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Restructuring and Related Charges and Asset Impairment Charges | 12 Months Ended
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Jun. 30, 2015
Restructuring Charges [Abstract] |
RESTRUCTURING AND RELATED CHARGES AND ASSET IMPAIRMENT CHARGES | RESTRUCTURING AND RELATED CHARGES AND ASSET IMPAIRMENT CHARGES Restructuring and Related Charges Phase 1 We are implementing restructuring actions in conjunction with our Phase 1 restructuring program to achieve synergies across Kennametal as a result of the TMB acquisition by consolidating operations among both organizations, reducing administrative overhead and leveraging the supply chain. These restructuring actions are expected to be completed by the end of fiscal 2016 and are anticipated to be mostly cash expenditures. The total pre-tax charges for Phase 1 programs are expected to be in the range of $55 million to $60 million, which is expected to be approximately 50 percent Industrial and 50 percent Infrastructure. Total restructuring and related charges since inception of $51.9 million have been recorded for these Phase 1 programs through June 30, 2015: $29.7 million in Industrial, $20.0 million in Infrastructure, and $2.2 million in Corporate. Phase 2 We are implementing restructuring actions in conjunction with Phase 2 to streamline the Company's cost structure. These initiatives are expected to enhance operational efficiencies through the rationalization of certain manufacturing facilities as well as other employment and cost reduction programs. These restructuring actions are expected to be completed by December 2016 and are anticipated to be mostly cash expenditures. The total pre-tax charges for Phase 2 programs are expected to be in the range of $90 million to $100 million, which is expected to be approximately 85 percent Industrial and 15 percent Infrastructure. Total restructuring and related charges since inception of $23.6 million have been recorded for these Phase 2 programs through June 30, 2015: $14.2 million in Industrial, $8.2 million in Infrastructure, and $1.2 million in Corporate. Phase 3 We are implementing restructuring actions in conjunction with Phase 3. These initiatives are expected to enhance operational efficiencies through an enterprise-wide cost reduction program as well as the consolidation of certain manufacturing facilities. These restructuring actions are expected to be completed by March 2017 and are anticipated to be mostly cash expenditures. The total pre-tax charges for Phase 3 programs are expected to be in the range of $40 million to $45 million, which is expected to be approximately 50 percent Industrial and 50 percent Infrastructure. Total restructuring and related charges since inception of $1.6 million have been recorded in Infrastructure for these Phase 3 programs through June 30, 2015. Combined During 2015, we recognized total restructuring and related charges of $58.1 million, of this amount, restructuring charges totaled $42.1 million, of which $1.5 million were charges related to inventory disposals and were recorded in cost of goods sold. Total restructuring-related charges of $8.2 million were recorded in cost of goods sold and $7.8 million in operating expense during 2015. During 2014, we recognized total restructuring and related charges of $19.1 million, of this amount, restructuring charges totaled $17.8 million, of which $0.2 million were charges related to inventory disposals and were recorded in cost of goods sold. Total restructuring-related charges of $1.2 million were recorded in cost of goods sold and $0.1 million in operating expense during 2014. During 2013, we recorded no restructuring and related charges. The restructuring accrual is recorded in other current liabilities in our consolidated balance sheet and the amount attributable to each segment is as follows:
(in thousands) | June 30, 2014 |  | Expense |  | Asset Write-Down |  | Other (2) |  | Translation |  | Cash Expenditures |  | June 30, 2015
Industrial |  |  |  |  |  |  |  |  |  |  |  |  |
Severance | $ | 5,815 |  |  | $ | 20,713 |  |  | $ | — |  |  | $ | — |  |  | $ | (328 | ) |  | $ | (12,744 | ) |  | $ | 13,456 |
Facilities | 444 |  |  | 2,277 |  |  | (2,231 | ) |  | — |  |  | (15 | ) |  | (475 | ) |  | — |
Other | 67 |  |  | 77 |  |  | — |  |  | — |  |  | (2 | ) |  | (114 | ) |  | 28 |
Total Industrial | $ | 6,326 |  |  | $ | 23,067 |  |  | $ | (2,231 | ) |  | $ | — |  |  | $ | (345 | ) |  | $ | (13,333 | ) |  | $ | 13,484 |
Infrastructure |  |  |  |  |  |  |  |  |  |  |  |  |
Severance | $ | 2,458 |  |  | $ | 14,027 |  |  | $ | — |  |  | $ | (459 | ) |  | $ | (223 | ) |  | $ | (8,630 | ) |  | $ | 7,173 |
Facilities | 190 |  |  | 4,969 |  |  | (3,638 | ) |  | — |  |  | (32 | ) |  | (1,358 | ) |  | 131 |
Other | 28 |  |  | — |  |  | — |  |  | — |  |  | (3 | ) |  | (25 | ) |  | — |
Total Infrastructure | 2,676 |  |  | 18,996 |  |  | (3,638 | ) |  | (459 | ) |  | (258 | ) |  | (10,013 | ) |  | 7,304 |
Total | $ | 9,002 |  |  | $ | 42,063 |  |  | $ | (5,869 | ) |  | $ | (459 | ) |  | $ | (603 | ) |  | $ | (23,346 | ) |  | $ | 20,788 |
(2) Special termination benefit charge for one of our U.S.-based benefit pension plans resulting from a plant closure - see Note 12.
(in thousands) | June 30, 2013 |  | Expense |  | Asset Write-Down |  | Other |  | Translation |  | Cash Expenditures |  | June 30, 2014
Industrial |  |  |  |  |  |  |  |  |  |  |  |  |
Severance | $ | — |  |  | $ | 9,536 |  |  | $ | — |  |  | $ | — |  |  | $ | 11 |  |  | $ | (3,732 | ) |  | $ | 5,815 |
Facilities | — |  |  | 2,829 |  |  | (2,395 | ) |  | — |  |  | 14 |  |  | (4 | ) |  | 444 |
Other | — |  |  | 136 |  |  | — |  |  | — |  |  | 13 |  |  | (82 | ) |  | 67 |
Total Industrial | $ | — |  |  | $ | 12,501 |  |  | $ | (2,395 | ) |  | $ | — |  |  | $ | 38 |  |  | $ | (3,818 | ) |  | $ | 6,326 |
Infrastructure |  |  |  |  |  |  |  |  |  |  |  |  |
Severance | $ | — |  |  | $ | 4,034 |  |  | $ | — |  |  | $ | — |  |  | $ | 4 |  |  | $ | (1,580 | ) |  | $ | 2,458 |
Facilities | — |  |  | 1,197 |  |  | (1,013 | ) |  | — |  |  | 8 |  |  | (2 | ) |  | 190 |
Other | — |  |  | 57 |  |  | — |  |  | — |  |  | 6 |  |  | (35 | ) |  | 28 |
Total Infrastructure | — |  |  | 5,288 |  |  | (1,013 | ) |  | — |  |  | 18 |  |  | (1,617 | ) |  | 2,676 |
Total | $ | — |  |  | $ | 17,789 |  |  | $ | (3,408 | ) |  | $ | — |  |  | $ | 56 |  |  | $ | (5,435 | ) |  | $ | 9,002 |
Asset impairment Charges See discussion on Infrastructure segment goodwill and other intangible asset impairment charges in Note 2.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 5.P.4) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 5.P.3) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140864-122747 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section P -Subsection 3, 4 + Details
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- References No definition available. + Details
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