| 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 year ended June 30, 2026 (in thousands): | | | | | | | | | | | | | | | | Attributable to Kennametal: | Pension and other postretirement benefits | Currency translation adjustment | Derivatives | Total | | Balance, June 30, 2025 | $ | (223,016) | | $ | (165,859) | | $ | 2,182 | | $ | (386,693) | | | Other comprehensive income (loss) before reclassifications | 6,479 | | (26,733) | | (207) | | (20,461) | | | Amounts reclassified from AOCL | 8,680 | | — | | (556) | | 8,124 | | | Net other comprehensive income (loss) | 15,159 | | (26,733) | | (763) | | (12,337) | | | AOCL, June 30, 2026 | $ | (207,857) | | $ | (192,592) | | $ | 1,419 | | $ | (399,030) | | | | | | | | Attributable to noncontrolling interests: | | | | | | Balance, June 30, 2025 | $ | — | | $ | (7,844) | | $ | — | | $ | (7,844) | | | Other comprehensive loss before reclassifications | — | | (2,241) | | — | | (2,241) | | | Net other comprehensive loss | — | | (2,241) | | — | | (2,241) | | | AOCL, June 30, 2026 | $ | — | | $ | (10,085) | | $ | — | | $ | (10,085) | |
The components of and changes in AOCL were as follows, net of tax, for the year ended June 30, 2025 (in thousands): | | | | | | | | | | | | | | | | Attributable to Kennametal: | Pension and other postretirement benefits | Currency translation adjustment | Derivatives | Total | | Balance, June 30, 2024 | $ | (221,308) | | $ | (216,263) | | $ | 2,983 | | $ | (434,588) | | | Other comprehensive (loss) income before reclassifications | (7,965) | | 50,404 | | 771 | | 43,210 | | | Amounts reclassified from AOCL | 6,257 | | — | | (1,574) | | 4,683 | | | Net other comprehensive (loss) income | (1,708) | | 50,404 | | (803) | | 47,893 | | | AOCL, June 30, 2025 | $ | (223,016) | | $ | (165,859) | | $ | 2,182 | | $ | (386,693) | | | | | | | | Attributable to noncontrolling interests: | | | | | | Balance, June 30, 2024 | $ | — | | $ | (8,680) | | $ | — | | $ | (8,680) | | | Other comprehensive income before reclassifications | — | | 836 | | — | | 836 | | | Net other comprehensive income | — | | 836 | | — | | 836 | | | AOCL, June 30, 2025 | $ | — | | $ | (7,844) | | $ | — | | $ | (7,844) | |
The components of and changes in AOCL were as follows, net of tax, for the year ended June 30, 2024 (in thousands): | | | | | | | | | | | | | | | | Attributable to Kennametal: | Pension and other postretirement benefits | Currency translation adjustment | Derivatives | Total | | Balance, June 30, 2023 | $ | (215,435) | | $ | (202,641) | | $ | 3,733 | | $ | (414,343) | | | Other comprehensive loss before reclassifications | (10,100) | | (13,622) | | (26) | | (23,748) | | | Amounts reclassified from AOCL | 4,227 | | — | | (725) | | 3,502 | | | Net other comprehensive loss | (5,873) | | (13,622) | | (750) | | (20,245) | | | | | | | | AOCL, June 30, 2024 | $ | (221,308) | | $ | (216,263) | | $ | 2,983 | | $ | (434,588) | | | | | | | | Attributable to noncontrolling interests: | | | | | | Balance, June 30, 2023 | $ | — | | $ | (8,139) | | $ | — | | $ | (8,139) | | | Other comprehensive loss before reclassifications | — | | (541) | | — | | (541) | | | Net other comprehensive loss | — | | (541) | | — | | (541) | | | AOCL, June 30, 2024 | $ | — | | $ | (8,680) | | $ | — | | $ | (8,680) | |
Reclassifications out of AOCL for the years ended June 30, 2026, 2025 and 2024 consisted of the following: | | | | | | | | | | | | | | | | Year ended June 30, | | Details about AOCL components
(in thousands) | 2026 | 2025 | 2024 | Affected line item in the Income Statement | | (Gains) and losses on cash flow hedges: | | | | | | Forward starting interest rate swaps | $ | (1,020) | | $ | (1,020) | | $ | (1,020) | | Interest expense | | Currency exchange contracts | 284 | | (1,065) | | 60 | | Cost of goods sold | | Total before tax | (736) | | (2,085) | | (960) | | | | Tax impact | 180 | | 511 | | 235 | | Provision for income taxes | | Net of tax | $ | (556) | | $ | (1,574) | | $ | (725) | | | | | | | | | Pension and other postretirement benefits: | | | | | | Amortization of transition obligations | $ | — | | $ | — | | $ | 76 | | Other (income) expense, net | | Amortization of prior service credit | (272) | | (263) | | (258) | | Other (income) expense, net | | Recognition of actuarial losses | 11,862 | | 8,550 | | 5,895 | | Other (income) expense, net | | Total before tax | 11,590 | | 8,287 | | 5,713 | | | | Tax impact | (2,910) | | (2,030) | | (1,486) | | Provision for income taxes | | Net of tax | $ | 8,680 | | $ | 6,257 | | $ | 4,227 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The amount of income tax allocated to each component of other comprehensive loss for the year ended June 30, 2026: | | | | | | | | | | | | | (in thousands) | Pre-tax | Tax impact | Net of tax | | Unrealized loss on derivatives designated and qualified as cash flow hedges | $ | (274) | | $ | 67 | | $ | (207) | | | Reclassification of unrealized gain on expired derivatives designated and qualified as cash flow hedges | (736) | | 180 | | (556) | | | Unrecognized net pension and other postretirement benefit plans gain | 8,339 | | (1,860) | | 6,479 | | | Reclassification of net pension and other postretirement benefit plans loss | 11,590 | | (2,910) | | 8,680 | | | Foreign currency translation adjustments | (28,974) | | — | | (28,974) | | | Other comprehensive loss | $ | (10,055) | | $ | (4,523) | | $ | (14,578) | |
The amount of income tax allocated to each component of other comprehensive income for the year ended June 30, 2025: | | | | | | | | | | | | | (in thousands) | Pre-tax | Tax impact | Net of tax | | Unrealized gain on derivatives designated and qualified as cash flow hedges | $ | 1,021 | | $ | (250) | | $ | 771 | | | Reclassification of unrealized gain on expired derivatives designated and qualified as cash flow hedges | (2,085) | | 511 | | (1,574) | | | Unrecognized net pension and other postretirement benefit plans loss | (10,193) | | 2,228 | | (7,965) | | | Reclassification of net pension and other postretirement benefit plans loss | 8,287 | | (2,030) | | 6,257 | | | Foreign currency translation adjustments | 51,240 | | — | | 51,240 | | | Other comprehensive income | $ | 48,270 | | $ | 459 | | $ | 48,729 | |
The amount of income tax allocated to each component of other comprehensive loss for the year ended June 30, 2024: | | | | | | | | | | | | | (in thousands) | Pre-tax | Tax impact | Net of tax | | Unrealized loss on derivatives designated and qualified as cash flow hedges | $ | (34) | | $ | 8 | | $ | (26) | | | Reclassification of unrealized gain on expired derivatives designated and qualified as cash flow hedges | (960) | | 235 | | (725) | | | Unrecognized net pension and other postretirement benefit plans loss | (13,328) | | 3,228 | | (10,100) | | | Reclassification of net pension and other postretirement benefit plans loss | 5,713 | | (1,486) | | 4,227 | | | Foreign currency translation adjustments | (14,215) | | 51 | | (14,164) | | | | | | | Other comprehensive loss | $ | (22,824) | | $ | 2,036 | | $ | (20,788) | |
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