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Segment Data | 12 Months Ended
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Jun. 30, 2020
Segment Reporting [Abstract] |
SEGMENT DATA | SEGMENT DATA The Company 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. Effective July 1, 2020, the Company combined Industrial and Widia to form one Metal Cutting segment. The Infrastructure segment remains unchanged. Refer to Note 22 for additional information on the fiscal 2021 change in reportable segments. Sales to a single customer did not aggregate to 5 percent or more of total sales in 2020, 2019 and 2018. Export sales from U.S. operations to unaffiliated customers were $34.0 million, $67.8 million and $72.4 million in 2020, 2019 and 2018, respectively. INDUSTRIAL The Industrial segment develops and manufactures high performance tooling and metal cutting 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 and 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 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. Segment data is summarized as follows:
(in thousands) | 2020 |  | 2019 |  | 2018
Sales: |  |  |  |  |
Industrial | $ | 1,015,058 |  |  | $ | 1,274,499 |  |  | $ | 1,292,098 |
Widia | 162,995 |  |  | 197,522 |  |  | 198,568 |
Infrastructure | 707,252 |  |  | 903,213 |  |  | 877,187 |
Total sales | $ | 1,885,305 |  |  | $ | 2,375,234 |  |  | $ | 2,367,853 |
Operating income (loss): |  |  |  |  |
Industrial | $ | 35,671 |  |  | $ | 220,696 |  |  | $ | 176,978 |
Widia | (34,686 | ) |  | 2,882 |  |  | 2,919 |
Infrastructure | 23,113 |  |  | 108,480 |  |  | 112,998 |
Corporate | (1,846 | ) |  | (3,208 | ) |  | (2,596 | )
Total operating income | $ | 22,252 |  |  | $ | 328,850 |  |  | $ | 290,299 |
Interest expense | $ | 35,154 |  |  | $ | 32,994 |  |  | $ | 30,081 |
Other income, net | (14,862 | ) |  | (15,379 | ) |  | (14,823 | )
Income before income taxes | $ | 1,960 |  |  | $ | 311,235 |  |  | $ | 275,041 |
Depreciation and amortization: |  |  |  |  |
Industrial | $ | 64,366 |  |  | $ | 58,373 |  |  | $ | 57,261 |
Widia | 10,298 |  |  | 9,390 |  |  | 9,483 |
Infrastructure | 45,176 |  |  | 44,284 |  |  | 41,916 |
Corporate | 20 |  |  | 5 |  |  | 20 |
Total depreciation and amortization | $ | 119,860 |  |  | $ | 112,052 |  |  | $ | 108,680 |
Segment assets(4): |  |  |  |  |
Industrial | $ | 1,291,879 |  |  | $ | 1,245,624 |  |  | $ | 1,169,610 |
Widia | 160,252 |  |  | 216,633 |  |  | 193,971 |
Infrastructure | 748,424 |  |  | 883,566 |  |  | 864,402 |
Corporate | 837,036 |  |  | 310,446 |  |  | 697,754 |
Total assets | $ | 3,037,591 |  |  | $ | 2,656,269 |  |  | $ | 2,925,737 |
Capital expenditures: |  |  |  |  |
Industrial | $ | 182,292 |  |  | $ | 145,485 |  |  | $ | 112,124 |
Widia | 12,875 |  |  | 22,162 |  |  | 17,445 |
Infrastructure | 48,984 |  |  | 44,696 |  |  | 41,435 |
Total capital expenditures | $ | 244,151 |  |  | $ | 212,343 |  |  | $ | 171,004 |
(4) Industrial, Widia and Infrastructure segment assets are principally accounts receivable, less allowance for doubtful accounts; inventories; property, plant and equipment, net; goodwill; other intangible assets, net of accumulated amortization; and operating lease ROU assets. Corporate assets are principally cash and cash equivalents, other current assets, long-term prepaid pension benefit, deferred income taxes and other assets. Geographic information for sales, based on country where the sale originated, and long-lived assets is as follows:
(in thousands) | 2020 |  | 2019 |  | 2018
Sales: |  |  |  |  |
United States | $ | 778,054 |  |  | $ | 1,014,189 |  |  | $ | 970,003 |
Germany | 248,796 |  |  | 314,035 |  |  | 331,893 |
China | 214,364 |  |  | 247,858 |  |  | 271,343 |
Canada | 90,247 |  |  | 108,261 |  |  | 102,139 |
India | 81,366 |  |  | 113,287 |  |  | 102,120 |
Italy | 52,699 |  |  | 68,585 |  |  | 69,049 |
France | 45,817 |  |  | 59,899 |  |  | 62,982 |
United Kingdom | 33,305 |  |  | 44,384 |  |  | 45,714 |
Other(4) | 340,657 |  |  | 404,736 |  |  | 412,610 |
Total sales | $ | 1,885,305 |  |  | $ | 2,375,234 |  |  | $ | 2,367,853 |
Total long-lived assets: |  |  |  |  |
United States | $ | 607,222 |  |  | $ | 525,713 |  |  | $ | 456,678 |
Germany | 210,674 |  |  | 201,714 |  |  | 188,673 |
China | 92,658 |  |  | 78,410 |  |  | 67,462 |
India | 44,673 |  |  | 44,643 |  |  | 31,984 |
Israel | 22,249 |  |  | 24,042 |  |  | 25,831 |
Canada | 20,508 |  |  | 20,435 |  |  | 19,396 |
Other | 40,287 |  |  | 39,938 |  |  | 34,189 |
Total long-lived assets(5) | $ | 1,038,271 |  |  | $ | 934,895 |  |  | $ | 824,213 |
(4) Other consists of sales from 27 countries, none of which individually exceed 2 percent of total sales. (5) Total long-lived assets as of June 30, 2020, 2019 and 2018 include property, plant and equipment, net of $1,038.3 million, $934.9 million and $824.2 million, respectively. The following table presents Kennametal's revenue disaggregated by segment by geography:
| Industrial |  | Widia |  | Infrastructure |  | Total Kennametal
| 2020 | 2019 | 2018 |  | 2020 | 2019 | 2018 |  | 2020 | 2019 | 2018 |  | 2020 | 2019 | 2018
Americas | 41% | 40% | 38% |  | 48% | 45% | 46% |  | 62% | 66% | 65% |  | 49% | 50% | 49%
EMEA | 38 | 40 | 41 |  | 27 | 26 | 25 |  | 18 | 16 | 16 |  | 30 | 30 | 31
Asia Pacific | 21 | 20 | 21 |  | 25 | 29 | 29 |  | 20 | 18 | 19 |  | 21 | 20 | 20
The following table presents Kennametal's revenue disaggregated by segment by end market:
| Industrial |  | Widia |  | Infrastructure |  | Total Kennametal
| 2020 | 2019 | 2018 |  | 2020 | 2019 | 2018 |  | 2020 | 2019 | 2018 |  | 2020 | 2019 | 2018
General Engineering | 45% | 44% | 43% |  | 100% | 100% | 100% |  | 34% | 34% | 31% |  | 46% | 45% | 41%
Transportation | 32 | 34 | 36 |  | — | — | — |  | — | — | — |  | 17 | 18 | 20
Aerospace | 14 | 13 | 12 |  | — | — | — |  | — | — | — |  | 7 | 7 | 8
Energy | 9 | 9 | 9 |  | — | — | — |  | 28 | 33 | 33 |  | 16 | 17 | 17
Earthworks | — | — | — |  | — | — | — |  | 38 | 33 | 36 |  | 14 | 13 | 14

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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 + Details
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