Accumulated Other Comprehensive (Loss) Income

12 Months Ended

Jun. 30, 2021

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

ACCUMULATED OTHER COMPREHENSIVE LOSS

The components of and changes in accumulated other comprehensive loss (AOCL) were as follows, net of tax, for the year ended June 30, 2021 (in thousands):


Attributable to Kennametal:	Pension and other postretirement benefits		Currency translation adjustment		Derivatives		Total
Balance, June 30, 2020	$	(232,634)	$	(181,027)	$	(3,581)	$	(417,242)
Other comprehensive income before reclassifications	9,107		58,599		9,255		76,961
Amounts Reclassified from AOCL	10,355		—		(401)		9,954
Net other comprehensive income	19,462		58,599		8,854		86,915
AOCL, June 30, 2021	$	(213,172)	$	(122,428)	$	5,273	$	(330,327)

Attributable to noncontrolling interests:
Balance, June 30, 2020	$	—	$	(5,909)	$	—	$	(5,909)
Other comprehensive income before reclassifications	—		1,927		—		1,927
Net other comprehensive income	—		1,927		—		1,927
AOCL, June 30, 2021	$	—	$	(3,982)	$	—	$	(3,982)

The components of and changes in AOCL were as follows, net of tax, for the year ended June 30, 2020 (in thousands):


Attributable to Kennametal:	Pension and other postretirement benefits		Currency translation adjustment		Derivatives		Total
Balance, June 30, 2019	$	(222,270)	$	(147,595)	$	(3,678)	$	(373,543)
Other comprehensive loss before reclassifications	(18,299)		(33,432)		(582)		(52,313)
Amounts Reclassified from AOCL	7,935		—		679		8,614
Net other comprehensive loss	(10,364)		(33,432)		97		(43,699)
AOCL, June 30, 2020	$	(232,634)	$	(181,027)	$	(3,581)	$	(417,242)

Attributable to noncontrolling interests:
Balance, June 30, 2019	$	—	$	(3,450)	$	—	$	(3,450)
Other comprehensive loss before reclassifications	—		(2,459)		—		(2,459)
Net other comprehensive loss	—		(2,459)		—		(2,459)
AOCL, June 30, 2020	$	—	$	(5,909)	$	—	$	(5,909)

The components of and changes in AOCL were as follows, net of tax, for the year ended June 30, 2019 (in thousands):


Attributable to Kennametal:	Pension and other postretirement benefits		Currency translation adjustment		Derivatives		Total
Balance, June 30, 2018	$	(187,755)	$	(127,347)	$	(5,223)	$	(320,325)
Other comprehensive loss before reclassifications	(39,639)		(20,248)		197		(59,690)
Amounts Reclassified from AOCL	5,124		—		1,348		6,472
Net other comprehensive (loss) income	(34,515)		(20,248)		1,545		(53,218)

AOCL, June 30, 2019	$	(222,270)	$	(147,595)	$	(3,678)	$	(373,543)

Attributable to noncontrolling interests:
Balance, June 30, 2018	$	—	$	(2,913)	$	—	$	(2,913)
Other comprehensive loss before reclassifications	—		(537)		—		(537)
Net other comprehensive loss	—		(537)		—		(537)
AOCL, June 30, 2019	$	—	$	(3,450)	$	—	$	(3,450)

Reclassifications out of AOCL for the years ended June 30, 2021, 2020 and 2019 consisted of the following:


	Year Ended June 30,
Details about AOCL components (in thousands)	2021		2020		2019		Affected line item in the Income Statement
Losses and (gains) on cash flow hedges:
Forward starting interest rate swaps	$	4,082	$	2,444	$	2,352	Interest expense
Currency exchange contracts	(24)		(1,545)		(567)		Other income, net
Total before tax	4,058		899		1,785
Tax impact	(4,459)		(220)		(437)		Provision for income taxes
Net of tax	$	(401)	$	679	$	1,348

Pension and other postretirement benefits:
Amortization of transition obligations	$	94	$	88	$	91	Other income, net
Amortization of prior service credit	(242)		(226)		(109)		Other income, net
Recognition of actuarial losses	13,913		10,616		6,971		Other income, net
Total before tax	13,765		10,478		6,953
Tax impact	(3,410)		(2,543)		(1,829)		Provision for income taxes
Net of tax	$	10,355	$	7,935	$	5,124

The amount of income tax allocated to each component of other comprehensive income for the year ended June 30, 2021:


(in thousands)	Pre-tax		Tax impact		Net of tax
Unrealized gain on derivatives designated and qualified as cash flow hedges	$	12,264	$	(3,009)	$	9,255
Reclassification of unrealized loss (gain) on expired derivatives designated and qualified as cash flow hedges	4,058		(4,459)		(401)
Unrecognized net pension and other postretirement benefit gain	11,901		(2,794)		9,107
Reclassification of net pension and other postretirement benefit loss	13,765		(3,410)		10,355
Foreign currency translation adjustments	61,038		(510)		60,528
Other comprehensive income	$	103,026	$	(14,182)	$	88,844

The amount of income tax allocated to each component of other comprehensive loss for the year ended June 30, 2020:


(in thousands)	Pre-tax		Tax impact		Net of tax
Unrealized loss on derivatives designated and qualified as cash flow hedges	$	(771)	$	189	$	(582)
Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges	899		(220)		679
Unrecognized net pension and other postretirement benefit loss	(23,999)		5,700		(18,299)
Reclassification of net pension and other postretirement benefit loss	10,478		(2,543)		7,935
Foreign currency translation adjustments	(35,936)		45		(35,891)
Other comprehensive loss	$	(49,329)	$	3,171	$	(46,158)

The amount of income tax allocated to each component of other comprehensive loss for the year ended June 30, 2019:


(in thousands)	Pre-tax		Tax impact		Net of tax
Unrealized gain on derivatives designated and qualified as cash flow hedges	$	261	$	(64)	$	197
Reclassification of unrealized loss on expired derivatives designated and qualified as cash flow hedges	1,785		(437)		1,348
Unrecognized net pension and other postretirement benefit loss	(52,087)		12,448		(39,639)
Reclassification of net pension and other postretirement benefit loss	6,953		(1,829)		5,124
Foreign currency translation adjustments	(20,881)		96		(20,785)

Other comprehensive loss	$	(63,969)	$	10,214	$	(53,755)