SEGMENT DATA

Kennametal delivers productivity to customers seeking peak performance in demanding environments by providing innovative custom and standard wear-resistant solutions. To provide these solutions, we harness our knowledge of advanced materials and application development with a commitment to environmental sustainability. Our product offering includes a wide selection of standard and customized technologies for metalworking, such as sophisticated metal cutting tools, tooling systems and services, as well as advanced, high-performance materials, such as cemented tungsten carbide products, super alloys, coatings and investment castings to address customer demands. We offer these products through a variety of channels to meet customer-specified needs.

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. None of our three reportable operating segments represent the aggregation of two or more operating segments.

The Industrial segment generally serves customers that operate in industrial end markets such as transportation, general engineering and aerospace and defense, delivering high performance metalworking tools for specified purposes. The customers in these end markets manufacture engines, airframes, automobiles, trucks, ships and various types of industrial equipment. The technology and customization requirements for customers we serve vary by customer, application and industry. The value we deliver to our Industrial segment customers centers on our application expertise and our diverse offering of products and services, with products delivered through a diverse base including direct and indirect channels.

The WIDIA segment generally serves customers that operate in industrial end markets, primarily in general engineering, delivering high performance metalworking tools for general purposes. Whereas the Industrial segment's core is in application expertise and specific customer needs, WIDIA offers a competitive alternative for general metal cutting solutions across a broader platform for application, with products delivered primarily through indirect channels.

The Infrastructure segment generally serves customers that operate in the earthworks and energy sectors who support primary industries such as oil and gas, power generation, underground, surface and hard-rock mining, highway construction and road maintenance. Generally, we rely on customer intimacy to serve this segment. By gaining an in-depth understanding of our customers’ engineering and development needs, we are able to offer complete system solutions and high-performance capabilities to optimize and add value to their operations.

Our sales and operating income (loss) by segment are as follows:



	Three Months Ended September 30,
(in thousands)	2016			2015
Sales:
Industrial ⁽⁴⁾	$	269,043		$	270,191
WIDIA ⁽⁴⁾	41,015			43,142
Infrastructure	167,082			242,021
Total sales	$	477,140		$	555,354
Operating (loss) income:
Industrial ⁽⁴⁾	$	5,556		$	21,459
WIDIA ⁽⁴⁾	(5,756		)	(1,709		)
Infrastructure	(7,587		)	(8,428		)
Corporate	(1,424		)	(4,708		)
Total operating (loss) income	(9,211		)	6,614
Interest expense	6,993			6,979
Other expense, net	118			1,087
Loss from continuing operations before income taxes	$	(16,322	)	$	(1,452	)

Total assets by segment are as follows:



(in thousands)	September 30, 2016		June 30, 2016
Industrial ⁽⁴⁾	$	1,086,170	$	1,019,887
WIDIA ⁽⁴⁾	193,576		195,339
Infrastructure	764,546		849,447
Corporate	263,141		298,110
Total assets	$	2,307,433	$	2,362,783

(4) Amounts for the three months ended September 30, 2015 and as of June 30, 2016 have been restated to reflect the change in reportable operating segments.