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Segment Data | 12 Months Ended
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Jun. 30, 2021
Segment Reporting [Abstract] |
SEGMENT DATA | SEGMENT DATA The Company manages and reports its business in the following two segments: Metal Cutting 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. Our former segments, Industrial and Widia, were combined into one Metal Cutting segment as of July 1, 2020. Infrastructure remains unchanged. Segment results have been retrospectively restated to reflect the change in reportable segments. Our reportable operating segments do not represent the aggregation of two or more operating segments. Sales to a single customer did not aggregate to five percent or more of total sales in 2021, 2020 and 2019. METAL CUTTING The Metal Cutting segment develops and manufactures high performance tooling and metal cutting products and services and offers an assortment of standard and custom metal cutting solutions to diverse end markets, including aerospace, general engineering, energy and transportation. The 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. Metal Cutting markets its products under the Kennametal®, WIDIA®, WIDIA Hanita® and WIDIA GTD® brands 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. 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) | 2021 |  | 2020 |  | 2019
Sales: |  |  |  |  |
Metal Cutting | $ | 1,150,746 |  |  | $ | 1,178,053 |  |  | $ | 1,472,021 |
Infrastructure | 690,695 |  |  | 707,252 |  |  | 903,213 |
Total sales | $ | 1,841,441 |  |  | $ | 1,885,305 |  |  | $ | 2,375,234 |
Operating income: |  |  |  |  |
Metal Cutting | $ | 45,855 |  |  | $ | 985 |  |  | $ | 223,578 |
Infrastructure | 59,461 |  |  | 23,113 |  |  | 108,480 |
Corporate | (3,148) |  |  | (1,846) |  |  | (3,208) |
Total operating income | $ | 102,168 |  |  | $ | 22,252 |  |  | $ | 328,850 |
Interest expense | $ | 46,375 |  |  | $ | 35,154 |  |  | $ | 32,994 |
Other income, net | (8,867) |  |  | (14,862) |  |  | (15,379) |
Income before income taxes | $ | 64,660 |  |  | $ | 1,960 |  |  | $ | 311,235 |
Depreciation and amortization: |  |  |  |  |
Metal Cutting | $ | 81,796 |  |  | $ | 74,664 |  |  | $ | 67,763 |
Infrastructure | 44,661 |  |  | 45,176 |  |  | 44,284 |
Corporate | 31 |  |  | 20 |  |  | 5 |
Total depreciation and amortization | $ | 126,488 |  |  | $ | 119,860 |  |  | $ | 112,052 |
Segment assets(4): |  |  |  |  |
Metal Cutting | $ | 1,532,177 |  |  | $ | 1,452,131 |  |  | $ | 1,462,257 |
Infrastructure | 698,766 |  |  | 748,424 |  |  | 883,566 |
Corporate | 434,818 |  |  | 837,036 |  |  | 310,446 |
Total assets | $ | 2,665,761 |  |  | $ | 3,037,591 |  |  | $ | 2,656,269 |
Capital expenditures: |  |  |  |  |
Metal Cutting | $ | 103,812 |  |  | $ | 195,167 |  |  | $ | 167,647 |
Infrastructure | 23,490 |  |  | 48,984 |  |  | 44,696 |
Total capital expenditures | $ | 127,302 |  |  | $ | 244,151 |  |  | $ | 212,343 |
(4) Metal Cutting 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) | 2021 |  | 2020 |  | 2019
Sales: |  |  |  |  |
United States | $ | 692,106 |  |  | $ | 778,054 |  |  | $ | 1,014,189 |
Germany | 260,792 |  |  | 248,796 |  |  | 314,035 |
China | 242,815 |  |  | 214,364 |  |  | 247,858 |
Canada | 79,891 |  |  | 90,247 |  |  | 108,261 |
India | 94,966 |  |  | 81,366 |  |  | 113,287 |
Italy | 59,955 |  |  | 52,699 |  |  | 68,585 |
France | 45,356 |  |  | 45,817 |  |  | 59,899 |
United Kingdom | 28,464 |  |  | 33,305 |  |  | 44,384 |
Other(4) | 337,096 |  |  | 340,657 |  |  | 404,736 |
Total sales | $ | 1,841,441 |  |  | $ | 1,885,305 |  |  | $ | 2,375,234 |
Total long-lived assets: |  |  |  |  |
United States | $ | 611,724 |  |  | $ | 607,222 |  |  | $ | 525,713 |
Germany | 218,250 |  |  | 210,674 |  |  | 201,714 |
China | 97,404 |  |  | 92,658 |  |  | 78,410 |
India | 44,504 |  |  | 44,673 |  |  | 44,643 |
Israel | 21,790 |  |  | 22,249 |  |  | 24,042 |
Canada | 19,144 |  |  | 20,508 |  |  | 20,435 |
Other | 42,319 |  |  | 40,287 |  |  | 39,938 |
Total long-lived assets(5) | $ | 1,055,135 |  |  | $ | 1,038,271 |  |  | $ | 934,895 |
(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, 2021, 2020 and 2019 include property, plant and equipment, net of $1,055.1 million, $1,038.3 million and $934.9 million, respectively. The following table presents Kennametal's revenue disaggregated by segment by geography:
| Metal Cutting |  | Infrastructure |  | Total Kennametal
| 2021 | 2020 | 2019 |  | 2021 | 2020 | 2019 |  | 2021 | 2020 | 2019
Americas | 38 | % | 42 | % | 41 | % |  | 57 | % | 62 | % | 66 | % |  | 45 | % | 49 | % | 50 | %
EMEA | 39 |  | 37 |  | 38 |  |  | 19 |  | 18 |  | 16 |  |  | 31 |  | 30 |  | 30 |
Asia Pacific | 23 |  | 21 |  | 21 |  |  | 24 |  | 20 |  | 18 |  |  | 24 |  | 21 |  | 20 |
The following table presents Kennametal's revenue disaggregated by segment by end market:
| Metal Cutting |  | Infrastructure |  | Total Kennametal
| 2021 | 2020 | 2019 |  | 2021 | 2020 | 2019 |  | 2021 | 2020 | 2019
General Engineering | 54 | % | 53 | % | 52 | % |  | 35 | % | 34 | % | 34 | % |  | 47 | % | 46 | % | 45 | %
Transportation | 30 |  | 27 |  | 29 |  |  | — |  | — |  | — |  |  | 19 |  | 17 |  | 18 |
Aerospace | 8 |  | 12 |  | 11 |  |  | — |  | — |  | — |  |  | 5 |  | 7 |  | 7 |
Energy | 8 |  | 8 |  | 8 |  |  | 26 |  | 28 |  | 33 |  |  | 15 |  | 16 |  | 17 |
Earthworks | — |  | — |  | — |  |  | 39 |  | 38 |  | 33 |  |  | 14 |  | 14 |  | 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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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