Accumulated Other Comprehensive Loss

6 Months Ended

Dec. 31, 2016

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, 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 (loss) 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 (loss)	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 loss	—			(639		)	—			(639		)
AOCL, December 31, 2016	$	—		$	(4,085	)	$	—		$	(4,085	)

The components of, and changes in, AOCL were as follows, net of tax, for the six months ended December 31, 2015 (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	2,449			(41,421		)	802			(38,170		)
Amounts reclassified from AOCL	2,422			17,028			(2,184		)	17,266
Net current period other comprehensive   income (loss)	4,871			(24,393		)	(1,382		)	(20,904		)
AOCL, December 31, 2015	$	(133,922	)	$	(121,702	)	$	(8,803	)	$	(264,427	)
Attributable to noncontrolling interests:
Balance, June 30, 2015	$	—		$	(2,258	)	$	—		$	(2,258	)
Other comprehensive loss before   reclassifications	—			(1,067		)	—			(1,067		)
Net current period other comprehensive   loss	—			(1,067		)	—			(1,067		)
AOCL, December 31, 2015	$	—		$	(3,325	)	$	—		$	(3,325	)

Reclassifications out of AOCL for the three and six months ended December 31, 2016 and 2015 consisted of the following (in thousands):

	Three Months Ended December 31,						Six Months Ended December 31,
Details about AOCL components	2016			2015			2016			2015			Affected line item in the Income Statement
Gains and losses on cash flow hedges:
Forward starting interest rate swaps	$	545		$	525		$	1,090		$	1,049		Interest expense
Currency exchange contracts	(163		)	(1,199		)	(321		)	(4,572		)	Other expense (income), net
Total before tax	382			(674		)	769			(3,523		)
Tax impact	—			256			—			1,339			Provision (benefit) for income taxes
Net of tax	$	382		$	(418	)	$	769		$	(2,184	)
Postretirement benefit plans:
Amortization of transition obligations	$	22		$	21		$	45		$	42		See note 10 for further details
Amortization of prior service credit	(119		)	(109		)	(237		)	(220		)	See note 10 for further details
Recognition of actuarial losses	2,177			1,896			4,377			3,810			See note 10 for further details
Total before tax	2,080			1,808			4,185			3,632
Tax impact	(284		)	(605		)	(555		)	(1,210		)	Provision (benefit) for income taxes
Net of tax	$	1,796		$	1,203		$	3,630		$	2,422
Foreign currency translation adjustments:
Released due to divestiture	$	—		$	17,028		$	—		$	17,028		Loss on divestiture
Total before taxes	—			17,028			—			17,028
Tax impact	—			—			—			—			Provision (benefit) for income taxes
Net of tax	$	—		$	17,028		$	—		$	17,028

The amount of income tax allocated to each component of other comprehensive loss for the three months ended December 31, 2016 and 2015:

				2016									2015
(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	$	1,606		$	—		$	1,606		$	447		$	(170	)	$	277
Reclassification of unrealized loss (gain) on expired derivatives designated and qualified as cash flow hedges	382			—			382			(674		)	256			(418		)
Unrecognized net pension and other postretirement benefit gain	4,639			(1,168		)	3,471			1,949			(499		)	1,450
Reclassification of net pension and other postretirement benefit loss	2,080			(284		)	1,796			1,808			(605		)	1,203
Foreign currency translation adjustments	(41,428		)	—			(41,428		)	(24,643		)	1,004			(23,639		)
Reclassification of foreign currency translation adjustment loss realized upon sale	—			—			—			17,028			—			17,028
Other comprehensive loss	$	(32,721	)	$	(1,452	)	$	(34,173	)	$	(4,085	)	$	(14	)	$	(4,099	)

The amount of income tax allocated to each component of other comprehensive loss for the six months ended December 31, 2016 and 2015:

				2016									2015
(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	$	1,480		$	—		$	1,480		$	1,294		$	(492	)	$	802
Reclassification of unrealized loss (gain) on expired derivatives designated and qualified as cash flow hedges	769			—			769			(3,523		)	1,339			(2,184		)
Unrecognized net pension and other postretirement benefit gain	5,401			(1,300		)	4,101			3,216			(767		)	2,449
Reclassification of net pension and other postretirement benefit loss	4,185			(555		)	3,630			3,632			(1,210		)	2,422
Foreign currency translation adjustments	(40,264		)	—			(40,264		)	(43,548		)	1,060			(42,488		)
Reclassification of foreign currency translation adjustment loss realized upon sale	—			—			—			17,028			—			17,028
Other comprehensive loss	$	(28,429	)	$	(1,855	)	$	(30,284	)	$	(21,901	)	$	(70	)	$	(21,971	)