Accumulated Other Comprehensive Loss

3 Months Ended

Sep. 30, 2024

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 three months ended September 30, 2024:


(in thousands)	Pension and other postretirement benefits		Currency translation adjustment		Derivatives		Total
Attributable to Kennametal:
Balance, June 30, 2024	$	(221,308)	$	(216,263)	$	2,983	$	(434,588)
Other comprehensive (loss) income before reclassifications	(2,575)		34,313		(84)		31,654
Amounts reclassified from AOCL	2,186		—		(222)		1,964
Net other comprehensive (loss) income	(389)		34,313		(306)		33,618
AOCL, September 30, 2024	$	(221,697)	$	(181,950)	$	2,677	$	(400,970)

Attributable to noncontrolling interests:
Balance, June 30, 2024	$	—	$	(8,680)	$	—	$	(8,680)
Other comprehensive income before reclassifications	—		723		—		723
Net other comprehensive income	—		723		—		723
AOCL, September 30, 2024	$	—	$	(7,957)	$	—	$	(7,957)

The components of, and changes in, AOCL were as follows, net of tax, for the three months ended September 30, 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 income (loss) before reclassifications	1,517		(19,548)		—		(18,031)
Amounts reclassified from AOCL	1,054		—		(192)		862
Net other comprehensive income (loss)	2,571		(19,548)		(192)		(17,169)
AOCL, September 30, 2023	$	(212,864)	$	(222,189)	$	3,541	$	(431,512)

Attributable to noncontrolling interests:
Balance, June 30, 2023	$	—	$	(8,139)	$	—	$	(8,139)
Other comprehensive loss before reclassifications	—		(640)		—		(640)
Net other comprehensive loss	—		(640)		—		(640)
AOCL, September 30, 2023	$	—	$	(8,779)	$	—	$	(8,779)

Reclassifications out of AOCL for the three months ended September 30, 2024 and 2023 consisted of the following:


	Three Months Ended September 30,
(in thousands)	2024		2023		Affected line item in the Income Statement
Gains on cash flow hedges:
Forward starting interest rate swaps	$	(255)	$	(255)	Interest expense
Currency exchange contracts	(42)		—		Cost of goods sold
Total before tax	(297)		(255)
Tax impact	75		63		Provision for income taxes
Net of tax	$	(222)	$	(192)

Pension and other postretirement benefits:
Amortization of transition obligations	$	—	19		Other (income) expense, net
Amortization of prior service credit	(65)		(64)		Other (income) expense, net
Recognition of actuarial losses	2,136		1,478		Other (income) expense, net
Settlement	837		—		Other (income) expense, net
Total before tax	2,908		1,433
Tax impact	(722)		(379)		Provision for income taxes
Net of tax	$	2,186	$	1,054

The amount of income tax allocated to each component of other comprehensive income (loss) for the three months ended September 30, 2024 and 2023 were as follows:


			2024						2023
(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	$	(112)	$	28	$	(84)	$	—	$	—	$	—
Reclassification of unrealized gain on derivatives designated and qualified as cash flow hedges	(297)		75		(222)		(255)		63		(192)
Unrecognized net pension and other postretirement benefit plans (loss) gain	(3,469)		894		(2,575)		2,047		(530)		1,517
Reclassification of net pension and other postretirement benefit plans loss	2,908		(722)		2,186		1,433		(379)		1,054
Foreign currency translation adjustments	35,036		—		35,036		(20,188)		—		(20,188)

Other comprehensive income (loss)	$	34,066	$	275	$	34,341	$	(16,963)	$	(846)	$	(17,809)