KENNAMETAL INCKMT

KENNAMETAL INC Fair Value Disclosure

10-KFiled Aug 12, 20252 min read
FAIR VALUE MEASUREMENTS
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy consists of three levels to prioritize the inputs used in valuations, as defined below:
Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means.
Level 3: Inputs that are unobservable.
As of June 30, 2025, the fair values of the Company’s financial assets and financial liabilities measured at fair value on a recurring basis are categorized as follows: 
(in thousands)Level 1Level 2Level 3Total
Assets:
Derivatives (1)
$— $88 $— $88 
Total assets at fair value$— $88 $— $88 
Liabilities:
Derivatives (1)
$— $81 $— $81 
Total liabilities at fair value$— $81 $— $81 
As of June 30, 2024, the fair value of the Company’s financial assets and financial liabilities measured at fair value on a recurring basis are categorized as follows:
(in thousands)Level 1Level 2Level 3Total
Assets:
Derivatives (1)
$— $91 $— $91 
Total assets at fair value$— $91 $— $91 
Liabilities:
Derivatives (1)
$— $89 $— $89 
Total liabilities at fair value$— $89 $— $89 
 
 (1) Currency derivatives are valued based on observable market spot and forward rates and are classified within Level 2 of the fair value hierarchy.
There have been no changes in classification and transfers between levels in the fair value hierarchy in the current period.

Historical Timeline

Fiscal YearFiled
2025Aug 12, 2025Showing above
2024Aug 12, 2024
2023Aug 9, 2023
2022Aug 10, 2022
2021Aug 10, 2021
2020Aug 20, 2020
2019Aug 13, 2019
2018Aug 10, 2018
2017Aug 14, 2017
2016Aug 11, 2016

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.

Other Available Disclosures

Income TaxesRevenueGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsStock CompensationNew Standards