Accumulated Other Comprehensive Loss

9 Months Ended

Mar. 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 nine months ended March 31, 2017 (in thousands):

Attributable to Kennametal:	Postretirement benefit plans			Currency translation adjustment			Derivatives			Total
Balance, June 30, 2016	$	(212,163	)	$	(131,212	)	$	(9,134	)	$	(352,509	)
Other comprehensive income (loss) before reclassifications	3,376			(26,810		)	614			(22,820		)
Amounts reclassified from AOCL	5,434			—			1,158			6,592
Net current period other comprehensive   income (loss)	8,810			(26,810		)	1,772			(16,228		)
AOCL, March 31, 2017	$	(203,353	)	$	(158,022	)	$	(7,362	)	$	(368,737	)
Attributable to noncontrolling interests:
Balance, June 30, 2016	$	—		$	(3,446	)	$	—		$	(3,446	)
Other comprehensive income before   reclassifications	—			330			—			330
Net current period other comprehensive income	—			330			—			330
AOCL, March 31, 2017	$	—		$	(3,116	)	$	—		$	(3,116	)

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

Attributable to Kennametal:	Postretirement benefit plans			Currency translation adjustment			Derivatives			Total
Balance, June 30, 2015	$	(138,793	)	$	(97,309	)	$	(7,421	)	$	(243,523	)
Other comprehensive income (loss) before reclassifications	1,561			(24,165		)	165			(22,439		)
Amounts reclassified from AOCL	3,641			15,088			(1,946		)	16,783
Net current period other comprehensive   income (loss)	5,202			(9,077		)	(1,781		)	(5,656		)
AOCL, March 31, 2016	$	(133,591	)	$	(106,386	)	$	(9,202	)	$	(249,179	)
Attributable to noncontrolling interests:
Balance, June 30, 2015	$	—		$	(2,258	)	$	—		$	(2,258	)
Other comprehensive loss before   reclassifications	—			(540		)	—			(540		)
Net current period other comprehensive   loss	—			(540		)	—			(540		)
AOCL, March 31, 2016	$	—		$	(2,798	)	$	—		$	(2,798	)

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

	Three Months Ended March 31,						Nine Months Ended March 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	$	545		$	525		$	1,635		$	1,574		Interest expense
Currency exchange contracts	(156		)	(141		)	(477		)	(4,713		)	Other expense (income), net
Total before tax	389			384			1,158			(3,139		)
Tax impact	—			(146		)	—			1,193			Provision (benefit) for income taxes
Net of tax	$	389		$	238		$	1,158		$	(1,946	)
Postretirement benefit plans:
Amortization of transition obligations	$	22		$	19		$	67		$	61		See note 10 for further details
Amortization of prior service credit	(119		)	(110		)	(355		)	(329		)	See note 10 for further details
Recognition of actuarial losses	2,155			1,886			6,532			5,694			See note 10 for further details
Total before tax	2,058			1,795			6,244			5,426
Tax impact	(254		)	(576		)	(810		)	(1,785		)	Provision (benefit) for income taxes
Net of tax	$	1,804		$	1,219		$	5,434		$	3,641
Foreign currency translation adjustments:
Released due to divestiture	$	—		$	(1,940	)	$	—		$	15,088		Loss on divestiture
Total before taxes	—			(1,940		)	—			15,088
Tax impact	—			—			—			—			Provision (benefit) for income taxes
Net of tax	$	—		$	(1,940	)	$	—		$	15,088

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

				2017									2016
(in thousands)	Pre-tax			Tax impact			Net of tax			Pre-tax			Tax impact			Net of tax
Unrealized loss on derivatives designated and qualified as cash flow hedges	$	(866	)	$	—		$	(866	)	$	(1,027	)	$	390		$	(637	)
Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges	389			—			389			384			(146		)	238
Unrecognized net pension and other postretirement benefit loss	(970		)	245			(725		)	(1,332		)	444			(888		)
Reclassification of net pension and other postretirement benefit loss	2,058			(254		)	1,804			1,795			(576		)	1,219
Foreign currency translation adjustments	13,706			79			13,785			19,432			(1,649		)	17,783
Reclassification of foreign currency translation adjustment gain realized upon sale	—			—			—			(1,940		)	—			(1,940		)
Other comprehensive income	$	14,317		$	70		$	14,387		$	17,312		$	(1,537	)	$	15,775

The amount of income tax allocated to each component of other comprehensive loss for the nine months ended March 31, 2017 and 2016:

				2017									2016
(in thousands)	Pre-tax			Tax impact			Net of tax			Pre-tax			Tax impact			Net of tax
Unrealized gain on derivatives designated and qualified as cash flow hedges	$	614		$	—		$	614		$	266		$	(101	)	$	165
Reclassification of unrealized loss (gain) on expired derivatives designated and qualified as cash flow hedges	1,158			—			1,158			(3,139		)	1,193			(1,946		)
Unrecognized net pension and other postretirement benefit gain	4,431			(1,055		)	3,376			1,884			(323		)	1,561
Reclassification of net pension and other postretirement benefit loss	6,244			(810		)	5,434			5,426			(1,785		)	3,641
Foreign currency translation adjustments	(26,559		)	79			(26,480		)	(25,294		)	589			(24,705		)
Reclassification of foreign currency translation adjustment loss realized upon sale	—			—			—			15,088			—			15,088
Other comprehensive loss	$	(14,112	)	$	(1,786	)	$	(15,898	)	$	(5,769	)	$	(427	)	$	(6,196	)