| 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 three months ended September 30, 2026: | | | | | | | | | | | | | | | | (in thousands) | Pension and other postretirement benefits | Currency translation adjustment | Derivatives | Total | | Attributable to Kennametal: | | | | | Balance, June 30, 2026 | $ | (207,857) | | $ | (192,592) | | $ | 1,419 | | $ | (399,030) | | | Other comprehensive (loss) income before reclassifications | (154) | | (4,757) | | 72 | | (4,839) | | | Amounts reclassified from AOCL | 2,192 | | — | | (193) | | 1,999 | | | Net other comprehensive income (loss) | 2,038 | | (4,757) | | (121) | | (2,840) | | AOCL, September 30, 2026 | $ | (205,819) | | $ | (197,349) | | $ | 1,298 | | $ | (401,870) | | | | | | | | Attributable to noncontrolling interests: | | | | | Balance, June 30, 2026 | $ | — | | $ | (10,085) | | $ | — | | $ | (10,085) | | | Other comprehensive loss before reclassifications | — | | (267) | | — | | (267) | | | Net other comprehensive loss | — | | (267) | | — | | (267) | | AOCL, September 30, 2026 | $ | — | | $ | (10,352) | | $ | — | | $ | (10,352) | |
The components of, and changes in, AOCL were as follows, net of tax, for the three months ended September 30, 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 | 646 | | (2,629) | | (8) | | (1,991) | | | Amounts reclassified from AOCL | 2,353 | | — | | (166) | | 2,187 | | | Net other comprehensive income (loss) | 2,999 | | (2,629) | | (174) | | 196 | | AOCL, September 30, 2025 | $ | (220,017) | | $ | (168,488) | | $ | 2,008 | | $ | (386,497) | | | | | | | | Attributable to noncontrolling interests: | | | | | Balance, June 30, 2025 | $ | — | | $ | (7,844) | | $ | — | | $ | (7,844) | | | Other comprehensive loss before reclassifications | — | | (625) | | — | | (625) | | | Net other comprehensive loss | — | | (625) | | — | | (625) | | AOCL, September 30, 2025 | $ | — | | $ | (8,469) | | $ | — | | $ | (8,469) | |
Reclassifications out of AOCL for the three months ended September 30, 2026 and 2025 consisted of the following: | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | | | | (in thousands) | 2026 | | 2025 | | | | | Affected line item in the Income Statement | | Gains on cash flow hedges: | | | | | | | | | | Forward starting interest rate swaps | $ | (255) | | | $ | (255) | | | | | | Interest expense | | Currency exchange contracts | (1) | | | 35 | | | | | | Cost of goods sold | | Total before tax | (256) | | | (220) | | | | | | | | Tax impact | 63 | | | 54 | | | | | | Provision for income taxes | | Net of tax | $ | (193) | | | $ | (166) | | | | | | | | | | | | | | | | | Pension and other postretirement benefits: | | | | | | | | | | | | | | | | | | | Amortization of prior service credit | $ | (67) | | | $ | (67) | | | | | | Other income, net | | Recognition of actuarial losses | 2,979 | | | 2,953 | | | | | | Other income, net | | | | | | | | | | | Total before tax | 2,912 | | | 2,886 | | | | | | | | Tax impact | (720) | | | (533) | | | | | | Provision for income taxes | | Net of tax | $ | 2,192 | | | $ | 2,353 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The amount of income tax allocated to each component of other comprehensive loss for the three months ended September 30, 2026 and 2025 were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | 2026 | | | | | 2025 | | | (in thousands) | Pre-tax | Tax impact | Net of tax | | | Pre-tax | Tax impact | Net of tax | | Unrealized gain (loss) on derivatives designated and qualified as cash flow hedges | $ | 95 | | $ | (23) | | $ | 72 | | | | $ | (11) | | $ | 3 | | $ | (8) | | | Reclassification of unrealized gain on derivatives designated and qualified as cash flow hedges | (256) | | 63 | | (193) | | | | (220) | | 54 | | (166) | | | Unrecognized net pension and other postretirement benefit plans (loss) gain | (206) | | 52 | | (154) | | | | 860 | | (214) | | 646 | | | Reclassification of net pension and other postretirement benefit plans loss | 2,912 | | (720) | | 2,192 | | | | 2,886 | | (533) | | 2,353 | | | Foreign currency translation adjustments | (5,024) | | — | | (5,024) | | | | (3,254) | | — | | (3,254) | | | | | | | | | | | | Other comprehensive loss | $ | (2,479) | | $ | (628) | | $ | (3,107) | | | | $ | 261 | | $ | (690) | | $ | (429) | |
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