10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE FISCAL YEAR ENDED June 30, 2022

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______

Commission File Number 1-5318

KENNAMETAL INC.

(Exact name of registrant as specified in its charter)

Pennsylvania	25-0900168
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

525 William Penn Place
Suite 3300
Pittsburgh,	Pennsylvania	15219
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s telephone number, including area code: (412) 248-8000

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Capital Stock, par value $1.25 per share	KMT	New York Stock Exchange
Preferred Stock Purchase Rights		New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.☒

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of December 31, 2021, the aggregate market value of the registrant’s Capital Stock held by non-affiliates of the registrant, estimated solely for the purposes of this Form 10-K, was approximately $1,725,400,000. For purposes of the foregoing calculation only, all directors and executive officers of the registrant and each person who may be deemed to own beneficially more than 5% of the registrant’s Capital Stock have been deemed affiliates.

As of July 29, 2022, there were 81,338,696 shares of the Registrant’s Capital Stock outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the Proxy Statement for the 2022 Annual Meeting of Shareholders are incorporated by reference into Part III.

Item No.		Page
PART I
1	Business	4
1A.	Risk Factors	9
1B.	Unresolved Staff Comments	13
2.	Properties	13
3.	Legal Proceedings	15
4.	Mine Safety Disclosures	15
PART II
5.	Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	15
7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
7A.	Quantitative and Qualitative Disclosures About Market Risk	31
8.	Financial Statements and Supplementary Data	32
9.	Changes in and Disagreements With Accountants on Accounting and Financial Disclosure	67
9A.	Controls and Procedures	67
9B.	Other Information	67
9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	67
PART III
10.	Directors, Executive Officers and Corporate Governance	68
11.	Executive Compensation	69
12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	69
13.	Certain Relationships and Related Transactions, and Director Independence	69
14.	Principal Accounting Fees and Services	69
SIGNATURES		70
PART IV
15.	Exhibits, Financial Statement Schedules	72
16.	Form 10-K Summary	77

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FORWARD-LOOKING INFORMATION

Statements and financial discussion and analysis contained herein and in the documents incorporated by reference herein that are not historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). For example, statements about Kennametal's outlook for earnings, sales volumes, cash flow, and capital expenditures for its fiscal year 2023, its expectations regarding future growth and any statements regarding future operating or financial performance or events are forward-looking. We have also included forward-looking statements in this Annual Report on Form 10-K ("Annual Report") concerning, among other things, our strategy, goals, plans and projections regarding our financial position, liquidity and capital resources, results of operations, market position, and product development. Any forward-looking statements are based on current knowledge, expectations and estimates that involve inherent risks and uncertainties. Should one or more of these risks or uncertainties materialize, or should the assumptions underlying the forward-looking statements prove incorrect, our actual results could vary materially from our current expectations. There are a number of factors that could cause our actual results to differ from those indicated in the forward-looking statements. They include: uncertainties related to changes in macroeconomic and/or global conditions, including as a result of increased inflation and Russia's invasion of Ukraine and the resulting sanctions on Russia; uncertainties related to the effects of the ongoing COVID-19 pandemic, including the emergence of more contagious or virulent strains of the virus, its impacts on our business operations, financial results and financial position and on the industries in which we operate and the global economy generally, including as a result of travel restrictions, business and workforce disruptions associated with the pandemic; other economic recession; our ability to achieve all anticipated benefits of restructuring, simplification and modernization initiatives; our foreign operations and international markets, such as currency exchange rates, different regulatory environments, trade barriers, exchange controls, and social and political instability, including the conflict in Ukraine; changes in the regulatory environment in which we operate, including environmental, health and safety regulations; potential for future goodwill and other intangible asset impairment charges; our ability to protect and defend our intellectual property; continuity of information technology infrastructure; competition; our ability to retain our management and employees; demands on management resources; availability and cost of the raw materials we use to manufacture our products; product liability claims; integrating acquisitions and achieving the expected savings and synergies; global or regional catastrophic events; demand for and market acceptance of our products; business divestitures; energy costs; commodity prices; labor relations; and implementation of environmental remediation matters. We provide additional information about many of the specific risks we face in the "Risk Factors" section of this Annual Report. We can give no assurance that any goal or plan set forth in forward-looking statements can be achieved and readers are cautioned not to place undue reliance on such statements, which speak only as of the date made. We undertake no obligation to release publicly any revisions to forward-looking statements as a result of future events or developments.

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PART I

ITEM 1 - BUSINESS

OVERVIEW With more than 80 years of materials expertise, Kennametal Inc. (the Company) is a global industrial technology leader, that helps customers across the aerospace, earthworks, energy, general engineering and transportation end markets build their products with precision and efficiency. The Company was founded based on a tungsten carbide technology breakthrough in 1938 and was incorporated in Pennsylvania in 1934 as a manufacturer of tungsten carbide metal cutting tooling. In 1967, it was listed on the New York Stock Exchange (NYSE) with the stock ticker KMT.

The Company's core expertise includes the development and application of tungsten carbides, ceramics, super-hard materials and solutions used in metal cutting and extreme wear applications to keep customers up and running longer against conditions such as corrosion and high temperatures. We bring together material science, technical expertise, innovation and customer service in a way that allows us to anticipate customers' needs and help them overcome problems and achieve their manufacturing objectives.

Our standard and custom product offering spans metal cutting and wear applications including turning, milling, hole making, tooling systems and services, as well as specialized wear components and metallurgical powders. End users of the Company's metal cutting products include manufacturers engaged in a diverse array of industries including: 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. The Company’s wear and metallurgical powders are used by producers and suppliers in equipment-intensive operations such as road construction, mining, quarrying, and oil and gas exploration, refining, production and supply.

Unless otherwise specified, any reference to a “year” refers to our fiscal year ending on June 30. Unless the context requires otherwise, the terms “we,” “our” and “us” refer to Kennametal Inc. and its subsidiaries.

BUSINESS SEGMENT REVIEW Kennametal operates in two segments: Metal Cutting 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. Sales and operating income by segment are presented in Management’s Discussion and Analysis of Financial Condition and Results of Operations set forth in Item 7 of this Annual Report (MD&A). Additional segment data is provided in Note 21 of our consolidated financial statements set forth in Item 8 of this Annual Report.

METAL CUTTING The Metal Cutting segment develops and manufactures high performance tooling and metal cutting products and services and offers an assortment of standard and custom metal cutting solutions to diverse end markets, including aerospace, general engineering, energy and transportation. The products include milling, hole making, turning, threading and toolmaking systems used in the manufacture of airframes, aero engines, trucks and automobiles, ships and various types of industrial equipment. We leverage advanced manufacturing capabilities in combination with varying levels of customization to solve our customers’ toughest challenges and deliver improved productivity for a wide range of applications. Metal Cutting markets its products under the Kennametal®, WIDIA®, WIDIA Hanita® and WIDIA GTD® brands through its direct sales force, a network of independent and national distributors, integrated supplier channels and digitally. Application engineers and technicians are critical to the sales process and directly assist our customers with specified product design, selection, application and support.

INFRASTRUCTURE Our Infrastructure segment produces engineered tungsten carbide and ceramic components, earth-cutting tools, and advanced metallurgical powders, primarily for the energy, earthworks and general engineering end markets. These wear-resistant products include compacts, nozzles, frac seats and custom components used in oil and gas and petrochemical industries; rod blanks and abrasive water jet nozzles for general industries; earth cutting tools and systems used in underground mining, trenching and foundation drilling and road milling; tungsten carbide powders for the oil and gas, aerospace and process industries; and ceramics used by the packaging industry for metallization of films and papers. We combine deep metallurgical and engineering expertise with advanced manufacturing capabilities, such as 3D printing, to deliver solutions that drive improved productivity for our customers. Infrastructure markets its products primarily under the Kennametal® brand and sells through a direct sales force as well as through distributors.

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INTERNATIONAL OPERATIONS During 2022, we generated 60 percent of our consolidated sales in markets outside of the United States of America (U.S.), with principal international operations in Western Europe, China and India. We also operate manufacturing and distribution facilities in Israel, Latin America, South Africa and Vietnam, while serving customers through sales offices, agents and distributors in Europe and other parts of the world. While geographic diversification helps to minimize the sales and earnings effect of demand changes in any one particular region, our international operations are subject to normal risks of doing business globally, including fluctuations in currency exchange rates and changes in social, political and economic environments.

Our international sales and long-lived assets are presented in Note 21 of the Company’s consolidated financial statements, set forth in Item 8 of this Annual Report. Further information about the effects and risks of currency exchange rates are presented in the Quantitative and Qualitative Disclosures About Market Risk section, set forth in Item 7A of this Annual Report.

STRATEGY AND GENERAL DEVELOPMENT OF BUSINESS We continued to make progress on our growth initiatives in the following areas in fiscal 2022.

Growth

•We launched more than 20 new products, including Infrastructure's PCD Roof Tool and Road King Diamond Flex, and Metal Cutting's new 4-flute solid carbide endmill and product line extensions for KOR5 and H1TE.

•We further cemented our position as a technology and commercial leader in tungsten carbide additive manufacturing through the introduction of new powder grades for component production, and strategic industry partnerships to advance tungsten carbide binder jet printing.

Sales in 2022 of $2,012.5 million increased from $1,841.4 million in 2021, reflecting a 9 percent increase of which 11 percent was due to organic sales growth, partially offset by 2 percent from an unfavorable currency exchange effect.

ACQUISITIONS AND DIVESTITURES We continually evaluate new opportunities to expand into new market areas, and to introduce new and/or complementary product offerings into new or existing areas where appropriate. We expect to continue to grow our business and further enhance our market position through the investment opportunities that exist within our core businesses, including potential acquisitions in the near term.

RAW MATERIALS AND SUPPLIES Our major metallurgical raw materials consist of tungsten ore concentrates and scrap carbide, which are used to make tungsten oxide, as well as compounds and secondary materials such as cobalt. Although an adequate supply of these raw materials currently exists, our major sources for raw materials are located abroad and prices fluctuate at times. We exercise great care in selecting, purchasing and managing the availability of raw materials utilizing a mix of long-term supply agreements coupled with spot purchases. Additionally, our internal tungsten recycling capability provides us access to additional sources of tungsten, and therefore, helps to mitigate our reliance on third parties. We also purchase steel bars and forgings for making toolholders and other tool parts, as well as for producing mining tools, rotary cutting tools and accessories. We purchase products for use in manufacturing processes and for resale from thousands of suppliers located in the U.S. and abroad.

RESEARCH AND DEVELOPMENT (R&D) Our R&D efforts focus on delivering innovations to our customers from both new product and process technology development. New product development provides solutions to our customers’ manufacturing challenges and productivity requirements. New process technology is developed and implemented in support of operational excellence to enhance product quality and efficiency at our plant sites. We use a disciplined framework, and have established “stage-gates,” or sequential tests to remove inefficiencies and accelerate commercial success. This framework is designed to accelerate and streamline development into a series of actions and decision points, integrating resource tasks to implement new and enhanced products and process technologies faster. Our stage-gate process ensures a strong linkage between verified customer requirements and corporate strategy, and enables us to gain the full benefits of our investment in development work.

We hold a number of patents and trademarks which, in the aggregate, are material to the operation of our businesses. The duration of our patent protection varies throughout the world by jurisdiction.

SEASONALITY Our business is affected by seasonal variations to varying degrees by summer road construction, traditional summer vacation shutdowns of customers’ plants and holiday shutdowns that affect our sales levels during the first and second quarters of our fiscal year.

BACKLOG Our backlog of standard orders generally is not significant to our operations.

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COMPETITION As one of the world’s leading producers of tooling and metal cutting products, specialty wear-resistant components and ceramics, earth cutting tools and advanced metallurgical powders, we maintain a leading competitive position in major markets worldwide. We actively compete in the sale of all our products with several large global competitors and with many smaller niche businesses offering various capabilities to customers around the world. While several of our competitors are divisions of larger corporations, our industry remains largely fragmented, containing several hundred fabricators, toolmakers and niche specialty coating businesses. Many of our competitors operate relatively small facilities, producing a limited selection of tools while buying cemented tungsten carbide components from original producers of cemented tungsten carbide products, including Kennametal. We also supply coated solutions and other engineered wear-resistant products to both larger corporations and smaller niche businesses. Given the fragmentation, opportunities for consolidation exist from both U.S.-based and internationally-based firms, as well as among thousands of industrial supply distributors.

The principal competitive differentiators in our businesses include customer focused support and application expertise, custom and standard product innovation, product performance and quality and our brand recognition. We derive competitive advantage from our premium brand positions, global presence, application expertise and ability to address unique customer needs with new and improved tools, innovative surface and wear-resistant solutions, highly engineered components, consistent quality, traditional and digital customer service and technical assistance capabilities, state-of-the-art manufacturing and multiple sales channels. With these strengths, we are able to sell products based on the value-added productivity we deliver to our customers, rather than competing solely on price.

REGULATION From time to time, we are a party to legal claims and proceedings that arise in the ordinary course of business, which may relate to our operations or assets, including real, tangible, or intellectual property assets. While we currently believe that the amount of ultimate liability, if any, we may face with respect to these actions will not materially affect our financial position, results of operations or liquidity, the ultimate outcome of any litigation is uncertain. Were an unfavorable outcome to occur or if protracted litigation were to ensue, the effect on us could be material.

Compliance with government laws and regulations pertaining to the discharge of materials or pollutants into the environment or otherwise relating to the protection of the environment did not have a material effect on our capital expenditures or competitive position for the years covered by this Annual Report, nor is such compliance expected to have a material effect on us in the future.

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 sites associated with our current or former operations.

We establish and maintain accruals for certain potential environmental obligations. At June 30, 2022 and 2021, the balances of these accruals were $12.5 million and $14.7 million, respectively. These accruals represent anticipated costs associated with the remediation of these issues and are generally not discounted.

The accruals we have established for environmental obligations represent our best current estimate of the probable and reasonably estimable costs of addressing 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 United States Environmental Protection Agency (USEPA), other governmental agencies and by the Potentially Responsible Party (PRP) groups in which we are participating. Although the accruals currently appear to be sufficient to cover these environmental obligations, 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 recorded and unrecorded 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.

Among other environmental laws, we are subject to the Comprehensive Environmental Response Compensation and Liability Act of 1980, under which we have been identified by the USEPA or other third party as a PRP with respect to environmental remedial costs at certain sites. We have evaluated our claims and potential liability associated with these sites based upon the best information currently available to us. We believe our environmental accruals will be adequate to cover our portion of the environmental remedial costs at those sites where we have been designated a PRP, to the extent these expenses are probable and reasonably estimable.

HUMAN CAPITAL RESOURCES

Employee Profile

We employed 8,732 people, including approximately 8,600 full-time employees, as of June 30, 2022. Approximately 2,900 employees were located in the U.S. and 5,800 were located in other parts of the world, principally Germany, India and China. At June 30, 2022, approximately 2,500 of our employees were represented by labor unions. We consider our labor relations to be generally good.

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Diversity and Inclusion

We value diversity in all forms and are fully committed to inclusion in the workplace.

We continue to deploy our strategy and supporting infrastructure to elevate and advance diversity and inclusion (D&I) across our global organization and instill accountability for our performance. The enhanced D&I strategy focuses on four strategic pillars – awareness, acquisition, development and community. To drive action and accountability, each pillar is led by a senior Kennametal executive who is known as an accountability partner and is responsible for developing strategic initiatives in partnership with our People & Culture team.

Our Global Inclusion Council, which consists of cross-functional global leaders, champions the strategic initiatives and provides guidance and support. Four regional inclusion councils covering the Americas, Asia Pacific, EMEA and India execute the strategies and provide a global perspective.

As part of our awareness initiatives in 2022, we continued to enhance the D&I sections of the Company’s intranet and our external website. We expanded our Employee Resource Groups (ERGs) to foster communication and mentorship among diverse groups within the Company, such as the APAC Women’s Club, U.S. Women’s Mentoring, and U.S. Young Professionals groups. Our facilities around the world held events in March 2022 to celebrate International Women’s Day and recognize the achievements of female colleagues and participate in activities and discussions.

The tables below show the percentage of our employees who are women and the percentage of leadership roles at the Company held by women as of the dates indicated.

Number of Employees
	Female			Male
As of June 30	Number	Percent		Number	Percent		Total
2022	1,582	18.1	%	7,150	81.9	%	8,732
2021	1,485	17.2		7,150	82.8		8,635

Women in Leadership Roles (in percentages)
As of June 30	Board of Directors		Executive		Leadership		Senior Management
2022	22.2	%	42.9	%	27.3	%	12.4	%
2021	22.2		42.9		24.0		11.5

Health and Safety

Safety, including the health of our employees, is one of our core values and a priority across our global operations. We are committed to developing a world-class health and safety culture to target zero injuries and illnesses. Our health and safety strategy is designed to focus all employees on proactively identifying, mitigating and eliminating high-risk conditions that could result in a serious injury or fatality. The strategy consists of three pillars – fatality and serious injury (FSI) prevention, incident prevention, and leadership development and compliance culture.

Our recordable cases and total recordable incident rate (TRIR) decreased 14 percent to 0.32 in 2022 compared to 0.37 in 2021.

In fiscal 2022, we launched an enhanced electronic Environmental, Health and Safety (EHS) Management System, including an extensive list of apps to enable streamlined collection, tracking and dissemination of key data. The apps include incident management, internal corporate EHS verification/audit and self-assessment, action tracking, compliance calendar, inspection tool, job safety analysis, FSI risk assessment, industrial hygiene and sustainability data collection. There are additional apps planned for fiscal 2023 including management of change and document control.

As part of our commitment to continuous improvement of our EHS programs, Kennametal has focused on the creation of new company-wide Global EHS Standards to strengthen our compliance management across the organization. These standards include:

•FSI prevention;

•Contractor safety;

•Powered industrial vehicles;

•Molten metal personal protective equipment (PPE);

•Lock/tag/verify;

•Fall control;

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•Machine guarding and robotics safety; and

•Electrical safety.

Along with each standard, we have developed a self-assessment used to evaluate performance and develop action plans needed to meet tier levels aligning with the EHS roadmap. As discussed above, in 2022 we launched a new app as part of our EHS Management System to process electronic self-assessments, which capture each location’s level of compliance and create action plans.

Employee Development and Training

For the Company to grow, our employees must grow and develop continuously. We offer learning and development opportunities for all employees. In 2022, this included training for senior, mid-level and emerging leaders in role- and function-specific skills, such as project management, process improvement and sales effectiveness. We also offered our operational employees technical training through the Kennametal Knowledge Center.

Supporting our learning and development efforts is our OneTeam learning management system. Available in multiple languages, OneTeam offers more than 10,000 online courses in an easy-to-use interface. While this is not the only training delivery platform we use, our employees completed over 4,000 hours of training using this system in 2022.

We also continue to design and deliver development programs, focusing on the following:

•Individual development;

•Leadership development;

•Business- and operations-focused content;

•Sales-focused content; and

•Diversity and inclusion content.

Employee Engagement

As a follow up to the June 2021 employee engagement survey, targeted action plans were put in place focusing on one or two important team engagement goals. We conducted three short pulses during 2022 to check on progress. We then conducted another employee engagement survey that was launched in May 2022. With a response rate of 75 percent, the May 2022 survey indicated that we continue to make progress in employee engagement, with an increased average engagement score of 68, while our percent favorable increased to 63 percent.

AVAILABLE INFORMATION Our internet address is www.kennametal.com. On the SEC Filings page of our Website, which is accessible under the "About Us" tab, under Investor Relations and then the "Financials" tab, we post the following filings as soon as reasonably practicable after they are electronically filed with or furnished to the Securities and Exchange Commission (SEC): our annual reports on Form 10-K, our annual proxy statements, our annual conflict minerals disclosure and reports on Form SD, our annual reports on Form 11-K, our quarterly reports on Form 10-Q, our current reports on Form 8-K and any amendments to these reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act. The SEC Filings page of our Website also includes Forms 3, 4 and 5 filed pursuant to Section 16(a) of the Exchange Act. All filings posted on our SEC Filings page are available to be viewed on our Website free of charge. On the Corporate Governance page of our Website, which is accessible under the "About Us" tab, under Investor Relations, we post the following charters and guidelines: Audit Committee Charter, Compensation Committee Charter, Nominating/Corporate Governance Committee Charter, Kennametal Inc. Corporate Governance Guidelines and Kennametal Inc. Stock Ownership Guidelines. On the Ethics and Compliance page of our Website, which is under the "About Us" tab, we post our Code of Conduct. All charters and guidelines posted on our Website are available to be viewed free of charge. Information contained on our Website is not part of this Annual Report or our other filings with the SEC. Copies of this Annual Report and those items disclosed on the Corporate Governance and Ethics and Compliance pages of our Website are available without charge upon written request to: Investor Relations, Kennametal Inc., 525 William Penn Place, Suite 3300, Pittsburgh, Pennsylvania 15219-2706. The SEC maintains an internet site (www.sec.gov) that contains reports, proxy and information statements, and other information regarding issuers, including Kennametal that file electronically with the SEC.

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RISK FACTORS

This section describes material risks to our business that are currently known to us. Our business, financial condition or results of operations may be materially affected by a number of factors. Our management regularly monitors the risks inherent in our business, with input from our Enterprise Risk Management process. In addition to real time monitoring, we periodically conduct a formal enterprise-wide risk assessment to identify factors and circumstances that might present significant risk to the Company. Many of these risks are discussed throughout this report. The risks below, however, are not exhaustive. We operate in a rapidly changing environment. Other risks that we currently believe to be immaterial could become material in the future. We are also subject to legal and regulatory changes. New factors could emerge, and it is not possible to predict the outcome of all such risk factors on our business, financial condition or results of operations. The following discussion details the material risk factors and uncertainties that we believe could cause Kennametal’s actual results to differ materially from those projected in any forward-looking statements.

Global Operational Risks:

Russia’s invasion of Ukraine, the sanctions and actions taken against Russia and Russia's response to such actions could adversely affect our business. While our sales in Russia and Ukraine are not material to our overall business, the Russian invasion of Ukraine and the resulting sanctions and actions taken against Russia by the United States, the United Kingdom, the European Union, Switzerland and others have restricted our ability to sell certain products in Russia and Ukraine. It is also unclear what actions Russia may take in responding to these sanctions and actions. A significant escalation or expansion of the conflict beyond its current geographic, political and economic scope and scale could have a material adverse effect on our business, results of operations and financial condition and could exacerbate other risks. Such risks include, but are not limited to: an energy shortage in Europe as Russia has begun to limit natural gas and other supplies into Europe, an increase in the frequency and severity of the cybersecurity threats we and various third parties with whom we do business experience, unfavorable changes in exchange rates, further shortages, delivery delays and price inflation in a wide variety of raw materials and components, widespread reductions in customer demand and increased logistical challenges. In 2022, the Company ceased operations in Russia and subsequently decided to liquidate its legal entity in Russia.

Public health threats or outbreaks of communicable diseases could have a material adverse effect on our operations and financial results. We face risks related to public health threats or outbreaks of communicable diseases. A widespread healthcare crisis, such as an outbreak of a communicable disease could adversely affect the global economy and our business, our suppliers and our customers’ ability to conduct business for an indefinite period of time. For example, the ongoing global Coronavirus Disease 2019 (COVID-19) pandemic has negatively affected the global economy, disrupted financial markets and international trade and significantly affected global supply chains since its emergence in 2019, all of which have and may continue to have an effect on the Company and our end markets. The extent to which the COVID-19 pandemic may affect our business, operating results, financial condition, or liquidity in the future will depend on future developments, including the duration of the pandemic, the emergence of more contagious or virulent strains of the virus, travel restrictions, business and workforce disruptions, the availability, uptake and efficacy of vaccines, and the effectiveness of actions taken to contain and treat the disease. It is not possible to accurately predict with any degree of certainty the impact COVID-19 will have on our operations going forward and it could have a material adverse effect on our results of operations, financial condition, and liquidity. In particular, the continued spread of COVID-19 and any existing or future variants and efforts to contain them may:

•continue to affect customer demand across our end markets and geographical regions;

•affect our ability to conduct business in certain jurisdictions in which we operate where nationwide, regional or local lockdowns are currently implemented or may be implemented in the future;

•cause us to experience an increase in costs related to the emergency measures we have taken, delayed payments from customers and uncollectible accounts;

•cause delays and disruptions in our supply chain resulting in disruptions in the commencement dates of certain planned projects;

•affect the availability of qualified personnel;

•affect our ability to fund operations and maintain covenant compliance;

•affect our access to financial markets;

•affect our ability to accurately forecast; and

•cause other unpredictable events.

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Downturns in the business cycle could adversely affect our sales and profitability. Our business has historically been cyclical and subject to significant effect from economic downturns. Global economic downturns coupled with global financial and credit market disruptions have had a negative effect on our sales and profitability historically. These events could contribute to weak end markets, a sharp drop in demand for our products and services, higher energy costs and commodity prices, and higher costs of borrowing and/or diminished credit availability. Although we believe that the long-term prospects for our business remain positive, we are unable to predict the future course of industry variables or the strength and pace or sustainability of economic development.

Our international operations pose certain risks that may adversely affect sales and earnings. We have manufacturing operations and assets located outside of the U.S., including but not limited to those in Western Europe, Brazil, Canada, China, India, Israel, South Africa and Vietnam. We also sell our products to customers and distributors located outside of the U.S. During the year ended June 30, 2022, 60 percent of our consolidated sales were derived from non-U.S. markets. These international operations are subject to a number of special risks, in addition to the risks that affect our domestic operations, including currency exchange rate fluctuations, differing protections of intellectual property, trade barriers, exchange controls, regional economic uncertainty, overlap of different tax regimens, differing (and possibly more stringent) labor regulations, labor unrest, risk of governmental expropriation, domestic and foreign customs and tariffs, current and changing regulatory environments (including, but not limited to, the risks associated with the importation and exportation of products and raw materials), risk of failure of our foreign employees to comply with both U.S. and foreign laws, including antitrust laws, trade regulations and the Foreign Corrupt Practices Act, difficulty in obtaining distribution support, difficulty in staffing and managing widespread operations, differences in the availability and terms of financing, social and political instability and unrest and risks of increased taxes and/or adverse tax consequences. Also, in some foreign jurisdictions, we may be subject to laws limiting the right and ability of entities organized or operating therein to pay dividends or remit earnings to affiliated companies unless specified conditions are met. To the extent we are unable to effectively manage our international operations and these risks, our international sales may be adversely affected, we may be subject to additional and unanticipated costs, and we may be subject to litigation or regulatory action. As a consequence, our business, financial condition and results of operations could be seriously harmed.

Additional tax expense or exposures could affect our financial condition and results of operations. We are subject to various taxes in the U.S. and numerous other jurisdictions. Our future results of operations could be adversely affected by changes in our effective tax rate as a result of a change in the mix of earnings between U.S. and non-U.S. jurisdictions or among jurisdictions with differing statutory tax rates, changes in tax laws or treaties or in their application or interpretation, changes in generally accepted accounting principles, changes in the valuation of deferred tax assets and liabilities, changes in the amount of earnings indefinitely reinvested in certain non-U.S. jurisdictions, and the results of audits and examinations of previously filed tax returns and continuing assessments of our tax exposures.

Implementation of tariffs and changes to or uncertainties related to tariffs and trade agreements could adversely affect our business. The U.S. government has imposed tariffs on certain foreign goods from a variety of countries and regions, most notably China, that it perceives as engaging in unfair trade practices, and previously raised the possibility of imposing significant, additional tariff increases or expanding the tariffs to capture other types of goods from other countries. In response, many of these foreign governments have imposed retaliatory tariffs on goods that their countries import from the U.S. Uncertainties with respect to tariffs, trade agreements or any potential trade wars could negatively affect the global economy and could affect demand for our products and could have a material adverse effect on our financial condition, results of operations and cash flows. Changes in tariffs and trade barriers could also result in adverse changes in the cost and availability of our raw materials, and our ability to manufacture globally to support global sales which could lead to increased costs that we may not be able to effectively pass on to customers, each of which could materially adversely affect our operating margins, results of operations and cash flows.

Natural disasters or other global or regional catastrophic events could disrupt our operations and adversely affect results. Despite our concerted effort to minimize risk to our production capabilities and corporate information systems and to reduce the effect of unforeseen interruptions to us through business continuity planning, we still may be exposed to interruptions due to catastrophe, natural disaster, pandemic, terrorism or acts of war, which are beyond our control. Disruptions to our facilities or systems, or to those of our key suppliers, could also interrupt operational processes and adversely affect our ability to manufacture our products and provide services and support to our customers. As a result, our business, our results of operations, financial position, cash flows and stock price could be adversely affected.

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Changes in the regulatory environment, including environmental, health and safety regulations, could subject us to increased compliance and manufacturing costs, which could have a material adverse effect on our business.

Health and safety regulations. Certain of our products contain hard metals, including tungsten and cobalt. Hard metal dust is being studied for potential adverse health effects by organizations in several regions throughout the world, including the U.S., Europe and Japan. Future studies on the health effects of hard metals may result in our products being classified as hazardous to human health, which could lead to new regulations in countries in which we operate that may restrict or prohibit the use of, and/or exposure to, hard metal dust. New regulation of hard metals could require us to change our operations, and these changes could affect the quality of our products and materially increase our costs.

Environmental regulations. We are subject to various environmental laws, and any violation of, or our liabilities under, these laws could adversely affect us. Our operations necessitate the use and handling of hazardous materials and, as a result, we are subject to various federal, state, local and foreign laws, regulations and ordinances relating to the protection of the environment, including those governing discharges to air and water, handling and disposal practices for solid and hazardous wastes, the cleanup of contaminated sites and the maintenance of a safe workplace. These laws impose penalties, fines and other sanctions for noncompliance and liability for response costs, property damages and personal injury resulting from past and current spills, disposals or other releases of, or exposure to, hazardous materials. We could incur substantial costs as a result of noncompliance with or liability for cleanup or other costs or damages under these laws. We may be subject to more stringent environmental laws in the future. If more stringent environmental laws are enacted in the future, these laws could have a material adverse effect on our business, financial condition and results of operations.

Regulations affecting the mining and drilling industries, utilities industry or the use of fossil fuels. Some of our principal customers are mining and drilling companies that supply coal, oil, gas or other fuels as a source of energy to utility companies or for transportation. The operations of these mining and drilling companies are geographically diverse and are subject to or affected by a wide array of regulations in the jurisdictions where they operate. As a result of changes in regulations and laws relating to these industries, including, without limitation, actions to limit or reduce greenhouse gas emissions from the use of fossil fuels, our customers’ operations could be disrupted or curtailed by governmental authorities. The high cost of compliance with these regulations may also induce customers to discontinue or limit their operations and may discourage companies from developing new opportunities. As a result of these factors, demand for our mining- and drilling-related products could be substantially affected by regulations adversely affecting the mining and drilling industries or altering the fuel choices of utilities or in transportation. Our principal customers also include transportation original equipment manufacturers and tier suppliers engaged in the production of internal combustion engines. As a result of breakthrough technologies, changing consumer preferences or regulations designed to limit or reduce greenhouse gas emissions from the use of fossil fuels in transportation, demand for our products could be negatively affected.

Climate change and resulting legal or regulatory responses. There is growing concern that a gradual increase in global average temperatures may cause significant changes in weather patterns around the globe and an increase in the frequency and severity of natural disasters. Such climate change may impair our production capabilities, disrupt our supply chain or impact demand for our products. Growing concern over climate change also may result in additional legal or regulatory requirements designed to reduce or mitigate the effects of carbon dioxide and other greenhouse gas emissions on the environment. Increased energy or compliance costs and expenses as a result of increased legal or regulatory requirements may cause disruptions in, or an increase in the costs associated with, the manufacturing and distribution of our products. The impacts of climate change and legal or regulatory initiatives to address climate change could have a long-term adverse impact on our business and results of operations.

Product liability claims could have a material adverse effect on our business. The sale of metal cutting, mining, highway construction and other tools and related products as well as engineered components and advanced materials entails an inherent risk of product liability claims. We cannot give any assurances that the coverage limits of our insurance policies will be adequate or that our policies will cover any particular loss. Insurance can be expensive, and we may not always be able to purchase insurance on commercially acceptable terms, if at all. Claims brought against us that are not covered by insurance or that result in recoveries in excess of our insurance coverage could have a material adverse effect on our business, financial condition and results of operations.

Business Strategy Risks:

Our restructuring efforts may not have the intended effects. From time to time, we implement restructuring and other actions to reduce structural costs, improve operational efficiency and position the Company for long-term profitable growth. However, there is no assurance that these efforts, or that any other actions that we have taken or may take in the future, will be sufficient to counter any future economic or industry disruptions. We cannot provide assurance that we will not incur future restructuring charges or impairment charges, or that we will achieve all of the anticipated benefits from the restructuring actions we have taken or plan to take in the future.

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We may not be able to complete, manage or integrate acquisitions successfully. We may evaluate acquisition opportunities that have the potential to strengthen or expand our business. We can give no assurances, however, that any acquisition opportunities will arise or if they do, that they will be consummated, or that additional financing, if needed, will be available on satisfactory terms. In addition, acquisitions involve inherent risks that the businesses acquired will not perform in accordance with our expectations. We may not be able to achieve the synergies and other benefits we expect from the integration of acquisitions as successfully or rapidly as projected, if at all. Our failure to consummate an acquisition or effectively integrate newly acquired operations could prevent us from realizing our expected strategic growth and rate of return on an acquired business and could have a material and adverse effect on our results of operations and financial condition.

Impairment of goodwill and other intangible assets with indefinite lives could result in a negative effect on our financial condition and results of operations. At June 30, 2022, goodwill and other indefinite-lived intangible assets totaled $274.6 million, or 11 percent of our total assets. Goodwill results from acquisitions, representing the excess of cost over the fair value of the net tangible and other identifiable intangible assets we have acquired. We assess at least annually whether there has been impairment in the value of our goodwill and indefinite-lived intangible asset. If future operating performance at our Metal Cutting reporting unit were to fall significantly below current levels, we could record, under current applicable accounting rules, a non-cash impairment charge for goodwill. Any determination requiring the impairment of a significant portion of goodwill or other intangible assets would negatively affect our financial condition and results of operations.

Our continued success depends on our ability to protect and defend our intellectual property. Our future success depends in part upon our ability to protect and defend our intellectual property. We rely principally on nondisclosure agreements and other contractual arrangements and trade secret laws and, to a lesser extent, trademark and patent laws, to protect our intellectual property. However, these measures may be inadequate to protect our intellectual property from infringement by others or prevent misappropriation of our proprietary rights. In addition, the laws of some foreign countries do not protect proprietary rights to the same extent as do U.S. laws. If one of our patents is infringed upon by a third party, we may need to devote significant time and financial resources to defend our rights with respect to such patent. We may not be successful in defending our patents. Similarly, while we do not knowingly infringe on the patents, copyrights or other intellectual property rights of others, we may be required to spend a significant amount of time and financial resources to resolve any infringement claims against us, and we may not be successful in defending our position or negotiating alternative remedies. Our inability to protect our proprietary information and enforce or defend our intellectual property rights in proceedings initiated by us or brought against us could have a material adverse effect on our business, financial condition and results of operations.

If we are unable to retain our qualified management and employees, our business may be negatively affected. Our ability to provide high quality products and services depends in part on our ability to retain our skilled personnel in the areas of management, product engineering, servicing and sales. Competition for such personnel is intense, and our competitors can be expected to attempt to hire our management and skilled employees from time to time. In addition, our restructuring activities and strategies for growth have placed, and are expected to continue to place, increased demands on our management’s skills and resources. If we are unable to retain our management team and professional personnel, our customer relationships and level of technical expertise could be negatively affected, which may materially and adversely affect our business.

Any interruption of our workforce, including interruptions due to our restructuring initiatives, unionization efforts, changes in labor relations or shortages of appropriately skilled individuals could affect our business.

We operate in a highly competitive environment. Our domestic and foreign operations are subject to significant competitive pressures. We compete directly and indirectly with other manufacturers and suppliers of metal cutting tools, engineered components and advanced materials. Some of our competitors are larger than we are and may have greater access to financial resources or be less leveraged than us. In addition, the industry in which our products are used is a large, fragmented industry that is highly competitive.

Cybersecurity Risks:

Failure of, or a breach in security of, our information technology systems could adversely affect our business. We rely on information technology infrastructure (both on-premises and third-party managed) to achieve our business objectives. Despite security measures taken by us, our information technology systems may be vulnerable to computer viruses or attacks by hackers or breached due to employee error, supplier error, programming errors, malfeasance or other disruptions. Any disruption of our infrastructure could negatively affect our ability to record or process orders, manufacture and ship in a timely manner, or otherwise carry on business in the normal course. Any disruption could cause us to lose customers or revenue and could require us to incur significant expense to remediate. Increased global information technology threats, vulnerabilities, and a rise in sophisticated and targeted international computer crime pose a risk to the security of our systems and networks and the confidentiality, availability and integrity of our data. Any such breach in security could expose the Company and its employees, customers and suppliers to risks of misuse of confidential information, manipulation and destruction of data, production downtimes, litigation and operational disruptions, which in turn could adversely affect the Company's reputation, competitive position, business or results of operations.

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In addition, we could be subject to liability if confidential information relating to customers, employees, vendors and the extended supply chain or other parties is misappropriated from our computer system. We cannot assure that our ongoing focus on system improvements will be sufficient to prevent or limit the damage from any cyber attack or network disruption. We do not believe we have been the target of a material successful cyber attack.

Raw Material Risks:

Our future operating results may be affected by fluctuations in the prices and availability of raw materials. The raw materials we use for our products include tungsten ore concentrates and scrap carbide, which are used to make tungsten oxide, as well as compounds and secondary materials such as cobalt. We also purchase steel bars and forgings for making toolholders and other tool parts, as well as for producing mining tools, rotary cutting tools and accessories. A significant portion of our raw materials is supplied by sources outside of the U.S. The raw materials extraction industry is highly cyclical and at times pricing and supply can be volatile due to a number of factors beyond our control, including natural disasters, pandemics or public health issues, general economic and political conditions, labor costs, competition, import duties, tariffs and currency exchange rate fluctuations. This volatility can significantly affect our raw material costs. In an environment of increasing raw material prices, competitive conditions can affect how much of these price increases we can recover in the form of higher sales prices for our products. To the extent we are unable to pass on any raw material price increases to our customers, our profitability could be adversely affected. Furthermore, restrictions in the supply of tungsten, cobalt and other raw materials could adversely affect our operating results. If the prices for our raw materials increase or we are unable to secure adequate supplies of raw materials on favorable terms, our profitability could be impaired. If the prices for our raw materials decrease, we could face product pricing challenges.

Capital and Credit-Related Risks:

Restrictions contained in our revolving credit facility and other debt agreements may limit our ability to incur additional indebtedness. Our existing revolving credit facility and other debt agreements (each a “Debt Facility” and collectively, “Debt Facilities”) contain restrictive covenants, including restrictions on our ability to incur indebtedness. These restrictions could limit our ability to effectuate future acquisitions, limit our ability to pay dividends, limit our ability to make capital expenditures or restrict our financial flexibility. Our revolving credit facility contains covenants requiring us to achieve certain financial and operating results and maintain compliance with a specified financial ratio. Our ability to meet the financial covenant or requirements in our revolving credit facility may be affected by events beyond our control, and we may not be able to satisfy such covenants and requirements. A breach of these covenants or our inability to comply with the financial ratio, tests or other restrictions contained in a Debt Facility could result in an event of default under one or more of our other Debt Facilities. Upon the occurrence of an event of default under a Debt Facility, and the expiration of any grace periods, the lenders could elect to declare all amounts outstanding under one or more of our other Debt Facilities, together with accrued interest, to be immediately due and payable. If this were to occur, our assets may not be sufficient to fully repay the amounts due under our Debt Facilities or our other indebtedness.

ITEM 1B – UNRESOLVED STAFF COMMENTS

None.

ITEM 2 – PROPERTIES

Our principal executive offices are located at 525 William Penn Place, Suite 3300, Pittsburgh, Pennsylvania, 15219. We also have corporate offices in Neuhausen, Switzerland, Bangalore, India and Singapore. Our technology center is located at 1600 Technology Way, P.O. Box 231, Latrobe, Pennsylvania, 15650. A summary of our principal manufacturing facilities and other materially important properties is as follows:

			Primary Segment
Location	Owned/Leased	Principal Products	MC(1)	INF(2)
United States:
Gurley, Alabama	Owned	Metallurgical Powders		X
Huntsville, Alabama	Owned	Metallurgical Powders		X
Rogers, Arkansas	Owned/Leased	Carbide Products, Pelletizing Die Plates and Downhole Drilling Carbide Components		X
Goshen, Indiana	Leased	Powders; Welding Rods, Wires and Machines		X
New Albany, Indiana	Leased	High Wear Coating for Steel Parts		X
Greenfield, Massachusetts	Owned	High-Speed Steel Taps	X

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			Primary Segment
Location	Owned/Leased	Principal Products	MC(1)	INF(2)
Traverse City, Michigan	Owned	Wear Parts		X
Fallon, Nevada	Owned	Metallurgical Powders		X
Asheboro, North Carolina	Owned	Carbide Round Tools	X
Henderson, North Carolina	Owned	Metallurgical Powders		X
Roanoke Rapids, North Carolina	Owned	Metal Cutting Inserts	X
Cleveland, Ohio	Leased	Distribution	X
Orwell, Ohio	Owned	Metal Cutting Inserts	X
Solon, Ohio	Owned	Metal Cutting Toolholders	X
Whitehouse, Ohio	Owned/Leased	Metal Cutting Inserts and Round Tools	X
Bedford, Pennsylvania	Owned/Leased	Mining and Construction Tools, Wear Parts and Distribution		X
La Vergne, Tennessee	Owned	Metal Cutting Inserts	X
New Market, Virginia	Owned	Metal Cutting Toolholders	X
International:
La Paz, Bolivia	Owned	Tungsten Concentrate		X
Indaiatuba, Brazil	Leased	Metal Cutting Carbide Drills and Toolholders	X
Belleville, Canada	Owned	Casting Components, Coatings and Powder Metallurgy Components		X
Victoria, Canada	Owned	Wear Parts		X
Fengpu, China	Owned	Intermetallic Composite Ceramic Powders and Parts		X
Shanghai, China	Owned	Powders, Welding Rods and Wires and Cast Components		X
Shanghai, China	Leased	Distribution	X
Tianjin, China	Owned	Metal Cutting Inserts, Carbide Round Tools and Metallurgical Powders	X	X
Xuzhou, China	Leased	Mining Tools		X
Ebermannstadt, Germany	Owned	Metal Cutting Inserts	X
Essen, Germany	Owned/Leased	Metal Cutting Inserts	X
Königsee, Germany	Leased	Metal Cutting Carbide Drills	X
Mistelgau, Germany	Owned	Wear Parts and Metallurgical Powders		X
Nabburg, Germany	Owned	Metal Cutting Toolholders and Metal Cutting Round Tools, Drills and Mills	X
Schongau, Germany	Owned	Ceramic Vaporizer Boats		X
Vohenstrauss, Germany	Owned	Metal Cutting Carbide Drills	X
Bangalore, India	Owned	Metal Cutting Inserts, Toolholders and Wear Parts	X	X
Shlomi, Israel	Owned	High-Speed Steel and Carbide Round Tools	X
Zory, Poland	Leased	Metal Cutting Carbide Drills	X
Boksburg, South Africa	Leased	Mining and Construction Conicals		X
Barcelona, Spain	Leased	Metal Cutting Tools	X
Kingswinford, United Kingdom	Leased	Distribution	X
Newport, United Kingdom	Owned	Intermetallic Composite Powders		X
Hanoi, Vietnam	Owned/Leased	Carbide and PCD Round Tools	X

(1)Metal Cutting segment

(2)Infrastructure segment

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We also have a network of customer service centers located throughout North America, Europe, India, Asia Pacific and Latin America, a significant portion of which are leased. The majority of our research and development efforts are conducted at our technology center located in Latrobe, Pennsylvania, U.S., as well as at our facilities in Rogers, Arkansas, U.S.; Fürth, Germany and Bangalore, India.

We use all of our significant properties in the businesses of powder metallurgy, tools, tooling systems, engineered components and advanced materials. Our production capacity is adequate for our present needs. We believe that our properties have been adequately maintained, are generally in good condition and are suitable for our business as presently conducted.

ITEM 3 - LEGAL PROCEEDINGS

The information set forth in Part I, Item 1, of this Annual Report under the caption “Regulation” is incorporated by reference into this Item 3. From time to time, we are party to legal claims and proceedings that arise in the ordinary course of business, which may relate to our operations or assets, including real, tangible or intellectual property assets. Although we currently believe that the amount of ultimate liability, if any, we may face with respect to these actions will not materially affect our financial position, results of operations or liquidity, the ultimate outcome of any litigation is uncertain. Were an unfavorable outcome to occur or if protracted litigation were to ensue, the effect on us could be material.

ITEM 4 - MINE SAFETY DISCLOSURES

Not applicable.

EXECUTIVE OFFICERS OF THE REGISTRANT

Incorporated by reference into this Part I is the information set forth in Part III, Item 10 of this Annual Report under the caption “Information About Our Executive Officers.”

PART II

ITEM 5 - MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Our capital stock is traded on the New York Stock Exchange under the symbol "KMT." The number of shareholders of record as of July 29, 2022 was 1,333.

The information incorporated by reference into Part III, Item 12 of this Annual Report from our 2022 Proxy Statement under the heading “Equity Compensation Plans – Equity Compensation Plan Information” is hereby incorporated by reference into this Item 5.

PERFORMANCE GRAPH

The following graph compares cumulative total shareholder return on our capital stock with the cumulative total shareholder return on the common stock of the companies in the Standard & Poor’s Mid-Cap 400 Market Index (S&P Midcap 400), the Standard & Poor’s 400 Capital Goods (S&P 400 Capital Goods), the Standard & Poor's Global 1200 Industrials Index (S&P Global 1200 Industrials) and the peer group of companies determined by us (Peer Group) for the period from June 30, 2017 to June 30, 2022.

The Peer Group consists of the following companies: Altra Industrial Motion Corp.; Barnes Group Inc.; Crane Co.; Curtiss-Wright Corporation; Enovis Corp.; EnPro Industries, Inc.; Flowserve Corporation; Graco Inc.; ITT Inc.; Lincoln Electric Holdings, Inc.; Nordson Corporation; Simpson Manufacturing Co., Inc.; SPX Corporation; The Timken Company; Watts Water Technologies, Inc.; Woodward, Inc.; and Zurn Water Solutions Corporation.

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Assumes $100 Invested on July 1, 2017 and All Dividends Reinvested

	2017		2018		2019		2020		2021		2022
Kennametal	$	100.00	$	97.90	$	103.08	$	82.25	$	105.29	$	69.76
Peer Group Index	100.00		108.92		122.08		111.17		169.45		137.00
S&P Composite 1500 Index	100.00		114.50		125.16		132.77		188.70		167.91
S&P Midcap 400	100.00		113.50		115.05		107.35		164.49		140.41
S&P 400 Capital Goods	100.00		110.74		124.01		116.34		189.71		155.47
S&P Global 1200 Industrials	100.00		106.73		113.97		105.78		154.66		127.45

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ISSUER PURCHASES OF EQUITY SECURITIES

Period	Total Number of Shares Purchased(1)	Average Price Paid per Share		Total Number of  Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (2)
April 1 through April 30, 2022	142	$	28.21	—	$	149,700,000
May 1 through May 31, 2022	676,647	26.29		672,333	132,000,000
June 1 through June 30, 2022	639,385	27.09		638,580	114,700,000
Total	1,316,174	$	26.68	1,310,913

(1)During the current period, 1,786 shares were purchased on the open market on behalf of Kennametal to fund the Company’s dividend reinvestment program. Also, during the current period, employees delivered 3,475 shares of restricted stock to Kennametal, upon vesting, to satisfy tax withholding requirements.

(2)On July 27, 2021, the Board of Directors of the Company approved a share repurchase program authorizing the Company to purchase up to $200 million of the Company's common stock over a three-year period outside of the Company's dividend reinvestment program.

UNREGISTERED SALES OF EQUITY SECURITIES

None.

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ITEM 7 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in connection with the consolidated financial statements of Kennametal Inc. and the related financial statement notes included in Item 8 of this Annual Report. Unless otherwise specified, any reference to a “year” is to our fiscal year ended June 30. Additionally, when used in this Annual Report, unless the context requires otherwise, the terms “we,” “our” and “us” refer to Kennametal Inc. and its subsidiaries.

OVERVIEW Kennametal Inc. was founded based on a tungsten carbide technology breakthrough in 1938. The Company was incorporated in Pennsylvania in 1943 as a manufacturer of tungsten carbide metal cutting tooling, and was listed on the New York Stock Exchange (NYSE) in 1967. With more than 80 years of materials expertise, the Company is a global industrial technology leader, helping customers across the aerospace, earthworks, energy, general engineering and transportation industries manufacture with precision and efficiency. This expertise includes the development and application of tungsten carbides, ceramics, super-hard materials and solutions used in metal cutting and extreme wear applications to keep customers up and running longer against conditions such as corrosion and high temperatures.

Our standard and custom product offering spans metal cutting and wear applications including turning, milling, hole making, tooling systems and services, as well as specialized wear components and metallurgical powders. End users of the Company's metal cutting 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. The Company’s wear and metallurgical powders are used by producers and suppliers in equipment-intensive operations such as road construction, mining, quarrying, and oil and gas exploration, refining, production and supply.

Throughout Management's Discussion and Analysis of Financial Condition and Results of Operations (the MD&A), we refer to measures used by management to evaluate performance. We also refer to a number of financial measures that are not defined under accounting principles generally accepted in the United States of America (U.S. GAAP), including organic sales growth, constant currency regional sales growth (decline) and constant currency end market sales growth (decline). The explanation at the end of the MD&A provides the definition of these non-GAAP financial measures as well as details on their use and a reconciliation to the most directly comparable GAAP financial measures.

Our sales of $2,012.5 million for the year ended June 30, 2022 increased 9 percent year-over-year, reflecting 11 percent organic sales growth, partially offset by a 2 percent unfavorable currency exchange effect.

Operating income was $218.1 million in 2022 compared to $102.2 million in the prior year. The increase in operating income was due primarily to organic sales growth, restructuring and related charges of $4 million compared to $40 million in the prior year, favorable pricing in excess of raw material costs, lower incentive compensation costs, favorable product mix and approximately $14 million of incremental simplification/modernization benefits, partially offset by higher raw material costs of approximately $49 million, certain manufacturing inefficiencies including higher depreciation and approximately $25 million due to the restoration of salaries and other cost-control measures that were taken in the prior year. Operating margin in 2022 was 10.8 percent compared to 5.5 percent in the prior year. In 2022, the Metal Cutting and Infrastructure segments had operating margins of 9.9 percent and 12.6 percent, respectively.

In July 2021, the Board of Directors of the Company approved a share repurchase program authorizing the Company to purchase up to $200 million of the Company's common stock over a three-year period. During 2022, the Company repurchased a total of 2.7 million shares of common stock for $85 million.

On March 11, 2020, the World Health Organization declared the Coronavirus Disease 2019 (COVID-19) a pandemic bringing significant uncertainty in our end markets and operations. Since then, national, regional and local governments have taken steps at various times during the course of the continuing pandemic to limit the spread of the virus through stay-at-home, social distancing, and various other orders and guidelines. Although some jurisdictions have relaxed these measures, particularly as more and more people are vaccinated, others have not or have reinstated them at times when COVID-19 cases are surging or new variants emerge. The imposition of these measures, including the lockdowns in China, has created significant operating constraints on our business. Throughout the pandemic we have deployed safety protocols and processes to keep our employees safe while continuing to serve our customers, based on the guidance provided by the U.S. Centers for Disease Control and other relevant authorities. Late in the March quarter of 2022, our manufacturing and distribution operations in Shanghai were affected by COVID-19 lockdowns and have since reopened. The extent to which the ongoing COVID-19 pandemic may continue to affect our business, operating results or financial condition in the future will depend on a number of factors, including the duration and spread of the pandemic, the emergence and spread of more contagious or virulent strains of the virus, travel restrictions, business and workforce disruptions associated with the pandemic, including the availability of critical materials and resources, the success of preventative measures to contain or mitigate the spread of the virus and emerging variants, and the effectiveness of the distribution and acceptance of COVID-19 vaccines.

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Russia's invasion of Ukraine in February 2022 has resulted in the imposition of economic sanctions on Russia by the United States, Canada, the European Union and other countries. We are monitoring and evaluating the broader economic impact, including the sanctions imposed, the potential for additional sanctions and any responses from Russia, including limiting the supply of natural gas and other resources to Europe, which could directly affect the Company's operations, business partners, customers or supply chain. To date, the conflict between Russia and Ukraine has not had a material impact on the Company's financial condition or results of operations. During the March quarter of 2022, the Company ceased operations in Russia and subsequently decided to liquidate its legal entity in Russia. Total charges of $2.7 million were recorded in 2022 related to liquidation activities, the expected risk of loss related to accounts receivables and the impairment of inventory associated with the Company's Russian and Ukrainian operations.

The Company's cost structure benefited from its simplification/modernization initiative including the FY21 Restructuring Actions which have resulted in annualized savings of $71.0 million and pre-tax charges of $86.4 million inception to date. We recorded $4.2 million of pre-tax restructuring and related charges in 2022.

We reported earnings per diluted share (EPS) of $1.72 for 2022. EPS for the year was unfavorably affected by restructuring and related charges of $0.03 per share and charges related to Russian and Ukrainian operations of $0.03 per share. EPS in the prior year of $0.65 was unfavorably affected by restructuring and related charges of $0.40 per share, the effects from the early extinguishment of debt of $0.08 per share and the partial annuitization of the Canadian pension plans of $0.02 per share, partially offset by a discrete tax benefit of $0.11 per share.

We generated cash flow from operating activities of $181.4 million in 2022 compared to $235.7 million during the prior year. Capital expenditures were $96.9 million and $127.3 million during 2022 and 2021, respectively. During 2022, the Company returned a total of $152 million to the shareholders through $85.4 million in share repurchases under the three-year share repurchase program and $66.6 million in dividends. In 2021, the Company returned $66.7 million to shareholders through dividends.

For a discussion related to the results of operations, changes in financial condition and liquidity and capital resources for fiscal 2020 refer to Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in our fiscal 2021 Annual Report on Form 10-K, which was filed with the United States Securities and Exchange Commission on August 10, 2021.

RESULTS OF CONTINUING OPERATIONS

SALES Sales in 2022 were $2,012.5 million, a 9 percent increase from $1,841.4 million in 2021. The increase was primarily due to organic sales growth of 11 percent, partially offset by a 2 percent unfavorable currency exchange effect.

Our sales growth (decline) by end market and region are as follows:

	2022
(in percentages)	As Reported	Constant Currency
End market sales growth (decline):
Aerospace	21%	23%
Energy	19	20
General engineering	10	12
Earthworks	10	9
Transportation	(3)	(1)
Regional sales growth:
Americas	16%	16%
Europe, the Middle East and Africa (EMEA)	5	10
Asia Pacific	2	2

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GROSS PROFIT Gross profit increased $95.5 million to $648.0 million in 2022 from $552.5 million in 2021. The increase was primarily due to organic sales growth, favorable pricing in excess of raw material costs, favorable product mix, incremental simplification/modernization benefits of approximately $11 million and restructuring-related charges included in cost of goods sold of $6 million compared to $11 million in the prior year, partially offset by higher raw material costs of approximately $49 million, certain manufacturing inefficiencies including higher depreciation, and the restoration of salaries and other cost control measures that were taken in the prior year. The gross profit margin for 2022 was 32.2 percent compared to 30.0 percent in 2021.

OPERATING EXPENSE Operating expense in 2022 was $419.1 million, an increase of $11.8 million, or 2.9 percent, from $407.2 million in 2021. The increase was primarily due to the restoration of previously reduced salaries and other cost-control measures that were taken in the prior year, partially offset by lower incentive compensation costs in 2022.

We invested further in technology and innovation to continue delivering high quality products to our customers. Research and development expenses included in operating expense totaled $42.1 million and $39.5 million for 2022 and 2021, respectively.

RESTRUCTURING AND RELATED CHARGES AND ASSET IMPAIRMENT CHARGES

FY21 Restructuring Actions

In the September quarter of fiscal 2020, we announced the initiation of restructuring actions in Germany associated with our simplification/modernization initiative to reduce structural costs. Subsequently, we agreed with local employee representatives to downsize our Essen, Germany operations instead of the previously proposed closure. During the fourth quarter of fiscal 2020, we also announced the acceleration of our other structural cost reduction plans.

Total restructuring and related charges since inception of $86.4 million, compared to a target of approximately $85 million, were recorded for this program through June 30, 2022, consisting of: $78.1 million in Metal Cutting and $8.3 million in Infrastructure. Inception to date, we have achieved annualized savings of approximately $71 million. The FY21 Restructuring Actions are considered substantially complete.

Annual Restructuring Charges

During 2022, we recorded restructuring and related charges of $4.2 million, which consisted of $3.6 million in Metal Cutting and $0.6 million in Infrastructure. Of this amount, a net benefit from the reversal of restructuring charges totaled $1.2 million and restructuring-related charges of $5.5 million were included in cost of goods sold.

During 2021, we recorded restructuring and related charges of $40.4 million, which consisted of $35.6 million in Metal Cutting and $4.8 million in Infrastructure. Of this amount, restructuring charges totaled $29.6 million, of which $0.5 million was related to inventory and was recorded in cost of goods sold. Restructuring-related charges of $10.8 million were included in cost of goods sold.

GAIN ON DIVESTITURE During the year ended June 30, 2020, we completed the sale of certain assets of the non-core specialty alloys and metals business within the Infrastructure segment located in New Castle, Pennsylvania to Advanced Metallurgical Group N.V. for an aggregate price of $24.0 million.

The net book value of these assets at closing was $29.5 million, and the pre-tax loss on divestiture recognized during the year ended June 30, 2020 was $6.5 million. Transaction proceeds were primarily used for capital expenditures related to our simplification/modernization efforts. During the year ended June 30, 2022, we recorded a pre-tax gain of $1.0 million on the New Castle divestiture due to proceeds held in escrow until November 2021.

AMORTIZATION OF INTANGIBLES Amortization expense was $13.0 million and $14.0 million in 2022 and 2021, respectively.

INTEREST EXPENSE Interest expense in 2022 was $25.9 million, a decrease of $20.5 million, compared to $46.4 million in 2021. The decrease was primarily due to the early extinguishment of the $300.0 million of 3.875 percent Senior Unsecured Notes due 2022 (the 2022 Senior Notes) in the prior period, which includes a make-whole premium of $9.6 million and the acceleration of a loss in the amount of $2.6 million from other comprehensive loss related to forward starting interest rate contracts that were used to hedge the interest payments of the 2022 Senior Notes, as well as achieving a lower interest rate with the $300.0 million of 2.800 percent Senior Unsecured Notes due 2031 (the 2031 Senior Notes). See Note 11 "Long-Term Debt" in the consolidated financial statements for further details. The portion of our debt subject to variable rates of interest was 3 percent at June 30, 2022 and less than 1 percent at June 30, 2021. There were $19.0 million of borrowings outstanding under the Credit Agreement as of June 30, 2022.

OTHER INCOME, NET In 2022, other income, net was $14.5 million, an increase of $5.6 million from $8.9 million in 2021. The increase was primarily due to higher net periodic pension income and a foreign currency effect of $0.8 million in 2022.

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INCOME TAXES The effective tax rate for 2022 was 27.3 percent compared to 9.7 percent for 2021. The year-over-year change in the effective tax rate is primarily due to higher pretax income in the current year, non-recurring adjustments in the prior year including (i) a tax benefit from a provision to return adjustment related to our fiscal 2020 U.S. income tax return that included an election pursuant to Global Intangible Low-Taxed Income (GILTI) tax regulations issued during fiscal 2021, (ii) a tax benefit from the recognition of a stranded deferred tax balance in accumulated other comprehensive loss associated with the forward starting interest rate swaps that were terminated during fiscal 2021, and (iii) a tax charge related to enacted tax rate changes in the U.K., and geographical mix.

As of June 30, 2022, we have $25.9 million of U.S. net deferred tax assets. Within this amount is $46.2 million related to net operating loss, tax credit, and other carryforwards that can be used to offset future U.S. taxable income. Certain of these carryforwards will expire if they are not used within a specified timeframe. At this time, we consider it more likely than not that we will have sufficient U.S. taxable income in the future that will allow us to realize these net deferred tax assets. However, it is possible that some or all of these tax attributes could ultimately expire unused. Therefore, if we are unable to generate sufficient U.S. taxable income from our operations, a valuation allowance to reduce the U.S. net deferred tax assets may be required, which would materially increase income tax expense in the period in which the valuation allowance is recorded.

In 2012, we received an assessment from the Italian tax authority that denied certain tax deductions primarily related to our 2008 tax return. Attempts at negotiating a reasonable settlement with the tax authority were unsuccessful; and as a result, we decided to litigate the matter. While the outcome of the litigation is still pending, the tax authority served notice in the September quarter of fiscal 2020 requiring payment in the amount of €36.0 million. Accordingly, we requested and were granted a stay and are not currently required to make a payment in connection with this assessment. We continue to believe that the assessment is baseless and accordingly, no income tax liability has been recorded in connection with this assessment in any period. However, if the Italian tax authority were to be successful in litigation, settlement of the amount alleged by the Italian tax authority would result in an increase to income tax expense for as much as €36.6 million, or $38.0 million, of which penalties and interest is €21.8 million, or $22.7 million.

NET INCOME ATTRIBUTABLE TO KENNAMETAL Net income attributable to Kennametal was $144.6 million, or $1.72 of earnings per diluted share (EPS) in 2022, compared to $54.4 million, or EPS of $0.65 in 2021. The increase is a result of the factors previously discussed.

BUSINESS SEGMENT REVIEW We operate in two reportable operating segments consisting of Metal Cutting and Infrastructure. Corporate expenses that are not allocated are reported in Corporate. Segment determination is based upon internal organizational structure, the manner in which we organize segments for making operating decisions and assessing performance and the availability of separate financial results. See Note 21 of our consolidated financial statements set forth in Item 8 of this Annual Report.

Our sales and operating income by segment are as follows:

(in thousands)	2022		2021
Sales:
Metal Cutting	$	1,227,273	$	1,150,746
Infrastructure	785,183		690,695
Total sales	$	2,012,456	$	1,841,441
Operating income:
Metal Cutting	$	121,386	$	45,855
Infrastructure	98,871		59,461
Corporate	(2,117)		(3,148)
Total operating income	218,140		102,168
Interest expense	25,914		46,375
Other income, net	(14,507)		(8,867)
Income before income taxes	$	206,733	$	64,660

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METAL CUTTING

(in thousands)	2022			2021
Sales	$	1,227,273		$	1,150,746
Operating income	121,386			45,855
Operating margin	9.9		%	4.0		%

(in percentages)	2022
Organic sales growth	9%
Foreign currency exchange effect	(2)
Sales growth	7%

	2022
(in percentages)	As Reported	Constant Currency
End market sales growth (decline):
Aerospace	21%	23%
General engineering	10	13
Energy	5	6
Transportation	(3)	(1)
Regional sales growth (decline):
Americas	14%	14%
EMEA	4	10
Asia Pacific	(2)	(2)

In 2022, Metal Cutting sales of $1,227.3 million increased by $76.5 million, or 7 percent, from 2021. Aerospace end market sales increased in all regions as global travel levels and airplane manufacturing continue to recover, despite increasing supply chain issues on certain components. Energy sales increased in the Americas and EMEA as oil and gas drilling and power generation improved as countries develop alternative supply chains in response to the Russia sanctions, partially offset by declines in Asia Pacific and the impact of COVID-19 lockdowns. Sales in our general engineering end market increased in all regions, as manufacturing activity continues to recover from the COVID-19 pandemic and strong underlying demand continues, though inflation and supply chain challenges mitigated growth. Transportation end market sales increased in the Americas due to improved automotive manufacturing levels and continued strong underlying demand. The increase was more than offset by declines in EMEA and Asia Pacific driven by ongoing supply chain challenges accelerated by Russia's conflict in Ukraine and COVID-19 lockdowns in China. On a regional basis, the sales increase in the Americas was driven by increases in all end markets supported by the easing of COVID-19 restrictions and strong underlying demand. The sales increase in EMEA was driven by the general engineering, aerospace, and energy end markets, partially offset by a decline in the transportation end market. The sales decrease in Asia Pacific was driven by declines in the energy and transportation end markets, partially offset by an increase in sales in the general engineering and aerospace end markets.

In 2022, Metal Cutting operating income was $121.4 million, a $75.5 million increase from 2021. The primary drivers for the increase were organic sales growth, favorable pricing in excess of raw material costs, restructuring and related charges of $4 million compared to $34 million in the prior year, incremental simplification/modernization benefits of approximately $12 million, lower incentive compensation costs and favorable product mix. These benefits were partially offset by certain manufacturing inefficiencies including higher depreciation, the restoration of salaries and other cost-control measures of approximately $19 million that were taken in the prior year and higher raw material costs of approximately $9 million.

INFRASTRUCTURE

(in thousands)	2022			2021
Sales	$	785,183		$	690,695
Operating income	98,871			59,461
Operating margin	12.6		%	8.6		%

22

(in percentages)	2022
Organic sales growth	14%
Foreign currency exchange effect	—
Sales growth	14%

	2022
(in percentages)	As Reported	Constant Currency
End market sales growth:
Energy	27%	27%
Earthworks	10	9
General engineering	9	10
Regional sales growth:
Americas	18%	18%
Asia Pacific	9	7
EMEA	7	10

In 2022, Infrastructure sales of $785.2 million increased by $94.5 million, or 14 percent, from 2021. Energy end market sales increased as U.S. oil and gas contributed to the year-over-year increase and as land rig counts continue to increase. Earthworks end market sales increased primarily due to growth in underground and surface mining. General engineering end market sales increased driven primarily by strong demand across all regions. On a regional basis, the sales increase in the Americas was driven by growth primarily in the energy and earthworks end markets, and to a lesser extent the general engineering end market. The sales increase in EMEA was primarily driven by the general engineering and earthworks end market. The sales increase in Asia Pacific was driven by growth in all end markets.

In 2022, Infrastructure operating income was $98.9 million, a $39.4 million increase from 2021. The primary drivers for the increase were organic sales growth, favorable pricing in excess of raw material costs, favorable product mix and restructuring and related charges of $1 million compared to $5 million in the prior year. These benefits were partially offset by higher raw material costs of approximately $41 million, the restoration of salaries and other cost-control measures of approximately $5 million taken in the prior year and certain manufacturing inefficiencies including higher depreciation.

CORPORATE

(in thousands)	2022		2021
Corporate expense	$	(2,117)	$	(3,148)

In 2022, Corporate expense decreased $1.0 million from 2021.

LIQUIDITY AND CAPITAL RESOURCES Cash flow from operations is the primary source of funding for working capital requirements, reinvesting in our business through capital expenditures and returning value to shareholders through dividends and share repurchases. During the year ended June 30, 2022, cash flow provided by operating activities was $181.4 million.

Credit Agreement During fiscal 2022, we entered into the Sixth Amended and Restated Credit Agreement dated as of June 14, 2022 (the Credit Agreement). The Credit Agreement is a five-year, multi-currency, revolving credit facility, which we use to augment cash from operations and as an additional source of funds. The Credit Agreement provides for revolving credit loans of up to $700.0 million for working capital, capital expenditures and general corporate purposes. The Credit Agreement allows for borrowings in U.S. dollars, euros, Canadian dollars, pounds sterling and Japanese yen. Interest payable under the Credit Agreement is based upon the type of borrowing under the facility and may be (1) Euro Interbank Offered Rate (EURIBOR), Sterling Overnight Index Average (SONIA), Tokyo Interbank Offered Rate (TIBOR), Secured Overnight Financing Rate (SOFR), and Canadian Dollar Offered Rate (CDOR) for any borrowings in euros, pounds sterling, yen, U.S. dollars, and Canadian dollars, respectively, plus an applicable margin, (2) the greater of the prime rate or the Federal Funds effective rate plus an applicable margin, or (3) fixed as negotiated by us. The Credit Agreement matures in June 2027.

The Credit Agreement requires us to comply with various restrictive and affirmative covenants, including one financial covenant: a maximum leverage ratio where debt, net of domestic cash in excess of $25 million and sixty percent of the unrestricted cash held outside of the United States, must be less than or equal to 3.75 times trailing twelve months EBITDA, adjusted for certain non-cash expenses.

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As of June 30, 2022, we were in compliance with all covenants of the Credit Agreement and we had $19.0 million of borrowings outstanding and $681.0 million of availability. There were no borrowings outstanding as of June 30, 2021.

Borrowings on other lines of credit and notes payable were $2.2 million and $8.4 million at June 30, 2022 and 2021, respectively. The lines of credit represented short-term borrowings under credit lines with commercial banks in the various countries in which we operate. The availability of the credit lines, translated into U.S. dollars at June 30, 2022 exchange rates, totaled $60.7 million.

For the year ended June 30, 2022, average daily borrowings outstanding under the Credit Agreement were approximately $24.0 million. The weighted average interest rate on borrowings under the Credit Agreement was 1.4 percent for the year ended June 30, 2022.

Based upon our debt structure at June 30, 2022, 3 percent of our debt was exposed to variable rates of interest. At June 30, 2021, less than 1 percent was exposed to variable rates of interest.

We consider the majority of the $1.5 billion unremitted earnings of our non-U.S. subsidiaries to be permanently reinvested. With regard to these unremitted earnings, we have not, nor do we anticipate the need to, repatriate funds to the U.S. to satisfy domestic liquidity needs arising in the ordinary course of business, including liquidity needs associated with our domestic debt service requirements. Determination of the amount of unrecognized deferred tax liability related to indefinitely reinvested earnings is not practicable due to our legal entity structure and the complexity of U.S. and local tax laws. With regard to the small portion of unremitted earnings that are not indefinitely reinvested, we maintain a deferred tax liability for foreign withholding and U.S. state income taxes. The deferred tax liability associated with unremitted earnings of our non-U.S. subsidiaries not permanently reinvested is $7.2 million as of June 30, 2022.

At June 30, 2022, we had cash and cash equivalents of $85.6 million. Total Kennametal Shareholders’ equity was $1,252.6 million and total debt was $615.6 million. Our current senior credit ratings are considered investment grade. We believe that our current financial position, liquidity and credit ratings provide us access to the capital markets. We continue to closely monitor our liquidity position and the condition of the capital markets, as well as the counterparty risk of our credit providers.

Cash generated from operations is expected to meet our planned capital expenditures of approximately $100 million to $120 million and expected dividend payments of approximately $67 million in fiscal 2023. There can be no assurance, however, that we will generate cash from operations in line with our expectations, or that these projections will remain constant throughout fiscal 2023. If cash generated from operations is not sufficient to support these activities, we may be required to use existing cash and cash equivalents, reduce capital expenditures or borrow under the Credit Agreement. We believe that our cash and cash equivalents, cash flow from operations, and available borrowings are sufficient to meet both the short-term and long-term capital needs of the Company.

The following is a summary of our contractual obligations and other commercial commitments as of June 30, 2022:

Contractual Obligations (in thousands)		Total		2023		2024-2025		2026-2027		Thereafter
Long-term debt, including current maturities	(1)	$	758,578	$	22,275	$	44,550	$	44,550	$	647,203
Borrowings under Credit Agreement		19,000		19,000		—		—		—
Other lines of credit and notes payable		2,299		2,299		—		—		—
Pension benefit payments		(2)		53,208		109,269		108,945		(2)
Postretirement benefit payments		(2)		1,197		2,106		1,783		(2)
Operating leases		54,763		13,383		17,569		7,782		16,029
Purchase obligations	(3)	155,581		139,316		16,265		—		—
Unrecognized tax benefits	(4)	8,975		2,606		6,369		—		—
Total				$	253,284	$	196,128	$	163,060

(1)Long-term debt includes interest obligations of $158.9 million and excludes debt issuance costs of $4.2 million.

(2)Annual payments are expected to continue into the foreseeable future at the amounts noted in the table.

(3)Purchase obligations consist of purchase commitments for materials, supplies and machinery and equipment as part of the ordinary conduct of business. Purchase obligations with variable price provisions were determined assuming market prices as of June 30, 2022 remain constant.

(4)Unrecognized tax benefits are positions taken or expected to be taken on an income tax return that may result in additional payments to tax authorities. These amounts include interest of $1.4 million accrued related to such positions as of June 30, 2022. If a tax authority agrees with the tax position taken or expected to be taken or the applicable statute of limitations expires, then additional payments will not be necessary.

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Other Commercial Commitments (in thousands)	Total		2023		2024-2025		2026-2027		Thereafter
Standby letters of credit	$	5,735	$	4,483	$	1,252	$	—	$	—
Guarantees	12,774		9,191		143		10		3,430
Total	$	18,509	$	13,674	$	1,395	$	10	$	3,430

The standby letters of credit relate to insurance and other activities. The guarantees are non-debt guarantees with financial institutions, which are required primarily for security deposits, product performance guarantees and advances.

Share Repurchase Program In July 2021, the Board of Directors of the Company approved a share repurchase program authorizing the Company to purchase up to $200 million of the Company's common stock over a three-year period. During 2022, the Company repurchased 2.7 million shares of common stock for $85 million.

Dividends In fiscal 2022, the Board of Directors of the Company declared a dividend of $0.20 per share in each quarter for a total of $67 million in dividends returned to the shareholders.

Cash Flow Provided by Operating Activities

During 2022, cash flow provided by operating activities was $181.4 million, compared to $235.7 million in 2021. During 2022, cash flow provided by operating activities consisted of net income and non-cash items amounting to $310.2 million and changes in certain assets and liabilities netting to an outflow of $128.7 million. Contributing to the change in certain assets and liabilities were an increase in inventories of $127.4 million in part due to increased safety stock for potential supply chain disruptions and higher raw material costs, a decrease in accrued pension and postretirement benefits of $24.2 million and an increase in accounts receivable of $14.4 million, partially offset by an increase in accounts payable and accrued liabilities of $32.0 million and an increase in accrued income taxes of $10.2 million.

Cash flow provided by operating activities was $235.7 million for 2021. During 2021, cash flow provided by operating activities consisted of net income and non-cash items amounting to $210.0 million and changes in certain assets and liabilities netting to an inflow of $25.7 million. Contributing to the changes in certain assets and liabilities were an increase in accounts payable and accrued liabilities of $46.8 million and a decrease in inventories of $61.3 million, partially offset by an increase in accounts receivable of $53.3 million, a decrease in accrued pension and postretirement benefits of $31.6 million and a decrease in accrued income taxes of $18.3 million.

Cash Flow Used for Investing Activities

Cash flow used for investing activities was $94.9 million for 2022, a decrease of $28.0 million, compared to $123.0 million in 2021. During 2022, cash flow used for investing activities included capital expenditures, net of $96.0 million, which consisted primarily of equipment upgrades, partially offset by proceeds of $1.0 million from the New Castle divestiture.

Cash flow used for investing activities was $123.0 million for 2021. During 2021, cash flow used for investing activities included capital expenditures, net of $122.9 million, which consisted primarily of expenditures related to our simplification/modernization initiatives.

Cash Flow Used for Financing Activities

Cash flow used for financing activities was $150.7 million for 2022, compared to $574.2 million in 2021. During 2022, cash flow used for financing activities included $85.5 million in common shares repurchased, primarily under the share repurchase program, $66.6 million of cash dividends paid to shareholders, $6.9 million of the effect of employee benefit and stock plans and dividend reinvestment and $6.1 million of a decrease in notes payable, partially offset by $19.0 million from borrowings under the Credit Agreement.

Cash flow used for financing activities was $574.2 million for 2021. During 2021, cash flow used for financing activities included $500.0 million of a net decrease in the revolving and other lines of credit, the debt refinancing (see Note 11. "Long-Term Debt" to our consolidated financial statements set forth in Part II, Item 8 of this Annual Report on Form 10-K for further discussion) and $66.7 million of cash dividends paid to shareholders.

FINANCIAL CONDITION At June 30, 2022, total assets were $2,573.5 million, a decrease of $92.2 million from $2,665.8 million at June 30, 2021. Total liabilities decreased $15.3 million from $1,297.6 million at June 30, 2021 to $1,282.3 million at June 30, 2022.

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Working capital was $539.1 million at June 30, 2022, a decrease of $28.4 million from $567.4 million at June 30, 2021. The decrease in working capital was primarily driven by a decrease in cash of $68.5 million, an increase in accounts payable of $50.2 million, and an increase in revolving and other lines of credit and notes payable of $12.8 million. Partially offsetting these items were an increase in inventories of $94.5 million and a decrease in other current liabilities of $19.2 million. Currency exchange rate effects decreased working capital by a total of approximately $48.0 million, the effects of which are included in the aforementioned changes.

Property, plant and equipment, net decreased $53.1 million from $1,055.1 million at June 30, 2021 to $1,002.0 million at June 30, 2022, primarily due to depreciation of $118.7 million and an unfavorable currency exchange effect of approximately $36.3 million, partially offset by capital additions of $96.9 million.

At June 30, 2022, other assets were $546.8 million, a decrease of $59.0 million from $605.8 million at June 30, 2021. The primary drivers for the decrease were an unfavorable currency exchange effect, a decrease in long-term prepaid pension benefit of $22.8 million as well as amortization of $13.0 million.

Kennametal Shareholders’ equity was $1,252.6 million at June 30, 2022, a decrease of $77.0 million from $1,329.6 million in the prior year. The decrease was primarily due to the repurchase of capital stock of $85.5 million primarily under the share repurchase program that was initiated during fiscal 2022, cash dividends paid to Kennametal Shareholders of $66.6 million, and other comprehensive loss of $87.2 million, partially offset by net income attributable to Kennametal of $144.6 million.

EFFECTS OF INFLATION Rising costs, including the cost of certain raw materials, continue to affect our operations throughout the world. We experienced higher levels of inflation in 2022 and expect inflation will continue to be a challenge in fiscal 2023. We will strive to minimize the effects through cost containment, productivity improvements and price increases.

DISCUSSION OF CRITICAL ACCOUNTING POLICIES In preparing our consolidated financial statements in conformity with accounting principles generally accepted in the U.S., we make judgments and estimates about the amounts reflected in our consolidated financial statements. As part of our financial reporting process, our management collaborates to determine the necessary information on which to base our judgments and develops estimates used to prepare the consolidated financial statements. We use relevant information available at the end of each period to make these judgments and estimates. Our significant accounting policies are described in Note 2 of our consolidated financial statements, which are included in Item 8 of this Annual Report. We believe that the following discussion addresses our critical accounting policies.

Revenue Recognition The Company's contracts with customers are comprised of purchase orders, and for larger customers, may also include long-term agreements. We account for a contract when it has approval and commitment from both parties, the rights of the parties and payment terms are identified, the contract has commercial substance and collectability of consideration is probable. These contracts with customers typically relate to the manufacturing of products, which represent single performance obligations that are satisfied when control of the product passes to the customer. The Company considers the timing of right to payment, transfer of risk and rewards, transfer of title, transfer of physical possession and customer acceptance when determining when control transfers to the customer. As a result, revenue is generally recognized at a point in time - either upon shipment or delivery - based on the specific shipping terms in the contract. The shipping terms vary across all businesses and depend on the product, customary local commercial terms and the type of transportation. Shipping and handling activities are accounted for as activities to fulfill a promise to transfer a product to a customer and as such, costs incurred are recorded when the related revenue is recognized. Payment for products is due within a limited time period after shipment or delivery, typically within 30 to 90 calendar days of the respective invoice dates. The Company does not generally offer extended payment terms.

Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods. Amounts billed and due from our customers are classified as accounts receivable, less allowance for doubtful accounts on the consolidated balance sheets. Certain contracts with customers, primarily distributor customers, have an element of variable consideration that is estimated when revenue is recognized under the contract. Variable consideration primarily includes volume incentive rebates, which are based on achieving a certain level of purchases and other performance criteria as established by our distributor programs. These rebates are estimated based on projected sales to the customer and accrued as a reduction of net sales as they are earned. The majority of our products are consumed by our customers or end users in the manufacture of their products. Historically, we have experienced very low levels of returned products and do not consider the effect of returned products to be material. We have recorded an estimated returned goods allowance to provide for any potential returns.

26

We warrant that products sold are free from defects in material and workmanship under normal use and service when correctly installed, used and maintained. This warranty terminates 30 days after delivery of the product to the customer and does not apply to products that have been subjected to misuse, abuse, neglect or improper storage, handling or maintenance. Products may be returned to Kennametal only after inspection and approval by Kennametal and upon receipt by the customer of shipping instructions from Kennametal. We have included an estimated allowance for warranty returns in our returned goods allowance discussed above.

The Company records a contract asset when it has a right to payment from a customer that is conditioned on events that have occurred other than the passage of time. The Company also records a contract liability when customers prepay but the Company has not yet satisfied its performance obligation. The Company did not have any material remaining performance obligations, contract assets or liabilities as of June 30, 2022 and 2021.

The Company pays sales commissions related to certain contracts, which qualify as incremental costs of obtaining a contract. However, the Company applies the practical expedient that allows an entity to recognize incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that would have been recognized is one year or less. These costs are recorded within operating expense in our consolidated statements of income.

Stock-Based Compensation We recognize stock-based compensation expense for all stock options, restricted stock awards and restricted stock units over the period from the date of grant to the date when the award is no longer contingent on the employee providing additional service (substantive vesting period). Forfeitures are recorded as incurred. We utilize the Black-Scholes valuation method to establish the fair value of all stock option awards. 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.

Accounting for Contingencies We accrue for contingencies when it is probable that a liability or loss has been incurred and the amount can be reasonably estimated. Contingencies by their nature relate to uncertainties that require the exercise of judgment in both assessing whether or not a liability or loss has been incurred and estimating the amount of probable loss. The significant contingencies affecting our consolidated financial statements include environmental, health and safety matters and litigation.

Long-Lived Assets We evaluate the recoverability of property, plant and equipment, operating lease right-of-use (ROU) assets and intangible assets that are amortized whenever events or changes in circumstances indicate the carrying amount of such assets may not be fully recoverable. Changes in circumstances include technological advances, changes in our business model, capital structure, economic conditions or operating performance. Our evaluation is performed at the asset group level, based upon, among other things, our assumptions about the estimated future undiscounted cash flows these assets are expected to generate. When the sum of the undiscounted cash flows is less than the carrying value, we will recognize an impairment loss to the extent that carrying value exceeds fair value. We apply our best judgment when performing these evaluations to determine if a triggering event has occurred, the undiscounted cash flows used to assess recoverability and the fair value of the asset group.

Goodwill and Indefinite-Lived Intangible Assets We evaluate the recoverability of goodwill of 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 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 quarter. We apply our best judgment when assessing the reasonableness of the financial projections used to determine the fair value of each reporting unit. The discounted cash flow method was used to measure the fair value of our equity under the income approach. A terminal value utilizing a constant growth rate of cash flows was used to calculate a terminal value after the explicit projection period. The estimates and assumptions used in our calculations include revenue and gross margin growth rates, expected capital expenditures to determine projected cash flows, expected tax rates and an estimated discount rate to determine present value of expected cash flows. These estimates are based on historical experiences, our projections of future operating activity and our weighted average cost of capital (WACC). In order to determine the discount rate, the Company uses a market perspective WACC approach. The WACC is calculated incorporating weighted average returns on debt and equity from market participants. Therefore, changes in the market, which are beyond the control of the Company, may have an effect on future calculations of estimated fair value.

As of June 30, 2022, there is no goodwill allocated to the Infrastructure reporting unit. As of June 30, 2022, $264.2 million of goodwill was allocated to the Metal Cutting reporting unit. We completed an annual quantitative test of goodwill impairment and determined that the fair value of the reporting unit substantially exceeded the carrying value and, therefore, no impairment was recorded during 2022.

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Further, an indefinite-lived trademark intangible asset of $10.4 million in the Metal Cutting reporting unit had a fair value that exceeded its carrying value as of the date of the annual impairment test and, therefore, no impairment was recorded during 2022. To determine fair value, we assumed revenue growth rates inclusive of macroeconomic uncertainties and a residual period growth rate of 3 percent. We assumed a royalty rate of 1 percent, and the future period cash flows were discounted at 20 percent per annum.

Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions and factors. As a result, there can be no assurance that the estimates and assumptions made for purposes of the annual goodwill and indefinite-lived intangible impairment test will prove to be an accurate prediction of the future. Certain events or circumstances that could reasonably be expected to negatively affect the underlying key assumptions and ultimately affect the estimated fair values of the Metal Cutting reporting unit and of the indefinite-lived trademark may include such items as: (i) a decrease in expected future cash flows, specifically, a decrease in sales volume driven by a prolonged weakness in customer demand or other pressures, including those related to the COVID-19 pandemic and the broader economic effects from Russia's conflict in Ukraine, adversely affecting our long-term sales trends and (ii) inability to achieve the sales from our strategic growth initiatives.

Pension and Other Postretirement Benefits We sponsor pension and other postretirement benefit plans for certain employees and retirees. Accounting for the cost of these plans requires the estimation of the cost of the benefits to be provided well into the future and attributing that cost over either the expected work life of employees or over the average life of participants participating in these plans, depending on plan status and on participant population. This estimation requires our judgment about the discount rate used to determine these obligations, expected return on plan assets, rate of future compensation increases, rate of future health care costs, withdrawal and mortality rates and participant retirement age. Differences between our estimates and actual results may significantly affect the cost of our obligations under these plans.

In the valuation of our pension and other postretirement benefit liabilities, management utilizes various assumptions. Our discount rates are derived by identifying a theoretical settlement portfolio of high quality corporate bonds sufficient to provide for a plan’s projected benefit payments. This rate can fluctuate based on changes in the corporate bond yields. At June 30, 2022, a hypothetical 25 basis point increase or decrease in our discount rates would be immaterial to our pre-tax income.

The long-term rate of return on plan assets is estimated based on an evaluation of historical returns for each asset category held by the plans, coupled with the current and short-term mix of the investment portfolio. The historical returns are adjusted for expected future market and economic changes. This return will fluctuate based on actual market returns and other economic factors.

The rate of future health care cost increases is based on historical claims and enrollment information projected over the next fiscal year and adjusted for administrative charges. This rate is expected to decrease until 2027. At June 30, 2022, a hypothetical 1 percent increase or decrease in our health care cost trend rates would be immaterial to our pre-tax income.

Future compensation rates, withdrawal rates and participant retirement age are determined based on historical information. These assumptions are not expected to significantly change. Mortality rates are determined based on a review of published mortality tables.

We expect to contribute approximately $8 million and $1 million to our pension and other postretirement benefit plans, respectively, in 2023. Expected pension contributions in 2023 are primarily for international plans.

Allowance for Doubtful Accounts We record allowances for estimated losses resulting from the inability of our customers to make required payments. We assess the creditworthiness of our customers based on multiple sources of information and analyze additional factors such as our historical bad debt experience, industry concentrations of credit risk, current economic trends, changes in customer payment terms and forward-looking information. This assessment requires significant judgment. If the financial condition of our customers was to deteriorate, additional allowances may be required, resulting in future operating losses that are not included in the allowance for doubtful accounts at June 30, 2022.

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Inventories We use the last-in, first-out method for determining the cost of a significant portion of our U.S. inventories, and they are stated at the lower of cost or market. The cost of the remainder of our inventories is measured using approximate costs determined on the first-in, first-out basis or using the average cost method, and are stated at the lower of cost or net realizable value. When market conditions indicate an excess of carrying costs over market value, a lower of cost or net realizable value provision or a lower of cost or market provision, as applicable, is recorded. Once inventory is determined to be excess or obsolete, a new cost basis is established that is not subsequently written back up in future periods.

Income Taxes The Company’s provision for income taxes is calculated based on income and statutory tax rates in the various jurisdictions in which the Company operates and requires the use of management’s estimates and judgments. Management judgment is required in determining the Company’s worldwide provision for income taxes and recording the related assets and liabilities, including accruals for unrecognized tax benefits and assessing the need for valuation allowances on deferred tax assets. Realization of our deferred tax assets is primarily dependent on future taxable income, the timing and amount of which are uncertain. A valuation allowance is recognized if it is “more likely than not” that some or all of a deferred tax asset will not be realized. As of June 30, 2022, the deferred tax assets net of valuation allowances relate primarily to net operating loss and other carryforwards, pension benefits, accrued employee benefits and inventory. In the event that we were to determine that we would not be able to realize our deferred tax assets in the future, an increase in the valuation allowance would be required. In the event we were to determine that we are able to use our deferred tax assets for which a valuation allowance is recorded, a decrease in the valuation allowance would be required.

Swiss tax reform

Legislation was effectively enacted during the December quarter of fiscal 2020 when the Canton of Schaffhausen approved the Federal Act on Tax Reform and AHV Financing on October 8, 2019 (Swiss tax reform). Significant changes from Swiss tax reform include the abolishment of certain favorable tax regimes and the creation of a multi-year transitional period at both the federal and cantonal levels.

The transitional provisions of Swiss tax reform allow companies to utilize a combination of lower tax rates and tax basis adjustments to fair value, which are used for tax depreciation and amortization purposes resulting in deductions over the transitional period. To reflect the federal and cantonal transitional provisions, as they apply to us, we recorded a deferred tax asset of $14.5 million during the December quarter of fiscal 2020. We consider the deferred tax asset from Swiss tax reform to be an estimate based on our current interpretation of the legislation, which is subject to change based on further legislative guidance, review with the Swiss federal and cantonal authorities and modifications to the underlying valuation. We anticipate finalization of the deferred tax asset within the next six months.

NEW ACCOUNTING STANDARDS

The Company did not adopt any new accounting standards during 2022 that have had or are expected to have a material impact on the Company's consolidated financial statements or disclosures.

RECONCILIATION OF FINANCIAL MEASURES NOT DEFINED BY U.S. GAAP In accordance with SEC rules, we are providing descriptions of the non-GAAP financial measures included in this Annual Report and reconciliations to the most closely related GAAP financial measures. We believe that these measures provide useful perspective on underlying business trends and results and a supplemental measure of year-over-year results. The non-GAAP financial measures described below are used by management in making operating decisions, allocating financial resources and for business strategy purposes and may, therefore, also be useful to investors as they are a view of our business results through the eyes of management. These non-GAAP financial measures are not intended to be considered by the user in place of the related GAAP financial measure, but rather as supplemental information to our business results. These non-GAAP financial measures may not be the same as similar measures used by other companies due to possible differences in method and in the items or events being adjusted.

Organic sales growth Organic sales growth is a non-GAAP financial measure of sales growth (which is the most directly comparable GAAP measure) excluding the effects of acquisitions, divestitures, business days and foreign currency exchange from year-over-year comparisons. We believe this measure provides investors with a supplemental understanding of underlying sales trends by providing sales growth on a consistent basis. We report organic sales growth at the consolidated and segment levels.

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Constant currency end market sales growth (decline) Constant currency end market sales growth (decline) is a non-GAAP financial measure of sales growth (decline) (which is the most directly comparable GAAP measure) by end market excluding the effects of acquisitions, divestitures and foreign currency exchange from year-over-year comparisons. We note that, unlike organic sales growth, constant currency end market sales growth (decline) does not exclude the effect of business days. We believe this measure provides investors with a supplemental understanding of underlying end market trends by providing end market sales decline on a consistent basis. We report constant currency end market sales growth (decline) at the consolidated and segment levels.

Constant currency regional sales growth (decline) Constant currency regional sales growth (decline) is a non-GAAP financial measure of sales growth (decline) (which is the most directly comparable GAAP measure) by region excluding the effects of acquisitions, divestitures and foreign currency exchange from year-over-year comparisons. We note that, unlike organic sales growth (decline), constant currency regional sales growth (decline) does not exclude the effect of business days. We believe this measure provides investors with a supplemental understanding of underlying regional trends by providing regional sales growth (decline) on a consistent basis. We report constant currency regional sales growth (decline) at the consolidated and segment levels.

Reconciliations of organic sales growth to sales growth are as follows:

Year ended June 30, 2022	Metal Cutting	Infrastructure	Total
Organic sales growth	9%	14%	11%
Foreign currency exchange effect(6)	(2)	—	(2)
Sales growth	7%	14%	9%

Reconciliations of constant currency end market sales growth (decline) to end market sales growth (decline), are as follows:

Metal Cutting
Year ended June 30, 2022	General engineering	Transportation	Aerospace	Energy
Constant currency end market sales growth (decline)	13%	(1)%	23%	6%
Foreign currency exchange effect(6)	(3)	(2)	(2)	(1)
End market sales growth (decline)(7)	10%	(3)%	21%	5%

Infrastructure
Year ended June 30, 2022	Energy	Earthworks	General engineering
Constant currency end market sales growth	27%	9%	10%
Foreign currency exchange effect(6)	—	1	(1)
End market sales growth(7)	27%	10%	9%

Total
Year ended June 30, 2022	General engineering	Transportation	Aerospace	Energy	Earthworks
Constant currency end market sales growth (decline)	12%	(1)%	23%	20%	9%
Foreign currency exchange effect(6)	(2)	(2)	(2)	(1)	1
End market sales growth(7)	10%	(3)%	21%	19%	10%

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Reconciliations of constant currency regional sales growth (decline) to reported regional sales growth (decline), are as follows:

	Year Ended June 30, 2022
	Americas	EMEA	Asia Pacific
Metal Cutting
Constant currency regional sales growth (decline)	14%	10%	(2)%
Foreign currency exchange effect(6)	—	(6)	—
Regional sales growth (decline)(8)	14%	4%	(2)%
Infrastructure
Constant currency regional sales growth	18%	10%	7%
Foreign currency exchange effect(6)	—	(3)	2
Regional sales growth(8)	18%	7%	9%
Total
Constant currency regional sales growth	16%	10%	2%
Foreign currency exchange effect(6)	—	(5)	—
Regional sales growth(8)	16%	5%	2%

(6) Foreign currency exchange effect is calculated by dividing the difference between current period sales and current period sales at prior period foreign exchange rates by prior period sales.

(7) Aggregate sales for all end markets sum to the sales amount presented on Kennametal's consolidated financial statements.

(8) Aggregate sales for all regions sum to the sales amount presented on Kennametal's consolidated financial statements.

ITEM 7A - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

MARKET RISK We are exposed to certain market risks arising from transactions that are entered into in the normal course of business. As part of our financial risk management program, we use certain derivative financial instruments to manage these risks. We do not enter into derivative transactions for speculative purposes and, therefore, hold no derivative instruments for trading purposes. We may use derivative financial instruments to provide predictability to the effects of changes in foreign exchange rates on our consolidated results. Our objective in managing foreign exchange exposures with derivative instruments is to reduce volatility in cash flow, allowing us to focus more of our attention on business operations. With respect to interest rate management, we use forward-starting interest rate swaps to effectively hedge the variability in future benchmark interest payments attributable to changes in interest rates on forecasted issuances of fixed-rate debt. See Notes 2 and 17 of our consolidated financial statements set forth in Item 8 of this Annual Report.

We are exposed to counterparty credit risk for nonperformance of derivative contracts and, in the event of nonperformance, to market risk for changes in interest and currency exchange rates, as well as settlement risk. We manage exposure to counterparty credit risk through credit standards, diversification of counterparties and procedures to monitor concentrations of credit risk. We do not anticipate nonperformance by any of the counterparties.

Included below is a sensitivity analysis that is based upon a hypothetical 10 percent change on the effective interest rates under our current borrowing arrangements as of June 30, 2022. We compared our borrowing arrangements in effect at June 30, 2022 to the hypothetical interest rates in the sensitivity analysis to determine the effect on interest expense, pre-tax income and accumulated other comprehensive loss.

DEBT, REVOLVING AND OTHER LINES OF CREDIT AND NOTES PAYABLE At June 30, 2022 and 2021, we had $615.6 million and $600.5 million, respectively, of outstanding debt, including revolving and other lines of credit and notes payable. The effective interest rate was 3.7 percent as of June 30, 2022 and 2021. A hypothetical change of 10 percent in market interest rates from June 30, 2022 levels would be immaterial.

CURRENCY EXCHANGE RATE FLUCTUATIONS Currency exchange rate fluctuations decreased diluted earnings per share by $0.10 in 2022 and decreased diluted earnings per share by $0.03 in 2021. Currency exchange rate fluctuations may have a material effect on future earnings in the short term and long term.

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ITEM 8 - FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Management is responsible for establishing and maintaining adequate internal control over financial reporting. Management has conducted an assessment of the Company’s internal controls over financial reporting as of June 30, 2022 using the criteria in Internal Control – Integrated Framework (2013), issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Company’s internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Based on its assessment, management has concluded that the Company maintained effective internal control over financial reporting as of June 30, 2022, based on the criteria in Internal Control – Integrated Framework (2013) issued by the COSO. The effectiveness of the Company’s internal control over financial reporting as of June 30, 2022 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report which is included in this Annual Report on Form 10-K.

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Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of Kennametal Inc.

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated balance sheets of Kennametal Inc. and its subsidiaries (the “Company”) as of June 30, 2022 and 2021, and the related consolidated statements of income, of comprehensive income, of shareholders' equity and of cash flows for each of the three years in the period ended June 30, 2022, including the related notes and financial statement schedule listed in the index appearing under Item 15(a)(2) (collectively referred to as the “consolidated financial statements”). We also have audited the Company's internal control over financial reporting as of June 30, 2022, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of June 30, 2022 and 2021, and the results of its operations and its cash flows for each of the three years in the period ended June 30, 2022 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of June 30, 2022, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

Basis for Opinions

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

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Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Provision for Income Taxes

As described in Notes 2 and 13 to the consolidated financial statements, the Company recorded a provision for income taxes of $56.5 million for the year ended June 30, 2022. The Company’s provision for income taxes is calculated based on income and statutory tax rates in the various jurisdictions in which the Company operates and requires the use of management’s estimates and judgments. Management judgment is required in determining the Company’s worldwide provision for income taxes and recording the related assets and liabilities, including accruals for unrecognized tax benefits and assessing the need for valuation allowances on deferred tax assets.

The principal considerations for our determination that performing procedures relating to the provision for income taxes is a critical audit matter are (i) a high degree of auditor effort in performing procedures and evaluating management’s provision for income taxes and the related assets and liabilities, including the accruals for unrecognized tax benefits, as well as management’s assessment of the need for valuation allowances on deferred tax assets and (ii) the audit effort involved the use of professionals with specialized skill and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the provision for income taxes, including controls over accruals for unrecognized tax benefits and valuation allowances on deferred tax assets. These procedures also included, among others (i) testing the accuracy of the provision for income taxes, which included the effective tax rate reconciliation and permanent and temporary differences, (ii) evaluating whether the data utilized in the calculations of the provision for income taxes and deferred tax assets and liabilities were appropriate and consistent with evidence obtained in other areas of the audit, (iii) evaluating the identification of accruals for unrecognized tax benefits and the reasonableness of the more likely than not determination in consideration of court decisions, legislative actions, statutes of limitations, and developments in tax examinations by jurisdiction, and (iv) evaluating the reasonableness of management’s assessment of the realizability of its deferred tax assets based on expectations of the ability to utilize its tax attributes through testing of historical and estimated future taxable income. Professionals with specialized skill and knowledge were used to assist in evaluating the reasonableness of management’s judgments and estimates related to the application of foreign and domestic tax laws and regulations.

/s/ PricewaterhouseCoopers LLP

Pittsburgh, Pennsylvania

August 10, 2022

We have served as the Company’s auditor since 2002.

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CONSOLIDATED STATEMENTS OF INCOME

Year ended June 30 (in thousands, except per share data)	2022		2021		2020
Sales	$	2,012,456	$	1,841,441	$	1,885,305
Cost of goods sold	1,364,479		1,288,963		1,355,834
Gross profit	647,977		552,478		529,471
Operating expense	419,093		407,246		388,436
Restructuring (benefits) charges and asset impairment charges (Note 16)	(1,243)		29,061		68,228
Goodwill and other intangible assets impairments (Note 8)	—		—		30,227
(Gain) loss on divestiture (Note 4)	(1,001)		—		6,517
Amortization of intangibles	12,988		14,003		13,811
Operating income	218,140		102,168		22,252
Interest expense	25,914		46,375		35,154
Other income, net	(14,507)		(8,867)		(14,862)
Income before income taxes	206,733		64,660		1,960
Provision for income taxes (Note 13)	56,532		6,243		7,007
Net income (loss)	150,201		58,417		(5,047)
Less: Net income attributable to noncontrolling interests	5,578		3,983		614
Net income (loss) attributable to Kennametal	$	144,623	$	54,434	$	(5,661)
PER SHARE DATA ATTRIBUTABLE TO KENNAMETAL SHAREHOLDERS
Basic earnings (loss) per share	$	1.74	$	0.65	$	(0.07)
Diluted earnings (loss) per share	$	1.72	$	0.65	$	(0.07)
Basic weighted average shares outstanding	83,252		83,602		83,047
Diluted weighted average shares outstanding	83,944		84,333		83,047

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Year ended June 30 (in thousands)	2022		2021		2020
Net income (loss)	$	150,201	$	58,417	$	(5,047)
Other comprehensive (loss) income, net of tax
Unrealized gain (loss) on derivatives designated and qualified as cash flow hedges	—		9,255		(582)
Reclassification of unrealized (gain) loss on expired derivatives designated and qualified as cash flow hedges	(770)		(401)		679
Unrecognized net pension and other postretirement benefit plans (loss) gain	(4,163)		9,107		(18,299)
Reclassification of net pension and other postretirement benefit plans loss	8,929		10,355		7,935
Foreign currency translation adjustments	(91,185)		60,528		(35,891)
Total other comprehensive (loss) income, net of tax	(87,189)		88,844		(46,158)
Total comprehensive income (loss)	63,012		147,261		(51,205)
Less: comprehensive income (loss) attributable to noncontrolling interests	2,013		5,910		(1,846)
Comprehensive income (loss) attributable to Kennametal Shareholders	$	60,999	$	141,351	$	(49,359)

The accompanying notes are an integral part of these consolidated financial statements.

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CONSOLIDATED BALANCE SHEETS

As of June 30 (in thousands, except per share data)	2022		2021
ASSETS
Current assets:
Cash and cash equivalents	$	85,586	$	154,047
Accounts receivable, less allowance for doubtful accounts of $9,422 and $9,734 respectively	295,346		302,945
Inventories (Note 7)	570,836		476,345
Other current assets	72,940		71,470
Total current assets	1,024,708		1,004,807
Property, plant and equipment:
Land and buildings	410,039		413,865
Machinery and equipment	1,904,872		1,959,176
Less accumulated depreciation	(1,312,870)		(1,317,906)
Property, plant and equipment, net	1,002,041		1,055,135
Other assets:
Goodwill (Note 8)	264,230		277,615
Other intangible assets, less accumulated amortization of $160,699 and $153,972, respectively (Note 8)	105,725		120,041
Operating lease right-of-use assets (Note 9)	47,206		50,341
Deferred income taxes (Note 13)	54,602		58,742
Long-term prepaid pension benefit (Note 14)	66,433		89,233
Other	8,579		9,847
Total other assets	546,775		605,819
Total assets	$	2,573,524	$	2,665,761
LIABILITIES
Current liabilities:
Revolving and other lines of credit and notes payable (Note 12)	$	21,186	$	8,365
Current operating lease liabilities (Note 9)	12,387		14,220
Accounts payable	227,887		177,659
Accrued income taxes	29,476		18,059
Accrued vacation pay	15,340		17,100
Accrued payroll	40,970		44,389
Other current liabilities (Note 10)	138,403		157,602
Total current liabilities	485,649		437,394
Long-term debt, less current maturities (Note 11)	594,364		592,108
Operating lease liabilities (Note 9)	35,342		36,800
Deferred income taxes (Note 13)	32,185		23,710
Accrued postretirement benefits (Note 14)	7,924		10,131
Accrued pension benefits (Note 14)	105,071		160,936
Accrued income taxes	6,369		4,246
Other liabilities	15,373		32,231
Total liabilities	1,282,277		1,297,556
Commitments and contingencies (Note 20)
EQUITY
Kennametal Shareholders’ Equity:
Preferred stock, no par value; 5,000 shares authorized; none issued	—		—
Capital stock, $1.25 par value; 120,000 shares authorized; 81,337 and 83,614 shares issued, respectively	101,671		104,518
Additional paid-in capital	494,202		562,820
Retained earnings	1,070,655		992,597
Accumulated other comprehensive loss (Note 15)	(413,951)		(330,327)
Total Kennametal Shareholders’ Equity	1,252,577		1,329,608
Noncontrolling interests	38,670		38,597
Total equity	1,291,247		1,368,205
Total liabilities and equity	$	2,573,524	$	2,665,761

The accompanying notes are an integral part of these consolidated financial statements.

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CONSOLIDATED STATEMENTS OF CASH FLOWS

Year ended June 30 (in thousands)	2022		2021		2020
OPERATING ACTIVITIES
Net income (loss)	$	150,201	$	58,417	$	(5,047)
Adjustments to reconcile to cash from operations:
Depreciation	118,690		112,485		106,049
Amortization	12,988		14,003		13,811
Stock-based compensation expense	20,985		24,799		16,048
Restructuring (benefits) charges and asset impairment charges (Notes 8 and 16)	(753)		5,664		34,175
Deferred income tax provision (benefit)	11,292		(21,189)		(23,899)
(Gain) loss on divestiture (Note 4)	(1,001)		—		6,517
Debt refinancing charge (Note 11)	—		9,071		—
Other	(2,243)		6,754		2,613
Changes in certain assets and liabilities:
Accounts receivable	(14,432)		(53,324)		128,715
Inventories	(127,409)		61,270		28,185
Accounts payable and accrued liabilities	31,997		46,775		(46,315)
Accrued income taxes	10,238		(18,273)		(8,645)
Accrued pension and postretirement benefits	(24,216)		(31,585)		(20,022)
Other	(4,893)		20,815		(8,447)
Net cash flow provided by operating activities	181,444		235,682		223,738
INVESTING ACTIVITIES
Purchases of property, plant and equipment	(96,924)		(127,302)		(244,151)
Disposals of property, plant and equipment	924		4,373		2,622
Proceeds from divestiture (Note 4)	1,001		—		23,950
Other	60		(47)		(757)
Net cash flow used for investing activities	(94,939)		(122,976)		(218,336)
FINANCING ACTIVITIES
Net (decrease) increase in notes payable	(6,067)		605		(175)
Net increase (decrease) in revolving and other lines of credit	19,000		(500,000)		500,364
Term debt borrowings	—		297,867		—
Term debt repayments	—		(300,000)		—
Make-whole premium on early extinguishment of debt (Note 11)	—		(9,639)		—
Settlement of interest rate swap agreement (Note 6)	—		10,198		—
Purchase of capital stock	(85,542)		(197)		(209)
The effect of employee benefit and stock plans and dividend reinvestment	(6,909)		821		(5,464)
Cash dividends paid to Shareholders	(66,565)		(66,735)		(66,303)
Other	(4,652)		(7,165)		(2,762)
Net cash flow (used for) provided by financing activities	(150,735)		(574,245)		425,451
Effect of exchange rate changes on cash and cash equivalents	(4,231)		8,902		(6,184)
CASH AND CASH EQUIVALENTS
Net (decrease) increase in cash and cash equivalents	(68,461)		(452,637)		424,669
Cash and cash equivalents, beginning of year	154,047		606,684		182,015
Cash and cash equivalents, end of year	$	85,586	$	154,047	$	606,684

The accompanying notes are an integral part of these consolidated financial statements.

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CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

	2022			2021			2020
Year ended June 30 (in thousands)	Shares	Amount		Shares	Amount		Shares	Amount
CAPITAL STOCK
Balance at beginning of year	83,614	$	104,518	82,923	$	103,654	82,421	$	103,026
Dividend reinvestment	6	7		6	7		7	9
Capital stock issued under employee benefit and stock plans	444	554		691	864		502	628
Purchase of capital stock	(2,727)	(3,408)		(6)	(7)		(7)	(9)
Balance at end of year	81,337	101,671		83,614	104,518		82,923	103,654
ADDITIONAL PAID-IN CAPITAL
Balance at beginning of year		562,820			538,575			528,827
Dividend reinvestment		182			191			201
Capital stock issued under employee benefit and stock plans		13,334			24,556			9,748
Purchase of noncontrolling interests		—			(311)			—
Purchase of capital stock		(82,134)			(191)			(201)
Balance at end of year		494,202			562,820			538,575
RETAINED EARNINGS
Balance at beginning of year		992,597			1,004,898			1,076,862
Net income (loss) attributable to Kennametal		144,623			54,434			(5,661)
Cash dividends ($0.80 per share in 2022, 2021 and 2020, respectively)		(66,565)			(66,735)			(66,303)
Balance at end of year		1,070,655			992,597			1,004,898
ACCUMULATED OTHER COMPREHENSIVE LOSS
Balance at beginning of year		(330,327)			(417,242)			(373,543)
Unrealized gain (loss) on derivatives designated and qualified as cash flow hedges		—			9,255			(582)
Reclassification of unrealized (gain) loss on expired derivatives designated and qualified as cash flow hedges		(770)			(401)			679
Unrecognized net pension and other postretirement benefit plans (loss) gain		(4,163)			9,107			(18,299)
Reclassification of net pension and other postretirement benefit plans loss		8,929			10,355			7,935
Foreign currency translation adjustments		(87,620)			58,599			(33,432)
Other comprehensive (loss) income, net of tax		(83,624)			86,915			(43,699)
Balance at end of year		(413,951)			(330,327)			(417,242)
NONCONTROLLING INTERESTS
Balance at beginning of year		38,597			38,903			39,532
Net income		5,578			3,983			614
Other comprehensive (loss) income, net of tax		(3,565)			1,927			(2,459)
Purchase of noncontrolling interests		—			(1,319)			—
Additions to noncontrolling interests		—			—			1,527
Cash dividends		(1,940)			(4,897)			(311)
Balance at end of year		38,670			38,597			38,903
Total equity, June 30		$	1,291,247		$	1,368,205		$	1,268,788

The accompanying notes are an integral part of these consolidated financial statements.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 — NATURE OF OPERATIONS

With more than 80 years of materials expertise, the Company is a global industrial technology leader, helping customers across the aerospace, earthworks, energy, general engineering and transportation end markets manufacture with precision and efficiency. This expertise includes the development and application of tungsten carbides, ceramics, super-hard materials and solutions used in metal cutting and extreme wear applications to keep customers up and running longer against conditions such as corrosion and high temperatures.

Our standard and custom product offering spans metal cutting and wear applications including turning, milling, hole making, tooling systems and services, as well as specialized wear components and metallurgical powders. End users of the Company's metal cutting 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. The Company’s wear and metallurgical powders are used by producers and suppliers in equipment-intensive operations such as road construction, mining, quarrying, and oil and gas exploration, refining, production and supply.

Unless otherwise specified, any reference to a “year” is to a fiscal year ended June 30. When used in this Annual Report on Form 10-K, unless the context requires otherwise, the terms “we,” “our” and “us” refer to Kennametal Inc. and its subsidiaries.

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The summary of our significant accounting policies is presented below to assist in evaluating our consolidated financial statements.

PRINCIPLES OF CONSOLIDATION The consolidated financial statements include our accounts and those of our subsidiaries in which we have a controlling interest. All intercompany balances and transactions are eliminated.

USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS In preparing our consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP), we make judgments and estimates about the amounts reflected in our consolidated financial statements. As part of our financial reporting process, our management collaborates to determine the necessary information on which to base our judgments and develop estimates used to prepare the consolidated financial statements. We use historical experience and available information to make these judgments and estimates. Actual amounts could differ from the estimates reflected in our consolidated financial statements.

CASH AND CASH EQUIVALENTS Cash investments having original maturities of three months or less are considered cash equivalents. Cash equivalents principally consist of investments in money market funds and bank deposits at June 30, 2022.

ACCOUNTS RECEIVABLE We market our products to a diverse customer base throughout the world. Trade credit is extended based upon periodically updated evaluations of each customer’s ability to satisfy its obligations. We record allowances for estimated losses resulting from the inability of our customers to make required payments. We assess the creditworthiness of our customers based on multiple sources of information and analyze additional factors such as our historical bad debt experience, industry concentrations of credit risk, current economic trends, changes in customer payment terms and forward-looking information.

INVENTORIES We use the last-in, first-out (LIFO) method for determining the cost of a significant portion of our United States (U.S.) inventories, and they are stated at the lower of cost or market. The cost of the remainder of our inventories is measured using approximate costs determined on the first-in, first-out basis or using the average cost method, and are stated at the lower of cost or net realizable value. When market conditions indicate an excess of carrying costs over market value, a lower of cost or net realizable value provision or a lower of cost or market provision, as applicable, is recorded. Once inventory is determined to be excess or obsolete, a new cost basis is established that is not subsequently written back up in future periods.

PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are carried at cost. Major improvements are capitalized, while maintenance and repairs are expensed as incurred. Retirements and disposals are removed from cost and accumulated depreciation accounts, with the gain or loss reflected in operating income. Interest related to the construction of major facilities is capitalized as part of the construction costs and is depreciated over the facilities' estimated useful lives.

Depreciation for financial reporting purposes is computed using the straight-line method over the following estimated useful lives: building and improvements over 15-40 years; machinery and equipment over 4-15 years; furniture and fixtures over 5-10 years and computer hardware and software over 3-5 years.

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LONG-LIVED ASSETS We evaluate the recoverability of property, plant and equipment, operating lease right-of-use (ROU) assets and intangible assets that are amortized, whenever events or changes in circumstances indicate the carrying amount of any such assets may not be fully recoverable. Changes in circumstances include technological advances, changes in our business model, capital structure, economic conditions or operating performance. Our evaluation is performed at the asset group level, based upon, among other things, our assumptions about the estimated future undiscounted cash flows these assets are expected to generate. When the sum of the undiscounted cash flows is less than the carrying value, we will recognize an impairment loss to the extent that carrying value exceeds fair value. We apply our best judgment when performing these evaluations to determine if a triggering event has occurred, the undiscounted cash flows used to assess recoverability and the fair value of the asset group.

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 quarter. As of June 30, 2022, only the Metal Cutting reporting unit has goodwill recorded. We evaluate the recoverability of goodwill for the reporting unit by comparing the fair value of the reporting unit with its carrying value. The fair value of our reporting unit is 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 the 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.

The majority of our intangible assets with definite lives are amortized on a straight-line basis, while certain customer-related intangible assets are amortized on an accelerated method. Identifiable assets with finite lives are reviewed for impairment when events or circumstances indicate that the carrying value may not be recoverable.

PENSION AND OTHER POSTRETIREMENT BENEFITS We sponsor these types of benefit plans for certain employees and retirees. Accounting for the cost of these plans requires the estimation of the cost of the benefits to be provided well into the future and attributing that cost over either the expected work life of employees or over the average life of participants participating in these plans, depending on plan status and on participant population. This estimation requires our judgment about the discount rate used to determine these obligations, expected return on plan assets, rate of future compensation increases, rate of future health care costs, withdrawal and mortality rates and participant retirement age. Differences between our estimates and actual results may significantly affect the cost of our obligations under these plans.

In the valuation of our pension and other postretirement benefit liabilities, management utilizes various assumptions. Discount rates are derived by identifying a theoretical settlement portfolio of high quality corporate bonds sufficient to provide for a plan’s projected benefit payments. This rate can fluctuate based on changes in the corporate bond yields.

The long-term rate of return on plan assets is estimated based on an evaluation of historical returns for each asset category held by the plans, coupled with the current and short-term mix of the investment portfolio. The historical returns are adjusted for expected future market and economic changes. This return will fluctuate based on actual market returns and other economic factors.

The rate of future health care costs is based on historical claims and enrollment information projected over the next year and adjusted for administrative charges. This rate is expected to decrease until 2027.

Future compensation rates, withdrawal rates and participant retirement age are determined based on historical information. These assumptions are not expected to significantly change. Mortality rates are determined based on a review of published mortality tables.

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.

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The following tables provide the computation of diluted shares outstanding:

(in thousands)	2022	2021
Weighted-average shares outstanding during period	83,252	83,602
Add: Unexercised stock options and unvested restricted stock units	692	731
Number of shares on which diluted earnings per share is calculated	83,944	84,333
Unexercised stock options with an exercise price greater than the average market price and restricted stock units not included in the computation because they were anti-dilutive	260	295

In 2020, 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.

REVENUE RECOGNITION The Company's contracts with customers are comprised of purchase orders, and for larger customers, may also include long-term agreements. We account for a contract when it has approval and commitment from both parties, the rights of the parties and payment terms are identified, the contract has commercial substance and collectability of consideration is probable. These contracts with customers typically relate to the manufacturing of products, which represent single performance obligations that are satisfied when control of the product passes to the customer. The Company considers the timing of right to payment, transfer of risk and rewards, transfer of title, transfer of physical possession and customer acceptance when determining when control transfers to the customer. As a result, revenue is generally recognized at a point in time - either upon shipment or delivery - based on the specific shipping terms in the contract. The shipping terms vary across all businesses and depend on the product, customary local commercial terms and the type of transportation. Shipping and handling activities are accounted for as activities to fulfill a promise to transfer a product to a customer and as such, costs incurred are recorded when the related revenue is recognized. Payment for products is due within a limited time period after shipment or delivery, typically within 30 to 90 calendar days of the respective invoice dates. The Company does not generally offer extended payment terms.

Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods. Amounts billed and due from our customers are classified as accounts receivable, less allowance for doubtful accounts on the consolidated balance sheets. Certain contracts with customers, primarily distributor customers, have an element of variable consideration that is estimated when revenue is recognized under the contract. Variable consideration primarily includes volume incentive rebates, which are based on achieving a certain level of purchases and other performance criteria as established by our distributor programs. These rebates are estimated based on projected sales to the customer and accrued as a reduction of net sales as they are earned. The majority of our products are consumed by our customers or end users in the manufacture of their products. Historically, we have experienced very low levels of returned products and do not consider the effect of returned products to be material. We have recorded an estimated returned goods allowance to provide for any potential returns.

We warrant that products sold are free from defects in material and workmanship under normal use and service when correctly installed, used and maintained. This warranty terminates 30 days after delivery of the product to the customer and does not apply to products that have been subjected to misuse, abuse, neglect or improper storage, handling or maintenance. Products may be returned to Kennametal only after inspection and approval by Kennametal and upon receipt by the customer of shipping instructions from Kennametal. We have included an estimated allowance for warranty returns in our returned goods allowance discussed above.

The Company records a contract asset when it has a right to payment from a customer that is conditioned on events that have occurred other than the passage of time. The Company also records a contract liability when customers prepay but the Company has not yet satisfied its performance obligation. The Company did not have any material remaining performance obligations, contract assets or liabilities as of June 30, 2022 and 2021.

The Company pays sales commissions related to certain contracts, which qualify as incremental costs of obtaining a contract. However, the Company applies the practical expedient that allows an entity to recognize incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that would have been recognized is one year or less. These costs are recorded within operating expense in our consolidated statements of income.

SHIPPING AND HANDLING FEES AND COSTS All fees billed to customers for shipping and handling are classified as a component of sales. All costs associated with shipping and handling are classified as a component of cost of goods sold.

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STOCK-BASED COMPENSATION We recognize stock-based compensation expense for all stock options, restricted stock awards and restricted stock units over the period from the date of grant to the date when the award is no longer contingent on the employee providing additional service (substantive vesting period). Forfeitures are recorded as incurred. We utilize the Black-Scholes valuation method to establish the fair value of all stock option awards. 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.

Capital stock options are granted to eligible employees at fair market value at the date of grant. Capital stock options are exercisable under specified conditions for up to 10 years from the date of grant. The Kennametal Inc. Stock and Incentive Plan of 2010, as Amended and Restated on October 22, 2013, and further amended on January 27, 2015 (A/R 2010 Plan), by the Kennametal Inc. 2016 Stock and Incentive Plan, and on October 27, 2020 by the Kennametal Inc. 2020 Stock and Incentive Plan (2020 Plan) authorize the issuance of up to 9,500,000 shares of the Company’s capital stock plus any shares remaining unissued under the Kennametal Inc. Stock and Incentive Plan of 2002, as amended (2002 Plan). Under the provisions of the A/R 2010 Plan and 2020 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 2022, 2021 and 2020 was immaterial. In addition to stock option grants, the A/R 2010 Plan and the 2020 Plan permit the award of stock appreciation rights, performance share awards, performance unit awards, restricted stock awards, restricted unit awards and share awards to directors, officers and key employees.

RESEARCH AND DEVELOPMENT COSTS Research and development costs of $42.1 million, $39.5 million and $38.7 million in 2022, 2021 and 2020, respectively, were expensed as incurred. These costs are included in operating expense in the consolidated statements of income.

INCOME TAXES The Company’s provision for income taxes is calculated based on income and statutory tax rates in the various jurisdictions in which the Company operates and requires the use of management’s estimates and judgments. Management judgment is required in determining the Company’s worldwide provision for income taxes and recording the related assets and liabilities, including accruals for unrecognized tax benefits and assessing the need for valuation allowances on deferred tax assets. Deferred income taxes are recognized based on the future income tax effects (using enacted tax laws and rates) of differences in the carrying amounts of assets and liabilities for financial reporting and tax purposes. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not (greater than 50 percent) that a tax benefit will not be realized. In evaluating the need for a valuation allowance, we consider all potential sources of taxable income, including income available in carryback periods, future reversals of taxable temporary differences, projections of taxable income, and income from tax planning strategies, as well as all available positive and negative evidence. Positive evidence includes factors such as a history of profitable operations, and projections of future profitability within the carry forward period, including taxable income from tax planning strategies. Negative evidence includes items such as cumulative losses, projections of future losses, or carryforward periods that are not long enough to allow for the utilization of the deferred tax asset based on existing projections of income. Upon changes in facts and circumstances, we may conclude that deferred tax assets for which no valuation allowance is currently recorded may not be realized, resulting in a charge to establish a valuation allowance. Existing valuation allowances are re-examined under the same standards of positive and negative evidence. If it is determined that it is more likely than not that a deferred tax asset will be realized, the appropriate amount of the valuation allowance, if any, is released.

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 use derivative financial instruments to provide predictability to the effects of changes in foreign exchange rates on our consolidated results. Our objective in managing foreign exchange exposures with derivative instruments is to reduce volatility in cash flow, allowing us to focus more of our attention on business operations. With respect to interest rate management, we use forward-starting interest rate swaps to effectively hedge the variability in future benchmark interest payments attributable to changes in interest rates on forecasted issuances of fixed-rate debt.

We account for derivative instruments as a hedge of the related asset, liability, firm commitment or anticipated transaction, when the derivative is specifically designated as a hedge of such items. We measure hedge effectiveness by assessing the changes in the fair value or expected future cash flows of the hedged item. Certain currency forward contracts hedging significant cross-border intercompany loans are considered other derivatives and, therefore, do not qualify for hedge accounting.

NET INVESTMENT HEDGES We designate financial instruments as net investment hedges from time to time to hedge the foreign exchange exposure of our net investment in foreign currency-based subsidiaries. The remeasurements of these non-derivatives designated as net investment hedges are calculated each period with changes reported in foreign currency translation adjustment within accumulated other comprehensive loss. Such amounts will remain in accumulated other comprehensive loss unless we complete or substantially complete liquidation or disposal of our investment in the underlying foreign operations.

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CURRENCY TRANSLATION Assets and liabilities of international operations are translated into U.S. dollars using year-end exchange rates, while revenues and expenses are translated at average exchange rates throughout the year. The resulting net translation adjustments are recorded as a component of accumulated other comprehensive loss. The local currency is the functional currency of most of our locations.

Losses of $2.5 million, $3.3 million and $3.4 million from currency transactions were included in other income, net in 2022, 2021 and 2020, respectively.

NOTE 3 — SUPPLEMENTAL CASH FLOW DISCLOSURES

Year ended June 30 (in thousands)	2022		2021		2020
Cash paid during the period for:
Interest	$	25,277	$	43,601	$	25,796
Income taxes	36,105		48,910		36,852
Supplemental disclosure of non-cash information:
Changes in accounts payable related to purchases of property, plant and equipment	9,800		(17,500)		(9,400)
Changes in notes payable related to purchases of property, plant and equipment	—		7,254		—

NOTE 4 — DIVESTITURE

During the year ended June 30, 2020, we completed the sale of certain assets of the non-core specialty alloys and metals business within the Infrastructure segment located in New Castle, Pennsylvania to Advanced Metallurgical Group N.V. for an aggregate price of $24.0 million.

The net book value of these assets at closing was $29.5 million, and the pre-tax loss on divestiture recognized during the year ended June 30, 2020 was $6.5 million. Transaction proceeds were primarily used for capital expenditures related to our simplification/modernization efforts. During the year ended June 30, 2022, we recorded a pre-tax gain of $1.0 million on the New Castle divestiture due to proceeds held in escrow until November 2021.

NOTE 5 — FAIR VALUE MEASUREMENTS

Fair value is defined as the price that would be received to sell 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.

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As of June 30, 2022, the fair values of the Company’s financial assets and financial liabilities measured at fair value on a recurring basis are categorized as follows: 

(in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Derivatives (1)	$	—	$	176	$	—	$	176
Total assets at fair value	$	—	$	176	$	—	$	176
Liabilities:
Derivatives (1)	$	—	$	574	$	—	$	574
Total liabilities at fair value	$	—	$	574	$	—	$	574

As of June 30, 2021, the fair value of the Company’s financial assets and financial liabilities measured at fair value on a recurring basis are categorized as follows:

(in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Derivatives (1)	$	—	$	36	$	—	$	36
Total assets at fair value	$	—	$	36	$	—	$	36
Liabilities:
Derivatives (1)	$	—	$	87	$	—	$	87
Total liabilities at fair value	$	—	$	87	$	—	$	87

 

 (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.

NOTE 6 — DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

As part of our financial risk management program, we use certain derivative financial instruments. See Note 2 for discussion on our derivative instruments and hedging activities policy.

There are no derivatives designated as hedging instruments as of June 30, 2022 or 2021. The fair value of derivatives not designated as hedging instruments in the consolidated balance sheets are as follows:

(in thousands)	2022		2021
Derivatives not designated as hedging instruments
Other current assets - currency forward contracts	$	176	$	36
Other current liabilities - currency forward contracts	(574)		(87)
Total derivatives not designated as hedging instruments	(398)		(51)
Total derivatives	$	(398)	$	(51)

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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 consolidated balance sheets, with the offset to other income, net. Losses related to derivatives not designated as hedging instruments have been recognized as follows:

(in thousands)	2022		2021		2020
Other income, net - currency forward contracts	$	377	$	2	$	210

CASH FLOW HEDGES

During fiscal 2020 we entered into seven forward-starting interest rate swap contracts with an aggregate notional amount totaling $200.0 million. A forward-starting interest rate swap is an agreement that effectively hedges the variability in future benchmark interest payments attributable to changes in interest rates on the forecasted issuance of fixed-rate debt. During fiscal 2021, upon issuance of the Senior Unsecured Notes due 2031 (see Note 11 for more information) we settled the forward starting interest rate swap contracts for a gain of $10.2 million in other comprehensive income (loss). The gain will be amortized out of accumulated other comprehensive income (loss) and into interest expense (as a benefit) over the life of the Senior Unsecured Notes due 2031. There were no interest rate swap contracts outstanding at June 30, 2022 or 2021.

NET INVESTMENT HEDGES

As of June 30, 2022 and 2021 we had foreign currency-denominated intercompany loans payable with total aggregate principal amounts of €13 million and €5.2 million, respectively, designated as net investment hedges to hedge the foreign exchange exposure of our net investment in Euro-based subsidiaries. A gain of $0.8 million, a loss of $1.9 million, and a gain of $0.6 million were recorded as a component of foreign currency translation adjustments in other comprehensive income (loss) during 2022, 2021 and 2020, respectively.

As of June 30, 2022 and 2021, the foreign currency-denominated intercompany loans payable designated as net investment hedges consisted of:

(in thousands)	2022		2021
Instrument	Notional (EUR)(2)	Notional (USD)(2)	Notional (EUR)(2)	Notional (USD)(2)	Maturity
Foreign currency-denominated intercompany loan payable	€0	$0	€5,173	$6,146	June 26, 2022
Foreign currency-denominated intercompany loan payable	€13,013	$13,531	€0	$0	August 31, 2022

(2) Includes principal and accrued interest.

NOTE 7 — INVENTORIES

Inventories consisted of the following at June 30: 

(in thousands)	2022		2021
Finished goods	$	316,936	$	302,524
Work in process and powder blends	231,214		173,671
Raw materials	107,024		72,551
Inventories at current cost	655,174		548,746
Less: LIFO valuation	(84,338)		(72,401)
Total inventories	$	570,836	$	476,345

We used the LIFO method of valuing inventories for approximately 39 percent of total inventories at June 30, 2022 and 2021, respectively.

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NOTE 8 — GOODWILL AND OTHER INTANGIBLE ASSETS

As of June 30, 2022, $264.2 million of goodwill was allocated to the Metal Cutting reporting unit. We completed an annual quantitative test of goodwill impairment and determined that the fair value of the reporting unit substantially exceeded the carrying value and, therefore, no impairment was recorded during 2022. Further, an indefinite-lived trademark intangible asset of $10.4 million in the Metal Cutting reporting unit had a fair value that exceeded its carrying value as of the date of the annual impairment test and, therefore, no impairment was recorded during 2022.

December Quarter of Fiscal 2020 Impairment Charge

In the December quarter of fiscal 2020, the Company experienced deteriorating market conditions, primarily in general engineering and transportation applications in India and China, in addition to overall global weakness in the manufacturing sector. In view of these declining conditions and the significant detrimental effect on cash flows and actual and projected revenue and earnings compared with the fiscal 2019 annual impairment test, we determined that an impairment triggering event had occurred and performed an interim quantitative impairment test of our goodwill, indefinite-lived trademark intangible asset and other long-lived assets of our former Widia reporting unit. We evaluated the recoverability of goodwill for the reporting unit by comparing the fair value with its carrying value, with the fair values determined using a combination of a discounted cash flow analysis and market multiples based upon historical and projected financial information. As a result of this interim test, we recorded a non-cash pre-tax impairment charge during the three months ended December 31, 2019 of $14.6 million in the former Widia segment, which is now part of the Metal Cutting segment as of July 1, 2020, of which $13.1 million was for goodwill and $1.5 million was for an indefinite-lived trademark intangible asset. These impairment charges were recorded in goodwill and other intangible assets impairments in our consolidated statements of income. No impairment was recorded for the other long-lived assets.

March Quarter of Fiscal 2020 Impairment Charge

In the March quarter of fiscal 2020, the decline in actual and projected financial results for the former Widia reporting unit, primarily as a result of the COVID-19 pandemic, represented an interim impairment triggering event because there was essentially zero cushion between the reporting unit's carrying value and fair value as of March 31 2020. This is because the former Widia reporting unit was recorded at fair value as of the December 31, 2019 interim impairment testing date. We evaluated the recoverability of goodwill for the reporting unit by comparing the fair value with its carrying value, with the fair values determined using a combination of a discounted cash flow analysis and market multiples based upon historical and projected financial information. As a result of this interim test, we recorded a non-cash pre-tax impairment charge during the three months ended March 31, 2020 of $15.6 million in the former Widia segment, of which $13.7 million was for goodwill and $1.9 million was for an indefinite-lived trademark intangible asset. These impairment charges were recorded in goodwill and other intangible assets impairments in our consolidated statements of income. No impairment was recorded for the other long-lived assets.

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

(in thousands)	Metal Cutting		Infrastructure		Total
Gross goodwill	$	448,241	$	633,211	$	1,081,452
Accumulated impairment losses	(177,661)		(633,211)		(810,872)
Balance as of June 30, 2020	$	270,580	$	—	$	270,580
Activity for the year ended June 30, 2021:
Change in gross goodwill due to translation	7,035		—		7,035
Gross goodwill	455,276		633,211		1,088,487
Accumulated impairment losses	(177,661)		(633,211)		(810,872)
Balance as of June 30, 2021	$	277,615	$	—	$	277,615
Activity for the year ended June 30, 2022:
Change in gross goodwill due to translation	(13,385)		—		(13,385)
Gross goodwill	441,891		633,211		1,075,102
Accumulated impairment losses	(177,661)		(633,211)		(810,872)
Balance as of June 30, 2022	$	264,230	$	—	$	264,230

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The components of our other intangible assets were as follows: 

	Estimated Useful Life (in years)	June 30, 2022				June 30, 2021
(in thousands)		Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Technology-based and other	4 to 20	$	31,592	$	(22,734)	$	33,632	$	(24,413)
Customer-related	10 to 21	180,263		(104,698)		183,338		(98,901)
Unpatented technology	10 to 30	31,807		(22,950)		31,957		(20,575)
Trademarks	5 to 20	12,403		(10,317)		13,268		(10,083)
Trademarks	Indefinite	10,359		—		11,818		—
Total		$	266,424	$	(160,699)	$	274,013	$	(153,972)

Amortization expense for intangible assets was $13.0 million, $14.0 million and $13.8 million for 2022, 2021 and 2020, respectively. Estimated amortization expense for 2023 through 2027 is $12.3 million, $10.7 million, $9.6 million, $9.2 million, and $7.7 million, respectively.

NOTE 9 — LEASES

At the inception of our contracts, we determine if the contract is or contains a lease. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. ROU assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at commencement. For leases that do not have a readily determinable implicit rate, we use a discount rate based on our incremental borrowing rate, which is determined considering factors such as the lease term, our credit rating and the economic environment of the location of the lease as of the commencement date.

We account for non-lease components separately from lease components. These costs often relate to the payments for a proportionate share of real estate taxes, insurance, common area maintenance and other operating costs in addition to base rent. We also do not recognize ROU assets and liabilities for leases with an initial term of 12 months or less. Lease costs associated with leases of less than 12 months were $3.7 million, $2.4 million and $6.4 million for the years ended June 30, 2022, 2021 and 2020, respectively.

As a lessee, we have various operating lease agreements primarily related to real estate, vehicles and office and plant equipment. Our real estate leases, which are comprised primarily of manufacturing, warehousing, office and administration facilities, represent a majority of our lease liability. Our lease payments are largely fixed. Any variable lease payments, including utilities, common area maintenance and repairs and maintenance, are expensed during the period incurred. Variable lease costs were immaterial for the year ended June 30, 2022, 2021 and 2020. A majority of our real estate leases include options to extend the lease and options to early terminate the lease. Leases with an early termination option generally involve a termination payment. We review all options to extend, terminate, or purchase the ROU assets at the inception of the lease and account for these options when they are reasonably certain of being exercised. Our lease agreements generally do not contain any material residual value guarantees or materially restrictive covenants. We do not have any material leases that have been signed but not commenced, and we did not have any lease transactions with related parties.

Operating lease expense is recognized on a straight-line basis over the lease term and is included in operating expense on our consolidated statements of income. Operating lease cost was $21.3 million, $20.2 million and $22.6 million in 2022, 2021 and 2020, respectively.

The following table sets forth supplemental balance sheet information related to our operating leases:

Year Ended June 30	2022		2021		2020
Weighted average remaining lease term	8.1 years		8.0 years		8.6 years
Weighted average discount rate	3.2	%	3.3	%	3.3	%

The following table sets forth supplemental cash flow information related to our operating leases:

Year Ended June 30 (in thousands)	2022		2021		2020
Operating cash outflows from operating leases	$	17,592	$	17,651	$	15,635
ROU assets obtained in exchange for new operating lease liabilities	$	15,430	$	17,235	$	16,171

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The following table sets forth the maturities of our operating lease liabilities and reconciles the respective undiscounted payments to the operating lease liabilities in the consolidated balance sheet as of June 30, 2022:

Year Ended June 30	(in thousands)
2023	$	13,383
2024	10,195
2025	7,374
2026	4,672
2027	3,110
Thereafter	16,029
Total undiscounted operating lease payments	$	54,763
Less: discount to net present value	7,034
Total operating lease liabilities	$	47,729

NOTE 10 — OTHER CURRENT LIABILITIES

Other current liabilities consisted of the following at June 30:

(in thousands)	2022		2021
Accrued employee benefits	$	35,270	$	51,783
Payroll, state and local taxes	9,989		6,873
Accrued professional and legal fees	9,489		8,428
Accrued environmental	7,938		2,561
Accrued restructuring (Note 16)	6,019		19,851
Accrued interest	3,394		3,520
Other	66,304		64,586
Total other current liabilities	$	138,403	$	157,602

NOTE 11 — LONG-TERM DEBT

Long-term debt consisted of the following at June 30:

(in thousands)	2022		2021
2.800% Senior Unsecured Notes due fiscal 2031, net of discount of $0.2 million for 2022 and $0.2 million for 2021	$	299,842	$	299,823
4.625% Senior Unsecured Notes due fiscal 2028, net of discount of $1.3 million for 2022 and $1.5 million for 2021	298,702		298,483
Total term debt	598,544		598,306
Less unamortized debt issuance costs	(4,180)		(6,198)
Total long-term debt	$	594,364	$	592,108

Senior Unsecured Notes In February 2021, we issued $300.0 million of 2.800 percent Senior Unsecured Notes with a maturity date of March 1, 2031. Interest is paid semi-annually on March 1 and September 1 of each year. During 2021, we settled forward starting interest rate swap contracts for a gain of $10.2 million related to the bond issuance as discussed in Note 6. In March 2021, we used the net proceeds from the bond issuance, plus cash on hand, for the early extinguishment of our $300.0 million of 3.875 percent Senior Unsecured Notes due 2022 (the 2022 Senior Notes). Due to the early extinguishment, interest expense during 2021 includes a make-whole premium of $9.6 million and the acceleration of a loss in the amount of $2.6 million from other comprehensive loss related to forward starting interest rate contracts that were used to hedge the interest payments of the 2022 Senior Notes. A stranded tax benefit associated with the termination of this hedge was also recognized during 2021. Refer to Note 13 for more information related to the stranded tax benefit. On June 7, 2018, we issued $300.0 million of 4.625 percent Senior Unsecured Notes with a maturity date of June 15, 2028. Interest on these notes is paid semi-annually on June 15 and December 15 of each year.

Future principal maturities of long-term debt are $300.0 million in 2028 and $300.0 million in 2031.

48

Fixed rate debt had a fair market value of $536.1 million and $644.2 million at June 30, 2022 and 2021, respectively. The Level 2 fair value is determined based on the quoted market prices for similar debt instruments as of June 30, 2022 and 2021, respectively.

NOTE 12 — REVOLVING AND OTHER LINES OF CREDIT AND NOTES PAYABLE

Credit Agreement During fiscal 2022, we entered into the Sixth Amended and Restated Credit Agreement dated as of June 14, 2022 (the Credit Agreement). The Credit Agreement is a five-year, multi-currency, revolving credit facility, which we use to augment cash from operations and as an additional source of funds. The Credit Agreement provides for revolving credit loans of up to $700.0 million for working capital, capital expenditures and general corporate purposes. The Credit Agreement allows for borrowings in U.S. dollars, euros, Canadian dollars, pounds sterling and Japanese yen. Interest payable under the Credit Agreement is based upon the type of borrowing under the facility and may be (1) Euro Interbank Offered Rate (EURIBOR), Sterling Overnight Index Average (SONIA), Tokyo Interbank Offered Rate (TIBOR), Secured Overnight Financing Rate (SOFR), and Canadian Dollar Offered Rate (CDOR) for any borrowings in euros, pounds sterling, yen, U.S. dollars and Canadian dollars, respectively, plus an applicable margin, (2) the greater of the prime rate or the Federal Funds effective rate plus an applicable margin, or (3) fixed as negotiated by us. The Credit Agreement matures in June 2027.

The Credit Agreement requires us to comply with various restrictive and affirmative covenants, including one financial covenant: a maximum leverage ratio where debt, net of domestic cash in excess of $25 million and sixty percent of the unrestricted cash held outside of the United States, must be less than or equal to 3.75 times trailing twelve months EBITDA, adjusted for certain non-cash expenses.

As of June 30, 2022, we were in compliance with all covenants of the Credit Agreement and we had $19.0 million of borrowings outstanding and $681.0 million of availability. There were no borrowings outstanding as of June 30, 2021. The weighted average interest rate on borrowings under the Credit Agreement was 1.4 percent for the year ended June 30, 2022.

Borrowings on other lines of credit and notes payable were $2.2 million and $8.4 million at June 30, 2022 and 2021, respectively. The lines of credit represented short-term borrowings under credit lines with commercial banks in the various countries in which we operate. The availability of these credit lines, translated into U.S. dollars at June 30, 2022 exchange rates, totaled $60.7 million.

NOTE 13 — INCOME TAXES

Income (loss) before income taxes consisted of the following for the years ended June 30: 

(in thousands)	2022			2021			2020
Income (loss) before income taxes:
United States	$	10,109		$	(60,775)		$	(76,107)
International	196,624			125,435			78,067
Total income before income taxes	$	206,733		$	64,660		$	1,960
Current income taxes:
Federal	$	1,115		$	39		$	(3,558)
State	106			133			905
International	44,019			30,726			33,559
Total current income taxes	45,240			30,898			30,906
Deferred income taxes:
Federal	$	10,841		$	(23,170)		$	(9,113)
State	(676)			(2,948)			724
International	1,127			1,463			(15,510)
Total deferred income taxes:	11,292			(24,655)			(23,899)
Provision for income taxes	$	56,532		$	6,243		$	7,007
Effective tax rate	27.3		%	9.7		%	357.5		%

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Coronavirus Aid, Relief, and Economic Security Act (CARES Act)

On March 27, 2020, the CARES Act was enacted in response to the COVID-19 pandemic. The CARES Act, among other things, allows net operating losses arising in taxable years beginning after December 31, 2017 and before January 1, 2021 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes; permits net operating loss carryovers and carrybacks to offset 100 percent of taxable income for taxable years beginning before January 1, 2021; and modifies the limitation on business interest by increasing the allowable business interest deduction from 30 percent of adjusted taxable income to 50 percent of adjusted taxable income for taxable years beginning in 2019 or 2020. We carried back our taxable loss in the U.S. for fiscal 2020 under the provisions of the CARES Act and recorded a benefit in our tax provision during fiscal 2020.

Swiss tax reform

Legislation was effectively enacted during the December quarter of fiscal 2020 when the Canton of Schaffhausen approved the Federal Act on Tax Reform and AHV Financing on October 8, 2019 (Swiss tax reform). Significant changes from Swiss tax reform include the abolishment of certain favorable tax regimes and the creation of a multi-year transitional period at both the federal and cantonal levels.

The transitional provisions of Swiss tax reform allow companies to utilize a combination of lower tax rates and tax basis adjustments to fair value, which are used for tax depreciation and amortization purposes resulting in deductions over the transitional period. To reflect the federal and cantonal transitional provisions, as they apply to us, we recorded a deferred tax asset of $14.5 million during the December quarter of fiscal 2020. We consider the deferred tax asset from Swiss tax reform to be an estimate based on our current interpretation of the legislation, which is subject to change based on further legislative guidance, review with the Swiss federal and cantonal authorities, and modifications to the underlying valuation. We anticipate finalization of the deferred tax asset within the next six months.

The reconciliation of income taxes computed using the statutory U.S. income tax rate and the provision for income taxes was as follows for the years ended June 30:

(in thousands)	2022		2021		2020
Income taxes at U.S. statutory rate	$	43,414	$	13,579	$	412
State income taxes, net of federal tax benefit	(450)		(1,725)		1,283
U.S. income taxes provided on international income	12,815		(6,479)		12,422
Combined tax effects of international income	2,747		5,860		10,583
Impact of goodwill impairment charges	—		—		5,651
Change in valuation allowance and other uncertain tax positions	(614)		1,127		755
U.S. research and development credit	(2,814)		(3,055)		(4,093)
Change in permanent reinvestment assertion	775		—		—
Combined effects of Swiss tax reform	—		—		(14,500)
Combined effects of the U.S. CARES Act	—		—		(6,913)
Recognition of stranded deferred tax balance	—		(3,465)		—
Other	659		401		1,407
Provision for income taxes	$	56,532	$	6,243	$	7,007

During 2021, we recorded a tax benefit of $3.5 million for the recognition of a stranded deferred tax balance in accumulated other comprehensive loss associated with the forward starting interest rate swap contracts that were terminated when the 2022 Senior Notes were extinguished. The impact of this item is included in the tax reconciliation table under the caption “Recognition of stranded deferred tax balance” and in the consolidated statements of cash flows as a non-cash item within the caption "Debt refinancing charge."

During 2021, we recorded a net tax benefit of $9.3 million related to a tax election made in our fiscal 2020 U.S. income tax return pursuant to global intangible low-taxed income (GILTI) regulations which were issued during the current fiscal year. The impact of this item is included in the tax reconciliation table under the caption “U.S. income taxes provided on international income.”

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The components of net deferred tax assets and liabilities were as follows at June 30:

(in thousands)	2022		2021
Deferred tax assets:
Net operating loss (NOL) carryforwards	$	25,868	$	44,258
Inventory valuation and reserves	11,747		11,068
Pension benefits	—		7,136
Other postretirement benefits	3,050		3,486
Accrued employee benefits	11,775		11,168
Operating lease liabilities	11,995		12,652
Other accrued liabilities	12,992		15,596
Tax credits and other carryforwards	34,930		32,490
Intangible assets	4,246		7,784
Total	116,603		145,638
Valuation allowance	14,385		21,263
Total deferred tax assets	$	102,218	$	124,375
Deferred tax liabilities:
Tax depreciation in excess of book	$	57,109	$	63,020
Operating lease right-of-use assets	11,852		12,502
Unremitted earnings not permanently reinvested	7,242		6,429
Pension benefits	1,061		—
Other	2,537		7,392
Total deferred tax liabilities	$	79,801	$	89,343
Total net deferred tax assets (liabilities)	$	22,417	$	35,032

As of June 30, 2022, we have $25.9 million of U.S. net deferred tax assets. Within this amount is $46.2 million related to net operating loss, tax credit, and other carryforwards that can be used to offset future U.S. taxable income. Certain of these carryforwards will expire if they are not used within a specified timeframe. At this time, we consider it more likely than not that we will have sufficient U.S. taxable income in the future that will allow us to realize these net deferred tax assets. However, it is possible that some or all of these tax attributes could ultimately expire unused. Therefore, if we are unable to generate sufficient U.S. taxable income from our operations, a valuation allowance to reduce the U.S. net deferred tax assets may be required, which would materially increase income tax expense in the period in which the valuation allowance is recorded.

Included in deferred tax assets at June 30, 2022 is $34.9 million associated with tax credits and other carryforward items in the U.S. and Europe. Of that amount, $2.5 million expires through 2032, $4.6 million expires through 2037, $19.1 million expires through 2042, $1.5 million does not expire, and $7.2 million is amortizable over ten years.

Included in deferred tax assets at June 30, 2022 is $25.9 million associated with NOL carryforwards in U.S. state and foreign jurisdictions. Of that amount, $4.7 million expires through 2027, $2.0 million expires through 2032, $3.2 million expires through 2037, $2.2 million expires through 2042, and the remaining $13.8 million does not expire. The realization of these tax benefits is primarily dependent on future taxable income in these jurisdictions.

A valuation allowance of $14.4 million has been placed against deferred tax assets primarily in U.S. state, Brazil, Bolivia, and Russia jurisdictions, all of which would be allocated to income tax expense upon realization of the deferred tax assets. As the respective operations generate sufficient income, the valuation allowances will be partially or fully reversed at such time we believe it will be more likely than not that the deferred tax assets will be realized. In 2022, the valuation allowance related to these deferred tax assets decreased by $6.9 million.

We consider the majority of the $1.5 billion unremitted earnings of our non-U.S. subsidiaries to be permanently reinvested. With regard to these unremitted earnings, we have not, nor do we anticipate the need to, repatriate funds to the U.S. to satisfy domestic liquidity needs arising in the ordinary course of business, including liquidity needs associated with our domestic debt service requirements. Determination of the amount of unrecognized deferred tax liability related to indefinitely reinvested earnings is not practicable due to our legal entity structure and the complexity of U.S. and local tax laws. With regard to the small portion of unremitted earnings that are not indefinitely reinvested, we maintain a deferred tax liability for foreign withholding and U.S. state income taxes. The deferred tax liability associated with unremitted earnings of our non-U.S. subsidiaries not permanently reinvested is $7.2 million as of June 30, 2022.

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A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest and penalty) is as follows as of June 30:

(in thousands)	2022		2021		2020
Balance at beginning of year	$	8,656	$	8,680	$	8,952
Increases for tax positions of prior years	105		—		—
Decreases related to lapse of statute of limitations	(779)		(229)		(214)
Foreign currency translation	(384)		205		(58)
Balance at end of year	$	7,598	$	8,656	$	8,680

The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate in 2022, 2021 and 2020 is $7.6 million, $8.7 million and $8.7 million, respectively. We believe that it is reasonably possible that the amount of unrecognized tax benefits will decrease by approximately $2.0 million within the next twelve months.

Our policy is to recognize interest and penalties related to income taxes as a component of the provision for income taxes in the consolidated statements of income. We recognized an increase of $0.1 million and $1.0 million in 2022 and 2020, respectively, and a decrease of $0.2 million in 2021. As of June 30, 2022 and 2021, the amount of interest accrued was $1.4 million in both periods. As of June 30, 2022 and 2021, there was no penalty accrued.

With few exceptions, we are no longer subject to income tax examinations by tax authorities for years prior to 2015. The Internal Revenue Service has audited or the statute of limitations has expired for all U.S. tax years prior to 2018. Various state and foreign jurisdiction tax authorities are in the process of examining our income tax returns for various tax years ranging from 2015 to 2019. We continuously review our uncertain tax positions and evaluate any potential issues that may lead to an increase or decrease in the total amount of unrecognized tax benefits recorded.

NOTE 14 — PENSION AND OTHER POSTRETIREMENT BENEFITS

Defined Benefit Pension Plans

We have defined benefit pension plans that cover certain employees in the U.S., Germany, the UK, Switzerland, Canada and Israel. Pension benefits under defined benefit pension plans are based on years of service and, for certain plans, on average compensation for specified years preceding retirement. We fund pension costs in accordance with the funding requirements of the Employee Retirement Income Security Act of 1974 (ERISA), as amended, for U.S. plans and in accordance with local regulations or customs for non-U.S. plans. The accrued benefit for all participants in the Kennametal Inc. Retirement Income Plan was frozen as of December 31, 2016. The majority of our defined benefit pension plans are closed to future participation.

We have an Executive Retirement Plan for certain executives and a Supplemental Executive Retirement Plan both of which are closed to future participation as of June 15, 2017 and July 26, 2006, respectively.

We presently provide varying levels of postretirement health care and life insurance benefits to certain employees and retirees. By fiscal 2019, participants over the age of 65 were transitioned to a private exchange and some received a fixed Health Retirement Account (HRA) contribution to offset the cost of their coverage. Postretirement health and life benefits are closed to future participants as of December 31, 2016.

We use a June 30 measurement date for all of our plans. During fiscal 2021, as part of the plan to wind-up the fully frozen, overfunded Canadian defined benefit pension plans, the Company purchased an upfront annuity for retirees resulting in a non-cash settlement charge of $2.8 million. The Company expects to complete the wind-up of the Canadian plans by fiscal 2024.

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The funded status of our pension plans and amounts recognized in the consolidated balance sheets as of June 30 were as follows:

(in thousands)	2022		2021
Change in benefit obligation:
Benefit obligation, beginning of year	$	968,725	$	1,004,005
Service cost	1,117		1,685
Interest cost	22,532		23,188
Participant contributions	479		548
Actuarial gains	(170,055)		(16,794)
Benefits and expenses paid	(53,149)		(52,719)
Currency translation adjustments	(27,074)		23,276
Plan amendments	(66)		(129)
Plan settlements	(1,805)		(13,966)
Plan curtailments	(3)		(10)
Other adjustments	308		(359)
Benefit obligation, end of year	$	741,009	$	968,725
Change in plans' assets:
Fair value of plans' assets, beginning of year	$	890,104	$	876,036
Actual return on plans' assets	(133,374)		54,026
Company contributions	8,170		9,998
Participant contributions	479		548
Plan settlements	(1,805)		(13,966)
Benefits and expenses paid	(53,149)		(52,719)
Currency translation adjustments	(14,455)		16,032
Other adjustments	(5)		149
Fair value of plans' assets, end of year	$	695,965	$	890,104
Funded status of plans	$	(45,044)	$	(78,621)
Amounts recognized in the balance sheets consist of:
Long-term prepaid benefit	$	66,433	$	89,233
Short-term accrued benefit obligation	(6,406)		(6,918)
Accrued pension benefits	(105,071)		(160,936)
Net amount recognized	$	(45,044)	$	(78,621)

The pre-tax amounts related to our defined benefit pension plans recognized in accumulated other comprehensive loss were as follows at June 30:

(in thousands)	2022		2021
Unrecognized net actuarial losses	$	274,416	$	279,628
Unrecognized net prior service costs	1,822		2,001
Unrecognized transition obligations	158		277
Total	$	276,396	$	281,906

To the best of our knowledge and belief, the asset portfolios of our defined benefit pension plans do not contain our capital stock. Apart from the partial annuitization of the Canadian plans as previously mentioned, we do not issue insurance contracts to cover future annual benefits of defined benefit pension plan participants. Transactions between us and our defined benefit pension plans include the reimbursement of plan expenditures incurred by us on behalf of the plans. To the best of our knowledge and belief, the reimbursement of cost is permissible under current ERISA rules or local government law. The accumulated benefit obligation for all defined benefit pension plans was $740.4 million and $967.5 million as of June 30, 2022 and 2021, respectively.

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Included in the above information are plans with accumulated benefit obligations exceeding the fair value of plan assets as of June 30 as follows:

(in thousands)	2022		2021
Projected benefit obligation	$	118,199	$	174,973
Accumulated benefit obligation	117,614		173,684
Fair value of plan assets	6,718		7,116

The components of net periodic pension income include the following as of June 30:

(in thousands)	2022		2021		2020
Service cost	$	1,117	$	1,685	$	1,796
Interest cost	22,532		23,188		27,320
Expected return on plans' assets	(51,928)		(53,653)		(53,943)
Amortization of transition obligation	94		94		88
Amortization of prior service cost	13		34		50
Curtailment	(2)		(7)		(115)
Settlement	205		3,190		(51)
Recognition of actuarial losses	11,702		13,606		10,359
Other adjustments	277		(473)		288
Net periodic pension income	$	(15,990)	$	(12,336)	$	(14,208)

As of June 30, 2022, the projected benefit payments, including future service accruals for these plans for 2023 through 2027, are $53.2 million, $54.4 million, $54.9 million, $54.5 million and $54.5 million, respectively, and $260.4 million in 2028 through 2032.

The amounts of accumulated other comprehensive loss expected to be recognized in net periodic pension cost during 2023 related to net actuarial losses are $4.5 million. The amount of accumulated other comprehensive income expected to be recognized in net periodic pension cost during 2023 related to transition obligations and prior service cost is immaterial.

We expect to contribute approximately $7.9 million to our pension plans in 2023, which is primarily for international plans.

Other Postretirement Benefit Plans

The funded status of our other postretirement benefit plans and the related amounts recognized in the consolidated balance sheets were as follows:

(in thousands)	2022		2021
Change in benefit obligation:
Benefit obligation, beginning of year	$	11,383	$	12,365
Interest cost	288		307
Actuarial losses	(1,402)		60
Benefits paid	(1,224)		(1,281)
Other	68		(68)
Benefit obligation, end of year	$	9,113	$	11,383
Funded status of plan	$	(9,113)	$	(11,383)
Amounts recognized in the balance sheets consist of:
Short-term accrued benefit obligation	$	(1,189)	$	(1,252)
Accrued postretirement benefits	(7,924)		(10,131)
Net amount recognized	$	(9,113)	$	(11,383)

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The pre-tax amounts related to our other postretirement benefit plans which were recognized in accumulated other comprehensive loss were as follows at June 30:

(in thousands)	2022		2021
Unrecognized net actuarial losses	$	2,657	$	4,355
Unrecognized net prior service credits	(1,649)		(1,924)
Total	$	1,008	$	2,431

The components of net periodic other postretirement benefit cost include the following for the years ended June 30:

(in thousands)	2022		2021		2020
Interest cost	$	288	$	307	$	404
Amortization of prior service credit	(276)		(276)		(276)
Recognition of actuarial loss	297		307		257
Net periodic other postretirement benefit cost	$	309	$	338	$	385

As of June 30, 2022, the projected benefit payments, including future service accruals for our other postretirement benefit plans for 2023 through 2027, are $1.2 million, $1.1 million, $1.0 million, $0.9 million and $0.9 million, respectively, and $3.4 million in 2028 through 2032.

The amounts of accumulated other comprehensive loss expected to be recognized in net periodic pension cost during 2023 related to net actuarial losses and related to prior service credit are costs of $0.2 million and income of $0.3 million, respectively.

We expect to contribute approximately $1.2 million to our other postretirement benefit plans in 2023.

The service cost component of net periodic pension income of $1.1 million, $1.7 million and $1.8 million for 2022, 2021 and 2020, respectively, was reported as a component of cost of goods sold and operating expense. The other components of net periodic pension income and net periodic other postretirement benefit cost totaling a net benefit of $16.8 million, $13.7 million and $15.6 million for 2022, 2021 and 2020, respectively, were presented as a component of other income, net.

Assumptions

The significant actuarial assumptions used to determine the present value of net benefit obligations for our defined benefit pension plans and other postretirement benefit plans were as follows:

	2022		2021		2020
Discount Rate:
U.S. plans	4.3-5.0%		1.2-3.0%		1.6-2.9%
International plans	2.0-5.0%		0.3-3.2%		0.2-2.4%
Rates of future salary increases:
U.S. plans (Executive Retirement Plan only)	4.0	%	4.0	%	4.0	%
International plans	1.5	%	1.5	%	1.5	%

The significant assumptions used to determine the net periodic income for our pension and other postretirement benefit plans were as follows:

	2022		2021		2020
Discount Rate:
U.S. plans	1.2-3.0%		1.6-2.9%		2.7-3.6%
International plans	0.3-3.2%		0.2-2.4%		0.4-2.9%
Rates of future salary increases:
U.S. plans (Executive Retirement Plan only)	4.0	%	4.0	%	4.0	%
International plans	1.5	%	1.5	%	1.8-3.0%
Rate of return on plans assets:
U.S. plans	6.5	%	6.8	%	7.0	%
International plans	0.3-5.0%		0.2-5.3%		0.4-5.3%

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The rates of return on plan assets are based on historical performance, as well as future expected returns by asset class considering macroeconomic conditions, current portfolio mix, long-term investment strategy and other available relevant information.

The annual assumed rate of increase in the per capita cost of covered benefits (the health care cost trend rate) for our postretirement benefit plans was as follows: 

	2022		2021		2020
Health care costs trend rate assumed for next year	6.3	%	6.5	%	6.8	%
Rate to which the cost trend rate gradually declines	5.0	%	5.0	%	5.0	%
Year that the rate reaches the rate at which it is assumed to remain	2027		2027		2027

A change of one percentage point in the assumed health care cost trend rates would have an immaterial effect on both the total service and interest cost components of our other postretirement cost and other postretirement benefit obligation at June 30, 2022.

Plan Assets

The primary objective of certain of our pension plans' investment policies is to ensure that sufficient assets are available to provide the benefit obligations at the time the obligations come due. The overall investment strategy for the defined benefit pension plans' assets combines considerations of preservation of principal and moderate risk-taking. The assumption of an acceptable level of risk is warranted in order to achieve satisfactory results consistent with the long-term objectives of the portfolio. Fixed income securities comprise a significant portion of the portfolio due to their plan-liability-matching characteristics and to address the plans' cash flow requirements. Additionally, diversification of investments within each asset class is utilized to further reduce the effect of losses in single investments.

Investment management practices for U.S. defined benefit pension plans must comply with ERISA and all applicable regulations and rulings thereof. The use of derivative instruments is permitted where appropriate and necessary for achieving overall investment policy objectives. Currently, the use of derivative instruments is not significant when compared to the overall investment portfolio.

The Company utilizes a liability driven investment strategy (LDI) for the assets of its U.S. defined benefit pension plans in order to reduce the volatility of the funded status of these plans and to meet the obligations at an acceptable cost over the long term. This LDI strategy entails modifying the asset allocation and duration of the assets of the plans to more closely match the liability profile of these plans. The asset reallocation involves increasing the fixed income allocation, reducing the equity component and adding alternative investments. Longer duration interest rate swaps have been utilized periodically in order to increase the overall duration of the asset portfolio to more closely match the liabilities.

Our defined benefit pension plans’ asset allocations as of June 30, 2022 and 2021 and target allocations for 2023, by asset class, were as follows:

	2022		2021		Target %
Equity	14	%	20	%	14	%
Fixed Income	82	%	76	%	79	%
Other	4	%	4	%	7	%

The following sections describe the valuation methodologies used by the trustee to measure the fair value of the defined benefit pension plan assets, including an indication of the level in the fair value hierarchy in which each type of asset is generally classified (see Note 5 for the definition of fair value and a description of the fair value hierarchy).

Corporate fixed income securities Investments in corporate fixed income securities consist of corporate debt and asset backed securities. These investments are classified as level two and are valued using independent observable market inputs such as the treasury curve, swap curve and yield curve.

Common stock Common stocks are classified as level one and are valued at their quoted market price.

Government securities Investments in government securities consist of fixed income securities such as U.S. government and agency obligations and foreign government bonds and asset and mortgage backed securities such as obligations issued by government sponsored organizations. These investments are classified as level two and are valued using independent observable market inputs such as the treasury curve, credit spreads and interest rates.

Other fixed income securities Investments in other fixed income securities are classified as level two and valued based on observable market data.

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Other Other investments consist primarily of state and local obligations and short term investments including cash, corporate notes, and various short term debt instruments which can be redeemed within a nominal redemption notice period. These investments are primarily classified as level two and are valued using independent observable market inputs.

The fair value methods described may not be reflective of future fair values. Additionally, while the Company believes the valuation methods used by the plans’ trustee are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in different fair value measurement at the reporting date.

The following table presents the fair value of the benefit plans' assets by asset category as of June 30, 2022:

(in thousands)	Level 1		Level 2		Level 3		NAV(3)		Total
Common / collective trusts (3):
Blend funds	$	—	$	—	$	—	$	48,973	$	48,973
Mutual funds	—		—		—		24,528		24,528
Corporate fixed income securities	—		379,324		—		—		379,324
Common stock	25,704		—		—		—		25,704
Government securities:
U.S. government securities	—		130,064		—		—		130,064
Foreign government securities	—		40,729		—		—		40,729
Other fixed income securities	—		20,248		—		—		20,248
Other	747		25,648		—		—		26,395
Total investments	$	26,451	$	596,013	$	—	$	73,501	$	695,965

The following table presents the fair value of the benefit plans' assets by asset category as of June 30, 2021:

(in thousands)	Level 1		Level 2		Level 3		NAV(3)		Total
Common / collective trusts (3):
Blend funds	$	—	$	—	$	—	$	90,338	$	90,338
Mutual funds	—		—		—		48,446		48,446
Corporate fixed income securities	—		443,948		—		—		443,948
Common stock	42,670		—		—		—		42,670
Government securities:
U.S. government securities	—		149,514		—		—		149,514
Foreign government securities	—		57,253		—		—		57,253
Other fixed income securities	—		21,107		—		—		21,107
Other	1,107		35,721		—		—		36,828
Total investments	$	43,777	$	707,543	$	—	$	138,784	$	890,104

(3) Investments in common / collective trusts invest primarily in publicly traded securities and are valued using net asset value (NAV) of units of a bank collective trust. Therefore, these amounts have not been classified in the fair value hierarchy and are presented in the tables to reconcile the fair value hierarchy to the total fair value of plan assets.

Defined Contribution Plans

We sponsor several defined contribution retirement plans. Costs for defined contribution plans were $14.2 million, $13.3 million and $14.7 million in 2022, 2021 and 2020, respectively.

Certain U.S. employees are eligible to participate in the Kennametal Thrift Plus Plan (Thrift), which is a qualified defined contribution plan under section 401(k) of the Internal Revenue Code. Under the Thrift, eligible employees receive a full match of their contributions up to 6 percent of eligible compensation.

All contributions, including the company match and discretionary, are made in cash and invested in accordance with participants’ investment elections. There are no minimum amounts that must be invested in company stock, and there are no restrictions on transferring amounts out of company stock to another investment choice, other than excessive trading rules applicable to such investments. Employee contributions and our matching and discretionary contributions vest immediately as of the participants' employment dates.

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NOTE 15 — ACCUMULATED OTHER COMPREHENSIVE LOSS

The components of and changes in accumulated other comprehensive loss (AOCL) were as follows, net of tax, for the year ended June 30, 2022 (in thousands):

Attributable to Kennametal:	Pension and other postretirement benefits		Currency translation adjustment		Derivatives		Total
Balance, June 30, 2021	$	(213,172)	$	(122,428)	$	5,273	$	(330,327)
Other comprehensive loss before reclassifications	(4,163)		(87,620)		—		(91,783)
Amounts reclassified from AOCL	8,929		—		(770)		8,159
Net other comprehensive income (loss)	4,766		(87,620)		(770)		(83,624)
AOCL, June 30, 2022	$	(208,406)	$	(210,048)	$	4,503	$	(413,951)
Attributable to noncontrolling interests:
Balance, June 30, 2021	$	—	$	(3,982)	$	—	$	(3,982)
Other comprehensive income before reclassifications	—		(3,565)		—		(3,565)
Net other comprehensive loss	—		(3,565)		—		(3,565)
AOCL, June 30, 2022	$	—	$	(7,547)	$	—	$	(7,547)

The components of and changes in AOCL were as follows, net of tax, for the year ended June 30, 2021 (in thousands):

Attributable to Kennametal:	Pension and other postretirement benefits		Currency translation adjustment		Derivatives		Total
Balance, June 30, 2020	$	(232,634)	$	(181,027)	$	(3,581)	$	(417,242)
Other comprehensive income before reclassifications	9,107		58,599		9,255		76,961
Amounts reclassified from AOCL	10,355		—		(401)		9,954
Net other comprehensive income	19,462		58,599		8,854		86,915
AOCL, June 30, 2021	$	(213,172)	$	(122,428)	$	5,273	$	(330,327)
Attributable to noncontrolling interests:
Balance, June 30, 2020	$	—	$	(5,909)	$	—	$	(5,909)
Other comprehensive income before reclassifications	—		1,927		—		1,927
Net other comprehensive income	—		1,927		—		1,927
AOCL, June 30, 2021	$	—	$	(3,982)	$	—	$	(3,982)

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The components of and changes in AOCL were as follows, net of tax, for the year ended June 30, 2020 (in thousands):

Attributable to Kennametal:	Pension and other postretirement benefits		Currency translation adjustment		Derivatives		Total
Balance, June 30, 2019	$	(222,270)	$	(147,595)	$	(3,678)	$	(373,543)
Other comprehensive loss before reclassifications	(18,299)		(33,432)		(582)		(52,313)
Amounts reclassified from AOCL	7,935		—		679		8,614
Net other comprehensive (loss) income	(10,364)		(33,432)		97		(43,699)
AOCL, June 30, 2020	$	(232,634)	$	(181,027)	$	(3,581)	$	(417,242)
Attributable to noncontrolling interests:
Balance, June 30, 2019	$	—	$	(3,450)	$	—	$	(3,450)
Other comprehensive loss before reclassifications	—		(2,459)		—		(2,459)
Net other comprehensive loss	—		(2,459)		—		(2,459)
AOCL, June 30, 2020	$	—	$	(5,909)	$	—	$	(5,909)

Reclassifications out of AOCL for the years ended June 30, 2022, 2021 and 2020 consisted of the following:

	Year Ended June 30,
Details about AOCL components (in thousands)	2022		2021		2020		Affected line item in the Income Statement
(Gains) and losses on cash flow hedges:
Forward starting interest rate swaps	$	(1,020)	$	4,082	$	2,444	Interest expense
Currency exchange contracts	—		(24)		(1,545)		Other income, net
Total before tax	(1,020)		4,058		899
Tax impact	250		(4,459)		(220)		Provision for income taxes
Net of tax	$	(770)	$	(401)	$	679
Pension and other postretirement benefits:
Amortization of transition obligations	$	94	$	94	$	88	Other income, net
Amortization of prior service credit	(263)		(242)		(226)		Other income, net
Recognition of actuarial losses	11,999		13,913		10,616		Other income, net
Total before tax	11,830		13,765		10,478
Tax impact	(2,901)		(3,410)		(2,543)		Provision for income taxes
Net of tax	$	8,929	$	10,355	$	7,935

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The amount of income tax allocated to each component of other comprehensive income for the year ended June 30, 2022:

(in thousands)	Pre-tax		Tax impact		Net of tax
Reclassification of unrealized gain on expired derivatives designated and qualified as cash flow hedges	$	(1,020)	$	250	$	(770)
Unrecognized net pension and other postretirement benefit plans loss	(3,894)		(269)		(4,163)
Reclassification of net pension and other postretirement benefit plans loss	11,830		(2,901)		8,929
Foreign currency translation adjustments	(91,012)		(173)		(91,185)
Other comprehensive loss	$	(84,096)	$	(3,093)	$	(87,189)

The amount of income tax allocated to each component of other comprehensive loss for the year ended June 30, 2021:

(in thousands)	Pre-tax		Tax impact		Net of tax
Unrealized gain on derivatives designated and qualified as cash flow hedges	$	12,264	$	(3,009)	$	9,255
Reclassification of unrealized loss (gain) on expired derivatives designated and qualified as cash flow hedges	4,058		(4,459)		(401)
Unrecognized net pension and other postretirement benefit plans gain	11,901		(2,794)		9,107
Reclassification of net pension and other postretirement benefit plans loss	13,765		(3,410)		10,355
Foreign currency translation adjustments	61,038		(510)		60,528
Other comprehensive income	$	103,026	$	(14,182)	$	88,844

The amount of income tax allocated to each component of other comprehensive loss for the year ended June 30, 2020:

(in thousands)	Pre-tax		Tax impact		Net of tax
Unrealized loss on derivatives designated and qualified as cash flow hedges	$	(771)	$	189	$	(582)
Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges	899		(220)		679
Unrecognized net pension and other postretirement benefit plans loss	(23,999)		5,700		(18,299)
Reclassification of net pension and other postretirement benefit plans loss	10,478		(2,543)		7,935
Foreign currency translation adjustments	(35,936)		45		(35,891)
Other comprehensive loss	$	(49,329)	$	3,171	$	(46,158)

NOTE 16 — RESTRUCTURING AND RELATED CHARGES

FY20 Restructuring Actions

In the June quarter of fiscal 2019, we implemented, and in fiscal 2020 substantially completed, the FY20 Restructuring Actions associated with our simplification/modernization initiative to reduce structural costs, improve operational efficiency and position us for long-term profitable growth. Total restructuring and related charges since inception of $54.8 million were recorded for this program through June 30, 2021, consisting of: $46.6 million in Metal Cutting and $8.3 million in Infrastructure. The FY20 Restructuring Actions are considered complete.

FY21 Restructuring Actions

In the September quarter of fiscal 2020, we announced the initiation of restructuring actions in Germany associated with our simplification/modernization initiative to reduce structural costs. Subsequently, we agreed with local employee representatives to downsize our Essen, Germany operations instead of the previously proposed closure. During the fourth quarter of fiscal 2020, we also announced the acceleration of our other structural cost reduction plans.

Total restructuring and related charges since inception of $86.4 million, compared to a target of approximately $85 million, were recorded for this program through June 30, 2022, consisting of: $78.1 million in Metal Cutting and $8.3 million in Infrastructure. The FY21 Restructuring Actions are considered substantially complete.

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Annual Restructuring Charges

During 2022, we recorded restructuring and related charges of $4.2 million, which consisted of $3.6 million in Metal Cutting and $0.6 million in Infrastructure. Of this amount, a net benefit from the reversal of restructuring charges totaled $1.2 million and restructuring-related charges of $5.5 million were included in cost of goods sold.

During 2021, we recorded restructuring and related charges of $40.4 million, which consisted of $35.6 million in Metal Cutting and $4.8 million in Infrastructure. Of this amount, restructuring charges totaled $29.6 million, of which $0.5 million was related to inventory and was recorded in cost of goods sold. Restructuring-related charges of $10.8 million were included in cost of goods sold.

During 2020, we recorded restructuring and related charges of $83.3 million which consisted of $73.7 million in Metal Cutting and $8.8 million in Infrastructure. Of this amount, restructuring charges totaled $69.2 million, of which $0.9 million was related to inventory and was recorded in cost of goods sold. Restructuring-related charges of $14.1 million were included in cost of goods sold.

As of June 30, 2022, $6.0 million of the restructuring accrual is recorded in other current liabilities and $1.9 million is recorded in other liabilities in our consolidated balance sheet. As of June 30, 2021, $19.9 million of the restructuring accrual is recorded in other current liabilities and $9.9 million is recorded in other liabilities in our consolidated balance sheet. The amounts are as follows:

(in thousands)	June 30, 2021		Expense, net		Asset Write-Down		Translation		Cash Expenditures		June 30, 2022
Severance	$	29,723	$	(4,628)	$	—	$	(1,772)	$	(15,404)	$	7,919
Facilities	—		3,385		(3,385)		—		—		—
Other	—		—		—		—		—		—
Total	29,723		(1,243)		(3,385)		(1,772)		(15,404)		7,919

(in thousands)	June 30, 2020		Expense		Asset Write-Down		Translation		Cash Expenditures		June 30, 2021
Severance	$	47,303	$	23,917	$	—	$	2,445	$	(43,942)	$	29,723
Facilities	—		5,664		(5,664)		—		—		—
Other	63		—		—		2		(65)		—
Total	47,366		29,581		(5,664)		2,447		(44,007)		29,723

NOTE 17 — FINANCIAL INSTRUMENTS

The methods used to estimate the fair value of our financial instruments are as follows:

Cash and Cash Equivalents, Revolving and Other Lines of Credit and Notes Payable The carrying amounts approximate their fair value because of the short maturity of the instruments.

Long-Term Debt, Including Current Maturities Fixed rate debt had a fair market value of $536.1 million and $644.2 million at June 30, 2022 and 2021, respectively. The Level 2 fair value is determined based on the quoted market prices for similar debt instruments as of June 30, 2022 and 2021, respectively.

Interest Rate Swap Contracts During 2021, upon issuance of the Senior Unsecured Notes due 2031 (see Note 11 for more information) we settled the forward starting interest rate swap contracts used to hedge a portion of the interest rate risk related to the refinancing. The notional amount of the forward starting interest rate swap contracts at June 30, 2020 was $200.0 million. There were no interest rate swap contracts outstanding at June 30, 2022 or 2021.

Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist primarily of temporary cash investments and trade receivables. By policy, we make temporary cash investments with high credit quality financial institutions and limit the amount of exposure to any one financial institution. With respect to trade receivables, concentrations of credit risk are significantly reduced because we serve numerous customers in many industries and geographic areas.

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We are exposed to counterparty credit risk for nonperformance of derivatives and, in the unlikely event of nonperformance, to market risk for changes in interest and currency exchange rates, as well as settlement risk. We manage exposure to counterparty credit risk through credit standards, diversification of counterparties and procedures to monitor concentrations of credit risk. We do not anticipate nonperformance by any of the counterparties. As of June 30, 2022 and 2021, we had no significant concentrations of credit risk.

NOTE 18 — STOCK-BASED COMPENSATION

Stock Options

Changes in our stock options for 2022 were as follows:

	Options	Weighted Average Exercise Price		Weighted Average Remaining Life (years)	Aggregate Intrinsic value (in thousands)
Options outstanding, June 30, 2021	315,012	$	37.83
Exercised	(6,916)	31.69
Lapsed and forfeited	(36,253)	41.84
Options outstanding, June 30, 2022	271,843	$	37.45	1.9	$	33
Options vested and expected to vest, June 30, 2022	271,843	$	37.45	1.9	$	33
Options exercisable, June 30, 2022	271,843	$	37.45	1.9	$	33

As of June 30, 2022 and June 30, 2021, there was no unrecognized compensation cost related to options outstanding. All options were fully vested as of June 30, 2022 and June 30, 2021.

Tax benefits relating to excess stock-based compensation deductions are presented in the consolidated statements of cash flows as operating cash inflows. Tax benefits resulting from stock-based compensation deductions were less than the amounts reported for financial reporting purposes by $0.2 million in 2022, greater than the amounts reported for financial reporting purposes by $0.7 million in 2021, and an immaterial amount in 2020.

The amount of cash received from the exercise of capital stock options during 2022, 2021 and 2020 was $0.2 million, $6.6 million and $0.9 million, respectively. The related tax benefit was zero in 2022, $0.6 million in 2021, and was immaterial in 2020. The total intrinsic value of options exercised in 2022, 2021 and 2020 was $0.1 million, $2.4 million and $0.3 million, respectively.

Restricted Stock Units – Time Vesting and Performance Vesting

Performance vesting restricted stock units are earned based on both annual and three-year performance targets. The performance and time vesting restricted stock units are subject to a service condition that requires the individual to be employed by the Company at the payment date after a three-year period, with the exception of retirement eligible grantees, who upon retirement are entitled to receive payment for any units that have been earned, including a prorated portion in 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 2022 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, 2021	500,477	$	32.53	1,332,740	$	31.72
Granted	108,234	36.70		532,638	36.51
Vested	(38,620)	39.69		(534,462)	32.14
Performance metric adjustments, net	(150,711)	31.18		—	—
Forfeited	(68,425)	33.43		(117,020)	32.79
Unvested, June 30, 2022	350,955	$	33.44	1,213,896	$	33.53

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During 2022, 2021 and 2020, compensation expense related to time vesting and performance vesting restricted stock units was $20.1 million, $23.9 million and $15.3 million, respectively. Certain performance metrics were not met, resulting in an adjustment of 150,711 performance vesting stock units during 2022. As of June 30, 2022, the total unrecognized compensation cost related to unvested time vesting and performance vesting restricted stock units was $23.3 million and is expected to be recognized over a weighted average period of 1.7 years.

NOTE 19— 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 sites associated with our current or former operations.

We establish and maintain accruals for certain potential environmental liabilities. At June 30, 2022 and 2021, the balances of these liabilities were $12.5 million, of which $7.9 million was current, and $14.7 million, of which $2.6 million was current, respectively. These accruals represent anticipated costs associated with the remediation of these issues and are generally not discounted.

The accruals we have established for environmental liabilities represent our best current estimate of the probable and reasonably estimable costs of addressing 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 United States Environmental Protection Agency (USEPA), other governmental agencies and by the Potentially Responsible Party (PRP) groups in which we are participating. Although the accruals currently appear to be sufficient to cover these environmental obligations, 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 recorded and unrecorded 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.

Among other environmental laws, we are subject to the Comprehensive Environmental Response Compensation and Liability Act of 1980, under which we have been identified by the USEPA or other third party as a PRP with respect to environmental remedial costs at certain sites. We have evaluated our claims and potential liability associated with these sites based upon the best information currently available to us. We believe our environmental accruals will be adequate to cover our portion of the environmental remedial costs at those sites where we have been designated a PRP, to the extent these expenses are probable and reasonably estimable.

NOTE 20 — COMMITMENTS AND CONTINGENCIES

Legal Matters Various lawsuits arising during the normal course of business are pending against us. In our opinion, the ultimate liability, if any, resulting from these matters will have no significant effect on our consolidated financial position or results of operations.

Lease Commitments We lease a wide variety of facilities and equipment under operating leases, primarily for warehouses, production and office facilities and equipment. Refer to Note 9 for more information.

Purchase Commitments We have purchase commitments for materials, supplies and machinery and equipment as part of the ordinary conduct of business. Some of these commitments extend beyond one year and are based on minimum purchase requirements. We believe these commitments are not at prices in excess of current market.

Other Contractual Obligations We do not have material financial guarantees or other contractual commitments that are reasonably likely to adversely affect our liquidity.

Related Party Transactions Sales to affiliated companies were immaterial in 2022, 2021 and 2020. We do not have any other related party transactions that affect our operations, results of operations, cash flow or financial condition.

NOTE 21 — SEGMENT DATA

The Company manages and reports its business in the following two segments: Metal Cutting 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. Our reportable operating segments do not represent the aggregation of two or more operating segments.

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Sales to a single customer did not aggregate to five percent or more of total sales in 2022, 2021 and 2020.

METAL CUTTING The Metal Cutting segment develops and manufactures high performance tooling and metal cutting products and services and offers an assortment of standard and custom metal cutting solutions to diverse end markets, including aerospace, general engineering, energy and transportation. The products include milling, hole making, turning, threading and toolmaking systems used in the manufacture of airframes, aero engines, trucks and automobiles, ships and various types of industrial equipment. We leverage advanced manufacturing capabilities in combination with varying levels of customization to solve our customers’ toughest challenges and deliver improved productivity for a wide range of applications. Metal Cutting markets its products under the Kennametal®, WIDIA®, WIDIA Hanita® and WIDIA GTD® brands through its direct sales force, a network of independent and national 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.

INFRASTRUCTURE Our Infrastructure segment produces engineered tungsten carbide and ceramic components, earth-cutting tools, and advanced metallurgical powders, primarily for the energy, earthworks and general engineering end markets. These wear-resistant products include compacts, nozzles, frac seats and custom components used in oil and gas and petrochemical industries; rod blanks and abrasive water jet nozzles for general industries; earth cutting tools and systems used in underground mining, trenching and foundation drilling and road milling; tungsten carbide powders for the oil and gas, aerospace and process industries; and ceramics used by the packaging industry for metallization of films and papers. We combine deep metallurgical and engineering expertise with advanced manufacturing capabilities, such as 3D printing, to deliver solutions that drive improved productivity for our customers. Infrastructure markets its products primarily under the Kennametal® brand and sells through a direct sales force as well as through distributors.

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Segment data is summarized as follows: 

(in thousands)	2022		2021		2020
Sales:
Metal Cutting	$	1,227,273	$	1,150,746	$	1,178,053
Infrastructure	785,183		690,695		707,252
Total sales	$	2,012,456	$	1,841,441	$	1,885,305
Operating income:
Metal Cutting	$	121,386	$	45,855	$	985
Infrastructure	98,871		59,461		23,113
Corporate	(2,117)		(3,148)		(1,846)
Total operating income	$	218,140	$	102,168	$	22,252
Interest expense	$	25,914	$	46,375	$	35,154
Other income, net	(14,507)		(8,867)		(14,862)
Income before income taxes	$	206,733	$	64,660	$	1,960
Depreciation and amortization:
Metal Cutting	$	87,986	$	81,796	$	74,664
Infrastructure	43,691		44,661		45,176
Corporate	1		31		20
Total depreciation and amortization	$	131,678	$	126,488	$	119,860
Segment assets(4):
Metal Cutting	$	1,469,835	$	1,532,177	$	1,452,131
Infrastructure	768,226		698,766		748,424
Corporate	335,463		434,818		837,036
Total assets	$	2,573,524	$	2,665,761	$	3,037,591
Capital expenditures:
Metal Cutting	$	64,055	$	103,812	$	195,167
Infrastructure	32,869		23,490		48,984
Total capital expenditures	$	96,924	$	127,302	$	244,151

(4) Metal Cutting and Infrastructure segment assets are principally accounts receivable, less allowance for doubtful accounts; inventories; property, plant and equipment, net; goodwill; other intangible assets, net of accumulated amortization; and operating lease ROU assets. Corporate assets are principally cash and cash equivalents, other current assets, long-term prepaid pension benefit, deferred income taxes and other assets.

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

(in thousands)	2022		2021		2020
Sales:
United States	$	797,768	$	692,106	$	778,054
Germany	262,764		260,792		248,796
China	234,997		242,815		214,364
Canada	94,956		79,891		90,247
India	108,695		94,966		81,366
Italy	67,930		59,955		52,699
France	47,218		45,356		45,817
United Kingdom	30,686		28,464		33,305
Other(5)	367,442		337,096		340,657
Total sales	$	2,012,456	$	1,841,441	$	1,885,305
Total long-lived assets:
United States	$	585,003	$	611,724	$	607,222
Germany	195,325		218,250		210,674
China	92,315		97,404		92,658
India	45,146		19,144		20,508
Israel	26,864		44,504		44,673
Canada	18,478		21,790		22,249
Other (5)	38,910		42,319		40,287
Total long-lived assets(6)	$	1,002,041	$	1,055,135	$	1,038,271

(5) Other does not contain any country that individually exceeds 2 percent of total sales or total long-lived assets, respectively.

(6) Total long-lived assets as of June 30, 2022, 2021 and 2020 include property, plant, and equipment, net.

The following table presents Kennametal's revenue disaggregated by segment by geography:

	Metal Cutting						Infrastructure						Total Kennametal
	2022		2021		2020		2022		2021		2020		2022		2021		2020
Americas	41	%	38	%	42	%	59	%	57	%	62	%	48	%	45	%	49	%
EMEA	37		39		37		18		19		18		30		31		30
Asia Pacific	22		23		21		23		24		20		22		24		21

The following table presents Kennametal's revenue disaggregated by segment by end market:

	Metal Cutting						Infrastructure						Total Kennametal
	2022		2021		2020		2022		2021		2020		2022		2021		2020
General Engineering	56	%	54	%	53	%	34	%	35	%	34	%	47	%	47	%	46	%
Transportation	27		30		27		—		—		—		17		19		17
Aerospace	9		8		12		—		—		—		6		5		7
Energy	8		8		8		29		26		28		16		15		16
Earthworks	—		—		—		37		39		38		14		14		14

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ITEM 9 — CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A — CONTROLS AND PROCEDURES

(a)Evaluation of Disclosure Controls and Procedures

The Company’s management evaluated, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, the effectiveness of the Company’s disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of June 30, 2022. The Company’s disclosure controls were designed to provide a reasonable assurance that information required to be disclosed in reports that we file or submit under the Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission. It should be noted that the design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote. However, the controls have been designed to provide reasonable assurance of achieving the controls’ stated goals. Based on that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures are effective to provide reasonable assurance at June 30, 2022 that information required to be disclosed in the reports that we file or submit under the Exchange Act is (i) accumulated and communicated to management, including the Company’s Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure and (ii) recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission.

(b)Management’s Report on Internal Control over Financial Reporting

Management’s Report on Internal Control over Financial Reporting is included in Item 8 of this Annual Report and incorporated herein by reference.

(c)Attestation Report of the Independent Registered Public Accounting Firm

The effectiveness of Kennametal’s internal control over financial reporting as of June 30, 2022 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report included in Item 8 of this Annual Report, which is incorporated herein by reference.

(d)Changes in Internal Control over Financial Reporting

There have been no changes in internal control over financial reporting that occurred during the fourth quarter of 2022 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

ITEM 9B — OTHER INFORMATION

None.

ITEM 9C — DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

Not applicable.

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PART III

ITEM 10 — DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

INFORMATION ABOUT OUR EXECUTIVE OFFICERS

Information regarding the executive officers of Kennametal Inc. is as follows: Name, Age, Position, and Experience during the Past Five Years (1).

Christopher Rossi, 58

President and Chief Executive Officer

President and Chief Executive Officer since August 2017; Formerly, Chief Executive Officer of Dresser-Rand at Siemens Aktiengesellschaft (provides custom-engineered rotating equipment for applications in the oil, gas, process, power, and other industries), from September 2015 to May 2017; Executive Vice President of Global Operations at Dresser-Rand Group Inc. from September 2012 to September 2015.

Judith L. Bacchus, 60

Vice President and Chief Administrative Officer

Vice President and Chief Administrative Officer since May 2019; Vice President and Chief Human Resources and Corporate Relations Officer since December 2015; Vice President and Chief Human Resources Officer from June 2011 to November 2015.

Franklin Cardenas, 54

Vice President, Kennametal Inc. and President, Infrastructure Business Segment

Vice President, Kennametal Inc. and President, Infrastructure Business Segment since February 2020; Formerly, Vice President of Asia Pacific for the Donaldson Company (a global leader in the filtration industry) from 2016 to 2020 and Vice President, Global Engine Aftermarket from 2010 to 2016. He started at Donaldson Company in 1995 and held roles of increasing responsibility until 2020.

Sanjay Chowbey, 54

President, Metal Cutting

President, Metal Cutting since June 2021; Formerly, President, Services and Solutions of Flowserve from 2019 to 2021 and Senior Vice President and President of TE SubCom from 2017 to 2018. Previously spent over 11 years at Danaher / Fortive Corporation (from 2006 through 2017) serving in various roles of increasing responsibility, the latest being President, Thomson Industries.

Michelle R. Keating, 46

Vice President, Secretary and General Counsel, Kennametal Inc.

Vice President, Secretary and General Counsel, Kennametal Inc. since December 2016; Vice President, Secretary and Interim General Counsel from July 2016 to December 2016; Vice President, Associate General Counsel & Assistant Secretary from March 2016 to July 2016; Assistant General Counsel & Assistant Secretary from August 2011 to February 2016.

Carlonda R. Reilly, 54

Vice President and Chief Technology Officer

Vice President and Chief Technology Officer since September 2018; Formerly, Global Technology Director in Transportation and Advanced Polymers business at DuPont (chemical company) from January 2016 to September 2018 and Global Technology Director in Building Innovations at DuPont from 2013 to January 2016.

Patrick S. Watson, 49

Vice President Finance and Chief Financial Officer

Vice President Finance and Chief Financial Officer since June 2022; Formerly, Vice President Finance and Corporate Controller, Kennametal Inc. from March 2017 to June 2022; Vice President Finance - Industrial Business from March 2014 to February 2017; Director Finance, Kennametal EMEA from August 2011 to August 2014.

John W. Witt, 43

Vice President Finance and Corporate Controller

Vice President Finance and Corporate Controller since June 2022; Formerly, Director, Internal Audit, Kennametal Inc. from April 2019 to June 2022; Assistant Corporate Controller, Kennametal Inc. from August 2018 to April 2019; Assurance Director at PricewaterhouseCoopers ("PwC") from July 2016 to August 2018 and prior to this in other roles of increasing responsibility at PwC.

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(1) Each executive officer has been elected by the Board of Directors to serve until removed or until a successor is elected and qualified. Unless otherwise noted, none of the executive officers (i) has an arrangement or understanding with any other person(s) pursuant to which he or she was selected as an officer, (ii) has any family relationship with any director or executive officer of the Company, or (iii) is involved in any legal proceeding which would require disclosure under this item.

Incorporated herein by reference is the information to be provided under the captions “Proposal I. Election of Directors” in our definitive proxy statement to be filed with the Securities and Exchange Commission within 120 days after June 30, 2022 (2022 Proxy Statement). Also incorporated herein by reference is the information to be set forth under the caption “Ethics and Corporate Governance-Code of Conduct” and "Ethics and Corporate Governance-Corporate Governance" in the 2022 Proxy Statement.

The Company has a separately designated standing Audit Committee established in accordance with Section 3(a) (58) (A) of the Exchange Act. The members of the Audit Committee are: William M. Lambert (Chair); Lorraine M. Martin; Sagar A. Patel; and Steven H. Wunning. Incorporated herein by reference is the information provided under the caption “Board of Directors and Board Committees-Committee Functions-Audit Committee” in the 2022 Proxy Statement.

ITEM 11 — EXECUTIVE COMPENSATION

Incorporated herein by reference from our 2022 Proxy Statement is the information to be set forth under the captions “Executive Compensation, Compensation Discussion and Analysis,” "Compensation Committee Report," "Analysis of Risk Inherent in our Compensation Policies and Practices," "Executive Compensation Tables," "2022 Nonqualified Deferred Compensation," "Retirement Programs" and "Potential Payments Upon Termination or Change in Control." Also incorporated herein by reference from our 2022 Proxy Statement is the information to be set forth under the captions “Board of Directors Compensation and Benefits” and “Board of Directors and Board Committees - Committee Functions - Compensation Committee Interlocks and Insider Participation."

ITEM 12 — SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

Incorporated herein by reference from our 2022 Proxy Statement are: (i) the information to be set forth under the caption “Equity Compensation Plans,” (ii) the information to be set forth under the caption “Ownership of Capital Stock by Directors, Nominees and Executive Officers” with respect to the directors’ and officers’ shareholdings; and (iii) the information to be set forth under the caption “Principal Holders of Voting Securities” with respect to other beneficial owners.

ITEM 13 — CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

Incorporated herein by reference is the information to be set forth under the captions “Ethics and Corporate Governance-Corporate Governance-Board of Director Review and Approval of Related Person Transactions,” “Executive Compensation,” “Executive Compensation Tables” and “Ethics and Corporate Governance-Corporate Governance-Board Composition and Independence” in the 2022 Proxy Statement.

ITEM 14 — PRINCIPAL ACCOUNTING FEES AND SERVICES

Incorporated herein by reference is the information with respect to pre-approval policies set forth under the caption “Proposal II. Ratification of PricewaterhouseCoopers LLP (PCAOB ID 238) as our Independent Registered Public Accounting Firm for the Fiscal Year ending June 30, 2023-Audit Committee Pre-Approval Policy” and the information with respect to principal accountant fees and services set forth under “Proposal II. Ratification of PricewaterhouseCoopers LLP as our Independent Registered Public Accounting Firm for the Fiscal Year ending June 30, 2023-Fees and Services” to be set forth in the 2022 Proxy Statement.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. 

	KENNAMETAL INC.
Date: August 10, 2022	By:	/s/ John W. Witt
		John W. Witt
		Vice President Finance and Corporate Controller

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

SIGNATURE	TITLE	DATE
/s/ CHRISTOPHER ROSSI Christopher Rossi	President and Chief Executive Officer	August 10, 2022
/s/ PATRICK S. WATSON Patrick S. Watson	Vice President and Chief Financial Officer	August 10, 2022
/s/ JOHN W. WITT John W. Witt	Vice President Finance and Corporate Controller	August 10, 2022
/s/ LAWRENCE W. STRANGHOENER Lawrence W. Stranghoener	Chairman of the Board	August 10, 2022
/s/ JOSEPH ALVARADO Joseph Alvarado	Director	August 10, 2022
/s/ CINDY L. DAVIS Cindy L. Davis	Director	August 10, 2022
/s/ WILLIAM J. HARVEY William J. Harvey	Director	August 10, 2022
/s/ WILLIAM M. LAMBERT William M. Lambert	Director	August 10, 2022
/s/ LORRAINE M. MARTIN Lorraine M. Martin	Director	August 10, 2022
/s/ SAGAR A. PATEL Sagar A. Patel	Director	August 10, 2022
/s/ STEVEN H. WUNNING Steven H. Wunning	Director	August 10, 2022

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PART IV

ITEM 15 — EXHIBITS, FINANCIAL STATEMENT SCHEDULES

(a) Documents filed as part of this Form 10-K report.

1. Financial Statements included in Part II, Item 8

2. Financial Statement Schedule

The financial statement schedule required by Part II, Item 8 of this document is filed as part of this report. All of the other schedules are omitted as the required information is inapplicable or the information is presented in our consolidated financial statements or related notes.

FINANCIAL STATEMENT SCHEDULE Page 77

Schedule II—Valuation and Qualifying Accounts for the Years Ended June 30, 2022, 2021 and 2020     

3. Exhibits

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3	Articles of Incorporation and Bylaws
3.1	Articles of Incorporation of Kennametal Inc., as amended and restated through October 28, 2014	Exhibit 3.(i) of the Form 8-K filed October 30, 2014 (File No. 001-05318) is incorporated herein by reference.
3.2	By-Laws of Kennametal Inc., as amended and restated through July 26, 2016	Exhibit 10.1 of the Form 8-K filed July 28, 2016 (File No. 001-05318) is incorporated herein by reference.
4	Instruments Defining the Rights of Security Holders, Including Indentures
4.1	Indenture, dated as of June 19, 2002, by and between the Registrant and Bank One Trust Company, N.A., as trustee	Exhibit 4.1 of the Form 8-K filed June 20, 2002 (File No. 001-05318) is incorporated herein by reference.
4.2	First Supplemental Indenture, dated as of June 19, 2002, by and between the Registrant and Bank One Trust Company, N.A., as trustee	Exhibit 4.2 of the Form 8-K filed June 20, 2002 (File No. 001-05318) is incorporated herein by reference.
4.3	Indenture dated February 14, 2012 between Kennametal Inc. and U.S. Bank National Association	Exhibit 4.1 of the Form 8-K filed February 14, 2012 (File No. 001-05318) is incorporated herein by reference.
4.4	First Supplemental Indenture dated February 14, 2012 between Kennametal Inc. and U.S. Bank National Association (including Form of 3.875% Note due 2022)	Exhibit 4.2 of the Form 8-K filed February 14, 2012 (File No. 001-05318) is incorporated herein by reference.
4.5	Second Supplemental Indenture dated November 7, 2012 between Kennametal Inc. and U.S. Bank National Association (including Form of 2.650% Note due 2019)	Exhibit 4.4 of the Form 8-K filed November 7, 2012 (File No. 001-05318) is incorporated herein by reference.
4.6	Third Supplemental Indenture dated June 7, 2018 between Kennametal Inc. and U.S. Bank National Association (including Form of 4.625% Note due June 15, 2028).	Exhibit 4.1 of the Form 8-K filed June 7, 2018 (File No. 001-05318) is incorporated herein by reference.
4.7	Fourth Supplemental Indenture dated February 23, 2021 between Kennametal Inc. and U.S. Bank National Association	Exhibit 4.1 of the Form 8-K filed February 23, 2021 (File No. 001-05318) is incorporated herein by reference.
4.8	Form of 2.800% Senior Note due March 1, 2031 (form included in Fourth Supplemental Indenture)	Exhibit 4.1 of the Form 8-K filed February 23, 2021 (File No. 001-05318) is incorporated herein by reference.
4.9	Description of Registrant's Securities	Filed herewith.
10	Material Contracts
10.1*	Deferred Fee Plan for Outside Directors, as amended and restated effective December 30, 2008	Exhibit 10.1 of the December 31, 2008 Form 10-Q filed February 4, 2009 (File No. 001-05318) is incorporated herein by reference.
10.2*	Directors Stock Incentive Plan, as amended and restated effective December 30, 2008	Exhibit 10.2 of the December 31, 2008 Form 10-Q filed February 4, 2009 (File No. 001-05318) is incorporated herein by reference.
10.3*	Performance Bonus Stock Plan of 1995, as amended and restated effective December 30, 2008	Exhibit 10.3 of the December 31, 2008 Form 10-Q filed February 4, 2009 (File No. 001-05318) is incorporated herein by reference.
10.4*	Kennametal Inc. Stock and Incentive Plan of 2002 (as amended on October 21, 2008)	Appendix A to the 2008 Proxy Statement filed September 8, 2008 (File No. 001-05318) is incorporated herein by reference.
10.5*	Form of Indemnification Agreement for Named Executive Officers	Exhibit 10.2 of the Form 8-K filed March 22, 2005 (File No. 001-05318) is incorporated herein by reference.
10.6*	Schedule of Named Executive Officers who have entered into the Form of Indemnification Agreement as set forth in Exhibit 10.5	Filed herewith.
10.7*	Kennametal Inc. Executive Retirement Plan (for Designated Officers) (as amended effective December 30, 2008)	Exhibit 10.8 of the December 31, 2008 Form 10-Q filed February 4, 2009 (File No. 001-05318) is incorporated herein by reference.
10.8*	Amendment No. 1 to Kennametal Inc. Executive Retirement Plan (dated January 27, 2015)	Exhibit 10.2 to the Form 8-K dated February 2, 2015 (File No. 001-05318) is incorporated herein by reference.
10.9*	Amendment No. 2 to Kennametal Inc. Executive Retirement Plan (dated June 18, 2015)	Exhibit 10.1 of the Form 8-K filed June 23, 2015 (File No. 001-05318) is incorporated herein by reference.
10.10*	Kennametal Inc. Supplemental Executive Retirement Plan (as amended effective December 30, 2008)	Exhibit 10.9 of the December 31, 2008 Form 10-Q filed February 4, 2009 (File No. 001-05318) is incorporated herein by reference.
10.11*	Amendment No. 1 to the Kennametal Inc. Supplemental Executive Retirement Plan (as amended effective December 30, 2008) (dated June 18, 2015)	Exhibit 10.2 of the Form 8-K filed June 23, 2015 (File No. 001-05318) is incorporated herein by reference.

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10.12*	Description of Compensation Payable to Non-Employee Directors	Exhibit 10.12 of the Form 10-K filed August 10, 2018 (File No. 001-05318) is incorporated herein by reference.
10.13*	Form of Kennametal Inc. Nonstatutory Stock Option Award (granted under the Kennametal Inc. Stock and Incentive Plan of 2010)	Exhibit 10.5 of Form 10-Q filed February 8, 2011 (File No. 001-05318) is incorporated herein by reference.
10.14*	Form of Kennametal Inc. Nonstatutory Stock Option Award for Non-Employee Directors (granted under the Kennametal Inc. Stock and Incentive Plan of 2010)	Exhibit 10.6 of Form 10-Q filed February 8, 2011 (File No. 001-05318) is incorporated herein by reference
10.15*	Form of Officer’s Employment Agreement with certain Named Executive Officers	Exhibit 10.1 of Form 8-K filed May 13, 2011 (File No. 001-05318) is incorporated herein by reference.
10.16*	Schedule of Executive Officers who have entered into the Form of Officer's Employment Agreement as set forth in Exhibit 10.15	Exhibit 10.16 of the Form 10-K filed August 13, 2019 (File No. 001-05318) is incorporated herein by reference.
10.17*	Stock and Incentive Plan of 2010 (As Amended and Restated October 22, 2013)	Appendix A of the 2013 Proxy Statement filed September 17, 2013 (File No. 001-05318) is incorporated herein by reference.
10.18*	Form of Kennametal Inc. Restricted Unit Award (granted under the Kennametal Inc. Stock and Incentive Plan of 2010 (As Amended and Restated October 22, 2013))	Exhibit 10.39 of Form 10-K filed August 13, 2014 (File No. 001-05318) is incorporated herein by reference.
10.19*	Form of Kennametal Inc. Nonstatutory Stock Option Award (granted under the Kennametal Inc. Stock and Incentive Plan of 2010 (As Amended and Restated October 22, 2013))	Exhibit 10.41 of Form 10-K filed August 13, 2014 (File No. 001-05318) is incorporated herein by reference.
10.20*	Form of Kennametal Inc. Nonstatutory Stock Option Award for Non-Employee Directors (granted under the Kennametal Inc. Stock and Incentive Plan of 2010 (As Amended and Restated October 22, 2013))	Exhibit 10.42 of Form 10-K filed August 13, 2014 (File No. 001-05318) is incorporated herein by reference.
10.21*	Form of Kennametal Inc. Cash Settled Share-Based Award for China-based Employees (granted under the Kennametal Inc. Stock and Incentive Plan of 2010 (As Amended and Restated October 22, 2013))	Exhibit 10.43 of Form 10-K filed August 13, 2014 (File No. 001-05318) is incorporated herein by reference.
10.22*	Form of Kennametal Inc. Restricted Unit Award - Alternate Form (granted under the Kennametal Inc. Stock and Incentive Plan of 2010 (As Amended and Restated October 22, 2013))	Exhibit 10.45 of Form 10-K filed August 13, 2014 (File No. 001-05318) is incorporated herein by reference.
10.23*	Form of Kennametal Inc. Nonstatutory Stock Option Award - Alternate Form (granted under the Kennametal Inc. Stock and Incentive Plan of 2010 (As Amended and Restated October 22, 2013))	Exhibit 10.46 of Form 10-K filed August 13, 2014 (File No. 001-05318) is incorporated herein by reference.
10.24*	Amendment No. 1 to the Kennametal Inc. Stock and Incentive Plan of 2010 (As Amended and Restated October 22, 2013)	Exhibit 10.1 to the Form 8-K dated February 2, 2015 (File No. 001-05318) is incorporated herein by reference.
10.25*	Form of Kennametal Inc. Performance Unit Award (granted under Amendment No. 1 to the Kennametal Inc. Stock and Incentive Plan of 2010 (As Amended and Restated October 22, 2013))	Exhibit 10.3 to the Form 8-K dated February 2, 2015 (File No. 001-05318) is incorporated herein by reference.
10.26*	Form of Kennametal Inc. Restricted Unit Award (granted under Amendment No. 1 to the Kennametal Inc. Stock and Incentive Plan of 2010 (As Amended and Restated October 22, 2013))	Exhibit 10.4 to the Form 8-K dated February 2, 2015 (File No. 001-05318) is incorporated herein by reference.
10.27*	Form of Kennametal Inc. Restricted Unit Award for Non-Employee Directors (granted under Amendment No. 1 to the Kennametal Inc. Stock and Incentive Plan of 2010 (As Amended and Restated October 22, 2013))	Exhibit 10.5 to the Form 8-K dated February 2, 2015 (File No. 001-05318) is incorporated herein by reference.
10.28*	Form of Kennametal Inc. Restricted Unit Award - Alternate Form (granted under Amendment No. 1 to the Kennametal Inc. Stock and Incentive Plan of 2010 (As Amended and Restated October 22, 2013))	Exhibit 10.6 to the Form 8-K dated February 2, 2015 (File No. 001-05318) is incorporated herein by reference.
10.29*	Form of Kennametal Inc. Nonstatutory Stock Option Award (granted under Amendment No. 1 to the Kennametal Inc. Stock and Incentive Plan of 2010 (As Amended and Restated October 22, 2013))	Exhibit 10.8 to the Form 8-K dated February 2, 2015 (File No. 001-05318) is incorporated herein by reference.
10.30*	Form of Kennametal Inc. Nonstatutory Stock Option Award for Non-Employee Directors (granted under Amendment No. 1 to the Kennametal Inc. Stock and Incentive Plan of 2010 (As Amended and Restated October 22, 2013))	Exhibit 10.9 to the Form 8-K dated February 2, 2015 (File No. 001-05318) is incorporated herein by reference.
10.31*	Form of Kennametal Inc. Nonstatutory Stock Option Award - Alternate Form (granted under Amendment No. 1 to the Kennametal Inc. Stock and Incentive Plan of 2010 (As Amended and Restated October 22, 2013))	Exhibit 10.10 to the Form 8-K dated February 2, 2015 (File No. 001-05318) is incorporated herein by reference.
10.32*	Form of Kennametal Inc. Cash Settled Share-Based Award for China-based Employees (granted under Amendment No. 1 to the Kennametal Inc. Stock and Incentive Plan of 2010 (As Amended and Restated October 22, 2013))	Exhibit 10.12 to the Form 8-K dated February 2, 2015 (File No. 001-05318) is incorporated herein by reference.

73

10.33*	Form of Kennametal Inc. Performance Unit Award (granted under Amendment No. 1 to the Kennametal Inc. Stock and Incentive Plan of 2010 (As Amended and Restated October 22, 2013))	Exhibit 10.1 to the Form 8-K dated July 30, 2015, (File No. 001-05318) is incorporated herein by reference.
10.34*	Form of Kennametal Inc. Restricted Unit Award (granted under Amendment No. 1 to the Kennametal Inc. Stock and Incentive Plan of 2010 (As Amended and Restated October 22, 2013))	Exhibit 10.3 to the Form 8-K dated July 30, 2015, (File No. 001-05318) is incorporated herein by reference.
10.35*	Form of Kennametal Inc. Restricted Unit Award - Alternate Form (granted under Amendment No. 1 to the Kennametal Inc. Stock and Incentive Plan of 2010 (As Amended and Restated October 22, 2013))	Exhibit 10.5 to the Form 8-K dated July 30, 2015, (File No. 001-05318) is incorporated herein by reference.
10.36*	Form of Kennametal Inc. Cash Settled Share-Based Award for China-based Employees (granted under Amendment No. 1 to the Kennametal Inc. Stock and Incentive Plan of 2010 (As Amended and Restated October 22, 2013))	Exhibit 10.6 to the Form 8-K dated July 30, 2015, (File No. 001-05318) is incorporated herein by reference.
10.37*	Form of Kennametal Inc. Nonstatutory Stock Option Award (granted under Amendment No. 1 to the Kennametal Inc. Stock and Incentive Plan of 2010 (As Amended and Restated October 22, 2013))	Exhibit 10.7 to the Form 8-K dated July 30, 2015, (File No. 001-05318) is incorporated herein by reference.
10.38*	Form of Kennametal Inc. Nonstatutory Stock Option Award - Alternate Form (granted under Amendment No. 1 to the Kennametal Inc. Stock and Incentive Plan of 2010 (As Amended and Restated October 22, 2013))	Exhibit 10.9 to the Form 8-K dated July 30, 2015, (File No. 001-05318) is incorporated herein by reference.
10.39*	Kennametal Inc. 2016 Stock and Incentive Plan	Appendix C of 2016 Proxy Statement filed September 13, 2016 (File No. 001-05318) is incorporated by reference herein.
10.40*	Form of Kennametal Inc. Performance Unit Award (granted under Kennametal Inc. Stock and Incentive Plan of 2010, as amended and restated on October 22, 2013, and amended on January 27, 2015)	Exhibit 10.1 of the Form 10-Q filed November 7, 2016 (File No. 001-05318) is incorporated by reference herein.
10.41*	Form of Kennametal Inc. Restricted Unit Award (granted under the Kennametal Inc. 2016 Stock and Incentive Plan)	Exhibit 10.4 of the Form 10-Q filed November 7, 2016 (File No. 001-05318) is incorporated by reference herein.
10.42*	Form of Kennametal Inc. Cash Settled Share-Based Award for China-Based Employees (granted under the Kennametal Inc. 2016 Stock and Incentive Plan)	Exhibit 10.5 of the Form 10-Q filed November 7, 2016 (File No. 001-05318) is incorporated by reference herein.
10.43*	Form of Kennametal Inc. Restricted Stock Unit Award (three year cliff vest) (granted under the Kennametal Inc. 2016 Stock and Incentive Plan)	Exhibit 10.1 of the Form 10-Q filed February 8, 2017 (File No. 001-05318) is incorporated by reference herein.
10.44*	Form of Updated Kennametal Inc. Restricted Unit Award (granted under the Kennametal Inc. Stock and Incentive Plan of 2016)	Exhibit 10.74 to Form 10-K filed August 14, 2017 (File No. 001-05318) is incorporated by reference herein.
10.45*	Form of Kennametal Inc. Restricted Unit Award for Non-Employee Directors (granted under the Kennametal Inc. Stock and Incentive Plan of 2016)	Exhibit 10.75 to Form 10-K filed August 14, 2017 (File No. 001-05318) is incorporated by reference herein.
10.46*	Form of Kennametal Inc. Cash-Settled Restricted Unit Award for China-based Employees (granted under the Kennametal Inc. Stock and Incentive Plan of 2016)	Exhibit 10.76 to Form 10-K filed August 14, 2017 (File No. 001-05318) is incorporated by reference herein.
10.47*	Form of Updated Kennametal Inc. Cash-Settled Restricted Unit Award for China-based Employees (granted under the Kennametal Inc. Stock and Incentive Plan of 2016)	Exhibit 10.52 to Form 10-K filed August 13, 2019 (File No. 001-05318) is incorporated by reference herein.
10.48*	Form of Kennametal Inc. Performance Unit Award (granted under the Kennametal Inc. Stock and Incentive Plan of 2016)	Exhibit 10.77 to Form 10-K filed August 14, 2017 (File No. 001-05318) is incorporated by reference herein.
10.49*	Form of Fiscal 2020 Kennametal Inc. Performance Unit Award (granted under the Kennametal Inc. Stock and Incentive Plan of 2016)	Exhibit 10.54 to Form 10-K filed August 13, 2019 (File No. 001-05318) is incorporated by reference herein.
10.50*	Form of Kennametal Inc. Retention Restricted Unit Award (granted under the Kennametal Inc. Stock and Incentive Plan of 2016)	Exhibit 10.78 to Form 10-K filed August 14, 2017 (File No. 001-05318) is incorporated by reference herein.
10.51*	Form of Amended and Restated Officer's Employment Agreement with President and CEO Christopher Rossi	Exhibit 10.2 to Form 10-Q filed November 6, 2018 (File No. 001-05318) is incorporated by reference herein.
10.52*	Kennametal Inc. Restoration Plan (dated January 1, 2018)	Exhibit 10.1 of the Form 8-K filed November 3, 2017 (File No. 001-05318) is incorporated herein by reference.
10.53*	Kennametal Inc. Restoration Plan Adoption Agreement (dated January 1, 2018)	Exhibit 10.2 of the Form 8-K filed November 3, 2017 (File No. 001-05318) is incorporated herein by reference.
10.54*	Second Amendment to the Kennametal Inc. Restoration Plan (dated July 1, 2019)	Exhibit 10.59 to Form 10-K filed August 13, 2019 (File No. 001-05318) is incorporated by reference herein.
10.55*	2018 Form of Officer’s Employment Agreement with certain Named Executive Officers	Exhibit 10.60 of the Form 10-K filed August 10, 2018 (File No. 001-05318) is incorporated by reference herein.
10.56*	Schedule of Executive Officers who have entered into the 2018 Form of Officer's Employment Agreement as set forth in Exhibit 10.55	Filed herewith.

74

10.57	Sixth Amended and Restated Credit Agreement dated as of June 14, 2022, among Kennametal Inc. and Kennametal Europe GmbH (the “Borrowers”) and the several banks and other financial institutions or entities from time to time parties thereto (the “Lenders”), Bank of America, N.A., London Branch, as Euro Swingline Lender, PNC Bank, National Association and JPMorgan Chase Bank, N.A., as co-syndication agents, BNP Paribas, Citizens Bank, N.A., Mizuho Bank, Ltd., and U.S. Bank National Association, as co-documentation agents and Bank of America, N.A., as administrative agent.	Exhibit 10.1 of the Form 8-K filed June 15, 2022 (File No. 001-05318) is incorporated herein by reference.
10.58*	Form of Kennametal Inc. Restricted Unit Award (three-year cliff vest) (granted under the 2020 Kennametal Inc. Stock and Incentive Plan)	Exhibit 10.1 of the Form 10-Q filed February 3, 2021 (File No. 001-05318) is incorporated herein by reference.
10.59*	Form of Kennametal Inc. Restricted Unit Award (two-year cliff vest) (granted under the 2020 Kennametal Inc. Stock and Incentive Plan)	Exhibit 10.2 of the Form 10-Q filed February 3, 2021 (File No. 001-05318) is incorporated herein by reference.
10.60*	Form of Kennametal Inc. Cash-Settled Long-Term Incentive Award for China-based employees (two-year cliff vest) (granted under the 2020 Kennametal Inc. Stock and Incentive Plan)	Exhibit 10.3 of the Form 10-Q filed February 3, 2021 (File No. 001-05318) is incorporated herein by reference.
10.61*	Form of Kennametal Inc. Restricted Unit Award for Non-Employee Directors (granted under the 2020 Kennametal Inc. Stock and Incentive Plan)	Exhibit 10.4 of the Form 10-Q filed February 3, 2021 (File No. 001-05318) is incorporated herein by reference.
10.62*	Form of Kennametal Inc. Restricted Unit Award (granted under the 2020 Kennametal Inc. Stock and Incentive Plan)	Exhibit 10.5 of the Form 10-Q filed February 3, 2021 (File No. 001-05318) is incorporated herein by reference.
10.63*	Form of Kennametal Inc. Cash-Settled Long-Term Incentive Award for China-based employees (granted under the 2020 Kennametal Inc. Stock and Incentive Plan)	Exhibit 10.6 of the Form 10-Q filed February 3, 2021 (File No. 001-05318) is incorporated herein by reference.
10.64*	Form of Kennametal Inc. Performance Unit Award (granted under the 2020 Kennametal Inc. Stock and Incentive Plan)	Exhibit 10.65 to Form 10-K filed August 10, 2021 (File No. 001-05318) is incorporated by reference herein.
10.65*	Kennametal Inc. 2020 Stock and Incentive Plan	Appendix B of 2020 Proxy Statement filed September 15, 2020 (File No. 001-05318) is incorporated by reference herein.
21	Subsidiaries of the Registrant	Filed herewith.
23	Consent of Independent Registered Public Accounting Firm	Filed herewith.
31	Certifications
31.1	Certification executed by Christopher Rossi, President and Chief Executive Officer of Kennametal Inc.	Filed herewith.
31.2	Certification executed by Patrick S. Watson, Vice President and Chief Financial Officer of Kennametal Inc.	Filed herewith.
32	Section 1350 Certifications
32.1	Certification Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, executed by Christopher Rossi, President and Chief Executive Officer of Kennametal Inc.; and Patrick S. Watson, Vice President and Chief Financial Officer of Kennametal Inc.	Filed herewith.
*Denotes management contract or compensatory plan or arrangement.
101	XBRL
101.INS(1)	XBRL Instance Document.	Filed herewith.
101.SCH(2)	XBRL Taxonomy Extension Schema Document.	Filed herewith.
101.CAL(2)	XBRL Taxonomy Extension Calculation Linkbase Document.	Filed herewith.
101.DEF(2)	XBRL Taxonomy Definition Linkbase	Filed herewith.
101.LAB(2)	XBRL Taxonomy Extension Label Linkbase Document.	Filed herewith.
101.PRE(2)	XBRL Taxonomy Extension Presentation Linkbase Document.	Filed herewith.

75

(1)The instance document does not appear in the Interactive Data File because its XBRL (Extensible Business Reporting Language) tags are embedded within the Inline XBRL document.

(2)Attached as Exhibit 101 to this report are the following documents formatted in Inline XBRL: (i) the Consolidated Statements of Income for the years ended June 30, 2022, 2021 and 2020, (ii) the Consolidated Statements of Comprehensive Income for the years ended June 30, 2022, 2021 and 2020, (iii) the Consolidated Balance Sheets at June 30, 2022 and 2021, (iv) the Consolidated Statements of Cash Flows for the years ended June 30, 2022, 2021 and 2020 and (v) Notes to Consolidated Financial Statements for the years ended June 30, 2022, 2021 and 2020.

76

SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS

(In thousands) For the year ended June 30	Balance at Beginning of Year		Charges to Costs and Expenses		Recoveries		Other Adjustments			Deductions from Reserves			Balance at End of  Year
2022
Allowance for doubtful accounts	$	9,734	$	1,242	$	163	$	(321)	(1)	$	(1,396)	(2)	$	9,422
Deferred tax asset valuation allowance	21,263		371		(4,459)		42		(1)	(2,832)		(3)	14,385
2021
Allowance for doubtful accounts	$	9,430	$	2,602	$	635	$	400	(1)	$	(3,333)	(2)	$	9,734
Deferred tax asset valuation allowance	16,654		4,115		—		494		(1)	—			21,263
2020
Allowance for doubtful accounts	$	10,083	$	2,300	$	40	$	(287)	(1)	$	(2,706)	(2)	$	9,430
Deferred tax asset valuation allowance	14,614		4,213		—		(1,216)		(1)	(957)		(3)	16,654

(1)Represents foreign currency translation adjustment.

(2)Represents uncollected accounts charged against the allowance.

(3)Represents primarily a forfeited net operating loss deduction

ITEM 16 — FORM 10-K SUMMARY

None.

77

EX-4.9

Exhibit 4.9

DESCRIPTION OF KENNAMETAL INC.’S SECURITIES

Common Stock

The following summary of the terms of Kennametal Inc.’s (the “Company”) common stock is not complete and is subject to and qualified in its entirety by reference to the relevant provisions of the laws of the Commonwealth of Pennsylvania, the Company’s Amended and Restated Articles of Incorporation (the “Articles”), and its Amended and Restated Bylaws (the “Bylaws”). Copies of the Articles and Bylaws have been filed with the Securities and Exchange Commission.

General

The Company’s Articles provide that it may issue up to 120,000,000 shares of capital stock, par value $1.25 per share (the “common stock”) and 5,000,000 shares of Class A Preferred Stock without par value.

Voting and Other Rights

Each share of the Company’s common stock is entitled to one vote on all matters requiring a vote of shareholders and, subject to the rights of the holders of any outstanding shares of preferred stock, each shareholder is entitled to receive any dividends, in cash, securities or property, as the Company’s board of directors may declare. Pennsylvania law prohibits the payment of dividends or the repurchase of the Company’s shares if the Company is insolvent or if the Company would become insolvent after the dividend or repurchase. Holders of common stock do not have any preemptive or similar rights.

In the event of the Company’s liquidation, dissolution or winding up, either voluntarily or involuntarily, subject to the rights of the holders of any outstanding shares of preferred stock, holders of common stock are entitled to share pro-rata in all of the Company’s remaining assets available for distribution.

Anti-Takeover Provisions in Kennametal Inc.’s Charter and Bylaws

Certain provisions of the Articles and Bylaws could have an anti-takeover effect. These provisions are intended to enhance the likelihood of continuity and stability in the composition of the board of directors and in the strategies it formulates. They may also discourage an unsolicited takeover of the Company if the board of directors determines that the takeover is not in the best interests of the Company and its shareholders. These provisions could have the effect of discouraging certain attempts to acquire the Company or remove incumbent management even if some or a majority of shareholders deemed such an attempt to be in their best interests.

The provisions in the Articles and Bylaws include: (i) a procedure which requires shareholders to nominate directors in advance of a meeting to elect such directors; and (ii) the authority to issue additional shares of common stock or preferred stock without shareholder approval.

The Articles also include a provision requiring the affirmative vote of the holders of 75% of the Company’s outstanding stock to approve certain mergers or other business combinations or transactions with five percent shareholders; a provision requiring the affirmative vote of the holders of 75% of the Company’s outstanding stock to remove the entire board of directors, a class of the board of directors, any individual member of the board of directors without cause, or to increase the size of the board of directors to more than twelve members or decrease the size of the board of directors to fewer than eight members; a provision requiring, in the case of repurchases at a premium over market by the Company from any 4% Shareholder (as defined in the Articles), the affirmative vote of the holders of voting power of an amount of shares equal to the voting power of the 4% Shareholder plus a majority of the voting power of the other shares not held by the 4% Shareholder; and a provision requiring the affirmative vote of a majority of the Company’s outstanding stock held by disinterested shareholders to approve certain business combinations involving a shareholder who beneficially owns more than 10% of the voting power of the Company’s then outstanding voting stock, unless certain conditions are satisfied or the transaction is approved by a majority of disinterested directors.

Pursuant to the Articles and the laws of the Commonwealth of Pennsylvania, the board of directors is permitted to consider the effects of a change in control on the Company’s non-shareholder constituencies, such as the Company’s employees, suppliers, and other constituents and the communities in which the Company operates. Pursuant to this provision, the board of directors may be guided by factors in addition to price and other financial considerations.

The Bylaws provide that any shareholder who desires to present a nomination of person(s) for election to the board of directors or a proposal of other business at a shareholders’ meeting (a “Proponent”) must first provide timely written notice to the Secretary. The Bylaws set forth the deadlines for submitting such advance notice. As described in the Bylaws, the advance notice must set forth in reasonable detail (i) as to each person the shareholder proposes to nominate for election to the board of directors, information concerning the proposed nominee that would be required to be disclosed in a proxy statement or other filings required to be made in connection with the solicitation of proxies for the election of directors in an election contest, or otherwise required, in each case pursuant to Section 14 of the Exchange Act and the rules and regulations promulgated thereunder, including such nominee’s consent to serve as a director if elected and other specific information called for by the Bylaws, or (ii) as to any other business that the Proponent proposes to bring before the meeting, a description of the business desired to be brought before the meeting, the text of the proposal or business (including the text of any resolutions proposed for consideration and in the event that such business includes a proposal to amend the Bylaws, the language of the proposed amendment), the reasons for conducting such business at the meeting, and any material interest in such business of the Proponent and the beneficial owner, if any, on whose behalf the proposal is made. The advance notice must also include a representation from the Proponent that such person is a shareholder of record and intends to appear in person or by proxy at the meeting to present the nomination or other proposal specified in the notice, a description of the Proponent’s beneficial ownership and other financial interests in the Company, a description of all arrangements or understandings between the Proponent and any other person or persons (naming such persons) pursuant to which the nomination or other proposal is to be made by the Proponent, and all such information regarding the Proponent’s proposal and/or nominee(s) which would have been required to be included in a proxy statement filed pursuant to the proxy rules of the Securities and Exchange Commission had the nomination or other proposal been made by the board of directors.

PBCL Anti-Takeover Provisions

The Pennsylvania Business Corporation Law (the “PBCL”) contains a number of statutory “anti-takeover” provisions, including Subchapters E, F, G and H of Chapter 25 and Sections 2521, 2524 and 2538 of the PBCL, which apply automatically to a Pennsylvania registered corporation (usually a public company) unless the corporation elects to opt-out of those provisions. The Company is a Pennsylvania registered corporation, and as a result it is subject to the anti-takeover provisions described below, however, the Company has elected to opt-out of certain provisions as described below. Descriptions of the anti-takeover provisions are qualified in their entirety by reference to the PBCL.

Subchapter E (relating to control transactions) generally provides that if any person or group acquires 20% or more of the Company’s voting power, the remaining holders of voting shares may demand from such person or group the fair value of their voting shares, including a proportionate amount of any control premium.

Subchapter F (relating to business combinations) generally delays for five years and imposes conditions upon “business combinations” between an “interested shareholder” and the Company. The term “business combination” is defined broadly to include various transactions between a corporation and an interested shareholder including mergers, sales or leases of specified amounts of assets, liquidations, reclassifications and issuances of specified amounts of additional shares of stock of the corporation. An “interested shareholder” is defined generally as the beneficial owner of at least 20% of a corporation’s voting shares.

Section 2521 of the PBCL provides that shareholders are not entitled to call special meetings of the shareholders and the Company’s Bylaws do not give shareholders any right to call special meetings.

Section 2524 provides that shareholders cannot act by partial written consent unless permitted in the articles of incorporation.

Section 2538 of the PBCL generally establishes certain shareholder approval requirements with respect to specified transactions with “interested shareholders.”

The Company has elected to opt out of Subchapters G and H of Chapter 25 of the PBCL. Subchapter G would have required a shareholder vote to accord voting rights to control shares acquired by a 20% shareholder in a control-share acquisition. Subchapter H would have required a person or group to disgorge to the Company any profits received from a sale of the Company’s equity securities within 18 months after the person or group acquired, offered to acquire or publicly disclosed an intention to acquire 20% of the Company’s voting power or publicly disclosed an intention to acquire control of the Company.

Transfer Agent and Registrar

Computershare is the Transfer Agent and Registrar for the Common Stock.

EX-10.6

Exhibit 10.6

SCHEDULE OF NAMED EXECUTIVE OFFICERS WHO HAVE ENTERED INTO THE FORM OF INDEMNIFICATION AGREEMENT AS SET FORTH IN EXHIBIT 10.5

NAME

Judith L. Bacchus

Franklin Cardenas

Sanjay Chowbey

Michelle R. Keating

Carlonda R. Reilly

Christopher Rossi

Patrick S. Watson

EX-10.56

Exhibit 10.56

SCHEDULE OF NAMED EXECUTIVE OFFICERS WHO HAVE ENTERED INTO THE 2018 FORM OF INDEMNIFICATION AGREEMENT AS SET FORTH IN EXHIBIT 10.55

NAME

Damon J. Audia

Judith L. Bacchus

Franklin Cardenas

Sanjay Chowbey

Michelle R. Keating

Carlonda R. Reilly

Patrick S. Watson

EX-21

Exhibit 21

CORPORATE DIRECTORY

Our consolidated subsidiaries and affiliated companies as of June 30, 2022 are:

Consolidated Subsidiaries and Affiliated Companies of Kennametal Inc.

Kennametal (Malaysia) Sdn. Bhd.

Kennametal (Singapore) Pte. Ltd.

Kennametal (Thailand) Co., Ltd.

Kennametal Australia Pty. Ltd.

Kennametal de Mexico, S.A. de C.V.

Kennametal Distribution Services Asia Pte. Ltd.

Kennametal Hardpoint (Taiwan) Inc.

Kennametal Holdings Europe Inc.

Kennametal International S.A. (Panama)

Kennametal Japan Ltd.

Kennametal Korea Ltd.

Kennametal Manufacturing S.A. (Pty) Ltd.

Kennametal Shared Services Private Limited

Kennametal South Africa (Pty.) Ltd.

PT. Kennametal Indonesia Services

Consolidated Subsidiary of Kennametal (Singapore) Pte. Ltd.

Kennametal Vietnam LLC

Consolidated Subsidiaries of Kennametal Holdings Europe Inc.

Deloro Stellite Holdings Corporation

Kennametal Holdings, LLC

Kennametal Holdings, LLC Luxembourg S.C.S.

Consolidated Subsidiaries of Deloro Stellite Holdings Corporation

DSGP LLC

Kennametal Stellite, L.P.

Kennametal Stellite Inc.

Kennametal Stellite (Shanghai) Co., Ltd. (Joint Venture)

Consolidated Subsidiary of Kennametal Holdings, LLC Luxembourg S.C.S.

Kennametal Luxembourg Holding S.à r.l.

Consolidated Subsidiaries of Kennametal Luxembourg Holding S.à r.l.

Kennametal Argentina S.A.

Kennametal Chile Ltda.

Kennametal do Brasil Ltda.

Kennametal Europe GmbH

Kennametal Luxembourg S.à r.l.

Comericializadora Kennametal Bolivia S.R.L.

Consolidated Subsidiaries of Kennametal Luxembourg S.à r.l.

Kennametal Asia (HK) Ltd.

Kennametal Ltd.

Kennametal Sintec Holding GmbH

Consolidated Subsidiaries of Kennametal Asia (HK) Ltd.

Kennametal Asia (China) Management Co. Ltd.

Kennametal (Baotou) Company Ltd.

Kennametal (China) Co. Ltd.

Kennametal Hardpoint (Shanghai) Co., Ltd.

Kennametal (Xuzhou) Company, Ltd.

Consolidated Subsidiary of Kennametal Sintec Holding GmbH

Kennametal Sintec Keramik Asia Ltd.

Consolidated Subsidiary of Kennametal Sintec Keramik Asia Ltd.

Sunshine Power-Tech (Shanghai) Ltd.

Consolidated Subsidiaries of Kennametal Europe GmbH

Hanita Metal Works, Ltd.

Kennametal Holding GmbH

Kennametal Nederland B.V.

OOO Kennametal

Consolidated Subsidiaries of Kennametal Holding GmbH

Kennametal GmbH

Kennametal Hungaria Kft.

Kennametal Logistics GmbH

Kennametal Shared Services GmbH

Kennametal Sintec Keramik GmbH

Widia GmbH

Consolidated Subsidiaries and Affiliated Companies of Kennametal GmbH

Kenci S.L.

Kennametal Belgium BVBA

Kennametal Deutschland GmbH

Kennametal France S.A.S.

Kennametal GmbH Organizacni Slozka

Kennametal GmbH Zweigniederlassung Osterreich

Kennametal GmbH Zweigniederlassung Rumanien

Kennametal GmbH Zweigniederlassung Slowakei

Kennametal Infrastructure GmbH

Kennametal Italia S.p.A.

Kennametal Kesici Takimlar Sanayi Ve Ticaret Anonim Sirketi

Kennametal Polska Sp. z o.o.

Kennametal Produktions GmbH & Co. KG. (partnership)

Kennametal Sp. z o.o.

Kennametal Stellram S.r.L.

Kennametal UK Limited

Ruebig Real Estate GmbH & Co. KG

Consolidated Subsidiary of Kennametal Italia S.p.A.

Kennametal Italia Produzione S.R.L.

Consolidated Affiliated Company of Kennametal Produktions GmbH & Co. KG (partnership)

Kennametal Real Estate GmbH & Co. KG (partnership)

Consolidated Affiliated Company of Kennametal Deutschland GmbH

Kennametal (Deutschland) Real Estate GmbH & Co. KG (partnership)

Consolidated Subsidiary of Kennametal Sp. z o.o

Kennametal Produkcja Sp. z o.o.

Consolidated Subsidiaries and Affiliated Companies of Widia GmbH

Kennametal Widia Produktions GmbH & Co. KG (partnership)

Kennametal Widia Real Estate GmbH & Co. KG (partnership)

Meturit AG

Consolidated Subsidiary of Meturit AG

Kennametal India Ltd.

Consolidated Subsidiary of Kennametal India Ltd.

Widia India Tooling Private Limited

Consolidated Subsidiaries of Kenci S.L.

Kenci Lda.

Kennametal Manufacturing Barcelona S.L.

Consolidated Subsidiaries of Kennametal UK Limited

Kennametal Logistics UK Ltd.

Kennametal Manufacturing UK Ltd.

EX-23

Exhibit 23

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the incorporation by reference in the Registration Statements on Form S-3 (No. 333-248209) and Form S-8 (No. 033-65023, No. 333-18423, No. 333-18429, No. 333-18437, No. 333-77411, No. 333-88049, No. 333-30454, No. 333-30448, No. 333-53562, No. 333-100867, No. 333-120314, No. 333-124774, No. 333-142727, No. 333-154705, No. 333-170348, No. 333-193782, No. 333-214474, No. 333-222177 and No. 333-249824) of Kennametal Inc. of our report dated August 10, 2022 relating to the financial statements and financial statement schedule and the effectiveness of internal control over financial reporting, which appears in this Form 10‑K.

/s/ PricewaterhouseCoopers LLP

Pittsburgh, Pennsylvania

August 10, 2022

EX-31.1

Exhibit 31.1

I, Christopher Rossi, certify that:

1.I have reviewed this annual report on Form 10-K of Kennametal Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d -15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions)

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 10, 2022	/s/ Christopher Rossi
		Christopher Rossi President and Chief Executive Officer

EX-31.2

Exhibit 31.2

I, Patrick S. Watson, certify that:

1.I have reviewed this annual report on Form 10-K of Kennametal Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d -15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions)

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 10, 2022	/s/ Patrick S. Watson
		Patrick S. Watson
		Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Kennametal Inc. (the “Corporation”) on Form 10-K for the period ended June 30, 2022, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of the Corporation certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to his knowledge:

1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2)The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Corporation.

/s/ Christopher Rossi                          

Christopher Rossi

President and Chief Executive Officer

August 10, 2022

/s/ Patrick S. Watson            

Patrick S. Watson

Vice President and Chief Financial Officer

August 10, 2022

*This certification is made solely for purposes of 18 U.S.C. Section 1350, subject to the knowledge standard contained therein, and not for any other purpose.

XML

Cover - USD ($)	12 Months Ended
	Jun. 30, 2022	Jul. 29, 2022	Dec. 31, 2021
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
Entity File Number	1-5318
Entity Registrant Name	KENNAMETAL INC.
Entity Incorporation, State or Country Code	PA
Entity Tax Identification Number	25-0900168
Entity Address, Address Line One	525 William Penn Place
Entity Address, Address Line Two	Suite 3300
Entity Address, City or Town	Pittsburgh,
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	15219
City Area Code	412
Local Phone Number	248-8000
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 1,725,400,000
Entity Common Stock, Shares Outstanding (In shares)		81,338,696
Documents Incorporated by Reference	Portions of the Proxy Statement for the 2022 Annual Meeting of Shareholders are incorporated by reference into Part III.
Entity Central Index Key	0000055242
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--06-30
Amendment Flag	false
Document Information [Line Items]
ICFR Auditor Attestation Flag	true
Auditor Name	PricewaterhouseCoopers LLP
Auditor Location	Pittsburgh, Pennsylvania
Auditor Firm ID	238
Entity Public Float			$ 1,725,400,000
Capital Stock Par Value1.25 Per Share
Cover [Abstract]
Title of 12(b) Security	Capital Stock, par value $1.25 per share
Trading Symbol	KMT
Document Information [Line Items]
Title of 12(b) Security	Capital Stock, par value $1.25 per share
Entity Listings [Line Items]
Trading Symbol	KMT
Capital Stock Par Value1.25 Per Share | NEW YORK STOCK EXCHANGE, INC.
Cover [Abstract]
Security Exchange Name	NYSE
Entity Listings [Line Items]
Security Exchange Name	NYSE
Preferred Stock Purchase Rights
Cover [Abstract]
Title of 12(b) Security	Preferred Stock Purchase Rights
Document Information [Line Items]
Title of 12(b) Security	Preferred Stock Purchase Rights
Preferred Stock Purchase Rights | NEW YORK STOCK EXCHANGE, INC.
Cover [Abstract]
Security Exchange Name	NYSE
Entity Listings [Line Items]
Security Exchange Name	NYSE

XML

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Income Statement [Abstract]
Sales	$ 2,012,456	$ 1,841,441	$ 1,885,305
Cost of goods sold	1,364,479	1,288,963	1,355,834
Gross profit	647,977	552,478	529,471
Operating expense	419,093	407,246	388,436
Restructuring (benefits) charges and asset impairment charges (Note 16)	(1,243)	29,061	68,228
Goodwill and other Intangible Asset Impairment			30,227
Gain (Loss) on divestiture	(1,001)		(6,517)
Amortization of intangibles	12,988	14,003	13,811
Operating income	218,140	102,168	22,252
Interest expense	25,914	46,375	35,154
Other income, net	(14,507)	(8,867)	(14,862)
Income before income taxes	206,733	64,660	1,960
Provision for income taxes (Note 13)	56,532	6,243	7,007
Net income (loss)	150,201	58,417	(5,047)
Less: Net income attributable to noncontrolling interests	5,578	3,983	614
Net income attributable to Kennametal	$ 144,623	$ 54,434	$ (5,661)
PER SHARE DATA ATTRIBUTABLE TO KENNAMETAL SHAREHOLDERS
Basic earnings per share	$ 1.74	$ 0.65	$ (0.07)
Diluted earnings per share	1.72	$ 0.65	$ (0.07)
Dividends per share	$ 0.80
Basic weighted average shares outstanding	83,252	83,602	83,047
Diluted weighted average shares outstanding	83,944	84,333	83,047

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 150,201	$ 58,417	$ (5,047)
Unrealized gain (loss) on derivatives designated and qualified as cash flow hedges	0	9,255	(582)
Reclassification of unrealized (gain) loss on expired derivatives designated and qualified as cash flow hedges	770	401	(679)
Unrecognized net pension and other postretirement benefit (loss) gain	(4,163)	9,107	(18,299)
Reclassification of net pension and other postretirement benefit loss	8,929	10,355	7,935
Foreign currency translation adjustments	(91,185)	60,528	(35,891)
Other comprehensive (loss) income, net of tax	(87,189)	88,844	(46,158)
Total comprehensive income	63,012	147,261	(51,205)
Less: comprehensive income attributable to noncontrolling interests	(2,013)	(5,910)	1,846
Comprehensive income attributable to Kennametal Shareholders	$ 60,999	$ 141,351	$ (49,359)

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CONSOLIDATED BALANCE SHEETS - USD ($) shares in Thousands, $ in Thousands	Jun. 30, 2022	Jun. 30, 2021
Current assets:
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	$ 85,586	$ 154,047
Accounts receivable, less allowance for doubtful accounts of $9,422 and $9,734, respectively	295,346	302,945
Inventories (Note 7)	570,836	476,345
Other current assets	72,940	71,470
Total current assets	1,024,708	1,004,807
Property, plant and equipment:
Land and buildings	410,039	413,865
Machinery and equipment	1,904,872	1,959,176
Less accumulated depreciation	(1,312,870)	(1,317,906)
Property, plant and equipment, net	1,002,041	1,055,135
Other assets:
Goodwill (Note 8)	264,230	277,615
Other intangible assets, less accumulated amortization of $160,699 and $153,972, respectively (Note 8)	105,725	120,041
Operating Lease, Right-of-Use Asset	47,206	50,341
Deferred Income Tax Assets, Net	54,602	58,742
Long-term prepaid pension benefit	66,433	89,233
Other	8,579	9,847
Total other assets	546,775	605,819
Total assets	2,573,524	2,665,761
Current liabilities:
Revolving and other lines of credit and notes payable	21,186	8,365
Operating Lease, Liability, Current	12,387	14,220
Accounts payable	227,887	177,659
Accrued income taxes	29,476	18,059
Accrued vacation pay	15,340	17,100
Accrued payroll	40,970	44,389
Other current liabilities (Note 10)	138,403	157,602
Total current liabilities	485,649	437,394
Long-term debt, less current maturities (Note 11)	594,364	592,108
Operating Lease, Liability, Noncurrent	35,342	36,800
Deferred Income Tax Liabilities, Net	32,185	23,710
Accrued postretirement benefits (Note 14)	7,924	10,131
Accrued pension benefits (Note 14)	105,071	160,936
Accrued income taxes	6,369	4,246
Other liabilities	15,373	32,231
Total liabilities	1,282,277	1,297,556
Commitments and contingencies (Note 20)
Preferred Stock, Shares Issued	0
Preferred Stock, No Par Value	$ 0
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; 81,337 and 83,614 shares issued respectively	101,671	104,518
Additional paid-in capital	494,202	562,820
Retained earnings	1,070,655	992,597
Accumulated other comprehensive loss (Note 15)	(413,951)	(330,327)
Total Kennametal Shareholders' Equity	1,252,577	1,329,608
Noncontrolling interests	38,670	38,597
Total equity	1,291,247	1,368,205
Total liabilities and equity	$ 2,573,524	$ 2,665,761

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Consolidated Balance Sheets(Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Jun. 30, 2022	Jun. 30, 2021
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 9,422	$ 9,734
Accumulated amortization on other intangible assets	$ 160,699	$ 153,972
Preferred stock, par value	$ 0
Preferred stock, shares authorized	5,000
Preferred stock, shares issued	0
Capital stock, par value	$ 1.25
Capital stock, shares authorized	120,000
Capital stock, shares issued	81,337	83,614

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CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
OPERATING ACTIVITIES
Net income	$ 150,201	$ 58,417	$ (5,047)
Adjustments for non-cash items:
Depreciation	118,690	112,485	106,049
Amortization	12,988	14,003	13,811
Stock-based compensation expense	20,985	24,799	16,048
Restructuring and asset impairment charges	(753)	5,664	34,175
Deferred income tax provision	11,292	(21,189)	(23,899)
Gain (Loss) on divestiture	(1,001)		(6,517)
Debt Related Commitment Fees and Debt Issuance Costs		9,071
Other	(2,243)	6,754	2,613
Changes in certain assets and liabilities:
Accounts receivable	(14,432)	(53,324)	128,715
Inventories	(127,409)	61,270	28,185
Accounts payable and accrued liabilities	31,997	46,775	(46,315)
Accrued income taxes	10,238	(18,273)	(8,645)
Accrued pension and postretirement benefits	(24,216)	(31,585)	(20,022)
Other	(4,893)	20,815	(8,447)
Net cash flow provided by operating activities	181,444	235,682	223,738
INVESTING ACTIVITIES
Purchases of property, plant and equipment	(96,924)	(127,302)	(244,151)
Disposals of property, plant and equipment	924	4,373	2,622
Proceeds from Divestiture of Businesses	1,001		23,950
Other	60	(47)	(757)
Net cash flow used for investing activities	(94,939)	(122,976)	(218,336)
FINANCING ACTIVITIES
Net (decrease) increase in notes payable	(6,067)	605	(175)
Net decrease in short-term revolving and other lines of credit	19,000	(500,000)	500,364
Term debt borrowings	0	297,867	0
Term debt repayments	0	(300,000)	0
Payment for Debt Extinguishment or Debt Prepayment Cost		(9,639)
Proceeds from Derivative Instrument, Financing Activities		10,198
Purchase of capital stock	(85,542)	(197)	(209)
The effect of employee benefit and stock plans and dividend reinvestment	(6,909)	821	(5,464)
Cash dividends paid to Shareholders	(66,565)	(66,735)	(66,303)
Other	(4,652)	(7,165)	(2,762)
Net cash flow (used for) provided by financing activities	(150,735)	(574,245)	425,451
Effect of exchange rate changes on cash and cash equivalents	(4,231)	8,902	(6,184)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	(68,461)	(452,637)	424,669
CASH AND CASH EQUIVALENTS
Cash and cash equivalents, beginning of year	154,047	606,684	182,015
Cash and cash equivalents, end of year		154,047	606,684
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	$ 85,586	$ 154,047	$ 606,684

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CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Noncontrolling Interests [Member]	Derivatives [Member] Reclassification out of Accumulated Other Comprehensive Income [Member]
Beginning Balance, Shares at Jun. 30, 2019		82,421
Beginning Balance at Jun. 30, 2019		$ 103,026	$ 528,827	$ 1,076,862	$ (373,543)	$ 39,532
Additions to noncontrolling interests						1,527
Dividend reinvestment, Shares		7
Dividend reinvestment		$ 9	201
Capital stock issued under employee benefit and stock plans, Shares		502
Capital stock issued under employee benefit and stock plans		$ 628	9,748
Purchase of capital stock, Shares		(7)
Purchase of capital stock		$ (9)	(201)
Net income	$ (5,047)			(5,661)		614
Cash dividends paid to Shareholders				(66,303)		(311)
Unrecognized net pension and other postretirement benefit (loss) gain	(18,299)				(18,299)
Reclassification of net pension and other postretirement benefit loss	7,935				7,935
Foreign currency translation adjustments, net of tax	(35,891)				(33,432)
Other comprehensive (loss) income, net of tax	(46,158)				(43,699)	(2,459)
Ending Balance, Shares at Jun. 30, 2020		82,923
Ending Balance at Jun. 30, 2020	1,268,788	$ 103,654	538,575	1,004,898	(417,242)	38,903
Unrealized gain (loss) on derivatives designated and qualified as cash flow hedges	(582)				(582)
Reclassification of unrealized (gain) loss on expired derivatives designated and qualified as cash flow hedges	(679)				(679)
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, Tax	(220)						$ (220)
Additions to noncontrolling interests						0
Dividend reinvestment, Shares		6
Dividend reinvestment		$ 7	191
Capital stock issued under employee benefit and stock plans, Shares		691
Capital stock issued under employee benefit and stock plans		$ 864	24,556
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests			(311)			(1,319)
Purchase of capital stock, Shares		(6)
Purchase of capital stock		$ (7)	(191)
Net income	58,417			54,434		3,983
Cash dividends paid to Shareholders				(66,735)		(4,897)
Unrecognized net pension and other postretirement benefit (loss) gain	9,107				9,107
Reclassification of net pension and other postretirement benefit loss	10,355				10,355
Foreign currency translation adjustments, net of tax	60,528				58,599
Other comprehensive (loss) income, net of tax	88,844				86,915	1,927
Ending Balance, Shares at Jun. 30, 2021		83,614
Ending Balance at Jun. 30, 2021	1,368,205	$ 104,518	562,820	992,597	(330,327)	38,597
Unrealized gain (loss) on derivatives designated and qualified as cash flow hedges	9,255				9,255
Reclassification of unrealized (gain) loss on expired derivatives designated and qualified as cash flow hedges	401				401
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, Tax	(4,459)						(4,459)
Additions to noncontrolling interests						0
Dividend reinvestment, Shares		6
Dividend reinvestment		$ 7	182
Capital stock issued under employee benefit and stock plans, Shares		444
Capital stock issued under employee benefit and stock plans		$ 554	13,334
Purchase of capital stock, Shares		(2,727)
Purchase of capital stock		$ (3,408)	(82,134)
Net income	$ 150,201			144,623		5,578
Common Stock, Dividends, Per Share, Declared	$ 0.80
Cash dividends paid to Shareholders				(66,565)		(1,940)
Unrecognized net pension and other postretirement benefit (loss) gain	$ (4,163)				(4,163)
Reclassification of net pension and other postretirement benefit loss	8,929				8,929
Foreign currency translation adjustments, net of tax	(91,185)				(87,620)
Other comprehensive (loss) income, net of tax	(87,189)				(83,624)	(3,565)
Ending Balance, Shares at Jun. 30, 2022		81,337
Ending Balance at Jun. 30, 2022	1,291,247	$ 101,671	$ 494,202	$ 1,070,655	(413,951)	$ 38,670
Unrealized gain (loss) on derivatives designated and qualified as cash flow hedges	0				0
Reclassification of unrealized (gain) loss on expired derivatives designated and qualified as cash flow hedges	770				$ 770
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, Tax	$ 250						$ 250

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Supplemental Cash Flow Information

12 Months Ended

Jun. 30, 2022

Supplemental Cash Flow Elements [Abstract]

SUPPLEMENTAL CASH FLOW DISCLOSURES

SUPPLEMENTAL CASH FLOW DISCLOSURES

Year ended June 30 (in thousands)	2022		2021		2020
Cash paid during the period for:
Interest	$	25,277	$	43,601	$	25,796
Income taxes	36,105		48,910		36,852
Supplemental disclosure of non-cash information:
Changes in accounts payable related to purchases of property, plant and equipment	9,800		(17,500)		(9,400)
Changes in notes payable related to purchases of property, plant and equipment	—		7,254		—

XML

Supplemental Cash Flow Information

12 Months Ended

Jun. 30, 2022

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flow Disclosures

Year ended June 30 (in thousands)	2022		2021		2020
Cash paid during the period for:
Interest	$	25,277	$	43,601	$	25,796
Income taxes	36,105		48,910		36,852
Supplemental disclosure of non-cash information:
Changes in accounts payable related to purchases of property, plant and equipment	9,800		(17,500)		(9,400)
Changes in notes payable related to purchases of property, plant and equipment	—		7,254		—

XML

Supplemental Cash Flow Information - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Supplemental Cash Flow Elements [Abstract]
Interest	$ 25,277	$ 43,601	$ 25,796
Income taxes	36,105	48,910	36,852
Change In Accounts Payable Related To Purchases Of Property, Plant And Equipment	$ 9,800	(17,500)	$ (9,400)
Changes in notes payable related to purchases of property, plant and equipment		$ 7,254

XML

Nature of operations

12 Months Ended

Jun. 30, 2022

Nature of operations [Abstract]

Nature of Operations [Text Block]

NATURE OF OPERATIONS

With more than 80 years of materials expertise, the Company is a global industrial technology leader, helping customers across the aerospace, earthworks, energy, general engineering and transportation end markets manufacture with precision and efficiency. This expertise includes the development and application of tungsten carbides, ceramics, super-hard materials and solutions used in metal cutting and extreme wear applications to keep customers up and running longer against conditions such as corrosion and high temperatures.

Our standard and custom product offering spans metal cutting and wear applications including turning, milling, hole making, tooling systems and services, as well as specialized wear components and metallurgical powders. End users of the Company's metal cutting 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. The Company’s wear and metallurgical powders are used by producers and suppliers in equipment-intensive operations such as road construction, mining, quarrying, and oil and gas exploration, refining, production and supply.

Unless otherwise specified, any reference to a “year” is to a fiscal year ended June 30. When used in this Annual Report on Form 10-K, unless the context requires otherwise, the terms “we,” “our” and “us” refer to Kennametal Inc. and its subsidiaries.

XML

Summary of Significant Accounting Policies

12 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The summary of our significant accounting policies is presented below to assist in evaluating our consolidated financial statements.

PRINCIPLES OF CONSOLIDATION The consolidated financial statements include our accounts and those of our subsidiaries in which we have a controlling interest. All intercompany balances and transactions are eliminated.

USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS In preparing our consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP), we make judgments and estimates about the amounts reflected in our consolidated financial statements. As part of our financial reporting process, our management collaborates to determine the necessary information on which to base our judgments and develop estimates used to prepare the consolidated financial statements. We use historical experience and available information to make these judgments and estimates. Actual amounts could differ from the estimates reflected in our consolidated financial statements.

CASH AND CASH EQUIVALENTS Cash investments having original maturities of three months or less are considered cash equivalents. Cash equivalents principally consist of investments in money market funds and bank deposits at June 30, 2022.

ACCOUNTS RECEIVABLE We market our products to a diverse customer base throughout the world. Trade credit is extended based upon periodically updated evaluations of each customer’s ability to satisfy its obligations. We record allowances for estimated losses resulting from the inability of our customers to make required payments. We assess the creditworthiness of our customers based on multiple sources of information and analyze additional factors such as our historical bad debt experience, industry concentrations of credit risk, current economic trends, changes in customer payment terms and forward-looking information.

INVENTORIES We use the last-in, first-out (LIFO) method for determining the cost of a significant portion of our United States (U.S.) inventories, and they are stated at the lower of cost or market. The cost of the remainder of our inventories is measured using approximate costs determined on the first-in, first-out basis or using the average cost method, and are stated at the lower of cost or net realizable value. When market conditions indicate an excess of carrying costs over market value, a lower of cost or net realizable value provision or a lower of cost or market provision, as applicable, is recorded. Once inventory is determined to be excess or obsolete, a new cost basis is established that is not subsequently written back up in future periods.

PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are carried at cost. Major improvements are capitalized, while maintenance and repairs are expensed as incurred. Retirements and disposals are removed from cost and accumulated depreciation accounts, with the gain or loss reflected in operating income. Interest related to the construction of major facilities is capitalized as part of the construction costs and is depreciated over the facilities' estimated useful lives.

Depreciation for financial reporting purposes is computed using the straight-line method over the following estimated useful lives: building and improvements over 15-40 years; machinery and equipment over 4-15 years; furniture and fixtures over 5-10 years and computer hardware and software over 3-5 years.

LONG-LIVED ASSETS We evaluate the recoverability of property, plant and equipment, operating lease right-of-use (ROU) assets and intangible assets that are amortized, whenever events or changes in circumstances indicate the carrying amount of any such assets may not be fully recoverable. Changes in circumstances include technological advances, changes in our business model, capital structure, economic conditions or operating performance. Our evaluation is performed at the asset group level, based upon, among other things, our assumptions about the estimated future undiscounted cash flows these assets are expected to generate. When the sum of the undiscounted cash flows is less than the carrying value, we will recognize an impairment loss to the extent that carrying value exceeds fair value. We apply our best judgment when performing these evaluations to determine if a triggering event has occurred, the undiscounted cash flows used to assess recoverability and the fair value of the asset group.

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 quarter. As of June 30, 2022, only the Metal Cutting reporting unit has goodwill recorded. We evaluate the recoverability of goodwill for the reporting unit by comparing the fair value of the reporting unit with its carrying value. The fair value of our reporting unit is 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 the 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.

The majority of our intangible assets with definite lives are amortized on a straight-line basis, while certain customer-related intangible assets are amortized on an accelerated method. Identifiable assets with finite lives are reviewed for impairment when events or circumstances indicate that the carrying value may not be recoverable.

PENSION AND OTHER POSTRETIREMENT BENEFITS We sponsor these types of benefit plans for certain employees and retirees. Accounting for the cost of these plans requires the estimation of the cost of the benefits to be provided well into the future and attributing that cost over either the expected work life of employees or over the average life of participants participating in these plans, depending on plan status and on participant population. This estimation requires our judgment about the discount rate used to determine these obligations, expected return on plan assets, rate of future compensation increases, rate of future health care costs, withdrawal and mortality rates and participant retirement age. Differences between our estimates and actual results may significantly affect the cost of our obligations under these plans.

In the valuation of our pension and other postretirement benefit liabilities, management utilizes various assumptions. Discount rates are derived by identifying a theoretical settlement portfolio of high quality corporate bonds sufficient to provide for a plan’s projected benefit payments. This rate can fluctuate based on changes in the corporate bond yields.

The long-term rate of return on plan assets is estimated based on an evaluation of historical returns for each asset category held by the plans, coupled with the current and short-term mix of the investment portfolio. The historical returns are adjusted for expected future market and economic changes. This return will fluctuate based on actual market returns and other economic factors.

The rate of future health care costs is based on historical claims and enrollment information projected over the next year and adjusted for administrative charges. This rate is expected to decrease until 2027.

Future compensation rates, withdrawal rates and participant retirement age are determined based on historical information. These assumptions are not expected to significantly change. Mortality rates are determined based on a review of published mortality tables.

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.

The following tables provide the computation of diluted shares outstanding:

(in thousands)	2022	2021
Weighted-average shares outstanding during period	83,252	83,602
Add: Unexercised stock options and unvested restricted stock units	692	731
Number of shares on which diluted earnings per share is calculated	83,944	84,333
Unexercised stock options with an exercise price greater than the average market price and restricted stock units not included in the computation because they were anti-dilutive	260	295

In 2020, 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.

REVENUE RECOGNITION The Company's contracts with customers are comprised of purchase orders, and for larger customers, may also include long-term agreements. We account for a contract when it has approval and commitment from both parties, the rights of the parties and payment terms are identified, the contract has commercial substance and collectability of consideration is probable. These contracts with customers typically relate to the manufacturing of products, which represent single performance obligations that are satisfied when control of the product passes to the customer. The Company considers the timing of right to payment, transfer of risk and rewards, transfer of title, transfer of physical possession and customer acceptance when determining when control transfers to the customer. As a result, revenue is generally recognized at a point in time - either upon shipment or delivery - based on the specific shipping terms in the contract. The shipping terms vary across all businesses and depend on the product, customary local commercial terms and the type of transportation. Shipping and handling activities are accounted for as activities to fulfill a promise to transfer a product to a customer and as such, costs incurred are recorded when the related revenue is recognized. Payment for products is due within a limited time period after shipment or delivery, typically within 30 to 90 calendar days of the respective invoice dates. The Company does not generally offer extended payment terms.

Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods. Amounts billed and due from our customers are classified as accounts receivable, less allowance for doubtful accounts on the consolidated balance sheets. Certain contracts with customers, primarily distributor customers, have an element of variable consideration that is estimated when revenue is recognized under the contract. Variable consideration primarily includes volume incentive rebates, which are based on achieving a certain level of purchases and other performance criteria as established by our distributor programs. These rebates are estimated based on projected sales to the customer and accrued as a reduction of net sales as they are earned. The majority of our products are consumed by our customers or end users in the manufacture of their products. Historically, we have experienced very low levels of returned products and do not consider the effect of returned products to be material. We have recorded an estimated returned goods allowance to provide for any potential returns.

We warrant that products sold are free from defects in material and workmanship under normal use and service when correctly installed, used and maintained. This warranty terminates 30 days after delivery of the product to the customer and does not apply to products that have been subjected to misuse, abuse, neglect or improper storage, handling or maintenance. Products may be returned to Kennametal only after inspection and approval by Kennametal and upon receipt by the customer of shipping instructions from Kennametal. We have included an estimated allowance for warranty returns in our returned goods allowance discussed above.

The Company records a contract asset when it has a right to payment from a customer that is conditioned on events that have occurred other than the passage of time. The Company also records a contract liability when customers prepay but the Company has not yet satisfied its performance obligation. The Company did not have any material remaining performance obligations, contract assets or liabilities as of June 30, 2022 and 2021.

The Company pays sales commissions related to certain contracts, which qualify as incremental costs of obtaining a contract. However, the Company applies the practical expedient that allows an entity to recognize incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that would have been recognized is one year or less. These costs are recorded within operating expense in our consolidated statements of income.

SHIPPING AND HANDLING FEES AND COSTS All fees billed to customers for shipping and handling are classified as a component of sales. All costs associated with shipping and handling are classified as a component of cost of goods sold.

STOCK-BASED COMPENSATION We recognize stock-based compensation expense for all stock options, restricted stock awards and restricted stock units over the period from the date of grant to the date when the award is no longer contingent on the employee providing additional service (substantive vesting period). Forfeitures are recorded as incurred. We utilize the Black-Scholes valuation method to establish the fair value of all stock option awards. 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.

Capital stock options are granted to eligible employees at fair market value at the date of grant. Capital stock options are exercisable under specified conditions for up to 10 years from the date of grant. The Kennametal Inc. Stock and Incentive Plan of 2010, as Amended and Restated on October 22, 2013, and further amended on January 27, 2015 (A/R 2010 Plan), by the Kennametal Inc. 2016 Stock and Incentive Plan, and on October 27, 2020 by the Kennametal Inc. 2020 Stock and Incentive Plan (2020 Plan) authorize the issuance of up to 9,500,000 shares of the Company’s capital stock plus any shares remaining unissued under the Kennametal Inc. Stock and Incentive Plan of 2002, as amended (2002 Plan). Under the provisions of the A/R 2010 Plan and 2020 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 2022, 2021 and 2020 was immaterial. In addition to stock option grants, the A/R 2010 Plan and the 2020 Plan permit the award of stock appreciation rights, performance share awards, performance unit awards, restricted stock awards, restricted unit awards and share awards to directors, officers and key employees.

RESEARCH AND DEVELOPMENT COSTS Research and development costs of $42.1 million, $39.5 million and $38.7 million in 2022, 2021 and 2020, respectively, were expensed as incurred. These costs are included in operating expense in the consolidated statements of income.

INCOME TAXES The Company’s provision for income taxes is calculated based on income and statutory tax rates in the various jurisdictions in which the Company operates and requires the use of management’s estimates and judgments. Management judgment is required in determining the Company’s worldwide provision for income taxes and recording the related assets and liabilities, including accruals for unrecognized tax benefits and assessing the need for valuation allowances on deferred tax assets. Deferred income taxes are recognized based on the future income tax effects (using enacted tax laws and rates) of differences in the carrying amounts of assets and liabilities for financial reporting and tax purposes. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not (greater than 50 percent) that a tax benefit will not be realized. In evaluating the need for a valuation allowance, we consider all potential sources of taxable income, including income available in carryback periods, future reversals of taxable temporary differences, projections of taxable income, and income from tax planning strategies, as well as all available positive and negative evidence. Positive evidence includes factors such as a history of profitable operations, and projections of future profitability within the carry forward period, including taxable income from tax planning strategies. Negative evidence includes items such as cumulative losses, projections of future losses, or carryforward periods that are not long enough to allow for the utilization of the deferred tax asset based on existing projections of income. Upon changes in facts and circumstances, we may conclude that deferred tax assets for which no valuation allowance is currently recorded may not be realized, resulting in a charge to establish a valuation allowance. Existing valuation allowances are re-examined under the same standards of positive and negative evidence. If it is determined that it is more likely than not that a deferred tax asset will be realized, the appropriate amount of the valuation allowance, if any, is released.

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 use derivative financial instruments to provide predictability to the effects of changes in foreign exchange rates on our consolidated results. Our objective in managing foreign exchange exposures with derivative instruments is to reduce volatility in cash flow, allowing us to focus more of our attention on business operations. With respect to interest rate management, we use forward-starting interest rate swaps to effectively hedge the variability in future benchmark interest payments attributable to changes in interest rates on forecasted issuances of fixed-rate debt.

We account for derivative instruments as a hedge of the related asset, liability, firm commitment or anticipated transaction, when the derivative is specifically designated as a hedge of such items. We measure hedge effectiveness by assessing the changes in the fair value or expected future cash flows of the hedged item. Certain currency forward contracts hedging significant cross-border intercompany loans are considered other derivatives and, therefore, do not qualify for hedge accounting.

NET INVESTMENT HEDGES We designate financial instruments as net investment hedges from time to time to hedge the foreign exchange exposure of our net investment in foreign currency-based subsidiaries. The remeasurements of these non-derivatives designated as net investment hedges are calculated each period with changes reported in foreign currency translation adjustment within accumulated other comprehensive loss. Such amounts will remain in accumulated other comprehensive loss unless we complete or substantially complete liquidation or disposal of our investment in the underlying foreign operations.

CURRENCY TRANSLATION Assets and liabilities of international operations are translated into U.S. dollars using year-end exchange rates, while revenues and expenses are translated at average exchange rates throughout the year. The resulting net translation adjustments are recorded as a component of accumulated other comprehensive loss. The local currency is the functional currency of most of our locations.

Losses of $2.5 million, $3.3 million and $3.4 million from currency transactions were included in other income, net in 2022, 2021 and 2020, respectively.

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Divestiture

12 Months Ended

Jun. 30, 2022

Business Combination and Asset Acquisition [Abstract]

Mergers, Acquisitions and Dispositions Disclosures

NOTE 4 — DIVESTITURE

During the year ended June 30, 2020, we completed the sale of certain assets of the non-core specialty alloys and metals business within the Infrastructure segment located in New Castle, Pennsylvania to Advanced Metallurgical Group N.V. for an aggregate price of $24.0 million.

The net book value of these assets at closing was $29.5 million, and the pre-tax loss on divestiture recognized during the year ended June 30, 2020 was $6.5 million. Transaction proceeds were primarily used for capital expenditures related to our simplification/modernization efforts. During the year ended June 30, 2022, we recorded a pre-tax gain of $1.0 million on the New Castle divestiture due to proceeds held in escrow until November 2021.

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Fair Value Measurements

12 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

Fair value is defined as the price that would be received to sell 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 June 30, 2022, the fair values of the Company’s financial assets and financial liabilities measured at fair value on a recurring basis are categorized as follows: 

(in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Derivatives (1)	$	—	$	176	$	—	$	176
Total assets at fair value	$	—	$	176	$	—	$	176
Liabilities:
Derivatives (1)	$	—	$	574	$	—	$	574
Total liabilities at fair value	$	—	$	574	$	—	$	574

As of June 30, 2021, the fair value of the Company’s financial assets and financial liabilities measured at fair value on a recurring basis are categorized as follows:

(in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Derivatives (1)	$	—	$	36	$	—	$	36
Total assets at fair value	$	—	$	36	$	—	$	36
Liabilities:
Derivatives (1)	$	—	$	87	$	—	$	87
Total liabilities at fair value	$	—	$	87	$	—	$	87

 

 (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.

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Derivative Instruments and Hedging Activities

12 Months Ended

Jun. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

NOTE 6 — DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

As part of our financial risk management program, we use certain derivative financial instruments. See Note 2 for discussion on our derivative instruments and hedging activities policy.

There are no derivatives designated as hedging instruments as of June 30, 2022 or 2021. The fair value of derivatives not designated as hedging instruments in the consolidated balance sheets are as follows:

(in thousands)	2022		2021
Derivatives not designated as hedging instruments
Other current assets - currency forward contracts	$	176	$	36
Other current liabilities - currency forward contracts	(574)		(87)
Total derivatives not designated as hedging instruments	(398)		(51)
Total derivatives	$	(398)	$	(51)

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 consolidated balance sheets, with the offset to other income, net. Losses related to derivatives not designated as hedging instruments have been recognized as follows:

(in thousands)	2022		2021		2020
Other income, net - currency forward contracts	$	377	$	2	$	210

CASH FLOW HEDGES

During fiscal 2020 we entered into seven forward-starting interest rate swap contracts with an aggregate notional amount totaling $200.0 million. A forward-starting interest rate swap is an agreement that effectively hedges the variability in future benchmark interest payments attributable to changes in interest rates on the forecasted issuance of fixed-rate debt. During fiscal 2021, upon issuance of the Senior Unsecured Notes due 2031 (see Note 11 for more information) we settled the forward starting interest rate swap contracts for a gain of $10.2 million in other comprehensive income (loss). The gain will be amortized out of accumulated other comprehensive income (loss) and into interest expense (as a benefit) over the life of the Senior Unsecured Notes due 2031. There were no interest rate swap contracts outstanding at June 30, 2022 or 2021.

NET INVESTMENT HEDGES

As of June 30, 2022 and 2021 we had foreign currency-denominated intercompany loans payable with total aggregate principal amounts of €13 million and €5.2 million, respectively, designated as net investment hedges to hedge the foreign exchange exposure of our net investment in Euro-based subsidiaries. A gain of $0.8 million, a loss of $1.9 million, and a gain of $0.6 million were recorded as a component of foreign currency translation adjustments in other comprehensive income (loss) during 2022, 2021 and 2020, respectively.

As of June 30, 2022 and 2021, the foreign currency-denominated intercompany loans payable designated as net investment hedges consisted of:

(in thousands)	2022		2021
Instrument	Notional (EUR)(2)	Notional (USD)(2)	Notional (EUR)(2)	Notional (USD)(2)	Maturity
Foreign currency-denominated intercompany loan payable	€0	$0	€5,173	$6,146	June 26, 2022
Foreign currency-denominated intercompany loan payable	€13,013	$13,531	€0	$0	August 31, 2022

(2) Includes principal and accrued interest.

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Inventories

12 Months Ended

Jun. 30, 2022

Inventory Disclosure [Abstract]

INVENTORIES

INVENTORIES

Inventories consisted of the following at June 30: 

(in thousands)	2022		2021
Finished goods	$	316,936	$	302,524
Work in process and powder blends	231,214		173,671
Raw materials	107,024		72,551
Inventories at current cost	655,174		548,746
Less: LIFO valuation	(84,338)		(72,401)
Total inventories	$	570,836	$	476,345

We used the LIFO method of valuing inventories for approximately 39 percent of total inventories at June 30, 2022 and 2021, respectively.

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Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets

12 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure

NOTE 8 — GOODWILL AND OTHER INTANGIBLE ASSETS

As of June 30, 2022, $264.2 million of goodwill was allocated to the Metal Cutting reporting unit. We completed an annual quantitative test of goodwill impairment and determined that the fair value of the reporting unit substantially exceeded the carrying value and, therefore, no impairment was recorded during 2022. Further, an indefinite-lived trademark intangible asset of $10.4 million in the Metal Cutting reporting unit had a fair value that exceeded its carrying value as of the date of the annual impairment test and, therefore, no impairment was recorded during 2022.

December Quarter of Fiscal 2020 Impairment Charge

In the December quarter of fiscal 2020, the Company experienced deteriorating market conditions, primarily in general engineering and transportation applications in India and China, in addition to overall global weakness in the manufacturing sector. In view of these declining conditions and the significant detrimental effect on cash flows and actual and projected revenue and earnings compared with the fiscal 2019 annual impairment test, we determined that an impairment triggering event had occurred and performed an interim quantitative impairment test of our goodwill, indefinite-lived trademark intangible asset and other long-lived assets of our former Widia reporting unit. We evaluated the recoverability of goodwill for the reporting unit by comparing the fair value with its carrying value, with the fair values determined using a combination of a discounted cash flow analysis and market multiples based upon historical and projected financial information. As a result of this interim test, we recorded a non-cash pre-tax impairment charge during the three months ended December 31, 2019 of $14.6 million in the former Widia segment, which is now part of the Metal Cutting segment as of July 1, 2020, of which $13.1 million was for goodwill and $1.5 million was for an indefinite-lived trademark intangible asset. These impairment charges were recorded in goodwill and other intangible assets impairments in our consolidated statements of income. No impairment was recorded for the other long-lived assets.

March Quarter of Fiscal 2020 Impairment Charge

In the March quarter of fiscal 2020, the decline in actual and projected financial results for the former Widia reporting unit, primarily as a result of the COVID-19 pandemic, represented an interim impairment triggering event because there was essentially zero cushion between the reporting unit's carrying value and fair value as of March 31 2020. This is because the former Widia reporting unit was recorded at fair value as of the December 31, 2019 interim impairment testing date. We evaluated the recoverability of goodwill for the reporting unit by comparing the fair value with its carrying value, with the fair values determined using a combination of a discounted cash flow analysis and market multiples based upon historical and projected financial information. As a result of this interim test, we recorded a non-cash pre-tax impairment charge during the three months ended March 31, 2020 of $15.6 million in the former Widia segment, of which $13.7 million was for goodwill and $1.9 million was for an indefinite-lived trademark intangible asset. These impairment charges were recorded in goodwill and other intangible assets impairments in our consolidated statements of income. No impairment was recorded for the other long-lived assets.

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

(in thousands)	Metal Cutting		Infrastructure		Total
Gross goodwill	$	448,241	$	633,211	$	1,081,452
Accumulated impairment losses	(177,661)		(633,211)		(810,872)
Balance as of June 30, 2020	$	270,580	$	—	$	270,580
Activity for the year ended June 30, 2021:
Change in gross goodwill due to translation	7,035		—		7,035
Gross goodwill	455,276		633,211		1,088,487
Accumulated impairment losses	(177,661)		(633,211)		(810,872)
Balance as of June 30, 2021	$	277,615	$	—	$	277,615
Activity for the year ended June 30, 2022:
Change in gross goodwill due to translation	(13,385)		—		(13,385)
Gross goodwill	441,891		633,211		1,075,102
Accumulated impairment losses	(177,661)		(633,211)		(810,872)
Balance as of June 30, 2022	$	264,230	$	—	$	264,230

The components of our other intangible assets were as follows: 

	Estimated Useful Life (in years)	June 30, 2022				June 30, 2021
(in thousands)		Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Technology-based and other	4 to 20	$	31,592	$	(22,734)	$	33,632	$	(24,413)
Customer-related	10 to 21	180,263		(104,698)		183,338		(98,901)
Unpatented technology	10 to 30	31,807		(22,950)		31,957		(20,575)
Trademarks	5 to 20	12,403		(10,317)		13,268		(10,083)
Trademarks	Indefinite	10,359		—		11,818		—
Total		$	266,424	$	(160,699)	$	274,013	$	(153,972)

Amortization expense for intangible assets was $13.0 million, $14.0 million and $13.8 million for 2022, 2021 and 2020, respectively. Estimated amortization expense for 2023 through 2027 is $12.3 million, $10.7 million, $9.6 million, $9.2 million, and $7.7 million, respectively.

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Leases, Codification Topic 840

12 Months Ended

Jun. 30, 2022

Leases [Abstract]

Lessee, Operating Leases

LEASES

At the inception of our contracts, we determine if the contract is or contains a lease. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. ROU assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at commencement. For leases that do not have a readily determinable implicit rate, we use a discount rate based on our incremental borrowing rate, which is determined considering factors such as the lease term, our credit rating and the economic environment of the location of the lease as of the commencement date.

We account for non-lease components separately from lease components. These costs often relate to the payments for a proportionate share of real estate taxes, insurance, common area maintenance and other operating costs in addition to base rent. We also do not recognize ROU assets and liabilities for leases with an initial term of 12 months or less. Lease costs associated with leases of less than 12 months were $3.7 million, $2.4 million and $6.4 million for the years ended June 30, 2022, 2021 and 2020, respectively.

As a lessee, we have various operating lease agreements primarily related to real estate, vehicles and office and plant equipment. Our real estate leases, which are comprised primarily of manufacturing, warehousing, office and administration facilities, represent a majority of our lease liability. Our lease payments are largely fixed. Any variable lease payments, including utilities, common area maintenance and repairs and maintenance, are expensed during the period incurred. Variable lease costs were immaterial for the year ended June 30, 2022, 2021 and 2020. A majority of our real estate leases include options to extend the lease and options to early terminate the lease. Leases with an early termination option generally involve a termination payment. We review all options to extend, terminate, or purchase the ROU assets at the inception of the lease and account for these options when they are reasonably certain of being exercised. Our lease agreements generally do not contain any material residual value guarantees or materially restrictive covenants. We do not have any material leases that have been signed but not commenced, and we did not have any lease transactions with related parties.

Operating lease expense is recognized on a straight-line basis over the lease term and is included in operating expense on our consolidated statements of income. Operating lease cost was $21.3 million, $20.2 million and $22.6 million in 2022, 2021 and 2020, respectively.

The following table sets forth supplemental balance sheet information related to our operating leases:

Year Ended June 30	2022		2021		2020
Weighted average remaining lease term	8.1 years		8.0 years		8.6 years
Weighted average discount rate	3.2	%	3.3	%	3.3	%

The following table sets forth supplemental cash flow information related to our operating leases:

Year Ended June 30 (in thousands)	2022		2021		2020
Operating cash outflows from operating leases	$	17,592	$	17,651	$	15,635
ROU assets obtained in exchange for new operating lease liabilities	$	15,430	$	17,235	$	16,171

The following table sets forth the maturities of our operating lease liabilities and reconciles the respective undiscounted payments to the operating lease liabilities in the consolidated balance sheet as of June 30, 2022:

Year Ended June 30	(in thousands)
2023	$	13,383
2024	10,195
2025	7,374
2026	4,672
2027	3,110
Thereafter	16,029
Total undiscounted operating lease payments	$	54,763
Less: discount to net present value	7,034
Total operating lease liabilities	$	47,729

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Other Current Liabilities

12 Months Ended

Jun. 30, 2022

Other Liabilities, Current [Abstract]

Other Current Liabilities [Text Block]

OTHER CURRENT LIABILITIES

Other current liabilities consisted of the following at June 30:

(in thousands)	2022		2021
Accrued employee benefits	$	35,270	$	51,783
Payroll, state and local taxes	9,989		6,873
Accrued professional and legal fees	9,489		8,428
Accrued environmental	7,938		2,561
Accrued restructuring (Note 16)	6,019		19,851
Accrued interest	3,394		3,520
Other	66,304		64,586
Total other current liabilities	$	138,403	$	157,602

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Long-Term Debt

12 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Long-term Debt [Text Block]

NOTE 11 — LONG-TERM DEBT

Long-term debt consisted of the following at June 30:

(in thousands)	2022		2021
2.800% Senior Unsecured Notes due fiscal 2031, net of discount of $0.2 million for 2022 and $0.2 million for 2021	$	299,842	$	299,823
4.625% Senior Unsecured Notes due fiscal 2028, net of discount of $1.3 million for 2022 and $1.5 million for 2021	298,702		298,483
Total term debt	598,544		598,306
Less unamortized debt issuance costs	(4,180)		(6,198)
Total long-term debt	$	594,364	$	592,108

Senior Unsecured Notes In February 2021, we issued $300.0 million of 2.800 percent Senior Unsecured Notes with a maturity date of March 1, 2031. Interest is paid semi-annually on March 1 and September 1 of each year. During 2021, we settled forward starting interest rate swap contracts for a gain of $10.2 million related to the bond issuance as discussed in Note 6. In March 2021, we used the net proceeds from the bond issuance, plus cash on hand, for the early extinguishment of our $300.0 million of 3.875 percent Senior Unsecured Notes due 2022 (the 2022 Senior Notes). Due to the early extinguishment, interest expense during 2021 includes a make-whole premium of $9.6 million and the acceleration of a loss in the amount of $2.6 million from other comprehensive loss related to forward starting interest rate contracts that were used to hedge the interest payments of the 2022 Senior Notes. A stranded tax benefit associated with the termination of this hedge was also recognized during 2021. Refer to Note 13 for more information related to the stranded tax benefit. On June 7, 2018, we issued $300.0 million of 4.625 percent Senior Unsecured Notes with a maturity date of June 15, 2028. Interest on these notes is paid semi-annually on June 15 and December 15 of each year.

Future principal maturities of long-term debt are $300.0 million in 2028 and $300.0 million in 2031.

Fixed rate debt had a fair market value of $536.1 million and $644.2 million at June 30, 2022 and 2021, respectively. The Level 2 fair value is determined based on the quoted market prices for similar debt instruments as of June 30, 2022 and 2021, respectively.

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Notes Payable and Lines of Credit

12 Months Ended

Jun. 30, 2022

Notes Payable and Lines of Credit [Abstract]

Notes Payable and Lines of Credit

NOTE 12 — REVOLVING AND OTHER LINES OF CREDIT AND NOTES PAYABLE

Credit Agreement During fiscal 2022, we entered into the Sixth Amended and Restated Credit Agreement dated as of June 14, 2022 (the Credit Agreement). The Credit Agreement is a five-year, multi-currency, revolving credit facility, which we use to augment cash from operations and as an additional source of funds. The Credit Agreement provides for revolving credit loans of up to $700.0 million for working capital, capital expenditures and general corporate purposes. The Credit Agreement allows for borrowings in U.S. dollars, euros, Canadian dollars, pounds sterling and Japanese yen. Interest payable under the Credit Agreement is based upon the type of borrowing under the facility and may be (1) Euro Interbank Offered Rate (EURIBOR), Sterling Overnight Index Average (SONIA), Tokyo Interbank Offered Rate (TIBOR), Secured Overnight Financing Rate (SOFR), and Canadian Dollar Offered Rate (CDOR) for any borrowings in euros, pounds sterling, yen, U.S. dollars and Canadian dollars, respectively, plus an applicable margin, (2) the greater of the prime rate or the Federal Funds effective rate plus an applicable margin, or (3) fixed as negotiated by us. The Credit Agreement matures in June 2027.

The Credit Agreement requires us to comply with various restrictive and affirmative covenants, including one financial covenant: a maximum leverage ratio where debt, net of domestic cash in excess of $25 million and sixty percent of the unrestricted cash held outside of the United States, must be less than or equal to 3.75 times trailing twelve months EBITDA, adjusted for certain non-cash expenses.

As of June 30, 2022, we were in compliance with all covenants of the Credit Agreement and we had $19.0 million of borrowings outstanding and $681.0 million of availability. There were no borrowings outstanding as of June 30, 2021. The weighted average interest rate on borrowings under the Credit Agreement was 1.4 percent for the year ended June 30, 2022.

Borrowings on other lines of credit and notes payable were $2.2 million and $8.4 million at June 30, 2022 and 2021, respectively. The lines of credit represented short-term borrowings under credit lines with commercial banks in the various countries in which we operate. The availability of these credit lines, translated into U.S. dollars at June 30, 2022 exchange rates, totaled $60.7 million.

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Income Taxes

12 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

Income (loss) before income taxes consisted of the following for the years ended June 30: 

(in thousands)	2022			2021			2020
Income (loss) before income taxes:
United States	$	10,109		$	(60,775)		$	(76,107)
International	196,624			125,435			78,067
Total income before income taxes	$	206,733		$	64,660		$	1,960
Current income taxes:
Federal	$	1,115		$	39		$	(3,558)
State	106			133			905
International	44,019			30,726			33,559
Total current income taxes	45,240			30,898			30,906
Deferred income taxes:
Federal	$	10,841		$	(23,170)		$	(9,113)
State	(676)			(2,948)			724
International	1,127			1,463			(15,510)
Total deferred income taxes:	11,292			(24,655)			(23,899)
Provision for income taxes	$	56,532		$	6,243		$	7,007
Effective tax rate	27.3		%	9.7		%	357.5		%

Coronavirus Aid, Relief, and Economic Security Act (CARES Act)

On March 27, 2020, the CARES Act was enacted in response to the COVID-19 pandemic. The CARES Act, among other things, allows net operating losses arising in taxable years beginning after December 31, 2017 and before January 1, 2021 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes; permits net operating loss carryovers and carrybacks to offset 100 percent of taxable income for taxable years beginning before January 1, 2021; and modifies the limitation on business interest by increasing the allowable business interest deduction from 30 percent of adjusted taxable income to 50 percent of adjusted taxable income for taxable years beginning in 2019 or 2020. We carried back our taxable loss in the U.S. for fiscal 2020 under the provisions of the CARES Act and recorded a benefit in our tax provision during fiscal 2020.

Swiss tax reform

Legislation was effectively enacted during the December quarter of fiscal 2020 when the Canton of Schaffhausen approved the Federal Act on Tax Reform and AHV Financing on October 8, 2019 (Swiss tax reform). Significant changes from Swiss tax reform include the abolishment of certain favorable tax regimes and the creation of a multi-year transitional period at both the federal and cantonal levels.

The transitional provisions of Swiss tax reform allow companies to utilize a combination of lower tax rates and tax basis adjustments to fair value, which are used for tax depreciation and amortization purposes resulting in deductions over the transitional period. To reflect the federal and cantonal transitional provisions, as they apply to us, we recorded a deferred tax asset of $14.5 million during the December quarter of fiscal 2020. We consider the deferred tax asset from Swiss tax reform to be an estimate based on our current interpretation of the legislation, which is subject to change based on further legislative guidance, review with the Swiss federal and cantonal authorities, and modifications to the underlying valuation. We anticipate finalization of the deferred tax asset within the next six months.

The reconciliation of income taxes computed using the statutory U.S. income tax rate and the provision for income taxes was as follows for the years ended June 30:

(in thousands)	2022		2021		2020
Income taxes at U.S. statutory rate	$	43,414	$	13,579	$	412
State income taxes, net of federal tax benefit	(450)		(1,725)		1,283
U.S. income taxes provided on international income	12,815		(6,479)		12,422
Combined tax effects of international income	2,747		5,860		10,583
Impact of goodwill impairment charges	—		—		5,651
Change in valuation allowance and other uncertain tax positions	(614)		1,127		755
U.S. research and development credit	(2,814)		(3,055)		(4,093)
Change in permanent reinvestment assertion	775		—		—
Combined effects of Swiss tax reform	—		—		(14,500)
Combined effects of the U.S. CARES Act	—		—		(6,913)
Recognition of stranded deferred tax balance	—		(3,465)		—
Other	659		401		1,407
Provision for income taxes	$	56,532	$	6,243	$	7,007

During 2021, we recorded a tax benefit of $3.5 million for the recognition of a stranded deferred tax balance in accumulated other comprehensive loss associated with the forward starting interest rate swap contracts that were terminated when the 2022 Senior Notes were extinguished. The impact of this item is included in the tax reconciliation table under the caption “Recognition of stranded deferred tax balance” and in the consolidated statements of cash flows as a non-cash item within the caption "Debt refinancing charge."

During 2021, we recorded a net tax benefit of $9.3 million related to a tax election made in our fiscal 2020 U.S. income tax return pursuant to global intangible low-taxed income (GILTI) regulations which were issued during the current fiscal year. The impact of this item is included in the tax reconciliation table under the caption “U.S. income taxes provided on international income.”

The components of net deferred tax assets and liabilities were as follows at June 30:

(in thousands)	2022		2021
Deferred tax assets:
Net operating loss (NOL) carryforwards	$	25,868	$	44,258
Inventory valuation and reserves	11,747		11,068
Pension benefits	—		7,136
Other postretirement benefits	3,050		3,486
Accrued employee benefits	11,775		11,168
Operating lease liabilities	11,995		12,652
Other accrued liabilities	12,992		15,596
Tax credits and other carryforwards	34,930		32,490
Intangible assets	4,246		7,784
Total	116,603		145,638
Valuation allowance	14,385		21,263
Total deferred tax assets	$	102,218	$	124,375
Deferred tax liabilities:
Tax depreciation in excess of book	$	57,109	$	63,020
Operating lease right-of-use assets	11,852		12,502
Unremitted earnings not permanently reinvested	7,242		6,429
Pension benefits	1,061		—
Other	2,537		7,392
Total deferred tax liabilities	$	79,801	$	89,343
Total net deferred tax assets (liabilities)	$	22,417	$	35,032

As of June 30, 2022, we have $25.9 million of U.S. net deferred tax assets. Within this amount is $46.2 million related to net operating loss, tax credit, and other carryforwards that can be used to offset future U.S. taxable income. Certain of these carryforwards will expire if they are not used within a specified timeframe. At this time, we consider it more likely than not that we will have sufficient U.S. taxable income in the future that will allow us to realize these net deferred tax assets. However, it is possible that some or all of these tax attributes could ultimately expire unused. Therefore, if we are unable to generate sufficient U.S. taxable income from our operations, a valuation allowance to reduce the U.S. net deferred tax assets may be required, which would materially increase income tax expense in the period in which the valuation allowance is recorded.

Included in deferred tax assets at June 30, 2022 is $34.9 million associated with tax credits and other carryforward items in the U.S. and Europe. Of that amount, $2.5 million expires through 2032, $4.6 million expires through 2037, $19.1 million expires through 2042, $1.5 million does not expire, and $7.2 million is amortizable over ten years.

Included in deferred tax assets at June 30, 2022 is $25.9 million associated with NOL carryforwards in U.S. state and foreign jurisdictions. Of that amount, $4.7 million expires through 2027, $2.0 million expires through 2032, $3.2 million expires through 2037, $2.2 million expires through 2042, and the remaining $13.8 million does not expire. The realization of these tax benefits is primarily dependent on future taxable income in these jurisdictions.

A valuation allowance of $14.4 million has been placed against deferred tax assets primarily in U.S. state, Brazil, Bolivia, and Russia jurisdictions, all of which would be allocated to income tax expense upon realization of the deferred tax assets. As the respective operations generate sufficient income, the valuation allowances will be partially or fully reversed at such time we believe it will be more likely than not that the deferred tax assets will be realized. In 2022, the valuation allowance related to these deferred tax assets decreased by $6.9 million.

We consider the majority of the $1.5 billion unremitted earnings of our non-U.S. subsidiaries to be permanently reinvested. With regard to these unremitted earnings, we have not, nor do we anticipate the need to, repatriate funds to the U.S. to satisfy domestic liquidity needs arising in the ordinary course of business, including liquidity needs associated with our domestic debt service requirements. Determination of the amount of unrecognized deferred tax liability related to indefinitely reinvested earnings is not practicable due to our legal entity structure and the complexity of U.S. and local tax laws. With regard to the small portion of unremitted earnings that are not indefinitely reinvested, we maintain a deferred tax liability for foreign withholding and U.S. state income taxes. The deferred tax liability associated with unremitted earnings of our non-U.S. subsidiaries not permanently reinvested is $7.2 million as of June 30, 2022.

A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest and penalty) is as follows as of June 30:

(in thousands)	2022		2021		2020
Balance at beginning of year	$	8,656	$	8,680	$	8,952
Increases for tax positions of prior years	105		—		—
Decreases related to lapse of statute of limitations	(779)		(229)		(214)
Foreign currency translation	(384)		205		(58)
Balance at end of year	$	7,598	$	8,656	$	8,680

The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate in 2022, 2021 and 2020 is $7.6 million, $8.7 million and $8.7 million, respectively. We believe that it is reasonably possible that the amount of unrecognized tax benefits will decrease by approximately $2.0 million within the next twelve months.

Our policy is to recognize interest and penalties related to income taxes as a component of the provision for income taxes in the consolidated statements of income. We recognized an increase of $0.1 million and $1.0 million in 2022 and 2020, respectively, and a decrease of $0.2 million in 2021. As of June 30, 2022 and 2021, the amount of interest accrued was $1.4 million in both periods. As of June 30, 2022 and 2021, there was no penalty accrued.

With few exceptions, we are no longer subject to income tax examinations by tax authorities for years prior to 2015. The Internal Revenue Service has audited or the statute of limitations has expired for all U.S. tax years prior to 2018. Various state and foreign jurisdiction tax authorities are in the process of examining our income tax returns for various tax years ranging from 2015 to 2019. We continuously review our uncertain tax positions and evaluate any potential issues that may lead to an increase or decrease in the total amount of unrecognized tax benefits recorded.

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Pension and Other Postretirement Benefits

12 Months Ended

Jun. 30, 2022

Retirement Benefits [Abstract]

Pension and Other Postretirement Benefits Disclosure

PENSION AND OTHER POSTRETIREMENT BENEFITS

Defined Benefit Pension Plans

We have defined benefit pension plans that cover certain employees in the U.S., Germany, the UK, Switzerland, Canada and Israel. Pension benefits under defined benefit pension plans are based on years of service and, for certain plans, on average compensation for specified years preceding retirement. We fund pension costs in accordance with the funding requirements of the Employee Retirement Income Security Act of 1974 (ERISA), as amended, for U.S. plans and in accordance with local regulations or customs for non-U.S. plans. The accrued benefit for all participants in the Kennametal Inc. Retirement Income Plan was frozen as of December 31, 2016. The majority of our defined benefit pension plans are closed to future participation.

We have an Executive Retirement Plan for certain executives and a Supplemental Executive Retirement Plan both of which are closed to future participation as of June 15, 2017 and July 26, 2006, respectively.

We presently provide varying levels of postretirement health care and life insurance benefits to certain employees and retirees. By fiscal 2019, participants over the age of 65 were transitioned to a private exchange and some received a fixed Health Retirement Account (HRA) contribution to offset the cost of their coverage. Postretirement health and life benefits are closed to future participants as of December 31, 2016.

We use a June 30 measurement date for all of our plans. During fiscal 2021, as part of the plan to wind-up the fully frozen, overfunded Canadian defined benefit pension plans, the Company purchased an upfront annuity for retirees resulting in a non-cash settlement charge of $2.8 million. The Company expects to complete the wind-up of the Canadian plans by fiscal 2024.

The funded status of our pension plans and amounts recognized in the consolidated balance sheets as of June 30 were as follows:

(in thousands)	2022		2021
Change in benefit obligation:
Benefit obligation, beginning of year	$	968,725	$	1,004,005
Service cost	1,117		1,685
Interest cost	22,532		23,188
Participant contributions	479		548
Actuarial gains	(170,055)		(16,794)
Benefits and expenses paid	(53,149)		(52,719)
Currency translation adjustments	(27,074)		23,276
Plan amendments	(66)		(129)
Plan settlements	(1,805)		(13,966)
Plan curtailments	(3)		(10)
Other adjustments	308		(359)
Benefit obligation, end of year	$	741,009	$	968,725
Change in plans' assets:
Fair value of plans' assets, beginning of year	$	890,104	$	876,036
Actual return on plans' assets	(133,374)		54,026
Company contributions	8,170		9,998
Participant contributions	479		548
Plan settlements	(1,805)		(13,966)
Benefits and expenses paid	(53,149)		(52,719)
Currency translation adjustments	(14,455)		16,032
Other adjustments	(5)		149
Fair value of plans' assets, end of year	$	695,965	$	890,104
Funded status of plans	$	(45,044)	$	(78,621)
Amounts recognized in the balance sheets consist of:
Long-term prepaid benefit	$	66,433	$	89,233
Short-term accrued benefit obligation	(6,406)		(6,918)
Accrued pension benefits	(105,071)		(160,936)
Net amount recognized	$	(45,044)	$	(78,621)

The pre-tax amounts related to our defined benefit pension plans recognized in accumulated other comprehensive loss were as follows at June 30:

(in thousands)	2022		2021
Unrecognized net actuarial losses	$	274,416	$	279,628
Unrecognized net prior service costs	1,822		2,001
Unrecognized transition obligations	158		277
Total	$	276,396	$	281,906

To the best of our knowledge and belief, the asset portfolios of our defined benefit pension plans do not contain our capital stock. Apart from the partial annuitization of the Canadian plans as previously mentioned, we do not issue insurance contracts to cover future annual benefits of defined benefit pension plan participants. Transactions between us and our defined benefit pension plans include the reimbursement of plan expenditures incurred by us on behalf of the plans. To the best of our knowledge and belief, the reimbursement of cost is permissible under current ERISA rules or local government law. The accumulated benefit obligation for all defined benefit pension plans was $740.4 million and $967.5 million as of June 30, 2022 and 2021, respectively.

Included in the above information are plans with accumulated benefit obligations exceeding the fair value of plan assets as of June 30 as follows:

(in thousands)	2022		2021
Projected benefit obligation	$	118,199	$	174,973
Accumulated benefit obligation	117,614		173,684
Fair value of plan assets	6,718		7,116

The components of net periodic pension income include the following as of June 30:

(in thousands)	2022		2021		2020
Service cost	$	1,117	$	1,685	$	1,796
Interest cost	22,532		23,188		27,320
Expected return on plans' assets	(51,928)		(53,653)		(53,943)
Amortization of transition obligation	94		94		88
Amortization of prior service cost	13		34		50
Curtailment	(2)		(7)		(115)
Settlement	205		3,190		(51)
Recognition of actuarial losses	11,702		13,606		10,359
Other adjustments	277		(473)		288
Net periodic pension income	$	(15,990)	$	(12,336)	$	(14,208)

As of June 30, 2022, the projected benefit payments, including future service accruals for these plans for 2023 through 2027, are $53.2 million, $54.4 million, $54.9 million, $54.5 million and $54.5 million, respectively, and $260.4 million in 2028 through 2032.

The amounts of accumulated other comprehensive loss expected to be recognized in net periodic pension cost during 2023 related to net actuarial losses are $4.5 million. The amount of accumulated other comprehensive income expected to be recognized in net periodic pension cost during 2023 related to transition obligations and prior service cost is immaterial.

We expect to contribute approximately $7.9 million to our pension plans in 2023, which is primarily for international plans.

Other Postretirement Benefit Plans

The funded status of our other postretirement benefit plans and the related amounts recognized in the consolidated balance sheets were as follows:

(in thousands)	2022		2021
Change in benefit obligation:
Benefit obligation, beginning of year	$	11,383	$	12,365
Interest cost	288		307
Actuarial losses	(1,402)		60
Benefits paid	(1,224)		(1,281)
Other	68		(68)
Benefit obligation, end of year	$	9,113	$	11,383
Funded status of plan	$	(9,113)	$	(11,383)
Amounts recognized in the balance sheets consist of:
Short-term accrued benefit obligation	$	(1,189)	$	(1,252)
Accrued postretirement benefits	(7,924)		(10,131)
Net amount recognized	$	(9,113)	$	(11,383)

The pre-tax amounts related to our other postretirement benefit plans which were recognized in accumulated other comprehensive loss were as follows at June 30:

(in thousands)	2022		2021
Unrecognized net actuarial losses	$	2,657	$	4,355
Unrecognized net prior service credits	(1,649)		(1,924)
Total	$	1,008	$	2,431

The components of net periodic other postretirement benefit cost include the following for the years ended June 30:

(in thousands)	2022		2021		2020
Interest cost	$	288	$	307	$	404
Amortization of prior service credit	(276)		(276)		(276)
Recognition of actuarial loss	297		307		257
Net periodic other postretirement benefit cost	$	309	$	338	$	385

As of June 30, 2022, the projected benefit payments, including future service accruals for our other postretirement benefit plans for 2023 through 2027, are $1.2 million, $1.1 million, $1.0 million, $0.9 million and $0.9 million, respectively, and $3.4 million in 2028 through 2032.

The amounts of accumulated other comprehensive loss expected to be recognized in net periodic pension cost during 2023 related to net actuarial losses and related to prior service credit are costs of $0.2 million and income of $0.3 million, respectively.

We expect to contribute approximately $1.2 million to our other postretirement benefit plans in 2023.

The service cost component of net periodic pension income of $1.1 million, $1.7 million and $1.8 million for 2022, 2021 and 2020, respectively, was reported as a component of cost of goods sold and operating expense. The other components of net periodic pension income and net periodic other postretirement benefit cost totaling a net benefit of $16.8 million, $13.7 million and $15.6 million for 2022, 2021 and 2020, respectively, were presented as a component of other income, net.

Assumptions

The significant actuarial assumptions used to determine the present value of net benefit obligations for our defined benefit pension plans and other postretirement benefit plans were as follows:

	2022		2021		2020
Discount Rate:
U.S. plans	4.3-5.0%		1.2-3.0%		1.6-2.9%
International plans	2.0-5.0%		0.3-3.2%		0.2-2.4%
Rates of future salary increases:
U.S. plans (Executive Retirement Plan only)	4.0	%	4.0	%	4.0	%
International plans	1.5	%	1.5	%	1.5	%

The significant assumptions used to determine the net periodic income for our pension and other postretirement benefit plans were as follows:

	2022		2021		2020
Discount Rate:
U.S. plans	1.2-3.0%		1.6-2.9%		2.7-3.6%
International plans	0.3-3.2%		0.2-2.4%		0.4-2.9%
Rates of future salary increases:
U.S. plans (Executive Retirement Plan only)	4.0	%	4.0	%	4.0	%
International plans	1.5	%	1.5	%	1.8-3.0%
Rate of return on plans assets:
U.S. plans	6.5	%	6.8	%	7.0	%
International plans	0.3-5.0%		0.2-5.3%		0.4-5.3%

The rates of return on plan assets are based on historical performance, as well as future expected returns by asset class considering macroeconomic conditions, current portfolio mix, long-term investment strategy and other available relevant information.

The annual assumed rate of increase in the per capita cost of covered benefits (the health care cost trend rate) for our postretirement benefit plans was as follows: 

	2022		2021		2020
Health care costs trend rate assumed for next year	6.3	%	6.5	%	6.8	%
Rate to which the cost trend rate gradually declines	5.0	%	5.0	%	5.0	%
Year that the rate reaches the rate at which it is assumed to remain	2027		2027		2027

A change of one percentage point in the assumed health care cost trend rates would have an immaterial effect on both the total service and interest cost components of our other postretirement cost and other postretirement benefit obligation at June 30, 2022.

Plan Assets

The primary objective of certain of our pension plans' investment policies is to ensure that sufficient assets are available to provide the benefit obligations at the time the obligations come due. The overall investment strategy for the defined benefit pension plans' assets combines considerations of preservation of principal and moderate risk-taking. The assumption of an acceptable level of risk is warranted in order to achieve satisfactory results consistent with the long-term objectives of the portfolio. Fixed income securities comprise a significant portion of the portfolio due to their plan-liability-matching characteristics and to address the plans' cash flow requirements. Additionally, diversification of investments within each asset class is utilized to further reduce the effect of losses in single investments.

Investment management practices for U.S. defined benefit pension plans must comply with ERISA and all applicable regulations and rulings thereof. The use of derivative instruments is permitted where appropriate and necessary for achieving overall investment policy objectives. Currently, the use of derivative instruments is not significant when compared to the overall investment portfolio.

The Company utilizes a liability driven investment strategy (LDI) for the assets of its U.S. defined benefit pension plans in order to reduce the volatility of the funded status of these plans and to meet the obligations at an acceptable cost over the long term. This LDI strategy entails modifying the asset allocation and duration of the assets of the plans to more closely match the liability profile of these plans. The asset reallocation involves increasing the fixed income allocation, reducing the equity component and adding alternative investments. Longer duration interest rate swaps have been utilized periodically in order to increase the overall duration of the asset portfolio to more closely match the liabilities.

Our defined benefit pension plans’ asset allocations as of June 30, 2022 and 2021 and target allocations for 2023, by asset class, were as follows:

	2022		2021		Target %
Equity	14	%	20	%	14	%
Fixed Income	82	%	76	%	79	%
Other	4	%	4	%	7	%

The following sections describe the valuation methodologies used by the trustee to measure the fair value of the defined benefit pension plan assets, including an indication of the level in the fair value hierarchy in which each type of asset is generally classified (see Note 5 for the definition of fair value and a description of the fair value hierarchy).

Corporate fixed income securities Investments in corporate fixed income securities consist of corporate debt and asset backed securities. These investments are classified as level two and are valued using independent observable market inputs such as the treasury curve, swap curve and yield curve.

Common stock Common stocks are classified as level one and are valued at their quoted market price.

Government securities Investments in government securities consist of fixed income securities such as U.S. government and agency obligations and foreign government bonds and asset and mortgage backed securities such as obligations issued by government sponsored organizations. These investments are classified as level two and are valued using independent observable market inputs such as the treasury curve, credit spreads and interest rates.

Other fixed income securities Investments in other fixed income securities are classified as level two and valued based on observable market data.

Other Other investments consist primarily of state and local obligations and short term investments including cash, corporate notes, and various short term debt instruments which can be redeemed within a nominal redemption notice period. These investments are primarily classified as level two and are valued using independent observable market inputs.

The fair value methods described may not be reflective of future fair values. Additionally, while the Company believes the valuation methods used by the plans’ trustee are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in different fair value measurement at the reporting date.

The following table presents the fair value of the benefit plans' assets by asset category as of June 30, 2022:

(in thousands)	Level 1		Level 2		Level 3		NAV(3)		Total
Common / collective trusts (3):
Blend funds	$	—	$	—	$	—	$	48,973	$	48,973
Mutual funds	—		—		—		24,528		24,528
Corporate fixed income securities	—		379,324		—		—		379,324
Common stock	25,704		—		—		—		25,704
Government securities:
U.S. government securities	—		130,064		—		—		130,064
Foreign government securities	—		40,729		—		—		40,729
Other fixed income securities	—		20,248		—		—		20,248
Other	747		25,648		—		—		26,395
Total investments	$	26,451	$	596,013	$	—	$	73,501	$	695,965

The following table presents the fair value of the benefit plans' assets by asset category as of June 30, 2021:

(in thousands)	Level 1		Level 2		Level 3		NAV(3)		Total
Common / collective trusts (3):
Blend funds	$	—	$	—	$	—	$	90,338	$	90,338
Mutual funds	—		—		—		48,446		48,446
Corporate fixed income securities	—		443,948		—		—		443,948
Common stock	42,670		—		—		—		42,670
Government securities:
U.S. government securities	—		149,514		—		—		149,514
Foreign government securities	—		57,253		—		—		57,253
Other fixed income securities	—		21,107		—		—		21,107
Other	1,107		35,721		—		—		36,828
Total investments	$	43,777	$	707,543	$	—	$	138,784	$	890,104

(3) Investments in common / collective trusts invest primarily in publicly traded securities and are valued using net asset value (NAV) of units of a bank collective trust. Therefore, these amounts have not been classified in the fair value hierarchy and are presented in the tables to reconcile the fair value hierarchy to the total fair value of plan assets.

Defined Contribution Plans

We sponsor several defined contribution retirement plans. Costs for defined contribution plans were $14.2 million, $13.3 million and $14.7 million in 2022, 2021 and 2020, respectively.

Certain U.S. employees are eligible to participate in the Kennametal Thrift Plus Plan (Thrift), which is a qualified defined contribution plan under section 401(k) of the Internal Revenue Code. Under the Thrift, eligible employees receive a full match of their contributions up to 6 percent of eligible compensation.

All contributions, including the company match and discretionary, are made in cash and invested in accordance with participants’ investment elections. There are no minimum amounts that must be invested in company stock, and there are no restrictions on transferring amounts out of company stock to another investment choice, other than excessive trading rules applicable to such investments. Employee contributions and our matching and discretionary contributions vest immediately as of the participants' employment dates.

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Accumulated Other Comprehensive (Loss) Income

12 Months Ended

Jun. 30, 2022

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

Accumulated Other Comprehensive Loss

ACCUMULATED OTHER COMPREHENSIVE LOSS

The components of and changes in accumulated other comprehensive loss (AOCL) were as follows, net of tax, for the year ended June 30, 2022 (in thousands):

Attributable to Kennametal:	Pension and other postretirement benefits		Currency translation adjustment		Derivatives		Total
Balance, June 30, 2021	$	(213,172)	$	(122,428)	$	5,273	$	(330,327)
Other comprehensive loss before reclassifications	(4,163)		(87,620)		—		(91,783)
Amounts reclassified from AOCL	8,929		—		(770)		8,159
Net other comprehensive income (loss)	4,766		(87,620)		(770)		(83,624)
AOCL, June 30, 2022	$	(208,406)	$	(210,048)	$	4,503	$	(413,951)
Attributable to noncontrolling interests:
Balance, June 30, 2021	$	—	$	(3,982)	$	—	$	(3,982)
Other comprehensive income before reclassifications	—		(3,565)		—		(3,565)
Net other comprehensive loss	—		(3,565)		—		(3,565)
AOCL, June 30, 2022	$	—	$	(7,547)	$	—	$	(7,547)

The components of and changes in AOCL were as follows, net of tax, for the year ended June 30, 2021 (in thousands):

Attributable to Kennametal:	Pension and other postretirement benefits		Currency translation adjustment		Derivatives		Total
Balance, June 30, 2020	$	(232,634)	$	(181,027)	$	(3,581)	$	(417,242)
Other comprehensive income before reclassifications	9,107		58,599		9,255		76,961
Amounts reclassified from AOCL	10,355		—		(401)		9,954
Net other comprehensive income	19,462		58,599		8,854		86,915
AOCL, June 30, 2021	$	(213,172)	$	(122,428)	$	5,273	$	(330,327)
Attributable to noncontrolling interests:
Balance, June 30, 2020	$	—	$	(5,909)	$	—	$	(5,909)
Other comprehensive income before reclassifications	—		1,927		—		1,927
Net other comprehensive income	—		1,927		—		1,927
AOCL, June 30, 2021	$	—	$	(3,982)	$	—	$	(3,982)

The components of and changes in AOCL were as follows, net of tax, for the year ended June 30, 2020 (in thousands):

Attributable to Kennametal:	Pension and other postretirement benefits		Currency translation adjustment		Derivatives		Total
Balance, June 30, 2019	$	(222,270)	$	(147,595)	$	(3,678)	$	(373,543)
Other comprehensive loss before reclassifications	(18,299)		(33,432)		(582)		(52,313)
Amounts reclassified from AOCL	7,935		—		679		8,614
Net other comprehensive (loss) income	(10,364)		(33,432)		97		(43,699)
AOCL, June 30, 2020	$	(232,634)	$	(181,027)	$	(3,581)	$	(417,242)
Attributable to noncontrolling interests:
Balance, June 30, 2019	$	—	$	(3,450)	$	—	$	(3,450)
Other comprehensive loss before reclassifications	—		(2,459)		—		(2,459)
Net other comprehensive loss	—		(2,459)		—		(2,459)
AOCL, June 30, 2020	$	—	$	(5,909)	$	—	$	(5,909)

Reclassifications out of AOCL for the years ended June 30, 2022, 2021 and 2020 consisted of the following:

	Year Ended June 30,
Details about AOCL components (in thousands)	2022		2021		2020		Affected line item in the Income Statement
(Gains) and losses on cash flow hedges:
Forward starting interest rate swaps	$	(1,020)	$	4,082	$	2,444	Interest expense
Currency exchange contracts	—		(24)		(1,545)		Other income, net
Total before tax	(1,020)		4,058		899
Tax impact	250		(4,459)		(220)		Provision for income taxes
Net of tax	$	(770)	$	(401)	$	679
Pension and other postretirement benefits:
Amortization of transition obligations	$	94	$	94	$	88	Other income, net
Amortization of prior service credit	(263)		(242)		(226)		Other income, net
Recognition of actuarial losses	11,999		13,913		10,616		Other income, net
Total before tax	11,830		13,765		10,478
Tax impact	(2,901)		(3,410)		(2,543)		Provision for income taxes
Net of tax	$	8,929	$	10,355	$	7,935

The amount of income tax allocated to each component of other comprehensive income for the year ended June 30, 2022:

(in thousands)	Pre-tax		Tax impact		Net of tax
Reclassification of unrealized gain on expired derivatives designated and qualified as cash flow hedges	$	(1,020)	$	250	$	(770)
Unrecognized net pension and other postretirement benefit plans loss	(3,894)		(269)		(4,163)
Reclassification of net pension and other postretirement benefit plans loss	11,830		(2,901)		8,929
Foreign currency translation adjustments	(91,012)		(173)		(91,185)
Other comprehensive loss	$	(84,096)	$	(3,093)	$	(87,189)

The amount of income tax allocated to each component of other comprehensive loss for the year ended June 30, 2021:

(in thousands)	Pre-tax		Tax impact		Net of tax
Unrealized gain on derivatives designated and qualified as cash flow hedges	$	12,264	$	(3,009)	$	9,255
Reclassification of unrealized loss (gain) on expired derivatives designated and qualified as cash flow hedges	4,058		(4,459)		(401)
Unrecognized net pension and other postretirement benefit plans gain	11,901		(2,794)		9,107
Reclassification of net pension and other postretirement benefit plans loss	13,765		(3,410)		10,355
Foreign currency translation adjustments	61,038		(510)		60,528
Other comprehensive income	$	103,026	$	(14,182)	$	88,844

The amount of income tax allocated to each component of other comprehensive loss for the year ended June 30, 2020:

(in thousands)	Pre-tax		Tax impact		Net of tax
Unrealized loss on derivatives designated and qualified as cash flow hedges	$	(771)	$	189	$	(582)
Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges	899		(220)		679
Unrecognized net pension and other postretirement benefit plans loss	(23,999)		5,700		(18,299)
Reclassification of net pension and other postretirement benefit plans loss	10,478		(2,543)		7,935
Foreign currency translation adjustments	(35,936)		45		(35,891)
Other comprehensive loss	$	(49,329)	$	3,171	$	(46,158)

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Restructuring and Related Charges and Asset Impairment Charges

12 Months Ended

Jun. 30, 2022

Restructuring Charges [Abstract]

RESTRUCTURING AND RELATED CHARGES AND ASSET IMPAIRMENT CHARGES

RESTRUCTURING AND RELATED CHARGES

FY20 Restructuring Actions

In the June quarter of fiscal 2019, we implemented, and in fiscal 2020 substantially completed, the FY20 Restructuring Actions associated with our simplification/modernization initiative to reduce structural costs, improve operational efficiency and position us for long-term profitable growth. Total restructuring and related charges since inception of $54.8 million were recorded for this program through June 30, 2021, consisting of: $46.6 million in Metal Cutting and $8.3 million in Infrastructure. The FY20 Restructuring Actions are considered complete.

FY21 Restructuring Actions

In the September quarter of fiscal 2020, we announced the initiation of restructuring actions in Germany associated with our simplification/modernization initiative to reduce structural costs. Subsequently, we agreed with local employee representatives to downsize our Essen, Germany operations instead of the previously proposed closure. During the fourth quarter of fiscal 2020, we also announced the acceleration of our other structural cost reduction plans.

Total restructuring and related charges since inception of $86.4 million, compared to a target of approximately $85 million, were recorded for this program through June 30, 2022, consisting of: $78.1 million in Metal Cutting and $8.3 million in Infrastructure. The FY21 Restructuring Actions are considered substantially complete.

Annual Restructuring Charges

During 2022, we recorded restructuring and related charges of $4.2 million, which consisted of $3.6 million in Metal Cutting and $0.6 million in Infrastructure. Of this amount, a net benefit from the reversal of restructuring charges totaled $1.2 million and restructuring-related charges of $5.5 million were included in cost of goods sold.

During 2021, we recorded restructuring and related charges of $40.4 million, which consisted of $35.6 million in Metal Cutting and $4.8 million in Infrastructure. Of this amount, restructuring charges totaled $29.6 million, of which $0.5 million was related to inventory and was recorded in cost of goods sold. Restructuring-related charges of $10.8 million were included in cost of goods sold.

During 2020, we recorded restructuring and related charges of $83.3 million which consisted of $73.7 million in Metal Cutting and $8.8 million in Infrastructure. Of this amount, restructuring charges totaled $69.2 million, of which $0.9 million was related to inventory and was recorded in cost of goods sold. Restructuring-related charges of $14.1 million were included in cost of goods sold.

As of June 30, 2022, $6.0 million of the restructuring accrual is recorded in other current liabilities and $1.9 million is recorded in other liabilities in our consolidated balance sheet. As of June 30, 2021, $19.9 million of the restructuring accrual is recorded in other current liabilities and $9.9 million is recorded in other liabilities in our consolidated balance sheet. The amounts are as follows:

(in thousands)	June 30, 2021		Expense, net		Asset Write-Down		Translation		Cash Expenditures		June 30, 2022
Severance	$	29,723	$	(4,628)	$	—	$	(1,772)	$	(15,404)	$	7,919
Facilities	—		3,385		(3,385)		—		—		—
Other	—		—		—		—		—		—
Total	29,723		(1,243)		(3,385)		(1,772)		(15,404)		7,919

(in thousands)	June 30, 2020		Expense		Asset Write-Down		Translation		Cash Expenditures		June 30, 2021
Severance	$	47,303	$	23,917	$	—	$	2,445	$	(43,942)	$	29,723
Facilities	—		5,664		(5,664)		—		—		—
Other	63		—		—		2		(65)		—
Total	47,366		29,581		(5,664)		2,447		(44,007)		29,723

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Financial Instruments

12 Months Ended

Jun. 30, 2022

Financial Instruments, Owned, at Fair Value [Abstract]

Financial Instruments Disclosure [Text Block]

FINANCIAL INSTRUMENTS

The methods used to estimate the fair value of our financial instruments are as follows:

Cash and Cash Equivalents, Revolving and Other Lines of Credit and Notes Payable The carrying amounts approximate their fair value because of the short maturity of the instruments.

Long-Term Debt, Including Current Maturities Fixed rate debt had a fair market value of $536.1 million and $644.2 million at June 30, 2022 and 2021, respectively. The Level 2 fair value is determined based on the quoted market prices for similar debt instruments as of June 30, 2022 and 2021, respectively.

Interest Rate Swap Contracts During 2021, upon issuance of the Senior Unsecured Notes due 2031 (see Note 11 for more information) we settled the forward starting interest rate swap contracts used to hedge a portion of the interest rate risk related to the refinancing. The notional amount of the forward starting interest rate swap contracts at June 30, 2020 was $200.0 million. There were no interest rate swap contracts outstanding at June 30, 2022 or 2021.

Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist primarily of temporary cash investments and trade receivables. By policy, we make temporary cash investments with high credit quality financial institutions and limit the amount of exposure to any one financial institution. With respect to trade receivables, concentrations of credit risk are significantly reduced because we serve numerous customers in many industries and geographic areas.

We are exposed to counterparty credit risk for nonperformance of derivatives and, in the unlikely event of nonperformance, to market risk for changes in interest and currency exchange rates, as well as settlement risk. We manage exposure to counterparty credit risk through credit standards, diversification of counterparties and procedures to monitor concentrations of credit risk. We do not anticipate nonperformance by any of the counterparties. As of June 30, 2022 and 2021, we had no significant concentrations of credit risk.

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Stock-Based Compensation

12 Months Ended

Jun. 30, 2022

Share-based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

Stock Options

Changes in our stock options for 2022 were as follows:

	Options	Weighted Average Exercise Price		Weighted Average Remaining Life (years)	Aggregate Intrinsic value (in thousands)
Options outstanding, June 30, 2021	315,012	$	37.83
Exercised	(6,916)	31.69
Lapsed and forfeited	(36,253)	41.84
Options outstanding, June 30, 2022	271,843	$	37.45	1.9	$	33
Options vested and expected to vest, June 30, 2022	271,843	$	37.45	1.9	$	33
Options exercisable, June 30, 2022	271,843	$	37.45	1.9	$	33

As of June 30, 2022 and June 30, 2021, there was no unrecognized compensation cost related to options outstanding. All options were fully vested as of June 30, 2022 and June 30, 2021.

Tax benefits relating to excess stock-based compensation deductions are presented in the consolidated statements of cash flows as operating cash inflows. Tax benefits resulting from stock-based compensation deductions were less than the amounts reported for financial reporting purposes by $0.2 million in 2022, greater than the amounts reported for financial reporting purposes by $0.7 million in 2021, and an immaterial amount in 2020.

The amount of cash received from the exercise of capital stock options during 2022, 2021 and 2020 was $0.2 million, $6.6 million and $0.9 million, respectively. The related tax benefit was zero in 2022, $0.6 million in 2021, and was immaterial in 2020. The total intrinsic value of options exercised in 2022, 2021 and 2020 was $0.1 million, $2.4 million and $0.3 million, respectively.

Restricted Stock Units – Time Vesting and Performance Vesting

Performance vesting restricted stock units are earned based on both annual and three-year performance targets. The performance and time vesting restricted stock units are subject to a service condition that requires the individual to be employed by the Company at the payment date after a three-year period, with the exception of retirement eligible grantees, who upon retirement are entitled to receive payment for any units that have been earned, including a prorated portion in 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 2022 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, 2021	500,477	$	32.53	1,332,740	$	31.72
Granted	108,234	36.70		532,638	36.51
Vested	(38,620)	39.69		(534,462)	32.14
Performance metric adjustments, net	(150,711)	31.18		—	—
Forfeited	(68,425)	33.43		(117,020)	32.79
Unvested, June 30, 2022	350,955	$	33.44	1,213,896	$	33.53

During 2022, 2021 and 2020, compensation expense related to time vesting and performance vesting restricted stock units was $20.1 million, $23.9 million and $15.3 million, respectively. Certain performance metrics were not met, resulting in an adjustment of 150,711 performance vesting stock units during 2022. As of June 30, 2022, the total unrecognized compensation cost related to unvested time vesting and performance vesting restricted stock units was $23.3 million and is expected to be recognized over a weighted average period of 1.7 years.

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Environmental Matters

12 Months Ended

Jun. 30, 2022

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 sites associated with our current or former operations.

We establish and maintain accruals for certain potential environmental liabilities. At June 30, 2022 and 2021, the balances of these liabilities were $12.5 million, of which $7.9 million was current, and $14.7 million, of which $2.6 million was current, respectively. These accruals represent anticipated costs associated with the remediation of these issues and are generally not discounted.

The accruals we have established for environmental liabilities represent our best current estimate of the probable and reasonably estimable costs of addressing 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 United States Environmental Protection Agency (USEPA), other governmental agencies and by the Potentially Responsible Party (PRP) groups in which we are participating. Although the accruals currently appear to be sufficient to cover these environmental obligations, 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 recorded and unrecorded 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.

Among other environmental laws, we are subject to the Comprehensive Environmental Response Compensation and Liability Act of 1980, under which we have been identified by the USEPA or other third party as a PRP with respect to environmental remedial costs at certain sites. We have evaluated our claims and potential liability associated with these sites based upon the best information currently available to us. We believe our environmental accruals will be adequate to cover our portion of the environmental remedial costs at those sites where we have been designated a PRP, to the extent these expenses are probable and reasonably estimable.

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Commitments and Contingencies

12 Months Ended

Jun. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

COMMITMENTS AND CONTINGENCIES

Legal Matters Various lawsuits arising during the normal course of business are pending against us. In our opinion, the ultimate liability, if any, resulting from these matters will have no significant effect on our consolidated financial position or results of operations.

Lease Commitments We lease a wide variety of facilities and equipment under operating leases, primarily for warehouses, production and office facilities and equipment. Refer to Note 9 for more information.

Purchase Commitments We have purchase commitments for materials, supplies and machinery and equipment as part of the ordinary conduct of business. Some of these commitments extend beyond one year and are based on minimum purchase requirements. We believe these commitments are not at prices in excess of current market.

Other Contractual Obligations We do not have material financial guarantees or other contractual commitments that are reasonably likely to adversely affect our liquidity.

Related Party Transactions Sales to affiliated companies were immaterial in 2022, 2021 and 2020. We do not have any other related party transactions that affect our operations, results of operations, cash flow or financial condition

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Segment Data

12 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

SEGMENT DATA

SEGMENT DATAThe Company manages and reports its business in the following two segments: Metal Cutting 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. Our reportable operating segments do not represent the aggregation of two or more operating segments.

Sales to a single customer did not aggregate to five percent or more of total sales in 2022, 2021 and 2020.

METAL CUTTING The Metal Cutting segment develops and manufactures high performance tooling and metal cutting products and services and offers an assortment of standard and custom metal cutting solutions to diverse end markets, including aerospace, general engineering, energy and transportation. The products include milling, hole making, turning, threading and toolmaking systems used in the manufacture of airframes, aero engines, trucks and automobiles, ships and various types of industrial equipment. We leverage advanced manufacturing capabilities in combination with varying levels of customization to solve our customers’ toughest challenges and deliver improved productivity for a wide range of applications. Metal Cutting markets its products under the Kennametal®, WIDIA®, WIDIA Hanita® and WIDIA GTD® brands through its direct sales force, a network of independent and national 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.

INFRASTRUCTURE Our Infrastructure segment produces engineered tungsten carbide and ceramic components, earth-cutting tools, and advanced metallurgical powders, primarily for the energy, earthworks and general engineering end markets. These wear-resistant products include compacts, nozzles, frac seats and custom components used in oil and gas and petrochemical industries; rod blanks and abrasive water jet nozzles for general industries; earth cutting tools and systems used in underground mining, trenching and foundation drilling and road milling; tungsten carbide powders for the oil and gas, aerospace and process industries; and ceramics used by the packaging industry for metallization of films and papers. We combine deep metallurgical and engineering expertise with advanced manufacturing capabilities, such as 3D printing, to deliver solutions that drive improved productivity for our customers. Infrastructure markets its products primarily under the Kennametal® brand and sells through a direct sales force as well as through distributors.

Segment data is summarized as follows: 

(in thousands)	2022		2021		2020
Sales:
Metal Cutting	$	1,227,273	$	1,150,746	$	1,178,053
Infrastructure	785,183		690,695		707,252
Total sales	$	2,012,456	$	1,841,441	$	1,885,305
Operating income:
Metal Cutting	$	121,386	$	45,855	$	985
Infrastructure	98,871		59,461		23,113
Corporate	(2,117)		(3,148)		(1,846)
Total operating income	$	218,140	$	102,168	$	22,252
Interest expense	$	25,914	$	46,375	$	35,154
Other income, net	(14,507)		(8,867)		(14,862)
Income before income taxes	$	206,733	$	64,660	$	1,960
Depreciation and amortization:
Metal Cutting	$	87,986	$	81,796	$	74,664
Infrastructure	43,691		44,661		45,176
Corporate	1		31		20
Total depreciation and amortization	$	131,678	$	126,488	$	119,860
Segment assets(4):
Metal Cutting	$	1,469,835	$	1,532,177	$	1,452,131
Infrastructure	768,226		698,766		748,424
Corporate	335,463		434,818		837,036
Total assets	$	2,573,524	$	2,665,761	$	3,037,591
Capital expenditures:
Metal Cutting	$	64,055	$	103,812	$	195,167
Infrastructure	32,869		23,490		48,984
Total capital expenditures	$	96,924	$	127,302	$	244,151

(4) Metal Cutting and Infrastructure segment assets are principally accounts receivable, less allowance for doubtful accounts; inventories; property, plant and equipment, net; goodwill; other intangible assets, net of accumulated amortization; and operating lease ROU assets. Corporate assets are principally cash and cash equivalents, other current assets, long-term prepaid pension benefit, deferred income taxes and other assets.

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

(in thousands)	2022		2021		2020
Sales:
United States	$	797,768	$	692,106	$	778,054
Germany	262,764		260,792		248,796
China	234,997		242,815		214,364
Canada	94,956		79,891		90,247
India	108,695		94,966		81,366
Italy	67,930		59,955		52,699
France	47,218		45,356		45,817
United Kingdom	30,686		28,464		33,305
Other(5)	367,442		337,096		340,657
Total sales	$	2,012,456	$	1,841,441	$	1,885,305
Total long-lived assets:
United States	$	585,003	$	611,724	$	607,222
Germany	195,325		218,250		210,674
China	92,315		97,404		92,658
India	45,146		19,144		20,508
Israel	26,864		44,504		44,673
Canada	18,478		21,790		22,249
Other (5)	38,910		42,319		40,287
Total long-lived assets(6)	$	1,002,041	$	1,055,135	$	1,038,271

(5) Other does not contain any country that individually exceeds 2 percent of total sales or total long-lived assets, respectively.

(6) Total long-lived assets as of June 30, 2022, 2021 and 2020 include property, plant, and equipment, net.

The following table presents Kennametal's revenue disaggregated by segment by geography:

	Metal Cutting						Infrastructure						Total Kennametal
	2022		2021		2020		2022		2021		2020		2022		2021		2020
Americas	41	%	38	%	42	%	59	%	57	%	62	%	48	%	45	%	49	%
EMEA	37		39		37		18		19		18		30		31		30
Asia Pacific	22		23		21		23		24		20		22		24		21

The following table presents Kennametal's revenue disaggregated by segment by end market:

	Metal Cutting						Infrastructure						Total Kennametal
	2022		2021		2020		2022		2021		2020		2022		2021		2020
General Engineering	56	%	54	%	53	%	34	%	35	%	34	%	47	%	47	%	46	%
Transportation	27		30		27		—		—		—		17		19		17
Aerospace	9		8		12		—		—		—		6		5		7
Energy	8		8		8		29		26		28		16		15		16
Earthworks	—		—		—		37		39		38		14		14		14

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Schedule II Valuation and Qualifying Accounts and Reserves

12 Months Ended

Jun. 30, 2022

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Schedule of Valuation and Qualifying Accounts Disclosure

SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS

(In thousands) For the year ended June 30	Balance at Beginning of Year		Charges to Costs and Expenses		Recoveries		Other Adjustments			Deductions from Reserves			Balance at End of  Year
2022
Allowance for doubtful accounts	$	9,734	$	1,242	$	163	$	(321)	(1)	$	(1,396)	(2)	$	9,422
Deferred tax asset valuation allowance	21,263		371		(4,459)		42		(1)	(2,832)		(3)	14,385
2021
Allowance for doubtful accounts	$	9,430	$	2,602	$	635	$	400	(1)	$	(3,333)	(2)	$	9,734
Deferred tax asset valuation allowance	16,654		4,115		—		494		(1)	—			21,263
2020
Allowance for doubtful accounts	$	10,083	$	2,300	$	40	$	(287)	(1)	$	(2,706)	(2)	$	9,430
Deferred tax asset valuation allowance	14,614		4,213		—		(1,216)		(1)	(957)		(3)	16,654

(1)Represents foreign currency translation adjustment.

(2)Represents uncollected accounts charged against the allowance.

(3)Represents primarily a forfeited net operating loss deduction

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Principles of Consolidation

PRINCIPLES OF CONSOLIDATION The consolidated financial statements include our accounts and those of our subsidiaries in which we have a controlling interest. All intercompany balances and transactions are eliminated.

Use of Estimates in the Preparation of Financial Statements

USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS In preparing our consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP), we make judgments and estimates about the amounts reflected in our consolidated financial statements. As part of our financial reporting process, our management collaborates to determine the necessary information on which to base our judgments and develop estimates used to prepare the consolidated financial statements. We use historical experience and available information to make these judgments and estimates. Actual amounts could differ from the estimates reflected in our consolidated financial statements.

Cash and Cash Equivalents

CASH AND CASH EQUIVALENTS Cash investments having original maturities of three months or less are considered cash equivalents. Cash equivalents principally consist of investments in money market funds and bank deposits at June 30, 2022.

Accounts Receivable

ACCOUNTS RECEIVABLE We market our products to a diverse customer base throughout the world. Trade credit is extended based upon periodically updated evaluations of each customer’s ability to satisfy its obligations. We record allowances for estimated losses resulting from the inability of our customers to make required payments. We assess the creditworthiness of our customers based on multiple sources of information and analyze additional factors such as our historical bad debt experience, industry concentrations of credit risk, current economic trends, changes in customer payment terms and forward-looking information.

Inventory

INVENTORIES We use the last-in, first-out (LIFO) method for determining the cost of a significant portion of our United States (U.S.) inventories, and they are stated at the lower of cost or market. The cost of the remainder of our inventories is measured using approximate costs determined on the first-in, first-out basis or using the average cost method, and are stated at the lower of cost or net realizable value. When market conditions indicate an excess of carrying costs over market value, a lower of cost or net realizable value provision or a lower of cost or market provision, as applicable, is recorded. Once inventory is determined to be excess or obsolete, a new cost basis is established that is not subsequently written back up in future periods.

Property, Plant and Equipment

PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are carried at cost. Major improvements are capitalized, while maintenance and repairs are expensed as incurred. Retirements and disposals are removed from cost and accumulated depreciation accounts, with the gain or loss reflected in operating income. Interest related to the construction of major facilities is capitalized as part of the construction costs and is depreciated over the facilities' estimated useful lives.

Depreciation for financial reporting purposes is computed using the straight-line method over the following estimated useful lives: building and improvements over 15-40 years; machinery and equipment over 4-15 years; furniture and fixtures over 5-10 years and computer hardware and software over 3-5 years.

Long Lived Assets

LONG-LIVED ASSETS We evaluate the recoverability of property, plant and equipment, operating lease right-of-use (ROU) assets and intangible assets that are amortized, whenever events or changes in circumstances indicate the carrying amount of any such assets may not be fully recoverable. Changes in circumstances include technological advances, changes in our business model, capital structure, economic conditions or operating performance. Our evaluation is performed at the asset group level, based upon, among other things, our assumptions about the estimated future undiscounted cash flows these assets are expected to generate. When the sum of the undiscounted cash flows is less than the carrying value, we will recognize an impairment loss to the extent that carrying value exceeds fair value. We apply our best judgment when performing these evaluations to determine if a triggering event has occurred, the undiscounted cash flows used to assess recoverability and the fair value of the asset group.

Goodwill and Other Intangible Assets

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 quarter. As of June 30, 2022, only the Metal Cutting reporting unit has goodwill recorded. We evaluate the recoverability of goodwill for the reporting unit by comparing the fair value of the reporting unit with its carrying value. The fair value of our reporting unit is 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 the 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.

The majority of our intangible assets with definite lives are amortized on a straight-line basis, while certain customer-related intangible assets are amortized on an accelerated method. Identifiable assets with finite lives are reviewed for impairment when events or circumstances indicate that the carrying value may not be recoverable.

Pension and Other Postretirement Benefits

PENSION AND OTHER POSTRETIREMENT BENEFITS We sponsor these types of benefit plans for certain employees and retirees. Accounting for the cost of these plans requires the estimation of the cost of the benefits to be provided well into the future and attributing that cost over either the expected work life of employees or over the average life of participants participating in these plans, depending on plan status and on participant population. This estimation requires our judgment about the discount rate used to determine these obligations, expected return on plan assets, rate of future compensation increases, rate of future health care costs, withdrawal and mortality rates and participant retirement age. Differences between our estimates and actual results may significantly affect the cost of our obligations under these plans.

In the valuation of our pension and other postretirement benefit liabilities, management utilizes various assumptions. Discount rates are derived by identifying a theoretical settlement portfolio of high quality corporate bonds sufficient to provide for a plan’s projected benefit payments. This rate can fluctuate based on changes in the corporate bond yields.

The long-term rate of return on plan assets is estimated based on an evaluation of historical returns for each asset category held by the plans, coupled with the current and short-term mix of the investment portfolio. The historical returns are adjusted for expected future market and economic changes. This return will fluctuate based on actual market returns and other economic factors.

The rate of future health care costs is based on historical claims and enrollment information projected over the next year and adjusted for administrative charges. This rate is expected to decrease until 2027.

Future compensation rates, withdrawal rates and participant retirement age are determined based on historical information. These assumptions are not expected to significantly change. Mortality rates are determined based on a review of published mortality tables.

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.

The following tables provide the computation of diluted shares outstanding:

(in thousands)	2022	2021
Weighted-average shares outstanding during period	83,252	83,602
Add: Unexercised stock options and unvested restricted stock units	692	731
Number of shares on which diluted earnings per share is calculated	83,944	84,333
Unexercised stock options with an exercise price greater than the average market price and restricted stock units not included in the computation because they were anti-dilutive	260	295

In 2020, 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.

Revenue Recognition

REVENUE RECOGNITION The Company's contracts with customers are comprised of purchase orders, and for larger customers, may also include long-term agreements. We account for a contract when it has approval and commitment from both parties, the rights of the parties and payment terms are identified, the contract has commercial substance and collectability of consideration is probable. These contracts with customers typically relate to the manufacturing of products, which represent single performance obligations that are satisfied when control of the product passes to the customer. The Company considers the timing of right to payment, transfer of risk and rewards, transfer of title, transfer of physical possession and customer acceptance when determining when control transfers to the customer. As a result, revenue is generally recognized at a point in time - either upon shipment or delivery - based on the specific shipping terms in the contract. The shipping terms vary across all businesses and depend on the product, customary local commercial terms and the type of transportation. Shipping and handling activities are accounted for as activities to fulfill a promise to transfer a product to a customer and as such, costs incurred are recorded when the related revenue is recognized. Payment for products is due within a limited time period after shipment or delivery, typically within 30 to 90 calendar days of the respective invoice dates. The Company does not generally offer extended payment terms.

Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods. Amounts billed and due from our customers are classified as accounts receivable, less allowance for doubtful accounts on the consolidated balance sheets. Certain contracts with customers, primarily distributor customers, have an element of variable consideration that is estimated when revenue is recognized under the contract. Variable consideration primarily includes volume incentive rebates, which are based on achieving a certain level of purchases and other performance criteria as established by our distributor programs. These rebates are estimated based on projected sales to the customer and accrued as a reduction of net sales as they are earned. The majority of our products are consumed by our customers or end users in the manufacture of their products. Historically, we have experienced very low levels of returned products and do not consider the effect of returned products to be material. We have recorded an estimated returned goods allowance to provide for any potential returns.

We warrant that products sold are free from defects in material and workmanship under normal use and service when correctly installed, used and maintained. This warranty terminates 30 days after delivery of the product to the customer and does not apply to products that have been subjected to misuse, abuse, neglect or improper storage, handling or maintenance. Products may be returned to Kennametal only after inspection and approval by Kennametal and upon receipt by the customer of shipping instructions from Kennametal. We have included an estimated allowance for warranty returns in our returned goods allowance discussed above.

The Company records a contract asset when it has a right to payment from a customer that is conditioned on events that have occurred other than the passage of time. The Company also records a contract liability when customers prepay but the Company has not yet satisfied its performance obligation. The Company did not have any material remaining performance obligations, contract assets or liabilities as of June 30, 2022 and 2021.

The Company pays sales commissions related to certain contracts, which qualify as incremental costs of obtaining a contract. However, the Company applies the practical expedient that allows an entity to recognize incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that would have been recognized is one year or less. These costs are recorded within operating expense in our consolidated statements of income.

SHIPPING AND HANDLING FEES AND COSTS All fees billed to customers for shipping and handling are classified as a component of sales. All costs associated with shipping and handling are classified as a component of cost of goods sold.

Stock-Based Compensation

STOCK-BASED COMPENSATION We recognize stock-based compensation expense for all stock options, restricted stock awards and restricted stock units over the period from the date of grant to the date when the award is no longer contingent on the employee providing additional service (substantive vesting period). Forfeitures are recorded as incurred. We utilize the Black-Scholes valuation method to establish the fair value of all stock option awards. 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.

Capital stock options are granted to eligible employees at fair market value at the date of grant. Capital stock options are exercisable under specified conditions for up to 10 years from the date of grant. The Kennametal Inc. Stock and Incentive Plan of 2010, as Amended and Restated on October 22, 2013, and further amended on January 27, 2015 (A/R 2010 Plan), by the Kennametal Inc. 2016 Stock and Incentive Plan, and on October 27, 2020 by the Kennametal Inc. 2020 Stock and Incentive Plan (2020 Plan) authorize the issuance of up to 9,500,000 shares of the Company’s capital stock plus any shares remaining unissued under the Kennametal Inc. Stock and Incentive Plan of 2002, as amended (2002 Plan). Under the provisions of the A/R 2010 Plan and 2020 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 2022, 2021 and 2020 was immaterial. In addition to stock option grants, the A/R 2010 Plan and the 2020 Plan permit the award of stock appreciation rights, performance share awards, performance unit awards, restricted stock awards, restricted unit awards and share awards to directors, officers and key employees.

Research and Development Costs

RESEARCH AND DEVELOPMENT COSTS Research and development costs of $42.1 million, $39.5 million and $38.7 million in 2022, 2021 and 2020, respectively, were expensed as incurred. These costs are included in operating expense in the consolidated statements of income.

Income Taxes

INCOME TAXES The Company’s provision for income taxes is calculated based on income and statutory tax rates in the various jurisdictions in which the Company operates and requires the use of management’s estimates and judgments. Management judgment is required in determining the Company’s worldwide provision for income taxes and recording the related assets and liabilities, including accruals for unrecognized tax benefits and assessing the need for valuation allowances on deferred tax assets. Deferred income taxes are recognized based on the future income tax effects (using enacted tax laws and rates) of differences in the carrying amounts of assets and liabilities for financial reporting and tax purposes. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not (greater than 50 percent) that a tax benefit will not be realized. In evaluating the need for a valuation allowance, we consider all potential sources of taxable income, including income available in carryback periods, future reversals of taxable temporary differences, projections of taxable income, and income from tax planning strategies, as well as all available positive and negative evidence. Positive evidence includes factors such as a history of profitable operations, and projections of future profitability within the carry forward period, including taxable income from tax planning strategies. Negative evidence includes items such as cumulative losses, projections of future losses, or carryforward periods that are not long enough to allow for the utilization of the deferred tax asset based on existing projections of income. Upon changes in facts and circumstances, we may conclude that deferred tax assets for which no valuation allowance is currently recorded may not be realized, resulting in a charge to establish a valuation allowance. Existing valuation allowances are re-examined under the same standards of positive and negative evidence. If it is determined that it is more likely than not that a deferred tax asset will be realized, the appropriate amount of the valuation allowance, if any, is released.

Derivative Instruments and Hedging Activities

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 use derivative financial instruments to provide predictability to the effects of changes in foreign exchange rates on our consolidated results. Our objective in managing foreign exchange exposures with derivative instruments is to reduce volatility in cash flow, allowing us to focus more of our attention on business operations. With respect to interest rate management, we use forward-starting interest rate swaps to effectively hedge the variability in future benchmark interest payments attributable to changes in interest rates on forecasted issuances of fixed-rate debt.We account for derivative instruments as a hedge of the related asset, liability, firm commitment or anticipated transaction, when the derivative is specifically designated as a hedge of such items. We measure hedge effectiveness by assessing the changes in the fair value or expected future cash flows of the hedged item. Certain currency forward contracts hedging significant cross-border intercompany loans are considered other derivatives and, therefore, do not qualify for hedge accounting.

Net Investment Hedges [Policy Text Block]

NET INVESTMENT HEDGES We designate financial instruments as net investment hedges from time to time to hedge the foreign exchange exposure of our net investment in foreign currency-based subsidiaries. The remeasurements of these non-derivatives designated as net investment hedges are calculated each period with changes reported in foreign currency translation adjustment within accumulated other comprehensive loss. Such amounts will remain in accumulated other comprehensive loss unless we complete or substantially complete liquidation or disposal of our investment in the underlying foreign operations.

Currency Translation

CURRENCY TRANSLATION Assets and liabilities of international operations are translated into U.S. dollars using year-end exchange rates, while revenues and expenses are translated at average exchange rates throughout the year. The resulting net translation adjustments are recorded as a component of accumulated other comprehensive loss. The local currency is the functional currency of most of our locations.

Losses of $2.5 million, $3.3 million and $3.4 million from currency transactions were included in other income, net in 2022, 2021 and 2020, respectively.

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Summary Of Significant Accounting Policies Earnings Per Share (Tables)

12 Months Ended

Jun. 30, 2022

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

The following tables provide the computation of diluted shares outstanding:

(in thousands)	2022	2021
Weighted-average shares outstanding during period	83,252	83,602
Add: Unexercised stock options and unvested restricted stock units	692	731
Number of shares on which diluted earnings per share is calculated	83,944	84,333
Unexercised stock options with an exercise price greater than the average market price and restricted stock units not included in the computation because they were anti-dilutive	260	295

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Fair Value Measurements (Tables)

12 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Financial instruments at fair value on recurring basis

As of June 30, 2022, the fair values of the Company’s financial assets and financial liabilities measured at fair value on a recurring basis are categorized as follows: 

(in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Derivatives (1)	$	—	$	176	$	—	$	176
Total assets at fair value	$	—	$	176	$	—	$	176
Liabilities:
Derivatives (1)	$	—	$	574	$	—	$	574
Total liabilities at fair value	$	—	$	574	$	—	$	574

As of June 30, 2021, the fair value of the Company’s financial assets and financial liabilities measured at fair value on a recurring basis are categorized as follows:

(in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Derivatives (1)	$	—	$	36	$	—	$	36
Total assets at fair value	$	—	$	36	$	—	$	36
Liabilities:
Derivatives (1)	$	—	$	87	$	—	$	87
Total liabilities at fair value	$	—	$	87	$	—	$	87

 

 (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.

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Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Jun. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair value of derivatives designated and not designated as hedging instruments

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

(in thousands)	2022		2021
Derivatives not designated as hedging instruments
Other current assets - currency forward contracts	$	176	$	36
Other current liabilities - currency forward contracts	(574)		(87)
Total derivatives not designated as hedging instruments	(398)		(51)
Total derivatives	$	(398)	$	(51)

Losses (gains) related to derivatives not designated as hedging instruments

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

(in thousands)	2022		2021		2020
Other income, net - currency forward contracts	$	377	$	2	$	210

Schedule of Net Investment Hedges, Statements of Financial Performance and Financial Position, Location

As of June 30, 2022 and 2021, the foreign currency-denominated intercompany loans payable designated as net investment hedges consisted of:

(in thousands)	2022		2021
Instrument	Notional (EUR)(2)	Notional (USD)(2)	Notional (EUR)(2)	Notional (USD)(2)	Maturity
Foreign currency-denominated intercompany loan payable	€0	$0	€5,173	$6,146	June 26, 2022
Foreign currency-denominated intercompany loan payable	€13,013	$13,531	€0	$0	August 31, 2022

(2) Includes principal and accrued interest.

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Inventories (Tables)

12 Months Ended

Jun. 30, 2022

Inventory Disclosure [Abstract]

Inventories

Inventories consisted of the following at June 30: 

(in thousands)	2022		2021
Finished goods	$	316,936	$	302,524
Work in process and powder blends	231,214		173,671
Raw materials	107,024		72,551
Inventories at current cost	655,174		548,746
Less: LIFO valuation	(84,338)		(72,401)
Total inventories	$	570,836	$	476,345

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Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill [Table Text Block]

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

(in thousands)	Metal Cutting		Infrastructure		Total
Gross goodwill	$	448,241	$	633,211	$	1,081,452
Accumulated impairment losses	(177,661)		(633,211)		(810,872)
Balance as of June 30, 2020	$	270,580	$	—	$	270,580
Activity for the year ended June 30, 2021:
Change in gross goodwill due to translation	7,035		—		7,035
Gross goodwill	455,276		633,211		1,088,487
Accumulated impairment losses	(177,661)		(633,211)		(810,872)
Balance as of June 30, 2021	$	277,615	$	—	$	277,615
Activity for the year ended June 30, 2022:
Change in gross goodwill due to translation	(13,385)		—		(13,385)
Gross goodwill	441,891		633,211		1,075,102
Accumulated impairment losses	(177,661)		(633,211)		(810,872)
Balance as of June 30, 2022	$	264,230	$	—	$	264,230

Components of Other Intangible Assets [Table Text Block]

The components of our other intangible assets were as follows: 

	Estimated Useful Life (in years)	June 30, 2022				June 30, 2021
(in thousands)		Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Technology-based and other	4 to 20	$	31,592	$	(22,734)	$	33,632	$	(24,413)
Customer-related	10 to 21	180,263		(104,698)		183,338		(98,901)
Unpatented technology	10 to 30	31,807		(22,950)		31,957		(20,575)
Trademarks	5 to 20	12,403		(10,317)		13,268		(10,083)
Trademarks	Indefinite	10,359		—		11,818		—
Total		$	266,424	$	(160,699)	$	274,013	$	(153,972)

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Leases, Codification Topic 840 (Tables)

12 Months Ended

Jun. 30, 2022

Leases [Abstract]

Lessee, Operating Lease, Liability, Maturity

The following table sets forth the maturities of our operating lease liabilities and reconciles the respective undiscounted payments to the operating lease liabilities in the consolidated balance sheet as of June 30, 2022:

Year Ended June 30	(in thousands)
2023	$	13,383
2024	10,195
2025	7,374
2026	4,672
2027	3,110
Thereafter	16,029
Total undiscounted operating lease payments	$	54,763
Less: discount to net present value	7,034
Total operating lease liabilities	$	47,729

Operating leases, supplemental cash flow information

The following table sets forth supplemental cash flow information related to our operating leases:

Year Ended June 30 (in thousands)	2022		2021		2020
Operating cash outflows from operating leases	$	17,592	$	17,651	$	15,635
ROU assets obtained in exchange for new operating lease liabilities	$	15,430	$	17,235	$	16,171

Operating leases, supplemental balance sheet information

The following table sets forth supplemental balance sheet information related to our operating leases:

Year Ended June 30	2022		2021		2020
Weighted average remaining lease term	8.1 years		8.0 years		8.6 years
Weighted average discount rate	3.2	%	3.3	%	3.3	%

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Other Current Liabilities (Tables)

12 Months Ended

Jun. 30, 2022

Other Liabilities, Current [Abstract]

Other Current Liabilities [Text Block]

Other current liabilities consisted of the following at June 30:

(in thousands)	2022		2021
Accrued employee benefits	$	35,270	$	51,783
Payroll, state and local taxes	9,989		6,873
Accrued professional and legal fees	9,489		8,428
Accrued environmental	7,938		2,561
Accrued restructuring (Note 16)	6,019		19,851
Accrued interest	3,394		3,520
Other	66,304		64,586
Total other current liabilities	$	138,403	$	157,602

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Long-Term Debt (Tables)

12 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Schedule of Debt [Table Text Block]

Long-term debt consisted of the following at June 30:

(in thousands)	2022		2021
2.800% Senior Unsecured Notes due fiscal 2031, net of discount of $0.2 million for 2022 and $0.2 million for 2021	$	299,842	$	299,823
4.625% Senior Unsecured Notes due fiscal 2028, net of discount of $1.3 million for 2022 and $1.5 million for 2021	298,702		298,483
Total term debt	598,544		598,306
Less unamortized debt issuance costs	(4,180)		(6,198)
Total long-term debt	$	594,364	$	592,108

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Income Taxes (Tables)

12 Months Ended

Jun. 30, 2022

Jun. 30, 2021

Income Tax Disclosure [Abstract]

Income Before Income Taxes

Income (loss) before income taxes consisted of the following for the years ended June 30: 

(in thousands)	2022			2021			2020
Income (loss) before income taxes:
United States	$	10,109		$	(60,775)		$	(76,107)
International	196,624			125,435			78,067
Total income before income taxes	$	206,733		$	64,660		$	1,960
Current income taxes:
Federal	$	1,115		$	39		$	(3,558)
State	106			133			905
International	44,019			30,726			33,559
Total current income taxes	45,240			30,898			30,906
Deferred income taxes:
Federal	$	10,841		$	(23,170)		$	(9,113)
State	(676)			(2,948)			724
International	1,127			1,463			(15,510)
Total deferred income taxes:	11,292			(24,655)			(23,899)
Provision for income taxes	$	56,532		$	6,243		$	7,007
Effective tax rate	27.3		%	9.7		%	357.5		%

Reconciliation of Income Taxes and the Provision for Income Taxes

The reconciliation of income taxes computed using the statutory U.S. income tax rate and the provision for income taxes was as follows for the years ended June 30:

(in thousands)	2022		2021		2020
Income taxes at U.S. statutory rate	$	43,414	$	13,579	$	412
State income taxes, net of federal tax benefit	(450)		(1,725)		1,283
U.S. income taxes provided on international income	12,815		(6,479)		12,422
Combined tax effects of international income	2,747		5,860		10,583
Impact of goodwill impairment charges	—		—		5,651
Change in valuation allowance and other uncertain tax positions	(614)		1,127		755
U.S. research and development credit	(2,814)		(3,055)		(4,093)
Change in permanent reinvestment assertion	775		—		—
Combined effects of Swiss tax reform	—		—		(14,500)
Combined effects of the U.S. CARES Act	—		—		(6,913)
Recognition of stranded deferred tax balance	—		(3,465)		—
Other	659		401		1,407
Provision for income taxes	$	56,532	$	6,243	$	7,007

Components of Net Deferred Tax Liabilities and Assets

The components of net deferred tax assets and liabilities were as follows at June 30:

(in thousands)	2022		2021
Deferred tax assets:
Net operating loss (NOL) carryforwards	$	25,868	$	44,258
Inventory valuation and reserves	11,747		11,068
Pension benefits	—		7,136
Other postretirement benefits	3,050		3,486
Accrued employee benefits	11,775		11,168
Operating lease liabilities	11,995		12,652
Other accrued liabilities	12,992		15,596
Tax credits and other carryforwards	34,930		32,490
Intangible assets	4,246		7,784
Total	116,603		145,638
Valuation allowance	14,385		21,263
Total deferred tax assets	$	102,218	$	124,375
Deferred tax liabilities:
Tax depreciation in excess of book	$	57,109	$	63,020
Operating lease right-of-use assets	11,852		12,502
Unremitted earnings not permanently reinvested	7,242		6,429
Pension benefits	1,061		—
Other	2,537		7,392
Total deferred tax liabilities	$	79,801	$	89,343
Total net deferred tax assets (liabilities)	$	22,417	$	35,032

Reconciliation of Unrecognized Tax Benefits Excluding Interest

A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest and penalty) is as follows as of June 30:

(in thousands)	2022		2021		2020
Balance at beginning of year	$	8,656	$	8,680	$	8,952
Increases for tax positions of prior years	105		—		—
Decreases related to lapse of statute of limitations	(779)		(229)		(214)
Foreign currency translation	(384)		205		(58)
Balance at end of year	$	7,598	$	8,656	$	8,680

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Pension and Other Postretirement Benefits (Tables)

12 Months Ended

Jun. 30, 2022

Retirement Benefits [Abstract]

Funded Status of Pension Plans and Amount recognized in the Consolidated Balance Sheet

The funded status of our pension plans and amounts recognized in the consolidated balance sheets as of June 30 were as follows:

(in thousands)	2022		2021
Change in benefit obligation:
Benefit obligation, beginning of year	$	968,725	$	1,004,005
Service cost	1,117		1,685
Interest cost	22,532		23,188
Participant contributions	479		548
Actuarial gains	(170,055)		(16,794)
Benefits and expenses paid	(53,149)		(52,719)
Currency translation adjustments	(27,074)		23,276
Plan amendments	(66)		(129)
Plan settlements	(1,805)		(13,966)
Plan curtailments	(3)		(10)
Other adjustments	308		(359)
Benefit obligation, end of year	$	741,009	$	968,725
Change in plans' assets:
Fair value of plans' assets, beginning of year	$	890,104	$	876,036
Actual return on plans' assets	(133,374)		54,026
Company contributions	8,170		9,998
Participant contributions	479		548
Plan settlements	(1,805)		(13,966)
Benefits and expenses paid	(53,149)		(52,719)
Currency translation adjustments	(14,455)		16,032
Other adjustments	(5)		149
Fair value of plans' assets, end of year	$	695,965	$	890,104
Funded status of plans	$	(45,044)	$	(78,621)
Amounts recognized in the balance sheets consist of:
Long-term prepaid benefit	$	66,433	$	89,233
Short-term accrued benefit obligation	(6,406)		(6,918)
Accrued pension benefits	(105,071)		(160,936)
Net amount recognized	$	(45,044)	$	(78,621)

Defined Benefit Pension Plans Recognized in Accumulated Other Comprehensive (Loss) Income

The pre-tax amounts related to our defined benefit pension plans recognized in accumulated other comprehensive loss were as follows at June 30:

(in thousands)	2022		2021
Unrecognized net actuarial losses	$	274,416	$	279,628
Unrecognized net prior service costs	1,822		2,001
Unrecognized transition obligations	158		277
Total	$	276,396	$	281,906

The pre-tax amounts related to our other postretirement benefit plans which were recognized in accumulated other comprehensive loss were as follows at June 30:

(in thousands)	2022		2021
Unrecognized net actuarial losses	$	2,657	$	4,355
Unrecognized net prior service credits	(1,649)		(1,924)
Total	$	1,008	$	2,431

Accumulated Benefit Obligations Exceeding Plan Assets Fair Value

Included in the above information are plans with accumulated benefit obligations exceeding the fair value of plan assets as of June 30 as follows:

(in thousands)	2022		2021
Projected benefit obligation	$	118,199	$	174,973
Accumulated benefit obligation	117,614		173,684
Fair value of plan assets	6,718		7,116

Net Periodic Pension (Income) Cost

The components of net periodic pension income include the following as of June 30:

(in thousands)	2022		2021		2020
Service cost	$	1,117	$	1,685	$	1,796
Interest cost	22,532		23,188		27,320
Expected return on plans' assets	(51,928)		(53,653)		(53,943)
Amortization of transition obligation	94		94		88
Amortization of prior service cost	13		34		50
Curtailment	(2)		(7)		(115)
Settlement	205		3,190		(51)
Recognition of actuarial losses	11,702		13,606		10,359
Other adjustments	277		(473)		288
Net periodic pension income	$	(15,990)	$	(12,336)	$	(14,208)

Funded Status of Other Postretirement Benefit Plans and Amount Recognized in the Consolidated Balance Sheet

The funded status of our other postretirement benefit plans and the related amounts recognized in the consolidated balance sheets were as follows:

(in thousands)	2022		2021
Change in benefit obligation:
Benefit obligation, beginning of year	$	11,383	$	12,365
Interest cost	288		307
Actuarial losses	(1,402)		60
Benefits paid	(1,224)		(1,281)
Other	68		(68)
Benefit obligation, end of year	$	9,113	$	11,383
Funded status of plan	$	(9,113)	$	(11,383)
Amounts recognized in the balance sheets consist of:
Short-term accrued benefit obligation	$	(1,189)	$	(1,252)
Accrued postretirement benefits	(7,924)		(10,131)
Net amount recognized	$	(9,113)	$	(11,383)

Net Periodic Other Postretirement Costs (Benefit)

The components of net periodic other postretirement benefit cost include the following for the years ended June 30:

(in thousands)	2022		2021		2020
Interest cost	$	288	$	307	$	404
Amortization of prior service credit	(276)		(276)		(276)
Recognition of actuarial loss	297		307		257
Net periodic other postretirement benefit cost	$	309	$	338	$	385

Significant Actuarial Assumptions Used to Determine the Present Value of Net Benefit Obligations

The significant actuarial assumptions used to determine the present value of net benefit obligations for our defined benefit pension plans and other postretirement benefit plans were as follows:

	2022		2021		2020
Discount Rate:
U.S. plans	4.3-5.0%		1.2-3.0%		1.6-2.9%
International plans	2.0-5.0%		0.3-3.2%		0.2-2.4%
Rates of future salary increases:
U.S. plans (Executive Retirement Plan only)	4.0	%	4.0	%	4.0	%
International plans	1.5	%	1.5	%	1.5	%

The significant assumptions used to determine the net periodic income for our pension and other postretirement benefit plans were as follows:

	2022		2021		2020
Discount Rate:
U.S. plans	1.2-3.0%		1.6-2.9%		2.7-3.6%
International plans	0.3-3.2%		0.2-2.4%		0.4-2.9%
Rates of future salary increases:
U.S. plans (Executive Retirement Plan only)	4.0	%	4.0	%	4.0	%
International plans	1.5	%	1.5	%	1.8-3.0%
Rate of return on plans assets:
U.S. plans	6.5	%	6.8	%	7.0	%
International plans	0.3-5.0%		0.2-5.3%		0.4-5.3%

Annual Assumed Rate of Increase in Per Capita Cost of Covered Benefits for Postretirement Benefit Plans

The annual assumed rate of increase in the per capita cost of covered benefits (the health care cost trend rate) for our postretirement benefit plans was as follows: 

	2022		2021		2020
Health care costs trend rate assumed for next year	6.3	%	6.5	%	6.8	%
Rate to which the cost trend rate gradually declines	5.0	%	5.0	%	5.0	%
Year that the rate reaches the rate at which it is assumed to remain	2027		2027		2027

Asset Allocations and Target Allocations by Asset Class

Our defined benefit pension plans’ asset allocations as of June 30, 2022 and 2021 and target allocations for 2023, by asset class, were as follows:

	2022		2021		Target %
Equity	14	%	20	%	14	%
Fixed Income	82	%	76	%	79	%
Other	4	%	4	%	7	%

The following table presents the fair value of the benefit plans' assets by asset category as of June 30, 2022:

(in thousands)	Level 1		Level 2		Level 3		NAV(3)		Total
Common / collective trusts (3):
Blend funds	$	—	$	—	$	—	$	48,973	$	48,973
Mutual funds	—		—		—		24,528		24,528
Corporate fixed income securities	—		379,324		—		—		379,324
Common stock	25,704		—		—		—		25,704
Government securities:
U.S. government securities	—		130,064		—		—		130,064
Foreign government securities	—		40,729		—		—		40,729
Other fixed income securities	—		20,248		—		—		20,248
Other	747		25,648		—		—		26,395
Total investments	$	26,451	$	596,013	$	—	$	73,501	$	695,965

The following table presents the fair value of the benefit plans' assets by asset category as of June 30, 2021:

(in thousands)	Level 1		Level 2		Level 3		NAV(3)		Total
Common / collective trusts (3):
Blend funds	$	—	$	—	$	—	$	90,338	$	90,338
Mutual funds	—		—		—		48,446		48,446
Corporate fixed income securities	—		443,948		—		—		443,948
Common stock	42,670		—		—		—		42,670
Government securities:
U.S. government securities	—		149,514		—		—		149,514
Foreign government securities	—		57,253		—		—		57,253
Other fixed income securities	—		21,107		—		—		21,107
Other	1,107		35,721		—		—		36,828
Total investments	$	43,777	$	707,543	$	—	$	138,784	$	890,104

(3) Investments in common / collective trusts invest primarily in publicly traded securities and are valued using net asset value (NAV) of units of a bank collective trust. Therefore, these amounts have not been classified in the fair value hierarchy and are presented in the tables to reconcile the fair value hierarchy to the total fair value of plan assets.

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Accumulated Other Comprehensive Loss (Tables)

12 Months Ended

Jun. 30, 2022

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

Components of Accumulated Other Comprehensive I(Loss) Income [Table Text Block]

The components of and changes in accumulated other comprehensive loss (AOCL) were as follows, net of tax, for the year ended June 30, 2022 (in thousands):

Attributable to Kennametal:	Pension and other postretirement benefits		Currency translation adjustment		Derivatives		Total
Balance, June 30, 2021	$	(213,172)	$	(122,428)	$	5,273	$	(330,327)
Other comprehensive loss before reclassifications	(4,163)		(87,620)		—		(91,783)
Amounts reclassified from AOCL	8,929		—		(770)		8,159
Net other comprehensive income (loss)	4,766		(87,620)		(770)		(83,624)
AOCL, June 30, 2022	$	(208,406)	$	(210,048)	$	4,503	$	(413,951)
Attributable to noncontrolling interests:
Balance, June 30, 2021	$	—	$	(3,982)	$	—	$	(3,982)
Other comprehensive income before reclassifications	—		(3,565)		—		(3,565)
Net other comprehensive loss	—		(3,565)		—		(3,565)
AOCL, June 30, 2022	$	—	$	(7,547)	$	—	$	(7,547)

The components of and changes in AOCL were as follows, net of tax, for the year ended June 30, 2021 (in thousands):

Attributable to Kennametal:	Pension and other postretirement benefits		Currency translation adjustment		Derivatives		Total
Balance, June 30, 2020	$	(232,634)	$	(181,027)	$	(3,581)	$	(417,242)
Other comprehensive income before reclassifications	9,107		58,599		9,255		76,961
Amounts reclassified from AOCL	10,355		—		(401)		9,954
Net other comprehensive income	19,462		58,599		8,854		86,915
AOCL, June 30, 2021	$	(213,172)	$	(122,428)	$	5,273	$	(330,327)
Attributable to noncontrolling interests:
Balance, June 30, 2020	$	—	$	(5,909)	$	—	$	(5,909)
Other comprehensive income before reclassifications	—		1,927		—		1,927
Net other comprehensive income	—		1,927		—		1,927
AOCL, June 30, 2021	$	—	$	(3,982)	$	—	$	(3,982)

The components of and changes in AOCL were as follows, net of tax, for the year ended June 30, 2020 (in thousands):

Attributable to Kennametal:	Pension and other postretirement benefits		Currency translation adjustment		Derivatives		Total
Balance, June 30, 2019	$	(222,270)	$	(147,595)	$	(3,678)	$	(373,543)
Other comprehensive loss before reclassifications	(18,299)		(33,432)		(582)		(52,313)
Amounts reclassified from AOCL	7,935		—		679		8,614
Net other comprehensive (loss) income	(10,364)		(33,432)		97		(43,699)
AOCL, June 30, 2020	$	(232,634)	$	(181,027)	$	(3,581)	$	(417,242)
Attributable to noncontrolling interests:
Balance, June 30, 2019	$	—	$	(3,450)	$	—	$	(3,450)
Other comprehensive loss before reclassifications	—		(2,459)		—		(2,459)
Net other comprehensive loss	—		(2,459)		—		(2,459)
AOCL, June 30, 2020	$	—	$	(5,909)	$	—	$	(5,909)

Reclassification out of Accumulated Other Comprehensive Loss

Reclassifications out of AOCL for the years ended June 30, 2022, 2021 and 2020 consisted of the following:

	Year Ended June 30,
Details about AOCL components (in thousands)	2022		2021		2020		Affected line item in the Income Statement
(Gains) and losses on cash flow hedges:
Forward starting interest rate swaps	$	(1,020)	$	4,082	$	2,444	Interest expense
Currency exchange contracts	—		(24)		(1,545)		Other income, net
Total before tax	(1,020)		4,058		899
Tax impact	250		(4,459)		(220)		Provision for income taxes
Net of tax	$	(770)	$	(401)	$	679
Pension and other postretirement benefits:
Amortization of transition obligations	$	94	$	94	$	88	Other income, net
Amortization of prior service credit	(263)		(242)		(226)		Other income, net
Recognition of actuarial losses	11,999		13,913		10,616		Other income, net
Total before tax	11,830		13,765		10,478
Tax impact	(2,901)		(3,410)		(2,543)		Provision for income taxes
Net of tax	$	8,929	$	10,355	$	7,935

Amount of Income Tax (Expense) Benefit Allocated to Each Component of Other Comprehensive Income (Loss) [Table Text Block]

The amount of income tax allocated to each component of other comprehensive income for the year ended June 30, 2022:

(in thousands)	Pre-tax		Tax impact		Net of tax
Reclassification of unrealized gain on expired derivatives designated and qualified as cash flow hedges	$	(1,020)	$	250	$	(770)
Unrecognized net pension and other postretirement benefit plans loss	(3,894)		(269)		(4,163)
Reclassification of net pension and other postretirement benefit plans loss	11,830		(2,901)		8,929
Foreign currency translation adjustments	(91,012)		(173)		(91,185)
Other comprehensive loss	$	(84,096)	$	(3,093)	$	(87,189)

The amount of income tax allocated to each component of other comprehensive loss for the year ended June 30, 2021:

(in thousands)	Pre-tax		Tax impact		Net of tax
Unrealized gain on derivatives designated and qualified as cash flow hedges	$	12,264	$	(3,009)	$	9,255
Reclassification of unrealized loss (gain) on expired derivatives designated and qualified as cash flow hedges	4,058		(4,459)		(401)
Unrecognized net pension and other postretirement benefit plans gain	11,901		(2,794)		9,107
Reclassification of net pension and other postretirement benefit plans loss	13,765		(3,410)		10,355
Foreign currency translation adjustments	61,038		(510)		60,528
Other comprehensive income	$	103,026	$	(14,182)	$	88,844

The amount of income tax allocated to each component of other comprehensive loss for the year ended June 30, 2020:

(in thousands)	Pre-tax		Tax impact		Net of tax
Unrealized loss on derivatives designated and qualified as cash flow hedges	$	(771)	$	189	$	(582)
Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges	899		(220)		679
Unrecognized net pension and other postretirement benefit plans loss	(23,999)		5,700		(18,299)
Reclassification of net pension and other postretirement benefit plans loss	10,478		(2,543)		7,935
Foreign currency translation adjustments	(35,936)		45		(35,891)
Other comprehensive loss	$	(49,329)	$	3,171	$	(46,158)

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Restructuring Charges (Tables)

12 Months Ended

Jun. 30, 2022

Restructuring Charges [Abstract]

Schedule of Restructuring Reserve by Type of Cost

As of June 30, 2022, $6.0 million of the restructuring accrual is recorded in other current liabilities and $1.9 million is recorded in other liabilities in our consolidated balance sheet. As of June 30, 2021, $19.9 million of the restructuring accrual is recorded in other current liabilities and $9.9 million is recorded in other liabilities in our consolidated balance sheet. The amounts are as follows:

(in thousands)	June 30, 2021		Expense, net		Asset Write-Down		Translation		Cash Expenditures		June 30, 2022
Severance	$	29,723	$	(4,628)	$	—	$	(1,772)	$	(15,404)	$	7,919
Facilities	—		3,385		(3,385)		—		—		—
Other	—		—		—		—		—		—
Total	29,723		(1,243)		(3,385)		(1,772)		(15,404)		7,919

(in thousands)	June 30, 2020		Expense		Asset Write-Down		Translation		Cash Expenditures		June 30, 2021
Severance	$	47,303	$	23,917	$	—	$	2,445	$	(43,942)	$	29,723
Facilities	—		5,664		(5,664)		—		—		—
Other	63		—		—		2		(65)		—
Total	47,366		29,581		(5,664)		2,447		(44,007)		29,723

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Stock-Based Compensation (Tables)

12 Months Ended

Jun. 30, 2022

Jun. 30, 2021

Share-based Payment Arrangement [Abstract]

Changes in stock options

Changes in our stock options for 2022 were as follows:

	Options	Weighted Average Exercise Price		Weighted Average Remaining Life (years)	Aggregate Intrinsic value (in thousands)
Options outstanding, June 30, 2021	315,012	$	37.83
Exercised	(6,916)	31.69
Lapsed and forfeited	(36,253)	41.84
Options outstanding, June 30, 2022	271,843	$	37.45	1.9	$	33
Options vested and expected to vest, June 30, 2022	271,843	$	37.45	1.9	$	33
Options exercisable, June 30, 2022	271,843	$	37.45	1.9	$	33

Changes in time vesting and performance vesting restricted stock units

Changes in our time vesting and performance vesting restricted stock units for 2022 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, 2021	500,477	$	32.53	1,332,740	$	31.72
Granted	108,234	36.70		532,638	36.51
Vested	(38,620)	39.69		(534,462)	32.14
Performance metric adjustments, net	(150,711)	31.18		—	—
Forfeited	(68,425)	33.43		(117,020)	32.79
Unvested, June 30, 2022	350,955	$	33.44	1,213,896	$	33.53

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Segment Data (Tables)

12 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Disaggregation of Revenue [Table Text Block]

The following table presents Kennametal's revenue disaggregated by segment by geography:

	Metal Cutting						Infrastructure						Total Kennametal
	2022		2021		2020		2022		2021		2020		2022		2021		2020
Americas	41	%	38	%	42	%	59	%	57	%	62	%	48	%	45	%	49	%
EMEA	37		39		37		18		19		18		30		31		30
Asia Pacific	22		23		21		23		24		20		22		24		21

The following table presents Kennametal's revenue disaggregated by segment by end market:

	Metal Cutting						Infrastructure						Total Kennametal
	2022		2021		2020		2022		2021		2020		2022		2021		2020
General Engineering	56	%	54	%	53	%	34	%	35	%	34	%	47	%	47	%	46	%
Transportation	27		30		27		—		—		—		17		19		17
Aerospace	9		8		12		—		—		—		6		5		7
Energy	8		8		8		29		26		28		16		15		16
Earthworks	—		—		—		37		39		38		14		14		14

Segment Data

Segment data is summarized as follows: 

(in thousands)	2022		2021		2020
Sales:
Metal Cutting	$	1,227,273	$	1,150,746	$	1,178,053
Infrastructure	785,183		690,695		707,252
Total sales	$	2,012,456	$	1,841,441	$	1,885,305
Operating income:
Metal Cutting	$	121,386	$	45,855	$	985
Infrastructure	98,871		59,461		23,113
Corporate	(2,117)		(3,148)		(1,846)
Total operating income	$	218,140	$	102,168	$	22,252
Interest expense	$	25,914	$	46,375	$	35,154
Other income, net	(14,507)		(8,867)		(14,862)
Income before income taxes	$	206,733	$	64,660	$	1,960
Depreciation and amortization:
Metal Cutting	$	87,986	$	81,796	$	74,664
Infrastructure	43,691		44,661		45,176
Corporate	1		31		20
Total depreciation and amortization	$	131,678	$	126,488	$	119,860
Segment assets(4):
Metal Cutting	$	1,469,835	$	1,532,177	$	1,452,131
Infrastructure	768,226		698,766		748,424
Corporate	335,463		434,818		837,036
Total assets	$	2,573,524	$	2,665,761	$	3,037,591
Capital expenditures:
Metal Cutting	$	64,055	$	103,812	$	195,167
Infrastructure	32,869		23,490		48,984
Total capital expenditures	$	96,924	$	127,302	$	244,151

(4) Metal Cutting and Infrastructure segment assets are principally accounts receivable, less allowance for doubtful accounts; inventories; property, plant and equipment, net; goodwill; other intangible assets, net of accumulated amortization; and operating lease ROU assets. Corporate assets are principally cash and cash equivalents, other current assets, long-term prepaid pension benefit, deferred income taxes and other assets.

Geographic Information for Sales [Table Text Block]

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

(in thousands)	2022		2021		2020
Sales:
United States	$	797,768	$	692,106	$	778,054
Germany	262,764		260,792		248,796
China	234,997		242,815		214,364
Canada	94,956		79,891		90,247
India	108,695		94,966		81,366
Italy	67,930		59,955		52,699
France	47,218		45,356		45,817
United Kingdom	30,686		28,464		33,305
Other(5)	367,442		337,096		340,657
Total sales	$	2,012,456	$	1,841,441	$	1,885,305
Total long-lived assets:
United States	$	585,003	$	611,724	$	607,222
Germany	195,325		218,250		210,674
China	92,315		97,404		92,658
India	45,146		19,144		20,508
Israel	26,864		44,504		44,673
Canada	18,478		21,790		22,249
Other (5)	38,910		42,319		40,287
Total long-lived assets(6)	$	1,002,041	$	1,055,135	$	1,038,271

(5) Other does not contain any country that individually exceeds 2 percent of total sales or total long-lived assets, respectively.

(6) Total long-lived assets as of June 30, 2022, 2021 and 2020 include property, plant, and equipment, net.

XML

Summary of Significant Accounting Policies - Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Goodwill and other Intangible Asset Impairment	$ 15,600	$ 14,600			$ 30,227
Goodwill, Gross			$ 1,075,102	$ 1,088,487	1,081,452
Goodwill, Accumulated Impairment Loss			810,872	810,872	810,872
Goodwill			264,230	277,615	270,580
Goodwill, Period Increase (Decrease)			(13,385)	7,035
Metal Cutting [Member]
Goodwill, Gross			441,891	455,276	448,241
Goodwill, Accumulated Impairment Loss			(177,661)	(177,661)	(177,661)
Goodwill			264,230	277,615	270,580
Goodwill, Period Increase (Decrease)			(13,385)	7,035
Infrastructure [Member]
Goodwill, Gross			633,211	633,211	633,211
Goodwill, Accumulated Impairment Loss			(633,211)	(633,211)	(633,211)
Goodwill			0	0	$ 0
Goodwill, Period Increase (Decrease)			$ 0	$ 0

XML

Summary of Significant Accounting Policies (Details 1) shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 30, 2022 USD ($) Segment shares	Jun. 30, 2021 USD ($) shares	Jun. 30, 2020 shares
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Payment terms, minimum	30
Weighted Average Number of Shares Outstanding, Basic | shares	83,252	83,602	83,047
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | shares	692	731
Weighted Average Number of Shares Outstanding, Diluted | shares	83,944	84,333	83,047
Finite-Lived Intangible Assets, Accumulated Amortization	$ (160,699)	$ (153,972)
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares	260	295
Payment terms, maximum	90
Termination of Warranty | Segment	30
Technology-Based and other [Member]
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	$ 31,592	$ 33,632
Finite-Lived Intangible Assets, Accumulated Amortization	(22,734)	(24,413)
Customer-related [Member]
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	180,263	183,338
Finite-Lived Intangible Assets, Accumulated Amortization	(104,698)	(98,901)
Unpatented Technology [Member]
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	31,807	31,957
Finite-Lived Intangible Assets, Accumulated Amortization	(22,950)	(20,575)
Trademarks [Member]
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	12,403	13,268
Finite-Lived Intangible Assets, Accumulated Amortization	(10,317)	(10,083)
Trademarks [Member]
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Indefinite-lived Intangible Assets (Excluding Goodwill)	$ 10,359	$ 11,818
Minimum [Member] | Technology-Based and other [Member]
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	4 years
Minimum [Member] | Customer-related [Member]
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	10 years
Minimum [Member] | Unpatented Technology [Member]
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	10 years
Minimum [Member] | Trademarks [Member]
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	5 years
Maximum [Member] | Technology-Based and other [Member]
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	20 years
Maximum [Member] | Customer-related [Member]
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	21 years
Maximum [Member] | Unpatented Technology [Member]
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	30 years
Maximum [Member] | Trademarks [Member]
Finite Lived And Indefinite Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	20 years

XML

Summary Of Significant Accounting Policies (Details 2) - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Accumulated Amortization	$ 160,699	$ 153,972
Technology-Based and other [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	31,592	33,632
Finite-Lived Intangible Assets, Accumulated Amortization	22,734	24,413
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	180,263	183,338
Finite-Lived Intangible Assets, Accumulated Amortization	104,698	98,901
Unpatented Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	31,807	31,957
Finite-Lived Intangible Assets, Accumulated Amortization	22,950	20,575
Trademarks [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	12,403	13,268
Finite-Lived Intangible Assets, Accumulated Amortization	10,317	10,083
Trademarks [Member]
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived Intangible Assets (Excluding Goodwill)	$ 10,359	$ 11,818

XML

Summary Of Significant Accounting Policies - Stock-Based Compensation (Details) - shares	12 Months Ended
	Jun. 30, 2022	Oct. 26, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercisable Period for Capital Stock Options	10 years
Amended and Restated Two Thousand Ten Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized		9,500,000

XML

Summary Of Significant Accounting Policies - Property, Plant and Equipment (Details) shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 30, 2022 USD ($) Segment shares	Jun. 30, 2021 USD ($) shares	Jun. 30, 2020 USD ($)
Property, Plant and Equipment [Line Items]
Amortization	$ 12,988	$ 14,003	$ 13,811
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	12,300
Finite-Lived Intangible Assets, Amortization Expense, Year Two	10,700
Finite-Lived Intangible Assets, Amortization Expense, Year Three	9,600
Finite-Lived Intangible Assets, Amortization Expense, Year Four	9,200
Finite-Lived Intangible Assets, Amortization Expense, Year Five	$ 7,700
Increase in weighted average shares due to dilutive effect of unexercised capital stock options, unvested restricted stock awards and unvested restricted stock units | shares	692	731
Unexercised capital stock options, restricted stock units and restricted stock awards excluded from computation of diluted EPS | shares	260	295
Termination of Warranty | Segment	30
Research and Development Expense	$ 42,100	$ 39,500	38,700
Currency Transaction Gain (Loss), before Tax	$ (2,500)	$ (3,300)	$ (3,400)
Minimum [Member] | Building and Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	15 years
Minimum [Member] | Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	4 years
Minimum [Member] | Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Minimum [Member] | ComputerHardwareAndSoftware [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Maximum [Member] | Building and Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	40 years
Maximum [Member] | Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	15 years
Maximum [Member] | Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	10 years
Maximum [Member] | ComputerHardwareAndSoftware [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	5 years

XML

Summary of Signficant Accounting Policies (Details Textual 1) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Business Acquisition [Line Items]
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements			692	731
Goodwill			$ 264,230	$ 277,615	$ 270,580
Finite-Lived Intangible Assets, Accumulated Amortization			160,699	153,972
Intangible Assets, Gross (Excluding Goodwill)			$ 266,424	$ 274,013
Goodwill and other Intangible Asset Impairment	$ 15,600	$ 14,600			30,227
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount			260	295
Technology-Based and other [Member]
Business Acquisition [Line Items]
Finite-Lived Intangible Assets, Gross			$ 31,592	$ 33,632
Finite-Lived Intangible Assets, Accumulated Amortization			$ 22,734	24,413
Technology-Based and other [Member] | Maximum [Member]
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life			20 years
Technology-Based and other [Member] | Minimum [Member]
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life			4 years
Customer-related [Member]
Business Acquisition [Line Items]
Finite-Lived Intangible Assets, Gross			$ 180,263	183,338
Finite-Lived Intangible Assets, Accumulated Amortization			$ 104,698	98,901
Customer-related [Member] | Maximum [Member]
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life			21 years
Customer-related [Member] | Minimum [Member]
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life			10 years
Unpatented Technology [Member]
Business Acquisition [Line Items]
Finite-Lived Intangible Assets, Gross			$ 31,807	31,957
Finite-Lived Intangible Assets, Accumulated Amortization			$ 22,950	20,575
Unpatented Technology [Member] | Maximum [Member]
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life			30 years
Unpatented Technology [Member] | Minimum [Member]
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life			10 years
Trademarks [Member]
Business Acquisition [Line Items]
Finite-Lived Intangible Assets, Gross			$ 12,403	13,268
Finite-Lived Intangible Assets, Accumulated Amortization			$ 10,317	10,083
Trademarks [Member] | Maximum [Member]
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life			20 years
Trademarks [Member] | Minimum [Member]
Business Acquisition [Line Items]
Finite-Lived Intangible Asset, Useful Life			5 years
Trademarks [Member]
Business Acquisition [Line Items]
Indefinite-lived Intangible Assets (Excluding Goodwill)			$ 10,359	11,818
Infrastructure [Member]
Business Acquisition [Line Items]
Goodwill			0	0	0
Metal Cutting [Member]
Business Acquisition [Line Items]
Goodwill			$ 264,230	$ 277,615	$ 270,580

XML

Summary of Significant Accounting Policies (Details Textual 2)	12 Months Ended
	Jun. 30, 2022
Trademarks [Member] | Minimum [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	5 years
Trademarks [Member] | Maximum [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	20 years
Technology-Based and other [Member] | Minimum [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	4 years
Technology-Based and other [Member] | Maximum [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	20 years
Unpatented Technology [Member] | Minimum [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	10 years
Unpatented Technology [Member] | Maximum [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	30 years

XML

Summary Of Significant Accounting Policies New Accounting Standards (Details)	12 Months Ended
	Jun. 30, 2022 Segment
Termination of Warranty	30

XML

Divestiture - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2020
Acquired Finite-Lived Intangible Assets [Line Items]
Proceeds from Divestiture of Businesses	$ 1,001	$ 23,950
Gain (Loss) on divestiture	$ (1,001)	(6,517)
Disposition of Businesses, Net Book Value of Assets at Closing		$ 29,500

XML

Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	$ 176	$ 36
Total assets at fair value	176	36
Derivatives	574	87
Total liabilities at fair value	574	87
Fair Value, Recurring [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	176	36
Total assets at fair value	176	36
Derivatives	574	87
Total liabilities at fair value	574	87
Fair Value, 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

XML

Derivative Instruments and Hedging Activities - Fair Value of Derivatives Designated and Note Designated as Hedging Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Fair value of derivatives
Total derivatives	$ (398)	$ (51)
Derivative, Notional Amount			$ 200,000
Not Designated as Hedging Instrument [Member]
Fair value of derivatives
Total derivatives	(398)	(51)
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | Other Current Assets [Member]
Fair value of derivatives
Derivative assets designated as hedging instruments	176	36
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | Other Current Liabilities [Member]
Fair value of derivatives
Derivative liabilities designated as hedging instruments	$ (574)	(87)
Forward Starting Interest Rate Swap Contracts
Fair value of derivatives
Derivative, Notional Amount		$ 200,000

XML

Derivative Instruments and Hedging Activities - Losses (gains) related to Derivatives Not Designated as Hedging Instruments and to Cash Flow Hedges (Details) € in Thousands, $ in Thousands	12 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2022 EUR (€)	Jun. 30, 2021 EUR (€)
Net Investment Hedging [Member]
(Gains) losses related to cash flow hedges
Gain (Loss) on Derivative Used in Net Investment Hedge, after Tax	$ 800	$ (1,900)	$ 600
Net Investment Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Amount of Hedged Item | €				€ 13,000	€ 5,200
Net Investment Hedge Maturing on June 26, 2022 [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Notional Amount	13,531			€ 13,013
Foreign Exchange Forward [Member] | Other Nonoperating Income (Expense) [Member] | Not Designated as Hedging Instrument [Member]
Derivative Instruments, (Gain )Loss Recognized in Income, Net
Other income, net - currency forward contracts	$ 377	$ 2	$ 210

XML

Derivative Instruments and Hedging Activities - Narrative 1 (Details) € in Thousands, $ in Thousands	12 Months Ended
	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2022 EUR (€)	Jun. 30, 2021 EUR (€)	Jun. 30, 2020 USD ($)
Additional Derivative Instruments and Hedging Activities (Textual) [Abstract]
Derivative, Notional Amount					$ 200,000
Proceeds from Derivative Instrument, Financing Activities	$ 10,198
Forward Starting Interest Rate Swap Contracts
Additional Derivative Instruments and Hedging Activities (Textual) [Abstract]
Derivative, Notional Amount	200,000
Net Investment Hedge Maturing on June 26, 2022 [Member]
Additional Derivative Instruments and Hedging Activities (Textual) [Abstract]
Notional amount of the contracts translated into U.S. dollars		$ 13,531	€ 13,013
Net Investment Hedge Maturing on June26, 2022
Additional Derivative Instruments and Hedging Activities (Textual) [Abstract]
Notional amount of the contracts translated into U.S. dollars	$ 6,146			€ 5,173

XML

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021
Inventories
Finished goods	$ 316,936	$ 302,524
Work in process and powder blends	231,214	173,671
Raw materials	107,024	72,551
Inventories at current cost	655,174	548,746
Less: LIFO valuation	(84,338)	(72,401)
Total inventories	$ 570,836	$ 476,345
Inventories (Textual) [Abstract]
Percentage of inventories valued by using LIFO method	39.00%

XML

Goodwill and Other Intangible Assets Schedule of Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Goodwill [Line Items]
Goodwill, Gross			$ 1,075,102	$ 1,088,487	$ 1,081,452
Goodwill, Accumulated Impairment Loss			(810,872)	(810,872)	(810,872)
Goodwill			264,230	277,615	270,580
Goodwill, Period Increase (Decrease)			(13,385)	7,035
Metal Cutting [Member]
Goodwill [Line Items]
Goodwill, Gross			441,891	455,276	448,241
Goodwill, Accumulated Impairment Loss			177,661	177,661	177,661
Goodwill			264,230	277,615	270,580
Goodwill, Period Increase (Decrease)			(13,385)	7,035
WIDIA [Member]
Goodwill [Line Items]
Goodwill, Impairment Loss	$ (13,700)	$ (13,100)
Infrastructure [Member]
Goodwill [Line Items]
Goodwill, Gross			633,211	633,211	633,211
Goodwill, Accumulated Impairment Loss			633,211	633,211	633,211
Goodwill			0	0	$ 0
Goodwill, Period Increase (Decrease)			$ 0	$ 0

XML

Goodwill and Other Intangible Assets Other Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019	Dec. 31, 2019	Jun. 30, 2022	Jun. 30, 2020	Jun. 30, 2021
Finite-Lived Intangible Assets, Accumulated Amortization				$ 160,699		$ 153,972
Intangible Assets, Gross (Excluding Goodwill)				266,424		274,013
Goodwill and other Intangible Asset Impairment	$ 15,600	$ 14,600			$ 30,227
Goodwill				264,230	270,580	277,615
WIDIA [Member]
Goodwill, Impairment Loss	13,700	$ 13,100
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)	$ 1,900		$ 1,500
Metal Cutting [Member]
Goodwill				264,230	$ 270,580	277,615
Technology-Based and other [Member]
Finite-Lived Intangible Assets, Gross				31,592		33,632
Finite-Lived Intangible Assets, Accumulated Amortization				$ 22,734		24,413
Technology-Based and other [Member] | Minimum [Member]
Finite-Lived Intangible Asset, Useful Life				4 years
Technology-Based and other [Member] | Maximum [Member]
Finite-Lived Intangible Asset, Useful Life				20 years
Customer Relationships [Member]
Finite-Lived Intangible Assets, Gross				$ 180,263		183,338
Finite-Lived Intangible Assets, Accumulated Amortization				$ 104,698		98,901
Customer Relationships [Member] | Minimum [Member]
Finite-Lived Intangible Asset, Useful Life				10 years
Customer Relationships [Member] | Maximum [Member]
Finite-Lived Intangible Asset, Useful Life				21 years
Unpatented Technology [Member]
Finite-Lived Intangible Assets, Gross				$ 31,807		31,957
Finite-Lived Intangible Assets, Accumulated Amortization				$ 22,950		20,575
Unpatented Technology [Member] | Minimum [Member]
Finite-Lived Intangible Asset, Useful Life				10 years
Unpatented Technology [Member] | Maximum [Member]
Finite-Lived Intangible Asset, Useful Life				30 years
Trademarks [Member]
Finite-Lived Intangible Assets, Gross				$ 12,403		13,268
Finite-Lived Intangible Assets, Accumulated Amortization				$ 10,317		10,083
Trademarks [Member] | Minimum [Member]
Finite-Lived Intangible Asset, Useful Life				5 years
Trademarks [Member] | Maximum [Member]
Finite-Lived Intangible Asset, Useful Life				20 years
Trademarks [Member]
Indefinite-lived Intangible Assets (Excluding Goodwill)				$ 10,359		$ 11,818

XML

Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Goodwill and Other Intangible Assets [Abstract]
Amortization of intangibles	$ 12,988	$ 14,003	$ 13,811
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	12,300
Finite-Lived Intangible Assets, Amortization Expense, Year Two	10,700
Finite-Lived Intangible Assets, Amortization Expense, Year Three	9,600
Finite-Lived Intangible Assets, Amortization Expense, Year Four	9,200
Finite-Lived Intangible Assets, Amortization Expense, Year Five	$ 7,700

XML

Leases, Codification Topic 840 (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Leases [Abstract]
Short-term Lease, Cost	$ 3,700	$ 2,400	$ 6,400
Operating Lease, Weighted Average Remaining Lease Term	8 years 1 month 6 days	8 years	8 years 7 months 6 days
Operating Lease, Weighted Average Discount Rate, Percent	3.20%	3.30%	3.30%
Operating Lease, Payments	$ 17,592	$ 17,651	$ 15,635
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability	15,430	17,235	16,171
Lessee, Operating Lease, Liability, Payments, Due Next Rolling Twelve Months	13,383
Lessee, Operating Lease, Liability, Payments, Due in Rolling Year Two	10,195
Lessee, Operating Lease, Liability, Payments, Due in Rolling Year Three	7,374
Lessee, Operating Lease, Liability, Payments, Due in Rolling Year Four	4,672
Lessee, Operating Lease, Liability, Payments, Due in Rolling Year Five	3,110
Lessee, Operating Lease, Liability, Payments, Due after Rolling Year Five	16,029
Lessee, Operating Lease, Liability, to be Paid	54,763
Lessee, Operating Lease, Liability, Undiscounted Excess Amount	7,034
Operating Lease, Liability	47,729
Operating Leased Assets [Line Items]
Operating Lease, Cost	$ 21,300	$ 20,200	$ 22,600

XML

Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021
Other Liabilities, Current [Abstract]
Accrued employee benefits, current	$ 35,270	$ 51,783
Restructuring reserve, current	6,019	19,851
Accrued Payroll Taxes, Current	9,989	6,873
Accrued legal and professional fees, current	9,489	8,428
Accrued interest, current	3,394	3,520
Other	66,304	64,586
Total Other Current Liabilities	138,403	157,602
Accrued Environmental Loss Contingencies, Current	$ 7,938	$ 2,561

XML

Long-Term Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021
Long-term Debt Current and Noncurrent
Long-term Debt, Including Current Maturities	$ 598,544	$ 598,306
Debt Issuance Costs, Net	(4,180)	(6,198)
Long-term Debt, Current Maturities [Abstract]
Long-term Debt, Less Current Maturities	594,364	592,108
2.650% Senior Notes due 2020 [Member]
Long-term Debt Current and Noncurrent
Long-term Debt	299,842	299,823
4.625% Senior Unsecured Notes Due in 2028
Long-term Debt Current and Noncurrent
Long-term Debt	298,702	298,483
Long-term Debt, Current Maturities [Abstract]
Debt Instrument, Unamortized Discount	1,300	$ 1,500
Two Point Eight Percent Senior Unsecured Notes Due In Two Thousand And Thirty One
Long-term Debt, Current Maturities [Abstract]
Debt Instrument, Unamortized Discount	$ 200

XML

Long -Term Debt - Narrative (Details) - USD ($) $ in Thousands				12 Months Ended
	Feb. 23, 2021	Jun. 07, 2018	Feb. 14, 2012	Jun. 30, 2022	Jun. 30, 2021
Long Term Debt (Additional Textual) [Abstract]
Long-term Debt, Fair Value				$ 536,100	$ 644,200
Forward Starting Interest Rate Swap Contracts
Long Term Debt (Additional Textual) [Abstract]
Interest Income (Expense), Net				2,600
4.625% Senior Unsecured Notes Due in 2028
Long-Term Debt (Textual) [Abstract]
Debt Instrument, Interest Rate, Stated Percentage		4.625%
Debt Instrument, Unamortized Discount				1,300	1,500
Long Term Debt (Additional Textual) [Abstract]
Proceeds from Issuance of Senior Long-term Debt		$ 300,000
3.875% Senior Unsecured Notes Due in 2022 [Member]
Long-Term Debt (Textual) [Abstract]
Debt Instrument, Interest Rate, Stated Percentage			3.875%
Long Term Debt (Additional Textual) [Abstract]
Proceeds from Issuance of Senior Long-term Debt			$ 300,000
Two Point Eight Percent Senior Unsecured Notes Due In Two Thousand And Thirty One
Long-Term Debt (Textual) [Abstract]
Debt Instrument, Interest Rate, Stated Percentage	2.80%
Debt Instrument, Unamortized Discount				200
Long Term Debt (Additional Textual) [Abstract]
Proceeds from Issuance of Senior Long-term Debt	$ 300,000
Twenty Eighteen Credit Agreement [Member] [Domain]
Long-Term Debt (Textual) [Abstract]
Maximum Borrowing Capacity under the 2018 Credit Agreement		$ 700,000
Borrowing outstanding under 2018 Credit Agreement				$ 19,000	$ 0
Term of Long Term Debt				5 years

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Notes Payable and Lines of Credit (Details) - USD ($)	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 07, 2018
Notes Payable and Lines of Credit (Textual) [Abstract]
Notes Payable	$ 21,186,000	$ 8,365,000
Other Notes Payable	$ 2,200,000	8,400,000
Line of Credit
Notes Payable and Lines of Credit (Textual) [Abstract]
Debt, Weighted Average Interest Rate	1.40%
Net Debt to EBITDA Ratio, domestic cash allowed to net debt, amount, minimum	$ 25,000,000
Net Debt to EBITDA Ratio, Maximum	3.75
Notes Payable to Banks [Member]
Notes Payable and Lines of Credit (Textual) [Abstract]
Line of Credit Facility, Maximum Borrowing Capacity	60,700,000
Line of Credit Facility Unused	681,000,000
Twenty Eighteen Credit Agreement [Member] [Domain]
Notes Payable and Lines of Credit (Textual) [Abstract]
Line of Credit Facility, Maximum Borrowing Capacity			$ 700,000,000
Line of Credit Facility, Fair Value of Amount Outstanding	$ 19,000,000	$ 0
Term of Long Term Debt	5 years

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Income Taxes - Effective Tax Rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Income (Loss) Before Income Taxes
United States	$ 10,109	$ (60,775)	$ (76,107)
International	196,624	125,435	78,067
Income before income taxes	206,733	64,660	1,960
Current Income Taxes
Federal	1,115	39	(3,558)
State	106	133	905
International	44,019	30,726	33,559
Total Current Income Taxes	45,240	30,898	30,906
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract]
Federal	10,841	(23,170)	(9,113)
State	(676)	(2,948)	724
International	1,127	1,463	(15,510)
Deferred Income Taxes and Tax Credits	11,292	(24,655)	(23,899)
Provision for income taxes	$ 56,532	$ 6,243	$ 7,007
Effective tax rate	27.30%	9.70%	357.50%

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Income Taxes - Reconciliation of Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Income Taxes at U.S Statutory Rate	$ 43,414	$ 13,579	$ 412
State Income Taxes, Net of Federal Tax Benefits	(450)	(1,725)	1,283
US Income Tax Provided On International Income	12,815	(6,479)	12,422
Combined Tax Effects of International Income	2,747	5,860	10,583
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Impairment Losses, Amount			5,651
Change in valuation allowance and other uncertain tax positions	(614)	1,127	755
Research and Development Credit	(2,814)	(3,055)	(4,093)
Change In Permanent Reinvestment Assertion	775	0	0
Other	659	401	1,407
Provision for income taxes	$ 56,532	6,243	7,007
Discrete Benefit for Swiss Tax Reform			(14,500)
Effective income tax rate reconciliation, Combined effects of U.S. CARES Act, Amount			$ (6,913)
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount		$ (3,465)

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Income Taxes - Components of Net Deferred Tax Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021
Deferred Tax Assets
Net Operating Loss Carryforwards	$ 25,868	$ 44,258
Inventory Valuation and Reserves	11,747	11,068
Pension Benefits	0	7,136
Other Postretirement Benefits	3,050	3,486
Accrued Employee Benefits	11,775	11,168
Other Accrued Liabilities	12,992	15,596
Tax Credit and Other Carryforwards	34,930	32,490
Total	116,603	145,638
Valuation Allowance	14,385	21,263
Total Deferred Tax Assets	102,218	124,375
Deferred Tax Liabilities
Tax Depreciation in Excess of Book	57,109	63,020
Deferred Tax Liabilities, Undistributed Foreign Earnings	7,242	6,429
Deferred Tax Liabilities, Pension Benefits	1,061
Deferred Tax Liabilities, Other	2,537	7,392
Total Deferred Tax Liabilities	79,801	89,343
Total Net Deferred Tax Liabilities	22,417	35,032
Deferred Tax Assets, Goodwill and Intangible Assets	4,246	7,784
Deferred Tax Asset, Tax Deferred Expense, Operating lease liabilities	11,995	12,652
Deferred Tax Liabilities, Operating lease right-of-use assets	11,852	$ 12,502
Deferred Tax Assets, NOLs, Tax Credits, and Other Carryforwards	$ 46,200

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Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Balance at beginning of year	$ 8,656	$ 8,680	$ 8,952
Increases for tax positions of prior years	105	0	0
Decreases related to lapse of statute of limitations	(779)	(229)	(214)
Decrease Resulting from Foreign Currency Translation	(384)		(58)
Increase Resulting from Foreign Currency Translation		205
Balance at end of year	$ 7,598	$ 8,656	$ 8,680

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Income Taxes - Narrative (Details)	12 Months Ended
	Jun. 30, 2022 USD ($) Segment	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)
Income Tax (Textual) [Abstract]
Valuation Allowance Adjustment	$ (614,000)	$ 1,127,000	$ 755,000
Change In Permanent Reinvestment Assertion	775,000	0	0
Tax Benefits associated with Net Operating Loss Carryforwards in Federal, State and Foreign Jurisdictions	25,868,000	44,258,000
Valuation Allowance	(14,385,000)	(21,263,000)
Change in Valuation Allowance, Current Year	6,900,000
Deferred Tax Assets, Tax Credit Carryforwards	34,930,000	32,490,000
Unremitted Earnings of Non-U.S. Subsidiaries and Affiliates		1,500,000,000
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	7,600,000	8,700,000	8,700,000
Increase (reduction) in Interest	100,000	200,000	1,000,000
Interest Accrued	1,400,000
Penalties Accrued	0
Deferred Tax Liabilities, Undistributed Foreign Earnings	7,242,000	6,429,000
Discrete Benefit for Swiss Tax Reform			(14,500,000)
Total Net Deferred Tax Liabilities	(22,417,000)	(35,032,000)
Decrease in Unrecognized Tax Benefits is Reasonably Possible	$ 2,000,000
CARES Act, Period of Preceding Taxable Years for Net Operating Loss Carryback | Segment	5
CARES Act, Percent of Taxable Income Permitted to be Offset by Net Operating Loss Carryovers and Carrybacks	$ 1
Allowable business interest deduction, percent, before CARES Act	0.30
Allowable business interest deduction, percent, after CARES Act	0.50
US Income Tax Provided On International Income	12,815,000	(6,479,000)	$ 12,422,000
Global Intangible Low-Taxed Income Regulation
Income Tax (Textual) [Abstract]
US Income Tax Provided On International Income		$ 9,300,000
UNITED STATES
Income Tax (Textual) [Abstract]
Total Net Deferred Tax Liabilities	(25,900,000)
Expiring Year Fifteen Through Twenty [Member]
Income Tax (Textual) [Abstract]
Tax Benefits associated with Net Operating Loss Carryforwards in Federal, State and Foreign Jurisdictions	2,200,000
Expiring Year Ten Through Fifteen [Member]
Income Tax (Textual) [Abstract]
Tax Benefits associated with Net Operating Loss Carryforwards in Federal, State and Foreign Jurisdictions	3,200,000
Expiring Year Five Through Ten [Member]
Income Tax (Textual) [Abstract]
Tax Benefits associated with Net Operating Loss Carryforwards in Federal, State and Foreign Jurisdictions	2,000,000
Expiring Through Year Five [Member]
Income Tax (Textual) [Abstract]
Tax Benefits associated with Net Operating Loss Carryforwards in Federal, State and Foreign Jurisdictions	4,700,000
Does not expire [Member]
Income Tax (Textual) [Abstract]
Tax Benefits associated with Net Operating Loss Carryforwards in Federal, State and Foreign Jurisdictions	13,800,000
Does not expire [Member]
Income Tax (Textual) [Abstract]
Deferred Tax Assets, Tax Credit Carryforwards	1,500,000
Expiring Year Fifteen Through Twenty [Member]
Income Tax (Textual) [Abstract]
Deferred Tax Assets, Tax Credit Carryforwards	19,100,000
Expiring Year Ten Through Fifteen [Member]
Income Tax (Textual) [Abstract]
Deferred Tax Assets, Tax Credit Carryforwards	4,600,000
Expiring Year Five Through Ten [Member]
Income Tax (Textual) [Abstract]
Deferred Tax Assets, Tax Credit Carryforwards	2,500,000
Amortizable Over Eight Years
Income Tax (Textual) [Abstract]
Deferred Tax Assets, Tax Credit Carryforwards	$ 7,200,000

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Pension and Other Postretirement Benefits - Funded Status of Pension Plans and Amounts Recognized in the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Change in Plan Assets
Fair Value of Plans' Assets, Beginning of Year	$ 890,104
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Other Adjustments	(5)	$ 149
Fair Value of Plans' Assets, End of Year	695,965	890,104
Amounts Recognized in Balance Sheet
Long-term prepaid pension benefit	66,433	89,233
Pension plans contribution [Member]
Change in Benefit Obligation
Benefit Obligation, Beginning of Year	968,725	1,004,005
Service Cost	1,117	1,685	$ 1,796
Interest Cost	22,532	23,188	27,320
Participant Contributions	479	548
Actuarial Losses	(170,055)	(16,794)
Defined Benefit Plan, Benefit Obligation, Benefits Paid	53,149	52,719
Benefits and expenses paid	(53,149)	(52,719)
Currency Translation Adjustment	(27,074)	23,276
Plan Amendments	(66)	(129)
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement	(1,805)	(13,966)
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Curtailment	(3)	(10)
Benefit Obligation, End of Year	741,009	968,725	1,004,005
Change in Plan Assets
Fair Value of Plans' Assets, Beginning of Year	890,104	876,036
Actual Return on Plans' Assets	(133,374)	54,026
Company Contributions	8,170	9,998
Currency translation adjustments	(14,455)	16,032
Fair Value of Plans' Assets, End of Year	695,965	890,104	$ 876,036
Funded Status of Plans	(45,044)	(78,621)
Defined Benefit Plan, Plan Assets, Contributions by Plan Participant	479	548
Defined Benefit Plan, Plan Assets, Payment for Settlement	1,805	13,966
Amounts Recognized in Balance Sheet
Long-term prepaid pension benefit	66,433	89,233
Short-term Accrued Benefit Obligation	(6,406)	(6,918)
Accrued Pension Benefits	(105,071)	(160,936)
Net Amount Recognized	(45,044)	(78,621)
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Other Change	$ 308	$ (359)

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Pension and Other Postretirement Benefits - Amounts Related to Defined Pension Plans Recognized in Accumulated Other Comprehensive (Loss) Income (Details) - Pension plans contribution [Member] - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract]
Unrecognized Net Actuarial Losses	$ 274,416	$ 279,628
Unrecognized Net Prior Service Costs	1,822	2,001
Unrecognized Transition Obligations	158	277
Total	$ 276,396	$ 281,906

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Pension and Other Postretirement Benefits - Plans with Accumulated Benefit Obligations Exceeding the Fair Value of Plan Assets (Details) - Pension plans contribution [Member] - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021
Defined Benefit Plan Disclosure [Line Items]
Project Benefit Obligation	$ 118,199	$ 174,973
Accumulated Benefit Obligation	117,614	173,684
Fair Value of Plan Assets	$ 6,718	$ 7,116

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Pension and Other Postretirement Benefits - Components of Net Periodic Pension (Income) Cost (Details) - Pension plans contribution [Member] - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Net periodic pension income
Service cost	$ 1,117	$ 1,685	$ 1,796
Interest cost	22,532	23,188	27,320
Expected Return on Plans' Assets	(51,928)	(53,653)	(53,943)
Amortization of transition obligation	94	94	88
Amortization of prior service cost	13	34	50
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment	(2)	(7)	(115)
Special termination benefit charge	277	473	288
Settlement Loss	205	3,190	(51)
Recognition of actuarial losses	11,702	13,606	10,359
Net Periodic Benefit (Income) Cost	$ (15,990)	$ (12,336)	$ (14,208)

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Pension and Other Postretirement Benefits - Funded Status of Other Postretirement Benefit Plans and Amounts Recognized in the Consolidated Balance Sheets (Details) - Other Postretirement Benefit Plan, Defined Benefit [Member] - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Change in Benefit Obligation
Benefit Obligation, Beginning of Year	$ 11,383	$ 12,365
Interest Cost	288	307	$ 404
Actuarial Losses	(1,402)	60
Benefits and expenses paid	(1,224)	(1,281)
Plan Amendments	68	(68)
Benefit Obligation, End of Year	9,113	11,383	$ 12,365
Funded Status of Plans	(9,113)	(11,383)
Amounts Recognized in Balance Sheet
Short-term Accrued Benefit Obligation	(1,189)	(1,252)
Accrued Postretirement Benefits	(7,924)	(10,131)
Net Amount Recognized	$ (9,113)	$ (11,383)

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Pension and Other Postretirement Benefits - Amounts Related to Other Postretirement Benefit Plans Recognized in Accumulated Other Comprehensive (Loss) Income (Details) - Other postretirement benefit plans [Member] - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract]
Unrecognized Net Actuarial Losses	$ 2,657	$ 4,355
Unrecognized Net Prior Service Credits	(1,649)	(1,924)
Total	$ 1,008	$ 2,431

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Pension and Other Postretirement Benefits - Components of Net Periodic Other Postretirement Benefit Cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Other postretirement benefit plans [Member]
Net periodic other postretirement benefit costs
Interest cost	$ 288	$ 307	$ 404
Amortization of prior service credit	(276)	(276)	(276)
Recognition of actuarial loss	297	307	257
Net Periodic Benefit (Income) Cost	309	338	385
Pension Plan [Member]
Net periodic other postretirement benefit costs
Service cost	1,117	1,685	1,796
Interest cost	22,532	23,188	27,320
Amortization of prior service credit	13	34	50
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment	(2)	(7)	(115)
Recognition of actuarial loss	11,702	13,606	10,359
Net Periodic Benefit (Income) Cost	$ (15,990)	$ (12,336)	$ (14,208)

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Pension and Other Postretirement Benefits (Details 7)	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
U.S. Plans [Member]
Rates of Future Salary Increases [Abstract]
Rate of Future Salary Increase	4.00%	4.00%	4.00%
International Plans [Member]
Rates of Future Salary Increases [Abstract]
Rate of Future Salary Increase	1.50%	1.50%	1.50%
Minimum [Member] | U.S. Plans [Member]
Discount Rate
Discount Rate	4.30%	1.20%	1.60%
Minimum [Member] | International Plans [Member]
Discount Rate
Discount Rate	2.00%	0.30%	0.20%
Rates of Future Salary Increases [Abstract]
Rate of Future Salary Increase	300.00%
Maximum [Member] | U.S. Plans [Member]
Discount Rate
Discount Rate	5.00%	3.00%	2.90%
Maximum [Member] | International Plans [Member]
Discount Rate
Discount Rate	5.00%	3.20%	2.40%

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Pension and Other Postretirement Benefits (Details 8)	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
International Plans [Member]
Rates of Future Salary Increases [Abstract]
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase	1.50%	1.50%
International Plans [Member] | Minimum [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate	0.30%	0.20%	0.40%
Rates of Future Salary Increases [Abstract]
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase			1.80%
Rate of Return on Plans Assets [Abstract]
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets	0.30%	0.20%	0.40%
International Plans [Member] | Maximum [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate	3.20%	2.40%	2.90%
Rates of Future Salary Increases [Abstract]
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase			3.00%
Rate of Return on Plans Assets [Abstract]
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets	5.00%	5.30%	5.30%
U.S. Plans [Member]
Rates of Future Salary Increases [Abstract]
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase	4.00%	4.00%	4.00%
Rate of Return on Plans Assets [Abstract]
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets	6.50%	6.80%	7.00%
U.S. Plans [Member] | Minimum [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate	1.20%	1.60%	2.70%
U.S. Plans [Member] | Maximum [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate	3.00%	2.90%	3.60%

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Pension and Other Postretirement Benefits - Significant Assumptions to Determine the Present Value of Net Benefit Obligations and the Net Periodic Costs (Benefits) (Details)	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Annual assumed rate of increase in per capita cost of covered benefits for postretirement benefit plans
Health Care Cost Trend Rate Assumed for Next Year	6.30%	6.50%	6.80%
Rate to which the Cost Trend Rate Gradually Declines	5.00%	5.00%	5.00%
Year that the Rate Reaches the Rate at which it is assumed to Remain	2027	2027	2027
U.S. Plans [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase	4.00%	4.00%	4.00%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets	6.50%	6.80%	7.00%
International Plans [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase	1.50%	1.50%
Minimum [Member] | U.S. Plans [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate	1.20%	1.60%	2.70%
Minimum [Member] | International Plans [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase			1.80%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate	0.30%	0.20%	0.40%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets	0.30%	0.20%	0.40%
Maximum [Member] | U.S. Plans [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate	3.00%	2.90%	3.60%
Maximum [Member] | International Plans [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase			3.00%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate	3.20%	2.40%	2.90%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets	5.00%	5.30%	5.30%

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Pension and Other Postretirement Benefits Pension and Other Postretirement Benefits - Allocation of Plan Assets (Details)	Jun. 30, 2022	Jun. 30, 2021
Equity Securities [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage	14.00%	20.00%
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage	14.00%
Fixed Income Securities [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage	82.00%	76.00%
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage	79.00%
Other Security Investments [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage	4.00%	4.00%
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage	7.00%

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Pension and Other Postretirement Benefits - Hierarchy of Fair Value of the Benefit Plan Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plans', Fair Value of Plan Assets	$ 695,965	$ 890,104
Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plans', Fair Value of Plan Assets	26,451	43,777
Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plans', Fair Value of Plan Assets	596,013	707,543
NAV [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plans', Fair Value of Plan Assets	73,501	138,784
Corporate Fixed Income Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plans', Fair Value of Plan Assets	379,324	443,948
Corporate Fixed Income Securities [Member] | Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plans', Fair Value of Plan Assets	379,324	443,948
Mutual Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plans', Fair Value of Plan Assets	24,528	48,446
Mutual Funds [Member] | NAV [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plans', Fair Value of Plan Assets	24,528	48,446
Blend Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plans', Fair Value of Plan Assets	48,973	90,338
Blend Funds [Member] | NAV [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plans', Fair Value of Plan Assets	48,973	90,338
Common Stock [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plans', Fair Value of Plan Assets	25,704	42,670
Common Stock [Member] | Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plans', Fair Value of Plan Assets	25,704	42,670
US Government Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plans', Fair Value of Plan Assets	130,064	149,514
US Government Securities [Member] | Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plans', Fair Value of Plan Assets	130,064	149,514
Foreign Government Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plans', Fair Value of Plan Assets	40,729	57,253
Foreign Government Securities [Member] | Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plans', Fair Value of Plan Assets	40,729	57,253
Other Fixed Income Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plans', Fair Value of Plan Assets	20,248	21,107
Other Fixed Income Securities [Member] | Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plans', Fair Value of Plan Assets	20,248	21,107
Other [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plans', Fair Value of Plan Assets	26,395	36,828
Other [Member] | Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plans', Fair Value of Plan Assets	747	1,107
Other [Member] | Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plans', Fair Value of Plan Assets	$ 25,648	$ 35,721

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Pension and Other Postretirement Benefits - Narrative (Details) - USD ($)	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Defined Benefit Plan Disclosure [Line Items]
Eligible Age for Availing Postretirement Healthcare Benefits	65
Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component	$ (16,800,000)	$ (13,700,000)	$ (15,600,000)
Defined Contribution Plan, Cost	14,200,000	13,300,000	14,700,000
Defined Benefit Plan, Non-cash Settlement Charge	2,800,000
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Other Adjustments	(5,000)	149,000
Pension plans contribution [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement	(1,805,000)	(13,966,000)
Accumulated Benefit Obligation for all Defined Benefit Pension Plans	740,400,000	967,500,000
Net Periodic Pension Cost	(15,990,000)	(12,336,000)	(14,208,000)
Special termination benefit charge	277,000	473,000	288,000
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement	(205,000)	(3,190,000)	51,000
Projected Benefit Payments for 2023	53,200,000
Projected Benefit Payments for 2024	54,400,000
Projected Benefit Payments for 2025	54,900,000
Projected Benefit Payments for 2026	54,500,000
Projected Benefit Payments for 2027	54,500,000
Projected Benefit Payments for 2028 through 2032	260,400,000
Accumulated Other Comprehensive Loss Expected to be Recognized in Net Periodic Pension Cost related to Net Actuarial Losses	4,500,000
Estimated Future Employer Contributions	7,900,000
Service Cost	1,117,000	1,685,000	1,796,000
Other postretirement benefit plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Net Periodic Pension Cost	309,000	$ 338,000	$ 385,000
Projected Benefit Payments for 2023	1,200,000
Projected Benefit Payments for 2024	1,100,000
Projected Benefit Payments for 2025	1,000,000
Projected Benefit Payments for 2026	900,000
Projected Benefit Payments for 2027	900,000
Projected Benefit Payments for 2028 through 2032	3,400,000
Accumulated Other Comprehensive Loss Expected to be Recognized in Net Periodic Pension Cost related to Net Actuarial Losses	200,000
Accumulated Other Comprehensive Income Expected to be Recognized in Net Periodic Pension Cost related to Prior Service Credit	(300,000)
Estimated Future Employer Contributions	$ 1,200,000

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Accumulated Other Comprehensive (Loss) Income - Components of and Changes in AOCL (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive (Loss) Income	$ (330,327)
Net current period other comprehensive loss	(87,189)	$ 88,844	$ (46,158)
Accumulated Other Comprehensive (Loss) Income	(413,951)	(330,327)
Post-retirement Benefit Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive (Loss) Income	(213,172)	(232,634)	(222,270)
Net current period other comprehensive loss	4,766	19,462	(10,364)
Other comprehensive loss before reclassifications	(4,163)	9,107	(18,299)
Amounts reclassified from accumulated other comprehensive loss	8,929	10,355	7,935
Accumulated Other Comprehensive (Loss) Income	(208,406)	(213,172)	(232,634)
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive (Loss) Income	(122,428)	(181,027)	(147,595)
Net current period other comprehensive loss	(87,620)	58,599	(33,432)
Other comprehensive loss before reclassifications	(87,620)	58,599	(33,432)
Amounts reclassified from accumulated other comprehensive loss		0	0
Accumulated Other Comprehensive (Loss) Income	(210,048)	(122,428)	(181,027)
Derivatives [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive (Loss) Income	5,273	(3,581)	(3,678)
Net current period other comprehensive loss	(770)	8,854	97
Other comprehensive loss before reclassifications	0	9,255	(582)
Amounts reclassified from accumulated other comprehensive loss	(770)	(401)	679
Accumulated Other Comprehensive (Loss) Income	4,503	5,273	(3,581)
AOCI Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive (Loss) Income	(330,327)	(417,242)	(373,543)
Net current period other comprehensive loss	(83,624)	86,915	(43,699)
Other comprehensive loss before reclassifications	(91,783)	76,961	(52,313)
Amounts reclassified from accumulated other comprehensive loss	8,159	9,954	8,614
Net current period other comprehensive loss	(83,624)	86,915	(43,699)
Accumulated Other Comprehensive (Loss) Income	(413,951)	(330,327)	(417,242)
Accumulated Foreign Currency Adjustment Attributable to Noncontrolling Interest [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive (Loss) Income	(3,982)	(5,909)	(3,450)
Other comprehensive loss before reclassifications	(3,565)	1,927	(2,459)
Net current period other comprehensive loss	(3,565)	1,927	(2,459)
Accumulated Other Comprehensive (Loss) Income	(7,547)	(3,982)	(5,909)
AOCI Attributable to Noncontrolling Interest [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive (Loss) Income	(3,982)	(5,909)	(3,450)
Other comprehensive loss before reclassifications	(3,565)	1,927	(2,459)
Net current period other comprehensive loss	(3,565)	1,927	(2,459)
Accumulated Other Comprehensive (Loss) Income	$ (7,547)	$ (3,982)	$ (5,909)

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Accumulated Other Comprehensive (Loss) Income - Components of and Changes in AOCL (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive (Loss) Income	$ (413,951)	$ (330,327)
Other comprehensive (loss) income, net of tax	(87,189)	88,844	$ (46,158)
Post-retirement Benefit Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive (Loss) Income	(208,406)	(213,172)	(232,634)
Other comprehensive loss before reclassifications	(4,163)	9,107	(18,299)
Amounts reclassified from accumulated other comprehensive loss	8,929	10,355	7,935
Net current period other comprehensive loss	4,766	19,462	(10,364)
Derivatives [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive (Loss) Income	4,503	5,273	(3,581)
Other comprehensive loss before reclassifications	0	9,255	(582)
Amounts reclassified from accumulated other comprehensive loss	(770)	(401)	679
Net current period other comprehensive loss	(770)	8,854	97
AOCI Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive (Loss) Income	(413,951)	(330,327)	(417,242)
Other comprehensive loss before reclassifications	(91,783)	76,961	(52,313)
Other comprehensive (loss) income, net of tax	(83,624)	86,915	(43,699)
Amounts reclassified from accumulated other comprehensive loss	8,159	9,954	8,614
Net current period other comprehensive loss	(83,624)	86,915	(43,699)
Accumulated Foreign Currency Adjustment Attributable to Noncontrolling Interest [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive (Loss) Income	(7,547)	(3,982)	(5,909)
Other comprehensive loss before reclassifications	(3,565)	1,927	(2,459)
Other comprehensive (loss) income, net of tax	(3,565)	1,927	(2,459)
AOCI Attributable to Noncontrolling Interest [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive (Loss) Income	(7,547)	(3,982)	(5,909)
Other comprehensive loss before reclassifications	(3,565)	1,927	(2,459)
Other comprehensive (loss) income, net of tax	(3,565)	1,927	(2,459)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Interest Rate Swap [Member] | Derivatives [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Interest Income (Expense), Net	$ (1,020)	$ 4,082	$ 2,444

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Accumulated Other Comprehensive Loss - Reclassifications Out of AOCL (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Currency Exchange Contracts	$ 14,507	$ 8,867	$ 14,862
Recognition of Actuarial Losses	(11,830)	(13,765)	(10,478)
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, Tax	(2,901)	(3,410)	(2,543)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivatives [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total Before Tax	(1,020)	4,058	899
Net of tax	(770)	(401)	679
Reclassification out of Accumulated Other Comprehensive Income [Member] | Post-retirement Benefit Plans [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amortization of Transition Obligations	94	94	88
Amortization of Prior Service Credit	(263)	(242)	(226)
Recognition of Actuarial Losses	11,999	13,913	10,616
Total Before Tax	11,830	13,765	10,478
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, Tax	(2,901)	(3,410)	(2,543)
Net of tax	8,929	10,355	7,935
Reclassification out of Accumulated Other Comprehensive Income [Member] | Currency Exchange Contracts [Member] | Derivatives [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Currency Exchange Contracts	$ 0	$ (24)	$ (1,545)

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Accumulated Other Comprehensive (Loss) Income Accumulated Other Comprehensive (Loss) Income - Income Tax Allocated to Each Component of Other Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Accumulated Other Comprehensive (Loss) IncomeAccumulated Other Comprehensive (Loss) Income - Income Tax Allocated to Each Component of Other Comprehensive Income [Abstract]
Reclassification of unrealized (gain) loss on expired derivatives designated and qualified as cash flow hedges	$ 770	$ 401	$ (679)
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, Tax	250	(4,459)	(220)
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax	1,020	(4,058)	(899)
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax	(3,894)	11,901	(23,999)
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, Tax	(269)	(2,794)	5,700
Unrecognized net pension and other postretirement benefit (loss) gain	(4,163)	9,107	(18,299)
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, before Tax	11,830	13,765	10,478
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, Tax	(2,901)	(3,410)	(2,543)
Reclassification of net pension and other postretirement benefit loss	8,929	10,355	7,935
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss), before Reclassification and Tax	(91,012)	61,038	(35,936)
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax	(173)	(510)	45
Foreign currency translation adjustments	(91,185)	60,528	(35,891)
Other Comprehensive Income (Loss), before Tax	(84,096)	103,026	(49,329)
Other Comprehensive Income (Loss), Tax	(3,093)	(14,182)	3,171
Other comprehensive (loss) income, net of tax	(87,189)	88,844	(46,158)
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, before Tax		(12,264)	771
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax		(3,009)	189
Unrealized gain (loss) on derivatives designated and qualified as cash flow hedges	$ 0	$ 9,255	$ (582)

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Restructuring and Related Charges and Asset Impairment Charges - Restructuring Reserve by Type of Cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Restructuring Reserve [Abstract]
Expense	$ (1,200)	$ 29,600	$ 69,200
Restructuring and Related Cost, Expected Cost	85,000
Metal Cutting [Member]
Restructuring Reserve [Abstract]
Beginning Balance	29,723	47,366
Expense	(1,243)	29,581
Asset Write-Down	(3,385)	(5,664)
Translation	(1,772)	2,447
Cash Expenditures	(15,404)	(44,007)
Ending Balance	7,919	29,723	47,366
Metal Cutting [Member] | Severance [Member]
Restructuring Reserve [Abstract]
Beginning Balance	29,723	47,303
Expense	(4,628)	23,917
Asset Write-Down	0	0
Translation	(1,772)	2,445
Cash Expenditures	(15,404)	(43,942)
Ending Balance	7,919	29,723	47,303
Metal Cutting [Member] | Facilities [Member]
Restructuring Reserve [Abstract]
Beginning Balance	0	0
Expense	3,385	5,664
Asset Write-Down	(3,385)	(5,664)
Translation	0	0
Cash Expenditures	0	0
Ending Balance	0	0	0
Metal Cutting [Member] | Other [Member]
Restructuring Reserve [Abstract]
Beginning Balance	0	63
Expense	0	0
Asset Write-Down	0	0
Translation	0	2
Cash Expenditures	0	(65)
Ending Balance	$ 0	$ 0	$ 63

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Restructuring and Related Charges and Asset Impairment Charges - Restructuring and Related Charges Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Restructuring and Related Costs and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost	$ 85,000
Restructuring and Related Cost, Incurred Cost	4,200	$ 40,400	$ 83,300
Restructuring Charges	(1,200)	29,600	69,200
Restructuring Charges Related to Inventory Disposals		500	900
Restructuring reserve, current	6,019	19,851
Restructuring Reserve, Noncurrent	1,900	9,900
Metal Cutting [Member]
Restructuring and Related Costs and Reserve [Line Items]
Restructuring and Related Cost, Incurred Cost	3,600	35,600	73,700
Restructuring Charges	(1,243)	29,581
Restructuring Reserve	7,919	29,723	47,366
Infrastructure [Member]
Restructuring and Related Costs and Reserve [Line Items]
Restructuring and Related Cost, Incurred Cost	600	4,800	8,800
FY20 Restructuring Actions [Member]
Restructuring and Related Costs and Reserve [Line Items]
Restructuring and Related Cost, Cost Incurred to Date	54,800
FY20 Restructuring Actions [Member] | Metal Cutting [Member]
Restructuring and Related Costs and Reserve [Line Items]
Restructuring and Related Cost, Cost Incurred to Date	46,600
FY20 Restructuring Actions [Member] | Infrastructure [Member]
Restructuring and Related Costs and Reserve [Line Items]
Restructuring and Related Cost, Cost Incurred to Date	8,300
FY21 Restructuring Actions [Member]
Restructuring and Related Costs and Reserve [Line Items]
Restructuring and Related Cost, Cost Incurred to Date	86,400
FY21 Restructuring Actions [Member] | Metal Cutting [Member]
Restructuring and Related Costs and Reserve [Line Items]
Restructuring and Related Cost, Cost Incurred to Date	78,100
FY21 Restructuring Actions [Member] | Infrastructure [Member]
Restructuring and Related Costs and Reserve [Line Items]
Restructuring and Related Cost, Cost Incurred to Date	8,300
Cost of Sales [Member]
Restructuring and Related Costs and Reserve [Line Items]
Restructuring Related Charges	$ 5,500	$ 10,800	$ 14,100

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Financial Instruments (Details) - USD ($) $ in Millions	Jun. 30, 2022	Jun. 30, 2021
Fair Value [Line Items]
Debt Instrument, Fair Value Disclosure	$ 536.1	$ 644.2

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Stock-Based Compensation - Changes in Stock Options (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Jun. 30, 2022 USD ($) $ / shares shares
Changes in stock options
Options outstanding, Beginning of Period | shares	315,012
Options, Exercised | shares	(6,916)
Options, Lapsed and Forfeited | shares	(36,253)
Options outstanding, End of Period | shares	271,843
Options vested and expected to vest, June 30, 2019 | shares	271,843
Options exercisable, June 30, 2019 | shares	271,843
Weighted Average Exercise Price, Options outstanding, Beginning of Period | $ / shares	$ 37.83
Weighted Average Exercise Price, Exercised | $ / shares	31.69
Weighted Average Exercise Price, Lapsed and Forfeited | $ / shares	41.84
Weighted Average Exercise Price, Options outstanding, End of Period | $ / shares	37.45
Weighted Average Exercise Price, Option vested and expected to vest, June 30, 2019 | $ / shares	37.45
Weighted Average Exercise Price, Options exercisable, June 30, 2019 | $ / shares	$ 37.45
Weighted Average Remaining Life, Options outstanding, June 30, 2019	1 year 10 months 24 days
Weighted Average Remaining Life, Options vested and expected to vest, June 30, 2019	1 year 10 months 24 days
Weighted Average Remaining Life, Options exercisable, June 30, 2019	1 year 10 months 24 days
Aggregate Intrinsic value, Options outstanding, June 30, 2019 | $	$ 33
Aggregate Intrinsic Value, Options vested and expected to vest, June 30, 2019 | $	33
Aggregate Intrinsic Value, Options exercisable, June 30, 2019 | $	$ 33

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Stock-Based Compensation - Changes in Restricted Stock Units (Details) - $ / shares	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Performance Shares [Member]
Changes in Restricted Stock Units
Unvested Performance Vesting and Time Vesting Restricted Stock Units, Beginning of Period, Shares	500,477
Granted, Shares	108,234
Vested, Shares	(38,620)
Performance metric adjustments, net	(150,711)
Forfeited, Shares		(68,425)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value		$ 33.43
Unvested Performance Vesting and Time Vesting Restricted Stock Units End of Period	350,955	500,477
Weighted Average Fair Value, Unvested Restricted Stock Units, Beginning of Period	$ 32.53
Weighted Average Fair Value, Granted	36.70
Weighted Average Fair Value, Vested	39.69
Performance Metric Not Achieved, Weighted Average Exercise Price	31.18
Weighted Average Fair Value, Unvested Restricted Stock Units, End of Period	$ 33.44	$ 32.53
Restricted Stock Units - Time Vesting [Member]
Changes in Restricted Stock Units
Unvested Performance Vesting and Time Vesting Restricted Stock Units, Beginning of Period, Shares	1,332,740
Granted, Shares	532,638
Vested, Shares	(534,462)
Forfeited, Shares		(117,020)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value		$ 32.79
Unvested Performance Vesting and Time Vesting Restricted Stock Units End of Period	1,213,896	1,332,740
Weighted Average Fair Value, Unvested Restricted Stock Units, Beginning of Period	$ 31.72
Weighted Average Fair Value, Granted	36.51
Weighted Average Fair Value, Vested	32.14
Weighted Average Fair Value, Unvested Restricted Stock Units, End of Period	$ 33.53	$ 31.72

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Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
International Plans [Member]
Stock-Based Compensation (Textual) [Abstract]
Rate of Future Salary Increase	1.50%	1.50%	1.50%
Minimum [Member] | International Plans [Member]
Stock-Based Compensation (Textual) [Abstract]
Rate of Future Salary Increase	300.00%
Stock Option [Member]
Stock-Based Compensation (Textual) [Abstract]
Tax benefits resulting from stock-based compensation deductions in excess of amounts reported for financial reporting purposes	$ 0.2	$ 0.7	$ 0.0
Cash received from the exercise of capital stock option	0.2	6.6	0.9
Share-based Payment Arrangement, Exercise of Option, Tax Benefit	0.0		0.0
Total Intrinsic value of options exercised	0.1	2.4	0.3
Restricted Stock Units - Time Vesting Performance Vesting [Member]
Stock-Based Compensation (Textual) [Abstract]
Compensation expense related to stock option	20.1	$ 23.9	$ 15.3
Unrecognized compensation cost	$ 23.3
Unrecognized compensation costs, weighted average period	1 year 8 months 12 days
Performance Shares [Member]
Stock-Based Compensation (Textual) [Abstract]
Performance metric adjustments, net	(150,711)

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Environmental Matters (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021
Environmental Remediation Obligations [Abstract]
Accrual for Potential Environmental Loss Contingencies	$ 12,500	$ 14,700
Accrued Environmental Loss Contingencies, Current	7,938	2,561
Environmental Exit Cost [Line Items]
Accrued Environmental Loss Contingencies, Current	$ 7,938	$ 2,561

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Segment Data (Details) $ in Thousands	12 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)
Segment Reporting Information [Line Items]
Property, Plant and Equipment, Net	$ 1,002,041	$ 1,055,135
Sales	2,012,456	1,841,441	$ 1,885,305
Total operating income	218,140	102,168	22,252
Interest expense	25,914	46,375	35,154
Other income, net	(14,507)	(8,867)	(14,862)
Income before income taxes	206,733	64,660	1,960
Depreciation and Amortization	131,678	126,488	119,860
Assets	2,573,524	2,665,761	3,037,591
Capital Expenditures	$ 96,924	127,302	244,151
Sales To a Single Customer Did Not Aggretage More Than	0.05
Industrial [Member]
Segment Reporting Information [Line Items]
Sales	$ 1,227,273	1,150,746	1,178,053
Total operating income	121,386	45,855	985
Depreciation and Amortization	87,986	81,796	74,664
Assets	1,469,835	1,532,177	1,452,131
Capital Expenditures	64,055	103,812	195,167
Infrastructure [Member]
Segment Reporting Information [Line Items]
Sales	785,183	690,695	707,252
Total operating income	98,871	59,461	23,113
Depreciation and Amortization	43,691	44,661	45,176
Assets	768,226	698,766	748,424
Capital Expenditures	32,869	23,490	48,984
Corporate [Member]
Segment Reporting Information [Line Items]
Total operating income	(2,117)	(3,148)	(1,846)
Depreciation and Amortization	1	31	20
Assets	$ 335,463	$ 434,818	$ 837,036

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Segment Data - Geographic Sales Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
External Sales and Long-Lived Assets [Line Items]
Sales from Other country did not exceed	2.00%
Property, Plant and Equipment, Net	$ 1,002,041	$ 1,055,135
External Sales [Abstract]
Sales	2,012,456	1,841,441	$ 1,885,305
Total Long-Lived Assets [Abstract]
Long-Lived Assets	$ 1,002,041	$ 1,055,135	$ 1,038,271
Americas [Member]
External Sales and Long-Lived Assets [Line Items]
Revenues, percent	48.00%	45.00%	49.00%
UNITED STATES
External Sales [Abstract]
Sales	$ 797,768	$ 692,106	$ 778,054
Total Long-Lived Assets [Abstract]
Long-Lived Assets	585,003	611,724	607,222
GERMANY
External Sales [Abstract]
Sales	262,764	260,792	248,796
Total Long-Lived Assets [Abstract]
Long-Lived Assets	195,325	218,250	210,674
CHINA
External Sales [Abstract]
Sales	234,997	242,815	214,364
Total Long-Lived Assets [Abstract]
Long-Lived Assets	92,315	97,404	92,658
INDIA
External Sales [Abstract]
Sales	108,695	94,966	81,366
Total Long-Lived Assets [Abstract]
Long-Lived Assets	45,146	19,144	20,508
ITALY
External Sales [Abstract]
Sales	67,930	59,955	52,699
CANADA
External Sales [Abstract]
Sales	94,956	79,891	90,247
Total Long-Lived Assets [Abstract]
Long-Lived Assets	18,478	21,790	22,249
FRANCE
External Sales [Abstract]
Sales	47,218	45,356	45,817
UNITED KINGDOM
External Sales [Abstract]
Sales	30,686	28,464	33,305
ISRAEL
Total Long-Lived Assets [Abstract]
Long-Lived Assets	26,864	44,504	44,673
Other
External Sales [Abstract]
Sales	367,442	337,096	340,657
Total Long-Lived Assets [Abstract]
Long-Lived Assets	$ 38,910	$ 42,319	$ 40,287
EMEA [Member]
External Sales and Long-Lived Assets [Line Items]
Revenues, percent	30.00%	31.00%	30.00%
Asia Pacific [Member]
External Sales and Long-Lived Assets [Line Items]
Revenues, percent	22.00%	24.00%	21.00%
Metal Cutting [Member]
External Sales [Abstract]
Sales	$ 1,227,273	$ 1,150,746	$ 1,178,053
Metal Cutting [Member] | Americas [Member]
External Sales and Long-Lived Assets [Line Items]
Revenues, percent	41.00%	38.00%	42.00%
Metal Cutting [Member] | EMEA [Member]
External Sales and Long-Lived Assets [Line Items]
Revenues, percent	37.00%	39.00%	37.00%
Metal Cutting [Member] | Asia Pacific [Member]
External Sales and Long-Lived Assets [Line Items]
Revenues, percent	22.00%	23.00%	21.00%
Infrastructure [Member]
External Sales [Abstract]
Sales	$ 785,183	$ 690,695	$ 707,252
Infrastructure [Member] | Americas [Member]
External Sales and Long-Lived Assets [Line Items]
Revenues, percent	59.00%	57.00%	62.00%
Infrastructure [Member] | EMEA [Member]
External Sales and Long-Lived Assets [Line Items]
Revenues, percent	18.00%	19.00%	18.00%
Infrastructure [Member] | Asia Pacific [Member]
External Sales and Long-Lived Assets [Line Items]
Revenues, percent	23.00%	24.00%	20.00%

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Segment Data Segment Data - Sales by End Market (Details)	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
General Engineering [Member]
Revenue from External Customer [Line Items]
Revenues, percent	47.00%	47.00%	46.00%
Transportation [Member]
Revenue from External Customer [Line Items]
Revenues, percent	17.00%	19.00%	17.00%
Energy [Member]
Revenue from External Customer [Line Items]
Revenues, percent	16.00%	15.00%	16.00%
Earthworks [Member]
Revenue from External Customer [Line Items]
Revenues, percent	14.00%	14.00%	14.00%
Aerospace and defense [Member]
Revenue from External Customer [Line Items]
Revenues, percent	6.00%	5.00%	7.00%
Metal Cutting [Member] | General Engineering [Member]
Revenue from External Customer [Line Items]
Revenues, percent	56.00%	54.00%	53.00%
Metal Cutting [Member] | Transportation [Member]
Revenue from External Customer [Line Items]
Revenues, percent	27.00%	30.00%	27.00%
Metal Cutting [Member] | Energy [Member]
Revenue from External Customer [Line Items]
Revenues, percent	8.00%	8.00%	8.00%
Metal Cutting [Member] | Aerospace and defense [Member]
Revenue from External Customer [Line Items]
Revenues, percent	9.00%	8.00%	12.00%
Infrastructure [Member] | General Engineering [Member]
Revenue from External Customer [Line Items]
Revenues, percent	34.00%	35.00%	34.00%
Infrastructure [Member] | Energy [Member]
Revenue from External Customer [Line Items]
Revenues, percent	29.00%	26.00%	28.00%
Infrastructure [Member] | Earthworks [Member]
Revenue from External Customer [Line Items]
Revenues, percent	37.00%	39.00%	38.00%

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Segment Data - Narrative (Details)	12 Months Ended
	Jun. 30, 2022 Segment
Segment Reporting [Abstract]
Operations in Number of Global Reporting Segments	2

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Selected Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
Quarterly Financial Data [Abstract]
Sales	$ 2,012,456	$ 1,841,441	$ 1,885,305
Gross profit	647,977	552,478	529,471
Net income attributable to Kennametal	$ 144,623	$ 54,434	$ (5,661)
Basic earnings per share attributable to Kennametal	$ 1.74	$ 0.65	$ (0.07)
Diluted earnings per share attributable to Kennametal	$ 1.72	$ 0.65	$ (0.07)

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Schedule II Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2020
SEC Schedule, 12-09, Allowance, Credit Loss [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Year	$ 9,734	$ 9,430	$ 10,083
Charges to Costs and Expenses	1,242	2,602	2,300
Recoveries	(163)	(635)	(40)
Other Adjustments	(321)	400	(287)
Deductions from Reserves	(1,396)	(3,333)	(2,706)
Balance at End of Year	9,422	9,734	9,430
Deferred Tax Asset Valuation Allowance [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Year	21,263	16,654	14,614
Charges to Costs and Expenses	371	4,115	4,213
Recoveries	(4,459)	0	0
Other Adjustments	42	494	(1,216)
Deductions from Reserves	(2,832)	0	(957)
Balance at End of Year	$ 14,385	$ 21,263	$ 16,654