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Restructuring and Related Charges | 9 Months Ended
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Mar. 31, 2015
Restructuring Charges [Abstract] |
RESTRUCTURING AND RELATED CHARGES | RESTRUCTURING AND RELATED CHARGES AND ASSET IMPAIRMENT CHARGES Restructuring and Related Charges Phase 1 As previously set forth in the 2014 Annual Report on Form 10-K, 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 $44.2 million have been recorded for these Phase 1 programs through March 31, 2015: $27.1 million in Industrial, $14.9 million in Infrastructure, and $2.2 million in Corporate. Phase 2 As previously set forth in the report for the quarterly period ended December 31, 2014 on Form 10-Q, 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 75 percent Industrial and 25 percent Infrastructure. Total restructuring and related charges since inception of $12.0 million have been recorded for these Phase 2 programs through March 31, 2015: $6.1 million in Industrial, $5.7 million in Infrastructure, and $0.2 million in Corporate. Combined During the nine months ended March 31, 2015, we recognized total restructuring and related charges of $37.1 million, of this amount, restructuring charges totaled $24.4 million, of which $0.3 million were charges related to inventory disposals and were recorded in cost of goods sold. Total restructuring-related charges of $6.5 million were recorded in cost of goods sold and $6.2 million in operating expense for the nine months ended March 31, 2015. During the nine months ended March 31, 2014, we recorded restructuring charges of $5.0 million. The restructuring accrual is recorded in other current liabilities in our condensed 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 |  | March 31, 2015
Industrial |  |  |  |  |  |  |  |  |  |  |  |  |
Severance | $ | 5,815 |  |  | $ | 11,565 |  |  | $ | — |  |  | $ | — |  |  | $ | (364 | ) |  | $ | (7,312 | ) |  | $ | 9,704 |
Facilities | 444 |  |  | 1,307 |  |  | (1,261 | ) |  | — |  |  | (31 | ) |  | (459 | ) |  | — |
Other | 67 |  |  | 37 |  |  | — |  |  | — |  |  | (2 | ) |  | (102 | ) |  | — |
Total Industrial | $ | 6,326 |  |  | $ | 12,909 |  |  | $ | (1,261 | ) |  | $ | — |  |  | $ | (397 | ) |  | $ | (7,873 | ) |  | $ | 9,704 |
Infrastructure |  |  |  |  |  |  |  |  |  |  |  |  |
Severance | $ | 2,458 |  |  | $ | 10,813 |  |  | $ | — |  |  | $ | (459 | ) |  | $ | (350 | ) |  | $ | (6,749 | ) |  | $ | 5,713 |
Facilities | 190 |  |  | 661 |  |  | (522 | ) |  | — |  |  | (16 | ) |  | (279 | ) |  | 34 |
Other | 28 |  |  | 6 |  |  | — |  |  | — |  |  | (3 | ) |  | (31 | ) |  | — |
Total Infrastructure | $ | 2,676 |  |  | $ | 11,480 |  |  | $ | (522 | ) |  | $ | (459 | ) |  | $ | (369 | ) |  | $ | (7,059 | ) |  | $ | 5,747 |
Total | $ | 9,002 |  |  | $ | 24,389 |  |  | $ | (1,783 | ) |  | $ | (459 | ) |  | $ | (766 | ) |  | $ | (14,932 | ) |  | $ | 15,451 |
(2) Special termination benefit charge for one of our U.S.-based benefit pension plans resulting from a plant closure - see Note 10.
(in thousands) | June 30, 2013 |  | Expense |  | Asset Write-Down |  | Other |  | Translation |  | Cash Expenditures |  | March 31, 2014
Industrial |  |  |  |  |  |  |  |  |  |  |  |  |
Severance | $ | — |  |  | $ | 2,235 |  |  | $ | — |  |  | $ | — |  |  | $ | 2 |  |  | $ | (1,074 | ) |  | $ | 1,163 |
Facilities | — |  |  | 325 |  |  | — |  |  | — |  |  | 3 |  |  | — |  |  | 328 |
Other | — |  |  | 76 |  |  | — |  |  | — |  |  | 1 |  |  | (1 | ) |  | 76 |
Total Industrial | $ | — |  |  | $ | 2,636 |  |  | $ | — |  |  | $ | — |  |  | $ | 6 |  |  | $ | (1,075 | ) |  | $ | 1,567 |
Infrastructure |  |  |  |  |  |  |  |  |  |  |  |  |
Severance | $ | — |  |  | $ | 2,016 |  |  | $ | — |  |  | $ | — |  |  | $ | 2 |  |  | $ | (969 | ) |  | $ | 1,049 |
Facilities | — |  |  | 293 |  |  | — |  |  | — |  |  | 3 |  |  | — |  |  | 296 |
Other | — |  |  | 68 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 68 |
Total Infrastructure | $ | — |  |  | $ | 2,377 |  |  | $ | — |  |  | $ | — |  |  | $ | 5 |  |  | $ | (969 | ) |  | $ | 1,413 |
Total | $ | — |  |  | $ | 5,013 |  |  | $ | — |  |  | $ | — |  |  | $ | 11 |  |  | $ | (2,044 | ) |  | $ | 2,980 |
Asset impairment Charges See discussion on Infrastructure segment goodwill and other intangible asset impairment charges in Note 18.

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- Definition The entire disclosure of costs incurred for restructuring including, but not limited to, exit and disposal activities, remediation, implementation, integration, asset impairment, and charges against earnings from the write-down of assets. + References No definition available. + Details
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