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Segment Data | 12 Months Ended
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Jun. 30, 2017
Segment Reporting [Abstract] |
SEGMENT DATA | SEGMENT DATA In order to take advantage of the growth opportunities of our WIDIA brand, we implemented a new operating structure at the beginning of fiscal 2017. A key attribute of the new structure is the establishment of the Widia operating segment, which we separated out from our 2016 Industrial segment. In order to better leverage the opportunities in our Widia business, and be more agile and competitive in the marketplace, we are placing higher levels of focus, determination and leadership in this business. The Company now manages and reports its business in the following three segments: Industrial, Widia 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. None of our reportable operating segments represent the aggregation of two or more operating segments. Sales to a single customer did not aggregate 4 percent or more of total sales in 2017, 2016 and 2015. Export sales from U.S. operations to unaffiliated customers were $58.6 million, $65.3 million and $71.0 million in 2017, 2016 and 2015, respectively. INDUSTRIAL The Industrial segment generally serves customers that operate in industrial end markets such as transportation, general engineering, aerospace and defense market sectors, as well as the machine tool industry, delivering high performance metalworking tools for specified purposes. Our customers in these end markets use our products and services in the manufacture of engines, airframes, automobiles, trucks, ships and other various types of industrial equipment. The technology and customization requirements we provide vary by customer, application and industry. Industrial goes to market under the Kennametal® brand through its direct sales force, a network of independent and national chain 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. WIDIA The Widia segment offers a focused assortment of standard custom metal cutting solutions to general engineering, aerospace, energy and transportation customers. We serve our customers primarily through a network of value added resellers, integrated supplier channels and via the Internet. Widia markets its products under the WIDIA®, WIDIA Hanita® and WIDIA GTD® brands. INFRASTRUCTURE The Infrastructure segment generally serves customers that operate in the energy and earthworks market sectors that support primary industries such as oil and gas, power generation and chemicals; underground, surface and hard-rock mining; highway construction and road maintenance; and process industries such as food and feed. Our success is determined by our ability to gain an in-depth understanding of our customers’ engineering and development needs, to provide complete system solutions and high-performance capabilities to optimize and add value to their operations. Infrastructure markets its products primarily under the Kennametal® brand and sells through a direct sales force as well as distributors. Segment data is summarized as follows:
(in thousands) | 2017 |  | 2016 |  | 2015
Sales: |  |  |  |  |
Industrial (7) | $ | 1,126,309 |  |  | $ | 1,098,439 |  |  | $ | 1,269,786 |
Widia (7) | 177,662 |  |  | 170,723 |  |  | 191,958 |
Infrastructure | 754,397 |  |  | 829,274 |  |  | 1,185,451 |
Total sales | $ | 2,058,368 |  |  | $ | 2,098,436 |  |  | $ | 2,647,195 |
Operating income (loss): |  |  |  |  |
Industrial (7) | $ | 82,842 |  |  | $ | 90,324 |  |  | $ | 165,434 |
Widia (7) | (9,606 | ) |  | (9,081 | ) |  | (4,540 | )
Infrastructure | 40,011 |  |  | (246,306 | ) |  | (509,381 | )
Corporate | (303 | ) |  | (9,880 | ) |  | (9,336 | )
Total operating income (loss) | $ | 112,944 |  |  | $ | (174,943 | ) |  | $ | (357,823 | )
Interest expense | $ | 28,842 |  |  | $ | 27,752 |  |  | $ | 31,466 |
Other expense (income), net | 2,227 |  |  | (4,124 | ) |  | (1,674 | )
Income (loss) before income taxes | $ | 81,875 |  |  | $ | (198,571 | ) |  | $ | (387,615 | )
Depreciation and amortization: |  |  |  |  |
Industrial (7) | $ | 54,269 |  |  | $ | 52,523 |  |  | $ | 54,237 |
Widia (7) | 10,728 |  |  | 10,419 |  |  | 9,951 |
Infrastructure | 42,596 |  |  | 54,459 |  |  | 67,413 |
Corporate | 63 |  |  | 65 |  |  | 63 |
Total depreciation and amortization | $ | 107,656 |  |  | $ | 117,466 |  |  | $ | 131,664 |
Total assets: |  |  |  |  |
Industrial (7) | $ | 1,103,686 |  |  | $ | 1,019,887 |  |  | $ | 1,059,278 |
Widia (7) | 191,626 |  |  | 195,339 |  |  | 199,992 |
Infrastructure | 813,747 |  |  | 849,447 |  |  | 1,279,608 |
Corporate (8) | 306,437 |  |  | 298,110 |  |  | 304,777 |
Total assets | $ | 2,415,496 |  |  | $ | 2,362,783 |  |  | $ | 2,843,655 |
Capital expenditures: |  |  |  |  |
Industrial (7) | $ | 70,281 |  |  | $ | 66,467 |  |  | $ | 55,301 |
Widia (7) | 17,853 |  |  | 14,093 |  |  | 9,196 |
Infrastructure | 29,884 |  |  | 30,137 |  |  | 36,442 |
Total capital expenditures | $ | 118,018 |  |  | $ | 110,697 |  |  | $ | 100,939 |
(7) Amounts for 2016 and 2015 and as of June 30, 2016 and June 30, 2015 have been restated to reflect the change in reportable operating segments. (8) Amounts as of June 30, 2016 and June 30, 2015 have been restated to reflect the adopted of FASB guidance on the presentation of debt issuance costs. Geographic information for sales, based on country where the sale originated, and assets is as follows:
(in thousands) | 2017 |  | 2016 |  | 2015
Sales: |  |  |  |  |
United States | $ | 897,326 |  |  | $ | 897,399 |  |  | $ | 1,176,622 |
Germany | 282,347 |  |  | 334,366 |  |  | 442,009 |
China | 220,561 |  |  | 210,124 |  |  | 246,953 |
India | 84,769 |  |  | 77,934 |  |  | 85,193 |
Italy | 59,967 |  |  | 69,821 |  |  | 85,530 |
Canada | 56,628 |  |  | 55,812 |  |  | 73,912 |
France | 56,231 |  |  | 56,264 |  |  | 59,772 |
United Kingdom | 39,731 |  |  | 50,723 |  |  | 70,600 |
Other | 360,808 |  |  | 345,993 |  |  | 406,604 |
Total sales | $ | 2,058,368 |  |  | $ | 2,098,436 |  |  | $ | 2,647,195 |
Total assets: |  |  |  |  |
United States (8) | $ | 1,075,444 |  |  | $ | 1,069,320 |  |  | $ | 1,332,720 |
Germany | 347,226 |  |  | 327,679 |  |  | 394,491 |
China | 239,908 |  |  | 233,200 |  |  | 274,774 |
Switzerland | 197,783 |  |  | 189,498 |  |  | 194,139 |
India | 98,602 |  |  | 91,544 |  |  | 97,463 |
Canada | 58,337 |  |  | 57,174 |  |  | 60,492 |
Italy | 48,990 |  |  | 50,352 |  |  | 94,978 |
United Kingdom | 48,729 |  |  | 48,507 |  |  | 71,342 |
Other | 300,477 |  |  | 295,509 |  |  | 323,256 |
Total assets: | $ | 2,415,496 |  |  | $ | 2,362,783 |  |  | $ | 2,843,655 |
(8) Amounts as of June 30, 2016 and June 30, 2015 have been restated to reflect the adopted of FASB guidance on the presentation of debt issuance costs. Approximate sales by end markets as a percentage of consolidated sales are as follows:
| 2017 |  | 2016 |  | 2015
End markets: |  |  |  |  |
General engineering | 39 | % |  | 38 | % |  | 36 | %
Transportation | 20 |  |  | 21 |  |  | 21 |
Energy | 18 |  |  | 17 |  |  | 19 |
Earthworks | 15 |  |  | 16 |  |  | 17 |
Aerospace and defense | 8 |  |  | 8 |  |  | 7 |
Total | 100 | % |  | 100 | % |  | 100 | %

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 + Details
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