Accumulated Other Comprehensive Loss

6 Months Ended

Dec. 31, 2023

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 six months ended December 31, 2023:


(in thousands)	Pension and other postretirement benefits		Currency translation adjustment		Derivatives		Total
Attributable to Kennametal:
Balance, June 30, 2023	$	(215,435)	$	(202,641)	$	3,733	$	(414,343)
Other comprehensive (loss) income before reclassifications	(235)		11,576		(59)		11,282
Amounts reclassified from AOCL	2,125				(385)		1,740
Net other comprehensive income (loss)	1,890		11,576		(444)		13,022
AOCL, December 31, 2023	$	(213,545)	$	(191,065)	$	3,289	$	(401,321)

Attributable to noncontrolling interests:
Balance, June 30, 2023	$	—	$	(8,139)	$	—	$	(8,139)
Other comprehensive income before reclassifications	—		28		—		28
Net other comprehensive income	—		28		—		28
AOCL, December 31, 2023	$	—	$	(8,111)	$	—	$	(8,111)

The components of, and changes in, AOCL were as follows, net of tax, for the six months ended December 31, 2022:


(in thousands)	Pension and other postretirement benefits		Currency translation adjustment		Derivatives		Total
Attributable to Kennametal:
Balance, June 30, 2022	$	(208,406)	$	(210,048)	$	4,503	$	(413,951)
Other comprehensive (loss) income before reclassifications	(47)		568		—		521
Amounts reclassified from AOCL	1,639		—		(385)		1,254
Net other comprehensive income (loss)	1,592		568		(385)		1,775
AOCL, December 31, 2022	$	(206,814)	$	(209,480)	$	4,118	$	(412,176)

Attributable to noncontrolling interests:
Balance, June 30, 2022	$	—	$	(7,547)	$	—	$	(7,547)
Other comprehensive loss before reclassifications	—		(698)		—		(698)
Net other comprehensive loss	—		(698)		—		(698)
AOCL, December 31, 2022	$	—	$	(8,245)	$	—	$	(8,245)

Reclassifications out of AOCL for the three and six months ended December 31, 2023 and 2022 consisted of the following:


	Three Months Ended December 31,				Six Months Ended December 31,
(in thousands)	2023		2022		2023		2022		Affected line item in the Income Statement
Gains on cash flow hedges:
Forward starting interest rate swaps	$	(255)	$	(255)	$	(511)	$	(511)	Interest expense

Total before tax	(255)		(255)		(511)		(511)
Tax impact	63		63		126		126		Provision for income taxes
Net of tax	$	(192)	$	(192)	$	(385)	$	(385)

Pension and other postretirement benefits:
Amortization of transition obligations	$	19	$	20	$	38	$	41	Other (income) expense, net
Amortization of prior service credit	(64)		(66)		(129)		(132)		Other (income) expense, net
Recognition of actuarial losses	1,463		1,140		2,943		2,293		Other (income) expense, net
Total before tax	1,418		1,094		2,852		2,202
Tax impact	(347)		(262)		(727)		(563)		Provision for income taxes
Net of tax	$	1,071	$	832	$	2,125	$	1,639

The amount of income tax allocated to each component of other comprehensive income for the three months ended December 31, 2023 and 2022 were as follows:


			2023						2022
(in thousands)	Pre-tax		Tax impact		Net of tax		Pre-tax		Tax impact		Net of tax
Unrealized loss on derivatives designated and qualified as cash flow hedges	$	(78)	$	19	$	(59)	$	—	$	—	$	—
Reclassification of unrealized gain on derivatives designated and qualified as cash flow hedges	(255)		63		(192)		(255)		63		(192)
Unrecognized net pension and other postretirement benefit plans loss	(2,378)		626		(1,752)		(4,564)		1,193		(3,371)
Reclassification of net pension and other postretirement benefit plans loss	1,418		(347)		1,071		1,094		(262)		832
Foreign currency translation adjustments	31,681		110		31,791		52,675		144		52,819

Other comprehensive income	$	30,388	$	471	$	30,859	$	48,950	$	1,138	$	50,088