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Segment Data

3 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

SEGMENT DATA

SEGMENT DATA

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.

INDUSTRIAL The Industrial segment develops and manufactures high performance tooling and metalworking products and services for diverse end markets, including aerospace and defense, general engineering, energy and transportation. These products include milling, hole making, turning, threading and toolmaking systems used in the manufacture of airframes, aero engines, trucks and automobiles, ships and various types of industrial equipment. We leverage advanced manufacturing capabilities in combination with varying levels of customization to solve our customers’ toughest challenges and deliver improved productivity for a wide range of applications. Industrial goes to market under the Kennametal^® brand through its direct sales force, a network of independent and national 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 Widia offers an assortment of standard and 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 Our Infrastructure segment produces engineered tungsten carbide and ceramic components, earth-cutting tools, and advanced metallurgical powders, primarily for the energy, earthworks and general engineering end markets. These wear-resistant products include compacts, nozzles, frac seats and custom components used in oil & gas and petrochemical industries; rod blanks and abrasive water jet nozzles for general industries; earth cutting tools and systems used in underground mining, trenching and foundation drilling and road milling; tungsten carbide and specialty alloy powders for the oil and gas, aerospace and process industries; and ceramics used by the packaging industry for metallization of films and papers. We combine deep metallurgical and engineering expertise with advanced manufacturing capabilities to deliver solutions that drive improved productivity for our customers. Infrastructure markets its products primarily under the Kennametal^® brand and sells through a direct sales force as well as through distributors.

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

	Three Months Ended September 30,
(in thousands)	2019				2018
Sales:
Industrial	$	280,028			$	320,559
Widia	44,057				48,672
Infrastructure	194,003				217,456
Total sales	$	518,088			$	586,687
Operating income (loss):
Industrial	$	21,271			$	58,542
Widia	(1,965		)		2,093
Infrastructure	(2,690		)		23,860
Corporate	(240		)		(1,343		)
Total operating income	16,376				83,152
Interest expense	7,881				8,097
Other income, net	(2,681		)		(2,761		)
Income from continuing operations before income taxes	$	11,176			$	77,816

The following table presents Kennametal's revenue disaggregated by geography:

	Three Months Ended
	September 30, 2019								September 30, 2018
(in thousands)	Industrial		Widia		Infrastructure		Total Kennametal		Industrial		Widia		Infrastructure		Total Kennametal
Americas	42%		48%		63%		50%		39%		45%		65%		49%
EMEA	38		26		18		30		40		24		15		29
Asia Pacific	20		26		19		20		21		31		20		22

The following tables presents Kennametal's revenue disaggregated by end market:

	Three Months Ended September 30, 2019
(in thousands)	Industrial		Widia		Infrastructure		Total Kennametal
General engineering	44%		100%		34%		45%
Transportation	33		—		—		18
Aerospace	14		—		—		7
Energy	9		—		29		16
Earthworks	—		—		37		14

	Three Months Ended September 30, 2018
(in thousands)	Industrial		Widia		Infrastructure		Total Kennametal
General engineering	43%		100%		32%		44%
Transportation	35		—		—		19
Aerospace	13		—		—		7
Energy	9		—		34		17
Earthworks	—		—		34		13

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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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

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