
Goodwill (Note 2)	719,350	511,328
Other intangible assets, less accumulated amortization of $89,886 and $78,712 (Note 2)	243,487	152,279
Deferred income taxes (Note 12)	25,205	29,876
Other	20,298	75,510
Total other assets	1,009,025	769,822
Total assets	3,034,188	2,754,469
Current liabilities:
Current maturities of long-term debt and capital leases (Note 10)	33,572	307,304
Notes payable to banks (Note 11)	41,565	3,659
Accounts payable	219,475	222,678
Accrued income taxes (Note 12)	39,270	38,098
Accrued vacation pay	35,987	37,311
Accrued payroll	61,190	65,265
Other current liabilities (Note 9)	147,563	167,206
Total current liabilities	578,622	841,521
Long-term debt and capital leases, less current maturities (Note 10)	490,608	1,919
Deferred income taxes (Note 12)	69,134	83,310
Accrued postretirement benefits (Note 13)	22,766	17,853
Accrued pension benefits (Note 13)	167,981	117,066
Accrued income taxes (Note 12)	3,964	3,094
Other liabilities	32,892	31,065
Total liabilities	1,365,967	1,095,828
Commitments and contingencies (Note 19)
Kennametal Shareowners' Equity:
Preferred stock, no par value; 5,000 shares authorized; none issued
Capital stock, $1.25 par value; 120,000 shares authorized; 80,085 and 81,129 shares issued	100,106	101,411
Additional paid-in capital	447,433	470,758
Retained earnings	1,246,973	983,374
Accumulated other comprehensive (loss) income	(150,662)	82,529
Total Kennametal Shareowners' Equity	1,643,850	1,638,072
Noncontrolling interests	24,371	20,569
Total equity	1,668,221	1,658,641
Total liabilities and equity	$ 3,034,188	$ 2,754,469

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Jun. 30, 2012	Jun. 30, 2011
Consolidated Balance Sheets [Abstract]
Allowance for doubtful accounts	$ 12,530	$ 20,958
Accumulated amortization on other intangible assets	$ 89,886	$ 78,712
Preferred stock, par value
Preferred stock, shares authorized	5,000	5,000
Preferred stock, shares issued
Capital stock, par value	$ 1.25	$ 1.25
Capital stock, shares authorized	120,000	120,000
Capital stock, shares issued	80,085	81,129

Consolidated Statements of Cash Flow - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
OPERATING ACTIVITIES
Net income	$ 310,833	$ 232,277	$ 48,202
Adjustments for non-cash items:
Depreciation	87,722	81,869	83,339
Amortization	16,351	11,602	13,090
Stock-based compensation expense	21,500	18,852	16,640
Restructuring charges (Note 15)		2,914	855
Loss on divestitures			527
Deferred income tax provision (benefit)	28,602	(7,881)	230
Other	(12,702)	(9,872)	(4,506)
Changes in certain assets and liabilities:
Accounts receivable	(10,891)	(89,153)	(58,245)
Inventories	(63,833)	(124,082)	(2,576)
Accounts payable and accrued liabilities	(57,003)	100,325	40,985
Accrued income taxes	(14,157)	22,158	19,227
Other	(16,842)	(8,212)	7,060
Net cash flow provided by operating activities	289,580	230,797	164,828
INVESTING ACTIVITIES
Purchases of property, plant and equipment	(103,036)	(83,442)	(56,679)
Disposals of property, plant and equipment	6,886	9,755	5,141
Business acquisitions, net of cash acquired (Note 4)	(382,562)		(16,969)
Purchase of technology license (Note 2)	(10,000)
Proceeds from divestitures (Note 5)			27,788
Proceeds from sale of investments in affiliated companies		1,723	23
Other	1,447	139	276
Net cash flow used for investing activities	(487,265)	(71,825)	(40,420)
FINANCING ACTIVITIES
Net increase (decrease) in notes payable	38,198	(15,992)	(27,335)
Net increase in short-term revolving and other lines of credit	27,200
Term debt borrowings	1,509,767	450,109	564,366
Term debt repayments	(1,324,426)	(451,748)	(680,023)
Purchase of capital stock	(66,876)	(57,909)	(306)
Settlement of interest rate swap agreement (Note 7)	(22,406)
Net proceeds from equity offering			120,696
Dividend reinvestment and the effect of employee benefit and stock plans	24,635	18,328	10,677
Cash dividends paid to shareowners	(43,631)	(39,801)	(39,316)
Other	(11,162)	988	(6,926)
Net cash flow provided by (used for) financing activities	131,299	(96,025)	(58,167)
Effect of exchange rate changes on cash and cash equivalents	(21,713)	23,489	(17,935)
CASH AND CASH EQUIVALENTS
Net (decrease) increase in cash and cash equivalents	(88,099)	86,436	48,306
Cash and cash equivalents, beginning of period	204,565	118,129	69,823
Cash and cash equivalents, end of period	$ 116,466	$ 204,565	$ 118,129

Consolidated Statements of Shareowners' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Capital stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive (Loss) Income	Noncontrolling Interest
Total equity, June 30		$ 91,540	$ 357,839	$ 786,345	$ 11,719	$ 20,012
Beginning Balance at Jun. 30, 2009		$ 91,540	357,839	786,345	11,719	20,012
Beginning Balance, Shares at Jun. 30, 2009		73,232
Dividend reinvestment, Shares		12
Dividend reinvestment		$ 15	290
Capital stock issued under employee benefit and stock plans, Shares		621
Capital stock issued under employee benefit and stock plans		$ 776	23,986
Equity offering, Shares		8,050
Equity offering		$ 10,063	110,630
Purchase of capital stock, Shares		(12)
Purchase of capital stock		$ (15)	(291)
Net income	$ 48,202			46,419		1,783
Cash dividends paid to shareowners				(39,316)
Unrealized loss on derivatives designated and qualified as cash flow hedges, net of tax	(936)				(936)
Reclassification of unrealized loss (gain) on expired derivatives designated and qualified as cash flow hedges, net of income tax expense (benefit) expense of $(0.2) million, $(0.4) million and $0.9 million, respectively	(1,482)				(1,482)
Unrecognized net pension and other postretirement benefit (loss) gains, net of tax	(17,397)				(17,397)
Reclassification of net pension and other postemployment benefit losses, net of tax	2,975				2,975
Foreign currency translation adjustments, net of tax					(67,660)
Other comprehensive (loss) income, net of tax					(84,500)	(1,177)
Purchase of noncontrolling interests						(401)
Cash dividends paid to noncontrolling interests						(2,274)
Ending Balance at Jun. 30, 2010	1,333,443	$ 102,379	492,454	793,448	(72,781)	17,943
Ending Balance, Shares at Jun. 30, 2010		81,903
Total equity, June 30	1,333,443	$ 91,540	357,839	786,345	11,719	20,012
Total equity, June 30	1,333,443	$ 102,379	492,454	793,448	(72,781)	17,943
Dividend reinvestment, Shares		8
Dividend reinvestment		$ 10	354
Capital stock issued under employee benefit and stock plans, Shares		721
Capital stock issued under employee benefit and stock plans		$ 901	33,980
Purchase of capital stock, Shares		(1,503)
Purchase of capital stock		$ (1,879)	(56,030)
Net income	232,277			229,727		2,550
Cash dividends paid to shareowners				(39,801)
Unrealized loss on derivatives designated and qualified as cash flow hedges, net of tax	(679)				(679)
Reclassification of unrealized loss (gain) on expired derivatives designated and qualified as cash flow hedges, net of income tax expense (benefit) expense of $(0.2) million, $(0.4) million and $0.9 million, respectively	642				642
Unrecognized net pension and other postretirement benefit (loss) gains, net of tax	28,087				28,087
Reclassification of net pension and other postemployment benefit losses, net of tax	7,131				7,131
Foreign currency translation adjustments, net of tax					120,129
Other comprehensive (loss) income, net of tax					155,310	2,229
Cash dividends paid to noncontrolling interests						(2,153)
Ending Balance at Jun. 30, 2011	1,658,641	$ 101,411	470,758	983,374	82,529	20,569
Ending Balance, Shares at Jun. 30, 2011		81,129
Total equity, June 30	1,333,443	$ 102,379	492,454	793,448	(72,781)	17,943
Total equity, June 30	1,658,641	$ 101,411	470,758	983,374	82,529	20,569
Dividend reinvestment, Shares		8
Dividend reinvestment		$ 10	282
Capital stock issued under employee benefit and stock plans, Shares		956
Capital stock issued under employee benefit and stock plans		$ 1,195	40,758
Purchase of capital stock, Shares		(2,008)
Purchase of capital stock		$ (2,510)	(64,365)
Net income	310,833			307,230		3,603
Cash dividends paid to shareowners				(43,631)
Unrealized loss on derivatives designated and qualified as cash flow hedges, net of tax	(11,623)				(11,623)
Reclassification of unrealized loss (gain) on expired derivatives designated and qualified as cash flow hedges, net of income tax expense (benefit) expense of $(0.2) million, $(0.4) million and $0.9 million, respectively	272				272
Unrecognized net pension and other postretirement benefit (loss) gains, net of tax	(90,686)				(90,686)
Reclassification of net pension and other postemployment benefit losses, net of tax	5,964				5,964
Foreign currency translation adjustments, net of tax					(137,118)
Other comprehensive (loss) income, net of tax					(233,191)	(3,679)
Purchase of noncontrolling interests						5,211
Cash dividends paid to noncontrolling interests						(1,333)
Ending Balance at Jun. 30, 2012	1,668,221	$ 100,106	447,433	1,246,973	(150,662)	24,371
Ending Balance, Shares at Jun. 30, 2012		80,085
Total equity, June 30	1,658,641	$ 101,411	470,758	983,374	82,529	20,569
Total equity, June 30	$ 1,668,221	$ 100,106	$ 447,433	$ 1,246,973	$ (150,662)	$ 24,371

Nature of Operations

12 Months Ended

Jun. 30, 2012

Nature of Operations [Abstract]

NATURE OF OPERATIONS

NOTE 1 — NATURE OF OPERATIONS

Kennametal Inc. delivers productivity to customers seeking peak performance in demanding environments by providing innovative custom and standard wear-resistant solutions, enabled through our advanced materials sciences, application knowledge and commitment to a sustainable environment. We believe that our reputation for manufacturing excellence, as well as our technological expertise and innovation in our principal products, has helped us to achieve a leading market presence in our primary markets. End users of our products include metalworking manufacturers and suppliers across a diverse array of industries, including the aerospace, defense, transportation, machine tool, light machinery and heavy machinery industries, as well as manufacturers, producers and suppliers in a number of other industries including coal mining, highway construction, quarrying, and oil and gas exploration and production industries. Our end users’ products include items ranging from airframes to coal mining, engines to oil wells and turbochargers to construction.

Unless otherwise specified, any reference to a “year” is to a fiscal year ended June 30. When used in this annual report on Form 10-K, unless the context requires otherwise, the terms “we,” “our” and “us” refer to Kennametal Inc. and its subsidiaries.

Summary of Significant Accounting Policies

12 Months Ended

Jun. 30, 2012

Summary of Significant Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The summary of our significant accounting policies is presented below to assist in evaluating our consolidated financial statements.

PRINCIPLES OF CONSOLIDATION The consolidated financial statements include our accounts and those of our majority-owned subsidiaries. All significant intercompany balances and transactions are eliminated. Investments in entities of less than 50 percent of the voting stock over which we have significant influence are accounted for on an equity basis. The factors used to determine significant influence include, but are not limited to, our management involvement in the investee, such as hiring and setting compensation for management of the investee, the ability to make operating and capital decisions of the investee, representation on the investee’s board of directors and purchase and supply agreements with the investee. Investments in entities of less than 50 percent of the voting stock in which we do not have significant influence are accounted for on the cost basis.

USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS In preparing our consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, we make judgments and estimates about the amounts reflected in our financial statements. As part of our financial reporting process, our management collaborates to determine the necessary information on which to base our judgments and develop estimates used to prepare the financial statements. We use historical experience and available information to make these judgments and estimates. However, different amounts could be reported using different assumptions and in light of different facts and circumstances. Therefore, actual amounts could differ from the estimates reflected in our financial statements.

CASH AND CASH EQUIVALENTS Cash investments having original maturities of three months or less are considered cash equivalents. Cash equivalents principally consist of investments in money market funds and bank deposits at June 30, 2012.

ACCOUNTS RECEIVABLE We market our products to a diverse customer base throughout the world. Trade credit is extended based upon periodically updated evaluations of each customer’s ability to satisfy its obligations. We make judgments as to our ability to collect outstanding receivables and provide allowances for the portion of receivables when collection becomes doubtful. Accounts receivable reserves are determined based upon an aging of accounts and a review of specific accounts.

INVENTORIES Inventories are stated at the lower of cost or market. We use the last-in, first-out (LIFO) method for determining the cost of a significant portion of our United States (U.S.) inventories. The cost of the remainder of our inventories is determined under the first-in, first-out or average cost methods. When market conditions indicate an excess of carrying costs over market value, a lower-of-cost-or-market provision is recorded. Excess and obsolete inventory reserves are established based upon our evaluation of the quantity of inventory on hand relative to demand. The excess and obsolete inventory reserve at June 30, 2012 and 2011 was $55.0 million and $55.3 million, respectively.

PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are carried at cost. Major improvements are capitalized, while maintenance and repairs are expensed as incurred. Retirements and disposals are removed from cost and accumulated depreciation accounts, with the gain or loss reflected in operating income. Interest related to the construction of major facilities is capitalized as part of the construction costs and is depreciated over the facilities estimated useful life.

Depreciation for financial reporting purposes is computed using the straight-line method over the following estimated useful lives: building and improvements over 15-40 years; machinery and equipment over 4-15 years; furniture and fixtures over 5-10 years and computer hardware and software over 3-5 years.

Leased property and equipment under capital leases are depreciated using the straight-line method over the terms of the related leases.

LONG-LIVED ASSETS We evaluate the recoverability of property, plant and equipment and intangible assets that are amortized, whenever events or changes in circumstances indicate the carrying amount of any such assets may not be fully recoverable. Changes in circumstances include technological advances, changes in our business model, capital structure, economic conditions or operating performance. Our evaluation is based upon, among other things, our assumptions about the estimated future undiscounted cash flows these assets are expected to generate. When the sum of the undiscounted cash flows is less than the carrying value of the asset or asset group, we will recognize an impairment loss to the extent that carrying value exceeds fair value. We apply our best judgment when performing these evaluations to determine if a triggering event has occurred, the undiscounted cash flows used to assess recoverability and the fair value of the asset.

GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill represents the excess of cost over the fair value of the net assets of acquired companies. Goodwill and other intangible assets with indefinite lives are tested at least annually for impairment. We perform our annual impairment tests during the June quarter in connection with our annual planning process unless there are impairment indicators that warrant a test prior to that.

The carrying amount of goodwill attributable to each segment at June 30 is as follows:


(in thousands)	Industrial			Infrastructure			Total
Goodwill	$	393,974		$	246,311		$	640,285
Accumulated impairment losses		(150,842	)		-			(150,842	)
Balance as of June 30, 2010	$	243,132		$	246,311		$	489,443

Translation		17,971			3,914			21,885
Change in goodwill		17,971			3,914			21,885
Goodwill	$	411,945		$	250,225		$	662,170
Accumulated impairment losses		(150,842	)		-			(150,842	)
Balance as of June 30, 2011	$	261,103		$	250,225		$	511,328

Acquisition	$	-		$	242,553		$	242,553
Translation		(17,062	)		(17,469	)		(34,531	)
Change in goodwill		(17,062	)		225,084			208,022
Goodwill		394,883			475,309			870,192
Accumulated impairment losses		(150,842	)		-			(150,842	)
Balance as of June 30, 2012	$	244,041		$	475,309		$	719,350

We recorded no goodwill or other intangible asset impairments in 2012, 2011 and 2010.

The components of our other intangible assets were as follows as of June 30:


	Estimated		June 30, 2012					June 30, 2011
(in thousands)	Useful Life (in years)		Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Contract-based		4 to 15	$	21,450	$	(6,423	)	$	6,349	$	(5,380	)
Technology-based and other		4 to 17		37,594		(24,384	)		39,743		(25,442	)
Customer-related		10 to 20		178,500		(44,354	)		113,977		(38,275	)
Unpatented technology		15 to 30		46,035		(6,943	)		19,540		(4,740	)
Trademarks		5 to 20		13,977		(7,782	)		10,902		(4,875	)
Trademarks		Indefinite		35,817		-			40,480		-
Total			$	333,373	$	(89,886	)	$	230,991	$	(78,712	)

As of March 1, 2012 we acquired Stellite in our Infrastructure segment. As a result we increased goodwill by $242.6 million and other intangible assets by $103.8 million based on purchase price allocations. We recorded customer-related intangible assets of $73.8 million with an estimated useful life of 20 years, unpatented technology-based intangible assets of $28.3 million with an estimated useful life of 15 - 17 years and trademarks of $1.7 million with an estimated useful life of 5 years. These intangible assets will be amortized using the straight-line method over their respective estimated useful lives.

During the year ended June 30, 2012, we entered into a technology license agreement in our Infrastructure segment. This resulted in a $15.0 million increase of contract-based intangible assets. The technology license agreement will be amortized using the straight-line method over an estimated useful life of 10 years.

During 2012, we recorded foreign currency translation adjustments which decreased intangible assets by $11.1 million. During 2011, we recorded foreign currency translation adjustments which increased intangible assets by $8.5 million.

Amortization expense for intangible assets was $16.4 million, $11.6 million and $13.1 million for 2012, 2011 and 2010, respectively. Estimated amortization expense for 2013 through 2017 is $20.9 million, $19.9 million, $19.1 million, $18.8 million, and $16.9 million, respectively.

PENSION AND OTHER POSTRETIREMENT AND POSTEMPLOYMENT BENEFITS We sponsor these types of benefit plans for certain employees and retirees. Accounting for the cost of these plans requires the estimation of the cost of the benefits to be provided well into the future and attributing that cost over the expected work life of employees participating in these plans. This estimation requires our judgment about the discount rate used to determine these obligations, expected return on plan assets, rate of future compensation increases, rate of future health care costs, withdrawal and mortality rates and participant retirement age. Differences between our estimates and actual results may significantly affect the cost of our obligations under these plans.

In the valuation of our pension and other postretirement and postemployment benefit liabilities, management utilizes various assumptions. We determine our discount rate based on investment grade bond yield curves with a duration that approximates the benefit payment timing of each plan. This rate can fluctuate based on changes in investment grade bond yields.

The long-term rate of return on plan assets is estimated based on an evaluation of historical returns for each asset category held by the plans, coupled with the current and short-term mix of the investment portfolio. The historical returns are adjusted for expected future market and economic changes. This return will fluctuate based on actual market returns and other economic factors.

The rate of future health care costs is based on historical claims and enrollment information projected over the next year and adjusted for administrative charges. This rate is expected to decrease until 2029.

Future compensation rates, withdrawal rates and participant retirement age are determined based on historical information. These assumptions are not expected to significantly change. Mortality rates are determined based on a review of published mortality tables.

EARNINGS PER SHARE Basic earnings per share is computed using the weighted average number of shares outstanding during the period, while diluted earnings per share is calculated to reflect the potential dilution that occurs related to the issuance of capital stock under stock option grants, restricted stock awards and restricted stock units. The difference between basic and diluted earnings per share relates solely to the effect of capital stock options, restricted stock awards and restricted stock units.

For purposes of determining the number of diluted shares outstanding at June 30, 2012, 2011 and 2010, weighted average shares outstanding for basic earnings per share calculations were increased due solely to the dilutive effect of unexercised capital stock options, unvested restricted stock awards and unvested restricted stock units by 1.2 million, 1.1 million and 0.7 million shares, respectively. Unexercised capital stock options, restricted stock units and restricted stock awards of 0.7 million, 0.4 million and 2.3 million shares at June 30, 2012, 2011, and 2010, respectively, were not included in the computation of diluted earnings per share because the option exercise price was greater than the average market price, and therefore the inclusion would have been anti-dilutive.

REVENUE RECOGNITION We recognize revenue upon shipment of our products and assembled machines. Our general conditions of sale explicitly state that the delivery of our products and assembled machines is F.O.B. shipping point and that title and all risks of loss and damage pass to the buyer upon delivery of the sold products or assembled machines to the common carrier.

Our general conditions of sale explicitly state that acceptance of the conditions of shipment are considered to have occurred unless written notice of objection is received by Kennametal within 10 calendar days of the date specified on the invoice. We do not ship products or assembled machines unless we have documentation from our customers authorizing shipment. Our products are consumed by our customers in the manufacture of their products. Historically, we have experienced very low levels of returned products and assembled machines and do not consider the effect of returned products and assembled machines to be material. We have recorded an estimated returned goods allowance to provide for any potential returns.

We warrant that products and services sold are free from defects in material and workmanship under normal use and service when correctly installed, used and maintained. This warranty terminates 30 days after delivery of the product to the customer and does not apply to products that have been subjected to misuse, abuse, neglect or improper storage, handling or maintenance. Products may be returned to Kennametal, only after inspection and approval by Kennametal and upon receipt by the customer of shipping instructions from Kennametal. We have included an estimated allowance for warranty returns in our returned goods allowance.

We recognize revenue related to the sale of specialized assembled machines upon customer acceptance and installation, as installation is deemed essential to the functionality of a specialized assembled machine. Sales of specialized assembled machines were immaterial for 2012, 2011 and 2010.

STOCK-BASED COMPENSATION We recognize stock-based compensation expense for all stock options, restricted stock awards and restricted stock units over the period from the date of grant to the date when the award is no longer contingent on the employee providing additional service (substantive vesting period). We utilize the Black-Scholes valuation method to establish the fair value of all stock option awards.

Capital stock options are granted to eligible employees at fair market value at the date of grant. Capital stock options are exercisable under specified conditions for up to 10 years from the date of grant. On October 26, 2010, the Company’s Shareowners approved the Kennametal Inc., Stock and Incentive Plan of 2010 (2010 Plan). The 2010 Plan authorizes the issuance of up to 3,500,000 shares of the Company’s capital stock plus any shares remaining unissued under the Kennametal Inc. Stock and Incentive Plan of 2002, as amended (2002 Plan). Under the provisions of these Plans, participants may deliver our stock, owned by the holder for at least six months, in payment of the option price and receive credit for the fair market value of the shares on the date of delivery. The fair value of shares delivered during 2012, 2011 and 2010 was $0.4 million, $0.8 million and $0.1 million, respectively. In addition to stock option grants, these Plans permit the award of stock appreciation rights, performance share awards, performance unit awards, restricted stock awards, restricted unit awards and share awards to directors, officers and key employees.

RESEARCH AND DEVELOPMENT COSTS Research and development costs of $38.3 million, $33.3 million and $28.0 million in 2012, 2011 and 2010, respectively, were expensed as incurred. These costs are included in operating expense in the consolidated statements of income.

SHIPPING AND HANDLING FEES AND COSTS All fees billed to customers for shipping and handling are classified as a component of sales. All costs associated with shipping and handling are classified as a component of cost of goods sold.

INCOME TAXES Deferred income taxes are recognized based on the future income tax effects (using enacted tax laws and rates) of differences in the carrying amounts of assets and liabilities for financial reporting and tax purposes. A valuation allowance is recognized if it is “more likely than not” that some or all of a deferred tax asset will not be realized.

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES As part of our financial risk management program, we use certain derivative financial instruments. We do not enter into derivative transactions for speculative purposes and, therefore, hold no derivative instruments for trading purposes. We use derivative financial instruments to provide predictability to the effects of changes in foreign exchange rates on our consolidated results, achieve our targeted mix of fixed and floating interest rates on outstanding debt and forecasted transactions. Our objective in managing foreign exchange exposures with derivative instruments is to reduce volatility in cash flow, allowing us to focus more of our attention on business operations. With respect to interest rate management, these derivative instruments allow us to achieve our targeted fixed-to-floating interest rate mix, as a separate decision from funding arrangements, in the bank and public debt markets.

We account for derivative instruments as a hedge of the related asset, liability, firm commitment or anticipated transaction, when the derivative is specifically designated as a hedge of such items. We measure hedge effectiveness by assessing the changes in the fair value or expected future cash flows of the hedged item. The ineffective portions are recorded in other (income) expense, net. Certain currency forward contracts hedging significant cross-border intercompany loans are considered other derivatives and, therefore, do not qualify for hedge accounting. These contracts are recorded at fair value in the balance sheet, with the offset to other (income) expense, net.

CASH FLOW HEDGES Currency Forward contracts and range forward contracts (a transaction where both a put option is purchased and a call option is sold) are designated as cash flow hedges and hedge anticipated cash flows from cross-border intercompany sales of products and services. Gains and losses realized on these contracts at maturity are recorded in accumulated other comprehensive (loss) income, and are recognized as a component of other (income) expense, net when the underlying sale of products or services is recognized into earnings.

Interest Rate Floating-to-fixed interest rate swap contracts, designated as cash flow hedges, are entered into from time to time to hedge our exposure to interest rate changes on a portion of our floating rate debt. These interest rate swap contracts convert a portion of our floating rate debt to fixed rate debt. We record the fair value of these contracts as an asset or a liability, as applicable, in the balance sheet, with the offset to accumulated other comprehensive (loss) income.

FAIR VALUE HEDGES Interest Rate Fixed-to-floating interest rate swap contracts, designated as fair value hedges, are entered into from time to time to hedge our exposure to fair value fluctuations on a portion of our fixed rate debt. These interest rate swap contracts convert a portion of our fixed rate debt to floating rate debt. When in place, these contracts require periodic settlement, and the difference between amounts to be received and paid under the contracts is recognized in interest expense.

FOREIGN CURRENCY TRANSLATION Assets and liabilities of international operations are translated into U.S. dollars using year-end exchange rates, while revenues and expenses are translated at average exchange rates throughout the year. The resulting net translation adjustments are recorded as a component of accumulated other comprehensive (loss) income. The local currency is the functional currency of most of our locations. Losses from foreign currency transactions included in other (income) expense, net were $2.6 million and $6.6 million for 2012 and 2011, respectively. Gains from foreign currency transactions included in other (income) expense, net were $3.5 million for 2010.

NEW ACCOUNTING STANDARDS

Adopted

As of January 1, 2012, Kennametal adopted changes to fair value measurements and disclosure. Many of the amendments in this guidance represent clarifications to existing guidance or changes in the measurement guidance for determining fair value. The most significant change in disclosures is an expansion of the information required for Level 3 measurements. Disclosures will be required about the use of a nonfinancial asset measured or disclosed at fair value if its use differs from its highest and best use. In addition, entities must report the level in the fair value hierarchy of assets and liabilities not recorded at fair value but where fair value is disclosed. The adoption of this guidance did not have an impact on our consolidated financial statements.

Issued

In June 2012, the Financial Accounting Standards Board (FASB) issued additional guidance on testing indefinite lived intangible assets for impairment. The guidance permits an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of the indefinite lived intangible assets is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step impairment test. This guidance is effective for Kennametal beginning July 1, 2013, with early adoption is permitted.

In December 2011, the FASB deferred the requirement to present reclassifications of other comprehensive income on the face of the income statement. Companies would still be required to adopt the other requirements contained in the accounting guidance on presentation of other comprehensive income. This guidance is effective for Kennametal beginning July 1, 2012.

In June 2011, the FASB issued guidance on presentation of comprehensive income. This guidance eliminates the current option to report other comprehensive income and its components in the statement of changes in equity. An entity can elect to present items of net income and other comprehensive income in one continuous statement or in two separate consecutive statements. Each component of net income and other comprehensive income, together with totals for comprehensive income and its two parts, net income and other comprehensive income, would need to be displayed under either alternative. This guidance is effective for Kennametal beginning July 1, 2012.

In September 2011, the FASB issued additional guidance on testing goodwill for impairment. The guidance permits an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. This guidance is effective for Kennametal beginning July 1, 2012.

Supplemental Cash Flow Information

12 Months Ended

Jun. 30, 2012

Supplemental Cash Flow Information [Abstract]

SUPPLEMENTAL CASH FLOW INFORMATION

NOTE 3 — SUPPLEMENTAL CASH FLOW INFORMATION


Year ended June 30 (in thousands)	2012		2011		2010
Cash paid during the period for:
Interest	$	27,395	$	26,624	$	28,626
Income taxes		55,728		60,459		3,788
Supplemental disclosure of non-cash information:
Contribution of capital stock to employees' defined contribution benefit plans		-		948		6,352

Acquisition

12 Months Ended

Jun. 30, 2012

Acquisition [Abstract]

ACQUISITION

NOTE 4 — ACQUISITION

On March 1, 2012, the Company acquired all of the shares of Stellite pursuant to the terms of the Share Sale and Purchase Agreement dated January 13, 2012. The U.K.-based Stellite is a global manufacturer and provider of alloy-based critical wear solutions for extreme environments involving high temperature, corrosion and abrasion. Stellite employs approximately 1,300 people across seven primary operating facilities globally, including locations in the U.S., Canada, Germany, Italy, India and China. Stellite’s proprietary metal alloys, materials expertise, engineering design and fabrication capabilities complement Kennametal’s current business in the oil and gas, power generation, transportation and aerospace end markets. This acquisition is in alignment with Kennametal’s growth strategy and positions us to further achieve geographic and end market balance.

Kennametal acquired Stellite for a purchase price of $382.6 million; net of cash acquired, and funded the acquisition through existing credit facilities and operating cash flows. As part of the acquisition of Stellite, Kennametal incurred $8.9 million of acquisition related costs, which are included in operating expense.

Purchase Price Allocation

This acquisition was accounted for under the acquisition method of accounting and accordingly, the purchase price has been allocated to the assets acquired and liabilities assumed based on fair values at the date of the acquisition. The Consolidated Balance Sheet as of June 30, 2012 reflects the allocation of the purchase price.

The allocation of the total purchase price to the fair values of the assets acquired and liabilities assumed is as follows:


(in thousands)		Total
ASSETS
Current assets:
Accounts receivable		$ 44,414
Inventories		42,270
Other current assets		5,094
Total current assets		91,778
Property and equipment		76,146
Goodwill		242,553
Other intangible assets		103,793
Deferred income taxes		22,392
Other		70
Total assets		$ 536,732

LIABILITIES
Current liabilities:
Short term debt and current maturities of long-term debt		$ 4,685
Accounts payable		43,534
Accrued income taxes		24,688
Other current liabilities		17,487
Total current liabilities		90,394
Long-term debt and capital leases		5,379
Deferred income taxes		48,537
Other long-term liabilities		4,649
Total liabilities		148,959
Noncontrolling interest		5,211
Net assets acquired		$ 382,562

In connection with this acquisition, we identified and valued certain intangible assets, including existing customer relationships, technologies and trademarks, as discussed in Note 2. The goodwill recorded of $242.6 million is not deductible for tax purposes and is attributable to the operating synergies we expect to gain from the acquisition. These intangible assets are part of the Infrastructure segment.

The accompanying Consolidated Statement of Income, for the year ended June 30, 2012 includes net sales of $90.1 million and a net loss of $7.1 million related to Stellite since the acquisition date. This includes $8.9 million of acquisition related pre-tax costs.

Unaudited Pro Forma Financial Information

The following unaudited pro forma summary of operating results presents the consolidated results of operations as if the Stellite acquisition had occurred on July 1, 2010. These amounts were calculated after the conversion to U.S. GAAP, applying our accounting policies and adjusting Stellite’s results to reflect increased depreciation and amortization expense resulting from recording fixed assets and intangible assets at fair value and decreasing interest expense to reflect Kennametal’s more favorable borrowing rate, together with the related tax effects. The pro forma results for the year ended June 30, 2012 included $10.1 million of acquisition and integration related pre-tax costs. The pro forma results for the year ended June 30, 2011 includes $14.3 million of acquisition and integration related pre-tax costs. The pro forma results have been presented for comparative purposes only and are not indicative of future results of operations or what would have occurred had the acquisition been made on July 1, 2010.


Year ended June 30 (in thousands)	2012		2011
Pro forma (unaudited):
Net Sales	$	3,042,987	$	2,675,119
Net income attributable to Kennametal	$	333,808	$	238,409

Per share data attributable to Kennametal :
Basic earnings per share	$	4.16	$	2.91
Diluted earnings per share	$	4.10	$	2.87

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 88-16
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141
-Paragraph 51, 52
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Appendix F
-Paragraph F4
-Subparagraph e

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
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-Paragraph 67-73
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Discontinued Operations

12 Months Ended

Jun. 30, 2012

Discontinued Operations [Abstract]

DISCONTINUED OPERATIONS

NOTE 5 — DISCONTINUED OPERATIONS

Effective June 30, 2009, we divested our high speed steel business (HSS) from our Industrial segment as part of our continuing focus to shape our business portfolio and rationalize our manufacturing footprint. This divestiture was accounted for as discontinued operations. The net assets disposed of as a result of this transaction had a net book value of approximately $51 million and consisted primarily of inventory and equipment, as well as owned and leased facilities. Cash proceeds from this divestiture amounted to $28.5 million, the majority of which was received in 2010. We incurred pre-tax charges related to the divestiture of $2.3 million and net of tax charges of $1.4 million during 2010. The pre-tax charges as well as the related tax effects were recorded in discontinued operations. No additional pre-tax charges were incurred related to this divestiture.

- Definition

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 43-48
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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+ Details

Fair Value Measurements

12 Months Ended

Jun. 30, 2012

Fair Value Measurements [Abstract]

FAIR VALUE MEASUREMENTS

NOTE 6 — FAIR VALUE MEASUREMENTS

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy consists of three levels to prioritize the inputs used in valuations, as defined below:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g. interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3: Inputs that are unobservable.

As of June 30, 2012 the fair values of the Company’s financial assets and financial liabilities measured at fair value on a recurring basis are categorized as follows:


(in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Derivatives⁽¹⁾	$	-	$	1,855	$	-	$ 1,855
Total assets at fair value	$	-	$	1,855	$	-	$ 1,855


Liabilities:
Derivatives⁽¹⁾	$	-	$	193	$	-	$ 193
Total liabilities at fair value	$	-	$	193	$	-	$ 193

As of June 30, 2011 the fair values of the Company’s financial assets and financial liabilities measured at fair value on a recurring basis are categorized as follows:


(in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Derivatives⁽¹⁾	$	-	$	896	$	-	$ 896
Total assets at fair value	$	-	$	896	$	-	$ 896


Liabilities:
Derivatives⁽¹⁾	$	-	$	3,330	$	-	$ 3,330
Total liabilities at fair value	$	-	$	3,330	$	-	$ 3,330

⁽¹⁾Foreign currency derivatives and interest rate swap contracts are valued based on observable market spot and forward rates and are classified within Level 2 of the fair value hierarchy.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44A, 44B
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15C, 15D
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-Subparagraph a-d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15B
-Subparagraph a, b
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 3, 10, 14, 15
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-Paragraph 32, 33, 34
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
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+ Details

Derivative Instruments and Hedging Activities

12 Months Ended

Jun. 30, 2012

Derivative Instruments and Hedging Activities [Abstract]

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

NOTE 7 — DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

As part of our financial risk management program, we use certain derivative financial instruments. See Note 2 for discussion on our derivative instruments and hedging activities policy.

The fair value of derivatives designated and not designated as hedging instruments in the consolidated balance sheets at June 30 is as follows:


`	2012			2011
Derivatives designated as hedging instruments
Other current assets - range forward contracts	$	554		$	87
Other current liabilities - range forward contracts		(193	)		(159	)
Other assets - range forward contracts		3			-
Other assets - forward starting interest rate swap contracts		-			772
Other liabilities - forward starting interest rate swap contracts		-			(3,169	)
Total derivatives designated as hedging instruments		364			(2,469	)
Derivatives not designated as hedging instruments
Other current assets - currency forward contracts		1,298			37
Other current liabilities - currency forward contracts		-			(2	)
Total derivatives not designated as hedging instruments		1,298			35
Total derivatives	$	1,662		$	(2,434	)

The following represents (gains) losses related to derivatives not designated as hedging instruments for the years ended June 30:


(in thousands)	2012			2011			2010
Other (income) expense, net - currency forward contracts	$	(1,149	)	$	(1,138	)	$	1,077

FAIR VALUE HEDGES

Fixed-to-floating interest rate swap contracts, designated as fair value hedges, are entered into from time to time to hedge our exposure to fair value fluctuations on a portion of our fixed rate debt. We had no such contracts outstanding at June 30, 2012 and 2011, respectively.

In February 2009, we terminated interest rate swap contracts to convert $200 million of our fixed rate debt to floating rate debt. These contracts were originally set to mature in June 2012. This gain was amortized as a component of interest expense over the remaining term of the related debt using the effective interest rate method. During the years ended June 30, 2012, 2011 and 2010 $5.9 million, $5.9 million and $5.6 million, respectively were recognized as a reduction in interest expense.

CASH FLOW HEDGES

Currency forward contracts and range forward contracts (a transaction where both a put option is purchased and a call option is sold) are designated as cash flow hedges and hedge anticipated cash flows from cross-border intercompany sales of products and services. Gains and losses realized on these contracts at maturity are recorded in accumulated other comprehensive (loss) income, and are recognized as a component of other (income) expense, net when the underlying sale of products or services is recognized into earnings. The notional amount of the contracts translated into U.S. dollars at June 30, 2012 and 2011 was $69.9 million and $37.6 million, respectively. The time value component of the fair value of range forwards is excluded from the assessment of hedge effectiveness. Assuming the market rates remain constant with the rates at June 30, 2012, we expect to recognize into earnings in the next 12 months $0.2 million of gains on outstanding derivatives.

Floating-to-fixed interest rate swap contracts, designated as cash flow hedges, are entered into from time to time to hedge our exposure to interest rate changes on a portion of our floating rate debt. These interest rate swap contracts convert a portion of our floating rate debt to fixed rate debt. We record the fair value of these contracts as an asset or a liability, as applicable, in the balance sheet, with the offset to accumulated other comprehensive (loss) income, net of tax.

In February 2012, we settled forward starting interest rate swap contracts to convert $150.0 million of our floating rate debt to fixed rate debt. Upon settlement, we made a cash payment of $22.4 million. The loss is being amortized as a component of interest expense over the term of the related debt using the effective interest rate method. During the year ended June 30, 2012, $0.7 million was recognized as interest expense. As of June 30, 2011, we recorded a liability of $2.4 million on these contracts which was recorded as a decrease to other comprehensive (loss) income, net of tax

The following represents gains (losses) related to cash flow hedges for the years ended June 30:


(in thousands)	2012			2011			2010
(Losses) gains recognized in other comprehensive (loss) income, net	$	(11,793	)	$	(26	)	$	(962	)

Losses (gains) reclassified from accumulated other comprehensive (loss) income into other (income) expense, net	$	272		$	645		$	(1,107	)

No portion of the gains or losses recognized in earnings was due to ineffectiveness and no amounts were excluded from our effectiveness testing for the years ended June 30, 2012, 2011 and 2010.

- Definition

The entire disclosure for the entity's entire derivative instruments and hedging activities. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 45
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Inventories

12 Months Ended

Jun. 30, 2012

Inventories [Abstract]

INVENTORIES

NOTE 8 — INVENTORIES

Inventories consisted of the following at June 30:


(in thousands)	2012			2011
Finished goods	$	319,217		$	303,716
Work in process and powder blends		252,035			202,940
Raw materials		135,454			109,683
Inventories at current cost		706,706			616,339
Less: LIFO valuation		(120,850	)		(96,366	)
Total inventories	$	585,856		$	519,973

We used the LIFO method of valuing our inventories for approximately 49 percent and 50 percent of total inventories at June 30, 2012 and 2011, respectively.

Other Current Liabilities

12 Months Ended

Jun. 30, 2012

Other Current Liabilities [Abstract]

OTHER CURRENT LIABILITIES

NOTE 9 — OTHER CURRENT LIABILITIES

Other current liabilities consisted of the following at June 30:


(in thousands)	2012		2011
Accrued employee benefits	$	33,783	$	55,833
Payroll, state and local taxes		14,290		15,997
Accrued restructuring expense (Note 15)		1,329		12,711
Other		98,161		82,665
Total other current liabilities	$	147,563	$	167,206

Long - Term Debt and Capital Leases

12 Months Ended

Jun. 30, 2012

Long-Term Debt and Capital Leases [Abstract]

LONG-TERM DEBT AND CAPITAL LEASES

NOTE 10 — LONG-TERM DEBT AND CAPITAL LEASES

Long-term debt and capital lease obligations consisted of the following at June 30:


(in thousands)	2012			2011
3.875% Senior Unsecured Notes due 2022 net of discount of $0.4 million for 2012	$	299,646		$	-
Credit Agreement:
U.S. Dollar-denominated borrowings, 1.24% in 2012, due 2016		212,200			-
7.2% Senior Unsecured Notes due 2012 net of discount of $0.1 million for 2011 Also including interest rate swap adjustments of $6.1 million in 2011		-			305,954
Capital leases with terms expiring through 2018 at 2.3% to 5.7% in 2012 and 2.3% to 2.8% in 2011		6,195			3,113
Other		6,139			156
Total debt and capital leases		524,180			309,223
Less current maturities:
Long-term debt		(27,200	)		(306,032	)
Other		(5,814	)		-
Capital leases		(558	)		(1,272	)
Total current maturities		(33,572	)		(307,304	)
Long-term debt and capital leases, less current maturities	$	490,608		$	1,919

Senior Unsecured Notes On February 14, 2012, we issued $300 million of 3.875 percent Senior Unsecured Notes due in 2022. Interest will be paid semi-annually on February 15 and August 15 of each year. We settled forward starting interest rate swap contracts related to the bond issuance as discussed in Note 7. We applied the net proceeds from this notes offering to the repayment of our 7.2 percent Senior Unsecured Notes at their June 15, 2012 maturity. The 7.2 percent 10 year Senior Unsecured Notes issued in June 2002 with an aggregate face amount of $300 million were reclassified to current maturities of long-term debt as of June 30, 2011 and were repaid at their June 15, 2012 maturity.

2011 Credit Agreement On October 21, 2011, we entered into an amendment to our 2010 Credit Agreement, which is used to augment cash from operations and as an additional source of funds. The new five-year, multi-currency, revolving credit facility (2011 Credit Agreement) extends to October 2016 and permits revolving credit loans of up to $600.0 million for working capital, capital expenditures and general corporate purposes. The 2011 Credit Agreement allows for borrowings in U.S. dollars, euro, Canadian dollars, pound sterling and Japanese yen. Interest payable under the 2011 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 2011 Credit Agreement requires us to comply with various restrictive and affirmative covenants, including two financial covenants: a maximum leverage ratio and a minimum consolidated interest coverage ratio (as those terms are defined in the agreement). We were in compliance with these financial covenants as of June 30, 2012. We had $212.2 million of borrowings outstanding under the 2011 Credit Agreement as of June 30, 2012. We had no borrowings outstanding under the 2010 Credit Agreement as of June 30, 2011.

Borrowings under the 2011 Credit Agreement are guaranteed by our significant domestic subsidiaries.

Future principal maturities of long-term debt are $33.3 million in 2013, $185.0 million in 2016 and $300.0 million beyond 2017.

Future minimum lease payments under capital leases for the next five years and thereafter in total are as follows:


(in thousands)
2013	$	803
2014		2,574
2015		1,658
2016		1,079
2017		601
After 2017		199
Total future minimum lease payments		6,914
Less amount representing interest		(719	)
Amount recognized as capital lease obligations	$	6,195

Our collateralized debt at June 30, 2012 and 2011 was comprised of industrial revenue bond obligations of $0.1 million and $0.2 million, respectively, and the capitalized lease obligations of $6.2 million and $3.1 million, respectively. The underlying assets collateralize these obligations.

Notes Payable and Lines of Credit

12 Months Ended

Jun. 30, 2012

Notes Payable and Lines of Credit [Abstract]

NOTES PAYABLE AND LINES OF CREDIT

NOTE 11 — NOTES PAYABLE AND LINES OF CREDIT

Notes payable to banks of $41.6 million and $3.7 million at June 30, 2012 and 2011, respectively, represents short-term borrowings under credit lines with commercial banks. These credit lines, translated into U.S. dollars at June 30, 2012 exchange rates, totaled $127.1 million at June 30, 2012, of which $85.5 million was unused. The weighted average interest rate for notes payable and lines of credit was 2.5 percent and 4.4 percent at June 30, 2012 and 2011, respectively.

Income Taxes

12 Months Ended

Jun. 30, 2012

Income Taxes [Abstract]

INCOME TAXES

NOTE 12 — INCOME TAXES

Income from continuing operations before income taxes consisted of the following for the years ended June 30:


(in thousands)	2012		2011			2010
Income from continuing operations before income taxes:
United States	$	95,410	$	69,042		$	3,925
International		294,559		227,091			72,677
Total income from continuing operations before income taxes	$	389,969	$	296,133		$	76,602

Current income taxes:
Federal	$	23,313	$	26,234		$	1,915
State		2,275		1,063			1,376
International		24,946		44,440			23,456
Total current income taxes		50,534		71,737			26,747
Deferred income taxes		28,602		(7,881	)		230
Provision for income taxes	$	79,136	$	63,856		$	26,977

Effective tax rate		20.3%		21.6%			35.2%

The reconciliation of income taxes computed using the statutory U.S. income tax rate and the provision for income taxes was as follows for the years ended June 30:


(in thousands)	2012			2011			2010
Income taxes at U.S. statutory rate	$	136,489		$	103,647		$	26,811
State income taxes, net of federal tax benefits		4,110			1,956			2,290
U.S. income taxes provided on international income		8,164			21,556			1,107
Combined tax effects of international income		(50,574	)		(35,423	)		(4,460	)
Change in valuation allowance and other uncertain tax positions		(16,243	)		(20,215	)		2,024
Impact of domestic production activities deduction		(3,810	)		(6,413	)		(456	)
Research and development credit		(1,515	)		(2,685	)		(460	)
Other		2,515			1,433			121
Provision for income taxes	$	79,136		$	63,856		$	26,977

During 2012, we recorded net valuation allowance adjustments of $6.9 million, which reduced income tax expense. The valuation allowance adjustments reflect a change in judgment about the realizability of certain deferred tax assets in the Netherlands. The effect of these tax benefits is included in the income tax reconciliation table under the caption “change in valuation allowance and other uncertain tax positions.”

During 2012, we recorded adjustments of $9.0 million related to the effective settlement of uncertain tax positions in the U.S., Europe and Asia, which reduced income tax expense. The effect of these tax benefits is included in the income tax reconciliation table under the caption “change in valuation allowance and other uncertain tax positions.”

During 2011, we recorded net valuation allowance adjustments of $20.5 million, which reduced income tax expense. The valuation allowance adjustments reflect a change in judgment about the realizability of certain deferred tax assets in the United Kingdom and Europe. The effect of this tax benefit is included in the income tax reconciliation table under the caption “change in valuation allowance and other uncertain tax positions.”

During 2011, we incurred U.S. Federal income taxes of $17.9 million associated with dividends of international subsidiary current year income. The effect of this expense is included in the income tax reconciliation table under the caption “U.S. income taxes provided on international income.”

During 2010, we recorded restructuring charges related to our engineered products business for which there was no tax benefit. The effect of this is included in the income tax reconciliation table under the caption “combined tax effects of international income.”

The components of net deferred tax assets and liabilities were as follows at June 30:


(in thousands)	2012			2011
Deferred tax assets:
Net operating loss carryforwards	$	68,782		$	65,768
Inventory valuation and reserves		26,363			29,646
Pension benefits		38,552			713
Other postretirement benefits		9,958			8,312
Accrued employee benefits		30,179			30,975
Other accrued liabilities		8,857			7,939
Hedging activities		13,338			13,528
Tax credits and other carryforwards		6,354			5,431
Other		-			2,558
Total		202,383			164,870
Valuation allowance		(19,502	)		(25,662	)
Total deferred tax assets	$	182,881		$	139,208

Deferred tax liabilities:
Tax depreciation in excess of book	$	109,948		$	98,957
Intangible assets		68,806			35,965
Other		448			-
Total deferred tax liabilities	$	179,202		$	134,922
Total net deferred tax assets	$	3,679		$	4,286

Included in deferred tax assets at June 30, 2012 is $68.8 million associated with net operating loss carryforwards in federal, state and foreign jurisdictions. Of that amount, $8.0 million expires through June 2017, $6.9 million expires through 2022, $7.0 million expires through 2027, $12.8 million expires through 2032, and the remaining $34.1 million do not expire. The realization of these tax benefits is primarily dependent on future taxable income in these jurisdictions.

A valuation allowance of $19.5 million has been placed against deferred tax assets in Europe, China, Hong Kong, Brazil and the U.S., which $16.1 million would be allocated to income tax expense and $3.4 million would be allocated to either income tax expense or goodwill, depending if realization of the deferred tax assets occurs during the measurement period. In 2012, the valuation allowance related to these deferred tax assets decreased by $6.2 million. As the respective operations generate sufficient income, the valuation allowances will be partially or fully reversed at such time we believe it will be more likely than not that the deferred tax assets will be realized. In 2012, a change in judgment about the realizability of certain deferred tax assets in the Netherlands occurred resulting in a reduction of the valuation allowance of $6.9 million.

June 30, 2012 unremitted earnings of our non-U.S. subsidiaries and affiliates of $1,428.4 million, the majority of which have not been previously taxed in the U.S., are considered permanently reinvested, and accordingly, no deferred tax liability has been recorded in connection therewith. It is not practical to estimate the income tax effect that might be incurred if cumulative prior year earnings not previously taxed in the U.S. were remitted to the U.S.

A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest) is as follows as of June 30:


(in thousands)	2012			2011
Balance at beginning of year	$	18,289		$	16,391
Increases for tax positions of prior years		946			-
Decreases for tax positions of prior years		-			(85	)
Increases for tax positions related to the current year		116			285
Decreases for tax positions related to the current year		(1,635	)		-
Decreases related to settlement with taxing authority		(7,280	)		-
Decreases related to lapse of statute of limitations		(805	)		(794	)
Foreign currency translation		(2,333	)		2,492
Balance at end of year	$	7,298		$	18,289

The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate in 2012, 2011 and 2010 is $6.4 million, $18.0 million and $15.8 million, respectively. Our policy is to recognize interest and penalties related to income taxes as a component of the provision for income taxes in the Consolidated Statement of Income. We recognized a reduction in interest of $0.9 million in 2012. We recognized interest expense of $0.9 million and $0.4 million for 2011 and 2010, respectively. We also recognized $0.3 million of penalty in 2012 through goodwill. As of June 30, 2012 and 2011 the amount of interest accrued was $1.9 million and $3.2 million, respectively. As of June 30, 2012 the amount of penalty accrued was $0.3 million.

With few exceptions, we are no longer subject to income tax examinations by tax authorities for years prior to 2007. The Internal Revenue Service has audited all U.S. tax years prior to 2011 and will begin examining 2011 and 2012 during the next fiscal year. Various state and foreign jurisdiction tax authorities are in the process of examining our income tax returns for various tax years ranging from 2007 to 2010. We continue to execute and expand our pan-European business model. As a result of this and other matters, we continuously review our uncertain tax positions and evaluate any potential issues that may lead to an increase or decrease in the total amount of unrecognized tax benefits recorded. We believe that it is reasonably possible that the amount of unrecognized tax benefits could decrease by approximately $4.0 million to $5.0 million within the next twelve months as a result of the progression of various federal, state, and foreign audits in process.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319

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-Name Accounting Standards Codification
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-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

+ Details

Pension and Other Postretirement and Postemployment Benefits

12 Months Ended

Jun. 30, 2012

Pension and other Postretirement and Postemployment Benefits [Abstract]

PENSION AND OTHER POSTRETIREMENT AND POSTEMPLOYMENT BENEFITS

NOTE 13 — PENSION AND OTHER POSTRETIREMENT AND POSTEMPLOYMENT BENEFITS

Pension benefits under defined benefit pension plans are based on years of service and, for certain plans, on average compensation for specified years preceding retirement. We fund pension costs in accordance with the funding requirements of the Employee Retirement Income Security Act of 1974 (ERISA), as amended, for U.S. plans and in accordance with local regulations or customs for non-U.S. plans.

We have an Executive Retirement Plan (ERP) for various executives and a Supplemental Executive Retirement Plan (SERP) which was closed to future participation on July 26, 2006.

We presently provide varying levels of postretirement health care and life insurance benefits (OPEB) to certain employees and retirees. Postretirement health care benefits are available to employees and their spouses retiring on or after age 55 with 10 or more years of service. Beginning with retirements on or after January 1, 1998, our portion of the costs of postretirement health care benefits is capped at 1996 levels. Beginning with retirements on or after January 1, 2009, we have no obligation to provide a company subsidy for retiree medical costs.

In 2010, special termination benefits of $3.6 million, respectively, were recognized in the U.S.-based defined benefit pension plan due to an amendment of the plan for supplemental retirement benefits.

We use a June 30 measurement date for all of our plans.

Defined Benefit Pension Plans

The funded status of our pension plans and amounts recognized in the consolidated balance sheets as of June 30 were as follows:


(in thousands)	2012			2011
Change in benefit obligation:
Benefit obligation, beginning of year	$	786,572		$	759,075
Service cost		6,982			7,650
Interest cost		42,107			40,984
Participant contributions		34			39
Actuarial losses (gains)		153,680			(4,400	)
Benefits and expenses paid		(39,051	)		(37,082	)
Foreign currency translation adjustment		(16,437	)		22,074
Effect of acquired business/plan combinations		28,296			-
Plan amendments		-			675
Plan curtailments/settlements		(3,877	)		(2,443	)
Benefit obligation, end of year	$	958,306		$	786,572


Change in plan assets:
Fair value of plan assets, beginning of year	$	725,466		$	656,516
Actual return on plan assets		68,082			93,570
Company contributions		9,683			8,536
Participant contributions		34			39
Benefits and expenses paid		(39,051	)		(37,082	)
Plan curtailments/settlements		(3,877	)		(2,443	)
Effect of acquired business/plan combinations		26,438			-
Foreign currency translation adjustments		(2,932	)		6,330
Fair value of plan assets, end of year	$	783,843		$	725,466


Funded status of plan	$	(174,463	)	$	(61,106	)


Amounts recognized in the balance sheet consist of:
Long-term prepaid benefit	$	2,803		$	63,579
Short-term accrued benefit obligation		(9,285	)		(7,619	)
Accrued pension benefits		(167,981	)		(117,066	)
Net amount recognized	$	(174,463	)	$	(61,106	)

The pre-tax amounts related to our defined benefit pension plans recognized in accumulated other comprehensive (loss) income were as follows at June 30:


(in thousands)	2012			2011
Unrecognized net actuarial losses	$	191,340		$	66,734
Unrecognized net prior service credits		(1,379	)		(1,540	)
Unrecognized transition obligations		1,193			1,202
Total	$	191,154		$	66,396

Prepaid pension benefits are included in other long-term assets. The assets of our U.S. and international defined benefit pension plans consist principally of capital stocks, corporate bonds and government securities.

To the best of our knowledge and belief, the asset portfolios of our defined benefit pension plans do not contain our capital stock. We do not issue insurance contracts to cover future annual benefits of defined benefit pension plan participants. Transactions between us and our defined benefit pension plans include the reimbursement of plan expenditures incurred by us on behalf of the plans. To the best of our knowledge and belief, the reimbursement of cost is permissible under current ERISA rules or local government law. The accumulated benefit obligation for all defined benefit pension plans was $938.5 million and $772.6 million as of June 30, 2012 and 2011, respectively.

Included in the above information are plans with accumulated benefit obligations exceeding the fair value of plan assets as of June 30 as follows:


(in thousands)	2012		2011
Projected benefit obligation	$	855,697	$	124,684
Accumulated benefit obligation		835,870		123,016
Fair value of plan assets		671,588		-

The components of net periodic pension cost include the following as of June 30:


(in thousands)	2012			2011			2010
Service cost		$ 6,982		$	7,650		$	7,949
Interest cost		42,107			40,984			42,437
Expected return on plan assets		(51,376	)		(48,203	)		(46,226	)
Amortization of transition obligation		65			52			56
Amortization of prior service credit		(186	)		(281	)		(280	)
Special termination benefits		-			-			3,577
Curtailment Loss		-			-			300
Settlement loss		1,253			18			-
Recognition of actuarial losses		8,259			12,277			4,447
Net periodic pension cost		$ 7,104		$	12,497		$	12,260

Net periodic pension cost decreased $5.4 million to $7.1 million in 2012 from $12.5 million in 2011. This decrease was primarily the result of discount rate changes and the expected return on plan assets.

As of June 30, 2012, the projected benefit payments, including future service accruals for these plans for 2013 through 2017, are $40.9 million, $41.7 million, $43.7 million, $45.7 million and $48.5 million, respectively and $277.5 million in 2018 through 2022.

The amounts of accumulated other comprehensive loss expected to be recognized in net periodic pension cost during 2013 related to net actuarial losses and transition obligations are $14.9 million and $0.1 million, respectively. The amount of accumulated other comprehensive income expected to be recognized in net periodic pension cost during 2013 related to prior service credit is $0.2 million.

We expect to contribute approximately $10.4 million to our pension plans in 2013.

Other Postretirement Benefit Plans

The funded status of our other postretirement benefit plans and the related amounts recognized in the consolidated balance sheets were as follows:


(in thousands)	2012			2011
Change in benefit obligation:
Benefit obligation, beginning of year	$	19,771		$	19,910
Service cost		75			77
Interest cost		1,029			1,037
Actuarial loss		7,345			2,474
Benefits paid		(3,408	)		(3,203	)
Plan amendment		(238	)		(524	)
Benefit obligation, end of year	$	24,574		$	19,771


Funded status of plan	$	(24,574	)	$	(19,771	)


Amounts recognized in the balance sheet consist of:
Short-term accrued benefit obligation	$	(1,808	)	$	(1,918	)
Accrued postretirement benefits		(22,766	)		(17,853	)
Net amount recognized	$	(24,574	)	$	(19,771	)

The pre-tax amounts related to our OPEB plans which were recognized in accumulated other comprehensive (loss) income were as follows at June 30:


(in thousands)	2012			2011
Unrecognized net actuarial losses (gains)	$	6,538		$	(864	)
Unrecognized net prior service cost		(674	)		(524	)
Total	$	5,864		$	(1,388	)

The components of net periodic other postretirement costs (benefit) include the following for the years ended June 30:


(in thousands)	2012			2011			2010
Service cost		$ 75		$	77		$	99
Interest cost		1,029			1,037			1,266
Amortization of prior service cost		(89	)		-			8
Recognition of actuarial gains		(56	)		(190	)		(368	)
Net periodic other postretirement benefit cost		$ 959		$	924		$	1,005

As of June 30, 2012, the projected benefit payments, including future service accruals for our other postretirement benefit plans for 2013 through 2017, are $2.3 million, $2.2 million, $2.1 million, $2.1 million, and $2.0 million, respectively and $8.4 million in 2018 through 2022.

The amounts of accumulated other comprehensive loss expected to be recognized in net periodic pension cost during 2013 related to net actuarial losses are $0.4 million. The amount of accumulated other comprehensive income expected to be recognized in net periodic pension cost during 2013 related to prior service credit is $0.1 million.

We expect to contribute approximately $2.3 million to our postretirement benefit plans in 2013.

Assumptions

The significant actuarial assumptions used to determine the present value of net benefit obligations for our defined benefit pension plans and other postretirement benefit plans were as follows:


	2012		2011		2010
Discount Rate:
U.S. plans		4.0%		5.5%		5.5%
International plans		4.0-5.0%		5.5-5.8%		5.0-5.5%
Rates of future salary increases:
U.S. plans		3.0-5.0%		3.0-5.0%		3.0-5.0%
International plans		2.5-4.0%		2.0-3.5%		3.5%

The significant assumptions used to determine the net periodic costs (benefits) for our pension and other postretirement benefit plans were as follows:


	2012		2011		2010
Discount Rate:
U.S. plans		5.5%		5.5%		6.5%
International plans		5.5-5.8%		5.0-5.5%		5.8-7.0%
Rates of future salary increases:
U.S. plans		3.0-5.0%		3.0-5.0%		3.0-5.0%
International plans		2.0-3.5%		3.5%		3.5%
Rate of return on plans assets:
U.S. plans		8.0%		8.0%		8.0%
International plans		5.8%		6.4%		6.7%

The rates of return on plan assets are based on historical performance, as well as future expected returns by asset class considering macroeconomic conditions, current portfolio mix, long-term investment strategy and other available relevant information.

The annual assumed rate of increase in the per capita cost of covered benefits (the health care cost trend rate) for our postretirement benefit plans was as follows:


	2012		2011		2010
Health care costs trend rate assumed for next year		8.1%		8.3%		8.6%
Rate to which the cost trend rate gradually declines		4.5%		4.5%		4.5%
Year that the rate reaches the rate at which it is assumed to remain		2029		2029		2029

Assumed health care cost trend rates have a significant effect on the cost components and obligation for the health care plans. A change of one percentage point in the assumed health care cost trend rates would have the following effects on the total service and interest cost components of our other postretirement cost and other postretirement benefit obligation at June 30, 2012:


(in thousands)	1% Increase		1% Decrease
Effect on total service and interest cost components	$	58	$	(51)
Effect on other postretirement obligation		912		(800)

Plan Assets

The primary objective of certain of our pension plans’ investment policies is to ensure that sufficient assets are available to provide the benefit obligations at the time the obligations come due. The overall investment strategy for the defined benefit pension plans’ assets combine considerations of preservation of principal and moderate risk-taking. The assumption of an acceptable level of risk is warranted in order to achieve satisfactory results consistent with the long-term objectives of the portfolio. Fixed income securities comprise a significant portion of the portfolio due to their plan-liability-matching characteristics and to address the plans’ cash flow requirements. Additionally, diversification of investments within each asset class is utilized to further reduce the impact of losses in single investments.

Investment management practices must comply with ERISA and all applicable regulations and rulings thereof. The use of derivative instruments is permitted where appropriate and necessary for achieving overall investment policy objectives. Currently, the use of derivative instruments is not significant when compared to the overall investment portfolio.

The Company utilizes a liability driven investment strategy (LDI) for the assets of its U.S. defined benefit pension plans in order to reduce the volatility of the funded status of these plans and to meet the obligations at an acceptable cost over the long term. This LDI strategy entails modifying the asset allocation and duration of the assets of the plans to more closely match the liability profile of these plans. The asset reallocation involves increasing the fixed income allocation, reducing the equity component and adding alternative investments. Longer duration interest rate swaps have been added in order to increase the overall duration of the asset portfolio to more closely match the liabilities.

Our defined benefit pension plans’ asset allocations as of June 30, 2012 and 2011 and target allocations for 2013, by asset class, were as follows:


	2012		2011		Target %
Equity		30%		35%		30%
Fixed Income		65%		60%		70%
Other		5%		5%		0%

The following sections describe the valuation methodologies used by the trustee to measure the fair value of the defined benefit pension plan assets, including an indication of the level in the fair value hierarchy in which each type of asset is generally classified (see Note 6 for the definition of fair value and a description of the fair value hierarchy).

Corporate fixed income securities Investments in corporate fixed income securities consist of corporate debt and asset backed securities. These investments are classified as level two and are valued using independent observable market inputs such as the treasury curve, swap curve and yield curve.

Common / collective trusts Investments in common / collective trusts invest primarily in publicly traded securities and are classified as level two and valued based on observable market data.

Common stock Common stocks are classified as level one and are valued at their quoted market price.

Government securities Investments in government securities consist of fixed income securities such as U.S. government and agency obligations and foreign government bonds and asset and mortgage backed securities such as obligations issued by government sponsored organizations. These investments are classified as level two and are valued using independent observable market inputs such as the treasury curve, credit spreads and interest rates.

Other fixed income securities Investments in other fixed income securities are classified as level two and valued based on observable market data.

Other Other investments consist primarily of state and local obligations and short term instruments including money market funds, certificates of deposit and state and local obligations. These investments are primarily classified as level two and are valued using independent observable market inputs.

The fair value methods described may not be reflective of future fair values. Additionally, while the Company believes the valuation methods used by the plans’ trustee are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in different fair value measurement at the reporting date.

The following table presents the fair value of the benefit plan assets classified under the appropriate level of the fair value hierarchy as of June 30, 2012:


(in thousands)	Level 1		Level 2		Level 3		Total

Corporate fixed income securities	$	-	$	391,868	$	-	$ 391,868
Common / collective trusts:
Value funds		-		96,216		-	96,216
Growth funds		-		52,011		-	52,011
Balanced funds		-		14,039		-	14,039
Common stock		76,685		-		-	76,685
Government securities:
U.S. Government securities		-		50,273		-	50,273
Foreign government securities		-		25,969		-	25,969
Other fixed income securities		-		36,165		-	36,165
Other		2,120		38,497		-	40,617
Total investments	$	78,805	$	705,038	$	-	$ 783,843

The following table presents the fair value of the benefit plan assets classified under the appropriate level of the fair value hierarchy as of June 30, 2011:


(in thousands)	Level 1		Level 2		Level 3		Total

Corporate fixed income securities	$	-	$	333,955	$	-	$ 333,955
Common / collective trusts:
Value funds		-		90,679		-	90,679
Growth funds		-		54,392		-	54,392
Balanced funds		-		15,798		-	15,798
Common stock		93,403		-		-	93,403
Government securities:
U.S. Government securities		-		30,236		-	30,236
Foreign government securities		-		27,465		-	27,465
Other fixed income securities		-		41,043		-	41,043
Other		1,723		36,772		-	38,495
Total investments	$	95,126	$	630,340	$	-	$ 725,466

- Definition

The entire disclosure for pension and other postretirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph h
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph q
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 8
-Subparagraph m
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 106
-Paragraph 518
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 87
-Paragraph 264
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 03-2
-Paragraph 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 30
-Paragraph 26
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS106-2
-Paragraph 20, 21, 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 158
-Paragraph 7, 21, 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5, 6, 7, 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Implementation Guide (Q and A)
-Number FAS88
-Paragraph 63
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-URI http://asc.fasb.org/topic&trid=2235017

+ Details

Comprehensive Income (Loss) and Accumulated Other Comprehensive (Loss) Income

12 Months Ended

Jun. 30, 2012

Comprehensive Income (Loss) and Accumulated Other Comprehensive (Loss) Income [Abstract]

COMPREHENSIVE INCOME (LOSS) AND ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME

NOTE 14 — COMPREHENSIVE INCOME (LOSS) AND ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME


(in thousands)	2012		2011		2010
Net income	$	310,833	$	232,277	$	48,202
Unrealized loss on derivatives designated and qualified as cash flow hedges, net of income tax benefit of $7.3 million, $0.4 million, and $0.6 million, respectively		(11,623)		(679)		(936)
Reclassification of unrealized loss (gain) on expired derivatives designated and qualified as cash flow hedges, net of income tax (benefit) expense of ($0.2) million, ($0.4)million, and $0.9 million, respectively		272		642		(1,482)
Unrecognized net pension and other postretirement benefit (loss) gain, net of income tax (benefit) expense of ($50.6) million, $11.9 million and ($14.1) million, respectively		(90,686)		28,087		(17,397)
Reclassification of net pension and other postretirement benefit loss, net of income tax benefit of $3.0 million, $3.9 million and $0.9 million, respectively		5,964		7,131		2,975
Foreign currency translation adjustments, net of income tax (benefit) expense of ($84.0) million, $21.4 million, and ($41.5) million, respectively		(140,797)		122,358		(68,837)
Total comprehensive income (loss)		73,963		389,816		(37,475)
Comprehensive (loss) income attributable to noncontrolling interests		(76)		4,779		606
Comprehensive income (loss) attributable to Kennametal Shareowners	$	74,039	$	385,037	$	(38,081)

The components of accumulated other comprehensive (loss) income consist of the following at June 30 (in thousands):


2012	Pre-tax		Tax		After-tax
Unrealized loss on derivatives designated and qualified as cash flow hedges	$	(21,487)	$	8,240	$	(13,247)
Unrecognized net actuarial losses		(203,239)		70,206		(133,033)
Unrecognized net prior service credit		2,053		(771)		1,282
Unrecognized transition obligation		(1,193)		(47)		(1,240)
Foreign currency translation adjustments		(59,707)		55,283		(4,424)
Total accumulated other comprehensive loss	$	(283,573)	$	132,911	$	(150,662)


2011	Pre-tax		Tax		After-tax
Unrealized loss on derivatives designated and qualified as cash flow hedges	$	(3,227)	$	1,331	$	(1,896)
Unrecognized net actuarial losses		(71,262)		23,003		(48,259)
Unrecognized net prior service credit		2,252		(963)		1,289
Unrecognized transition obligation		(1,203)		(95)		(1,298)
Foreign currency translation adjustments		161,451		(28,758)		132,693
Total accumulated other comprehensive income	$	88,011	$	(5,482)	$	82,529

- Definition

The entire disclosure for comprehensive income. Includes, but is not limited to, the following: 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income. Components of comprehensive income include: (1) foreign currency translation adjustments; (2) gains (losses) on foreign currency transactions that are designated as, and are effective as, economic hedges of a net investment in a foreign entity; (3) gains (losses) on intercompany foreign currency transactions that are of a long-term-investment nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements; (4) change in the market value of a futures contract that qualifies as a hedge of an asset reported at fair value; (5) unrealized holding gains (losses) on available-for-sale securities and that resulting from transfers of debt securities from the held-to-maturity category to the available-for-sale category; (6) a net loss recognized as an additional pension liability not yet recognized as net periodic pension cost; and (7) the net gain (loss) and net prior service cost or credit for pension plans and other postretirement benefit plans.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 14-26
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 11
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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
-Glossary Reclassification Adjustments
-URI http://asc.fasb.org/extlink&oid=6522872

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-Name Accounting Standards Codification
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+ Details

Restructuring and Asset Impairment Charges

12 Months Ended

Jun. 30, 2012

Restructuring and Asset Impairment Charges [Abstract]

RESTRUCTURING AND ASSET IMPAIRMENT CHARGES

NOTE 15 — RESTRUCTURING AND ASSET IMPAIRMENT CHARGES

During 2011, we completed our restructuring plans to reduce costs and improve operating efficiencies. These actions related to the rationalization of certain manufacturing and service facilities as well as other employment and cost reduction programs. Restructuring and related charges recorded in 2011 amounted to $21.5 million, including $13.7 million of restructuring charges of which $1.1 million were related to inventory disposals and recorded in cost of goods sold. Restructuring-related charges of $4.4 million were recorded in cost of goods sold and $3.4 million in operating expense during 2011.

During 2010, restructuring and related charges amounted to $48.9 million, including $44.3 million of restructuring charges of which $0.4 million were related to inventory disposals and recorded in cost of goods sold. Restructuring-related charges of $3.5 million were recorded in cost of goods sold and $1.1 million in operating expense during 2010.

The combined total pre-tax charges from inception of these restructuring programs in 2008 through June 30, 2011 were approximately $150 million. The majority of these pre-tax charges were severance charges. Total restructuring and related charges since inception through June 30, 2011 have been recorded as follows: approximately $104 million in Industrial, approximately $44 million in Infrastructure and approximately $2 million in Corporate for the write-off our pre-existing ERP system. These restructuring programs were completed in 2011.

Restructuring accruals are recorded in other current liabilities in our consolidated balance sheet and the amount attributable to each segment is as follows:


(in thousands)	June 30, 2011		Expense		Asset Write-down			Cash Expenditures			Translation			June 30, 2012
Industrial
Severance	$	7,811	$	-	$	-		$	(6,983	)	$	(208	)	$	620
Facilities		525		-		-			(500	)		(25	)		-
Other		1,604		-		-			(1,098	)		(148	)		358
Total Industrial		9,940		-		-			(8,581	)		(381	)		978
Infrastructure
Severance		1,650		-		-			(1,561	)		(89	)		-
Facilities		269		-		-			(226	)		(10	)		33
Other		852		-		-			(470	)		(64	)		318
Total Infrastructure		2,771		-		-			(2,257	)		(163	)		351
Total	$	12,711	$	-	$	-		$	(10,838	)	$	(544	)	$	1,329


(in thousands)	June 30, 2010		Expense		Asset Write-down			Cash Expenditures			Translation			June 30, 2011
Industrial
Severance	$	18,327	$	4,363	$	-		$	(16,510	)	$	1,631		$	7,811
Facilities		508		2,318		(1,857	)		(444	)		-			525
Other		403		2,031		-			(931	)		101			1,604
Total Industrial		19,238		8,712		(1,857	)		(17,885	)		1,732			9,940
Infrastructure
Severance		7,637		2,484		-			(9,399	)		928			1,650
Facilities		211		1,319		(1,057	)		(204	)		-			269
Other		168		1,156		-			(530	)		58			852
Total Infrastructure		8,016		4,959		(1,057	)		(10,133	)		986			2,771
Total	$	27,254	$	13,671	$	(2,914	)	$	(28,018	)	$	2,718		$	12,711

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References + Details

Financial Instruments

12 Months Ended

Jun. 30, 2012

Financial Instruments [Abstract]

FINANCIAL INSTRUMENTS

NOTE 16 — FINANCIAL INSTRUMENTS

The methods used to estimate the fair value of our financial instruments are as follows:

Cash and Equivalents, Current Maturities of Long-Term Debt and Notes Payable to Banks The carrying amounts approximate their fair value because of the short maturity of the instruments.

Long-Term Debt Fixed rate debt had a fair market value of $306.8 million and $315.8 million at June 30, 2012 and 2011, respectively. The fair value is determined based on the quoted market price of this debt as of June 30.

Foreign Exchange Contracts The notional amount of outstanding foreign exchange contracts, translated at current exchange rates, was $69.9 million and $37.6 million at June 30, 2012 and 2011, respectively. We would have received $0.4 million at June 30, 2012 and would have paid an immaterial amount at June 30, 2011, to settle these contracts representing the fair value of these agreements. The carrying value equaled the fair value for these contracts at June 30, 2012 and 2011. Fair value was estimated based on quoted market prices of comparable instruments.

Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist primarily of temporary cash investments and trade receivables. By policy, we make temporary cash investments with high credit quality financial institutions and limit the amount of exposure to any one financial institution. With respect to trade receivables, concentrations of credit risk are significantly reduced, because we serve numerous customers in many industries and geographic areas.

We are exposed to counterparty credit risk for nonperformance of derivatives and, in the unlikely event of nonperformance, to market risk for changes in interest and currency rates, as well as settlement risk. We manage exposure to counterparty credit risk through credit standards, diversification of counterparties and procedures to monitor concentrations of credit risk. We do not anticipate nonperformance by any of the counterparties. As of June 30, 2012 and 2011, we had no significant concentrations of credit risk.

Stock-Based Compensation

12 Months Ended

Jun. 30, 2012

Stock-Based Compensation [Abstract]

STOCK-BASED COMPENSATION

NOTE 17 — STOCK-BASED COMPENSATION

Options

The assumptions used in our Black-Scholes valuation related to grants made during 2012, 2011 and 2010 were as follows:


	2012		2011		2010
Risk-free interest rate		1.1%		1.4%		2.3%
Expected life (years) ⁽²⁾		4.5		4.5		4.5
Expected volatility ⁽³⁾		47.6%		47.0%		44.0%
Expected dividend yield		1.5%		2.0%		1.8%

(2)	Expected life is derived from historical experience.

(3)	Expected volatility is based on the implied historical volatility of our stock.

Changes in our stock options for 2012 were as follows:


	Options			Weighted Average Exercise Price		Weighted Average Remaining Life (years)		Aggregate Intrinsic value (in thousands)
Options outstanding, June 30, 2011		3,388,003		$	26.50
Granted		358,318			39.00
Exercised		(786,502	)		24.70
Lapsed and forfeited		(68,256	)		29.89
Options outstanding, June 30, 2012		2,891,563		$	28.46		5.8	$	17,426

Options vested and expected to vest, June 30, 2012		2,842,254		$	28.41		5.7	$	17,191

Options exercisable, June 30, 2012		1,725,004		$	27.97		4.6	$	10,766

During 2012, 2011 and 2010, compensation expense related to stock options was $5.5 million, $5.2 million and $4.3 million, respectively. As of June 30, 2012, the total unrecognized compensation cost related to options outstanding was $3.6 million and is expected to be recognized over a weighted average period of 1.9 years.

Weighted average fair value of options granted during 2012, 2011 and 2010 was $13.87, $9.33 and $7.32, respectively. Fair value of options vested during 2012, 2011 and 2010 was $4.7 million, $4.4 million and $4.1 million, respectively.

Tax benefits, relating to excess stock-based compensation deductions, are presented in the statement of cash flow as financing cash inflows. Tax benefits resulting from stock-based compensation deductions in excess of amounts reported for financial reporting purposes were $4.1 million, $2.9 million and $0.5 million in 2012, 2011 and 2010, respectively.

The amount of cash received from the exercise of capital stock options during 2012, 2011 and 2010 was $19.4 million, $13.6 million and $7.2 million, respectively. The related tax benefit was $4.4 million, $3.2 million, and $1.2 million for 2012, 2011 and 2010, respectively. The total intrinsic value of options exercised during 2012, 2011 and 2010 was $14.2 million, $9.9 million, and $4.0 million, respectively.

Under the provisions of the 2010 Plan participants may deliver stock, owned by the holder for at least six months, in payment of the option price and receive credit for the fair market value of shares on the date of delivery. The fair market value of shares delivered during the year ended June 30, 2012 and 2011 was $0.4 million and $0.8 million, respectively.

Restricted Stock Awards

Changes in our restricted stock awards for 2012 were as follows:


	Shares	Weighted Average Fair Value
Unvested restricted stock awards, June 30, 2011	89,315	$	32.90
Vested	(64,444)		34.47
Forfeited	(841)		29.60
Unvested restricted stock awards, June 30, 2012	24,030	$	28.83

During 2012, 2011 and 2010, compensation expense related to restricted stock awards was $0.9 million, $2.1 million and $2.7 million, respectively. As of June 30, 2012, the total unrecognized compensation cost related to unvested restricted stock awards was $0.1 million and is expected to be recognized over a weighted average period of 0.2 years.

Restricted Stock Units – Time Vesting and Performance Vesting

In 2010, we began granting time vesting restricted stock units under the 2002 Plan in place of restricted stock awards that had been traditionally granted under the plan.

Performance vesting restricted stock units are earned pro rata each year if certain performance goals are met over a 3-year period, and are also subject to a service condition that requires the individual to be employed by the Company at the payment date after the 3-year performance period, with the exception of retirement eligible grantees, who upon retirement are entitled to receive payment for any units that have been earned, including a prorated portion in the partially completed fiscal year in which the retirement occurs.

Changes in our time vesting and performance vesting restricted stock units for 2012 were as follows:


	Performance Vesting Stock Units		Performance Vesting Weighted Average Fair Value		Time Vesting Stock Units			Time Vesting Weighted Average Fair Value
Unvested performance vesting and time vesting restricted stock units, June 30, 2011		116,368	$	26.89		906,082		$	25.81
Granted		129,977		38.95		358,117			39.30
Vested		-		-		(240,280	)		25.89
Forfeited		-		-		(52,152	)		31.28
Unvested performance vesting and time vesting restricted stock units, June 30, 2012		246,345	$	31.27		971,767		$	30.47

During 2012, 2011 and 2010, compensation expense related to time vesting and performance vesting restricted stock units was $14.9 million, $10.3 million and $2.7 million, respectively. As of June 30, 2012, the total unrecognized compensation cost related to unvested time vesting and performance vesting restricted stock units was $15.7 million and is expected to be recognized over a weighted average period of 2.2 years.

Restricted Stock Units – STEP

On November 26, 2007, the Company adopted a one-time, long-term equity program, the Kennametal Inc. 2008 Strategic Transformational Equity Program, under the 2002 Plan (STEP). The STEP was designed to compensate participating executives for achievement of certain performance conditions during the period which began on October 1, 2007 and ended on September 30, 2011. No new grants under the STEP were made in 2011 or 2012. There are no voting rights or dividends associated with restricted stock units under the STEP.

As of June 30, 2012, no restricted stock units have been earned or paid under the STEP and the program has terminated.

Changes in the EPS performance-based portion of STEP restricted stock units for 2012 were as follows:


	Stock Units			Weighted Average Fair Value
Unvested EPS performance-based restricted stock units, June 30, 2011		431,789		$	35.23
Forfeited		(431,789	)		35.23
Unvested EPS performance-based restricted stock units, June 30, 2012		-		$	-

As of June 30, 2012, none of the EPS performance-based restricted stock units vested.

Changes in the TSR performance-based STEP restricted stock units for 2012 were as follows:


	Stock Units			Weighted Average Fair Value
Unvested TSR performance-based restricted stock units, June 30, 2011		232,497		$	8.21
Forfeited		(232,497	)		8.21
Unvested TSR performance-based restricted stock units, June 30, 2012		-		$	-

During 2012, 2011 and 2010, compensation expense related to STEP restricted stock units was $0.2 million, $0.4 million and $0.5 million, respectively.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 50
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666

Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Topic 718
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901

Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 718
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 40
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929

+ Details

Environmental Matters

12 Months Ended

Jun. 30, 2012

Environmental Matters [Abstract]

ENVIRONMENTAL MATTERS

NOTE 18 — ENVIRONMENTAL MATTERS

The operation of our business has exposed us to certain liabilities and compliance costs related to environmental matters. We are involved in various environmental cleanup and remediation activities at certain of our locations.

Superfund Sites We are involved as a potentially responsible party (PRP) at various sites designated by the United States Environmental Protection Agency (USEPA) as Superfund sites. For certain of these sites, we have evaluated the claims and potential liabilities and have determined that neither are material, individually or in the aggregate. For certain other sites, proceedings are in the very early stages and have not yet progressed to a point where it is possible to estimate the ultimate cost of remediation, the timing and extent of remedial action that may be required by governmental authorities or the amount of our liability alone or in relation to that of any other PRPs.

Other Environmental Issues We establish and maintain reserves for other potential environmental issues. At June 30, 2012 and 2011, the total of accruals for these reserves was $5.1 million and $5.4 million, respectively. These totals represent anticipated costs associated with the remediation of these issues. We recorded additional reserves of $0.6 million and $1.5 million in 2012 and 2011, respectively. Additional reserves recorded in 2012 primarily relate to the business acquisition. We recorded favorable foreign currency translation adjustments of $0.5 million during 2012 and unfavorable foreign currency translation adjustments of $0.6 million during 2011. Cash payments of $0.4 million and $0.8 million were made against these reserves during 2012 and 2011, respectively. In 2011, we also had a $1.1 million reversal of an international environmental liability and payment of a civil penalty of $0.2 million related to our Chestnut Ridge, Pennsylvania facility closure.

The reserves we have established for environmental liabilities represent our best current estimate of the costs of addressing all identified environmental situations, based on our review of currently available evidence, and take into consideration our prior experience in remediation and that of other companies, as well as public information released by the USEPA, other governmental agencies, and by the PRP groups in which we are participating. Although the reserves currently appear to be sufficient to cover these environmental liabilities, there are uncertainties associated with environmental liabilities, and we can give no assurance that our estimate of any environmental liability will not increase or decrease in the future. The reserved and unreserved liabilities for all environmental concerns could change substantially due to factors such as the nature and extent of contamination, changes in remedial requirements, technological changes, discovery of new information, the financial strength of other PRPs, the identification of new PRPs and the involvement of and direction taken by the government on these matters.

We maintain a Corporate Environmental Health and Safety (EHS) Department to monitor compliance with environmental regulations and to oversee remediation activities. In addition, we have designated EHS coordinators who are responsible for each of our global manufacturing facilities. Our financial management team periodically meets with members of the Corporate EHS Department and the Corporate Legal Department to review and evaluate the status of environmental projects and contingencies. On a quarterly basis, we review financial provisions and reserves for environmental contingencies and adjust these reserves when appropriate.

- Definition

The entire disclosure for environmental loss contingencies, such as presence of hazardous waste, relevant information from reports issued by regulators, and estimated costs to achieve compliance with regulatory requirements. This element may be used for all of an entity's disclosures about environmental loss contingencies.

+ References + Details

Commitments and Contingencies

12 Months Ended

Jun. 30, 2012

Commitments and Contingencies [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 19 — COMMITMENTS AND CONTINGENCIES

Legal Matters Various lawsuits arising during the normal course of business are pending against us. In our opinion, the ultimate liability, if any, resulting from these matters will have no significant effect on our consolidated financial positions or results of operations.

Lease Commitments We lease a wide variety of facilities and equipment under operating leases, primarily for warehouses, production and office facilities and equipment. Lease expense under these rentals amounted to $29.1 million, $27.1 million and $28.2 million in 2012, 2011 and 2010, respectively. Future minimum lease payments for non-cancelable operating leases are $19.1 million, $12.5 million, $7.1 million, $4.7 million and $3.6 million for the years 2013 through 2017 and $25.3 million thereafter.

Purchase Commitments We have purchase commitments for materials, supplies and machinery and equipment as part of the ordinary conduct of business. A few of these commitments extend beyond one year and are based on minimum purchase requirements. We believe these commitments are not at prices in excess of current market.

Other Contractual Obligations We do not have material financial guarantees or other contractual commitments that are reasonably likely to adversely affect our liquidity.

Related Party Transactions Sales to affiliated companies were immaterial in 2012, 2011 and 2010. We do not have any other related party transactions that affect our operations, results of operations, cash flow or financial condition.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

+ Details

Segment Data

12 Months Ended

Jun. 30, 2012

Segment Data [Abstract]

SEGMENT DATA

NOTE 20 — SEGMENT DATA

We operate in two reportable operating segments consisting of Industrial and Infrastructure. We do not allocate certain corporate expenses related to executive retirement plans, the Company’s Board of Directors and strategic initiatives, as well as certain other costs and report them in Corporate. Segment determination is based upon internal organizational structure, the manner in which we organize segments for making operating decisions and assessing performance, the availability of separate financial results and materiality considerations.

Sales to a single customer did not aggregate 4 percent or more of total sales in 2012, 2011 or 2010. Export sales from U.S. operations to unaffiliated customers were $102.1 million, $90.6 million, and $84.1 million in 2012, 2011 and 2010, respectively.

INDUSTRIAL The Industrial segment serves customers that operate in industrial end markets such as aerospace and defense, transportation and general engineering. The customers in these end markets manufacture engines, airframes, automobiles, trucks, ships and various types of industrial equipment. The technology and customization requirements for customers we serve vary by customer, application and industry. We serve them through both direct and indirect channel-partner models to respond to their needs, from machinery builds to end use. The value we deliver to our Industrial segment customers centers on application expertise and our diverse offering of products and services.

INFRASTRUCTURE The Infrastructure segment which includes Stellite, serves customers that operate in the earthworks and energy sectors who support primary industries such as oil and gas, power generation, underground, surface and hard-rock mining, highway construction and road maintenance. Generally, we rely on customer intimacy to serve this segment. By gaining an in-depth understanding of our customers’ engineering and development needs, we are able to offer complete system solutions and high-performance capabilities to optimize and add value to their operations.

Segment data is summarized as follows:


(in thousands)	2012			2011			2010
External sales:
Industrial	$	1,667,434		$	1,528,672		$	1,166,793
Infrastructure		1,068,812			874,821			717,274
Total external sales	$	2,736,246		$	2,403,493		$	1,884,067


Operating income :
Industrial	$	283,233		$	209,663		$	31,210
Infrastructure		141,640			121,733			79,899
Corporate		(8,464	)		(9,723	)		(17,881	)
Total operating income	$	416,409		$	321,673		$	93,228


Interest expense	$	27,215		$	22,760		$	25,203
Other (income) expense, net		(775	)		2,780			(8,577	)
Income from continuing operations before income taxes	$	389,969		$	296,133		$	76,602


Depreciation and amortization
Industrial	$	70,329		$	68,000		$	70,383
Infrastructure		33,744			25,471			26,046
Total depreciation and amortization	$	104,073		$	93,471		$	96,429


Equity income:
Industrial	$	7		$	229		$	107
Infrastructure		-			-			-
Total equity income	$	7		$	229		$	107


Total assets:
Industrial	$	1,465,300		$	1,531,409		$	1,310,635
Infrastructure		1,306,781			785,718			682,169
Corporate		262,107			437,342			275,019
Total assets	$	3,034,188		$	2,754,469		$	2,267,823


Capital expenditures:
Industrial	$	75,579		$	48,518		$	31,609
Infrastructure		27,457			26,411			11,017
Corporate		-			8,513			14,053
Total capital expenditures	$	103,036		$	83,442		$	56,679


Investments in affiliated companies:
Industrial	$	685		$	829		$	748
Infrastructure		-			-			1,503
Total investments in affiliated companies	$	685		$	829		$	2,251

Geographic information for sales, based on country of origin, and assets is as follows:


(in thousands)	2012		2011		2010
External sales:
United States	$	1,170,117	$	1,041,427	$	839,168
Germany		448,645		398,532		313,929
China		214,427		194,945		136,350
India		105,136		103,366		73,908
United Kingdom		99,386		63,466		52,145
Italy		80,520		64,199		50,358
Canada		80,007		59,743		44,538
Other		538,008		477,815		373,671
Total external sales	$	2,736,246	$	2,403,493	$	1,884,067

Total assets:
United States	$	1,177,705	$	1,165,705	$	1,091,510
Germany		485,442		472,665		333,917
China		232,423		179,223		132,072
United Kingdom		104,805		67,549		35,964
Italy		172,513		66,082		38,685
Canada		134,662		40,421		29,025
India		95,618		129,104		105,494
Other		631,020		633,720		501,156
Total assets:	$	3,034,188	$	2,754,469	$	2,267,823

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 131
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599

+ Details

Selected Quarterly Financial Data

12 Months Ended

Jun. 30, 2012

Selected Quarterly Financial Data [Abstract]

SELECTED QUARTERLY FINANCIAL DATA

NOTE 21 — SELECTED QUARTERLY FINANCIAL DATA (unaudited)


For the quarter ended (in thousands, except per share data)	September 30		December 31		March 31		June 30
2012
Sales	$	658,877	$	641,741	$	696,411	$	739,216
Gross profit		251,060		231,886		246,446		264,857
Net income attributable to Kennametal		71,986		73,697		75,499		86,048
Basic earnings per share attributable to Kennametal ⁽⁵⁾
Net income		0.89		0.92		0.94		1.07
Diluted earnings per share attributable to Kennametal ⁽⁵⁾
Net income		0.88		0.91		0.93		1.06

2011
Sales	$	529,158	$	565,768	$	614,830	$	693,737
Gross profit		188,740		200,025		229,981		265,645
Net income attributable to Kennametal ⁽⁴⁾		34,921		43,469		64,683		86,655
Basic earnings per share attributable to Kennametal ⁽⁵⁾
Net income		0.43		0.53		0.79		1.06
Diluted earnings per share attributable to Kennametal ⁽⁵⁾
Net income		0.42		0.52		0.77		1.04

(4) Income from continuing operations and net income attributable to Kennametal for the quarter ended June 30 and March 31, 2011 and December 31 and September 30, 2010, includes restructuring charges of $4.9 million, $1.0 million, $3.4 million and $3.3 million, respectively.

(5) Earnings per share amounts attributable to Kennametal for each quarter are computed using the weighted average number of shares outstanding during the quarter. Earnings per share amounts attributable to Kennametal for the full year are computed using the weighted average number of shares outstanding during the year. Thus, the sum of the four quarters’ earnings per share attributable to Kennametal does not always equal the full-year earnings per share attributable to Kennametal.

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

+ References + Details

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Jun. 30, 2012

Summary of Significant Accounting Policies [Abstract]

PRINCIPLES OF CONSOLIDATION

USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS

CASH AND CASH EQUIVALENTS

ACCOUNTS RECEIVABLE

INVENTORIES

PROPERTY, PLANT AND EQUIPMENT

Leased property and equipment under capital leases are depreciated using the straight-line method over the terms of the related leases.

LONG-LIVED ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

The carrying amount of goodwill attributable to each segment at June 30 is as follows:


(in thousands)	Industrial			Infrastructure			Total
Goodwill	$	393,974		$	246,311		$	640,285
Accumulated impairment losses		(150,842	)		-			(150,842	)
Balance as of June 30, 2010	$	243,132		$	246,311		$	489,443

Translation		17,971			3,914			21,885
Change in goodwill		17,971			3,914			21,885
Goodwill	$	411,945		$	250,225		$	662,170
Accumulated impairment losses		(150,842	)		-			(150,842	)
Balance as of June 30, 2011	$	261,103		$	250,225		$	511,328

Acquisition	$	-		$	242,553		$	242,553
Translation		(17,062	)		(17,469	)		(34,531	)
Change in goodwill		(17,062	)		225,084			208,022
Goodwill		394,883			475,309			870,192
Accumulated impairment losses		(150,842	)		-			(150,842	)
Balance as of June 30, 2012	$	244,041		$	475,309		$	719,350

We recorded no goodwill or other intangible asset impairments in 2012, 2011 and 2010.

The components of our other intangible assets were as follows as of June 30:


	Estimated		June 30, 2012					June 30, 2011
(in thousands)	Useful Life (in years)		Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Contract-based		4 to 15	$	21,450	$	(6,423	)	$	6,349	$	(5,380	)
Technology-based and other		4 to 17		37,594		(24,384	)		39,743		(25,442	)
Customer-related		10 to 20		178,500		(44,354	)		113,977		(38,275	)
Unpatented technology		15 to 30		46,035		(6,943	)		19,540		(4,740	)
Trademarks		5 to 20		13,977		(7,782	)		10,902		(4,875	)
Trademarks		Indefinite		35,817		-			40,480		-
Total			$	333,373	$	(89,886	)	$	230,991	$	(78,712	)

PENSION AND OTHER POSTRETIREMENT AND POSTEMPLOYMENT BENEFITS

EARNINGS PER SHARE

REVENUE RECOGNITION

STOCK-BASED COMPENSATION

RESEARCH AND DEVELOPMENT COSTS

SHIPPING AND HANDLING FEES AND COSTS

INCOME TAXES

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

CASH FLOW HEDGES

FAIR VALUE HEDGES

FOREIGN CURRENCY TRANSLATION

NEW ACCOUNTING STANDARDS

NEW ACCOUNTING STANDARDS

Adopted

Issued

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jun. 30, 2012

Summary of Significant Accounting Policies [Abstract]

The carrying amount of goodwill


(in thousands)	Industrial			Infrastructure			Total
Goodwill	$	393,974		$	246,311		$	640,285
Accumulated impairment losses		(150,842	)		-			(150,842	)
Balance as of June 30, 2010	$	243,132		$	246,311		$	489,443

Translation		17,971			3,914			21,885
Change in goodwill		17,971			3,914			21,885
Goodwill	$	411,945		$	250,225		$	662,170
Accumulated impairment losses		(150,842	)		-			(150,842	)
Balance as of June 30, 2011	$	261,103		$	250,225		$	511,328

Acquisition	$	-		$	242,553		$	242,553
Translation		(17,062	)		(17,469	)		(34,531	)
Change in goodwill		(17,062	)		225,084			208,022
Goodwill		394,883			475,309			870,192
Accumulated impairment losses		(150,842	)		-			(150,842	)
Balance as of June 30, 2012	$	244,041		$	475,309		$	719,350

The components of other intangible assets


	Estimated		June 30, 2012					June 30, 2011
(in thousands)	Useful Life (in years)		Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Contract-based		4 to 15	$	21,450	$	(6,423	)	$	6,349	$	(5,380	)
Technology-based and other		4 to 17		37,594		(24,384	)		39,743		(25,442	)
Customer-related		10 to 20		178,500		(44,354	)		113,977		(38,275	)
Unpatented technology		15 to 30		46,035		(6,943	)		19,540		(4,740	)
Trademarks		5 to 20		13,977		(7,782	)		10,902		(4,875	)
Trademarks		Indefinite		35,817		-			40,480		-
Total			$	333,373	$	(89,886	)	$	230,991	$	(78,712	)

- Definition

Tabular disclosure of goodwill by reportable segment and in total. Disclosure details may include, but are not limited to, the carrying amount of goodwill, goodwill acquired during the year, goodwill impairment losses recognized, goodwill written-off due to the sale of a business unit, goodwill not yet allocated, and any other changes to goodwill.

+ References + Details

Supplemental Cash Flow Disclosures (Tables)

12 Months Ended

Jun. 30, 2012

Supplemental Cash Flow Information [Abstract]

Supplemental Cash Flow Disclosures


Year ended June 30 (in thousands)	2012		2011		2010
Cash paid during the period for:
Interest	$	27,395	$	26,624	$	28,626
Income taxes		55,728		60,459		3,788
Supplemental disclosure of non-cash information:
Contribution of capital stock to employees' defined contribution benefit plans		-		948		6,352

Acquisition (Tables)

12 Months Ended

Jun. 30, 2012

Acquisition [Abstract]

Fair values of the assets acquired and liabilities assumed


(in thousands)		Total
ASSETS
Current assets:
Accounts receivable		$ 44,414
Inventories		42,270
Other current assets		5,094
Total current assets		91,778
Property and equipment		76,146
Goodwill		242,553
Other intangible assets		103,793
Deferred income taxes		22,392
Other		70
Total assets		$ 536,732

LIABILITIES
Current liabilities:
Short term debt and current maturities of long-term debt		$ 4,685
Accounts payable		43,534
Accrued income taxes		24,688
Other current liabilities		17,487
Total current liabilities		90,394
Long-term debt and capital leases		5,379
Deferred income taxes		48,537
Other long-term liabilities		4,649
Total liabilities		148,959
Noncontrolling interest		5,211
Net assets acquired		$ 382,562

Pro forma operating results


Year ended June 30 (in thousands)	2012		2011
Pro forma (unaudited):
Net Sales	$	3,042,987	$	2,675,119
Net income attributable to Kennametal	$	333,808	$	238,409

Per share data attributable to Kennametal :
Basic earnings per share	$	4.16	$	2.91
Diluted earnings per share	$	4.10	$	2.87

- Definition

Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate.

+ References + Details

Fair Value Measurements (Tables)

12 Months Ended

Jun. 30, 2012

Fair Value Measurements [Abstract]

Financial instruments at fair value on recurring basis

As of June 30, 2012 the fair values of the Company’s financial assets and financial liabilities measured at fair value on a recurring basis are categorized as follows:


(in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Derivatives⁽¹⁾	$	-	$	1,855	$	-	$ 1,855
Total assets at fair value	$	-	$	1,855	$	-	$ 1,855


Liabilities:
Derivatives⁽¹⁾	$	-	$	193	$	-	$ 193
Total liabilities at fair value	$	-	$	193	$	-	$ 193

As of June 30, 2011 the fair values of the Company’s financial assets and financial liabilities measured at fair value on a recurring basis are categorized as follows:


(in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Derivatives⁽¹⁾	$	-	$	896	$	-	$ 896
Total assets at fair value	$	-	$	896	$	-	$ 896


Liabilities:
Derivatives⁽¹⁾	$	-	$	3,330	$	-	$ 3,330
Total liabilities at fair value	$	-	$	3,330	$	-	$ 3,330

Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Jun. 30, 2012

Derivative Instruments and Hedging Activities [Abstract]

Fair value of derivatives


`	2012			2011
Derivatives designated as hedging instruments
Other current assets - range forward contracts	$	554		$	87
Other current liabilities - range forward contracts		(193	)		(159	)
Other assets - range forward contracts		3			-
Other assets - forward starting interest rate swap contracts		-			772
Other liabilities - forward starting interest rate swap contracts		-			(3,169	)
Total derivatives designated as hedging instruments		364			(2,469	)
Derivatives not designated as hedging instruments
Other current assets - currency forward contracts		1,298			37
Other current liabilities - currency forward contracts		-			(2	)
Total derivatives not designated as hedging instruments		1,298			35
Total derivatives	$	1,662		$	(2,434	)

(Gains) losses related to derivatives not designated as hedging instruments


(in thousands)	2012			2011			2010
Other (income) expense, net - currency forward contracts	$	(1,149	)	$	(1,138	)	$	1,077

(Gains) losses related to cash flow hedges


(in thousands)	2012			2011			2010
(Losses) gains recognized in other comprehensive (loss) income, net	$	(11,793	)	$	(26	)	$	(962	)

Losses (gains) reclassified from accumulated other comprehensive (loss) income into other (income) expense, net	$	272		$	645		$	(1,107	)

Inventories (Tables)

12 Months Ended

Jun. 30, 2012

Inventories [Abstract]

Inventories


(in thousands)	2012			2011
Finished goods	$	319,217		$	303,716
Work in process and powder blends		252,035			202,940
Raw materials		135,454			109,683
Inventories at current cost		706,706			616,339
Less: LIFO valuation		(120,850	)		(96,366	)
Total inventories	$	585,856		$	519,973

Other Current Liabilities (Tables)

12 Months Ended

Jun. 30, 2012

Other Current Liabilities [Abstract]

Other Current Liabilities


(in thousands)	2012		2011
Accrued employee benefits	$	33,783	$	55,833
Payroll, state and local taxes		14,290		15,997
Accrued restructuring expense (Note 15)		1,329		12,711
Other		98,161		82,665
Total other current liabilities	$	147,563	$	167,206

Long-Term Debt and Capital Leases (Tables)

12 Months Ended

Jun. 30, 2012

Long-Term Debt and Capital Leases [Abstract]

Long term debt and capital lease obligations


(in thousands)	2012			2011
3.875% Senior Unsecured Notes due 2022 net of discount of $0.4 million for 2012	$	299,646		$	-
Credit Agreement:
U.S. Dollar-denominated borrowings, 1.24% in 2012, due 2016		212,200			-
7.2% Senior Unsecured Notes due 2012 net of discount of $0.1 million for 2011 Also including interest rate swap adjustments of $6.1 million in 2011		-			305,954
Capital leases with terms expiring through 2018 at 2.3% to 5.7% in 2012 and 2.3% to 2.8% in 2011		6,195			3,113
Other		6,139			156
Total debt and capital leases		524,180			309,223
Less current maturities:
Long-term debt		(27,200	)		(306,032	)
Other		(5,814	)		-
Capital leases		(558	)		(1,272	)
Total current maturities		(33,572	)		(307,304	)
Long-term debt and capital leases, less current maturities	$	490,608		$	1,919

Future minimum lease payments under capital lease


(in thousands)
2013	$	803
2014		2,574
2015		1,658
2016		1,079
2017		601
After 2017		199
Total future minimum lease payments		6,914
Less amount representing interest		(719	)
Amount recognized as capital lease obligations	$	6,195

Income Taxes (Tables)

12 Months Ended

Jun. 30, 2012

Income Taxes [Abstract]

Income from Continuing Operations Before Income Taxes


(in thousands)	2012		2011			2010
Income from continuing operations before income taxes:
United States	$	95,410	$	69,042		$	3,925
International		294,559		227,091			72,677
Total income from continuing operations before income taxes	$	389,969	$	296,133		$	76,602

Current income taxes:
Federal	$	23,313	$	26,234		$	1,915
State		2,275		1,063			1,376
International		24,946		44,440			23,456
Total current income taxes		50,534		71,737			26,747
Deferred income taxes		28,602		(7,881	)		230
Provision for income taxes	$	79,136	$	63,856		$	26,977

Effective tax rate		20.3%		21.6%			35.2%

Reconciliation of income taxes computed using the statutory U.S. income tax rate and the provision for income taxes


(in thousands)	2012			2011			2010
Income taxes at U.S. statutory rate	$	136,489		$	103,647		$	26,811
State income taxes, net of federal tax benefits		4,110			1,956			2,290
U.S. income taxes provided on international income		8,164			21,556			1,107
Combined tax effects of international income		(50,574	)		(35,423	)		(4,460	)
Change in valuation allowance and other uncertain tax positions		(16,243	)		(20,215	)		2,024
Impact of domestic production activities deduction		(3,810	)		(6,413	)		(456	)
Research and development credit		(1,515	)		(2,685	)		(460	)
Other		2,515			1,433			121
Provision for income taxes	$	79,136		$	63,856		$	26,977

Components of net deferred tax assets and liabilities


(in thousands)	2012			2011
Deferred tax assets:
Net operating loss carryforwards	$	68,782		$	65,768
Inventory valuation and reserves		26,363			29,646
Pension benefits		38,552			713
Other postretirement benefits		9,958			8,312
Accrued employee benefits		30,179			30,975
Other accrued liabilities		8,857			7,939
Hedging activities		13,338			13,528
Tax credits and other carryforwards		6,354			5,431
Other		-			2,558
Total		202,383			164,870
Valuation allowance		(19,502	)		(25,662	)
Total deferred tax assets	$	182,881		$	139,208

Deferred tax liabilities:
Tax depreciation in excess of book	$	109,948		$	98,957
Intangible assets		68,806			35,965
Other		448			-
Total deferred tax liabilities	$	179,202		$	134,922
Total net deferred tax assets	$	3,679		$	4,286

Reconciliation of unrecognized tax benefits excluding interest


(in thousands)	2012			2011
Balance at beginning of year	$	18,289		$	16,391
Increases for tax positions of prior years		946			-
Decreases for tax positions of prior years		-			(85	)
Increases for tax positions related to the current year		116			285
Decreases for tax positions related to the current year		(1,635	)		-
Decreases related to settlement with taxing authority		(7,280	)		-
Decreases related to lapse of statute of limitations		(805	)		(794	)
Foreign currency translation		(2,333	)		2,492
Balance at end of year	$	7,298		$	18,289

Pension and Other Postretirement and Postemployment Benefits (Tables)

12 Months Ended

Jun. 30, 2012

Pension and other Postretirement and Postemployment Benefits [Abstract]

Defined Benefit Pension Plans


(in thousands)	2012			2011
Change in benefit obligation:
Benefit obligation, beginning of year	$	786,572		$	759,075
Service cost		6,982			7,650
Interest cost		42,107			40,984
Participant contributions		34			39
Actuarial losses (gains)		153,680			(4,400	)
Benefits and expenses paid		(39,051	)		(37,082	)
Foreign currency translation adjustment		(16,437	)		22,074
Effect of acquired business/plan combinations		28,296			-
Plan amendments		-			675
Plan curtailments/settlements		(3,877	)		(2,443	)
Benefit obligation, end of year	$	958,306		$	786,572


Change in plan assets:
Fair value of plan assets, beginning of year	$	725,466		$	656,516
Actual return on plan assets		68,082			93,570
Company contributions		9,683			8,536
Participant contributions		34			39
Benefits and expenses paid		(39,051	)		(37,082	)
Plan curtailments/settlements		(3,877	)		(2,443	)
Effect of acquired business/plan combinations		26,438			-
Foreign currency translation adjustments		(2,932	)		6,330
Fair value of plan assets, end of year	$	783,843		$	725,466


Funded status of plan	$	(174,463	)	$	(61,106	)


Amounts recognized in the balance sheet consist of:
Long-term prepaid benefit	$	2,803		$	63,579
Short-term accrued benefit obligation		(9,285	)		(7,619	)
Accrued pension benefits		(167,981	)		(117,066	)
Net amount recognized	$	(174,463	)	$	(61,106	)

Defined benefit plans pretax amounts recognized in accumulated other comprehensive income


(in thousands)	2012			2011
Unrecognized net actuarial losses	$	191,340		$	66,734
Unrecognized net prior service credits		(1,379	)		(1,540	)
Unrecognized transition obligations		1,193			1,202
Total	$	191,154		$	66,396

Accumulated benefit obligations exceeding the fair value of plan assets


(in thousands)	2012		2011
Projected benefit obligation	$	855,697	$	124,684
Accumulated benefit obligation		835,870		123,016
Fair value of plan assets		671,588		-

Net periodic pension cost


(in thousands)	2012			2011			2010
Service cost		$ 6,982		$	7,650		$	7,949
Interest cost		42,107			40,984			42,437
Expected return on plan assets		(51,376	)		(48,203	)		(46,226	)
Amortization of transition obligation		65			52			56
Amortization of prior service credit		(186	)		(281	)		(280	)
Special termination benefits		-			-			3,577
Curtailment Loss		-			-			300
Settlement loss		1,253			18			-
Recognition of actuarial losses		8,259			12,277			4,447
Net periodic pension cost		$ 7,104		$	12,497		$	12,260

Other postretirement benefit plans


(in thousands)	2012			2011
Change in benefit obligation:
Benefit obligation, beginning of year	$	19,771		$	19,910
Service cost		75			77
Interest cost		1,029			1,037
Actuarial loss		7,345			2,474
Benefits paid		(3,408	)		(3,203	)
Plan amendment		(238	)		(524	)
Benefit obligation, end of year	$	24,574		$	19,771


Funded status of plan	$	(24,574	)	$	(19,771	)


Amounts recognized in the balance sheet consist of:
Short-term accrued benefit obligation	$	(1,808	)	$	(1,918	)
Accrued postretirement benefits		(22,766	)		(17,853	)
Net amount recognized	$	(24,574	)	$	(19,771	)

Other postretirement benefit plans pretax OPEB amounts recognized in accumulated other comprehensive income


(in thousands)	2012			2011
Unrecognized net actuarial losses (gains)	$	6,538		$	(864	)
Unrecognized net prior service cost		(674	)		(524	)
Total	$	5,864		$	(1,388	)

Net periodic other postretirement costs (benefit)


(in thousands)	2012			2011			2010
Service cost		$ 75		$	77		$	99
Interest cost		1,029			1,037			1,266
Amortization of prior service cost		(89	)		-			8
Recognition of actuarial gains		(56	)		(190	)		(368	)
Net periodic other postretirement benefit cost		$ 959		$	924		$	1,005

Actuarial assumptions used to determine the present value of net benefit obligations


	2012		2011		2010
Discount Rate:
U.S. plans		4.0%		5.5%		5.5%
International plans		4.0-5.0%		5.5-5.8%		5.0-5.5%
Rates of future salary increases:
U.S. plans		3.0-5.0%		3.0-5.0%		3.0-5.0%
International plans		2.5-4.0%		2.0-3.5%		3.5%

Assumptions used to determine the net periodic costs (benefits)


	2012		2011		2010
Discount Rate:
U.S. plans		5.5%		5.5%		6.5%
International plans		5.5-5.8%		5.0-5.5%		5.8-7.0%
Rates of future salary increases:
U.S. plans		3.0-5.0%		3.0-5.0%		3.0-5.0%
International plans		2.0-3.5%		3.5%		3.5%
Rate of return on plans assets:
U.S. plans		8.0%		8.0%		8.0%
International plans		5.8%		6.4%		6.7%

Annual assumed rate of increase in per capita cost of covered benefits for postretirement benefit plans


	2012		2011		2010
Health care costs trend rate assumed for next year		8.1%		8.3%		8.6%
Rate to which the cost trend rate gradually declines		4.5%		4.5%		4.5%
Year that the rate reaches the rate at which it is assumed to remain		2029		2029		2029

Calculated effect of change on assumption used to calculate cost components and obligations of healthcare plans


(in thousands)	1% Increase		1% Decrease
Effect on total service and interest cost components	$	58	$	(51)
Effect on other postretirement obligation		912		(800)

Asset allocations and target allocations by asset class


	2012		2011		Target %
Equity		30%		35%		30%
Fixed Income		65%		60%		70%
Other		5%		5%		0%

Benefit plan assets classified under appropriate level of fair value hierarchy

The following table presents the fair value of the benefit plan assets classified under the appropriate level of the fair value hierarchy as of June 30, 2012:


(in thousands)	Level 1		Level 2		Level 3		Total

Corporate fixed income securities	$	-	$	391,868	$	-	$ 391,868
Common / collective trusts:
Value funds		-		96,216		-	96,216
Growth funds		-		52,011		-	52,011
Balanced funds		-		14,039		-	14,039
Common stock		76,685		-		-	76,685
Government securities:
U.S. Government securities		-		50,273		-	50,273
Foreign government securities		-		25,969		-	25,969
Other fixed income securities		-		36,165		-	36,165
Other		2,120		38,497		-	40,617
Total investments	$	78,805	$	705,038	$	-	$ 783,843

The following table presents the fair value of the benefit plan assets classified under the appropriate level of the fair value hierarchy as of June 30, 2011:


(in thousands)	Level 1		Level 2		Level 3		Total

Corporate fixed income securities	$	-	$	333,955	$	-	$ 333,955
Common / collective trusts:
Value funds		-		90,679		-	90,679
Growth funds		-		54,392		-	54,392
Balanced funds		-		15,798		-	15,798
Common stock		93,403		-		-	93,403
Government securities:
U.S. Government securities		-		30,236		-	30,236
Foreign government securities		-		27,465		-	27,465
Other fixed income securities		-		41,043		-	41,043
Other		1,723		36,772		-	38,495
Total investments	$	95,126	$	630,340	$	-	$ 725,466

Comprehensive Income (Loss) and Accumulated Other Comprehensive (Loss) Income (Tables)

12 Months Ended

Jun. 30, 2012

Comprehensive Income (Loss) and Accumulated Other Comprehensive (Loss) Income [Abstract]

Comprehensive income (loss)


(in thousands)	2012		2011		2010
Net income	$	310,833	$	232,277	$	48,202
Unrealized loss on derivatives designated and qualified as cash flow hedges, net of income tax benefit of $7.3 million, $0.4 million, and $0.6 million, respectively		(11,623)		(679)		(936)
Reclassification of unrealized loss (gain) on expired derivatives designated and qualified as cash flow hedges, net of income tax (benefit) expense of ($0.2) million, ($0.4)million, and $0.9 million, respectively		272		642		(1,482)
Unrecognized net pension and other postretirement benefit (loss) gain, net of income tax (benefit) expense of ($50.6) million, $11.9 million and ($14.1) million, respectively		(90,686)		28,087		(17,397)
Reclassification of net pension and other postretirement benefit loss, net of income tax benefit of $3.0 million, $3.9 million and $0.9 million, respectively		5,964		7,131		2,975
Foreign currency translation adjustments, net of income tax (benefit) expense of ($84.0) million, $21.4 million, and ($41.5) million, respectively		(140,797)		122,358		(68,837)
Total comprehensive income (loss)		73,963		389,816		(37,475)
Comprehensive (loss) income attributable to noncontrolling interests		(76)		4,779		606
Comprehensive income (loss) attributable to Kennametal Shareowners	$	74,039	$	385,037	$	(38,081)

Components of accumulated other comprehensive (loss) income


2012	Pre-tax		Tax		After-tax
Unrealized loss on derivatives designated and qualified as cash flow hedges	$	(21,487)	$	8,240	$	(13,247)
Unrecognized net actuarial losses		(203,239)		70,206		(133,033)
Unrecognized net prior service credit		2,053		(771)		1,282
Unrecognized transition obligation		(1,193)		(47)		(1,240)
Foreign currency translation adjustments		(59,707)		55,283		(4,424)
Total accumulated other comprehensive loss	$	(283,573)	$	132,911	$	(150,662)


2011	Pre-tax		Tax		After-tax
Unrealized loss on derivatives designated and qualified as cash flow hedges	$	(3,227)	$	1,331	$	(1,896)
Unrecognized net actuarial losses		(71,262)		23,003		(48,259)
Unrecognized net prior service credit		2,252		(963)		1,289
Unrecognized transition obligation		(1,203)		(95)		(1,298)
Foreign currency translation adjustments		161,451		(28,758)		132,693
Total accumulated other comprehensive income	$	88,011	$	(5,482)	$	82,529

Restructuring and Asset Impairment Charges (Tables)

12 Months Ended

Jun. 30, 2012

Restructuring and Asset Impairment Charges [Abstract]

Other current liabilities amount attributable to each segment


(in thousands)	June 30, 2011		Expense		Asset Write-down			Cash Expenditures			Translation			June 30, 2012
Industrial
Severance	$	7,811	$	-	$	-		$	(6,983	)	$	(208	)	$	620
Facilities		525		-		-			(500	)		(25	)		-
Other		1,604		-		-			(1,098	)		(148	)		358
Total Industrial		9,940		-		-			(8,581	)		(381	)		978
Infrastructure
Severance		1,650		-		-			(1,561	)		(89	)		-
Facilities		269		-		-			(226	)		(10	)		33
Other		852		-		-			(470	)		(64	)		318
Total Infrastructure		2,771		-		-			(2,257	)		(163	)		351
Total	$	12,711	$	-	$	-		$	(10,838	)	$	(544	)	$	1,329


(in thousands)	June 30, 2010		Expense		Asset Write-down			Cash Expenditures			Translation			June 30, 2011
Industrial
Severance	$	18,327	$	4,363	$	-		$	(16,510	)	$	1,631		$	7,811
Facilities		508		2,318		(1,857	)		(444	)		-			525
Other		403		2,031		-			(931	)		101			1,604
Total Industrial		19,238		8,712		(1,857	)		(17,885	)		1,732			9,940
Infrastructure
Severance		7,637		2,484		-			(9,399	)		928			1,650
Facilities		211		1,319		(1,057	)		(204	)		-			269
Other		168		1,156		-			(530	)		58			852
Total Infrastructure		8,016		4,959		(1,057	)		(10,133	)		986			2,771
Total	$	27,254	$	13,671	$	(2,914	)	$	(28,018	)	$	2,718		$	12,711

Stock-Based Compensation (Tables)

12 Months Ended

Jun. 30, 2012

Stock-Based Compensation [Abstract]

Assumptions used in our Black-Scholes valuation


	2012		2011		2010
Risk-free interest rate		1.1%		1.4%		2.3%
Expected life (years) ⁽²⁾		4.5		4.5		4.5
Expected volatility ⁽³⁾		47.6%		47.0%		44.0%
Expected dividend yield		1.5%		2.0%		1.8%

(2)	Expected life is derived from historical experience.

(3)	Expected volatility is based on the implied historical volatility of our stock.

Changes in stock options


	Options			Weighted Average Exercise Price		Weighted Average Remaining Life (years)		Aggregate Intrinsic value (in thousands)
Options outstanding, June 30, 2011		3,388,003		$	26.50
Granted		358,318			39.00
Exercised		(786,502	)		24.70
Lapsed and forfeited		(68,256	)		29.89
Options outstanding, June 30, 2012		2,891,563		$	28.46		5.8	$	17,426

Options vested and expected to vest, June 30, 2012		2,842,254		$	28.41		5.7	$	17,191

Options exercisable, June 30, 2012		1,725,004		$	27.97		4.6	$	10,766

Restricted Stock Awards


	Shares	Weighted Average Fair Value
Unvested restricted stock awards, June 30, 2011	89,315	$	32.90
Vested	(64,444)		34.47
Forfeited	(841)		29.60
Unvested restricted stock awards, June 30, 2012	24,030	$	28.83

Changes in time vesting and performance vesting restricted stock units


	Performance Vesting Stock Units		Performance Vesting Weighted Average Fair Value		Time Vesting Stock Units			Time Vesting Weighted Average Fair Value
Unvested performance vesting and time vesting restricted stock units, June 30, 2011		116,368	$	26.89		906,082		$	25.81
Granted		129,977		38.95		358,117			39.30
Vested		-		-		(240,280	)		25.89
Forfeited		-		-		(52,152	)		31.28
Unvested performance vesting and time vesting restricted stock units, June 30, 2012		246,345	$	31.27		971,767		$	30.47

Changes in the EPS performance-based portion of STEP restricted stock units


	Stock Units			Weighted Average Fair Value
Unvested EPS performance-based restricted stock units, June 30, 2011		431,789		$	35.23
Forfeited		(431,789	)		35.23
Unvested EPS performance-based restricted stock units, June 30, 2012		-		$	-

Changes in the TSR performance-based STEP restricted stock units


	Stock Units			Weighted Average Fair Value
Unvested TSR performance-based restricted stock units, June 30, 2011		232,497		$	8.21
Forfeited		(232,497	)		8.21
Unvested TSR performance-based restricted stock units, June 30, 2012		-		$	-

Segment Data (Tables)

12 Months Ended

Jun. 30, 2012

Segment Data [Abstract]

Segment Data


(in thousands)	2012			2011			2010
External sales:
Industrial	$	1,667,434		$	1,528,672		$	1,166,793
Infrastructure		1,068,812			874,821			717,274
Total external sales	$	2,736,246		$	2,403,493		$	1,884,067


Operating income :
Industrial	$	283,233		$	209,663		$	31,210
Infrastructure		141,640			121,733			79,899
Corporate		(8,464	)		(9,723	)		(17,881	)
Total operating income	$	416,409		$	321,673		$	93,228


Interest expense	$	27,215		$	22,760		$	25,203
Other (income) expense, net		(775	)		2,780			(8,577	)
Income from continuing operations before income taxes	$	389,969		$	296,133		$	76,602


Depreciation and amortization
Industrial	$	70,329		$	68,000		$	70,383
Infrastructure		33,744			25,471			26,046
Total depreciation and amortization	$	104,073		$	93,471		$	96,429


Equity income:
Industrial	$	7		$	229		$	107
Infrastructure		-			-			-
Total equity income	$	7		$	229		$	107


Total assets:
Industrial	$	1,465,300		$	1,531,409		$	1,310,635
Infrastructure		1,306,781			785,718			682,169
Corporate		262,107			437,342			275,019
Total assets	$	3,034,188		$	2,754,469		$	2,267,823


Capital expenditures:
Industrial	$	75,579		$	48,518		$	31,609
Infrastructure		27,457			26,411			11,017
Corporate		-			8,513			14,053
Total capital expenditures	$	103,036		$	83,442		$	56,679


Investments in affiliated companies:
Industrial	$	685		$	829		$	748
Infrastructure		-			-			1,503
Total investments in affiliated companies	$	685		$	829		$	2,251

Geographic information for sales, based on country of origin, and assets

Geographic information for sales, based on country of origin, and assets is as follows:


(in thousands)	2012		2011		2010
External sales:
United States	$	1,170,117	$	1,041,427	$	839,168
Germany		448,645		398,532		313,929
China		214,427		194,945		136,350
India		105,136		103,366		73,908
United Kingdom		99,386		63,466		52,145
Italy		80,520		64,199		50,358
Canada		80,007		59,743		44,538
Other		538,008		477,815		373,671
Total external sales	$	2,736,246	$	2,403,493	$	1,884,067

Total assets:
United States	$	1,177,705	$	1,165,705	$	1,091,510
Germany		485,442		472,665		333,917
China		232,423		179,223		132,072
United Kingdom		104,805		67,549		35,964
Italy		172,513		66,082		38,685
Canada		134,662		40,421		29,025
India		95,618		129,104		105,494
Other		631,020		633,720		501,156
Total assets:	$	3,034,188	$	2,754,469	$	2,267,823

Selected Quarterly Financial Data (Tables)

12 Months Ended

Jun. 30, 2012

Selected Quarterly Financial Data [Abstract]

Selected quarterly financials data


For the quarter ended (in thousands, except per share data)	September 30		December 31		March 31		June 30
2012
Sales	$	658,877	$	641,741	$	696,411	$	739,216
Gross profit		251,060		231,886		246,446		264,857
Net income attributable to Kennametal		71,986		73,697		75,499		86,048
Basic earnings per share attributable to Kennametal ⁽⁵⁾
Net income		0.89		0.92		0.94		1.07
Diluted earnings per share attributable to Kennametal ⁽⁵⁾
Net income		0.88		0.91		0.93		1.06

2011
Sales	$	529,158	$	565,768	$	614,830	$	693,737
Gross profit		188,740		200,025		229,981		265,645
Net income attributable to Kennametal ⁽⁴⁾		34,921		43,469		64,683		86,655
Basic earnings per share attributable to Kennametal ⁽⁵⁾
Net income		0.43		0.53		0.79		1.06
Diluted earnings per share attributable to Kennametal ⁽⁵⁾
Net income		0.42		0.52		0.77		1.04

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
Carrying amount of goodwill
Goodwill	$ 870,192	$ 662,170	$ 640,285
Accumulated impairment losses	(150,842)	(150,842)	(150,842)
Goodwill, Beginning Balance	511,328	489,443
Acquisition	242,553
Translation	(34,531)	21,885
Change in goodwill	208,022	21,885
Goodwill, Ending Balance	719,350	511,328
Industrial [Member]
Carrying amount of goodwill
Goodwill	394,883	411,945	393,974
Accumulated impairment losses	(150,842)	(150,842)	(150,842)
Goodwill, Beginning Balance	261,103	243,132
Translation	(17,062)	17,971
Change in goodwill	(17,062)	17,971
Goodwill, Ending Balance	244,041	261,103
Infrastructure [Member]
Carrying amount of goodwill
Goodwill	475,309	250,225	$ 246,311
Accumulated impairment losses	0
Goodwill, Beginning Balance	250,225	246,311
Acquisition	242,553
Translation	(17,469)	3,914
Change in goodwill	225,084	3,914
Goodwill, Ending Balance	$ 475,309	$ 250,225

- Definition

Carrying amount as of the balance sheet date, which is the cumulative amount paid and (if applicable) the fair value of any noncontrolling interest in the acquiree, adjusted for any amortization recognized prior to the adoption of any changes in generally accepted accounting principles (as applicable) and for any impairment charges, in excess of the fair value of net assets acquired in one or more business combination transactions.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 45
-Subparagraph e
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 43
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 68
-Subparagraph l
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6388280&loc=d3e13770-109266

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6905597&loc=d3e13816-109267

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 72
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 45
-Subparagraph e
-Clause 1
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

The increase (decrease) in the recorded value of goodwill for foreign currency translation adjustments and purchase accounting adjustments needed to revise the carrying amount of goodwill to fair value.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Subparagraph e
-Paragraph 45
-Clause 6
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=6905597&loc=d3e13816-109267

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 72
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Subparagraph e
-Paragraph 45
-Clause 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Subparagraph e
-Paragraph 45
-Clause 7
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Summary of Significant Accounting Policies (Details 1) $ in Thousands	12 Months Ended
	Jun. 30, 2012 USD ($) yr	Jun. 30, 2011 USD ($)
The components of intangible assets
Accumulated amortization	$ (89,886)	$ (78,712)
Indefinite-lived Intangible Assets by Major Class [Line Items]
Gross carrying amount, total	333,373	230,991
Trademarks [Member]
Indefinite-lived Intangible Assets by Major Class [Line Items]
Gross carrying amount, Indefinite	$ 35,817	40,480
Contract-based [Member]
The components of intangible assets
Estimated useful life minimum (in years) \| yr	4
Estimated useful life maximum (in years) \| yr	15
Gross carrying amount, finite	$ 21,450	6,349
Accumulated amortization	$ (6,423)	(5,380)
Technology-based and other [Member]
The components of intangible assets
Estimated useful life minimum (in years) \| yr	4
Estimated useful life maximum (in years) \| yr	17
Gross carrying amount, finite	$ 37,594	39,743
Accumulated amortization	$ (24,384)	(25,442)
Customer-related [Member]
The components of intangible assets
Estimated useful life minimum (in years) \| yr	10
Estimated useful life maximum (in years) \| yr	20
Gross carrying amount, finite	$ 178,500	113,977
Accumulated amortization	$ (44,354)	(38,275)
Unpatented technology [Member]
The components of intangible assets
Estimated useful life minimum (in years) \| yr	15
Estimated useful life maximum (in years) \| yr	30
Gross carrying amount, finite	$ 46,035	19,540
Accumulated amortization	$ (6,943)	(4,740)
Trademarks [Member]
The components of intangible assets
Estimated useful life minimum (in years) \| yr	5
Estimated useful life maximum (in years) \| yr	20
Gross carrying amount, finite	$ 13,977	10,902
Accumulated amortization	$ (7,782)	$ (4,875)

Summary of Significant Accounting Policies (Details Textual) $ in Thousands	12 Months Ended
	Jun. 30, 2012 USD ($) yr shares	Jun. 30, 2011 USD ($) shares	Jun. 30, 2010 USD ($) shares
Summary of Significant Accounting Policies (Additional Textual) [Abstract]
Goodwill	$ 242,600
Other intangible assets	$ 103,800
Summary of Significant Accounting Policies (Textual) [Abstract]
Conditions for investments in entities accounted for an equity basis	Investments in entities of less than 50 percent of the voting stock over which we have significant influence are accounted for on an equity basis.
Conditions for investments in entities accounted for on the cost basis	Investments in entities of less than 50 percent of the voting stock in which we do not have significant influence are accounted for on the cost basis.
Excess and obsolete inventory reserve	$ 55,000	$ 55,300
Goodwill or intangible asset impairments	0	0	$ 0
Intangible assets increased due to foreign currency translation adjustments		8,500
Intangible assets decreased due to foreign currency translation adjustments	11,100
Amortization expense for intangible assets	16,400	$ 11,600	$ 13,100
Estimated amortization expense for year 2013	20,900
Estimated amortization expense for year 2014	19,900
Estimated amortization expense for year 2015	19,100
Estimated amortization expense for year 2016	18,800
Estimated amortization expense for year 2017	$ 16,900
Increase in weighted average shares due to increase due to dilutive effect of unexercised capital stock options, unvested restricted stock awards and unvested restricted stock units \| shares	1,200,000	1,100,000	700,000
Unexercised capital stock options, restricted stock units and restricted stock awards excluded from computation of diluted EPS \| shares	700,000	400,000	2,300,000
The conditions of shipment are considered to have occurred unless written notice of objection is received by Kennametal	within 10 calendar days of the date specified on the invoice.
Termination of warranty	30 days after delivery of the product to the customer and does not apply to products that have been subjected to misuse, abuse, neglect or improper storage, handling or maintenance.
Exercisable period for capital stock options	10 years from the date of grant.
Fair value of shares delivered	$ 400	$ 800	$ 100
Research and development cost	38,300	33,300	28,000
Gains from foreign currency transactions included in other (income) expense, net			$ 3,500
Losses from foreign currency transactions included in other (income) expense, net	$ 2,600	$ 6,600
2010 Plan [Member]
Summary of Significant Accounting Policies (Additional Textual) [Abstract]
Aggregate number of shares available for issuance under stock and incentive plan \| shares	3,500,000
Contract Based Assets [Member]
Summary of Significant Accounting Policies (Additional Textual) [Abstract]
Other intangible assets	$ 15,000
Estimated useful life \| yr	10
Computer hardware and software [Member]
Property Plant And Equipment [Line Items]
Estimated useful lives of Property, plant and equipment, Minimum \| yr	3
Estimated useful lives of Property, plant and equipment, Maximum \| yr	5
Building and improvements [Member]
Property Plant And Equipment [Line Items]
Estimated useful lives of Property, plant and equipment, Minimum \| yr	15
Estimated useful lives of Property, plant and equipment, Maximum \| yr	40
Machinery and Equipment [Member]
Property Plant And Equipment [Line Items]
Estimated useful lives of Property, plant and equipment, Minimum \| yr	4
Estimated useful lives of Property, plant and equipment, Maximum \| yr	15
Furniture and Fixtures [Member]
Property Plant And Equipment [Line Items]
Estimated useful lives of Property, plant and equipment, Minimum \| yr	5
Estimated useful lives of Property, plant and equipment, Maximum \| yr	10
Stellite [Member]
Summary of Significant Accounting Policies (Additional Textual) [Abstract]
Goodwill	$ 242,553
Other intangible assets	103,793
Stellite [Member] \| Customer-related [Member]
Summary of Significant Accounting Policies (Additional Textual) [Abstract]
Other intangible assets	$ 73,800
Estimated useful life \| yr	20
Stellite [Member] \| Trademarks [Member]
Summary of Significant Accounting Policies (Additional Textual) [Abstract]
Other intangible assets	$ 1,700
Estimated useful life \| yr	5
Deloro Stellite [Member] \| Technologies [Member]
Summary of Significant Accounting Policies (Additional Textual) [Abstract]
Other intangible assets	$ 28,300
Estimated useful life minimum (in years) \| yr	15
Estimated useful life maximum (in years) \| yr	17

Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
Cash paid during the period for:
Interest	$ 27,395	$ 26,624	$ 28,626
Income taxes	$ 55,728	60,459	3,788
Supplemental disclosure of non-cash information:
Contribution of capital stock to employees' defined contribution benefit plans		$ 948	$ 6,352

Acquisition (Details) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011
Current assets:
Goodwill	$ 242,600
Other intangible assets	103,800
Current liabilities :
Noncontrolling interests	24,371	$ 20,569
Stellite [Member]
Current assets:
Accounts receivable	44,414
Inventories	42,270
Other current assets	5,094
Total current assets	91,778
Property and equipment	76,146
Goodwill	242,553
Other intangible assets	103,793
Deferred income taxes	22,392
Other	70
Total assets	536,732
Current liabilities :
Short term debt and current maturities of long-term debt	4,685
Accounts payable	43,534
Accrued income taxes	24,688
Other current liabilities	17,487
Total current liabilities	90,394
Long-term debt and capital leases	5,379
Deferred income taxes	48,537
Other long term liabilities	4,649
Total liabilities	148,959
Noncontrolling interests	5,211
Net assets acquired	$ 382,562

Acquisition (Details 1) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Pro forma (unaudited):
Net Sales	$ 3,042,987	$ 2,675,119
Net income attributable to Kennametal	$ 333,808	$ 238,409
Per share data attributable to Kennametal :
Basic earnings per share	$ 4.16	$ 2.91
Diluted earnings per share	$ 4.10	$ 2.87

- Definition

The pro forma basic net income per share for a period as if the business combination or combinations had been completed at the beginning of a period.

+ References + Details

- Definition

The pro forma diluted net income per share for a period as if the business combination or combinations had been completed at the beginning of a period.

+ References + Details

Acquisition (Details Textual) $ in Thousands	12 Months Ended
Acquisition (Details Textual) $ in Thousands	Jun. 30, 2012 USD ($)	Jun. 30, 2011 USD ($)	Jan. 13, 2012 Employee Segment
Acquisitions (Textual) [Abstract]
Goodwill	$ 242,600
Stellite [Member]
Acquisitions (Textual) [Abstract]
Number of employees in Deloro Stellite \| Employee			1,300
Number of primary operating segments \| Segment			7
Purchase price for acquiring Deloro Stellite	382,562
Expenses incurred related to acquisition costs	8,900
Acquisition and integration related expenses	10,100	$ 14,300
Goodwill	242,553
Net sales	90,100
Net loss	$ 7,100

Discontinued Operations (Details Textual) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2010	Jun. 30, 2009
Discontinued Operations (Textual) [Abstract]
Net book value of assets disposed		$ 51.0
Proceeds from divestitures	$ 28.5
Pretax charges related to the divestiture	2.3
Net of tax charges related to the divestiture	$ 1.4

Fair Value Measurements (Details) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives Assets	$ 1,855	$ 896
Total assets at fair value	1,855	896
Derivatives Liabilities	193	3,330
Total liabilities at fair value	193	3,330
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives Assets
Total assets at fair value
Derivatives Liabilities
Total liabilities at fair value
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives Assets	1,855
Total assets at fair value	1,855
Derivatives Liabilities	193
Total liabilities at fair value	193
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives Assets
Total assets at fair value
Derivatives Liabilities
Total liabilities at fair value
Fair Value, Measurements, Recurring [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives Assets		896
Total assets at fair value		896
Derivatives Liabilities		3,330
Total liabilities at fair value		$ 3,330

- Definition

Fair values as of the balance sheet date of all assets resulting from contracts that meet the criteria of being accounted for as derivative instruments, net of the effects of master netting arrangements.

+ References + Details

Derivative Instruments and Hedging Activities (Details) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011
Fair value of derivatives
Total derivatives designated as hedging instruments	$ 364	$ (2,469)
Total derivatives not designated as hedging instruments	1,298	35
Total derivatives	1,662	(2,434)
Range Forward Contracts [Member] \| Designated as Hedging Instrument [Member] \| Other Current Assets [Member]
Fair value of derivatives
Derivative assets designated as hedging instruments	554	87
Range Forward Contracts [Member] \| Designated as Hedging Instrument [Member] \| Other Current Liabilities [Member]
Fair value of derivatives
Derivative liabilities designated as hedging instruments	(193)	(159)
Range Forward Contracts [Member] \| Designated as Hedging Instrument [Member] \| Other Assets [Member]
Fair value of derivatives
Derivative assets designated as hedging instruments	3
Forward Starting Interest Rate Swap Contracts [Member] \| Designated as Hedging Instrument [Member] \| Other Assets [Member]
Fair value of derivatives
Derivative assets designated as hedging instruments		772
Forward Starting Interest Rate Swap Contracts [Member] \| Designated as Hedging Instrument [Member] \| Other liabilities [Member]
Fair value of derivatives
Derivative liabilities designated as hedging instruments		(3,169)
Currency Forward Contracts [Member] \| Not Designated as Hedging Instrument [Member] \| Other Current Assets [Member]
Fair value of derivatives
Derivative assets designated as hedging instruments	$ 1,298	37
Currency Forward Contracts [Member] \| Not Designated as Hedging Instrument [Member] \| Other Current Liabilities [Member]
Fair value of derivatives
Derivative liabilities designated as hedging instruments		$ (2)

Derivative Instruments and Hedging Activities (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
Currency Forward Contracts [Member] \| Other Expense Income Net [Member] \| Not Designated as Hedging Instrument [Member]
(Gains) losses related to derivatives not designated as hedging instruments
Other (income) expense, net - currency forward contracts	$ (1,149)	$ (1,138)	$ 1,077
Range Forward Contracts [Member] \| Cash flow hedging [Member]
(Gains) losses related to cash flow hedges
(Losses) gains recognized in other comprehensive (loss) income, net	(11,793)	(26)	(962)
Losses/(gains) reclassified from accumulated other comprehensive (loss) income into other (income) expense, net	$ 272	$ 645	$ (1,107)

Derivative Instruments and Hedging Activities (Details Textual) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Feb. 28, 2009	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010	Feb. 14, 2012
Additional Derivative Instruments and Hedging Activities (Textual) [Abstract]
Recognize gain on outstanding derivatives in the next 12 months		$ 200
Derivative Instruments and Hedging Activities (Textual) [Abstract]
Terminated Interest Rate Swap Contracts	$ 200,000
Liability on forward starting interest rate swap contracts recorded as a decrease to other comprehensive (loss) income, net of tax			$ 2,400
Losses recognized in earnings due to ineffectiveness and excluded from effectiveness testing		0	0	$ 0
Derivative, Gain (Loss) on Derivative, Net [Abstract]
Payments for derivative hedging instrument upon settlement		22,406
Forward Starting Interest Rate Swap Contracts [Member]
Additional Derivative Instruments and Hedging Activities (Textual) [Abstract]
Notional amount of the contracts translated into U.S. dollars					$ 150,000
Contracts translated to US dollars [Member]
Additional Derivative Instruments and Hedging Activities (Textual) [Abstract]
Notional amount of the contracts translated into U.S. dollars		$ 69,900	$ 37,600

Derivative Instruments and Hedging Activities (Details Textual 1) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
Interest Rate Swap Contracts [Member] \| Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Reduction in interest expense	$ 5.9	$ 5.9	$ 5.6
Forward Starting Interest Rate Swap Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Interest expense	$ 0.7

- Definition

The amount of loss recognized in income during the period on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges, on derivative instruments designated and qualifying as hedging instruments in cash flow hedges, and on derivative instruments not designated as hedging instruments.

+ References + Details

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011
Inventories
Finished goods	$ 319,217	$ 303,716
Work in process and powder blends	252,035	202,940
Raw materials	135,454	109,683
Inventories at current cost	706,706	616,339
Less: LIFO valuation	(120,850)	(96,366)
Total inventories	$ 585,856	$ 519,973
Inventories (Textual) [Abstract]
Percentage of inventories valued by using LIFO method	49.00%	50.00%

Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011
Other Current Liabilities
Accrued employee benefits	$ 33,783	$ 55,833
Payroll, state and local taxes	14,290	15,997
Accrued restructuring expense (Note 15)	1,329	12,711
Other	98,161	82,665
Total other current liabilities	$ 147,563	$ 167,206

- Definition

Aggregate carrying amount, as of the balance sheet date, of obligations incurred and payable, pertaining to costs that are statutory in nature, are incurred on contractual obligations, or accumulate over time and for which invoices have not yet been received or will not be rendered and of liabilities not separately disclosed in the balance sheet. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).

+ References + Details

- Definition

Carrying amount as of the balance sheet date of known and estimated obligations associated with exit from or disposal of business activities or restructurings pursuant to a duly authorized plan, which are expected to be paid in the next twelve months or in the normal operating cycle if longer. Costs of such activities include those for one-time termination benefits, termination of an operating lease or other contract, consolidating or closing facilities, relocating employees, and costs associated with an ongoing benefit arrangement, but excludes costs associated with the retirement of a long-lived asset.

+ References + Details

Long-Term Debt and Capital Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011
Credit Agreement:
Capital leases with terms expiring through 2018 at 2.3% to 5.7% in 2012 and 2.3% to 2.8% in 2011	$ 6,195	$ 3,113
Other	6,139	156
Total debt and capital leases	524,180	309,223
Less current maturities:
Long-term debt	(27,200)	(306,032)
Other	(5,814)
Capital leases	(558)	(1,272)
Total current maturities	(33,572)	(307,304)
Long-term debt and capital leases, less current maturities	490,608	1,919
U.S. Dollar-denominated borrowings, 1.24% in 2012, due 2016 [Member]
Credit Agreement:
Long -term debt	212,200
3.875% Senior Unsecured Notes due 2022 [Member]
Credit Agreement:
Long -term debt	$ 299,646
7.2% Senior Unsecured Notes due 2012 [Member]
Credit Agreement:
Long -term debt		$ 305,954

Long-Term Debt and Capital Leases (Details 1) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011
Future minimum lease payments under capital leases
2013	$ 803
2014	2,574
2015	1,658
2016	1,079
2017	601
After 2017	199
Total future minimum lease payments	6,914
Less amount representing interest	(719)
Amount recognized as capital lease obligations	$ 6,195	$ 3,113

Long -Term Debt and Capital Leases (Details Textual) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Feb. 29, 2012	Jun. 30, 2012	Jun. 30, 2011	Feb. 14, 2012	Oct. 21, 2011
Long-Term Debt and Capital Leases (Additional Textual) [Abstract]
Senior Unsecured Notes, Issued	$ 300,000
Fixed rate at fair market value			$ 300,000
Minimum Interest Rate Stated Percentage under Capital leases with terms		2.30%	2.30%
Maximum Interest Rate Stated Percentage under Capital leases with terms		5.70%	2.80%
Future principal maturities of Long term Debt for 2013		$ 33,300
Future principal maturities of Long term Debt for 2016		185,000
Future principal maturities of Long term Debt beyond 2017		300,000
Collateralized Debt Obligations comprised of industrial revenue bond obligations		100	$ 200
Capitalized Lease Obligation		$ 6,195	3,113
U.S. Dollar-denominated borrowings, 1.24% in 2012, due 2016 [Member]
Long-Term Debt and Capital Leases (Textual) [Abstract]
Interest percentage		1.24%
3.875% Senior Unsecured Notes due 2022 [Member]
Long-Term Debt and Capital Leases (Textual) [Abstract]
Debt Instrument Net of Discount		$ 400
Interest percentage				3.875%
7.2% Senior Unsecured Notes due 2012 [Member]
Long-Term Debt and Capital Leases (Textual) [Abstract]
Debt Instrument Net of Discount			100
Interest rate swap adjustment			$ 6,100
Interest percentage			7.20%
Term of Long term debt			10 years
2011 Credit Agreement [Member]
Long-Term Debt and Capital Leases (Textual) [Abstract]
Maximum borrowing capacity under 2011 Credit Agreement					$ 600,000
Period for multi-currency, revolving credit facility		5 years
2010 and 2011 Credit Agreement [Member]
Long-Term Debt and Capital Leases (Textual) [Abstract]
Borrowing outstanding under 2011 and 2010 Credit Agreement		$ 212,200	$ 0

Notes Payable and Lines of Credit (Details) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011
Notes Payable and Lines of Credit (Additional Textual) [Abstract]
Notes payable to banks	$ 41,565	$ 3,659
Weighted average Interest rate for notes payable and line of credit	2.50%	4.40%
Notes Payable to Banks [Member]
Notes Payable and Lines of Credit (Textual) [Abstract]
Total unused amount of credit lines, translated into U.S. dollars exchange rates under short-term borrowings	$ 85,500
Maximum borrowing capacity under 2011 Credit Agreement	$ 127,100

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
Income from continuing operations before income taxes:
United States	$ 95,410	$ 69,042	$ 3,925
International	294,559	227,091	72,677
Income from continuing operations before income taxes	389,969	296,133	76,602
Current income taxes:
Federal	23,313	26,234	1,915
State	2,275	1,063	1,376
International	24,946	44,440	23,456
Total current income taxes	50,534	71,737	26,747
Deferred income taxes	28,602	(7,881)	230
Provision for income taxes	$ 79,136	$ 63,856	$ 26,977
Effective tax rate	20.30%	21.60%	35.20%

Income Taxes (Details 1) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details 1) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
Reconciliation of income taxes computed using the statutory U.S. income tax rate and the provision for income taxes
Income taxes at U.S. statutory rate	$ 136,489	$ 103,647	$ 26,811
State income taxes, net of federal tax benefits	4,110	1,956	2,290
U.S. income taxes provided on international income	8,164	21,556	1,107
Combined tax effects of international income	(50,574)	(35,423)	(4,460)
Change in valuation allowance and other uncertain tax positions	(16,243)	(20,215)	2,024
Impact of domestic production activities deduction	(3,810)	(6,413)	(456)
Research and development credit	(1,515)	(2,685)	(460)
Other	2,515	1,433	121
Provision for income taxes	$ 79,136	$ 63,856	$ 26,977

Income Taxes (Details 2) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011
Deferred tax assets:
Net operating loss carryforwards	$ 68,782	$ 65,768
Inventory valuation and reserves	26,363	29,646
Pension benefits	38,552	713
Other postretirement benefits	9,958	8,312
Accrued employee benefits	30,179	30,975
Other accrued liabilities	8,857	7,939
Hedging activities	13,338	13,528
Tax credits and other carryforwards	6,354	5,431
Other		2,558
Total	202,383	164,870
Valuation allowance	(19,502)	(25,662)
Total deferred tax assets	182,881	139,208
Deferred tax liabilities:
Tax depreciation in excess of book	109,948	98,957
Intangible assets	68,806	35,965
Other	448
Total deferred tax liabilities	179,202	134,922
Total net deferred tax assets	$ 3,679	$ 4,286

Income Taxes (Details 3) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details 3) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011
Reconciliation of unrecognized tax benefits excluding interest rollforward
Balance at beginning of year	$ 18,289	$ 16,391
Increases for tax positions of prior years	946
Decreases for tax positions of prior years		(85)
Increases for tax positions related to the current year	116	285
Decreases for tax positions related to the current year	(1,635)
Decreases related to settlement with taxing authority	(7,280)
Decreases related to lapse of statute of limitations	(805)	(794)
Foreign currency translation	(2,333)	2,492
Balance at end of year	$ 7,298	$ 18,289

Income Taxes (Details Textual) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details Textual) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
Income Tax (Textual) [Abstract]
Valuation allowance adjustment	$ 6,900	$ 20,500
Adjustments related to the effective settlement of uncertain tax positions	9,000
Domestic income taxes associated with dividends of international subsidiary current year income		17,900
Unrealized tax benefits associated with the net operating loss carryforwards in federal, state and foreign jurisdictions	68,800
Unrealized tax benefits expiring through June 2017	8,000
Unrealized tax benefits expiring through 2022	6,900
Unrealized tax benefits expiring through 2027	7,000
Unrealized tax benefits expiring through 2032	12,800
Unrealized tax benefits that will not expire	34,100
Valuation allowance	19,502	25,662
Allocated to income tax expense	16,100
Allocated to either income tax expense or goodwill	3,400
Valuation allowance related to deferred tax assets decreased	6,200
Reversal of valuation allowance due to change in judgment about the reliability of certain deferred tax assets	6,900
Unremitted earnings of our non-U.S. subsidiaries and affiliates	1,428,400
Effective tax	6,400	18,000	$ 15,800
Interest expenses		900	$ 400
Interest accrued	1,900	$ 3,200
Reasonably possible amount of unrecognized tax benefits within the next twelve months as a result of the progression of various state and foreign audits in process, Lower Range	4,000
Reasonably possible amount of unrecognized tax benefits within the next twelve months as a result of the progression of various state and foreign audits in process, Upper Range	5,000
Reduction in interest expense	900
Penalty through goodwill	300
Penalty accrued	$ 300

Pension and Other Postretirement and Postemployment Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
Change in plan assets:
Fair value of plan assets, beginning of year	$ 725,466
Fair value of plan assets, end of year	783,843	$ 725,466
Pension plans contribution [Member]
Change in benefit obligation
Benefit obligation, beginning of year	786,572	759,075
Service cost	6,982	7,650	$ 7,949
Interest cost	42,107	40,984	42,437
Participant contributions	34	39
Actuarial losses (gains)	153,680	(4,400)
Benefits and expenses paid	(39,051)	(37,082)
Foreign currency translation adjustments	(16,437)	22,074
Effect of acquired business/plan combinations	28,296
Plan amendments		675	3,600
Plan curtailments/ settlements	(3,877)	(2,443)
Benefit obligation, end of year	958,306	786,572	759,075
Change in plan assets:
Fair value of plan assets, beginning of year	725,466	656,516
Actual return on plan assets	68,082	93,570
Company contributions	9,683	8,536
Participant contributions	34	39
Benefits and expenses paid	39,051	37,082
Plan curtailments/ settlements	(3,877)	(2,443)
Effect of acquired business/plan combinations	26,438
Foreign currency translation adjustments	(2,932)	6,330
Fair value of plan assets, end of year	783,843	725,466	$ 656,516
Funded status of plan	(174,463)	(61,106)
Amounts recognized in the balance sheet consist of:
Long-term prepaid benefit	2,803	63,579
Short-term accrued benefit obligation	(9,285)	(7,619)
Accrued pension benefits	(167,981)	(117,066)
Net amount recognized	$ (174,463)	$ (61,106)

Pension and Other Postretirement and Postemployment Benefits (Details 1) - Pension plans contribution [Member] - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011
Pre-tax amounts recognized in accumulated other comprehensive income
Unrecognized net actuarial losses (gains)	$ 191,340	$ 66,734
Unrecognized net prior service credits	(1,379)	(1,540)
Unrecognized transition obligations	1,193	1,202
Total	$ 191,154	$ 66,396

- Definition

Amount related to the pretax cost of benefit changes attributable to plan participants' prior service pursuant to a plan amendment or a plan initiation, which has not yet been recognized as components of net periodic benefit cost.

+ References

+ Details

- Definition

Of the original amount of transition assets as of the date FAS 87 or 106 was initially applied, (a) the fair value of plan assets plus any recognized accrued pension or other postretirement benefit cost or less any recognized prepaid pension or other postretirement benefit cost in excess of (b) the benefit obligation, the portion of which has yet to be recognized as components of net periodic benefit cost. Of the original amount of transition obligations as of the date FAS 87 or 106 was initially applied, (a) the benefit obligation in excess of (b) the fair value of plan assets plus any recognized accrued pension or other postretirement benefit cost or less any recognized prepaid pension or other postretirement benefit cost, the portion of which has yet to be recognized as components of net periodic benefit cost. This amount is pretax.

+ References

+ Details

Pension and Other Postretirement and Postemployment Benefits (Details 2) - Pension plans contribution [Member] - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011
Accumulated benefit obligations exceeding the fair value of plan assets
Projected benefit obligation	$ 855,697	$ 124,684
Accumulated benefit obligation	835,870	$ 123,016
Fair value of plan assets	$ 671,588

Pension and Other Postretirement and Postemployment Benefits (Details 3) - Pension plans contribution [Member] - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
Net periodic pension cost
Service cost	$ 6,982	$ 7,650	$ 7,949
Interest cost	42,107	40,984	42,437
Expected return on plan assets	(51,376)	(48,203)	(46,226)
Amortization of transition obligation	65	52	56
Amortization of prior service credit/cost	(186)	(281)	(280)
Special termination benefits			3,577
Curtailment Loss			300
Settlement Loss	1,253	18
Recognition of actuarial gains/losses	8,259	12,277	4,447
Net periodic pension cost	$ 7,104	$ 12,497	$ 12,260

Pension and Other Postretirement and Postemployment Benefits (Details 4) - Other postretirement benefit plans [Member] - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
Change in benefit obligation
Benefit obligation, beginning of year	$ 19,771	$ 19,910
Service cost	75	77	$ 99
Interest cost	1,029	1,037	1,266
Actuarial loss	7,345	2,474
Plan amendments	(238)	(524)
Benefits paid	(3,408)	(3,203)
Benefit obligation, end of year	24,574	19,771	$ 19,910
Funded status of plan	(24,574)	(19,771)
Amounts recognized in the balance sheet consist of:
Short-term accrued benefit obligation	(1,808)	(1,918)
Accrued pension benefits	(22,766)	(17,853)
Net amount recognized	$ (24,574)	$ (19,771)

Pension and Other Postretirement and Postemployment Benefits (Details 5) - Other postretirement benefit plans [Member] - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract]
Unrecognized net actuarial losses (gains)	$ 6,538	$ (864)
Unrecognized net prior service cost	(674)	(524)
Total	5,864	(1,388)
Net periodic other postretirement benefit costs
Service cost	75	77	$ 99
Interest cost	1,029	1,037	1,266
Amortization of prior service credit/cost	(89)		8
Recognition of actuarial gains/losses	(56)	(190)	(368)
Net periodic pension cost	$ 959	$ 924	$ 1,005

Pension and Other Postretirement and Postemployment Benefits (Details 6)	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
U.S. Plans [Member]
Discount Rate:
Discount Rate	4.00%	5.50%	5.50%
International Plans [Member]
Rates of future salary increases:
Rates of future salary increases			3.50%
Minimum [Member] \| U.S. Plans [Member]
Rates of future salary increases:
Rates of future salary increases	3.00%	3.00%	3.00%
Minimum [Member] \| International Plans [Member]
Discount Rate:
Discount Rate	4.00%	5.50%	5.00%
Rates of future salary increases:
Rates of future salary increases	2.50%	2.00%
Maximum [Member] \| U.S. Plans [Member]
Rates of future salary increases:
Rates of future salary increases	5.00%	5.00%	5.00%
Maximum [Member] \| International Plans [Member]
Discount Rate:
Discount Rate	5.00%	5.80%	5.50%
Rates of future salary increases:
Rates of future salary increases	4.00%	3.50%

Pension and Other Postretirement and Postemployment Benefits (Details 7)	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
U.S. Plans [Member]
Discount Rate:
Discount Rate	5.50%	5.50%	6.50%
Rate of return on plans assets:
Rate of return on plans assets	8.00%	8.00%	8.00%
International Plans [Member]
Rates of future salary increases:
Rates of future salary increases		3.50%	3.50%
Rate of return on plans assets:
Rate of return on plans assets	5.80%	6.40%	6.70%
Minimum [Member] \| U.S. Plans [Member]
Rates of future salary increases:
Rates of future salary increases	3.00%	3.00%	3.00%
Minimum [Member] \| International Plans [Member]
Discount Rate:
Discount Rate	5.50%	5.00%	5.80%
Rates of future salary increases:
Rates of future salary increases	2.00%
Maximum [Member] \| U.S. Plans [Member]
Rates of future salary increases:
Rates of future salary increases	5.00%	5.00%	5.00%
Maximum [Member] \| International Plans [Member]
Discount Rate:
Discount Rate	5.80%	5.50%	7.00%
Rates of future salary increases:
Rates of future salary increases	3.50%

Pension and Other Postretirement and Postemployment Benefits (Details 8) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
Annual assumed rate of increase in per capita cost of covered benefits for postretirement benefit plans
Health care costs trend rate assumed for next year	8.10%	8.30%	8.60%
Rate to which the cost trend rate gradually declines	4.50%	4.50%	4.50%
Year that the rate reaches the rate at which it is assumed to remain	2029	2029	2029
Calculated effect of change on assumption used to calculate cost components and obligations of healthcare plans
Effect on total service and interest cost components, Increase	$ 58
Effect on total service and interest cost components, Decrease	(51)
Effect on other postretirement obligation, Increase	912
Effect on other postretirement obligation, Decrease	$ (800)
Asset allocations and target allocations by asset class
Equity	30.00%	35.00%
Fixed Income	65.00%	60.00%
Other	5.00%	5.00%
Equity, target percentage	30.00%
Fixed Income, target percentage	70.00%
Other, target percentage	0.00%

Pension and Other Postretirement and Postemployment Benefits (Details 9) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011
Benefit plan assets classified under appropriate level of fair value hierarchy
Defined Benefit Plan, Fair Value of Plan Assets	$ 783,843	$ 725,466
Corporate fixed income securities [Member]
Benefit plan assets classified under appropriate level of fair value hierarchy
Defined Benefit Plan, Fair Value of Plan Assets	391,868	333,955
Value funds [Member]
Benefit plan assets classified under appropriate level of fair value hierarchy
Defined Benefit Plan, Fair Value of Plan Assets	96,216	90,679
Growth funds [Member]
Benefit plan assets classified under appropriate level of fair value hierarchy
Defined Benefit Plan, Fair Value of Plan Assets	52,011	54,392
Balanced funds [Member]
Benefit plan assets classified under appropriate level of fair value hierarchy
Defined Benefit Plan, Fair Value of Plan Assets	14,039	15,798
Common Stock [Member]
Benefit plan assets classified under appropriate level of fair value hierarchy
Defined Benefit Plan, Fair Value of Plan Assets	76,685	93,403
U.S. Government securities [Member]
Benefit plan assets classified under appropriate level of fair value hierarchy
Defined Benefit Plan, Fair Value of Plan Assets	50,273	30,236
Foreign government securities [Member]
Benefit plan assets classified under appropriate level of fair value hierarchy
Defined Benefit Plan, Fair Value of Plan Assets	25,969	27,465
Other fixed income securities [Member]
Benefit plan assets classified under appropriate level of fair value hierarchy
Defined Benefit Plan, Fair Value of Plan Assets	36,165	41,043
Other [Member]
Benefit plan assets classified under appropriate level of fair value hierarchy
Defined Benefit Plan, Fair Value of Plan Assets	40,617	38,495
Level 1 [Member]
Benefit plan assets classified under appropriate level of fair value hierarchy
Defined Benefit Plan, Fair Value of Plan Assets	78,805	95,126
Level 1 [Member] \| Common Stock [Member]
Benefit plan assets classified under appropriate level of fair value hierarchy
Defined Benefit Plan, Fair Value of Plan Assets	76,685	93,403
Level 1 [Member] \| Other [Member]
Benefit plan assets classified under appropriate level of fair value hierarchy
Defined Benefit Plan, Fair Value of Plan Assets	2,120	1,723
Level 2 [Member]
Benefit plan assets classified under appropriate level of fair value hierarchy
Defined Benefit Plan, Fair Value of Plan Assets	705,038	630,340
Level 2 [Member] \| Corporate fixed income securities [Member]
Benefit plan assets classified under appropriate level of fair value hierarchy
Defined Benefit Plan, Fair Value of Plan Assets	391,868	333,955
Level 2 [Member] \| Value funds [Member]
Benefit plan assets classified under appropriate level of fair value hierarchy
Defined Benefit Plan, Fair Value of Plan Assets	96,216	90,679
Level 2 [Member] \| Growth funds [Member]
Benefit plan assets classified under appropriate level of fair value hierarchy
Defined Benefit Plan, Fair Value of Plan Assets	52,011	54,392
Level 2 [Member] \| Balanced funds [Member]
Benefit plan assets classified under appropriate level of fair value hierarchy
Defined Benefit Plan, Fair Value of Plan Assets	14,039	15,798
Level 2 [Member] \| U.S. Government securities [Member]
Benefit plan assets classified under appropriate level of fair value hierarchy
Defined Benefit Plan, Fair Value of Plan Assets	50,273	30,236
Level 2 [Member] \| Foreign government securities [Member]
Benefit plan assets classified under appropriate level of fair value hierarchy
Defined Benefit Plan, Fair Value of Plan Assets	25,969	27,465
Level 2 [Member] \| Other fixed income securities [Member]
Benefit plan assets classified under appropriate level of fair value hierarchy
Defined Benefit Plan, Fair Value of Plan Assets	36,165	41,043
Level 2 [Member] \| Other [Member]
Benefit plan assets classified under appropriate level of fair value hierarchy
Defined Benefit Plan, Fair Value of Plan Assets	38,497	36,772
Level 3 [Member]
Benefit plan assets classified under appropriate level of fair value hierarchy
Defined Benefit Plan, Fair Value of Plan Assets
Level 3 [Member] \| Corporate fixed income securities [Member]
Benefit plan assets classified under appropriate level of fair value hierarchy
Defined Benefit Plan, Fair Value of Plan Assets
Level 3 [Member] \| Value funds [Member]
Benefit plan assets classified under appropriate level of fair value hierarchy
Defined Benefit Plan, Fair Value of Plan Assets
Level 3 [Member] \| Growth funds [Member]
Benefit plan assets classified under appropriate level of fair value hierarchy
Defined Benefit Plan, Fair Value of Plan Assets
Level 3 [Member] \| Balanced funds [Member]
Benefit plan assets classified under appropriate level of fair value hierarchy
Defined Benefit Plan, Fair Value of Plan Assets
Level 3 [Member] \| Common Stock [Member]
Benefit plan assets classified under appropriate level of fair value hierarchy
Defined Benefit Plan, Fair Value of Plan Assets
Level 3 [Member] \| U.S. Government securities [Member]
Benefit plan assets classified under appropriate level of fair value hierarchy
Defined Benefit Plan, Fair Value of Plan Assets
Level 3 [Member] \| Foreign government securities [Member]
Benefit plan assets classified under appropriate level of fair value hierarchy
Defined Benefit Plan, Fair Value of Plan Assets
Level 3 [Member] \| Other fixed income securities [Member]
Benefit plan assets classified under appropriate level of fair value hierarchy
Defined Benefit Plan, Fair Value of Plan Assets
Level 3 [Member] \| Other [Member]
Benefit plan assets classified under appropriate level of fair value hierarchy
Defined Benefit Plan, Fair Value of Plan Assets

Pension and Other Postretirement and Postemployment Benefits (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
Pension and Other Postretirement and Postemployment Benefits (Textual) [Abstract]
Postretirement health care benefits are available to	employees and their spouses retiring on or after age 55 with 10 or more years of service
Pension plans contribution [Member]
Pension and Other Postretirement and Postemployment Benefits (Textual) [Abstract]
Special termination benefits due to an amendment of the plan		$ 675	$ 3,600
Accumulated benefit obligation for all defined benefit pension plans	$ 938,500	772,600
Increase in net periodic pension costs	5,400
Net Periodic Pension Cost	7,104	12,497	12,260
Project benefit payments in 2013	40,900
Project benefit payments in 2014	41,700
Project benefit payments in 2015	43,700
Project benefit payments in 2016	45,700
Project benefit payments in 2017	48,500
Project benefit payments in 2018 trough 2022	277,500
Amounts of accumulated other comprehensive loss expected to be recognized in net periodic pension cost during 2013 related to net actuarial losses	14,900
Amounts of accumulated other comprehensive loss expected to be recognized in net periodic pension cost during 2013 related to transition obligations	100
Amounts of accumulated other comprehensive income expected to be recognized in net periodic pension cost during 2013 related to Prior service cost	200
Expected contribution by employer in 2013	10,400
Other postretirement benefit plans [Member]
Pension and Other Postretirement and Postemployment Benefits (Textual) [Abstract]
Special termination benefits due to an amendment of the plan	238	524
Net Periodic Pension Cost	959	$ 924	$ 1,005
Project benefit payments in 2013	2,300
Project benefit payments in 2014	2,200
Project benefit payments in 2015	2,100
Project benefit payments in 2016	2,100
Project benefit payments in 2017	2,000
Project benefit payments in 2018 trough 2022	8,400
Amounts of accumulated other comprehensive loss expected to be recognized in net periodic pension cost during 2013 related to net actuarial losses	400
Amounts of accumulated other comprehensive income expected to be recognized in net periodic pension cost during 2013 related to Prior service cost	100
Expected contribution by employer in 2013	$ 2,300

Comprehensive Income (Loss) and Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
Comprehensive income (loss)
Net income	$ 310,833	$ 232,277	$ 48,202
Unrealized loss on derivatives designated and qualified as cash flow hedges, net of income tax benefit of $7.3 million, $0.4 million and $0.6 million, respectively	(11,623)	(679)	(936)
Reclassification of unrealized loss (gain) on expired derivatives designated and qualified as cash flow hedges, net of income tax expense (benefit) expense of $(0.2) million, $(0.4) million and $0.9 million, respectively	272	642	(1,482)
Unrecognized net pension and other postretirement benefit (loss) gain, net of income tax (benefit) expense of ($50.6) million, $11.9 million and ($14.1) million, respectively	(90,686)	28,087	(17,397)
Reclassification of net pension and other postretirement benefit loss, net of income tax benefit of $3.0 million, $3.9 million and $0.9 million, respectively	5,964	7,131	2,975
Foreign currency translation adjustments, net of tax	(140,797)	122,358	(68,837)
Total comprehensive income (loss)	73,963	389,816	(37,475)
Comprehensive (loss) income attributable to noncontrolling interests	(76)	4,779	606
Comprehensive income (loss) attributable to Kennametal Shareowners	$ 74,039	$ 385,037	$ (38,081)

Comprehensive Income (Loss) and Accumulated Other Comprehensive (Loss) Income (Details 1) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011
Components of accumulated other comprehensive (loss) income
Unrealized loss on derivatives designated and qualified as cash flow hedges, Pre-tax	$ (21,487)	$ (3,227)
Unrealized loss on derivatives designated and qualified as cash flow hedges, Tax	8,240	1,331
Unrealized loss on derivatives designated and qualified as cash flow hedges, After-tax	(13,247)	(1,896)
Unrecognized net actuarial losses, Pre-tax	(203,239)	(71,262)
Unrecognized net actuarial losses, Tax	70,206	23,003
Unrecognized net actuarial losses, After-tax	(133,033)	(48,259)
Unrecognized net prior service credit, Pre-tax	2,053	2,252
Unrecognized net prior service credit, Tax	(771)	(963)
Unrecognized net prior service credit, After-tax	1,282	1,289
Unrecognized transition obligation, Pre-tax	(1,193)	(1,203)
Unrecognized transition obligation, Tax	(47)	(95)
Unrecognized transition obligation, After-tax	(1,240)	(1,298)
Foreign currency translation adjustments, Pre-tax	(59,707)	161,451
Foreign currency translation adjustments, Tax	55,283	(28,758)
Foreign currency translation adjustments, After-tax	(4,424)	132,693
Total accumulated other comprehensive income, Pre-tax	(283,573)	88,011
Total accumulated other comprehensive income, Tax	132,911	(5,482)
Total Accumulated other comprehensive income After tax	$ (150,662)	$ 82,529

Comprehensive Income (Loss) and Accumulated Other Comprehensive (Loss) Income (Details Textual) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
Comprehensive (Loss) Income and Accumulated Other Comprehensive (Loss) Income (Textual) [Abstract]
Unrealized loss on derivatives designated and qualified as cash flow hedges, net tax effect	$ 7.3	$ 0.4	$ 0.6
Reclassification of unrealized (gain) loss on expired derivatives designated and qualified as cash flow hedges, net tax effect	(0.2)	(0.4)	0.9
Unrecognized net pension and other postretirement benefit gains (losses), net tax effect	(50.6)	11.9	(14.1)
Reclassification of net pension and other postretirement benefit losses, net tax effect	3.0	3.9	0.9
Foreign currency translation adjustments, net tax effect (benefit) expense	$ (84.0)	$ 21.4	$ (41.5)

- Definition

For each annual statement of income presented, the tax effect of the net gain (loss) recognized in other comprehensive income that is a reclassification adjustment of other comprehensive income as a result of being recognized as a component of net periodic benefit cost for the period.

+ References + Details

Restructuring and Asset Impairment Charges (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Other current liabilities amount attributable to each segment
Beginning Balance	$ 12,711	$ 27,254
Expense		13,671
Asset Write-down		(2,914)
Cash Expenditures	(10,838)	(28,018)
Translation	(544)	2,718
Ending Balance	1,329	12,711
Industrial [Member]
Other current liabilities amount attributable to each segment
Beginning Balance	9,940	19,238
Expense		8,712
Asset Write-down		(1,857)
Cash Expenditures	(8,581)	(17,885)
Translation	(381)	1,732
Ending Balance	978	9,940
Industrial [Member] \| Severance [Member]
Other current liabilities amount attributable to each segment
Beginning Balance	7,811	18,327
Expense		4,363
Cash Expenditures	(6,983)	(16,510)
Translation	(208)	1,631
Ending Balance	620	7,811
Industrial [Member] \| Facilities [Member]
Other current liabilities amount attributable to each segment
Beginning Balance	525	508
Expense		2,318
Asset Write-down		(1,857)
Cash Expenditures	(500)	(444)
Translation	(25)
Ending Balance		525
Industrial [Member] \| Other [Member]
Other current liabilities amount attributable to each segment
Beginning Balance	1,604	403
Expense		2,031
Cash Expenditures	(1,098)	(931)
Translation	(148)	101
Ending Balance	358	1,604
Infrastructure [Member]
Other current liabilities amount attributable to each segment
Beginning Balance	2,771	8,016
Expense		4,959
Asset Write-down		(1,057)
Cash Expenditures	(2,257)	(10,133)
Translation	(163)	986
Ending Balance	351	2,771
Infrastructure [Member] \| Severance [Member]
Other current liabilities amount attributable to each segment
Beginning Balance	1,650	7,637
Expense		2,484
Cash Expenditures	(1,561)	(9,399)
Translation	(89)	928
Ending Balance		1,650
Infrastructure [Member] \| Facilities [Member]
Other current liabilities amount attributable to each segment
Beginning Balance	269	211
Expense		1,319
Asset Write-down		(1,057)
Cash Expenditures	(226)	(204)
Translation	(10)
Ending Balance	33	269
Infrastructure [Member] \| Other [Member]
Other current liabilities amount attributable to each segment
Beginning Balance	852	168
Expense		1,156
Cash Expenditures	(470)	(530)
Translation	(64)	58
Ending Balance	$ 318	$ 852

Restructuring and Asset Impairment Charges (Details Textual) - USD ($) $ in Millions	3 Months Ended				12 Months Ended
	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Restructuring Costs and Asset Impairment Charges (Textual) [Abstract]
Restructuring and related charges since inception					$ 150.0
Restructuring Costs and Asset Impairment Charges (Additional Textual) [Abstract]
Restructuring and related charges					21.5	$ 48.9
Restructuring charges	$ 4.9	$ 1.0	$ 3.4	$ 3.3	13.7	44.3
Restructuring charges related to inventory disposals					1.1	0.4
Restructuring related charges recorded in cost of goods sold					4.4	3.5
Restructuring related charges recorded in operating expenses					3.4	$ 1.1
Industrial [Member]
Restructuring Costs and Asset Impairment Charges (Textual) [Abstract]
Restructuring and related charges since inception					104.0
Infrastructure [Member]
Restructuring Costs and Asset Impairment Charges (Textual) [Abstract]
Restructuring and related charges since inception					44.0
Corporate [Member]
Restructuring Costs and Asset Impairment Charges (Textual) [Abstract]
Restructuring and related charges since inception					$ 2.0

Financial Instruments (Details Textual) - USD ($) $ in Millions	Jun. 30, 2012	Feb. 14, 2012	Jun. 30, 2011
Financial Instruments (Additional Textual) [Abstract]
Fair value of fixed rate long-term debt	$ 306.8		$ 315.8
Concentrations of credit risk
Contracts translated to US dollars [Member]
Financial Instruments (Textual) [Abstract]
Notional amount of the contracts translated into U.S. dollars	69.9		$ 37.6
Estimated Amount of payable on settlement of contracts	$ 0.4
Forward Starting Interest Rate Swap Contracts [Member]
Financial Instruments (Textual) [Abstract]
Notional amount of the contracts translated into U.S. dollars		$ 150.0

Stock-Based Compensation (Details) - Stock Option [Member] - yr	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
Assumptions used in valuation of stock options
Risk-free interest rate	1.10%	1.40%	2.30%
Expected life (years)	4.5	4.5	4.5
Expected volatility	47.60%	47.00%	44.00%
Expected dividend yield	1.50%	2.00%	1.80%

Stock-Based Compensation (Details 1) $ / shares in Units, $ in Thousands	12 Months Ended
	Jun. 30, 2012 USD ($) yr $ / shares shares
Changes in stock options
Options outstanding, June 30, 2011 \| shares	3,388,003
Options, Granted \| shares	358,318
Options, Exercised \| shares	(786,502)
Options, Lapsed and Forfeited \| shares	(68,256)
Options outstanding, June 30, 2012 \| shares	2,891,563
Options vested and expected to vest, June 30, 2012 \| shares	2,842,254
Options exercisable, June 30, 2012 \| shares	1,725,004
Weighted Average Exercise Price, Options outstanding, June 30, 2011 \| $ / shares	$ 26.50
Weighted Average Exercise Price, Granted \| $ / shares	39.00
Weighted Average Exercise Price, Exercised \| $ / shares	24.70
Weighted Average Exercise Price, Lapsed and Forfeited \| $ / shares	29.89
Weighted Average Exercise Price, Options outstanding, June 30, 2012 \| $ / shares	28.46
Weighted Average Exercise Price, Option vested and expected to vest, March 31, 2012 \| $ / shares	28.41
Weighted Average Exercise Price, Options exercisable, June 30, 2012 \| $ / shares	$ 27.97
Weighted Average Remaining Life, Options outstanding, June 30, 2012 \| yr	5.8
Weighted Average Remaining Life, Options vested and expected to vest, June 30, 2012 \| yr	5.7
Weighted Average Remaining Life, Options exercisable, June 30, 2012 \| yr	4.6
Aggregate Intrinsic value, Options outstanding, June 30, 2012 \| $	$ 17,426
Aggregate Intrinsic Value, Options vested and expected to vest, June 30, 2012 \| $	17,191
Aggregate Intrinsic Value, Options exercisable, June 30, 2012 \| $	$ 10,766

Stock Based Compensation (Details 2)	12 Months Ended
Stock Based Compensation (Details 2)	Jun. 30, 2012 $ / shares shares
Restricted Stock Award [Member]
Changes in restricted stock awards
Unvested restricted stock awards, June 30, 2011 \| shares	89,315
Vested, Shares \| shares	(64,444)
Forfeited, Shares \| shares	(841)
Unvested restricted stock awards, June 30, 2012 \| shares	24,030
Weighted Average Fair Value, Unvested restricted stock awards, June 30, 2011 \| $ / shares	$ 32.90
Weighted Average Fair Value, Vested \| $ / shares	34.47
Weighted Average Fair Value, Forfeited \| $ / shares	29.60
Weighted Average Fair Value, Unvested restricted stock awards, June 30, 2012 \| $ / shares	$ 28.83
Restricted Stock Units - Performance Vesting [Member]
Changes in restricted stock awards
Unvested restricted stock awards, June 30, 2011 \| shares	116,368
Granted, Shares \| shares	129,977
Vested, Shares \| shares	0
Forfeited, Shares \| shares	0
Unvested restricted stock awards, June 30, 2012 \| shares	246,345
Weighted Average Fair Value, Unvested restricted stock awards, June 30, 2011 \| $ / shares	$ 26.89
Weighted Average Fair Value, Granted \| $ / shares	38.95
Weighted Average Fair Value, Vested \| $ / shares	0.00
Weighted Average Fair Value, Forfeited \| $ / shares	0.00
Weighted Average Fair Value, Unvested restricted stock awards, June 30, 2012 \| $ / shares	$ 31.27
Restricted Stock Units - Time Vesting [Member]
Changes in restricted stock awards
Unvested restricted stock awards, June 30, 2011 \| shares	906,082
Granted, Shares \| shares	358,117
Vested, Shares \| shares	(240,280)
Forfeited, Shares \| shares	(52,152)
Unvested restricted stock awards, June 30, 2012 \| shares	971,767
Weighted Average Fair Value, Unvested restricted stock awards, June 30, 2011 \| $ / shares	$ 25.81
Weighted Average Fair Value, Granted \| $ / shares	39.30
Weighted Average Fair Value, Vested \| $ / shares	25.89
Weighted Average Fair Value, Forfeited \| $ / shares	31.28
Weighted Average Fair Value, Unvested restricted stock awards, June 30, 2012 \| $ / shares	$ 30.47
EPS performance based portion of STEP [Member]
Changes in restricted stock awards
Unvested restricted stock awards, June 30, 2011 \| shares	431,789
Forfeited, Shares \| shares	(431,789)
Unvested restricted stock awards, June 30, 2012 \| shares
Weighted Average Fair Value, Unvested restricted stock awards, June 30, 2011 \| $ / shares	$ 35.23
Weighted Average Fair Value, Forfeited \| $ / shares	35.23
Weighted Average Fair Value, Unvested restricted stock awards, June 30, 2012 \| $ / shares
TSR performance based portion of STEP [Member]
Changes in restricted stock awards
Unvested restricted stock awards, June 30, 2011 \| shares	232,497
Forfeited, Shares \| shares	(232,497)
Unvested restricted stock awards, June 30, 2012 \| shares
Weighted Average Fair Value, Unvested restricted stock awards, June 30, 2011 \| $ / shares	$ 8.21
Weighted Average Fair Value, Forfeited \| $ / shares	8.21
Weighted Average Fair Value, Unvested restricted stock awards, June 30, 2012 \| $ / shares

Stock-Based Compensation (Details Textual) $ / shares in Units, $ in Millions	12 Months Ended
	Jun. 30, 2012 USD ($) yr $ / shares	Jun. 30, 2011 USD ($) $ / shares	Jun. 30, 2010 USD ($) $ / shares
Stock-Based Compensation (Additional Textual) [Abstract]
Weighted average fair value of options granted \| $ / shares	$ 13.87	$ 9.33	$ 7.32
Fair value of options vested	$ 4.7	$ 4.4	$ 4.1
Tax benefits resulting from stock-based compensation deductions in excess of amounts reported for financial reporting purposes	4.1	2.9	0.5
Cash received from the exercise of capital stock option	19.4	13.6	7.2
Tax benefit from the exercise of capital stock option	4.4	3.2	1.2
Total Intrinsic value of options exercised	14.2	9.9	4.0
Fair value of shares delivered	$ 0.4	0.8
Period of achievement of performance goals to earn performance units	3 years
Performance period of individual required to earn performance units	3 years
Stock Option [Member]
Stock-Based Compensation (Textual) [Abstract]
Compensation expense related to stock option	$ 5.5	5.2	4.3
Unrecognized compensation cost	$ 3.6
Unrecognized compensation costs, weighted average period \| yr	1.9
Restricted Stock Award [Member]
Stock-Based Compensation (Textual) [Abstract]
Compensation expense related to stock option	$ 0.9	2.1	2.7
Unrecognized compensation cost	$ 0.1
Unrecognized compensation costs, weighted average period \| yr	0.2
Restricted Stock Units - Time Vesting and Performance Vesting [Member]
Stock-Based Compensation (Textual) [Abstract]
Compensation expense related to stock option	$ 14.9	10.3	2.7
Unrecognized compensation cost	$ 15.7
Unrecognized compensation costs, weighted average period \| yr	2.2
Restricted Stock Units - STEP [Member]
Stock-Based Compensation (Textual) [Abstract]
Compensation expense related to stock option	$ 0.2	$ 0.4	$ 0.5

Environmental Matters (Details Textual) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Environmental Matters (Textual) [Abstract]
Total reserves for potential environmental issues	$ 5.1	$ 5.4
Additional reserves for potential environmental issues	0.6	1.5
Foreign currency translation adjustment	(0.5)	0.6
Cash payment made against the reserves of environmental issues	$ 0.4	0.8
Reversal of international environmental liability		1.1
Payment of civil penalty		$ 0.2

Commitments and Contingencies (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
Commitments and Contingencies (Textual) [Abstract]
Lease expense under rentals	$ 29.1	$ 27.1	$ 28.2
Future minimum operating lease payment for year 2013	19.1
Future minimum operating lease payment for year 2014	12.5
Future minimum operating lease payment for year 2015	7.1
Future minimum operating lease payment for year 2016	4.7
Future minimum operating lease payment for year 2017	3.6
Future minimum operating lease payment for after five years	$ 25.3

Segment Data (Details) - USD ($) $ in Thousands	12 Months Ended
Segment Data (Details) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
External sales:
Total external sales	$ 2,736,246	$ 2,403,493	$ 1,884,067
Operating income :
Total operating income	416,409	321,673	93,228
Interest expense	27,215	22,760	25,203
Other (income) expense, net	(775)	2,780	(8,577)
Income from continuing operations before income taxes	389,969	296,133	76,602
Total depreciation and amortization	104,073	93,471	96,429
Total equity income	7	229	107
Total assets	3,034,188	2,754,469	2,267,823
Total capital expenditures	103,036	83,442	56,679
Total investments in affiliated companies	685	829	2,251
Industrial [Member]
External sales:
Total external sales	1,667,434	1,528,672	1,166,793
Operating income :
Total operating income	283,233	209,663	31,210
Total depreciation and amortization	70,329	68,000	70,383
Total equity income	7	229	107
Total assets	1,465,300	1,531,409	1,310,635
Total capital expenditures	75,579	48,518	31,609
Total investments in affiliated companies	685	829	748
Infrastructure [Member]
External sales:
Total external sales	1,068,812	874,821	717,274
Operating income :
Total operating income	141,640	121,733	79,899
Total depreciation and amortization	33,744	25,471	26,046
Total equity income
Total assets	1,306,781	785,718	682,169
Total capital expenditures	27,457	26,411	11,017
Total investments in affiliated companies			1,503
Corporate [Member]
Operating income :
Total operating income	(8,464)	(9,723)	(17,881)
Total assets	$ 262,107	437,342	275,019
Total capital expenditures		$ 8,513	$ 14,053

Segment Data (Details 1) - USD ($) $ in Thousands	12 Months Ended
Segment Data (Details 1) - USD ($) $ in Thousands	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
External sales:
Total external sales	$ 2,736,246	$ 2,403,493	$ 1,884,067
Total assets:
Total assets	3,034,188	2,754,469	2,267,823
United States [Member]
External sales:
Total external sales	1,170,117	1,041,427	839,168
Total assets:
Total assets	1,177,705	1,165,705	1,091,510
Germany [Member]
External sales:
Total external sales	448,645	398,532	313,929
Total assets:
Total assets	485,442	472,665	333,917
China [Member]
External sales:
Total external sales	214,427	194,945	136,350
Total assets:
Total assets	232,423	179,223	132,072
India [Member]
External sales:
Total external sales	105,136	103,366	73,908
Total assets:
Total assets	95,618	129,104	105,494
United Kingdom [Member]
External sales:
Total external sales	99,386	63,466	52,145
Total assets:
Total assets	104,805	67,549	35,964
Italy [Member]
External sales:
Total external sales	80,520	64,199	50,358
Total assets:
Total assets	172,513	66,082	38,685
Canada [Member]
External sales:
Total external sales	80,007	59,743	44,538
Total assets:
Total assets	134,662	40,421	29,025
Other [Member]
External sales:
Total external sales	538,008	477,815	373,671
Total assets:
Total assets	$ 631,020	$ 633,720	$ 501,156

Segment Data (Details Textual) $ in Millions	12 Months Ended
Segment Data (Details Textual) $ in Millions	Jun. 30, 2012 USD ($) Segment	Jun. 30, 2011 USD ($)	Jun. 30, 2010 USD ($)
Segment Data (Textual) [Abstract]
Sales to a single customer did not aggretage more than	0.04	0.04	0.04
Export sales from us operations to unaffiliated customers \| $	$ 102.1	$ 90.6	$ 84.1
Operations in number of global business unit \| Segment	2

Selected Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
Selected Quarterly Financial Data [Abstract]
Sales	$ 739,216	$ 696,411	$ 641,741	$ 658,877	$ 693,737	$ 614,830	$ 565,768	$ 529,158	$ 2,736,246	$ 2,403,493	$ 1,884,067
Gross profit	264,857	246,446	231,886	251,060	265,645	229,981	200,025	188,740	994,250	884,391	627,728
Net income attributable to Kennametal	$ 86,048	$ 75,499	$ 73,697	$ 71,986	$ 86,655	$ 64,683	$ 43,469	$ 34,921	$ 307,230	$ 229,727	$ 46,419
Basic earnings per share attributable to Kennametal
Net income	$ 1.07	$ 0.94	$ 0.92	$ 0.89	$ 1.06	$ 0.79	$ 0.53	$ 0.43	$ 3.83	$ 2.80	$ 0.57
Diluted earnings per share attributable to Kennametal
Net income	$ 1.06	$ 0.93	$ 0.91	$ 0.88	$ 1.04	$ 0.77	$ 0.52	$ 0.42	$ 3.77	$ 2.76	$ 0.57

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 36, 37, 38
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 5
-Section 03
-Paragraph 20

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 7
-Paragraph 18

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 21
-Article 9

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.21)
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6920599&loc=d3e1252-109256

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=6945512&loc=d3e4984-109258

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04.23)
-URI http://asc.fasb.org/extlink&oid=6879574&loc=d3e536633-122882

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 87-21
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 10, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 28, 29, 30
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 5
-Section 03
-Paragraph 19

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 20
-Article 9

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Net Income
-URI http://asc.fasb.org/extlink&oid=6518256

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Other Comprehensive Income
-URI http://asc.fasb.org/extlink&oid=6519514

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.18)
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6920043&loc=d3e565-108580

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.22)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph A7
-Appendix A

+ Details

Selected Quarterly Financial Data (Details Textual) - USD ($) $ in Millions	3 Months Ended				12 Months Ended
	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Selected Quarterly Financials Data (Textual) [Abstract]
Restructuring charges	$ 4.9	$ 1.0	$ 3.4	$ 3.3	$ 13.7	$ 44.3

Schedule II Valuation and Qualifying Accounts and Reserves (Details) - USD ($)
$ in Thousands

12 Months Ended

Jun. 30, 2012

Jun. 30, 2011

Jun. 30, 2010

Valuation and Qualifying Accounts and Reserves (Textual) [Abstract]

Valuation Allowances and Reserves, Reserves of Businesses Acquired

$ 3,400

Valuation Allowances And Reserves Reserves Foreign Currency Translation Adjustment

(2,600)

Allowance for doubtful accounts [Member]

Valuation and Qualifying Accounts and Reserves

Balance at Beginning of Year

20,958

$ 24,789

$ 25,228

Charges to Costs and Expenses

(3,467)

518

4,163

Charged to Other Comprehensive (Loss) Income

Recoveries

306

966

1,181

Other Adjustments

(1,260)

1,993

(1,055)

Deductions from Reserves

4,007

7,308

4,728

Balance at End of Year

12,530

20,958

24,789

Reserve for excess and obsolete inventory [Member]

Valuation and Qualifying Accounts and Reserves

Balance at Beginning of Year

55,283

68,270

61,123

Charges to Costs and Expenses

8,115

4,971

19,580

Charged to Other Comprehensive (Loss) Income

Other Adjustments

(4,130)

4,525

2,854

Deductions from Reserves

4,226

22,483

15,287

Balance at End of Year

55,042

55,283

68,270

Deferred tax asset valuation allowance [Member]

Valuation and Qualifying Accounts and Reserves

Balance at Beginning of Year

25,662

47,987

48,206

Charges to Costs and Expenses

(6,970)

(27,313)

5,035

Charged to Other Comprehensive (Loss) Income

(1,715)

Other Adjustments

810

^[1]

5,491

(3,539)

Deductions from Reserves

503

Balance at End of Year

$ 19,502

$ 25,662

$ 47,987

[1]	Represents $3.4 million charged to goodwill relating to the business acquisition and ($2.6) million relating to foreign currency translation adjustment.