SEGMENT DATA

The Company manages and reports its business in the following three segments: Industrial, Widia and Infrastructure. The Company's reportable operating segments have been determined in accordance with the Company's 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, the Company’s Board of Directors and strategic initiatives, as well as certain other costs and report them in Corporate. None of our reportable operating segments represent the aggregation of two or more operating segments.

Sales to a single customer did not aggregate 4 percent or more of total sales in 2018, 2017 and 2016. Export sales from U.S. operations to unaffiliated customers were $72.4 million, $58.6 million and $65.3 million in 2018, 2017 and 2016, respectively.

INDUSTRIAL The Industrial segment generally serves customers that operate in industrial end markets such as transportation, general engineering, aerospace and defense market sectors, 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.

WIDIA 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.

INFRASTRUCTURE 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.

Segment data is summarized as follows:



(in thousands)	2018			2017			2016
Sales:
Industrial	$	1,292,098		$	1,126,309		$	1,098,439
Widia	198,568			177,662			170,723
Infrastructure	877,187			754,397			829,274
Total sales	$	2,367,853		$	2,058,368		$	2,098,436

Operating income (loss):
Industrial	$	187,495		$	82,842		$	90,324
Widia	4,441			(9,606		)	(9,081		)
Infrastructure	119,701			40,011			(246,306		)
Corporate	(4,072		)	(303		)	(9,880		)
Total operating income (loss)	$	307,565		$	112,944		$	(174,943	)

Interest expense	$	30,081		$	28,842		$	27,752
Other expense (income), net	2,443			2,227			(4,124		)
Income (loss) before income taxes	$	275,041		$	81,875		$	(198,571	)

Depreciation and amortization:
Industrial	$	57,261		$	54,269		$	52,523
Widia	9,483			10,728			10,419
Infrastructure	41,916			42,596			54,459
Corporate	20			63			65
Total depreciation and amortization	$	108,680		$	107,656		$	117,466

Total assets:
Industrial	$	1,169,610		$	1,103,686		$	1,019,887
Widia	193,971			191,626			195,339
Infrastructure	864,402			813,747			849,447
Corporate	697,754			306,437			298,110
Total assets	$	2,925,737		$	2,415,496		$	2,362,783

Capital expenditures:
Industrial	$	112,124		$	70,281		$	66,467
Widia	17,445			17,853			14,093
Infrastructure	41,435			29,884			30,137
Total capital expenditures	$	171,004		$	118,018		$	110,697

Geographic information for sales, based on country where the sale originated, and long-lived assets is as follows:



(in thousands)	2018		2017		2016
Sales:
United States⁽⁶⁾	$	970,003	$	868,466	$	866,197
Germany	331,893		282,347		334,366
China	271,343		220,561		210,124
Canada⁽⁶⁾	102,139		85,488		87,014
India	102,120		84,769		77,934
Italy	69,049		59,967		69,821
France	62,982		56,231		56,264
United Kingdom	45,714		39,731		50,723
Other⁽⁷⁾	412,610		360,808		345,993
Total sales	$	2,367,853	$	2,058,368	$	2,098,436

Total long-lived assets:
United States	$	456,678	$	423,543	$	424,970
Germany	188,673		157,323		143,855
China	67,462		60,908		62,614
India	31,984		28,569		23,797
Israel	25,831		26,627		23,083
Canada	19,396		19,576		18,587
Other	34,189		34,822		33,734
Total long-lived assets⁽⁸⁾:	$	824,213	$	751,368	$	730,640

⁽⁶⁾ Sales of $28.9 million and $31.2 million have been reclassified out of United States and into Canada for 2017 and 2016, respectively, to revise a single legal entity's sales attribution by country from the basis of location to which the product is shipped to the intended basis of location where the sale originated. These misstatements were not material to our current or any prior period financial statements.

⁽⁷⁾ Other consists of sales from 26 countries, none of which individually exceed 2 percent of total sales.

⁽⁸⁾Total long-lived assets as of June 30, 2018 and 2016 include property, plant and equipment, net of $824.2 million and $730.6 million, respectively. Total long-lived assets as of June 30, 2017 include property, plant and equipment, net of $744.4 million and assets held for sale of $7.0 million.

Approximate sales by end markets as a percentage of consolidated sales are as follows:



	2018		2017		2016
End markets:
General engineering	41	%	39	%	38	%
Transportation	20		20		21
Energy	17		18		17
Earthworks	14		15		16
Aerospace and defense	8		8		8
Total	100	%	100	%	100	%