| ACCUMULATED OTHER COMPREHENSIVE LOSS |
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, 2025: | | | | | | | | | | | | | | | | (in thousands) | Pension and other postretirement benefits | Currency translation adjustment | Derivatives | Total | | Attributable to Kennametal: | | | | | Balance, June 30, 2025 | $ | (223,016) | | $ | (165,859) | | $ | 2,182 | | $ | (386,693) | | | Other comprehensive income (loss) before reclassifications | 511 | | 426 | | (194) | | 743 | | | Amounts reclassified from AOCL | 4,524 | | — | | (188) | | 4,336 | | | Net other comprehensive income (loss) | 5,035 | | 426 | | (382) | | 5,079 | | AOCL, December 31, 2025 | $ | (217,981) | | $ | (165,433) | | $ | 1,800 | | $ | (381,614) | | | | | | | | Attributable to noncontrolling interests: | | | | | Balance, June 30, 2025 | $ | — | | $ | (7,844) | | $ | — | | $ | (7,844) | | | Other comprehensive loss before reclassifications | — | | (695) | | — | | (695) | | | Net other comprehensive loss | — | | (695) | | — | | (695) | | AOCL, December 31, 2025 | $ | — | | $ | (8,539) | | $ | — | | $ | (8,539) | |
The components of, and changes in, AOCL were as follows, net of tax, for the six months ended December 31, 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 income (loss) before reclassifications | 616 | | (20,905) | | 1,085 | | (19,204) | | | Amounts reclassified from AOCL | 3,724 | | — | | (392) | | 3,332 | | | Net other comprehensive income (loss) | 4,340 | | (20,905) | | 693 | | (15,872) | | AOCL, December 31, 2024 | $ | (216,968) | | $ | (237,168) | | $ | 3,676 | | $ | (450,460) | | | | | | | | Attributable to noncontrolling interests: | | | | | Balance, June 30, 2024 | $ | — | | $ | (8,680) | | $ | — | | $ | (8,680) | | | Other comprehensive loss before reclassifications | — | | (1,055) | | — | | (1,055) | | | Net other comprehensive loss | — | | (1,055) | | — | | (1,055) | | AOCL, December 31, 2024 | $ | — | | $ | (9,735) | | $ | — | | $ | (9,735) | |
Reclassifications out of AOCL for the three and six months ended December 31, 2025 and 2024 consisted of the following: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended December 31, | Six Months Ended December 31, | | | | (in thousands) | 2025 | | 2024 | 2025 | | 2024 | | Affected line item in the Income Statement | | Gains on cash flow hedges: | | | | | | | | | | Forward starting interest rate swaps | $ | (255) | | | $ | (255) | | $ | (511) | | | $ | (511) | | | Interest expense | | Currency exchange contracts | 226 | | | 31 | | 262 | | | (8) | | | Cost of goods sold | | Total before tax | (29) | | | (224) | | (249) | | | (519) | | | | | Tax impact | 7 | | | 55 | | 61 | | | 127 | | | Provision for income taxes | | Net of tax | $ | (22) | | | $ | (169) | | $ | (188) | | | $ | (392) | | | | | | | | | | | | | | Pension and other postretirement benefits: | | | | | | | | | | | | | | | | | | | Amortization of prior service credit | $ | (67) | | | $ | (65) | | $ | (135) | | | $ | (132) | | | Other income, net | | Recognition of actuarial losses | 2,947 | | | 2,141 | | 5,902 | | | 4,280 | | | Other income, net | | Settlement | — | | | — | | — | | | 836 | | | Other income, net | | Total before tax | 2,880 | | | 2,076 | | 5,767 | | | 4,984 | | | | | Tax impact | (708) | | | (537) | | (1,243) | | | (1,260) | | | Provision for income taxes | | Net of tax | $ | 2,172 | | | $ | 1,539 | | $ | 4,524 | | | $ | 3,724 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The amount of income tax allocated to each component of other comprehensive income (loss) for the three months ended December 31, 2025 and 2024 were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | 2025 | | | | | 2024 | | | (in thousands) | Pre-tax | Tax impact | Net of tax | | | Pre-tax | Tax impact | Net of tax | | Unrealized (loss) gain on derivatives designated and qualified as cash flow hedges | $ | (246) | | $ | 60 | | $ | (186) | | | | $ | 1,548 | | $ | (379) | | $ | 1,169 | | | Reclassification of unrealized gain on derivatives designated and qualified as cash flow hedges | (29) | | 7 | | (22) | | | | (224) | | 55 | | (169) | | | Unrecognized net pension and other postretirement benefit plans (loss) gain | (178) | | 44 | | (134) | | | | 4,313 | | (1,122) | | 3,191 | | | Reclassification of net pension and other postretirement benefit plans loss | 2,880 | | (708) | | 2,172 | | | | 2,076 | | (537) | | 1,539 | | | Foreign currency translation adjustments | 2,984 | | — | | 2,984 | | | | (56,998) | | — | | (56,998) | | | | | | | | | | | | Other comprehensive income (loss) | $ | 5,411 | | $ | (597) | | $ | 4,814 | | | | $ | (49,285) | | $ | (1,983) | | $ | (51,268) | |
The amount of income tax allocated to each component of other comprehensive (loss) income for the six months ended December 31, 2025 and 2024 were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | 2025 | | | | | 2024 | | | (in thousands) | Pre-tax | Tax impact | Net of tax | | | Pre-tax | Tax impact | Net of tax | | Unrealized (loss) gain on derivatives designated and qualified as cash flow hedges | $ | (257) | | $ | 63 | | $ | (194) | | | | $ | 1,437 | | $ | (352) | | $ | 1,085 | | | Reclassification of unrealized gain on derivatives designated and qualified as cash flow hedges | (249) | | 61 | | (188) | | | | (519) | | 127 | | (392) | | | Unrecognized net pension and other postretirement benefit plans gain | 681 | | (170) | | 511 | | | | 844 | | (228) | | 616 | | | Reclassification of net pension and other postretirement benefit plans loss | 5,767 | | (1,243) | | 4,524 | | | | 4,984 | | (1,260) | | 3,724 | | | Foreign currency translation adjustments | (269) | | — | | (269) | | | | (21,960) | | — | | (21,960) | | | | | | | | | | | | Other comprehensive income (loss) | $ | 5,673 | | $ | (1,289) | | $ | 4,384 | | | | $ | (15,214) | | $ | (1,713) | | $ | (16,927) | |
|