XML 49 R30.htm IDEA: XBRL DOCUMENT
v3.24.2.u1

Segment Data | 12 Months Ended
--- | ---
Jun. 30, 2024
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 reportable operating segments do not represent the aggregation of two or more operating segments. Sales to a single customer did not aggregate to more than five percent of total sales in 2024, 2023 and 2022. 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 & Defense, 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 Aerospace & Defense, 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; high temperature critical wear components, tungsten penetrators and armor solutions for aerospace and defense; and ceramics used by the packaging industry for metallization of films and papers. We combine deep metallurgical and engineering expertise with advanced manufacturing capabilities, such as 3D printing, 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) | 2024 |  | 2023 |  | 2022
Sales: |  |  |  |  |
Metal Cutting | $ | 1,280,781 |  |  | $ | 1,269,765 |  |  | $ | 1,227,273 |
Infrastructure | 766,118 |  |  | 808,419 |  |  | 785,183 |
Total sales | $ | 2,046,899 |  |  | $ | 2,078,184 |  |  | $ | 2,012,456 |
Operating income: |  |  |  |  |
Metal Cutting | $ | 132,573 |  |  | $ | 135,763 |  |  | $ | 121,386 |
Infrastructure | 39,857 |  |  | 59,757 |  |  | 98,871 |
Corporate | (2,207) |  |  | (3,103) |  |  | (2,117) |
Total operating income | $ | 170,223 |  |  | $ | 192,417 |  |  | $ | 218,140 |
Interest expense | $ | 26,472 |  |  | $ | 28,496 |  |  | $ | 25,914 |
Other (income) expense, net | (699) |  |  | 4,300 |  |  | (14,507) |
Income before income taxes | $ | 144,450 |  |  | $ | 159,621 |  |  | $ | 206,733 |
Depreciation and amortization: |  |  |  |  |
Metal Cutting | $ | 90,917 |  |  | $ | 90,880 |  |  | $ | 87,986 |
Infrastructure | 43,770 |  |  | 43,144 |  |  | 43,691 |
Corporate | — |  |  | 1 |  |  | 1 |
Total depreciation and amortization | $ | 134,687 |  |  | $ | 134,025 |  |  | $ | 131,678 |
Segment assets(4): |  |  |  |  |
Metal Cutting | $ | 1,416,884 |  |  | $ | 1,460,757 |  |  | $ | 1,469,835 |
Infrastructure | 690,374 |  |  | 734,944 |  |  | 768,226 |
Corporate | 396,500 |  |  | 351,533 |  |  | 335,463 |
Total assets | $ | 2,503,758 |  |  | $ | 2,547,234 |  |  | $ | 2,573,524 |
Capital expenditures: |  |  |  |  |
Metal Cutting | $ | 71,148 |  |  | $ | 58,384 |  |  | $ | 64,055 |
Infrastructure | 36,413 |  |  | 36,001 |  |  | 32,869 |
Total capital expenditures | $ | 107,561 |  |  | $ | 94,385 |  |  | $ | 96,924 |
(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) | 2024 |  | 2023 |  | 2022
Sales: |  |  |  |  |
United States | $ | 824,275 |  |  | $ | 848,713 |  |  | $ | 797,768 |
Germany | 278,824 |  |  | 270,936 |  |  | 262,764 |
China | 199,069 |  |  | 220,193 |  |  | 234,997 |
India | 115,397 |  |  | 112,819 |  |  | 108,695 |
Canada | 102,666 |  |  | 103,323 |  |  | 94,956 |
Italy | 68,575 |  |  | 68,249 |  |  | 67,930 |
France | 55,670 |  |  | 51,178 |  |  | 47,218 |
South Africa | 42,609 |  |  | 42,775 |  |  | 42,402 |
Mexico | 44,408 |  |  | 42,367 |  |  | 35,099 |
Brazil | 30,224 |  |  | 32,946 |  |  | 26,147 |
Spain | 32,262 |  |  | 31,064 |  |  | 29,756 |
United Kingdom | 32,013 |  |  | 29,943 |  |  | 30,686 |
Other(5) | 220,907 |  |  | 223,678 |  |  | 234,038 |
Total sales | $ | 2,046,899 |  |  | $ | 2,078,184 |  |  | $ | 2,012,456 |
Total long-lived assets: |  |  |  |  |
United States | $ | 516,659 |  |  | $ | 552,770 |  |  | $ | 585,003 |
Germany | 219,633 |  |  | 204,551 |  |  | 195,325 |
China | 77,759 |  |  | 81,731 |  |  | 92,315 |
India | 41,886 |  |  | 44,748 |  |  | 45,146 |
Israel | 22,018 |  |  | 24,662 |  |  | 26,864 |
Canada | 18,927 |  |  | 18,934 |  |  | 18,478 |
Other (5) | 41,181 |  |  | 41,672 |  |  | 38,910 |
Total long-lived assets(6) | $ | 938,063 |  |  | $ | 969,068 |  |  | $ | 1,002,041 |
(5) Other does not contain any country that individually exceeds 2 percent of total sales or total long-lived assets, respectively. (6) Total long-lived assets as of June 30, 2024, 2023 and 2022 include property, plant, and equipment, net. The following table presents Kennametal's revenue disaggregated by segment by geography:
| Metal Cutting |  | Infrastructure |  | Total Kennametal
| 2024 | 2023 | 2022 |  | 2024 | 2023 | 2022 |  | 2024 | 2023 | 2022
Americas | 45 | % | 44 | % | 41 | % |  | 58 | % | 60 | % | 59 | % |  | 49 | % | 50 | % | 48 | %
EMEA | 37 |  | 36 |  | 37 |  |  | 20 |  | 18 |  | 18 |  |  | 31 |  | 29 |  | 30 |
Asia Pacific | 18 |  | 20 |  | 22 |  |  | 22 |  | 22 |  | 23 |  |  | 20 |  | 21 |  | 22 |
The following table presents Kennametal's revenue disaggregated by segment by end market:
| Metal Cutting |  | Infrastructure |  | Total Kennametal
| 2024 | 2023 | 2022 |  | 2024 | 2023 | 2022 |  | 2024 | 2023 | 2022
General Engineering | 54 | % | 55 | % | 55 | % |  | 34 | % | 34 | % | 34 | % |  | 46 | % | 47 | % | 47 | %
Transportation | 27 |  | 27 |  | 27 |  |  | — |  | — |  | — |  |  | 17 |  | 16 |  | 17 |
Aerospace & Defense | 12 |  | 11 |  | 10 |  |  | 8 |  | 6 |  | 7 |  |  | 11 |  | 9 |  | 9 |
Energy | 7 |  | 7 |  | 8 |  |  | 22 |  | 24 |  | 22 |  |  | 13 |  | 14 |  | 13 |
Earthworks | — |  | — |  | — |  |  | 36 |  | 36 |  | 37 |  |  | 13 |  | 14 |  | 14 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 270 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482964/270-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (ee) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 5: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 6: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 7: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 8: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 9: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 10: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 11: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-31 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-34 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26C Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26B Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-15 Reference 18: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-42 Reference 19: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-40 Reference 20: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/280/tableOfContent Reference 21: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26 Reference 22: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-41 Reference 23: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 24: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 25: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration