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Restructuring and Related Charges | 6 Months Ended
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Dec. 31, 2015
Restructuring Charges [Abstract] |
RESTRUCTURING AND RELATED 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 $57.9 million have been recorded for these Phase 1 programs through December 31, 2015: $30.5 million in Industrial, $25.0 million in Infrastructure and $2.4 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 2018 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 $38.1 million have been recorded for these Phase 2 programs through December 31, 2015: $22.3 million in Industrial, $10.6 million in Infrastructure and $5.2 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 $5.2 million have been recorded for these Phase 3 programs through December 31, 2015: $2.0 million in Industrial, $1.6 million in Infrastructure and $1.6 million in Corporate. Combined We have recorded restructuring and related charges of $8.9 million and $12.9 million for the three months ended December 31, 2015 and 2014, respectively. Of these amounts, restructuring charges totaled $3.5 million and $6.7 million, of which benefits of $0.3 million and $0.1 million were related to inventory and were recorded in cost of goods sold, respectively. Restructuring-related charges of $2.0 million and $2.8 million were recorded in cost of goods sold and $3.4 million and $3.4 million in operating expense for the three months ended December 31, 2015 and 2014, respectively. We have recorded restructuring and related charges of $24.0 million and $20.4 million for the six months ended December 31, 2015 and 2014, respectively. Of these amounts, restructuring charges totaled $12.6 million and $8.6 million, of which a benefit of $0.3 million and expense of $0.2 million were related to inventory and were recorded in cost of goods sold, respectively. Restructuring-related charges of $3.6 million and $6.3 million were recorded in cost of goods sold and $7.8 million and $5.5 million in operating expense for the six months ended December 31, 2015 and 2014, respectively. 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, 2015 |  | Expense |  | Asset Write-Down |  | Translation |  | Cash Expenditures |  | December 31, 2015
Industrial |  |  |  |  |  |  |  |  |  |  |
Severance | $ | 13,456 |  |  | $ | 7,383 |  |  | $ | — |  |  | $ | (282 | ) |  | $ | (12,242 | ) |  | $ | 8,315 |
Facilities | — |  |  | 1,002 |  |  | (998 | ) |  | — |  |  | (4 | ) |  | — |
Other | 28 |  |  | 48 |  |  | — |  |  | (1 | ) |  | (49 | ) |  | 26 |
Total Industrial | $ | 13,484 |  |  | $ | 8,433 |  |  | $ | (998 | ) |  | $ | (283 | ) |  | $ | (12,295 | ) |  | $ | 8,341 |
Infrastructure |  |  |  |  |  |  |  |  |  |  |
Severance | $ | 7,173 |  |  | $ | 2,082 |  |  | $ | — |  |  | $ | (80 | ) |  | $ | (3,453 | ) |  | $ | 5,722 |
Facilities | 131 |  |  | 2,109 |  |  | (1,963 | ) |  | — |  |  | (244 | ) |  | 33 |
Other | — |  |  | 13 |  |  | — |  |  | — |  |  | (7 | ) |  | 6 |
Total Infrastructure | $ | 7,304 |  |  | $ | 4,204 |  |  | $ | (1,963 | ) |  | $ | (80 | ) |  | $ | (3,704 | ) |  | $ | 5,761 |
Total | $ | 20,788 |  |  | $ | 12,637 |  |  | $ | (2,961 | ) |  | $ | (363 | ) |  | $ | (15,999 | ) |  | $ | 14,102 |
(in thousands) | June 30, 2014 |  | Expense |  | Asset Write-Down |  | Other (2) |  | Translation |  | Cash Expenditures |  | December 31, 2014
Industrial |  |  |  |  |  |  |  |  |  |  |  |  |
Severance | $ | 5,815 |  |  | $ | 3,361 |  |  | $ | — |  |  | $ | — |  |  | $ | (282 | ) |  | $ | (4,291 | ) |  | $ | 4,603 |
Facilities | 444 |  |  | 489 |  |  | (489 | ) |  | — |  |  | (22 | ) |  | (389 | ) |  | 33 |
Other | 67 |  |  | 21 |  |  | — |  |  | — |  |  | (2 | ) |  | (86 | ) |  | — |
Total Industrial | $ | 6,326 |  |  | $ | 3,871 |  |  | $ | (489 | ) |  | $ | — |  |  | $ | (306 | ) |  | $ | (4,766 | ) |  | $ | 4,636 |
Infrastructure |  |  |  |  |  |  |  |  |  |  |  |  |
Severance | $ | 2,458 |  |  | $ | 4,177 |  |  | $ | — |  |  | $ | (459 | ) |  | $ | (312 | ) |  | $ | (4,747 | ) |  | $ | 1,117 |
Facilities | 190 |  |  | 542 |  |  | (541 | ) |  | — |  |  | (25 | ) |  | (166 | ) |  | — |
Other | 28 |  |  | 23 |  |  | — |  |  | — |  |  | (3 | ) |  | (48 | ) |  | — |
Total Infrastructure | $ | 2,676 |  |  | $ | 4,742 |  |  | $ | (541 | ) |  | $ | (459 | ) |  | $ | (340 | ) |  | $ | (4,961 | ) |  | $ | 1,117 |
Total | $ | 9,002 |  |  | $ | 8,613 |  |  | $ | (1,030 | ) |  | $ | (459 | ) |  | $ | (646 | ) |  | $ | (9,727 | ) |  | $ | 5,753 |
(2) Special termination benefit charge for one of our U.S.-based benefit pension plans resulting from a plant closure - see Note 10.

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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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