Accumulated Other Comprehensive Loss

9 Months Ended

Mar. 31, 2022

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

ACCUMULATED OTHER COMPREHENSIVE LOSS

The components of, and changes in, accumulated other comprehensive loss (AOCL) were as follows, net of tax, for the nine months ended March 31, 2022:


(in thousands)	Pension and other postretirement benefits		Currency translation adjustment		Derivatives		Total
Attributable to Kennametal:
Balance, June 30, 2021	$	(213,172)	$	(122,428)	$	5,273	$	(330,327)
Other comprehensive income (loss) before reclassifications	4,291		(33,263)		—		(28,972)
Amounts reclassified from AOCL	6,601		—		(577)		6,024
Net other comprehensive income (loss)	10,892		(33,263)		(577)		(22,948)
AOCL, March 31, 2022	$	(202,280)	$	(155,691)	$	4,696	$	(353,275)

Attributable to noncontrolling interests:
Balance, June 30, 2021	$	—	$	(3,982)	$	—	$	(3,982)
Other comprehensive loss before reclassifications	—		(1,363)		—		(1,363)
Net other comprehensive loss	—		(1,363)		—		(1,363)
AOCL, March 31, 2022	$	—	$	(5,345)	$	—	$	(5,345)

The components of, and changes in, AOCL were as follows, net of tax, for the nine months ended March 31, 2021:


(in thousands)	Pension and other postretirement benefits		Currency translation adjustment		Derivatives		Total
Attributable to Kennametal:
Balance, June 30, 2020	$	(232,634)	$	(181,027)	$	(3,581)	$	(417,242)
Other comprehensive (loss) income before reclassifications	(5,489)		47,108		9,272		50,891
Amounts reclassified from AOCL	7,758		—		(210)		7,548
Net other comprehensive income	2,269		47,108		9,062		58,439
AOCL, March 31, 2021	$	(230,365)	$	(133,919)	$	5,481	$	(358,803)

Attributable to noncontrolling interests:
Balance, June 30, 2020	$	—	$	(5,909)	$	—	$	(5,909)
Other comprehensive income before reclassifications	—		1,904		—		1,904
Net other comprehensive income	—		1,904		—		1,904
AOCL, March 31, 2021	$	—	$	(4,005)	$	—	$	(4,005)

Reclassifications out of AOCL for the three and nine months ended March 31, 2022 and 2021 consisted of the following:


	Three Months Ended March 31,				Nine Months Ended March 31,
(in thousands)	2022		2021		2022		2021		Affected line item in the Income Statement
Losses and (gains) on cash flow hedges:
Forward starting interest rate swaps	$	(255)	$	3,068	$	(766)	$	4,337	Interest expense
Currency exchange contracts	—		—		—		(24)		Cost of goods sold and other income, net
Total before tax	(255)		3,068		(766)		4,313
Tax impact	63		(4,216)		189		(4,523)		Provision for income taxes
Net of tax	$	(192)	$	(1,148)	$	(577)	$	(210)

Pension and other postretirement benefits:
Amortization of transition obligations	$	23	$	24	$	71	$	70	Other income, net
Amortization of prior service credit	(66)		(61)		(198)		(182)		Other income, net
Recognition of actuarial losses	2,992		3,508		9,052		10,420		Other income, net
Total before tax	2,949		3,471		8,925		10,308
Tax impact	(764)		(892)		(2,324)		(2,550)		Provision for income taxes
Net of tax	$	2,185	$	2,579	$	6,601	$	7,758

The amount of income tax allocated to each component of other comprehensive loss for the three months ended March 31, 2022 and 2021 were as follows:


			2022						2021
(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	$	—	$	—	$	—	$	6,319	$	(1,548)	$	4,771
Reclassification of unrealized (gain) loss on derivatives designated and qualified as cash flow hedges	(255)		63		(192)		3,068		(4,216)		(1,148)
Unrecognized net pension and other postretirement benefit gain	2,054		(543)		1,511		2,804		(772)		2,032
Reclassification of net pension and other postretirement benefit loss	2,949		(764)		2,185		3,471		(892)		2,579
Foreign currency translation adjustments	(8,055)		(13)		(8,068)		(24,604)		(932)		(25,536)

Other comprehensive loss	$	(3,307)	$	(1,257)	$	(4,564)	$	(8,942)	$	(8,360)	$	(17,302)

The amount of income tax allocated to each component of other comprehensive (loss) income for the nine months ended March 31, 2022 and 2021 were as follows:


			2022						2021
(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	$	—	$	—	$	—	$	12,281	$	(3,009)	$	9,272
Reclassification of unrealized (gain) loss on derivatives designated and qualified as cash flow hedges	(766)		189		(577)		4,313		(4,523)		(210)
Unrecognized net pension and other postretirement benefit gain (loss)	5,885		(1,594)		4,291		(7,109)		1,620		(5,489)
Reclassification of net pension and other postretirement benefit loss	8,925		(2,324)		6,601		10,308		(2,550)		7,758
Foreign currency translation adjustments	(34,575)		(51)		(34,626)		49,174		(162)		49,012

Other comprehensive (loss) income	$	(20,531)	$	(3,780)	$	(24,311)	$	68,967	$	(8,624)	$	60,343