0000055242-18-000004 | 10-Q | XBRL Viewer

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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Dec. 31, 2017	Jan. 31, 2018
Document Information [Line Items]
Entity Registrant Name	KENNAMETAL INC.
Entity Central Index Key	0000055242
Current Fiscal Year End Date	--06-30
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		81,573,415

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Income Statement [Abstract]
Sales	$ 571,345	$ 487,573	$ 1,113,799	$ 964,713
Cost of goods sold	378,800	339,950	736,261	673,560
Gross profit	192,545	147,623	377,538	291,153
Operating expense	120,649	111,004	239,980	230,869
Restructuring and asset impairment charges (Note 7)	45	8,456	5,570	37,061
Amortization of intangibles	3,677	4,150	7,338	8,421
Operating income	68,174	24,013	124,650	14,802
Interest expense	7,231	7,151	14,379	14,144
Other expense, net	1,313	726	1,401	844
Income (loss) before income taxes	59,630	16,136	108,870	(186)
Provision for income taxes	17,472	8,221	27,074	13,100
Net income (loss)	42,158	7,915	81,796	(13,286)
Less: Net income attributable to noncontrolling interests	557	653	1,011	1,108
Net income (loss) attributable to Kennametal	$ 41,601	$ 7,262	$ 80,785	$ (14,394)
PER SHARE DATA ATTRIBUTABLE TO KENNAMETAL SHAREHOLDERS
Basic earnings (loss) per share	$ 0.51	$ 0.09	$ 0.99	$ (0.18)
Diluted earnings (loss) per share	0.50	0.09	0.98	(0.18)
Dividends per share	$ 0.20	$ 0.20	$ 0.40	$ 0.40
Basic weighted average shares outstanding	81,477	80,206	81,274	80,131
Diluted weighted average shares outstanding	82,778	81,026	82,446	80,131

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Net income (loss)	$ 42,158	$ 7,915	$ 81,796	$ (13,286)
Other comprehensive income (loss), net of tax [Abstract]
Unrealized (loss) gain on derivatives designated and qualified as cash flow hedges	(286)	1,606	(905)	1,480
Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges	1,007	382	1,403	769
Unrecognized net pension and other postretirement benefit (loss) gain	(625)	3,471	(2,590)	4,101
Reclassification of net pension and other postretirement benefit loss	1,569	1,796	3,348	3,630
Foreign currency translation adjustments	13,924	(41,428)	33,793	(40,264)
Total other comprehensive income (loss), net of tax	15,589	(34,173)	35,049	(30,284)
Total comprehensive income (loss)	57,747	(26,258)	116,845	(43,570)
Less: comprehensive income (loss) attributable to noncontrolling interests	1,445	(401)	2,184	469
Comprehensive income (loss) attributable to Kennametal Shareholders	$ 56,302	$ (25,857)	$ 114,661	$ (44,039)

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Dec. 31, 2017	Jun. 30, 2017
Current assets:
Cash and cash equivalents	$ 159,940	$ 190,629
Accounts receivable, less allowance for doubtful accounts of $13,332 and $13,693, respectively	392,923	380,425
Inventories (Note 10)	507,462	487,681
Other current assets	68,057	55,166
Total current assets	1,128,382	1,113,901
Property, plant and equipment:
Land and buildings	351,190	350,002
Machinery and equipment	1,660,218	1,577,776
Less accumulated depreciation	(1,231,743)	(1,183,390)
Property, plant and equipment, net	779,665	744,388
Other assets:
Assets held for sale (Note 7)	7,547	6,980
Goodwill (Note 17)	306,147	301,367
Other intangible assets, less accumulated amortization of $139,202 and $129,981, respectively (Note 17)	184,523	190,527
Deferred income taxes (Note 3)	21,667	28,349
Other	47,930	29,984
Total other assets	567,814	557,207
Total assets	2,475,861	2,415,496
Current liabilities:
Current maturities of long-term debt and capital leases	48	190
Notes payable to banks	1,312	735
Accounts payable	190,592	215,722
Accrued income taxes	17,370	6,202
Accrued expenses	64,631	85,682
Other current liabilities	133,668	152,947
Total current liabilities	407,621	461,478
Long-term debt and capital leases, less current maturities (Note 11)	695,722	694,991
Deferred income taxes	15,141	14,883
Accrued pension and postretirement benefits	164,701	160,860
Accrued income taxes	2,776	2,636
Other liabilities	25,952	27,995
Total liabilities	1,311,913	1,362,843
Kennametal Shareholders' Equity:
Preferred stock, no par value; 5,000 shares authorized; none issued	0	0
Capital stock, $1.25 par value; 120,000 shares authorized; 81,517 and 80,665 shares issued, respectively	101,897	100,832
Additional paid-in capital	500,388	474,547
Retained earnings	813,936	765,607
Accumulated other comprehensive loss	(289,816)	(323,692)
Total Kennametal Shareholders' Equity	1,126,405	1,017,294
Noncontrolling interests	37,543	35,359
Total equity	1,163,948	1,052,653
Total liabilities and equity	$ 2,475,861	$ 2,415,496

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Dec. 31, 2017	Jun. 30, 2017
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 13,332	$ 13,693
Accumulated amortization on other intangible assets	$ 139,202	$ 129,981
Preferred stock, par value	$ 0	$ 0
Preferred stock, shares authorized	5,000	5,000
Preferred stock, shares issued	0	0
Capital stock, par value	$ 1.25	$ 1.25
Capital stock, shares authorized	120,000	120,000
Capital stock, shares issued	81,517	80,665

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
OPERATING ACTIVITIES
Net income (loss)	$ 81,796	$ (13,286)
Adjustments for non-cash items:
Depreciation	46,061	45,994
Amortization	7,338	8,421
Stock-based compensation expense	11,995	13,275
Restructuring and asset impairment charges (Note 7)	3,172	781
Deferred income tax provision	7,241	1,274
Other	3,474	(2,773)
Changes in certain assets and liabilities:
Accounts receivable	(3,290)	20,423
Inventories	(9,080)	(1,938)
Accounts Payable and accrued liabilities (Note 3)	(66,620)	(5,497)
Accrued income taxes	3,966	1,632
Accrued pension and postretirement benefits	(13,824)	(11,298)
Other	(5,455)	(8,309)
Net cash flow provided by operating activities	66,774	48,699
INVESTING ACTIVITIES
Purchases of property, plant and equipment	(85,223)	(70,573)
Disposals of property, plant and equipment	846	3,509
Other	244	100
Net cash flow used for investing activities	(84,133)	(66,964)
FINANCING ACTIVITIES
Net increase in notes payable	643	1,005
Term debt repayments	(141)	(427)
Purchase of capital stock	(109)	(125)
Dividend reinvestment and the effect of employee benefit and stock plans (Note 3)	15,020	1,341
Cash dividends paid to Shareholders	(32,456)	(31,970)
Other	(271)	(6,626)
Net cash flow used for financing activities	(17,314)	(36,802)
Effect of exchange rate changes on cash and cash equivalents	3,984	(4,511)
CASH AND CASH EQUIVALENTS
Net decrease in cash and cash equivalents	(30,689)	(59,578)
Cash and cash equivalents, beginning of period	190,629	161,579
Cash and cash equivalents, end of period	$ 159,940	$ 102,001

Organization	6 Months Ended
Organization	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION	ORGANIZATION Kennametal Inc. was incorporated in Pennsylvania in 1943 as a manufacturer of tungsten carbide metal cutting tooling. From this beginning, Kennametal Inc. and its subsidiaries (collectively, Kennametal or the Company) has grown into a global leader in the development and application of tungsten carbides, ceramics, super-hard materials and solutions used in metal cutting and mission-critical wear applications to combat extreme conditions associated with wear fatigue, corrosion and high temperatures. The Company's reputation for material technology, metal cutting application knowledge, as well as expertise and innovation in the development of custom solutions and services, contributes to its leading position in its primary markets. Our product offering includes a wide selection of standard and customized technologies for metalworking applications, such as turning, milling, hole making, tooling systems and services. End users of the Company's metalworking products include manufacturers engaged in a diverse array of industries including: the manufacturers of transportation vehicles and components, machine tools and light and heavy machinery; airframe and aerospace components; and energy-related components for the oil and gas industry, as well as power generation. We also produce specialized wear components and metallurgical powders that are used for custom-engineered and challenging applications. End users of the Company's products include producers and suppliers in equipment-intensive operations such as coal mining, road construction, quarrying, oil and gas exploration, refining, production and supply.

Basis of Presentation	6 Months Ended
Basis of Presentation	Dec. 31, 2017
Accounting Policies [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION The condensed consolidated financial statements, which include our accounts and those of our majority-owned subsidiaries, should be read in conjunction with our 2017 Annual Report on Form 10-K. The condensed consolidated balance sheet as of June 30, 2017 was derived from the audited balance sheet included in our 2017 Annual Report on Form 10-K. These interim statements are unaudited; however, we believe that all adjustments necessary for a fair statement of the results of the interim periods were made and all adjustments are normal recurring adjustments. The results for the six months ended December 31, 2017 and 2016 are not necessarily indicative of the results to be expected for a full fiscal year. Unless otherwise specified, any reference to a “year” is to a fiscal year ended June 30. For example, a reference to 2018 is to the fiscal year ending June 30, 2018. When used in this Quarterly Report on Form 10-Q, unless the context requires otherwise, the terms “we,” “our” and “us” refer to Kennametal Inc. and its subsidiaries.

New Accounting Standards	6 Months Ended
New Accounting Standards	Dec. 31, 2017
Accounting Changes and Error Corrections [Abstract]
NEW ACCOUNTING STANDARDS	NEW ACCOUNTING STANDARDS Adopted In March 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-09, "Improvements to Employee Share-Based Payment Accounting," which is intended to simplify equity-based award accounting and presentation. The guidance impacts income tax accounting related to equity-based awards, the classification of awards as either equity or liabilities, and the classification on the statement of cash flows. We adopted this guidance July 1, 2017. The adoption of this guidance resulted in three changes: (1) the increase to deferred tax assets of $1.4 million related to cumulative excess tax benefits previously unrecognized was offset by a valuation allowance, due to the valuation allowance position of our U.S. entity at the time of adoption of this standard; (2) excess tax benefits, previously reported in the financing activities section of the condensed consolidated statements of cash flow, is now reported in the operating activities section, adopted on a prospective basis. Therefore, prior period statements of cash flow were not retrospectively adjusted for this provision; and (3) employee taxes paid when Kennametal withholds shares for tax withholding purposes, previously reported in the operating activities section of the condensed consolidated statement of cash flows, is now reported in the financing activities section, adopted on a retrospective basis. Therefore, prior period statements of cash flow were retrospectively adjusted for this provision. Cash flow provided by operating activities and cash flow used for financing activities increased by $2.1 million for the six months ended December 31, 2016. In July 2015, the FASB issued ASU No. 2015-11, "Simplifying the Measurement of Inventory," which requires that inventory other than LIFO be subsequently measured at the lower of cost and net realizable value, as opposed to the previous practice of lower of cost or market. Subsequent measurement is unchanged for inventory measured using LIFO. We adopted this guidance July 1, 2017. Adoption of this guidance did not have a material impact on our condensed consolidated financial statements. Issued In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers: Topic 606.” This ASU replaces nearly all existing U.S. GAAP guidance on revenue recognition. The standard prescribes a five-step model for recognizing revenue, the application of which will require significant judgment. It also requires additional disclosures. We will adopt this standard on July 1, 2018. Currently, we are analyzing the standard's impact on our customer arrangements and evaluating the new standard against our historical accounting policies and practices, including the timing of revenue recognition. In particular, we are assessing the identification of performance obligations and the impact of variable consideration on the transaction price determination. Further, we continue to assess certain marketing programs and expect to identify more performance obligations under ASC 606 as compared with deliverables and separate units of account previously identified, primarily in the Industrial and Widia segments. We are evaluating the timing of revenue to determine if it will occur in the same or different periods. We have a project team that is performing a detailed review of the terms and provisions of our customer contracts. We have not yet determined the complete impact of adoption of this standard on our condensed consolidated financial statements.

Supplemental Cash Flow Disclosures

6 Months Ended

Dec. 31, 2017

Supplemental Cash Flow Elements [Abstract]

SUPPLEMENTAL CASH FLOW DISCLOSURES



	Six Months Ended December 31,
(in thousands)	2017		2016
Cash paid during the period for:
Income taxes	$	15,866	$	10,191
Interest	13,714		13,480
Supplemental disclosure of non-cash information:
Changes in accounts payable related to purchases of property, plant and equipment	11,477		15,404

Fair Value Measurements

6 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

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

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

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

Level 3: Inputs that are unobservable.

As of December 31, 2017, the fair values of the Company’s financial assets and financial liabilities are categorized as follows:



(in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Derivatives ⁽¹⁾	$	—	$	212	$	—	$	212
Total assets at fair value	$	—	$	212	$	—	$	212

Liabilities:
Derivatives⁽¹⁾	$	—	$	1,253	$	—	$	1,253
Total liabilities at fair value	$	—	$	1,253	$	—	$	1,253

As of June 30, 2017, the fair values of the Company’s financial assets and financial liabilities are categorized as follows:



(in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Derivatives ⁽¹⁾	$	—	$	359	$	—	$	359
Total assets at fair value	$	—	$	359	$	—	$	359

Liabilities:
Derivatives ⁽¹⁾	$	—	$	910	$	—	$	910
Total liabilities at fair value	$	—	$	910	$	—	$	910

⁽¹⁾ Currency derivatives are valued based on observable market spot and forward rates and are classified within Level 2 of the fair value hierarchy.

There have been no changes in classification and transfers between levels in the fair value hierarchy in the current period.

- 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 + Details

Derivative Instruments and Hedging Activities

6 Months Ended

Dec. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

As part of our financial risk management program, we use certain derivative financial instruments. We do not enter into derivative transactions for speculative purposes and, therefore, hold no derivative instruments for trading purposes. We account for derivative instruments as a hedge of the related asset, liability, firm commitment or anticipated transaction, when the derivative is specifically designated and qualifies as a hedge of such items. Our objective in managing foreign exchange exposures with derivative instruments is to reduce volatility in cash flow. We measure hedge effectiveness by assessing the changes in the fair value or expected future cash flows of the hedged item. The ineffective portions are recorded in other expense, net.

The fair value of derivatives designated and not designated as hedging instruments in the condensed consolidated balance sheet are as follows:



(in thousands)	December 31, 2017			June 30, 2017
Derivatives designated as hedging instruments
Other current assets - range forward contracts	$	25		$	1
Other current liabilities - range forward contracts	(1,224		)	(671		)
Other assets - range forward contracts	3			—
Other liabilities - range forward contracts	(6		)	(101		)
Total derivatives designated as hedging instruments	(1,202		)	(771		)
Derivatives not designated as hedging instruments
Other current assets - currency forward contracts	184			358
Other current liabilities - currency forward contracts	(23		)	(138		)
Total derivatives not designated as hedging instruments	161			220
Total derivatives	$	(1,041	)	$	(551	)

Certain currency forward contracts that hedge significant cross-border intercompany loans are considered as other derivatives and therefore do not qualify for hedge accounting. These contracts are recorded at fair value in the condensed consolidated balance sheet, with the offset to other expense, net. Gains related to derivatives not designated as hedging instruments have been recognized as follows:



	Three Months Ended December 31,						Six Months Ended December 31,
(in thousands)	2017			2016			2017			2016
Other expense, net - currency forward contracts	$	(92	)	$	(59	)	$	(208	)	$	(377	)

CASH FLOW HEDGES

Range forward contracts (a transaction where both a put option is purchased and a call option is sold) are designated as cash flow hedges and hedge anticipated cash flows from cross-border intercompany sales of products and services. Gains and losses realized on these contracts are recorded in accumulated other comprehensive loss and are recognized as a component of other expense, net when the underlying sale of products or services is recognized into earnings. The notional amount of the contracts translated into U.S. dollars at December 31, 2017 and June 30, 2017, was $77.9 million and $75.3 million, respectively. The time value component of the fair value of range forward contracts is excluded from the assessment of hedge effectiveness. Assuming the market rates remain constant with the rates at December 31, 2017, we expect to recognize into earnings in the next 12 months $1.6 million of expense on outstanding derivatives.

The following represents gains and losses related to cash flow hedges:



	Three Months Ended December 31,					Six Months Ended December 31,
(in thousands)	2017			2016		2017			2016
(Losses) gains recognized in other comprehensive loss, net	$	(287	)	$	1,606	$	(906	)	$	1,481
Losses reclassified from accumulated other comprehensive loss into other expense, net	$	870		$	382	$	1,262		$	768

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 six months ended December 31, 2017 and 2016.

NET INVESTMENT HEDGES

As of December 31, 2017, we had certain foreign currency-denominated intercompany loans payable with total aggregate principal amounts of €33.0 million as net investment hedges to hedge the foreign exchange exposure of our net investment in Euro-based subsidiaries. Losses of $0.5 million and $1.9 million were recorded as a component of foreign currency translation adjustments in other comprehensive income for the three and six months ended December 31, 2017, respectively. We did not have net investment hedges during the three and six months ended December 31, 2016.

As of December 31, 2017, the foreign currency-denominated intercompany loans payable designated as net investment hedges consisted of:



Instrument	Notional (EUR in thousands)⁽²⁾		Notional (USD in thousands)⁽²⁾		Maturity
Foreign currency-denominated intercompany loan payable	€	26,929	$	32,279	June 26, 2022
Foreign currency-denominated intercompany loan payable	8,667		10,388		November 20, 2018
Foreign currency-denominated intercompany loan payable	2,004		2,402		October 11, 2019

⁽²⁾ Includes principal and accrued interest.

Restructuring and Related Charges

6 Months Ended

Dec. 31, 2017

Restructuring Charges [Abstract]

RESTRUCTURING AND RELATED CHARGES

In prior years, we implemented restructuring actions to streamline the Company's cost structure. The purpose of these initiatives was to improve the alignment of our cost structure with the current operating environment through employment reductions, as well as rationalization and consolidation of certain manufacturing facilities. These restructuring actions were substantially completed in the first quarter of fiscal 2018 and were mainly cash expenditures.

Total restructuring and related charges since inception of $156.0 million have been recorded for these programs through December 31, 2017: $84.6 million in Industrial, $50.3 million in Infrastructure, $13.8 million in Widia and $7.3 million in Corporate.

We recorded restructuring and related charges of $1.5 million and $11.8 million for the three months ended December 31, 2017 and 2016, respectively. Of these amounts, restructuring charges were less than $0.1 million for the three months ended December 31, 2017 and totaled $8.8 million for the three months ended December 31, 2016, of which expense of $0.3 million was related to inventory and was recorded in cost of good sold. Restructuring-related charges of $1.3 million and $2.1 million were recorded in cost of goods sold and $0.2 million and $0.9 million in operating expense for the three months ended December 31, 2017 and 2016, respectively.

We recorded restructuring and related charges of $8.4 million and $43.4 million for the six months ended December 31, 2017 and 2016, respectively. Of these amounts, restructuring charges totaled $5.6 million and $37.3 million, respectively, of which expense of $0.3 million for the six months ended December 31, 2016 was related to inventory and was recorded in cost of goods sold. Restructuring-related charges of $2.5 million and $4.1 million were recorded in cost of goods sold and $0.3 million and $2.0 million in operating expense for the six months ended December 31, 2017 and 2016, respectively.

As of December 31, 2017 and June 30, 2017, property, plant, and equipment of $7.5 million and $7.0 million, respectively, for certain closed manufacturing locations that are part of our restructuring programs met held for sale criteria. We expect to sell these assets within one year from the balance sheet date. These assets are recorded at the lower of carrying amount or fair value less cost to sell. We have also ceased depreciating these assets.

As of December 31, 2017 and June 30, 2017, $15.8 million and $27.3 million of the restructuring accrual is recorded in other current liabilities and $0.7 million and $2.5 million is recorded in other liabilities, respectively, in our condensed consolidated balance sheet. The amount attributable to each segment is as follows:



(in thousands)	June 30, 2017		Expense			Asset Write-Down			Translation		Cash Expenditures			December 31, 2017
Industrial
Severance	$	17,639	$	1,618		$	—		$	820	$	(11,214	)	$	8,863
Facilities	—		2,356			(2,356		)	—		—			—
Other	94		(29		)	—			2		(28		)	39
Total Industrial	$	17,733	$	3,945		$	(2,356	)	$	822	$	(11,242	)	$	8,902

Widia
Severance	$	2,434	$	414		$	—		$	209	$	(2,865	)	$	192
Facilities	—		747			(747		)	—		—			—
Other	—		(7		)	—			1		7			1
Total Widia	$	2,434	$	1,154		$	(747	)	$	210	$	(2,858	)	$	193

Infrastructure
Severance	$	9,573	$	409		$	—		$	207	$	(2,831	)	$	7,358
Facilities	21		69			(69		)	—		(21		)	—
Other	45		(7		)	—			—		(21		)	17
Total Infrastructure	$	9,639	$	471		$	(69	)	$	207	$	(2,873	)	$	7,375
Total	$	29,806	$	5,570		$	(3,172	)	$	1,239	$	(16,973	)	$	16,470

Stock-Based Compensation

6 Months Ended

Dec. 31, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK-BASED COMPENSATION

Stock Options

There were no grants made during the six months ended December 31, 2017 and 2016.

Changes in our stock options for the six months ended December 31, 2017 were as follows:



	Options		Weighted Average Exercise Price		Weighted Average Remaining Life (years)	Aggregate Intrinsic value (in thousands)
Options outstanding, June 30, 2017	1,726,791		$	34.08
Granted	—		—
Exercised	(521,259	)	36.63
Lapsed or forfeited	(62,763	)	39.46
Options outstanding, December 31, 2017	1,142,769		$	32.62	5.4	$	18,049
Options vested and expected to vest, December 31, 2017	1,136,169		$	32.64	5.4	$	17,916
Options exercisable, December 31, 2017	888,358		$	34.36	4.7	$	12,485

During the six months ended December 31, 2017 and 2016, compensation expense related to stock options was $0.4 million and $1.0 million, respectively. As of December 31, 2017, the total unrecognized compensation cost related to options outstanding was $0.5 million and is expected to be recognized over a weighted average period of 0.8 years.

Fair value of options vested during the six months ended December 31, 2017 and 2016 was $1.7 million and $3.1 million, respectively.

Tax benefits relating to excess stock-based compensation deductions are presented in the operating activities section of the condensed consolidated statements of cash flow for the six months ended December 31, 2017. Tax benefits resulting from stock-based compensation deductions were less than the amounts reported for financial reporting purposes by $0.2 million for the six months ended December 31, 2017, and no tax benefits were realized for the six months ended December 31, 2016 due to the valuation allowance on U.S. deferred tax assets.

The amount of cash received from the exercise of capital stock options during the six months ended December 31, 2017 and 2016 was $19.1 million and $3.1 million, respectively. The related tax benefit was $1.1 million for the six months ended December 31, 2017, and there was no related tax benefit realized for the six months ended December 31, 2016 due to the valuation allowance on U.S. deferred tax assets. The total intrinsic value of options exercised during the six months ended December 31, 2017 was $4.8 million and was immaterial for the six months ended December 31, 2016.

Under the provisions of the Kennametal Inc. Stock and Incentive Plan of 2010, as amended and restated on October 22, 2013 and as further amended January 27, 2015, and the Kennametal Inc. 2016 Stock and Incentive Plan, plan participants may deliver stock, owned by the holder for at least six months, in payment of the option price and receive credit for the fair market value of the shares on the date of delivery. The fair market value of shares delivered during the six months ended December 31, 2017 and 2016 was immaterial.

Restricted Stock Units – Time Vesting and Performance Vesting

Performance vesting restricted stock units are earned pro rata each year if certain performance goals are met over a three-year period and are also subject to a service condition that requires the individual to be employed by the Company at the vesting date after the three-year performance period has ended, with the exception of retirement eligible grantees, who upon retirement are entitled to vest in any units that have been earned, including a prorated portion for the partially completed fiscal year in which the retirement occurs. Time vesting stock units are valued at the market value of the stock on the grant date. Performance vesting stock units with a market condition are valued using a Monte Carlo model.

Changes in our time vesting and performance vesting restricted stock units for the six months ended December 31, 2017 were as follows:



	Performance Vesting Stock Units		Performance Vesting Weighted Average Fair Value		Time Vesting Stock Units		Time Vesting Weighted Average Fair Value
Unvested, June 30, 2017	280,250		$	27.62	1,153,444		$	27.66
Granted	158,397		38.81		424,754		37.64
Vested	(10,031	)	42.83		(390,874	)	30.67
Performance metric adjustments, net	16,766		25.84		—		—
Forfeited	—		—		(20,192	)	31.89
Unvested, December 31, 2017	445,382		$	31.19	1,167,132		$	30.20

During the six months ended December 31, 2017 and 2016, compensation expense related to time vesting and performance vesting restricted stock units was $11.0 million and $12.3 million, respectively. As of December 31, 2017, the total unrecognized compensation cost related to unvested time vesting and performance vesting restricted stock units was $23.2 million and is expected to be recognized over a weighted average period of 2.1 years.

Benefit Plans

6 Months Ended

Dec. 31, 2017

Retirement Benefits [Abstract]

BENEFIT PLANS

We sponsor several defined benefit pension plans. Additionally, we provide varying levels of postretirement health care and life insurance benefits to some U.S. employees.

The table below summarizes the components of net periodic pension income:



	Three Months Ended December 31,						Six Months Ended December 31,
(in thousands)	2017			2016			2017			2016
Service cost	$	406		$	727		$	810		$	1,460
Interest cost	7,678			7,770			15,335			15,579
Expected return on plan assets	(14,132		)	(14,672		)	(28,221		)	(29,429		)
Amortization of transition obligation	23			22			46			45
Amortization of prior service (credit) cost	(41		)	(113		)	132			(226		)
Recognition of actuarial losses	1,718			2,088			3,428			4,200
Net periodic pension income	$	(4,348	)	$	(4,178	)	$	(8,470	)	$	(8,371	)

The table below summarizes the components of net periodic other postretirement benefit cost:



	Three Months Ended December 31,						Six Months Ended December 31,
(in thousands)	2017			2016			2017			2016
Interest cost	$	157		$	168		$	314		$	337
Amortization of prior service credit	(6		)	(6		)	(11		)	(11		)
Recognition of actuarial loss	70			89			140			177
Net periodic other postretirement benefit cost	$	221		$	251		$	443		$	503

Inventories

6 Months Ended

Dec. 31, 2017

Inventory Disclosure [Abstract]

INVENTORIES

We used the last-in, first-out (LIFO) method of valuing inventories for 41 percent and 43 percent of total inventories at December 31, 2017 and June 30, 2017, respectively. Since inventory valuations under the LIFO method are based on an annual determination of quantities and costs as of June 30 of each year, the interim LIFO valuations are based on our projections of expected year-end inventory levels and costs. Therefore, the interim financial results are subject to any final year-end LIFO inventory adjustments.

Inventories consisted of the following:



(in thousands)	December 31, 2017			June 30, 2017
Finished goods	$	283,812		$	290,817
Work in process and powder blends	210,265			166,857
Raw materials	86,944			87,627
Inventories at current cost	581,021			545,301
Less: LIFO valuation	(73,559		)	(57,620		)
Total inventories	$	507,462		$	487,681

Long-Term Debt	6 Months Ended
Long-Term Debt	Dec. 31, 2017
Debt Disclosure [Abstract]
LONG-TERM DEBT	LONG-TERM DEBT Our five-year, multi-currency, revolving credit facility, as amended and restated in April 2016 (Credit Agreement), provides for revolving credit loans of up to $600 million for working capital, capital expenditures and general corporate purposes. The Credit Agreement requires us to comply with various restrictive and affirmative covenants, including two financial covenants: a maximum leverage ratio and a minimum consolidated interest coverage ratio (as those terms are defined in the Credit Agreement). We were in compliance with all such covenants as of December 31, 2017. We had no borrowings outstanding under the Credit Agreement as of December 31, 2017 and June 30, 2017. Borrowings under the Credit Agreement are guaranteed by our significant domestic subsidiaries. The Credit Agreement matures in April 2021. Fixed rate debt had a fair market value of $702.1 million and $704.0 million at December 31, 2017 and June 30, 2017, respectively. The Level 2 fair value is determined based on the quoted market price of this debt as of December 31, 2017 and June 30, 2017, respectively.

Environmental Matters	6 Months Ended
Environmental Matters	Dec. 31, 2017
Environmental Remediation Obligations [Abstract]
ENVIRONMENTAL MATTERS	ENVIRONMENTAL MATTERS The operation of our business has exposed us to certain liabilities and compliance costs related to environmental matters. We are involved in various environmental cleanup and remediation activities at certain of our locations. Superfund Sites Among other environmental laws, we are subject to the Comprehensive Environmental Response Compensation and Liability Act of 1980 (CERCLA), under which we have been designated by the United States Environmental Protection Agency (USEPA) as a Potentially Responsible Party (PRP) with respect to environmental remedial costs at certain Superfund sites. We have evaluated our claims and liabilities associated with these Superfund sites based upon best currently available information. We believe our environmental accruals are adequate to cover our portion of the environmental remedial costs at the Superfund sites where we have been designated a PRP, to the extent these expenses are probable and reasonably estimable. Other Environmental Matters We establish and maintain reserves for other potential environmental issues. At December 31, 2017 and June 30, 2017, the balances of these reserves were $12.7 million and $12.4 million, respectively. These reserves represent anticipated costs associated with the remediation of these issues. The reserves we have established for environmental liabilities represent our best current estimate of the costs of addressing all identified environmental situations, based on our review of currently available evidence, and taking into consideration our prior experience in remediation and that of other companies, as well as public information released by the USEPA, other governmental agencies and by the PRP groups in which we are participating. Although the reserves currently appear to be sufficient to cover these environmental liabilities, there are uncertainties associated with environmental liabilities, and we can give no assurance that our estimate of any environmental liability will not increase or decrease in the future. The reserved and unreserved liabilities for all environmental concerns could change substantially due to factors such as the nature and extent of contamination, changes in remedial requirements, technological changes, discovery of new information, the financial strength of other PRPs, the identification of new PRPs and the involvement of and direction taken by the government on these matters. We maintain a Corporate Environmental Health and Safety (EHS) Department to monitor compliance with environmental regulations and to oversee remediation activities. In addition, we have designated EHS analysts who are responsible for each of our global manufacturing facilities. Our financial management team periodically meets with members of the Corporate EHS Department and the Corporate Legal Department to review and evaluate the status of environmental projects and contingencies. On a quarterly basis, we review financial provisions and reserves for environmental contingencies and adjust these reserves when appropriate.

Income Taxes	6 Months Ended
Income Taxes	Dec. 31, 2017
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (TCJA) was signed into law in the U.S. TCJA amends the Internal Revenue Code of 1986 to reduce tax rates and modify policies, credits and deductions for individuals and corporations. For corporations, TCJA reduces the federal tax rate from a maximum of 35.0 percent to a flat 21.0 percent rate and transitions from a worldwide tax system to a territorial tax system. TCJA also adds many new provisions including changes to bonus depreciation, the deduction for executive compensation and interest expense, a tax on global intangible low-taxed income (GILTI), the base erosion anti-abuse tax (BEAT) and a deduction for foreign-derived intangible income (FDII). We are assessing the impact of certain provisions, including the tax on GILTI, the BEAT and the deduction for FDII, which do not apply to the Company until fiscal 2019. This assessment includes the evaluation of our accounting election relative to GILTI as either a period cost or an adjustment to deferred tax assets or liabilities of our foreign subsidiaries for the new tax. The two material items that effect the Company for fiscal 2018 are the reduction in the tax rate and a one-time tax that is imposed on our unremitted foreign earnings (toll tax). On December 22, 2017, the SEC issued Staff Accounting Bulletin 118 (SAB 118) that includes additional guidance allowing companies to use a measurement period, similar to that used in business combinations, to account for the impacts of TCJA in their financial statements. We have accounted for the impacts of TCJA to the extent a reasonable estimate could be made during the three months ended December 31, 2017. We will continue to refine our estimates throughout the measurement period, which will not extend beyond 12 months from the enactment of TCJA, or until the accounting is complete. The U.S. federal tax rate reduction is effective as of January 1, 2018. As a June 30 fiscal year-end taxpayer, our 2018 fiscal year U.S. federal statutory tax rate is expected to be a blended rate of 28.1 percent. We expect our U.S. federal statutory tax rate to be 21.0 percent in 2019. As a result of the reduction in the U.S. corporate income tax rate from 35.0 percent to 21.0 percent under TCJA, we recorded a provisional reduction to our net deferred tax assets with a corresponding decrease to the valuation allowance prior to its release on December 31, 2017. The result of this reduction had no impact on our condensed consolidated statement of income for the six months ended December 31, 2017. The revaluation of our deferred tax assets and liabilities are subject to further adjustments during the measurement period due to the complexity of determining our net deferred tax liability as of the enactment date. Some of the information necessary to determine the accounting impacts of the tax rate change includes final calculations related to our 2017 tax return as well as refining the analysis of which existing deferred balances at the enactment date will reverse in 2018 at the 28.1 percent tax rate and which deferred balances will reverse after 2018 at the 21.0 percent tax rate. We have estimated the toll tax charge to be $77 million after available foreign tax credits. The toll tax charge consumed our entire U.S. federal net operating loss carryforward and other credit carryforwards, which represent a significant portion of our previously available deferred tax assets, and was offset by the release of the valuation allowance associated with these assets. As a result, we do not expect to make a cash payment associated with the toll charge. The toll tax charge is preliminary, and subject to finalization of collecting all information and analyzing the calculation in reasonable detail to complete the accounting. During the three months ended December 31, 2017, we released a valuation allowance of $3.9 million that was previously recorded against our net deferred tax assets in the U.S. A benefit of $6.8 million would have been recorded in the provision for income taxes; however, because of a current period charge of $2.9 million due to an out of period adjustment, a $3.9 million benefit was recorded in the provision for income taxes. The valuation allowance release was driven by utilization of a significant portion of our deferred tax assets to satisfy the toll tax provision in TCJA. Along with expected full-year income in the U.S. in fiscal 2018, we anticipate our domestic deferred taxes to be in a net liability position by June 30, 2018. We consider substantially all of the unremitted earnings of our non-U.S. subsidiaries that have not previously been taxed in the U.S. to be permanently reinvested. As a result of TCJA, which among other provisions allows for a 100% dividends received deduction from controlled foreign subsidiaries, we will re-evaluate our assertion with respect to permanent reinvestment. As part of this evaluation, we will consider our global working capital and capital investment requirements, among other considerations including the potential tax liabilities that would be incurred if the non-U.S. subsidiaries distribute cash to the U.S. parent. If we determine that an entity should no longer remain subject to the permanent reinvestment assertion, we will accrue additional tax charges, including but not limited to state income taxes, withholding taxes and other relevant foreign taxes in the period the conclusion is determined. In accordance with SAB 118, we expect to complete our evaluation by December 22, 2018. The effective income tax rates for the three months ended December 31, 2017 and 2016 were 29.3 percent and 50.9 percent, respectively. The effective income tax rate for the six months ended December 31, 2017 was 24.9 percent, and the effective income tax rate for the six months ended December 31, 2016 was not meaningful as the prior year loss before income taxes was negligible. The change in both periods was primarily driven by prior year U.S. losses not being tax-effected and current year U.S. income being subject to tax. This is the result of the valuation allowance, originally recorded in the fourth quarter of fiscal 2016, being released in the current quarter. During the three months ended December 31, 2017, we identified an error related to the tax rate that had historically been used to calculate the deferred tax charge on intra-entity product transfers. This resulted in an overstatement of deferred tax assets of $8.2 million as of June 30, 2017. During the current quarter, $2.9 million of this amount was corrected in connection with the release of the U.S. valuation allowance. Therefore, the out of period adjustment recorded resulted in a further increase of $5.3 million to the provision for income taxes for the three and six months ended December 31, 2017. The remaining balance related to this item has been reclassified and included in other current assets as of December 31, 2017. The impact to the effective tax rate was 8.9 percent and 4.9 percent for the three and six months ended December 31, 2017, respectively. After evaluation, we determined that the impact of the adjustment was not material to the previously issued financial statements, nor are the out of period adjustments material to the estimated results of this fiscal year.

Earnings Per Share	6 Months Ended
Earnings Per Share	Dec. 31, 2017
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE Basic earnings per share is computed using the weighted average number of shares outstanding during the period, while diluted earnings per share is calculated to reflect the potential dilution that would occur related to the issuance of capital stock under stock option grants, performance awards and restricted stock units. The difference between basic and diluted earnings per share relates solely to the effect of capital stock options, performance awards and restricted stock units. For purposes of determining the number of diluted shares outstanding, weighted average shares outstanding for basic earnings per share calculations were increased due solely to the dilutive effect of unexercised capital stock options, unvested performance awards and unvested restricted stock units by 1.3 million shares and 0.8 million shares for the three months ended December 31, 2017 and 2016, respectively, and 1.2 million shares for the six months ended December 31, 2017. Unexercised capital stock options, performance awards and restricted stock units of 0.2 million shares and 1.7 million shares for the three months ended December 31, 2017 and 2016, respectively, and 0.5 million shares for the six months ended December 31, 2017, 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. For the six months ended December 31, 2016, the effect of unexercised capital stock options, unvested performance awards and unvested restricted stock units was anti-dilutive as a result of a net loss in the period and therefore has been excluded from diluted shares outstanding as well as from the diluted earnings per share calculation.

Equity

6 Months Ended

Dec. 31, 2017

Equity [Abstract]

EQUITY

A summary of the changes in the carrying amounts of total equity, Kennametal Shareholders’ equity and equity attributable to noncontrolling interests as of December 31, 2017 and 2016 is as follows:



	Kennametal Shareholders’ Equity
(in thousands)	Capital stock			Additional paid-in capital			Retained earnings			Accumulated other comprehensive loss			Non- controlling interests		Total equity
Balance as of June 30, 2017	$	100,832		$	474,547		$	765,607		$	(323,692	)	$	35,359	$	1,052,653
Net income	—			—			80,785			—			1,011		81,796
Other comprehensive income	—			—			—			33,876			1,173		35,049
Dividend reinvestment	3			106			—			—			—		109
Capital stock issued under employee benefit and stock plans⁽³⁾	1,065			25,841			—			—			—		26,906
Purchase of capital stock	(3		)	(106		)	—			—			—		(109		)
Cash dividends paid	—			—			(32,456		)	—			—		(32,456		)
Balance as of December 31, 2017	$	101,897		$	500,388		$	813,936		$	(289,816	)	$	37,543	$	1,163,948



	Kennametal Shareholders’ Equity
(in thousands)	Capital stock			Additional paid-in capital			Retained earnings			Accumulated other comprehensive loss			Non- controlling interests			Total equity
Balance as of June 30, 2016	$	99,618		$	436,617		$	780,597		$	(352,509	)	$	31,478		$	995,801
Net (loss) income	—			—			(14,394		)	—			1,108			(13,286		)
Other comprehensive income	—			—			—			(29,645		)	(639		)	(30,284		)
Dividend reinvestment	5			122			—			—			—			127
Capital stock issued under employee benefit and stock plans⁽³⁾	464			14,028			—			—			—			14,492
Purchase of capital stock	(5		)	(122		)	—			—			—			(127		)
Cash dividends paid	—			—			(31,970		)	—			(72		)	(32,042		)
Balance as of December 31, 2016	$	100,082		$	450,645		$	734,233		$	(382,154	)	$	31,875		$	934,681

(3) Net of restricted stock units delivered upon vesting to satisfy tax withholding requirements.

The amounts of comprehensive loss attributable to Kennametal Shareholders and noncontrolling interests are disclosed in the condensed consolidated statements of comprehensive income.

Accumulated Other Comprehensive Loss

6 Months Ended

Dec. 31, 2017

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Loss

ACCUMULATED OTHER COMPREHENSIVE LOSS

Total accumulated other comprehensive loss (AOCL) consists of net income (loss) and other changes in equity from transactions and other events from sources other than shareholders. It includes postretirement benefit plan adjustments, currency translation adjustments and unrealized gains and losses from derivative instruments designated as cash flow hedges.

The components of, and changes in, AOCL were as follows, net of tax, for the six months ended December 31, 2017 (in thousands):



Attributable to Kennametal:	Postretirement benefit plans			Currency translation adjustment			Derivatives			Total
Balance, June 30, 2017	$	(189,038	)	$	(126,606	)	$	(8,048	)	$	(323,692	)
Other comprehensive income before reclassifications	(2,590		)	32,620			(905		)	29,125
Amounts reclassified from AOCL	3,348			—			1,403			4,751
Net current period other comprehensive income	758			32,620			498			33,876
AOCL, December 31, 2017	$	(188,280	)	$	(93,986	)	$	(7,550	)	$	(289,816	)

Attributable to noncontrolling interests:
Balance, June 30, 2017	$	—		$	(2,164	)	$	—		$	(2,164	)
Other comprehensive income before reclassifications	—			1,173			—			1,173
Net current period other comprehensive income	—			1,173			—			1,173
AOCL, December 31, 2017	$	—		$	(991	)	$	—		$	(991	)

The components of, and changes in, AOCL were as follows, net of tax, for the six months ended December 31, 2016 (in thousands):



Attributable to Kennametal:	Postretirement benefit plans			Currency translation adjustment			Derivatives			Total
Balance, June 30, 2016	$	(212,163	)	$	(131,212	)	$	(9,134	)	$	(352,509	)
Other comprehensive income before reclassifications	4,101			(39,625		)	1,480			(34,044		)
Amounts reclassified from AOCL	3,630			—			769			4,399
Net current period other comprehensive income	7,731			(39,625		)	2,249			(29,645		)
AOCL, December 31, 2016	$	(204,432	)	$	(170,837	)	$	(6,885	)	$	(382,154	)

Attributable to noncontrolling interests:
Balance, June 30, 2016	$	—		$	(3,446	)	$	—		$	(3,446	)
Other comprehensive income before reclassifications	—			(639		)	—			(639		)
Net current period other comprehensive income	—			(639		)	—			(639		)
AOCL, December 31, 2016	$	—		$	(4,085	)	$	—		$	(4,085	)

Reclassifications out of AOCL for the three and six months ended December 31, 2017 and 2016 consisted of the following (in thousands):



	Three Months Ended December 31,						Six Months Ended December 31,
Details about AOCL components	2017			2016			2017			2016			Affected line item in the Income Statement
Gains and losses on cash flow hedges:
Forward starting interest rate swaps	$	566		$	545		$	1,132		$	1,090		Interest expense
Currency exchange contracts	768			(163		)	726			(321		)	Other expense, net
Total before tax	1,334			382			1,858			769
Tax impact	(327		)	—			(455		)	—			Provision for income taxes
Net of tax	$	1,007		$	382		$	1,403		$	769

Postretirement benefit plans:
Amortization of transition obligations	$	23		$	22		$	46		$	45		See note 9 for further details
Amortization of prior service (credit) cost	(47		)	(119		)	121			(237		)	See note 9 for further details
Recognition of actuarial losses	1,788			2,177			3,568			4,377			See note 9 for further details
Total before tax	1,764			2,080			3,735			4,185
Tax impact	(195		)	(284		)	(387		)	(555		)	Provision for income taxes
Net of tax	$	1,569		$	1,796		$	3,348		$	3,630

The amount of income tax allocated to each component of other comprehensive income (loss) for the three months ended December 31, 2017 and 2016:



				2017									2016
(in thousands)	Pre-tax			Tax impact			Net of tax			Pre-tax			Tax impact			Net of tax
Unrealized (loss) gain on derivatives designated and qualified as cash flow hedges	$	(379	)	$	93		$	(286	)	$	1,606		$	—		$	1,606
Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges	1,334			(327		)	1,007			382			—			382
Unrecognized net pension and other postretirement benefit (loss) gain	(834		)	209			(625		)	4,639			(1,168		)	3,471
Reclassification of net pension and other postretirement benefit loss	1,764			(195		)	1,569			2,080			(284		)	1,796
Foreign currency translation adjustments	13,996			(72		)	13,924			(41,428		)	—			(41,428		)
Other comprehensive income (loss)	$	15,881		$	(292	)	$	15,589		$	(32,721	)	$	(1,452	)	$	(34,173	)

The amount of income tax allocated to each component of other comprehensive income (loss) for the six months ended December 31, 2017 and 2016:



				2017									2016
(in thousands)	Pre-tax			Tax impact			Net of tax			Pre-tax			Tax impact			Net of tax
Unrealized (loss) gain on derivatives designated and qualified as cash flow hedges	$	(1,199	)	$	294		$	(905	)	$	1,480		$	—		$	1,480
Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges	1,858			(455		)	1,403			769			—			769
Unrecognized net pension and other postretirement benefit (loss) gain	(3,434		)	844			(2,590		)	5,401			(1,300		)	4,101
Reclassification of net pension and other postretirement benefit loss	3,735			(387		)	3,348			4,185			(555		)	3,630
Foreign currency translation adjustments	34,058			(265		)	33,793			(40,264		)	—			(40,264		)
Other comprehensive income (loss)	$	35,018		$	31		$	35,049		$	(28,429	)	$	(1,855	)	$	(30,284	)

Goodwill and Other Intangible Assets

6 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill represents the excess of cost over the fair value of the net assets of acquired companies. Goodwill and other intangible assets with indefinite lives are tested at least annually for impairment. We perform our annual impairment tests during the June quarter in connection with our annual planning process, unless there are impairment indicators based on the results of an ongoing cumulative qualitative assessment that warrant a test prior to that. We evaluate the recoverability of goodwill for each of our reporting units by comparing the fair value of each reporting unit with its carrying value. The fair values of our reporting units are determined using a combination of a discounted cash flow analysis and market multiples based upon historical and projected financial information. We apply our best judgment when assessing the reasonableness of the financial projections used to determine the fair value of each reporting unit. We evaluate the recoverability of indefinite-lived intangible assets using a discounted cash flow analysis based on projected financial information. This evaluation is sensitive to changes in market interest rates and other external factors.

Identifiable assets with finite lives are reviewed for impairment when events or circumstances indicate that the carrying value may not be recoverable.

A summary of the carrying amount of goodwill attributable to each segment, as well as the changes in such, is as follows:



(in thousands)	Industrial			Widia			Infrastructure			Total
Gross goodwill	$	410,694		$	41,515		$	633,211		$	1,085,420
Accumulated impairment losses	(137,204		)	(13,638		)	(633,211		)	(784,053		)
Balance as of June 30, 2017	$	273,490		$	27,877		$	—		$	301,367

Activity for the six months ended December 31, 2017:
Change in gross goodwill due to translation	4,382			398			—			4,780

Gross goodwill	415,076			41,913			633,211			1,090,200
Accumulated impairment losses	(137,204		)	(13,638		)	(633,211		)	(784,053		)
Balance as of December 31, 2017	$	277,872		$	28,275		$	—		$	306,147

The components of our other intangible assets were as follows:



	Estimated Useful Life (in years)	December 31, 2017					June 30, 2017
(in thousands)	Estimated Useful Life (in years)	Gross Carrying Amount		Accumulated Amortization				Gross Carrying Amount		Accumulated Amortization
Contract-based	3 to 15	$	7,070	$	(7,033	)		$	7,064	$	(7,014	)
Technology-based and other	4 to 20	47,032		(30,497		)		46,461		(29,061		)
Customer-related	10 to 21	207,102		(80,872		)		205,502		(74,669		)
Unpatented technology	10 to 30	31,924		(11,888		)		31,754		(10,589		)
Trademarks	5 to 20	12,530		(8,912		)		12,401		(8,648		)
Trademarks	Indefinite	18,067		—				17,326		—
Total		$	323,725	$	(139,202	)		$	320,508	$	(129,981	)

During the six months ended December 31, 2017 and 2016, we recorded amortization expense of $7.3 million and $8.4 million, respectively, related to our other intangible assets.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Segment Data

6 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

SEGMENT DATA

Kennametal delivers productivity to customers seeking peak performance in demanding environments by providing innovative custom and standard wear-resistant solutions. To provide these solutions, we harness our knowledge of advanced materials and application development with a commitment to environmental sustainability. Our product offering includes a wide selection of standard and customized technologies for metalworking, such as sophisticated metal cutting tools, tooling systems and services, as well as advanced, high-performance materials, such as cemented tungsten carbide products, super alloys, coatings and investment castings to address customer demands. We offer these products through a variety of channels to meet customer-specified needs.

Our reportable operating segments have been determined in accordance with our internal management structure, which is organized based on operating activities, the manner in which we organize segments for making operating decisions and assessing performance and the availability of separate financial results. We do not allocate certain corporate expenses related to executive retirement plans, our Board of Directors and strategic initiatives, as well as certain other costs and report them in Corporate. None of our three reportable operating segments represent the aggregation of two or more operating segments.

The Industrial segment generally serves customers that operate in industrial end markets such as transportation, general engineering, aerospace and defense market sectors, as well as the machine tool industry, delivering high performance metalworking tools for specified purposes. Our customers in these end markets use our products and services in the manufacture of engines, airframes, automobiles, trucks, ships and other various types of industrial equipment. The technology and customization requirements we provide vary by customer, application and industry. Industrial goes to market under the Kennametal^® brand through its direct sales force, a network of independent and national chain distributors, integrated supplier channels and via the Internet. Application engineers and technicians are critical to the sales process and directly assist our customers with specified product design, selection, application and support.

The Widia segment offers a focused assortment of standard custom metal cutting solutions to general engineering, aerospace, energy and transportation customers. We serve our customers primarily through a network of value added resellers, integrated supplier channels and via the Internet. Widia markets its products under the WIDIA^®, WIDIA Hanita^® and WIDIA GTD^® brands.

The Infrastructure segment generally serves customers that operate in the energy and earthworks market sectors that support primary industries such as oil and gas, power generation and chemicals; underground, surface and hard-rock mining; highway construction and road maintenance; and process industries such as food and feed. Our success is determined by our ability to gain an in-depth understanding of our customers’ engineering and development needs, to provide complete system solutions and high-performance capabilities to optimize and add value to their operations. Infrastructure markets its products primarily under the Kennametal^® brand and sells through a direct sales force as well as distributors.

Our sales and operating income (loss) by segment are as follows:



	Three Months Ended December 31,						Six Months Ended December 31,
(in thousands)	2017			2016			2017			2016
Sales:
Industrial	$	312,448		$	267,492		$	609,912		$	536,536
Widia	47,744			42,874			92,987			83,888
Infrastructure	211,153			177,207			410,900			344,289
Total sales	$	571,345		$	487,573		$	1,113,799		$	964,713
Operating income (loss):
Industrial	$	43,292		$	18,067		$	78,104		$	23,603
Widia	856			(2,666		)	918			(8,403		)
Infrastructure	25,511			10,274			47,580			2,687
Corporate	(1,485		)	(1,662		)	(1,952		)	(3,085		)
Total operating income	68,174			24,013			124,650			14,802
Interest expense	7,231			7,151			14,379			14,144
Other expense, net	1,313			726			1,401			844
Income (loss) from continuing operations before income taxes	$	59,630		$	16,136		$	108,870		$	(186	)

Supplemental Cash Flow Disclosures (Tables)

6 Months Ended

Dec. 31, 2017

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flow Disclosures



	Six Months Ended December 31,
(in thousands)	2017		2016
Cash paid during the period for:
Income taxes	$	15,866	$	10,191
Interest	13,714		13,480
Supplemental disclosure of non-cash information:
Changes in accounts payable related to purchases of property, plant and equipment	11,477		15,404

Fair Value Measurements (Tables)

6 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Financial instruments at fair value on recurring basis

As of December 31, 2017, the fair values of the Company’s financial assets and financial liabilities are categorized as follows:



(in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Derivatives ⁽¹⁾	$	—	$	212	$	—	$	212
Total assets at fair value	$	—	$	212	$	—	$	212

Liabilities:
Derivatives⁽¹⁾	$	—	$	1,253	$	—	$	1,253
Total liabilities at fair value	$	—	$	1,253	$	—	$	1,253

As of June 30, 2017, the fair values of the Company’s financial assets and financial liabilities are categorized as follows:



(in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Derivatives ⁽¹⁾	$	—	$	359	$	—	$	359
Total assets at fair value	$	—	$	359	$	—	$	359

Liabilities:
Derivatives ⁽¹⁾	$	—	$	910	$	—	$	910
Total liabilities at fair value	$	—	$	910	$	—	$	910

⁽¹⁾ Currency derivatives are valued based on observable market spot and forward rates and are classified within Level 2 of the fair value hierarchy.

Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Dec. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair value of derivatives

The fair value of derivatives designated and not designated as hedging instruments in the condensed consolidated balance sheet are as follows:



(in thousands)	December 31, 2017			June 30, 2017
Derivatives designated as hedging instruments
Other current assets - range forward contracts	$	25		$	1
Other current liabilities - range forward contracts	(1,224		)	(671		)
Other assets - range forward contracts	3			—
Other liabilities - range forward contracts	(6		)	(101		)
Total derivatives designated as hedging instruments	(1,202		)	(771		)
Derivatives not designated as hedging instruments
Other current assets - currency forward contracts	184			358
Other current liabilities - currency forward contracts	(23		)	(138		)
Total derivatives not designated as hedging instruments	161			220
Total derivatives	$	(1,041	)	$	(551	)

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

Gains related to derivatives not designated as hedging instruments have been recognized as follows:



	Three Months Ended December 31,						Six Months Ended December 31,
(in thousands)	2017			2016			2017			2016
Other expense, net - currency forward contracts	$	(92	)	$	(59	)	$	(208	)	$	(377	)

Gains and losses related to cash flow hedges

The following represents gains and losses related to cash flow hedges:



	Three Months Ended December 31,					Six Months Ended December 31,
(in thousands)	2017			2016		2017			2016
(Losses) gains recognized in other comprehensive loss, net	$	(287	)	$	1,606	$	(906	)	$	1,481
Losses reclassified from accumulated other comprehensive loss into other expense, net	$	870		$	382	$	1,262		$	768

Net investment hedges

As of December 31, 2017, the foreign currency-denominated intercompany loans payable designated as net investment hedges consisted of:



Instrument	Notional (EUR in thousands)⁽²⁾		Notional (USD in thousands)⁽²⁾		Maturity
Foreign currency-denominated intercompany loan payable	€	26,929	$	32,279	June 26, 2022
Foreign currency-denominated intercompany loan payable	8,667		10,388		November 20, 2018
Foreign currency-denominated intercompany loan payable	2,004		2,402		October 11, 2019

⁽²⁾ Includes principal and accrued interest.

Restructuring (Tables)

6 Months Ended

Dec. 31, 2017

Restructuring Cost and Reserve [Line Items]

Schedule of Restructuring Reserve by Type of Cost



(in thousands)	June 30, 2017		Expense			Asset Write-Down			Translation		Cash Expenditures			December 31, 2017
Industrial
Severance	$	17,639	$	1,618		$	—		$	820	$	(11,214	)	$	8,863
Facilities	—		2,356			(2,356		)	—		—			—
Other	94		(29		)	—			2		(28		)	39
Total Industrial	$	17,733	$	3,945		$	(2,356	)	$	822	$	(11,242	)	$	8,902

Widia
Severance	$	2,434	$	414		$	—		$	209	$	(2,865	)	$	192
Facilities	—		747			(747		)	—		—			—
Other	—		(7		)	—			1		7			1
Total Widia	$	2,434	$	1,154		$	(747	)	$	210	$	(2,858	)	$	193

Infrastructure
Severance	$	9,573	$	409		$	—		$	207	$	(2,831	)	$	7,358
Facilities	21		69			(69		)	—		(21		)	—
Other	45		(7		)	—			—		(21		)	17
Total Infrastructure	$	9,639	$	471		$	(69	)	$	207	$	(2,873	)	$	7,375
Total	$	29,806	$	5,570		$	(3,172	)	$	1,239	$	(16,973	)	$	16,470

Stock-Based Compensation (Tables)

6 Months Ended

Dec. 31, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Changes in stock options

Changes in our stock options for the six months ended December 31, 2017 were as follows:



	Options		Weighted Average Exercise Price		Weighted Average Remaining Life (years)	Aggregate Intrinsic value (in thousands)
Options outstanding, June 30, 2017	1,726,791		$	34.08
Granted	—		—
Exercised	(521,259	)	36.63
Lapsed or forfeited	(62,763	)	39.46
Options outstanding, December 31, 2017	1,142,769		$	32.62	5.4	$	18,049
Options vested and expected to vest, December 31, 2017	1,136,169		$	32.64	5.4	$	17,916
Options exercisable, December 31, 2017	888,358		$	34.36	4.7	$	12,485

Changes in time vesting and performance vesting restricted stock units

Changes in our time vesting and performance vesting restricted stock units for the six months ended December 31, 2017 were as follows:



	Performance Vesting Stock Units		Performance Vesting Weighted Average Fair Value		Time Vesting Stock Units		Time Vesting Weighted Average Fair Value
Unvested, June 30, 2017	280,250		$	27.62	1,153,444		$	27.66
Granted	158,397		38.81		424,754		37.64
Vested	(10,031	)	42.83		(390,874	)	30.67
Performance metric adjustments, net	16,766		25.84		—		—
Forfeited	—		—		(20,192	)	31.89
Unvested, December 31, 2017	445,382		$	31.19	1,167,132		$	30.20

Benefit Plans (Tables)

6 Months Ended

Dec. 31, 2017

Pension Plan [Member]

Defined Benefit Plan Disclosure [Line Items]

Net periodic pension (income)

The table below summarizes the components of net periodic pension income:



	Three Months Ended December 31,						Six Months Ended December 31,
(in thousands)	2017			2016			2017			2016
Service cost	$	406		$	727		$	810		$	1,460
Interest cost	7,678			7,770			15,335			15,579
Expected return on plan assets	(14,132		)	(14,672		)	(28,221		)	(29,429		)
Amortization of transition obligation	23			22			46			45
Amortization of prior service (credit) cost	(41		)	(113		)	132			(226		)
Recognition of actuarial losses	1,718			2,088			3,428			4,200
Net periodic pension income	$	(4,348	)	$	(4,178	)	$	(8,470	)	$	(8,371	)

Other Postretirement Benefits Plan [Member]

Defined Benefit Plan Disclosure [Line Items]

Net periodic pension (income)

The table below summarizes the components of net periodic other postretirement benefit cost:



	Three Months Ended December 31,						Six Months Ended December 31,
(in thousands)	2017			2016			2017			2016
Interest cost	$	157		$	168		$	314		$	337
Amortization of prior service credit	(6		)	(6		)	(11		)	(11		)
Recognition of actuarial loss	70			89			140			177
Net periodic other postretirement benefit cost	$	221		$	251		$	443		$	503

Inventories (Tables)

6 Months Ended

Dec. 31, 2017

Inventory Disclosure [Abstract]

Inventories

Inventories consisted of the following:



(in thousands)	December 31, 2017			June 30, 2017
Finished goods	$	283,812		$	290,817
Work in process and powder blends	210,265			166,857
Raw materials	86,944			87,627
Inventories at current cost	581,021			545,301
Less: LIFO valuation	(73,559		)	(57,620		)
Total inventories	$	507,462		$	487,681

Equity (Tables)

6 Months Ended

Dec. 31, 2017

Equity [Abstract]

Summary of the changes in the carrying amounts of total equity, Kennametal shareholders' equity and equity attributable to noncontrolling interests

A summary of the changes in the carrying amounts of total equity, Kennametal Shareholders’ equity and equity attributable to noncontrolling interests as of December 31, 2017 and 2016 is as follows:



	Kennametal Shareholders’ Equity
(in thousands)	Capital stock			Additional paid-in capital			Retained earnings			Accumulated other comprehensive loss			Non- controlling interests		Total equity
Balance as of June 30, 2017	$	100,832		$	474,547		$	765,607		$	(323,692	)	$	35,359	$	1,052,653
Net income	—			—			80,785			—			1,011		81,796
Other comprehensive income	—			—			—			33,876			1,173		35,049
Dividend reinvestment	3			106			—			—			—		109
Capital stock issued under employee benefit and stock plans⁽³⁾	1,065			25,841			—			—			—		26,906
Purchase of capital stock	(3		)	(106		)	—			—			—		(109		)
Cash dividends paid	—			—			(32,456		)	—			—		(32,456		)
Balance as of December 31, 2017	$	101,897		$	500,388		$	813,936		$	(289,816	)	$	37,543	$	1,163,948



	Kennametal Shareholders’ Equity
(in thousands)	Capital stock			Additional paid-in capital			Retained earnings			Accumulated other comprehensive loss			Non- controlling interests			Total equity
Balance as of June 30, 2016	$	99,618		$	436,617		$	780,597		$	(352,509	)	$	31,478		$	995,801
Net (loss) income	—			—			(14,394		)	—			1,108			(13,286		)
Other comprehensive income	—			—			—			(29,645		)	(639		)	(30,284		)
Dividend reinvestment	5			122			—			—			—			127
Capital stock issued under employee benefit and stock plans⁽³⁾	464			14,028			—			—			—			14,492
Purchase of capital stock	(5		)	(122		)	—			—			—			(127		)
Cash dividends paid	—			—			(31,970		)	—			(72		)	(32,042		)
Balance as of December 31, 2016	$	100,082		$	450,645		$	734,233		$	(382,154	)	$	31,875		$	934,681

Accumulated Other Comprehensive Loss (Tables)

6 Months Ended

Dec. 31, 2017

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Components of, and changes in accumulated other comprehensive loss

The components of, and changes in, AOCL were as follows, net of tax, for the six months ended December 31, 2017 (in thousands):



Attributable to Kennametal:	Postretirement benefit plans			Currency translation adjustment			Derivatives			Total
Balance, June 30, 2017	$	(189,038	)	$	(126,606	)	$	(8,048	)	$	(323,692	)
Other comprehensive income before reclassifications	(2,590		)	32,620			(905		)	29,125
Amounts reclassified from AOCL	3,348			—			1,403			4,751
Net current period other comprehensive income	758			32,620			498			33,876
AOCL, December 31, 2017	$	(188,280	)	$	(93,986	)	$	(7,550	)	$	(289,816	)

Attributable to noncontrolling interests:
Balance, June 30, 2017	$	—		$	(2,164	)	$	—		$	(2,164	)
Other comprehensive income before reclassifications	—			1,173			—			1,173
Net current period other comprehensive income	—			1,173			—			1,173
AOCL, December 31, 2017	$	—		$	(991	)	$	—		$	(991	)

The components of, and changes in, AOCL were as follows, net of tax, for the six months ended December 31, 2016 (in thousands):



Attributable to Kennametal:	Postretirement benefit plans			Currency translation adjustment			Derivatives			Total
Balance, June 30, 2016	$	(212,163	)	$	(131,212	)	$	(9,134	)	$	(352,509	)
Other comprehensive income before reclassifications	4,101			(39,625		)	1,480			(34,044		)
Amounts reclassified from AOCL	3,630			—			769			4,399
Net current period other comprehensive income	7,731			(39,625		)	2,249			(29,645		)
AOCL, December 31, 2016	$	(204,432	)	$	(170,837	)	$	(6,885	)	$	(382,154	)

Attributable to noncontrolling interests:
Balance, June 30, 2016	$	—		$	(3,446	)	$	—		$	(3,446	)
Other comprehensive income before reclassifications	—			(639		)	—			(639		)
Net current period other comprehensive income	—			(639		)	—			(639		)
AOCL, December 31, 2016	$	—		$	(4,085	)	$	—		$	(4,085	)

Reclassification out of Accumulated Other Comprehensive Loss

Reclassifications out of AOCL for the three and six months ended December 31, 2017 and 2016 consisted of the following (in thousands):



	Three Months Ended December 31,						Six Months Ended December 31,
Details about AOCL components	2017			2016			2017			2016			Affected line item in the Income Statement
Gains and losses on cash flow hedges:
Forward starting interest rate swaps	$	566		$	545		$	1,132		$	1,090		Interest expense
Currency exchange contracts	768			(163		)	726			(321		)	Other expense, net
Total before tax	1,334			382			1,858			769
Tax impact	(327		)	—			(455		)	—			Provision for income taxes
Net of tax	$	1,007		$	382		$	1,403		$	769

Postretirement benefit plans:
Amortization of transition obligations	$	23		$	22		$	46		$	45		See note 9 for further details
Amortization of prior service (credit) cost	(47		)	(119		)	121			(237		)	See note 9 for further details
Recognition of actuarial losses	1,788			2,177			3,568			4,377			See note 9 for further details
Total before tax	1,764			2,080			3,735			4,185
Tax impact	(195		)	(284		)	(387		)	(555		)	Provision for income taxes
Net of tax	$	1,569		$	1,796		$	3,348		$	3,630

Income Tax Allocated to Each Component of Other Comprehensive Income [Table Text Block]

The amount of income tax allocated to each component of other comprehensive income (loss) for the three months ended December 31, 2017 and 2016:



				2017									2016
(in thousands)	Pre-tax			Tax impact			Net of tax			Pre-tax			Tax impact			Net of tax
Unrealized (loss) gain on derivatives designated and qualified as cash flow hedges	$	(379	)	$	93		$	(286	)	$	1,606		$	—		$	1,606
Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges	1,334			(327		)	1,007			382			—			382
Unrecognized net pension and other postretirement benefit (loss) gain	(834		)	209			(625		)	4,639			(1,168		)	3,471
Reclassification of net pension and other postretirement benefit loss	1,764			(195		)	1,569			2,080			(284		)	1,796
Foreign currency translation adjustments	13,996			(72		)	13,924			(41,428		)	—			(41,428		)
Other comprehensive income (loss)	$	15,881		$	(292	)	$	15,589		$	(32,721	)	$	(1,452	)	$	(34,173	)

The amount of income tax allocated to each component of other comprehensive income (loss) for the six months ended December 31, 2017 and 2016:



				2017									2016
(in thousands)	Pre-tax			Tax impact			Net of tax			Pre-tax			Tax impact			Net of tax
Unrealized (loss) gain on derivatives designated and qualified as cash flow hedges	$	(1,199	)	$	294		$	(905	)	$	1,480		$	—		$	1,480
Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges	1,858			(455		)	1,403			769			—			769
Unrecognized net pension and other postretirement benefit (loss) gain	(3,434		)	844			(2,590		)	5,401			(1,300		)	4,101
Reclassification of net pension and other postretirement benefit loss	3,735			(387		)	3,348			4,185			(555		)	3,630
Foreign currency translation adjustments	34,058			(265		)	33,793			(40,264		)	—			(40,264		)
Other comprehensive income (loss)	$	35,018		$	31		$	35,049		$	(28,429	)	$	(1,855	)	$	(30,284	)

Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

The carrying amount of goodwill

A summary of the carrying amount of goodwill attributable to each segment, as well as the changes in such, is as follows:



(in thousands)	Industrial			Widia			Infrastructure			Total
Gross goodwill	$	410,694		$	41,515		$	633,211		$	1,085,420
Accumulated impairment losses	(137,204		)	(13,638		)	(633,211		)	(784,053		)
Balance as of June 30, 2017	$	273,490		$	27,877		$	—		$	301,367

Activity for the six months ended December 31, 2017:
Change in gross goodwill due to translation	4,382			398			—			4,780

Gross goodwill	415,076			41,913			633,211			1,090,200
Accumulated impairment losses	(137,204		)	(13,638		)	(633,211		)	(784,053		)
Balance as of December 31, 2017	$	277,872		$	28,275		$	—		$	306,147

The components of intangible assets

The components of our other intangible assets were as follows:



	Estimated Useful Life (in years)	December 31, 2017					June 30, 2017
(in thousands)	Estimated Useful Life (in years)	Gross Carrying Amount		Accumulated Amortization				Gross Carrying Amount		Accumulated Amortization
Contract-based	3 to 15	$	7,070	$	(7,033	)		$	7,064	$	(7,014	)
Technology-based and other	4 to 20	47,032		(30,497		)		46,461		(29,061		)
Customer-related	10 to 21	207,102		(80,872		)		205,502		(74,669		)
Unpatented technology	10 to 30	31,924		(11,888		)		31,754		(10,589		)
Trademarks	5 to 20	12,530		(8,912		)		12,401		(8,648		)
Trademarks	Indefinite	18,067		—				17,326		—
Total		$	323,725	$	(139,202	)		$	320,508	$	(129,981	)

Segment Data (Tables)

6 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Sales and operating income (loss) by segment and segment assets

Our sales and operating income (loss) by segment are as follows:



	Three Months Ended December 31,						Six Months Ended December 31,
(in thousands)	2017			2016			2017			2016
Sales:
Industrial	$	312,448		$	267,492		$	609,912		$	536,536
Widia	47,744			42,874			92,987			83,888
Infrastructure	211,153			177,207			410,900			344,289
Total sales	$	571,345		$	487,573		$	1,113,799		$	964,713
Operating income (loss):
Industrial	$	43,292		$	18,067		$	78,104		$	23,603
Widia	856			(2,666		)	918			(8,403		)
Infrastructure	25,511			10,274			47,580			2,687
Corporate	(1,485		)	(1,662		)	(1,952		)	(3,085		)
Total operating income	68,174			24,013			124,650			14,802
Interest expense	7,231			7,151			14,379			14,144
Other expense, net	1,313			726			1,401			844
Income (loss) from continuing operations before income taxes	$	59,630		$	16,136		$	108,870		$	(186	)

New Accounting Standards New Accounting Standards - Narrative (Details) - USD ($) $ in Millions	6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
New Accounting Standards [Abstract]
Excess Tax Benefit from Share-based Compensation, Financing Activities	$ 1.4
Payments Related to Tax Withholding for Share-based Compensation		$ 2.1

Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cash paid during the period for:
Interest	$ 13,714	$ 13,480
Income taxes	15,866	10,191
Change in accounts payable related to property, plant, and equipment	$ 11,477	$ 15,404

Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Jun. 30, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives Assets	$ 212	$ 359
Total assets at fair value	212	359
Derivatives Liabilities	1,253	910
Total liabilities at fair value	1,253	910
Fair Value, Measurements, Recurring [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives Assets	212	359
Total assets at fair value	212	359
Derivatives Liabilities	1,253	910
Total liabilities at fair value	1,253	910
Fair Value, Measurements, Recurring [Member] \| Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities at fair value	$ 0	$ 0

Derivative Instruments and Hedging Activities - Fair Value of Derivatives Designated and Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Jun. 30, 2017
Fair value of derivatives
Derivative, Fair Value, Net	$ (1,041)	$ (551)
Designated as Hedging Instrument [Member]
Fair value of derivatives
Derivative, Fair Value, Net	(1,202)	(771)
Not Designated as Hedging Instrument [Member]
Fair value of derivatives
Derivative, Fair Value, Net	161	220
Range Forward Contracts [Member] \| Designated as Hedging Instrument [Member] \| Other Current Assets [Member]
Fair value of derivatives
Derivative assets designated as hedging instruments	25	1
Range Forward Contracts [Member] \| Designated as Hedging Instrument [Member] \| Other Current Liabilities [Member]
Fair value of derivatives
Derivative liabilities designated as hedging instruments	(1,224)	(671)
Range Forward Contracts [Member] \| Designated as Hedging Instrument [Member] \| Other Assets [Member]
Fair value of derivatives
Derivative assets designated as hedging instruments	3	0
Range Forward Contracts [Member] \| Designated as Hedging Instrument [Member] \| Other Liabilities [Member]
Fair value of derivatives
Derivative liabilities designated as hedging instruments	(6)	(101)
Currency Forward Contracts [Member] \| Not Designated as Hedging Instrument [Member] \| Other Current Assets [Member]
Fair value of derivatives
Derivative assets designated as hedging instruments	184	358
Currency Forward Contracts [Member] \| Not Designated as Hedging Instrument [Member] \| Other Current Liabilities [Member]
Fair value of derivatives
Derivative liabilities designated as hedging instruments	$ (23)	$ (138)

Derivative Instruments and Hedging Activities - Gains and Losses Related to Derivatives Not Designated as Hedging Instruments and to Cash Flow Hedges (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Net Investment Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Loss on Derivative Used in Net Investment Hedge, Net of Tax	$ 500		$ 1,900
Currency Forward Contracts [Member] \| Other Expense Income Net [Member] \| Not Designated as Hedging Instrument [Member]
Derivative Instruments, (Gain) Loss Recognized in Income, Net
Other expense, net - currency forward contracts	(92)	$ (59)	(208)	$ (377)
Range Forward Contracts [Member] \| Cash flow hedging [Member]
(Gains) losses related to cash flow hedges
(Losses) gains recognized in other comprehensive loss, net	(287)	1,606	(906)	1,481
Losses reclassified from accumulated other comprehensive loss into other expense, net	$ 870	$ 382	$ 1,262	$ 768

Derivative Instruments and Hedging Activities (Details Textual) € in Thousands, $ in Thousands	3 Months Ended	6 Months Ended
	Dec. 31, 2017 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2017 EUR (€)	Dec. 31, 2017 USD ($)	Jun. 30, 2017 USD ($)
Derivative Instruments and Hedging Activities (Textual) [Abstract]
Recognize loss on outstanding derivatives in the next 12 months				$ 1,600
Gains or losses recognized in earnings due to ineffectiveness and excluded from effectiveness testing		$ 0
Cash Flow Hedging [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount				77,900	$ 75,300
Net Investment Hedging [Member]
Additional Derivative Instruments and Hedging Activities (Textual) [Abstract]
Derivative, Amount of Hedged Item \| €			€ 33,000
Net Investment Hedge Maturing on June 26, 2022 [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount			26,929	32,279
Net Investment Hedge Maturing on November 20, 2018 [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount			8,667	10,388
Net Investment Hedge Maturing on October 11, 2019 [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount			€ 2,004	$ 2,402
Net Investment Hedging [Member]
Additional Derivative Instruments and Hedging Activities (Textual) [Abstract]
Loss on Derivative Used in Net Investment Hedge, Net of Tax	$ 500	$ 1,900

Restructuring and Related Charges - Restructuring Accrual (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Restructuring Reserve [Abstract]
Beginning Balance			$ 29,806
Restructuring Charges	$ 100	$ 8,800	5,570	$ 37,300
Asset Write-Down			(3,172)
Translation			1,239
Cash Expenditures			(16,973)
Ending Balance	16,470		16,470
Industrial [Member]
Restructuring Reserve [Abstract]
Beginning Balance			17,733
Restructuring Charges			3,945
Asset Write-Down			(2,356)
Translation			822
Cash Expenditures			(11,242)
Ending Balance	8,902		8,902
Industrial [Member] \| Severance [Member]
Restructuring Reserve [Abstract]
Beginning Balance			17,639
Restructuring Charges			1,618
Asset Write-Down			0
Translation			820
Cash Expenditures			(11,214)
Ending Balance	8,863		8,863
Industrial [Member] \| Facilities [Member]
Restructuring Reserve [Abstract]
Beginning Balance			0
Restructuring Charges			2,356
Asset Write-Down			(2,356)
Translation			0
Cash Expenditures			0
Ending Balance	0		0
Industrial [Member] \| Other Restructuring [Member]
Restructuring Reserve [Abstract]
Beginning Balance			94
Restructuring Charges			(29)
Asset Write-Down			0
Translation			2
Cash Expenditures			(28)
Ending Balance	39		39
WIDIA [Member]
Restructuring Reserve [Abstract]
Beginning Balance			2,434
Restructuring Charges			1,154
Asset Write-Down			(747)
Translation			210
Cash Expenditures			(2,858)
Ending Balance	193		193
WIDIA [Member] \| Severance [Member]
Restructuring Reserve [Abstract]
Beginning Balance			2,434
Restructuring Charges			414
Asset Write-Down			0
Translation			209
Cash Expenditures			(2,865)
Ending Balance	192		192
WIDIA [Member] \| Facilities [Member]
Restructuring Reserve [Abstract]
Beginning Balance			0
Restructuring Charges			747
Asset Write-Down			(747)
Translation			0
Cash Expenditures			0
Ending Balance	0		0
WIDIA [Member] \| Other Restructuring [Member]
Restructuring Reserve [Abstract]
Beginning Balance			0
Restructuring Charges			(7)
Asset Write-Down			0
Translation			1
Cash Expenditures			7
Ending Balance	1		1
Infrastructure [Member]
Restructuring Reserve [Abstract]
Beginning Balance			9,639
Restructuring Charges			471
Asset Write-Down			(69)
Translation			207
Cash Expenditures			(2,873)
Ending Balance	7,375		7,375
Infrastructure [Member] \| Severance [Member]
Restructuring Reserve [Abstract]
Beginning Balance			9,573
Restructuring Charges			409
Asset Write-Down			0
Translation			207
Cash Expenditures			(2,831)
Ending Balance	7,358		7,358
Infrastructure [Member] \| Facilities [Member]
Restructuring Reserve [Abstract]
Beginning Balance			21
Restructuring Charges			69
Asset Write-Down			(69)
Translation			0
Cash Expenditures			(21)
Ending Balance	0		0
Infrastructure [Member] \| Other Restructuring [Member]
Restructuring Reserve [Abstract]
Beginning Balance			45
Restructuring Charges			(7)
Asset Write-Down			0
Translation			0
Cash Expenditures			(21)
Ending Balance	$ 17		$ 17

Restructuring and Related Charges - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Jun. 30, 2017
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Incurred Cost	$ 1,500	$ 11,800	$ 8,400	$ 43,400
Restructuring Charges	100	8,800	5,570	37,300
Restructuring Charges Related to Inventory Disposals		300		300
Restructuring and Related Cost, Cost Incurred to Date	156,000		156,000
Assets held for sale	7,547		7,547		$ 6,980
Restructuring Reserve, Current	15,800		15,800		27,300
Restructuring Reserve, Noncurrent	700		700		$ 2,500
Industrial [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges			3,945
Restructuring and Related Cost, Cost Incurred to Date	84,600		84,600
Infrastructure [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges			471
Restructuring and Related Cost, Cost Incurred to Date	50,300		50,300
WIDIA [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges			1,154
Restructuring and Related Cost, Cost Incurred to Date	13,800		13,800
Corporate Segment [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Cost Incurred to Date	7,300		7,300
Cost of Sales [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Related Charges Recorded in Cost of Goods Sold	1,300	2,100	2,500	4,100
Operating Expense [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Related Charges Recorded in Cost of Goods Sold	$ 200	$ 900	300	$ 2,000
Other Restructuring [Member] \| Industrial [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges			(29)
Other Restructuring [Member] \| Infrastructure [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges			(7)
Other Restructuring [Member] \| WIDIA [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges			$ (7)

Stock-Based Compensation - Changes in Stock Options (Details)	6 Months Ended
	Dec. 31, 2017 USD ($) $ / shares shares
Changes in stock options
Options outstanding, June 30, 2017 \| shares	1,726,791
Options, Granted \| shares	0
Options, Exercised \| shares	(521,259)
Options, Lapsed or Forfeited \| shares	(62,763)
Options outstanding, December 31, 2017 \| shares	1,142,769
Options vested and expected to vest, December 31, 2017 \| shares	1,136,169
Options exercisable, December 31, 2017 \| shares	888,358
Weighted Average Exercise Price, Options outstanding, June 30, 2017 \| $ / shares	$ 34.08
Weighted Average Exercise Price, Granted \| $ / shares	0.00
Weighted Average Exercise Price, Exercised \| $ / shares	36.63
Weighted Average Exercise Price, Lapsed or Forfeited \| $ / shares	39.46
Weighted Average Exercise Price, Options outstanding, December 31, 2017 \| $ / shares	32.62
Weighted Average Exercise Price, Option vested and expected to vest, December 31, 2017 \| $ / shares	32.64
Weighted Average Exercise Price, Options exercisable, December 31, 2017 \| $ / shares	$ 34.36
Weighted Average Remaining Life, Options outstanding, December 31, 2017	5 years 5 months
Weighted Average Remaining Life, Options vested and expected to vest, December 31, 2017	5 years 5 months
Weighted Average Remaining Life, Options exercisable, December 31, 2017	4 years 8 months
Aggregate Intrinsic value, Options outstanding, December 31, 2017 \| $	$ 18,049,000
Aggregate Intrinsic Value, Options vested and expected to vest, December 31, 2017 \| $	17,916,000
Aggregate Intrinsic Value, Options exercisable, December 31, 2017 \| $	$ 12,485,000

Stock-Based Compensation - Changes in Restricted Stock Units (Details)	6 Months Ended
	Dec. 31, 2017 $ / shares shares
Restricted Stock Units - Performance Vesting [Member]
Changes in restricted stock awards
Unvested restricted stock awards, June 30, 2017, Shares \| shares	280,250
Granted, Shares \| shares	158,397
Vested, Shares \| shares	(10,031)
Performance metric adjustments, net, Shares \| shares	16,766
Forfeited, Shares \| shares	0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value \| $ / shares	$ 0.00
Unvested restricted stock awards, December 31, 2017 \| shares	445,382
Weighted Average Fair Value, Unvested restricted stock awards, June 30, 2017 \| $ / shares	$ 27.62
Weighted Average Fair Value, Granted \| $ / shares	38.81
Weighted Average Fair Value, Vested \| $ / shares	42.83
Weighted Average Fair Value, Performance Metric Not Achieved \| $ / shares	25.84
Weighted Average Fair Value, Unvested restricted stock awards, December 31, 2017 \| $ / shares	$ 31.19
Restricted Stock Units - Time Vesting [Member]
Changes in restricted stock awards
Unvested restricted stock awards, June 30, 2017, Shares \| shares	1,153,444
Granted, Shares \| shares	424,754
Vested, Shares \| shares	(390,874)
Performance metric adjustments, net, Shares \| shares	0
Forfeited, Shares \| shares	(20,192)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value \| $ / shares	$ 31.89
Unvested restricted stock awards, December 31, 2017 \| shares	1,167,132
Weighted Average Fair Value, Unvested restricted stock awards, June 30, 2017 \| $ / shares	$ 27.66
Weighted Average Fair Value, Granted \| $ / shares	37.64
Weighted Average Fair Value, Vested \| $ / shares	30.67
Weighted Average Fair Value, Performance Metric Not Achieved \| $ / shares	0.00
Weighted Average Fair Value, Unvested restricted stock awards, December 31, 2017 \| $ / shares	$ 30.20

Stock-Based Compensation (Details Textual) - USD ($) $ in Millions	6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	0
Stock-Based Compensation (Textual) [Abstract]
Cash received from the exercise of capital stock option	$ 19.1	$ 3.1
Stock-Based Compensation (Additional Textual) [Abstract]
Maximum period of achievement of performance goals to earn performance units	3 years
Minimum performance period of individual required to earn performance units	3 years
Stock Option [Member]
Stock-Based Compensation (Textual) [Abstract]
Compensation expense related to stock option	$ 0.4	1.0
Unrecognized compensation cost	$ 0.5
Unrecognized compensation costs, weighted average period	9 months
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value	$ 1.7	3.1
Tax benefits resulting from stock-based compensation deductions (less than) in excess of amounts reported for financial reporting purposes	0.2	0.0
Tax benefit from the exercise of capital stock option	1.1	0.0
Total Intrinsic value of options exercised	4.8
Restricted Stock Units (RSUs) [Member]
Stock-Based Compensation (Textual) [Abstract]
Compensation expense related to stock option	11.0	$ 12.3
Unrecognized compensation cost	$ 23.2
Unrecognized compensation costs, weighted average period	2 years 1 month 3 days

Benefit Plans - Components of Net Periodic Pension Income (Details) - Pension plans contribution [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Net periodic pension income
Service cost	$ 406	$ 727	$ 810	$ 1,460
Interest cost	7,678	7,770	15,335	15,579
Expected return on plan assets	(14,132)	(14,672)	(28,221)	(29,429)
Amortization of transition obligation	23	22	46	45
Amortization of prior service (credit) cost	(41)	(113)	132	(226)
Recognition of actuarial losses	1,718	2,088	3,428	4,200
Net periodic pension income	$ (4,348)	$ (4,178)	$ (8,470)	$ (8,371)

Benefit Plans - Components of Net Periodic Other Postretirement Benefit Cost (Details) - Other postretirement benefit plans [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Net periodic other postretirement benefit costs
Interest cost	$ 157	$ 168	$ 314	$ 337
Amortization of prior service credit	(6)	(6)	(11)	(11)
Recognition of actuarial loss	70	89	140	177
Net periodic other postretirement benefit cost	$ 221	$ 251	$ 443	$ 503

Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Jun. 30, 2017
Inventories
Finished goods	$ 283,812	$ 290,817
Work in process and powder blends	210,265	166,857
Raw materials	86,944	87,627
Inventories at current cost	581,021	545,301
Less: LIFO valuation	(73,559)	(57,620)
Total inventories	$ 507,462	$ 487,681
Inventories (Textual) [Abstract]
Percentage of inventories valued by using LIFO method	41.00%	43.00%

Long-Term Debt (Details) - USD ($) $ in Millions	Dec. 31, 2017	Jun. 30, 2017	Apr. 15, 2016
Long-Term Debt (Additional Textual) [Abstract]
Fixed rate at fair market value	$ 702.1	$ 704.0
2016 Credit Agreement [Member]
Long-Term Debt (Textual) [Abstract]
Borrowing outstanding under 2016 Credit Agreement	$ 0.0
Line of Credit Facility, Maximum Borrowing Capacity			$ 600.0

Environmental Matters (Details) - USD ($) $ in Millions	Dec. 31, 2017	Jun. 30, 2017
Environmental Remediation Obligations [Abstract]
Reserves for Environmental Costs	$ 12.7	$ 12.4

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended	12 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Income Taxes - Additional Information [Line Items]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent			35.00%
Provisional tax expense for the deemed repatriation of undistributed foreign earnings			$ 77.0
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount			(3.9)
Benefit that would have been recorded before the out-of-period adjustment			$ 6.8
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount	$ 2.9
Overstatement of deferred tax assets						$ 8.2
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent	8.90%		4.90%
Income Tax (Textual) [Abstract]
Effective tax rate	29.30%	50.90%	24.90%
Scenario, Forecast [Member]
Income Taxes - Additional Information [Line Items]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent				21.00%	28.10%
Income Tax Expense (Benefit) [Member]
Income Taxes - Additional Information [Line Items]
Quantifying Misstatement in Current Year Financial Statements, Amount			$ 5.3

Earnings Per Shares (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
Earnings Per Shares (Details) - shares shares in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017
Earnings Per Share (Textual) [Abstract]
Increase in weighted average shares due to dilutive effect of unexercised capital stock options and unvested restricted stock units	1.3	0.8	1.2
Unexercised capital stock options and restricted stock units excluded from computation of diluted EPS	0.2	1.7	0.5

Equity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Equity (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Beginning Balance			$ 1,052,653	$ 995,801
Net income (loss)	$ 42,158	$ 7,915	81,796	(13,286)
Other comprehensive income (loss)	15,589	(34,173)	35,049	(30,284)
Dividend reinvestment			109	127
Capital stock issued under employee benefit and stock plans			26,906	14,492
Purchase of capital stock			(109)	(127)
Cash dividends paid			(32,456)	(32,042)
Ending Balance	1,163,948	934,681	1,163,948	934,681
Capital stock [Member]
Beginning Balance			100,832	99,618
Dividend reinvestment			3	5
Capital stock issued under employee benefit and stock plans			1,065	464
Purchase of capital stock			(3)	(5)
Ending Balance	101,897	100,082	101,897	100,082
Additional paid-in capital [Member]
Beginning Balance			474,547	436,617
Dividend reinvestment			106	122
Capital stock issued under employee benefit and stock plans			25,841	14,028
Purchase of capital stock			(106)	(122)
Ending Balance	500,388	450,645	500,388	450,645
Retained earnings [Member]
Beginning Balance			765,607	780,597
Net income (loss)			80,785	(14,394)
Cash dividends paid			(32,456)	(31,970)
Ending Balance	813,936	734,233	813,936	734,233
Accumulated other comprehensive (loss) income [Member]
Beginning Balance			(323,692)	(352,509)
Other comprehensive income (loss)			33,876	(29,645)
Ending Balance	(289,816)	(382,154)	(289,816)	(382,154)
Non-controlling interest [Member]
Beginning Balance			35,359	31,478
Net income (loss)			1,011	1,108
Other comprehensive income (loss)			1,173	(639)
Cash dividends paid			0	(72)
Ending Balance	$ 37,543	$ 31,875	$ 37,543	$ 31,875

Accumulated Other Comprehensive Loss - Components of and Changes in Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Accumulated Other Comprehensive (Loss) Income [Line Items]
Accumulated Other Comprehensive Loss, Net of Tax			$ (323,692)	$ (352,509)
Other comprehensive income before reclassifications			29,125	(34,044)
Amounts reclassified from accumulated other comprehensive loss			4,751	4,399
Net current period other comprehensive income			33,876	(29,645)
Accumulated Other Comprehensive Loss, Net of Tax	$ (289,816)	$ (382,154)	(289,816)	(382,154)
Accumulated Defined Benefit Plans Adjustment [Member]
Accumulated Other Comprehensive (Loss) Income [Line Items]
Accumulated Other Comprehensive Loss, Net of Tax			(189,038)	(212,163)
Other comprehensive income before reclassifications			(2,590)	4,101
Amounts reclassified from accumulated other comprehensive loss			3,348	3,630
Net current period other comprehensive income			758	7,731
Accumulated Other Comprehensive Loss, Net of Tax	(188,280)	(204,432)	(188,280)	(204,432)
Accumulated Currency Translation Adjustment [Member]
Accumulated Other Comprehensive (Loss) Income [Line Items]
Accumulated Other Comprehensive Loss, Net of Tax			(126,606)	(131,212)
Other comprehensive income before reclassifications			32,620	(39,625)
Amounts reclassified from accumulated other comprehensive loss			0	0
Net current period other comprehensive income			32,620	(39,625)
Accumulated Other Comprehensive Loss, Net of Tax	(93,986)	(170,837)	(93,986)	(170,837)
Accumulated Net (Loss) Gain from Designated or Qualifying Cash Flow Hedges [Member]
Accumulated Other Comprehensive (Loss) Income [Line Items]
Accumulated Other Comprehensive Loss, Net of Tax			(8,048)	(9,134)
Other comprehensive income before reclassifications			(905)	1,480
Amounts reclassified from accumulated other comprehensive loss			1,403	769
Net current period other comprehensive income			498	2,249
Accumulated Other Comprehensive Loss, Net of Tax	(7,550)	(6,885)	(7,550)	(6,885)
Noncontrolling Interest [Member]
Accumulated Other Comprehensive (Loss) Income [Line Items]
Accumulated Other Comprehensive Loss, Net of Tax			(2,164)	(3,446)
Other comprehensive income before reclassifications			1,173	(639)
Net current period other comprehensive income			1,173	(639)
Accumulated Other Comprehensive Loss, Net of Tax	(991)	(4,085)	(991)	(4,085)
Reclassification out of Accumulated Other Comprehensive Loss [Member] \| Accumulated Defined Benefit Plans Adjustment [Member]
Accumulated Other Comprehensive (Loss) Income [Line Items]
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest	(1,764)	(2,080)	(3,735)	(4,185)
Reclassification out of Accumulated Other Comprehensive Loss [Member] \| Accumulated Net (Loss) Gain from Designated or Qualifying Cash Flow Hedges [Member]
Accumulated Other Comprehensive (Loss) Income [Line Items]
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest	$ 1,334	$ 382	$ 1,858	$ 769

Accumulated Other Comprehensive Loss - Reclassifications (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items]
Currency exchange contracts	$ (1,313)	$ (726)	$ (1,401)	$ (844)
Recognition of actuarial losses	1,764	2,080	3,735	4,185
Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges, tax	(327)	0	(455)	0
Provision for income taxes	17,472	8,221	27,074	13,100
Reclassification out of Accumulated Other Comprehensive Loss [Member] \| Accumulated Net (Loss) Gain from Designated or Qualifying Cash Flow Hedges [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items]
Total before tax	(1,334)	(382)	(1,858)	(769)
Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges, tax	(327)	0	(455)	0
Net of tax	(1,007)	(382)	(1,403)	(769)
Reclassification out of Accumulated Other Comprehensive Loss [Member] \| Accumulated Defined Benefit Plans Adjustment [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items]
Amortization of transition obligations	23	22	46	45
Amortization of prior service (credit) cost	(47)	(119)	121	(237)
Recognition of actuarial losses	1,788	2,177	3,568	4,377
Total before tax	1,764	2,080	3,735	4,185
Provision for income taxes	(195)	(284)	(387)	(555)
Net of tax	1,569	1,796	3,348	3,630
Reclassification out of Accumulated Other Comprehensive Loss [Member] \| Forward Starting Interest Rate Swap Contracts [Member] \| Accumulated Net (Loss) Gain from Designated or Qualifying Cash Flow Hedges [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items]
Forward starting interest rate swaps	566	545	1,132	1,090
Reclassification out of Accumulated Other Comprehensive Loss [Member] \| Currency Forward Contracts [Member] \| Accumulated Net (Loss) Gain from Designated or Qualifying Cash Flow Hedges [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items]
Currency exchange contracts	$ 768	$ (163)	$ 726	$ (321)

Accumulated Other Comprehensive Loss Other Comprehensive Income - Income Tax Allocated to Each Component (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Other Comprehensive Income - Income Tax Allocated to Each Component [Abstract]
Unrealized (loss) gain on derivatives designated and qualified as cash flow hedges, before tax	$ (379)	$ 1,606	$ (1,199)	$ 1,480
Unrealized (loss) gain on derivatives designated and qualified as cash flow hedges, tax	93	0	294	0
Unrealized (loss) gain on derivatives designated and qualified as cash flow hedges, net of tax	(286)	1,606	(905)	1,480
Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges, before tax	1,334	382	1,858	769
Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges, tax	(327)	0	(455)	0
Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges, net of tax	1,007	382	1,403	769
Unrecognized net pension and other postretirement benefit (loss) gain, before tax	(834)	4,639	(3,434)	5,401
Unrecognized net pension and other postretirement benefit (loss) gain, tax	209	(1,168)	844	(1,300)
Unrecognized net pension and other postretirement benefit (loss) gain, net of tax	(625)	3,471	(2,590)	4,101
Reclassification of net pension and other postretirement benefit loss, before tax	1,764	2,080	3,735	4,185
Reclassification of net pension and other postretirement benefit loss, tax	(195)	(284)	(387)	(555)
Reclassification of net pension and other postretirement benefit loss	1,569	1,796	3,348	3,630
Foreign currency translation adjustment, before tax	13,996	(41,428)	34,058	(40,264)
Foreign currency translation adjustment, tax	(72)	0	(265)	0
Foreign currency translation adjustment, net of tax	13,924	(41,428)	33,793	(40,264)
Other comprehensive income (loss), before tax	15,881	(32,721)	35,018	(28,429)
Other comprehensive income (loss), tax	(292)	(1,452)	31	(1,855)
Other comprehensive income (loss), net of tax	$ 15,589	$ (34,173)	$ 35,049	$ (30,284)

Goodwill and Other Intangible Assets - Carrying Amount of Goodwill Attributable to Each Segment (Details) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2017	Jun. 30, 2017
Goodwill [Line Items]
Goodwill, Foreign Currency Translation Gain (Loss)	$ 4,780
Goodwill [Roll Forward]
Goodwill	1,090,200	$ 1,085,420
Accumulated impairment losses	(784,053)	(784,053)
Goodwill, Beginning Balance	301,367
Goodwill, Ending Balance	306,147
Industrial [Member]
Goodwill [Line Items]
Goodwill, Foreign Currency Translation Gain (Loss)	4,382
Goodwill [Roll Forward]
Goodwill	415,076	410,694
Accumulated impairment losses	(137,204)	(137,204)
Goodwill, Beginning Balance	273,490
Goodwill, Ending Balance	277,872
Infrastructure [Member]
Goodwill [Line Items]
Goodwill, Foreign Currency Translation Gain (Loss)	0
Goodwill [Roll Forward]
Goodwill	633,211	633,211
Accumulated impairment losses	(633,211)	(633,211)
Goodwill, Beginning Balance	0
Goodwill, Ending Balance	0
WIDIA [Member]
Goodwill [Line Items]
Goodwill, Foreign Currency Translation Gain (Loss)	398
Goodwill [Roll Forward]
Goodwill	41,913	41,515
Accumulated impairment losses	(13,638)	$ (13,638)
Goodwill, Beginning Balance	27,877
Goodwill, Ending Balance	$ 28,275

Goodwill and Other Intangible Assets - Components of Other Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2017	Jun. 30, 2017
The components of intangible assets
Accumulated amortization	$ (139,202)	$ (129,981)
Intangible Assets, Gross (Excluding Goodwill)	323,725	320,508
Trademarks [Member]
The components of intangible assets
Gross carrying amount, Indefinite	18,067	17,326
Contract-based [Member]
The components of intangible assets
Gross carrying amount, finite	7,070	7,064
Accumulated amortization	(7,033)	(7,014)
Technology-based and other [Member]
The components of intangible assets
Gross carrying amount, finite	47,032	46,461
Accumulated amortization	(30,497)	(29,061)
Customer-related [Member]
The components of intangible assets
Gross carrying amount, finite	207,102	205,502
Accumulated amortization	(80,872)	(74,669)
Unpatented technology [Member]
The components of intangible assets
Gross carrying amount, finite	31,924	31,754
Accumulated amortization	(11,888)	(10,589)
Trademarks [Member]
The components of intangible assets
Gross carrying amount, finite	12,530	12,401
Accumulated amortization	$ (8,912)	$ (8,648)
Minimum [Member] \| Contract-based [Member]
The components of intangible assets
Useful life related to technology-based intangible assets	3 years
Minimum [Member] \| Technology-based and other [Member]
The components of intangible assets
Useful life related to technology-based intangible assets	4 years
Minimum [Member] \| Customer-related [Member]
The components of intangible assets
Useful life related to technology-based intangible assets	10 years
Minimum [Member] \| Unpatented technology [Member]
The components of intangible assets
Useful life related to technology-based intangible assets	10 years
Minimum [Member] \| Trademarks [Member]
The components of intangible assets
Useful life related to technology-based intangible assets	5 years
Maximum [Member] \| Contract-based [Member]
The components of intangible assets
Useful life related to technology-based intangible assets	15 years
Maximum [Member] \| Technology-based and other [Member]
The components of intangible assets
Useful life related to technology-based intangible assets	20 years
Maximum [Member] \| Customer-related [Member]
The components of intangible assets
Useful life related to technology-based intangible assets	21 years
Maximum [Member] \| Unpatented technology [Member]
The components of intangible assets
Useful life related to technology-based intangible assets	30 years
Maximum [Member] \| Trademarks [Member]
The components of intangible assets
Useful life related to technology-based intangible assets	20 years

Goodwill and Other Intangible Assets (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Jun. 30, 2017
Goodwill and Other Intangible Assets (Additional Textual) [Abstract]
Goodwill	$ 306,147		$ 306,147		$ 301,367
Amortization expense for intangible assets	3,677	$ 4,150	7,338	$ 8,421
Infrastructure [Member]
Goodwill and Other Intangible Assets (Additional Textual) [Abstract]
Goodwill	0		0		0
Industrial [Member]
Goodwill and Other Intangible Assets (Additional Textual) [Abstract]
Goodwill	277,872		277,872		273,490
WIDIA [Member]
Goodwill and Other Intangible Assets (Additional Textual) [Abstract]
Goodwill	$ 28,275		$ 28,275		$ 27,877

Segment Data - Sales and Operating Income (Loss) by Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Jun. 30, 2017
Segment Reporting Information [Line Items]
Assets	$ 2,475,861		$ 2,475,861		$ 2,415,496
External sales:
Total sales	571,345	$ 487,573	1,113,799	$ 964,713
Operating income (loss):
Total operating (income) loss	(68,174)	(24,013)	(124,650)	(14,802)
Interest expense	7,231	7,151	14,379	14,144
Other expense, net	1,313	726	1,401	844
Income (loss) from continuing operations before income taxes	59,630	16,136	108,870	(186)
Industrial [Member]
External sales:
Total sales	312,448	267,492	609,912	536,536
Operating income (loss):
Total operating (income) loss	(43,292)	(18,067)	(78,104)	(23,603)
Infrastructure [Member]
External sales:
Total sales	211,153	177,207	410,900	344,289
Operating income (loss):
Total operating (income) loss	(25,511)	(10,274)	(47,580)	(2,687)
WIDIA [Member]
External sales:
Total sales	47,744	42,874	92,987	83,888
Operating income (loss):
Total operating (income) loss	(856)	2,666	(918)	8,403
Corporate [Member]
Operating income (loss):
Total operating (income) loss	$ 1,485	$ 1,662	$ 1,952	$ 3,085