2016 Q2 Form 10-K Financial Statement

#000005524216000060 Filed on August 11, 2016

View on sec.gov

Income Statement

Concept 2016 Q2 2015 Q2 2015 Q1
Revenue $521.2M $637.7M $639.0M
YoY Change -18.26% -17.42% -15.4%
Cost Of Revenue $354.5M $448.7M $439.5M
YoY Change -20.99% -13.61% -14.87%
Gross Profit $166.7M $189.0M $199.5M
YoY Change -11.79% -25.26% -16.52%
Gross Profit Margin 31.98% 29.63% 31.22%
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $27.90M $32.00M $32.40M
YoY Change -12.81% -8.83% -7.69%
% of Gross Profit 16.74% 16.93% 16.24%
Operating Expenses $125.7M $157.0M $138.0M
YoY Change -19.94% -1.81% -9.37%
Operating Profit $40.98M $31.97M -$120.4M
YoY Change 28.21% -65.61% -256.7%
Interest Expense -$6.300M -$7.500M $7.760M
YoY Change -16.0% -11.76% -12.64%
% of Operating Profit -15.37% -23.46%
Other Income/Expense, Net $1.900M $1.700M $378.0K
YoY Change 11.76% -230.77% -32.62%
Pretax Income $20.70M $29.50M -$127.8M
YoY Change -29.83% -56.81% -286.51%
Income Tax $86.80M $7.300M -$82.22M
% Of Pretax Income 419.32% 24.75%
Net Earnings -$66.52M $21.15M -$46.23M
YoY Change -414.55% -53.48% -190.89%
Net Earnings / Revenue -12.76% 3.32% -7.23%
Basic Earnings Per Share -$0.83 $0.27 -$0.58
Diluted Earnings Per Share -$0.83 $0.26 -$0.58
COMMON SHARES
Basic Shares Outstanding 79.69M shares 79.28M shares 79.39M shares
Diluted Shares Outstanding 79.39M shares

Balance Sheet

Concept 2016 Q2 2015 Q2 2015 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $161.6M $105.5M $146.2M
YoY Change 53.18% -40.7% -9.64%
Cash & Equivalents $161.6M $105.5M $146.2M
Short-Term Investments
Other Short-Term Assets $57.30M $59.70M $67.83M
YoY Change -4.01% -6.85% 13.39%
Inventory $458.8M $575.5M $632.5M
Prepaid Expenses
Receivables $370.9M $445.4M $451.5M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $1.075B $1.259B $1.341B
YoY Change -14.56% -17.48% -12.85%
LONG-TERM ASSETS
Property, Plant & Equipment $730.6M $815.8M $813.0M
YoY Change -10.44% -7.76% -8.2%
Goodwill $298.5M $417.4M $411.9M
YoY Change -28.49% -57.22% -57.74%
Intangibles $207.2M $286.7M $290.9M
YoY Change -27.72% -16.47% -16.67%
Long-Term Investments $400.0K $300.0K
YoY Change -20.0% -57.14%
Other Assets $36.65M $46.65M $113.0M
YoY Change -21.44% -52.49% 24.17%
Total Long-Term Assets $1.287B $1.585B $1.661B
YoY Change -18.78% -32.34% -28.91%
TOTAL ASSETS
Total Short-Term Assets $1.075B $1.259B $1.341B
Total Long-Term Assets $1.287B $1.585B $1.661B
Total Assets $2.363B $2.844B $3.002B
YoY Change -16.91% -26.48% -22.53%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $182.0M $187.4M $174.3M
YoY Change -2.85% -9.43% -14.41%
Accrued Expenses $74.47M $75.75M $74.92M
YoY Change -1.68% -24.17% -23.44%
Deferred Revenue
YoY Change
Short-Term Debt $1.200M $7.600M $88.40M
YoY Change -84.21% -89.52% -5.76%
Long-Term Debt Due $0.00 $8.049M $11.20M
YoY Change -100.0% 7.15% -42.86%
Total Short-Term Liabilities $427.3M $482.7M $524.5M
YoY Change -11.49% -14.22% -11.0%
LONG-TERM LIABILITIES
Long-Term Debt $693.5M $735.9M $804.1M
YoY Change -5.76% -25.04% -21.33%
Other Long-Term Liabilities $24.46M $29.69M $33.08M
YoY Change -17.62% -28.96% -19.0%
Total Long-Term Liabilities $24.46M $29.69M $33.08M
YoY Change -17.62% -28.96% -19.0%
TOTAL LIABILITIES
Total Short-Term Liabilities $427.3M $482.7M $524.5M
Total Long-Term Liabilities $24.46M $29.69M $33.08M
Total Liabilities $1.367B $1.474B $1.600B
YoY Change -7.27% -22.68% -17.55%
SHAREHOLDERS EQUITY
Retained Earnings $780.6M $1.070B $1.063B
YoY Change -27.07% -28.7% -27.65%
Common Stock $536.2M $519.0M $514.2M
YoY Change 3.31% 5.02% 5.63%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $964.3M $1.346B $1.371B
YoY Change
Total Liabilities & Shareholders Equity $2.363B $2.850B $3.002B
YoY Change -17.08% -26.33% -22.53%

Cashflow Statement

Concept 2016 Q2 2015 Q2 2015 Q1
OPERATING ACTIVITIES
Net Income -$66.52M $21.15M -$46.23M
YoY Change -414.55% -53.48% -190.89%
Depreciation, Depletion And Amortization $27.90M $32.00M $32.40M
YoY Change -12.81% -8.83% -7.69%
Cash From Operating Activities $73.90M $131.8M $84.30M
YoY Change -43.93% 11.04% 22.89%
INVESTING ACTIVITIES
Capital Expenditures -$27.40M -$23.30M -$22.90M
YoY Change 17.6% -25.8% -38.44%
Acquisitions
YoY Change
Other Investing Activities -$4.200M $15.10M $400.0K
YoY Change -127.81% 39.81% -33.33%
Cash From Investing Activities -$31.70M -$8.300M -$22.50M
YoY Change 281.93% -59.71% -38.52%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -15.80M -168.2M -59.20M
YoY Change -90.61% 110.51% 86.75%
NET CHANGE
Cash From Operating Activities 73.90M 131.8M 84.30M
Cash From Investing Activities -31.70M -8.300M -22.50M
Cash From Financing Activities -15.80M -168.2M -59.20M
Net Change In Cash 26.40M -44.70M 2.600M
YoY Change -159.06% -345.6% 766.67%
FREE CASH FLOW
Cash From Operating Activities $73.90M $131.8M $84.30M
Capital Expenditures -$27.40M -$23.30M -$22.90M
Free Cash Flow $101.3M $155.1M $107.2M
YoY Change -34.69% 3.33% 1.32%

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2024
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2024
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0 USD
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0 USD
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200000 USD
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300000 USD
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25313000 USD
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1530000 USD
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84530000 USD
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942000 USD
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0 USD
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2072000 USD
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0 USD
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0 USD
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27790000 USD
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80083000 USD
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0 USD
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134657000 USD
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6439000 USD
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2852000 USD
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2595000 USD
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1064000 USD
CY2014 us-gaap Income Tax Reconciliation State And Local Income Taxes
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1593000 USD
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859000 USD
CY2014 us-gaap Income Tax Reconciliation Tax Credits Research
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1385000 USD
CY2015 us-gaap Income Tax Reconciliation Tax Credits Research
IncomeTaxReconciliationTaxCreditsResearch
3087000 USD
CY2016 us-gaap Income Tax Reconciliation Tax Credits Research
IncomeTaxReconciliationTaxCreditsResearch
4351000 USD
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49393000 USD
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40295000 USD
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43733000 USD
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13748000 USD
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45041000 USD
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45000000 USD
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36700000 USD
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166274000 USD
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495000 USD
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361000 USD
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CY2014 us-gaap Lease And Rental Expense
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31900000 USD
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LeaseAndRentalExpense
28600000 USD
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3400000 USD
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10044000 USD
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299800000 USD
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400000000 USD
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2873000 USD
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6800000 USD
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9900000 USD
CY2016Q2 us-gaap Operating Leases Future Minimum Payments Due In Two Years
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13000000 USD
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CY2014 us-gaap Other Comprehensive Income Defined Benefit Plans Net Unamortized Gain Loss Arising During Period Tax
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CY2015 us-gaap Other Comprehensive Income Defined Benefit Plans Net Unamortized Gain Loss Arising During Period Tax
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CY2016 us-gaap Other Comprehensive Income Defined Benefit Plans Net Unamortized Gain Loss Arising During Period Tax
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CY2016 us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Gain Loss Before Reclassification And Tax
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15088000 USD
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0 USD
CY2015 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Reclassification Adjustment From Aoci Realized Upon Sale Or Liquidation Net Of Tax
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0 USD
CY2016 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Reclassification Adjustment From Aoci Realized Upon Sale Or Liquidation Net Of Tax
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CY2016 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Reclassification Adjustment From Aoci Realized Upon Sale Or Liquidation Tax
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0 USD
CY2014 us-gaap Other Comprehensive Income Loss Foreign Currency Translation Adjustment Tax
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CY2015 us-gaap Other Comprehensive Income Loss Foreign Currency Translation Adjustment Tax
OtherComprehensiveIncomeLossForeignCurrencyTranslationAdjustmentTax
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CY2016 us-gaap Other Comprehensive Income Loss Foreign Currency Translation Adjustment Tax
OtherComprehensiveIncomeLossForeignCurrencyTranslationAdjustmentTax
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CY2014 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Tax
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CY2015 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Tax
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CY2015 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Before Tax
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CY2016 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Before Tax
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CY2014 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Net Of Tax
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CY2015 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Net Of Tax
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CY2016 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Net Of Tax
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CY2014 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Tax
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CY2015 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Tax
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CY2016 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Tax
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OtherComprehensiveIncomeLossTax
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OtherComprehensiveIncomeLossTax
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OtherComprehensiveIncomeLossTax
4726000 USD
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10834000 USD
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6652000 USD
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4200000 USD
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CY2015 us-gaap Payments For Proceeds From Other Investing Activities
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CY2014 us-gaap Payments For Repurchase Of Common Stock
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14165000 USD
CY2015 us-gaap Payments For Repurchase Of Common Stock
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318000 USD
CY2016 us-gaap Payments For Repurchase Of Common Stock
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295000 USD
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23346000 USD
CY2016 us-gaap Payments For Restructuring
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29651000 USD
CY2014 us-gaap Payments Of Dividends Common Stock
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56436000 USD
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56979000 USD
CY2016 us-gaap Payments Of Dividends Common Stock
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63717000 USD
CY2014 us-gaap Payments To Acquire Businesses Gross
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634615000 USD
CY2015 us-gaap Payments To Acquire Businesses Gross
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0 USD
CY2016 us-gaap Payments To Acquire Businesses Gross
PaymentsToAcquireBusinessesGross
0 USD
CY2014 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
117376000 USD
CY2015 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
100939000 USD
CY2016 us-gaap Payments To Acquire Property Plant And Equipment
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110697000 USD
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0.47
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0
CY2016Q2 us-gaap Preferred Stock No Par Value
PreferredStockNoParValue
0
CY2015Q2 us-gaap Preferred Stock Shares Authorized
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CY2016Q2 us-gaap Preferred Stock Shares Authorized
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5000000 shares
CY2015Q2 us-gaap Preferred Stock Shares Issued
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0 shares
CY2016Q2 us-gaap Preferred Stock Shares Issued
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0 shares
CY2015Q2 us-gaap Preferred Stock Value
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0 USD
CY2016Q2 us-gaap Preferred Stock Value
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0 USD
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10225000 USD
CY2015 us-gaap Proceeds From Divestiture Of Businesses Net Of Cash Divested
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CY2016 us-gaap Nature Of Operations
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">NATURE OF OPERATIONS</font></div><div style="line-height:120%;padding-top:10px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Kennametal Inc. delivers productivity solutions to customers seeking peak performance in demanding environments. We provide innovative wear-resistant products, application engineering and services backed by advanced material science serving customers across diverse sectors of industrial production, transportation, earthworks, energy, construction, process industries and aerospace. Our solutions are built around industry-essential technology platforms, including precision-engineered metalworking tools and components, surface technologies and earth cutting tools that are mission-critical to customer operations battling extreme conditions associated with wear fatigue, corrosion and high temperatures. The Company's reputation for material and industrial technology excellence, as well as expertise and innovation in development of custom solutions and services, contributes to our leading position in our primary industrial and infrastructure markets. End users of our products include manufacturers, metalworking suppliers, machinery operators and processors engaged in a diverse array of industries, including the manufacture of transportation vehicles and components; machine tool, light machinery and heavy machinery industries; airframe and aerospace components; defense; as well as producers and suppliers in equipment-intensive operations such as coal mining, road construction, quarrying, oil and gas exploration, refining, production and supply.</font></div><div style="line-height:120%;padding-top:10px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Our product offering includes a wide selection of standard and customized technologies for metalworking, such as sophisticated metal cutting tools, tooling systems and services, as well as advanced, high-performance materials, such as cemented tungsten carbide products, super alloys, coatings and investment castings to address customer demands. We offer these products through a variety of channels to meet customer-specified needs. We are a leading global supplier of tooling, engineered components and advanced materials consumed in production processes. We believe we are one of the largest global providers of consumable metal cutting tools and tooling supplies.</font></div><div style="line-height:120%;padding-top:10px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We specialize in developing and manufacturing metalworking tools and wear-resistant engineered components and coatings using a specialized type of powder metallurgy. Our metalworking tools are made of cemented tungsten carbides, ceramics, cermets and super-hard materials. We also manufacture and market a complete line of tool holders, tool-holding systems and rotary-cutting tools by machining and fabricating steel bars and other metal alloys. In addition, we produce specialized compacts and metallurgical powders, as well as products made from tungsten carbide or other hard materials that are used for custom-engineered and challenging applications, including mining and highway construction, among others. Further, we develop, manufacture and market engineered components and surface technology solutions with proprietary metal cladding capabilities.</font></div><div style="line-height:120%;padding-top:10px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Unless otherwise specified, any reference to a &#8220;year&#8221; is to a fiscal year ended June&#160;30. When used in this annual report on Form 10-K, unless the context requires otherwise, the terms &#8220;we,&#8221; &#8220;our&#8221; and &#8220;us&#8221; refer to Kennametal Inc. and its subsidiaries.</font></div></div>
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:10px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS</font><font style="font-family:inherit;font-size:10pt;"> In preparing our consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP), we make judgments and estimates about the amounts reflected in our financial statements. As part of our financial reporting process, our management collaborates to determine the necessary information on which to base our judgments and develop estimates used to prepare the financial statements. We use historical experience and available information to make these judgments and estimates. However, different amounts could be reported using different assumptions and in light of different facts and circumstances. Therefore, actual amounts could differ from the estimates reflected in our financial statements. </font></div></div>

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