Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Aug. 16, 2014 | Dec. 27, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'TWIN DISC INC | ' | ' |
Entity Central Index Key | '0000100378 | ' | ' |
Current Fiscal Year End Date | '--06-30 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $219,875,647 |
Entity Common Stock, Shares Outstanding | ' | 11,282,815 | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 30-Jun-14 | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash | $24,757 | $20,724 |
Trade accounts receivable, net | 40,219 | 46,331 |
Inventories | 97,579 | 102,774 |
Deferred income taxes | 4,779 | 5,280 |
Other | 12,763 | 13,363 |
Total current assets | 180,097 | 188,472 |
Property, plant and equipment, net | 60,267 | 62,315 |
Goodwill, net | 13,463 | 13,232 |
Deferred income taxes | 2,556 | 7,614 |
Intangible assets, net | 2,797 | 3,149 |
Other assets | 7,805 | 10,676 |
Total assets | 266,985 | 285,458 |
Current liabilities: | ' | ' |
Short-term borrowings and current maturities of long-term debt | 3,604 | 3,681 |
Accounts payable | 22,111 | 20,651 |
Accrued liabilities | 31,265 | 39,171 |
Total current liabilities | 56,980 | 63,503 |
Long-term debt | 14,800 | 23,472 |
Accrued retirement benefits | 37,006 | 48,290 |
Deferred income taxes | 1,778 | 2,925 |
Other long-term liabilities | 4,110 | 3,706 |
Total liabilities | 114,674 | 141,896 |
Twin Disc shareholders' equity: | ' | ' |
Preferred shares authorized: 200,000; issued: none; no par value | 0 | 0 |
Common shares authorized: 30,000,000; issued: 13,099,468; no par value | 11,973 | 13,183 |
Retained earnings | 183,695 | 184,110 |
Accumulated other comprehensive loss | -15,943 | -25,899 |
Shareholders' equity before treasury stock | 179,725 | 171,394 |
Less treasury stock, at cost (1,837,595 and 1,866,516 shares, respectively) | 28,141 | 28,890 |
Total Twin Disc shareholders' equity | 151,584 | 142,504 |
Noncontrolling interest | 727 | 1,058 |
Total equity | 152,311 | 143,562 |
Total liabilities and equity | $266,985 | $285,458 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Twin Disc shareholders' equity: | ' | ' |
Preferred stock, shares authorized (in shares) | 200,000 | 200,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, no par value (in dollars per share) | $0 | $0 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 13,099,468 | 13,099,468 |
Common stock, no par value (in dollars per share) | $0 | $0 |
Treasury stock, shares (in shares) | 1,837,595 | 1,886,516 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME [Abstract] | ' | ' | ' |
Net sales | $263,909 | $285,282 | $355,870 |
Cost of goods sold | 186,655 | 205,257 | 234,238 |
Gross profit | 77,254 | 80,025 | 121,632 |
Marketing, engineering and administrative expenses | 67,406 | 67,899 | 73,091 |
Restructuring of operations | 961 | 708 | 0 |
Impairment charge | 0 | 1,405 | 3,670 |
Earnings from operations | 8,887 | 10,013 | 44,871 |
Other income (expense): | ' | ' | ' |
Interest income | 121 | 102 | 95 |
Interest expense | -936 | -1,435 | -1,475 |
Other, net | 24 | 557 | 1,265 |
Other income (expense) total | -791 | -776 | -115 |
Earnings before income taxes and noncontrolling interest | 8,096 | 9,237 | 44,756 |
Income taxes | 4,226 | 4,986 | 17,815 |
Net earnings | 3,870 | 4,251 | 26,941 |
Less: Net earnings attributable to noncontrolling interest | -226 | -369 | -198 |
Net earnings attributable to Twin Disc | 3,644 | 3,882 | 26,743 |
Earnings per share data: | ' | ' | ' |
Basic earnings per share attributable to Twin Disc common shareholders (in dollars per share) | $0.32 | $0.34 | $2.34 |
Diluted earnings per share attributable to Twin Disc common shareholders (in dollars per share) | $0.32 | $0.34 | $2.31 |
Weighted average shares outstanding data: | ' | ' | ' |
Basic shares outstanding (in shares) | 11,258 | 11,304 | 11,410 |
Dilutive stock awards (in shares) | 6 | 73 | 146 |
Diluted shares outstanding (in shares) | 11,264 | 11,377 | 11,556 |
Comprehensive income: | ' | ' | ' |
Net earnings | 3,870 | 4,251 | 26,941 |
Foreign currency translation adjustment | 3,760 | 447 | -11,738 |
Benefit plan adjustments, net of income taxes of $3,806, $4,163 and ($6,769), respectively | 6,126 | 8,322 | -11,690 |
Comprehensive income | 13,756 | 13,020 | 3,513 |
Comprehensive income attributable to noncontrolling interest | -156 | -240 | -184 |
Comprehensive income attributable to Twin Disc | $13,600 | $12,780 | $3,329 |
CONSOLIDATED_STATEMENTS_OF_OPE1
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Other comprehensive (loss) income, net: | ' | ' | ' |
Benefit plan adjustments, tax | $3,806 | $4,163 | ($6,769) |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Cash flows from operating activities: | ' | ' | ' |
Net earnings | $3,870 | $4,251 | $26,941 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 10,657 | 10,838 | 10,756 |
Loss on sale of plant assets | 26 | 287 | 315 |
Impairment charge | 0 | 1,405 | 3,670 |
Stock compensation expense | 1,184 | 2,681 | 1,642 |
Restructuring of operations | 961 | 708 | 0 |
Provision for deferred income taxes | 634 | 687 | 7,486 |
Changes in operating assets and liabilities: | ' | ' | ' |
Trade accounts receivable | 7,076 | 17,636 | -5,982 |
Inventories | 6,972 | 176 | -9,563 |
Other assets | 2,198 | -3,136 | -915 |
Accounts payable | 1,364 | -2,457 | -13,279 |
Accrued liabilities | -8,531 | -4,969 | -2,904 |
Accrued/prepaid retirement benefits | -662 | -3,631 | -3,723 |
Net cash provided by operating activities | 25,749 | 24,476 | 14,444 |
Cash flows from investing activities: | ' | ' | ' |
Proceeds from sale of plant assets | 103 | 315 | 116 |
Capital expenditures | -7,245 | -6,582 | -13,733 |
Other, net | 34 | -231 | -293 |
Net cash used by investing activities | -7,108 | -6,498 | -13,910 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from senior notes | 0 | 32 | 3 |
Payments of senior notes | -3,651 | -96 | -145 |
Borrowings under revolving loan agreement | 70,443 | 83,450 | 99,635 |
Repayments under revolving loan agreement | -75,544 | -88,382 | -97,045 |
Proceeds from exercise of stock options | 0 | 189 | 169 |
Acquisition of treasury stock | 0 | -3,069 | -2,425 |
Dividends paid to shareholders | -4,059 | -4,078 | -3,886 |
Dividends paid to noncontrolling interest | -487 | -204 | -131 |
Excess tax benefits from stock compensation | 524 | 1,451 | 535 |
Payments of withholding taxes on stock compensation | -2,169 | -1,700 | -184 |
Net cash used by financing activities | -14,943 | -12,407 | -3,474 |
Effect of exchange rate changes on cash | 335 | -548 | -1,526 |
Net change in cash | 4,033 | 5,023 | -4,466 |
Cash: | ' | ' | ' |
Beginning of year | 20,724 | 15,701 | 20,167 |
End of year | 24,757 | 20,724 | 15,701 |
Cash paid during the year for: | ' | ' | ' |
Interest | 989 | 1,536 | 1,507 |
Income taxes | $3,691 | $2,545 | $13,629 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (USD $) | Common Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Non-Controlling Interest [Member] | Total |
In Thousands | ||||||
Balance, beginning of period at Jun. 30, 2011 | $10,863 | $161,449 | ($11,383) | ($25,252) | $969 | $136,646 |
Net earnings | ' | 26,743 | ' | ' | 198 | 26,941 |
Translation adjustments | ' | ' | -11,724 | ' | -14 | -11,738 |
Benefit plan adjustments, net of tax | ' | ' | -11,690 | ' | ' | -11,690 |
Cash dividends | ' | -3,886 | ' | ' | -131 | -4,017 |
Compensation expense and windfall tax benefits | 2,808 | ' | ' | ' | ' | 2,808 |
Shares (acquired) issued, net | -912 | ' | ' | -1,529 | ' | -2,441 |
Balance, end of period at Jun. 30, 2012 | 12,759 | 184,306 | -34,797 | -26,781 | 1,022 | 136,509 |
Net earnings | ' | 3,882 | ' | ' | 369 | 4,251 |
Translation adjustments | ' | ' | 576 | ' | -129 | 447 |
Benefit plan adjustments, net of tax | ' | ' | 8,322 | ' | ' | 8,322 |
Cash dividends | ' | -4,078 | ' | ' | -204 | -4,282 |
Compensation expense and windfall tax benefits | 2,894 | ' | ' | ' | ' | 2,894 |
Shares (acquired) issued, net | -2,470 | ' | ' | -2,109 | ' | -4,579 |
Balance, end of period at Jun. 30, 2013 | 13,183 | 184,110 | -25,899 | -28,890 | 1,058 | 143,562 |
Net earnings | ' | 3,644 | ' | ' | 226 | 3,870 |
Translation adjustments | ' | ' | 3,830 | ' | -70 | 3,760 |
Benefit plan adjustments, net of tax | ' | ' | 6,126 | ' | ' | 6,126 |
Cash dividends | ' | -4,059 | ' | ' | -487 | -4,546 |
Compensation expense and windfall tax benefits | 1,708 | ' | ' | ' | ' | 1,708 |
Shares (acquired) issued, net | -2,918 | ' | ' | 749 | ' | -2,169 |
Balance, end of period at Jun. 30, 2014 | $11,973 | $183,695 | ($15,943) | ($28,141) | $727 | $152,311 |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |
Jun. 30, 2014 | ||
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | |
SIGNIFICANT ACCOUNTING POLICIES | ' | |
A. SIGNIFICANT ACCOUNTING POLICIES | ||
The following is a summary of the significant accounting policies followed in the preparation of these financial statements: | ||
Consolidation Principles‑‑The consolidated financial statements include the accounts of Twin Disc, Incorporated and its wholly and partially owned domestic and foreign subsidiaries. Certain foreign subsidiaries are included based on fiscal years ending May 31, to facilitate prompt reporting of consolidated accounts. The Company also has a controlling interest in a Japanese joint venture, which is consolidated based upon a fiscal year ending March 31. All significant intercompany transactions have been eliminated. | ||
Translation of Foreign Currencies‑‑The financial statements of the Company's non-U.S. subsidiaries are translated using the current exchange rate for assets and liabilities and the weighted-average exchange rate for the year for revenues and expenses. The resulting translation adjustments are recorded as a component of accumulated other comprehensive loss, which is included in equity. Gains and losses from foreign currency transactions are included in earnings. Included in other income (expense) are foreign currency transaction gains (losses) of $293,000, $642,000 and $1,103,000 in fiscal 2014, 2013 and 2012, respectively. | ||
Receivables‑‑Trade accounts receivable are stated net of an allowance for doubtful accounts of $3,637,000 and $2,884,000 at June 30, 2014 and 2013, respectively. The Company records an allowance for doubtful accounts provision for certain customers where a risk of default has been specifically identified as well as provisions determined on a general basis when it is believed that some default is probable and estimable but not yet clearly associated with a specific customer. The assessment of likelihood of customer default is based on a variety of factors, including the length of time the receivables are past due, the historical collection experience and existing economic conditions. Various factors may adversely impact our customer's ability to access sufficient liquidity and capital to fund their operations and render the Company's estimation of customer defaults inherently uncertain. While the Company believes current allowances for doubtful accounts are adequate, it is possible that these factors may cause higher levels of customer defaults and bad debt expense in future periods. | ||
Fair Value of Financial Instruments--The carrying amount reported in the consolidated balance sheets for cash, trade accounts receivable, accounts payable and short term borrowings approximate fair value because of the immediate short-term maturity of these financial instruments. If measured at fair value, cash would be classified as Level 1 and all other items listed above would be classified as Level 2 in the fair value hierarchy, as described in Note M. The fair value of the Company's 6.05% Senior Notes due April 10, 2016 was approximately $7,605,000 and $11,536,000 at June 30, 2014 and 2013, respectively. The fair value of the Senior Notes is estimated by discounting the future cash flows at rates offered to the Company for similar debt instruments of comparable maturities. This rate was represented by the US Treasury Three-Year Yield Curve Rate (0.88% and 0.66% for fiscal 2014 and 2013, respectively), plus the current add-on related to the Company's revolving loan agreement (1.00% and 1.65% for fiscal 2014 and 2013, respectively) resulting in a total rate of 1.88% and 2.31% for fiscal 2014 and 2013, respectively. See Note G, "Debt" for the related book value of this debt instrument. The Company's revolving loan agreement approximates fair value at June 30, 2014. If measured at fair value in the financial statements, long-term debt (including the current portion) would be classified as Level 2 in the fair value hierarchy, as described in Note M. | ||
Derivative Financial Instruments--The Company has written policies and procedures that place all financial instruments under the direction of the Company's corporate treasury and restricts all derivative transactions to those intended for hedging purposes. The use of financial instruments for trading purposes is prohibited. The Company uses financial instruments to manage the market risk from changes in foreign exchange rates. | ||
Periodically, the Company enters into forward exchange contracts to reduce the earnings and cash flow impact of non-functional currency denominated receivables and payables. These contracts are highly effective in hedging the cash flows attributable to changes in currency exchange rates. Gains and losses resulting from these contracts offset the foreign exchange gains or losses on the underlying assets and liabilities being hedged. The maturities of the forward exchange contracts generally coincide with the settlement dates of the related transactions. Gains and losses on these contracts are recorded in other income (expense) as the changes in the fair value of the contracts are recognized and generally offset the gains and losses on the hedged items in the same period. The primary currency to which the Company was exposed in fiscal 2014 and 2013 was the Euro. At June 30, 2014 and 2013, the Company had no outstanding forward exchange contracts. | ||
Inventories‑‑Inventories are valued at the lower of cost or market. Cost has been determined by the last‑in, first‑out (LIFO) method for the majority of inventories located in the United States, and by the first‑in, first‑out (FIFO) method for all other inventories. Management specifically identifies obsolete products and analyzes historical usage, forecasted production based on future orders, demand forecasts, and economic trends, among others, when evaluating the adequacy of the reserve for excess and obsolete inventory. | ||
Property, Plant and Equipment and Depreciation‑‑Assets are stated at cost. Expenditures for maintenance, repairs and minor renewals are charged against earnings as incurred. Expenditures for major renewals and betterments are capitalized and depreciated. Depreciation is provided on the straight‑line method over the estimated useful lives of the assets for financial reporting and on accelerated methods for income tax purposes. The lives assigned to buildings and related improvements range from 10 to 40 years, and the lives assigned to machinery and equipment range from 5 to 15 years. Upon disposal of property, plant and equipment, the cost of the asset and the related accumulated depreciation are removed from the accounts and the resulting gain or loss is reflected in earnings. Fully depreciated assets are not removed from the accounts until physically disposed. | ||
Impairment of Long-lived Assets--The Company reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. For property, plant and equipment and other long-lived assets, excluding indefinite-lived intangible assets, the Company performs undiscounted operating cash flow analyses to determine if an impairment exists. If an impairment is determined to exist, any related impairment loss is calculated based on fair value. Fair value is primarily determined using discounted cash flow analyses; however, other methods may be used to substantiate the discounted cash flow analyses, including third party valuations when necessary. | ||
Revenue Recognition--Revenue is recognized by the Company when all of the following criteria are met: persuasive evidence of an arrangement exists; delivery has occurred and ownership has transferred to the customer; the price to the customer is fixed or determinable; and collectability is reasonably assured. Revenue is recognized at the time product is shipped to the customer, except for certain domestic shipments to overseas customers where revenue is recognized upon receipt by the customer. A significant portion of our consolidated net sales is transacted through a third party distribution network. Sales to third party distributors are subject to the revenue recognition criteria described above. Goods sold to third party distributors are subject to an annual return policy, for which a provision is made at the time of shipment based upon historical experience. | ||
Goodwill and Other Intangibles-- Goodwill and other indefinite-lived intangible assets, primarily tradenames, are tested for impairment at least annually on the last day of the Company's fiscal year and more frequently if an event occurs which indicates the asset may be impaired. If applicable, goodwill and other indefinite-lived intangible assets not subject to amortization have been assigned to reporting units for purposes of impairment testing based upon the relative fair value of the asset to each reporting unit. | ||
A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include, among others: a significant decline in expected future cash flows; a sustained, significant decline in the Company's stock price and market capitalization; a significant adverse change in legal factors or in the business climate; unanticipated competition; the testing for recoverability of a significant asset group within a reporting unit; and slower growth rates. Any adverse change in these factors could have a significant impact on the recoverability of these assets and could have a material impact on the Company's consolidated financial statements. | ||
Impairment of goodwill is measured according to a two step approach. In the first step, the fair value of a reporting unit, as defined, is compared to the carrying value of the reporting unit, including goodwill. The fair value is primarily determined using discounted cash flow analyses; however, other methods may be used to substantiate the discounted cash flow analyses, including third party valuations. For purposes of the June 30, 2014 impairment analysis, the Company has utilized discounted cash flow analyses. If the carrying amount exceeds the fair value, the second step of the goodwill impairment test is performed to measure the amount of the impairment loss, if any. In the second step, the implied value of the goodwill is estimated as the fair value of the reporting unit less the fairvalue of all other tangible and identifiable intangible assets of the reporting unit. If the carrying amount of the goodwill exceeds the implied fair value of the goodwill, an impairment loss is recognized in an amount equal to that excess, not to exceed the carrying amount of the goodwill. | ||
Based upon the goodwill impairment review completed in conjunction with the preparation of the annual financial statements at the end of fiscal 2014, which incorporates management's best estimates of economic and market conditions over the projected period and a weighted-average cost of capital that reflects current market conditions, it was determined that the fair value of goodwill for each of the reporting units exceeded the carrying value and therefore goodwill was not impaired. | ||
The fair value of the Company's other intangible assets with indefinite lives, primarily tradenames, is estimated using the relief-from-royalty method, which requires assumptions related to projected revenues; assumed royalty rates that could be payable if the Company did not own the asset; and a discount rate. The Company completed the impairment testing of indefinite-lived intangibles as of June 30, 2014 and concluded there were no impairments. | ||
Changes in circumstances, existing at the measurement date or at other times in the future, or in the numerous estimates associated with management's judgments, assumptions and estimates made in assessing the fair value of goodwill and other indefinite-lived intangibles, could result in an impairment charge in the future. The Company will continue to monitor all significant estimates and impairment indicators, and will perform interim impairment reviews as necessary. | ||
Any cost incurred to extend or renew the term of an indefinite lived intangible asset are expensed as incurred. | ||
Deferred Taxes--The Company recognizes deferred tax liabilities and assets for the expected future income tax consequences of events that have been recognized in the Company's financial statements. Under this method, deferred tax liabilities and assets are determined based on the temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities using enacted tax rates in effect in the years in which temporary differences are expected to reverse. Valuation allowances are provided for deferred tax assets where it is considered more likely than not that the Company will not realize the benefit of such assets. | ||
Management Estimates--The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual amounts could differ from those estimates. | ||
Shipping and Handling Fees and Costs--The Company records revenue from shipping and handling costs in net sales. The cost associated with shipping and handling of products is reflected in cost of goods sold. | ||
Out-of-Period Adjustments -- During the first quarter of fiscal 2014, the Company recorded out-of-period adjustments related to the correction of errors identified late in the year-end closing process of fiscal 2013 that were deemed immaterial for adjustment to the fiscal 2013 financial statements. The impact of these corrections to the fiscal 2014 first quarter and full year results was to increase earnings before income taxes and noncontrolling interest by $437,000 and increase net earnings attributable to Twin Disc by $69,000 (after considering applicable tax effects). The nature of these errors is as follows: | ||
· | The Company had over accrued for certain payroll related items totaling $337,000 as of June 30, 2013, resulting in an increase to earnings from operations. | |
· | The Company had overstated its warranty accrual by $217,000 as of June 30, 2013, resulting in an increase to earnings from operations. | |
· | The Company determined that work-in-process inventory had been overstated by $117,000 as of June 30, 2013. As a result, additional cost of goods sold was recorded in the first quarter of fiscal 2014, resulting in a decrease to earnings from operations. | |
· | The Company's deferred tax liabilities were understated by $285,000 as of June 30, 2013, resulting in additional tax expense. | |
The Company does not believe these errors are material to its financial statements for any prior period, nor that the correction of these errors is material to the year ended June 30, 2014. | ||
Recently Issued Accounting Standards | ||
In June 2014, the Financial Accounting Standards Board ("FASB") issued stock compensation guidance requiring that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The amendments in this guidance are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 (the Company's fiscal 2017). The adoption of this guidance is not expected to have a material impact on the Company's financial disclosures. | ||
In May 2014, the FASB issued updated guidance on revenue from contracts with customers. This revenue recognition guidance supersedes existing US GAAP guidance, including most industry-specific guidance. The core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance identifies steps to apply in achieving this principle. This updated guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016 (the Company's fiscal 2018). The Company is currently evaluating the potential impact of this guidance on the Company's financial disclosures and results. | ||
In April 2014, the FASB issued updated guidance on the reporting for discontinued operations. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. The new guidance also requires expanded financial disclosures about discontinued operations. The amendments in this updated guidance are effective for the first quarter of the Company's fiscal 2016. The adoption of this guidance is not expected to have a material impact on the Company's financial disclosures. | ||
In July 2013, the FASB issued guidance stating that, except in certain defined circumstances, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2013 (the Company's fiscal 2015). The adoption of this guidance is not expected to have a material impact on the Company's financial disclosures. | ||
In March 2013, the FASB issued guidance on the parent company's accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. This guidance clarifies the circumstances under which the related cumulative translation adjustment should be released into net income. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2013 (the Company's fiscal 2015). The adoption of this guidance is not expected to have a material impact on the Company's financial results. |
INVENTORIES
INVENTORIES | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
INVENTORIES [Abstract] | ' | ||||||||
INVENTORIES | ' | ||||||||
B. Â INVENTORIES | |||||||||
The major classes of inventories at June 30 were as follows (in thousands): | |||||||||
2014 | 2013 | ||||||||
Finished parts | $ | 66,418 | $ | 68,594 | |||||
Work‑in‑process | 12,419 | 11,880 | |||||||
Raw materials | 18,742 | 22,300 | |||||||
$ | 97,579 | $ | 102,774 | ||||||
Inventories stated on a LIFO basis represent approximately 28% and 30% of total inventories at June 30, 2014 and 2013, respectively. The approximate current cost of the LIFO inventories exceeded the LIFO cost by $27,180,000 and $25,101,000 at June 30, 2014 and 2013, respectively. The Company had reserves for inventory obsolescence of $7,591,000 and $7,122,000 at June 30, 2014 and 2013, respectively. |
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
PROPERTY, PLANT AND EQUIPMENT [Abstract] | ' | ||||||||
PROPERTY, PLANT AND EQUIPMENT | ' | ||||||||
C. Â PROPERTY, PLANT AND EQUIPMENT | |||||||||
Property, plant and equipment at June 30 were as follows (in thousands): | |||||||||
2014 | 2013 | ||||||||
Land | $ | 5,310 | $ | 4,977 | |||||
Buildings | 44,540 | 42,712 | |||||||
Machinery and equipment | 141,665 | 138,223 | |||||||
191,515 | 185,912 | ||||||||
Less: accumulated depreciation | 131,248 | 123,597 | |||||||
$ | 60,267 | $ | 62,315 | ||||||
Depreciation expense for the years ended June 30, 2014, 2013 and 2012 was $10,180,000, $10,120,000 and $9,947,000, respectively. |
GOODWILL_AND_OTHER_INTANGIBLES
GOODWILL AND OTHER INTANGIBLES | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
GOODWILL AND OTHER INTANGIBLES [Abstract] | ' | ||||||||||||||||
GOODWILL AND OTHER INTANGIBLES | ' | ||||||||||||||||
D. GOODWILL AND OTHER INTANGIBLES | |||||||||||||||||
The changes in the carrying amount of goodwill, substantially all of which is allocated to the manufacturing segment, for the years ended June 30, 2014 and 2013 were as follows (in thousands): | |||||||||||||||||
Gross | Accumulated | Net Book | |||||||||||||||
Carrying | Impairment | Value | |||||||||||||||
Amount | |||||||||||||||||
Balance at June 30, 2012 | $ | 16,786 | $ | (3,670 | ) | $ | 13,116 | ||||||||||
Translation adjustment | 116 | - | 116 | ||||||||||||||
Balance at June 30, 2013 | 16,902 | ( 3,670 | ) | 13,232 | |||||||||||||
Translation adjustment | 231 | - | 231 | ||||||||||||||
Balance at June 30, 2014 | $ | 17,133 | $ | (3,670 | ) | $ | 13,463 | ||||||||||
The Company conducted its annual assessment for goodwill impairment during the fourth fiscal quarter of 2014 and concluded these assets are not impaired. | |||||||||||||||||
The Company conducted its annual assessment for goodwill impairment in the fourth quarter of fiscal 2012 by applying a fair value based test using discounted cash flow analyses, in accordance with ASC 350-10, "Intangibles – Goodwill and Other." The inputs utilized in the discounted cash flow analysis used to measure the fair value of goodwill are considered Level 3 in the fair value hierarchy. The result of this assessment identified that one of the Company's reporting units goodwill was fully impaired, necessitating a non-cash charge of $3,670,000. The impairment was due to a declining outlook in the global pleasure craft/mega yacht market, the weakened European economy, few signs of significant near-term recovery in the markets served by this reporting unit and the heightened economic risk profile of this Italian reporting unit as of June 30, 2012. These factors were identified as the Company conducted its annual budget review process during the fourth fiscal quarter, and the Company concluded that the impairment charge was necessary in connection with the preparation of the year end financial statements. The fair value of the goodwill for the remaining reporting units exceeds the respective carrying values. | |||||||||||||||||
At June 30, the following acquired intangible assets have definite useful lives and are subject to amortization (in thousands): | |||||||||||||||||
2014 | |||||||||||||||||
Gross | Accumulated | Accumulated | Net Book | ||||||||||||||
Carrying | Amortization | Impairment | Value | ||||||||||||||
Amount | |||||||||||||||||
Licensing agreements | $ | 3,015 | $Â | (2,445 | ) | $ | - | $ | 570 | ||||||||
Non-compete agreements | 2,128 | ( 2,045 | ) | ( 83 | ) | - | |||||||||||
Trade name | 2,009 | ( 100 | ) | - | 1,909 | ||||||||||||
Other | 6,482 | ( 5,193 | ) | ( 1,194 | ) | 95 | |||||||||||
$ | 13,634 | $Â | (9,783 | ) | $Â | (1,277 | ) | $ | 2,574 | ||||||||
2013 | |||||||||||||||||
Gross | Accumulated | Accumulated | Net Book | ||||||||||||||
Carrying | Amortization | Impairment | Value | ||||||||||||||
Amount | |||||||||||||||||
Licensing agreements | $ | 3,015 | $Â | (2,385 | ) | $ | - | $ | 630 | ||||||||
Non-compete agreements | 2,124 | ( 1,939 | ) | ( 83 | ) | 102 | |||||||||||
Other | 6,468 | ( 4,982 | ) | ( 1,194 | ) | 292 | |||||||||||
$ | 11,607 | $Â | (9,306 | ) | $Â | (1,277 | ) | $ | 1,024 | ||||||||
Other intangibles consist of certain amortizable acquisition costs, proprietary technology, computer software, certain customer relationships and debt issuance costs on the 6.05% notes. | |||||||||||||||||
During the fourth quarter of fiscal 2013, the Company committed to a plan and entered negotiations to exit the distribution agreement and sell the inventory of its Italian distributor back to the parent supplier. This decision triggered an impairment review of the long lived assets at this entity, resulting in an impairment charge of $1,405,000, representing a complete impairment of the remaining intangibles ($1,277,000) and fixed assets ($128,000) for this entity. The impairment charge was determined by deriving the fair value of the asset group utilizing a discounted cash flow model. Significant inputs to this model include the discount rate, sales projections and profitability estimates. These inputs would be considered Level 3 in the fair value hierarchy. | |||||||||||||||||
The weighted average remaining useful life of the intangible assets included in the table above is approximately 16 years. | |||||||||||||||||
Intangible amortization expense for the years ended June 30, 2014, 2013 and 2012 was $477,000, $718,000 and $809,000, respectively. Estimated intangible amortization expense for each of the next five fiscal years is as follows (in thousands): | |||||||||||||||||
Fiscal Year | |||||||||||||||||
2015 | $ | 251 | |||||||||||||||
2016 | 165 | ||||||||||||||||
2017 | 160 | ||||||||||||||||
2018 | 160 | ||||||||||||||||
2019 | 160 | ||||||||||||||||
Thereafter | 1,678 | ||||||||||||||||
$ | 2,574 | ||||||||||||||||
The gross carrying amount of the Company's intangible assets that have indefinite lives and are not subject to amortization as of June 30, 2014 and 2013 are $223,000 and $2,125,000, respectively. These assets are comprised of acquired tradenames. Based on the Company's reassessment of the useful lives assigned to intangible assets during the first quarter of fiscal 2014, it was determined that certain indefinite lived trade names should be reclassified to definite lived. As such, the Company assigned a 20-year useful life to the trade names. |
ACCRUED_LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
ACCRUED LIABILITIES [Abstract] | ' | ||||||||
ACCRUED LIABILITIES | ' | ||||||||
E. ACCRUED LIABILITIES | |||||||||
Accrued liabilities at June 30 were as follows (in thousands): | |||||||||
2014 | 2013 | ||||||||
Salaries and wages | $ | 6,648 | $ | 9,513 | |||||
Retirement benefits | 4,909 | 3,973 | |||||||
Warranty | 3,917 | 3,910 | |||||||
Customer advances/deferred revenue | 3,082 | 7,234 | |||||||
Accrued income tax | 1,913 | 2,541 | |||||||
Distributor rebate | 3,242 | 3,636 | |||||||
Other | 7,554 | 8,364 | |||||||
$ | 31,265 | $ | 39,171 |
WARRANTY
WARRANTY | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
WARRANTY [Abstract] | ' | ||||||||
WARRANTY | ' | ||||||||
F. WARRANTY | |||||||||
The Company warrants all assembled products, parts (except component products or parts on which written warranties are issued by the respective manufacturers thereof and are furnished to the original customer, as to which the Company makes no warranty and assumes no liability months to 24 months. The Company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its suppliers. However, its warranty obligation is affected by product failure rates, the number of units affected by the failure and the expense involved in satisfactorily addressing the situation. The warranty reserve is established based on our best estimate of the amounts necessary to settle future and existing claims on products sold as of the balance sheet date. When evaluating the adequacy of the reserve for warranty costs, management takes into consideration the term of the warranty coverage, historical claim rates and costs of repair, knowledge of the type and volume of new products and economic trends. While we believe the warranty reserve is adequate and that the judgment applied is appropriate, such amounts estimated to be due and payable in the future could differ materially from what actually transpires. The following is a listing of the activity in the warranty reserve during the years ended June 30) and service against defective materials or workmanship. Such warranty generally extends from periods ranging from 12 (in thousands): | |||||||||
2014 | 2013 | ||||||||
Reserve balance, July 1 | $ | 5,701 | $ | 5,745 | |||||
Current period expense | 2,214 | 4,864 | |||||||
Payments or credits to customers | (2,055 | ) | (4,953 | ) | |||||
Translation adjustment | 108 | 45 | |||||||
Reserve balance, June 30 | $ | 5,968 | $ | 5,701 | |||||
The current portion of the warranty accrual ($3,917,000 and $3,910,000 for fiscal 2014 and 2013, respectively) is reflected in accrued liabilities, while the long-term portion ($2,051,000 and $1,791,000 for fiscal 2014 and 2013, respectively) is included in other long-term liabilities on the Consolidated Balance Sheets. |
DEBT
DEBT | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
DEBT [Abstract] | ' | ||||||||
DEBT | ' | ||||||||
G. DEBT | |||||||||
Notes Payable: | |||||||||
Notes payable consists of amounts borrowed under unsecured line of credit agreements. These lines of credit may be withdrawn at the option of the banks. The following is aggregate borrowing information at June 30 (in thousands): | |||||||||
2014 | 2013 | ||||||||
Available credit lines | $ | 3,372 | $ | 18,072 | |||||
Unused credit lines | 3,372 | 18,072 | |||||||
Total notes payable | $ | - | $ | - | |||||
Weighted-average interest rates on credit lines | 2.9 | % | 2.1 | % | |||||
Long-term Debt: | |||||||||
Long-term debt consisted of the following at June 30 (in thousands): | |||||||||
2014 | 2013 | ||||||||
Revolving loan agreement | $ | 11,200 | $ | 16,300 | |||||
10-year unsecured senior notes | 7,143 | 10,714 | |||||||
Capital lease obligations | 29 | 44 | |||||||
Other long-term debt | 32 | 95 | |||||||
Subtotal | 18,404 | 27,153 | |||||||
Less: current maturities | (3,604 | ) | (3,681 | ) | |||||
Total long-term debt | $ | 14,800 | $ | 23,472 | |||||
On June 30, 2014, the Company and its wholly-owned subsidiary, Twin Disc International S.A. ("Twinsa") entered into a multi-currency revolving loan agreement with Wells Fargo Bank, National Association ("Wells Fargo"). Pursuant to the Credit Agreement, the Company and Twinsa may, from time to time, enter into revolving credit loans in amounts not to exceed, in the aggregate, Wells Fargo's revolving credit commitment of $60,000,000. In general, outstanding revolving credit loans will bear interest at LIBOR plus 1.00%. The rate was 1.16% at June 30, 2014. In addition to principal and interest payments, the Company and Twinsa will be responsible for paying a quarterly commitment fee equal to 0.15% of the average daily unused revolving credit commitment. The Company and Twinsa have the option of making additional prepayments subject to certain limitations. The Credit Agreement is scheduled to expire on May 31, 2018. The outstanding balance of $11,200,000 at June 30, 2014 is classified as long-term debt. This agreement contains certain covenants, including restrictions on investments, acquisitions and indebtedness. Financial covenants include a minimum consolidated adjusted net worth amount, a minimum EBITDA for the most recent four fiscal quarters of $11,000,000 at June 30, 2014, and a maximum total funded debt to EBITDA ratio of 3.0 at June 30, 2014. As of June 30, 2014, the Company was in compliance with these financial covenants. The minimum adjusted net worth covenant fluctuates based upon actual earnings and the Company's compliance with that covenant is based on the Company's shareholders' equity as adjusted by certain pension accounting items. As of June 30, 2014, the minimum adjusted equity requirement was $120,831,000, and the Company was in compliance with this covenant. | |||||||||
Prior to June 30, 2014, the Company had a revolving loan agreement with BMO Harris Bank NA (BMO), successor by merger to M&I Marshall & Ilsley Bank. During the fourth quarter of fiscal 2011, the total commitment was increased to $40,000,000 from $35,000,000 and the term was extended to May 31, 2015. The outstanding balance of $16,300,000 at June 30, 2013, was classified as long-term debt. In accordance with the loan agreement, as amended, the Company could borrow at LIBOR plus an additional "Add-On," between 1.5% and 2.5%, depending on the Company's total funded debt to EBITDA ratio. The rate was 1.84% at June 30, 2013. This agreement contained certain covenants, including restrictions on investments, acquisitions and indebtedness. Financial covenants included a minimum consolidated net worth amount, as defined, a minimum EBITDA for the most recent four fiscal quarters, and a maximum total funded debt to EBITDA ratio. As of June 30, 2013, the Company was in compliance with these financial covenants. On June 30, 2014, the Company terminated the BMO agreement and paid the full outstanding amounts owed as of June 30, 2014, which totaled $14,042,534. The Company did not incur any early termination penalties in connection with the termination of the BMO agreement. | |||||||||
On June 30, 2014, the Company entered into an Amended and Restated Note Purchase and Private Shelf Agreement (the "Prudential Agreement"). Among other things, the Prudential Agreement: (a) amends and restates the "Note Agreement" between the Company and Purchasers dated as of April 10, 2006, as it has been amended from time to time (the "2006 Agreement"); and (b) sets forth the terms of the potential sale and purchase of up to $50,000,000 in "Shelf Notes" as defined in the Prudential Agreement (the "Shelf Notes") by the Company to Prudential. The notes sold by the Company to the Existing Holders under the 2006 Agreement (the "2006 Notes") are deemed outstanding under, and are governed by, the terms of the Prudential Agreement. The 2006 Notes bear interest on the outstanding principal balance at a fixed rate of 6.05% per annum and mature on April 10, 2016. The 2006 Notes mature and become due and payable in full on April 10, 2016 (the "Payment Date"). Prior to the Payment Date, the Company is obligated to make quarterly payments of interest during the term of the 2006 Notes, plus prepayments of principal of $3,571,429 on April 10 of each year from 2010 to 2015, inclusive. The outstanding balance was $7,142,857 and $10,714,286 at June 30, 2014 and June 30, 2013, respectively. Of the outstanding balance, $3,571,429 was classified as a current maturity of long-term debt at June 30, 2014 and June 30, 2013, respectively. The remaining $3,571,429 is classified as long-term debt. In addition to the interest payments and any mandatory principal payments required under the terms of the Shelf Note, the Company will pay an issuance fee of 0.10% of the aggregate principal balance of each of the Shelf Notes sold to, and purchased by, Prudential. In addition the Company will pay a one-time structuring fee of $25,000 on or before September 30, 2014, unless there is an acceptance of a sale of Shelf Notes prior to such date, in which case the structuring fee will be waived. The Company may prepay the Shelf Notes or the 2006 Notes, subject to certain limitations. At no time during the term of the Prudential Agreement may the aggregate outstanding principal amount of the 2006 Notes and the Shelf Notes exceed $35,000,000. The Prudential Agreement includes financial covenants regarding minimum net worth, minimum EBIDTA for the most recent four (4) fiscal quarters of $11,000,000 and a maximum total funded debt to EBIDTA ratio of 3.0. As of June 30, 2014, the Company was in compliance with these financial covenants. In addition, the Company will be required to make an offer to purchase the 2006 Notes and Shelf Notes upon a Change of Control, and any such offer must include the payment of a Yield-Maintenance Amount. The Prudential Agreement also includes certain covenants that limit, among other things, certain indebtedness, acquisitions and investments. The Prudential Agreement also has a most favored lender provision whereby the Prudential Agreement shall be automatically modified to include any additional covenant or event of default that is included in any agreement evidencing, securing, guarantying or otherwise related to other indebtedness in excess of $1,000,000. | |||||||||
Prior to June 30, 2014, the Company and its wholly-owned subsidiary Twin Disc International, S.A. had a multi-currency revolving Credit Agreement with Wells Fargo Bank, National Association (the "Prior Credit Agreement"). The Company entered into this agreement on November 19, 2012. Pursuant to the Prior Credit Agreement, the Company could, from time to time, enter into revolving credit loans in amounts not to exceed, in the aggregate, Wells Fargo's revolving credit commitment of $15,000,000. In general, outstanding revolving credit loans (other than foreign currency loans) would bear interest at one of the following rates, as selected by the Company: (1) a "Base Rate," which is equal to the highest of (i) the prime rate; (ii) the federal funds rate plus 0.50%; or (iii) LIBOR plus 1.00%; or (2) a "LIBOR Rate" (which is equal to LIBOR divided by the difference between 1.00 and the Eurodollar Reserve Percentage (as defined in the Prior Credit Agreement)) plus 1.50%. Outstanding revolving credit loans that are foreign currency loans would bear interest at the LIBOR Rate plus 1.50%, plus an additional "Mandatory Cost," which was designed to compensate Wells Fargo for the cost of compliance with the requirements of the Bank of England and/or the Financial Services Authority, or the requirements of the European Central Bank. In addition to principal and interest payments, the Borrowers were responsible for paying monthly commitment fees equal to 0.25% of the unused revolving credit commitment. The Company had the option of making additional prepayments subject to certain limitations. The Prior Credit Agreement included financial covenants regarding minimum net worth, minimum EBITDA for the most recent four fiscal quarters of $11,000,000, and a maximum total funded debt to EBITDA ratio of 3.0. As of June 30, 2014, the Company was in compliance with these financial covenants. The Prior Credit Agreement also included certain restrictive covenants that limit, among other things, certain investments, acquisitions and indebtedness. The Prior Credit Agreement provided that it shall automatically include any covenants or events of default not previously included in the Prior Credit Agreement to the extent such covenants or events of default were granted to any other lender of an amount in excess of $1,000,000. The Prior Credit Agreement also included customary events of default, including events of default under the BMO agreement or the Prudential Note Agreement. Following an event of default, Wells Fargo could accelerate all amounts outstanding under any revolving credit notes or the Prior Credit Agreement. The Prior Credit Agreement was scheduled to expire on May 31, 2015. However, by entering into the $60,000,000 Wells Fargo multi-currency revolving Credit Agreement noted above, the Company also terminated this $15,000,000 multi-currency revolving Credit Agreement. As of June 30, 2014, there were no borrowings under the Prior Credit Agreement. | |||||||||
The aggregate scheduled maturities of outstanding long-term debt obligations in subsequent years are as follows (in thousands): | |||||||||
Fiscal Year | |||||||||
2015 | $ | 3,604 | |||||||
2016 | 3,571 | ||||||||
2017 | - | ||||||||
2018 | 11,200 | ||||||||
2019 | - | ||||||||
Thereafter | 29 | ||||||||
$ | 18,404 |
LEASE_COMMITMENTS
LEASE COMMITMENTS | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
LEASE COMMITMENTS [Abstract] | ' | ||||
LEASE COMMITMENTS | ' | ||||
H. LEASE COMMITMENTS | |||||
Approximate future minimum rental commitments under noncancellable operating leases are as follows (in thousands): | |||||
Fiscal Year | |||||
2015 | $ | 2,719 | |||
2016 | 1,751 | ||||
2017 | 1,583 | ||||
2018 | 1,153 | ||||
2019 | 149 | ||||
Thereafter | 21 | ||||
$ | 7,376 | ||||
Total rent expense for operating leases approximated $3,920,000, $3,863,000 and $3,657,000 in fiscal 2014, 2013 and 2012, respectively. |
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
SHAREHOLDERS' EQUITY [Abstract] | ' | ||||||||
SHAREHOLDERS' EQUITY | ' | ||||||||
I. SHAREHOLDERS' EQUITY | |||||||||
The total number of shares of common stock outstanding at June 30, 2014, 2013 and 2012 was 11,261,873, 11,212,952 and 11,304,487, respectively. At June 30, 2014, 2013 and 2012, treasury stock consisted of 1,837,595, 1,886,516 and 1,794,981 shares of common stock, respectively. The Company issued 51,921, 123,997 and 69,593 shares of treasury stock in fiscal 2014, 2013 and 2012, respectively, to fulfill its obligations under the stock option plans and restricted stock grants. The Company also recorded a forfeiture of 3,000 shares of previously issued restricted stock in the fourth quarter of fiscal 2014. The difference between the cost of treasury shares and the option price is recorded in common stock. | |||||||||
On February 1, 2008, the Board of Directors authorized the purchase of 500,000 shares of common stock at market values. In fiscal 2009, the Company purchased 250,000 shares of its outstanding common stock at an average price of $7.25 per share for a total cost of $1,812,500. In fiscal 2012, the Company purchased 125,000 shares of its outstanding common stock at an average price of $19.40 per share for a total cost of $2,425,000. On July 27, 2012, the Board of Directors authorized the purchase of an additional 375,000 shares of common stock at market values. This authorization has no expiration. In fiscal 2013, the Company purchased 185,000 shares of its outstanding common stock at an average price of $16.59 per share for a total cost of $3,068,652. | |||||||||
Cash dividends per share were $0.36, $0.36 and $0.34 in fiscal 2014, 2013 and 2012, respectively. | |||||||||
Effective June 30, 2008, the Company's Board of Directors established a Shareholder Rights Plan and distributed to shareholders one preferred stock purchase right (a "Right') for each outstanding share of common stock. This Shareholder Rights Plan was amended on May 1, 2012. Under certain circumstances, a Right can be exercised to purchase one four‑hundredth of a share of Series A Junior Preferred Stock at an exercise price of $125, subject to certain anti‑dilution adjustments. The Rights will become exercisable on the earlier of: (i) ten business days following a public announcement that a person or group of affiliated or associated persons (an "Acquiring Person") has acquired, or obtained the right to acquire from shareholders, beneficial ownership of 20% or more of the outstanding Company's common stock (or 30% or more in the case of any person or group which currently owns 20% or more of the shares or who shall become the beneficial owner of 20% or more of the shares as a result of any transfer by reason of the death of or by gift from any other person who is an affiliate or an associate of such existing holder or by succeeding such a person as trustee of a trust existing on the Record Date ("Existing Holder")) or (ii) ten business days following the commencement of a tender offer or exchange offer that would result in a person or group beneficially owning 20% or more of such outstanding Common Stock (or 30% or more for an Existing Holder), as such periods may be extended pursuant to the Rights Agreement. In the event that any person or group becomes an Acquiring Person, each holder of a Right shall thereafter have the right to receive, upon exercise, in lieu of Preferred Stock, common stock of the Company having a value equal to two times the exercise price of the Right. However, Rights are not exercisable as described in this paragraph until such time as the Rights are no longer redeemable by the Company as set forth below. Notwithstanding any of the foregoing, if any person becomes an Acquiring Person all Rights that are, or (under certain circumstances specified in the Rights Agreement) were, beneficially owned by an Acquiring Person will become null and void. | |||||||||
The Rights will expire at the close of business on June 30, 2018, unless earlier redeemed or exchanged by the Company. At any time before a person becomes an Acquiring Person, the Company may redeem the Rights in whole, but not in part, at a price of $.01 per Right, appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring after the date hereof. Immediately upon the action of the Board of Directors ordering redemption of the Rights, the Rights will terminate and the only right of the holders of Rights will be to receive the $.01 redemption price. | |||||||||
The Company is authorized to issue 200,000 shares of preferred stock, none of which have been issued. The Company has designated 150,000 shares of the preferred stock for the purpose of the Shareholder Rights Plan. | |||||||||
The components of accumulated other comprehensive loss included in equity as of June 30, 2014 and 2013 are as follows (in thousands): | |||||||||
2014 | 2013 | ||||||||
Translation adjustments | $ | 20,779 | $ | 16,949 | |||||
Benefit plan adjustments, net of income taxes of $21,436 and $25,242, respectively | (36,722 | ) | (42,848 | ) | |||||
Accumulated other comprehensive loss | $ | (15,943 | ) | $ | (25,899 | ) | |||
A reconciliation for the changes in accumulated other comprehensive income (loss), net of tax, by component for the year ended June 30, 2014 is as follows: | |||||||||
Translation | Benefit Plan | ||||||||
Adjustment | Adjustment | ||||||||
Balance at June 30, 2013 | $ | 16,949 | $ | (42,848 | ) | ||||
Other comprehensive loss before reclassifications | 3,830 | 3,950 | |||||||
Amounts reclassified from accumulated other comprehensive income | - | 2,176 | |||||||
Net current period other comprehensive income | 3,830 | 6,126 | |||||||
Balance at June 30, 2014 | $ | 20,779 | $ | (36,722 | ) | ||||
A reconciliation for the reclassifications out of accumulated other comprehensive income (loss), net of tax for the year ended June 30, 2014 is as follows: | |||||||||
Amount | |||||||||
Reclassified | |||||||||
Amortization of benefit plan items | |||||||||
Actuarial losses | $Â | (3,496 | ) | ||||||
Transition asset and prior service benefit | (31 | ) | |||||||
Total before tax benefit | (3,527 | ) | |||||||
Tax benefit | 1,351 | ||||||||
Total reclassification net of tax | $Â | (2,176 | ) |
BUSINESS_SEGMENTS_AND_FOREIGN_
BUSINESS SEGMENTS AND FOREIGN OPERATIONS | 12 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
BUSINESS SEGMENTS AND FOREIGN OPERATIONS [Abstract] | ' | ||||||||||||
BUSINESS SEGMENTS AND FOREIGN OPERATIONS | ' | ||||||||||||
J. BUSINESS SEGMENTS AND FOREIGN OPERATIONS | |||||||||||||
The Company and its subsidiaries are engaged in the manufacture and sale of marine and heavy duty off-highway power transmission equipment. Principal products include marine transmissions, surface drives, propellers and boat management systems, as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches and controls systems. The Company sells to both domestic and foreign customers in a variety of market areas, principally pleasure craft, commercial and military marine markets, as well as in the energy and natural resources, government and industrial markets. | |||||||||||||
Net sales by product group is summarized as follows (in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Industrial | $ | 41,188 | $ | 48,110 | $ | 54,062 | |||||||
Land based transmissions | 67,055 | 68,535 | 146,686 | ||||||||||
Marine and propulsion systems | 149,432 | 162,823 | 151,407 | ||||||||||
Other | 6,234 | 5,814 | 3,715 | ||||||||||
Total | $ | 263,909 | $ | 285,282 | $ | 355,870 | |||||||
Industrial products include clutches, power take-offs and pump drives sold to the agriculture, recycling, construction and oil and gas markets. The land based transmission products include applications for oilfield and natural gas, military and airport rescue and fire fighting. The marine and propulsion systems include marine transmission, controls, surface drives, propellers and boat management systems for the global commercial, pleasure craft and patrol boat markets. Other products includes non-Twin Disc manufactured product sold through our Company-owned distribution entities. | |||||||||||||
The Company has two reportable segments: manufacturing and distribution. These segments are managed separately because each provides different services and requires different technology and marketing strategies. The accounting practices of the segments are the same as those described in the summary of significant accounting policies. Transfers among segments are at established inter-company selling prices. Management evaluates the performance of its segments based on net earnings. | |||||||||||||
Information about the Company's segments is summarized as follows (in thousands): | |||||||||||||
Manufacturing | Distribution | Total | |||||||||||
2014 | |||||||||||||
Net sales | $ | 227,590 | $ | 121,389 | $ | 348,979 | |||||||
Intra-segment sales | 18,416 | 9,926 | 28,342 | ||||||||||
Inter-segment sales | 53,960 | 2,768 | 56,728 | ||||||||||
Interest income | 311 | 22 | 333 | ||||||||||
Interest expense | 2,565 | 45 | 2,610 | ||||||||||
Income taxes | 6,233 | 1,432 | 7,665 | ||||||||||
Depreciation and amortization | 8,566 | 549 | 9,115 | ||||||||||
Net earnings attributable to Twin Disc | 7,029 | 6,285 | 13,314 | ||||||||||
Assets | 254,652 | 57,233 | 311,885 | ||||||||||
Expenditures for segment assets | 6,429 | 315 | 6,744 | ||||||||||
2013 | |||||||||||||
Net sales | $ | 245,592 | $ | 130,360 | $ | 375,952 | |||||||
Intra-segment sales | 16,140 | 15,127 | 31,267 | ||||||||||
Inter-segment sales | 55,746 | 3,657 | 59,403 | ||||||||||
Interest income | 479 | 19 | 498 | ||||||||||
Interest expense | 3,248 | 62 | 3,310 | ||||||||||
Income taxes | 5,112 | 1,630 | 6,742 | ||||||||||
Depreciation and amortization | 8,817 | 497 | 9,314 | ||||||||||
Net earnings attributable to Twin Disc | 10,141 | 5,840 | 15,981 | ||||||||||
Assets | 258,617 | 56,965 | 315,582 | ||||||||||
Expenditures for segment assets | 5,705 | 349 | 6,054 | ||||||||||
2012 | |||||||||||||
Net sales | $ | 325,174 | $ | 129,411 | $ | 454,585 | |||||||
Intra-segment sales | 16,189 | 7,672 | 23,861 | ||||||||||
Inter-segment sales | 71,134 | 3,720 | 74,854 | ||||||||||
Interest income | 688 | 39 | 727 | ||||||||||
Interest expense | 3,798 | 64 | 3,862 | ||||||||||
Income taxes | 19,444 | 2,460 | 21,904 | ||||||||||
Depreciation and amortization | 8,373 | 871 | 9,244 | ||||||||||
Net earnings attributable to Twin Disc | 29,572 | 7,196 | 36,768 | ||||||||||
Assets | 272,098 | 58,275 | 330,373 | ||||||||||
Expenditures for segment assets | 11,821 | 1,158 | 12,979 | ||||||||||
The following is a reconciliation of reportable segment net sales, net earnings and assets to the Company's consolidated totals (in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net sales: | |||||||||||||
Total net sales from reportable segments | $ | 348,979 | $ | 375,952 | $ | 454,585 | |||||||
Elimination of inter-company sales | (85,070 | ) | (90,670 | ) | (98,715 | ) | |||||||
Total consolidated net sales | $ | 263,909 | $ | 285,282 | $ | 355,870 | |||||||
Net earnings attributable to Twin Disc: | |||||||||||||
Total net earnings fromreportable segments | $ | 13,314 | $ | 15,981 | $ | 36,768 | |||||||
Other corporate expenses | (9,670 | ) | (12,099 | ) | (10,025 | ) | |||||||
Total consolidated net earnings attributable to Twin Disc | $ | 3,644 | $ | 3,882 | $ | 26,743 | |||||||
Assets | |||||||||||||
Total assets for reportable segments | $ | 311,885 | $ | 315,582 | |||||||||
Corporate assets and eliminations | (44,900 | ) | (30,124 | ) | |||||||||
Total consolidated assets | $ | 266,985 | $ | 285,458 | |||||||||
Other significant items (in thousands): | |||||||||||||
Segment | Adjustments | Consolidated | |||||||||||
Totals | Totals | ||||||||||||
2014 | |||||||||||||
Interest income | $ | 333 | $ | (212 | ) | $ | 121 | ||||||
Interest expense | 2,610 | (1,674 | ) | 936 | |||||||||
Income taxes | 7,665 | (3,439 | ) | 4,226 | |||||||||
Depreciation and amortization | 9,115 | 1,542 | 10,657 | ||||||||||
Expenditures for segment assets | 6,744 | 501 | 7,245 | ||||||||||
2013 | |||||||||||||
Interest income | $ | 498 | $ | (396 | ) | $ | 102 | ||||||
Interest expense | 3,310 | (1,875 | ) | 1,435 | |||||||||
Income taxes | 6,742 | (1,756 | ) | 4,986 | |||||||||
Depreciation and amortization | 9,314 | 1,524 | 10,838 | ||||||||||
Expenditures for segment assets | 6,054 | 528 | 6,582 | ||||||||||
2012 | |||||||||||||
Interest income | $ | 727 | $ | (632 | ) | $ | 95 | ||||||
Interest expense | 3,862 | (2,387 | ) | 1,475 | |||||||||
Income taxes | 21,904 | (4,089 | ) | 17,815 | |||||||||
Depreciation and amortization | 9,244 | 1,512 | 10,756 | ||||||||||
Expenditures for segment assets | 12,979 | 754 | 13,733 | ||||||||||
All adjustments represent inter-company eliminations and corporate amounts. | |||||||||||||
Geographic information about the Company is summarized as follows (in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net sales | |||||||||||||
United States | $ | 108,380 | $ | 127,844 | $ | 165,658 | |||||||
China | 33,830 | 29,119 | 19,955 | ||||||||||
Italy | 17,396 | 19,140 | 27,075 | ||||||||||
Canada | 9,277 | 10,846 | 44,889 | ||||||||||
Other countries | 95,026 | 98,333 | 98,293 | ||||||||||
Total | $ | 263,909 | $ | 285,282 | $ | 355,870 | |||||||
Net sales by geographic region are based on product shipment destination. | |||||||||||||
2014 | 2013 | ||||||||||||
Long-lived assets | |||||||||||||
United States | $ | 46,821 | $ | 51,618 | |||||||||
Switzerland | 8,196 | 7,964 | |||||||||||
Belgium | 7,450 | 7,262 | |||||||||||
Italy | 3,531 | 3,817 | |||||||||||
Other countries | 2,074 | 2,330 | |||||||||||
Total | $ | 68,072 | $ | 72,991 | |||||||||
One customer, Sewart Supply, Inc. (a distributor of Twin Disc), accounted for approximately 11% and 11% of consolidated net sales in fiscal 2014 and 2013, respectively. There were no customers that accounted for 10% or more of consolidated net sales in fiscal 2012. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
STOCK-BASED COMPENSATION [Abstract] | ' | ||||||||||||||||
STOCK-BASED COMPENSATION | ' | ||||||||||||||||
K. STOCK-BASED COMPENSATION | |||||||||||||||||
During fiscal 2011, the Company adopted the Twin Disc, Incorporated 2010 Stock Incentive Plan for Non-Employee Directors (the "Directors' Plan"), a plan to grant non-employee directors equity based awards up to 250,000 shares of common stock, and the Twin Disc, Incorporated 2010 Long-Term Incentive Compensation Plan (the "Incentive Plan"), a plan under which officers and key employees may be granted equity based awards up to 650,000 shares of common stock. The Directors' Plan may grant options to purchase shares of common stock, at the discretion of the board, to non-employee directors who are elected or reelected to the board, or who continue to serve on the board. Such options carry an exercise price equal to the fair market value of the Company's common stock as of the date of grant, vest immediately, and expire ten years after the date of grant. Options granted under the Incentive Plan are determined to be non-qualified or incentive stock options as of the date of grant, and may carry a vesting schedule. For options under the Incentive Plan that are intended to qualify as incentive stock options, if the optionee owns more than 10% of the total combined voting power of the Company's stock, the price will not be less than 110% of the grant date fair market value and the options expire five years after the date of grant. There were no incentive options granted to a greater than 10% shareholder during the years presented. There were no options outstanding under the Directors' Plan and the Incentive Plan as of June 30, 2014 and 2013. | |||||||||||||||||
The Company has 21,600 non-qualified stock options outstanding as of June 30, 2014 under the Twin Disc, Incorporated Plan for Non-Employee Directors and Twin Disc, Incorporated 2004 Stock Incentive Plans. The 2004 plans were terminated during 2011, except options then outstanding will remain so until exercised or until they expire. | |||||||||||||||||
Shares available for future options as of June 30 were as follows: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
2010 Long-Term Incentive Compensation Plan | 500,121 | 539,566 | |||||||||||||||
2010 Stock Incentive Plan for Non-employee Directors | 193,858 | 204,988 | |||||||||||||||
Stock option transactions under the plans during 2014 were as follows: | |||||||||||||||||
Weighted | Weighted Average | Aggregate | |||||||||||||||
Average | Remaining Contractual | Intrinsic | |||||||||||||||
2014 | Price | Life (years) | Value | ||||||||||||||
Non-qualified stock options: | |||||||||||||||||
Options outstanding at beginning of year | 21,600 | $ | 14.88 | ||||||||||||||
Granted | - | - | |||||||||||||||
Canceled/expired | - | - | |||||||||||||||
Exercised | - | - | |||||||||||||||
Options outstanding at June 30 | 21,600 | $ | 14.88 | 3.94 | $ | 392,298 | |||||||||||
Options price range ($Â 5.73 - $7.19) | |||||||||||||||||
Number of shares | 2,400 | ||||||||||||||||
Weighted average price | $ | 6.23 | |||||||||||||||
Weighted average remaining life | 1.00 years | ||||||||||||||||
Options price range ($Â 10.01 - $27.55) | |||||||||||||||||
Number of shares | 19,200 | ||||||||||||||||
Weighted average price | $ | 15.96 | |||||||||||||||
Weighted average remaining life | 4.31 years | ||||||||||||||||
The Company accounts for stock based compensation in accordance with ASC Topic 718-10, "Compensation – Stock Compensation." In addition, the Company computes its windfall tax pool using the shortcut method. ASC Topic 718-10 requires the Company to expense the cost of employee services received in exchange for an award of equity instruments using the fair-value-based method. All options were 100% vested at the adoption of this statement. | |||||||||||||||||
During fiscal 2014, 2013 and 2012 the Company granted no non-qualified stock options. As a result, no compensation cost has been recognized in the Consolidated Statements of Operations and Comprehensive Income for fiscal 2014, 2013 and 2012, respectively. | |||||||||||||||||
The total intrinsic value of options exercised during the years ended June 30, 2014, 2013 and 2012 was approximately $0, $539,000 and $1,002,000, respectively. | |||||||||||||||||
In fiscal 2014, 2013 and 2012, the Company granted a target number of 43,154, 28,255 and 15,449 performance stock unit awards, respectively, to various employees of the Company, including executive officers are subject to adjustment if the Company's economic profit for the period falls below or exceeds the specified target objective, and the maximum number of performance stock units that can be awarded if the target objective is exceeded is 25,943. Based upon actual results to date and the low probability of achieving the threshold performance levels, the Company is not accruing the performance stock unit awards granted in fiscal 2014. The performance stock unit awards granted in fiscal 2013 will vest if the Company achieves a specified target objective relating to consolidated economic profit (as defined in the Performance Stock Unit Award Grant Agreement) in the cumulative three fiscal year period ending June 30, 2015. The performance stock unit awards granted in fiscal 2013 are subject to adjustment if the Company's economic profit for the period falls below or exceeds the specified target objective, and the maximum number of performance stock units that can be awarded if the target objective is exceeded is 23,449. Based upon actual results to date and the low probability of achieving the threshold performance levels, the Company is not accruing the performance stock unit awards granted in fiscal 2013 and has reversed previously recognized expenses related to these awards during the second quarter of fiscal 2013. The performance stock unit awards granted in fiscal 2012 are subject to adjustment if the Company's economic profit for the period falls below or exceeds the specified target objective, and the maximum number of performance stock units that can be awarded if the target objective is exceeded is 16,457. Based upon actual results to date and the low probability of achieving the threshold performance levels, the Company is not accruing the performance stock unit awards granted in fiscal 2012 and has reversed previously recognized expenses related to these awards during the second quarter of fiscal 2013. There were 41,160, 42,962 and 133,479 unvested performance stock unit awards outstanding at June 30, 2014, 2013 and 2012, respectively. The weighted average grant date fair value of the unvested awards at June 30, 2014 was $23.18. The performance stock unit awards are remeasured at fair-value based upon the Company's stock price at the end of each reporting period. The fair-value of the stock unit awards are expensed over the performance period for the shares that are expected to ultimately vest. The compensation expense (income) for the year ended June 30, 2014, 2013 and 2012 related to the performance stock unit award grants, approximated $0, $1,238,000 and $(631,000), respectively. At June 30, 2014, the Company had $1,331,000 of unrecognized compensation expense related to the unvested shares that would vest if the specified target objective was achieved for the fiscal 2014 and 2013 awards. The total fair value of performance stock unit awards vested in fiscal 2014, 2013 and 2012 was $0, $2,787,000 and $2,068,000, respectively. The performance stock unit awards are cash based, and are thus recorded as a liability on the Company's Consolidated Balance Sheets. As of June 30, 2014, there were no awards included in "Liabilities" due to actual results to date and the low probability of achieving any of the threshold performance levels. As of June 30, 2013, these awards are included in "Accrued liabilities" ($2,787,000) due to the awards having a performance period ending in less than one year. | |||||||||||||||||
In fiscal 2014, 2013 and 2012, the Company granted a target number of 17,312, 28,535 and 15,335 performance stock awards, respectively, to various employees of the Company, including executive officers. The performance stock awards granted in fiscal 2014 will vest if the Company achieves a specified target objective relating to consolidated economic profit (as defined in the Performance Stock Award Grant Agreement) in the cumulative three fiscal year period ending June 30, 2016. The performance stock awards granted in fiscal 2014 are subject to adjustment if the Company's economic profit for the period falls below or exceeds the specified target objective, and the maximum number of performance shares that can be awarded if the target objective is exceeded is 20,774. Based upon actual results to date and the low probability of achieving the threshold performance levels, the Company is not accruing the performance stock awards granted in fiscal 2014. The performance stock awards granted in fiscal 2013 will vest if the Company achieves a specified target objective relating to consolidated economic profit (as defined in the Performance Stock Award Grant Agreement) in the cumulative three fiscal year period ending June 30, 2015. The performance stock awards granted in fiscal 2013 are subject to adjustment if the Company's economic profit for the period falls below or exceeds the specified target objective, and the maximum number of performance shares that can be awarded if the target objective is exceeded is 32,880. Based upon actual results to date and the low probability of achieving the threshold performance levels, the Company is not accruing the performance stock awards granted in fiscal 2013 and has reversed previously recognized expenses related to these awards during the second quarter of fiscal 2013. The performance stock awards granted in fiscal 2012 are subject to adjustment if the Company's economic profit for the period falls below or exceeds the specified target objective, and the maximum number of performance shares that can be awarded if the target objective is exceeded is 17,689. Based upon actual results to date and the low probability of achieving the threshold performance levels, the Company is not accruing the performance stock awards granted in fiscal 2012 and has reversed previously recognized expenses related to these awards during the second quarter of fiscal 2013. There were 44,712, 42,141 and 102,391 unvested performance stock awards outstanding at June 30, 2014, 2013 and 2012, respectively. The fair value of the stock awards (on the date of grant) is expensed over the performance period for the shares that are expected to ultimately vest. The compensation expense for the year ended June 30, 2014, 2013 and 2012, related to performance stock awards, approximated $0, $209,000 and $838,000, respectively. The weighted average grant date fair value of the. The performance stock unit awards granted in fiscal 2014 will vest if the Company achieves a specified target objective relating to consolidated economic profit (as defined in the Performance Stock Unit Award Grant Agreement) in the cumulative three fiscal year period ending June 30, 2016. The performance stock unit awards granted in fiscal 2014 unvested awards at June 30, 2014 was $22.51. At June 30, 2014, the Company had $1,007,000 of unrecognized compensation expense related to the unvested shares that would vest if the specified target objective was achieved for the fiscal 2014 and 2013 awards. The total fair value of performance stock awards vested in fiscal 2014, 2013 and 2012 was $0, $2,055,000 and $1,671,000, respectively. | |||||||||||||||||
In addition to the performance shares mentioned above, the Company has unvested restricted stock outstanding that will vest if certain service conditions are fulfilled. The fair value of the restricted stock grants is recorded as compensation over the vesting period, which is generally 1 to 3 years. During fiscal 2014, 2013 and 2012, the Company granted 51,004, 83,729 and 43,620 service based restricted shares, respectively, to employees and non-employee directors in each year. A total of 3,000 and 30,532 shares of restricted stock were forfeited during fiscal 2014 and 2013, repectively. There were 116,297, 186,469 and 250,323 unvested shares outstanding at June 30, 2014, 2013 and 2012, respectively. Compensation expense of $1,184,000, $1,234,000 and $1,435,000 was recognized during the year ended June 30, 2014, 2013 and 2012, respectively, related to these service-based awards. The total fair value of restricted stock grants vested in fiscal 2014, 2013 and 2012 was $3,053,000, $2,177,000 and $977,000, respectively. As of June 30, 2014, the Company had $1,145,000 of unrecognized compensation expense related to restricted stock which will be recognized over the next three years. |
ENGINEERING_AND_DEVELOPMENT_CO
ENGINEERING AND DEVELOPMENT COSTS | 12 Months Ended |
Jun. 30, 2014 | |
ENGINEERING AND DEVELOPMENT COSTS [Abstract] | ' |
ENGINEERING AND DEVELOPMENT COSTS | ' |
L. ENGINEERING AND DEVELOPMENT COSTS | |
Engineering and development costs include research and development expenses for new products, development and major improvements to existing products, and other costs for ongoing efforts to refine existing products. Research and development costs charged to operations totaled $3,028,000, $3,058,000 and $2,657,000 in fiscal 2014, 2013 and 2012, respectively. Total engineering and development costs were $10,900,000, $10,242,000 and $10,316,000 in fiscal 2014, 2013 and 2012, respectively. |
PENSION_AND_OTHER_POSTRETIREME
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | 12 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS [Abstract] | ' | ||||||||||||||||||||||||
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | ' | ||||||||||||||||||||||||
M. PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | |||||||||||||||||||||||||
The Company has non-contributory, qualified defined benefit pension plans covering substantially all domestic employees hired prior to October 1, 2003, and certain foreign employees. Domestic plan benefits are based on years of service, and, for salaried employees, on average compensation for benefits earned prior to January 1, 1997, and on a cash balance plan for benefits earned after January 1, 1997. The Company's funding policy for the plans covering domestic employees is to contribute an actuarially determined amount which falls between the minimum and maximum amount that can be deducted for federal income tax purposes. | |||||||||||||||||||||||||
On June 3, 2009, the Company announced it would freeze future accruals under the domestic defined benefit pension plans effective August 1, 2009. | |||||||||||||||||||||||||
In addition, the Company has unfunded, non-qualified retirement plans for certain management employees and Directors. In the case of management employees, benefits are based either on final average compensation or on an annual credit to a bookkeeping account, intended to restore the benefits that would have been earned under the qualified plans, but for the earnings limitations under the Internal Revenue Code. In the case of Directors, benefits are based on years of service on the Board. All benefits vest upon retirement from the Company. | |||||||||||||||||||||||||
In addition to providing pension benefits, the Company provides other postretirement benefits, including healthcare and life insurance benefits for certain domestic retirees. All employees retiring after December 31, 1992, and electing to continue healthcare coverage through the Company's group plan, are required to pay 100% of the premium cost. | |||||||||||||||||||||||||
The measurement date for the Company's pension and postretirement benefit plans in fiscal 2014 and 2013 was June 30. | |||||||||||||||||||||||||
Obligations and Funded Status | |||||||||||||||||||||||||
The following table sets forth the Company's defined benefit pension plans' and other postretirement benefit plans' funded status and the amounts recognized in the Company's balance sheets and statement of operations and comprehensive income as of June 30 (in thousands): | |||||||||||||||||||||||||
Pension | Other | ||||||||||||||||||||||||
Benefits | Postretirement | ||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
Change in benefit obligation: | |||||||||||||||||||||||||
Benefit obligation, beginning of year | $ | 125,846 | $ | 133,261 | $ | 17,739 | $ | 19,645 | |||||||||||||||||
Service cost | 536 | 367 | 37 | 34 | |||||||||||||||||||||
Interest cost | 5,425 | 5,399 | 659 | 766 | |||||||||||||||||||||
Actuarial loss (gain) | 1,221 | (4,123 | ) | (60 | ) | (938 | ) | ||||||||||||||||||
Contributions by plan participants | 174 | 162 | 581 | 677 | |||||||||||||||||||||
Settlements | (121 | ) | |||||||||||||||||||||||
Benefits paid | (9,249 | ) | (9,220 | ) | (2,372 | ) | (2,445 | ) | |||||||||||||||||
Benefit obligation, end of year | $ | 123,832 | $ | 125,846 | $ | 16,584 | $ | 17,739 | |||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||||
Fair value of assets, beginning of year | $ | 94,723 | $ | 88,775 | $ | - | $ | - | |||||||||||||||||
Actual return on plan assets | 14,031 | 10,500 | - | ||||||||||||||||||||||
Employer contribution | 2,816 | 4,506 | 1,791 | 1,768 | |||||||||||||||||||||
Contributions by plan participants | 174 | 162 | 581 | 677 | |||||||||||||||||||||
Benefits paid | (9,249 | ) | (9,220 | ) | (2,372 | ) | (2,445 | ) | |||||||||||||||||
Fair value of assets, end of year | $ | 102,495 | $ | 94,723 | $ | - | $ | - | |||||||||||||||||
Funded status | $ | (21,337 | ) | $ | (31,123 | ) | $ | (16,584 | ) | $ | (17,739 | ) | |||||||||||||
Amounts recognized in the balance sheet consist of: | |||||||||||||||||||||||||
Other assets - noncurrent | $ | 680 | $ | 566 | $ | - | $ | - | |||||||||||||||||
Accrued liabilities - current | (1,189 | ) | (389 | ) | (2,418 | ) | (2,470 | ) | |||||||||||||||||
Accrued retirement benefits - noncurrent | (20,828 | ) | (31,300 | ) | (14,166 | ) | (15,269 | ) | |||||||||||||||||
  Net amount recognized | $ | (21,337 | ) | $ | (31,123 | ) | $ | (16,584 | ) | $ | (17,739 | ) | |||||||||||||
Amounts recognized in accumulated other comprehensive loss consist of (net of tax): | |||||||||||||||||||||||||
Net transition obligation | $ | 340 | $ | 345 | $ | - | $ | - | |||||||||||||||||
Actuarial net loss | 33,220 | 38,933 | 3,163 | 3,570 | |||||||||||||||||||||
Net amount recognized | $ | 33,560 | $ | 39,278 | $ | 3,163 | $ | 3,570 | |||||||||||||||||
The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost during the next fiscal year for the qualified domestic defined benefit and other postretirement benefit plans are as follows (in thousands): | |||||||||||||||||||||||||
Pension | Other | ||||||||||||||||||||||||
Benefits | Postretirement | ||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||
Net transition obligation | $ | 38 | $ | - | |||||||||||||||||||||
Actuarial net loss | 2,437 | 638 | |||||||||||||||||||||||
Net amount to be recognized | $ | 2,475 | $ | 638 | |||||||||||||||||||||
The accumulated benefit obligation for all defined benefit pension plans was approximately $123,832,000 and $125,846,000 at June 30, 2014 and 2013, respectively. | |||||||||||||||||||||||||
Information for pension plans with an accumulated benefit obligation in excess of plan assets (in thousands): | |||||||||||||||||||||||||
30-Jun | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Projected and accumulated benefit obligation | $ | 122,045 | $ | 123,933 | |||||||||||||||||||||
Fair value of plan assets | 100,028 | 92,244 | |||||||||||||||||||||||
Components of Net Periodic Benefit Cost (in thousands): | |||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Service cost | $ | 536 | $ | 367 | $ | 292 | |||||||||||||||||||
Interest cost | 5,425 | 5,399 | 6,231 | ||||||||||||||||||||||
Expected return on plan assets | (6,591 | ) | (6,382 | ) | (7,766 | ) | |||||||||||||||||||
Settlement loss | - | 5 | 11 | ||||||||||||||||||||||
Amortization of transition obligation | 32 | 35 | 34 | ||||||||||||||||||||||
Amortization of actuarial net loss | 2,894 | 3,357 | 2,319 | ||||||||||||||||||||||
Net periodic benefit cost | $ | 2,296 | $ | 2,781 | $ | 1,121 | |||||||||||||||||||
Other Postretirement Benefits | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Service cost | $ | 37 | $ | 34 | $ | 41 | |||||||||||||||||||
Interest cost | 659 | 766 | 985 | ||||||||||||||||||||||
Amortization of prior service cost | - | - | (508 | ) | |||||||||||||||||||||
Amortization of actuarial net loss | 602 | 792 | 929 | ||||||||||||||||||||||
Net periodic benefit cost | $ | 1,298 | $ | 1,592 | $ | 1,447 | |||||||||||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income for Fiscal 2014 (Pre-tax, in thousands): | |||||||||||||||||||||||||
Pension | Other | ||||||||||||||||||||||||
Postretirement | |||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||
Net gain | $ | (6,303 | ) | $ | (59 | ) | |||||||||||||||||||
Amortization of prior service benefit | 7 | - | |||||||||||||||||||||||
Amortization of transition asset | (38 | ) | - | ||||||||||||||||||||||
Amortization of net (loss) gain | (2,894 | ) | (602 | ) | |||||||||||||||||||||
Total recognized in other comprehensive income | (9,228 | ) | (661 | ) | |||||||||||||||||||||
Net periodic benefit cost | 2,296 | 1,298 | |||||||||||||||||||||||
Total recognized in net periodic benefit cost andother comprehensive income | $ | (6,932 | ) | $ | 637 | ||||||||||||||||||||
Additional Information | |||||||||||||||||||||||||
Assumptions (as of June 30, 2014 and 2013) | |||||||||||||||||||||||||
Pension Benefits | OtherPostretirement Benefits | ||||||||||||||||||||||||
Weighted average assumptions used to determine benefit obligations at June 30 | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
Discount rate | 4.06 | % | 4.35 | % | 3.76 | % | 3.99 | % | |||||||||||||||||
Expected return on plan assets | 7.39 | % | 7.41 | % | |||||||||||||||||||||
Weighted average assumptions used to determine net periodic benefit cost for years ended June 30 | |||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Discount rate | 4.35 | % | 4.2 | % | 5.16 | % | 3.99 | % | 4.2 | % | 5.16 | % | |||||||||||||
Expected return on plan assets | 7.41Â | Â % | 7.5 | % | 8.5 | % | |||||||||||||||||||
The assumed weighted-average healthcare cost trend rate was 8.0% in 2014, grading down to 5% in 2023. A 1% increase in the assumed health care cost trend would increase the accumulated postretirement benefit obligation by approximately $351,000 and the service and interest cost by approximately $13,000. A 1% decrease in the assumed health care cost trend would decrease the accumulated postretirement benefit obligation by approximately $316,000 and the service and interest cost by approximately $12,000. | |||||||||||||||||||||||||
Plan Assets | |||||||||||||||||||||||||
The Company's Pension Committee ("Committee") oversees investment matters related to the Company's funded benefit plans. The Committee works with external actuaries and investment consultants on an ongoing basis to establish and monitor investment strategies and target asset allocations. The overall objective of the Committee's investment strategy is to earn a rate of return over time to satisfy the benefit obligations of the pension plans and to maintain sufficient liquidity to pay benefits and address other cash requirements of the pension plans. The Committee has established an Investment Policy Statement which provides written documentation of the Company's expectations regarding its investment programs for the pension plans, establishes objectives and guidelines for the investment of the plan assets consistent with the Company's financial and benefit-related goals, and outlines criteria and procedures for the ongoing evaluation of the investment program. The Company employs a total return on investment approach whereby a mix of investments among several asset classes are used to maximize long-term return of plan assets while avoiding excessive risk. Investment risk is measured and monitored on an ongoing basis through quarterly investment portfolio reviews, and annual liability measurements. | |||||||||||||||||||||||||
The Company's pension plan weighted-average asset allocations at June 30, 2014 and 2013 by asset category are as follows: | |||||||||||||||||||||||||
30-Jun | |||||||||||||||||||||||||
Asset Category | Target | 2014 | 2013 | ||||||||||||||||||||||
Allocation | |||||||||||||||||||||||||
Equity securities | 65 | % | 65 | % | 64 | % | |||||||||||||||||||
Debt securities | 25 | % | 23 | % | 26 | % | |||||||||||||||||||
Real estate | 10 | % | 12 | % | 10 | % | |||||||||||||||||||
100 | % | 100 | % | 100 | % | ||||||||||||||||||||
Due to market conditions and other factors, actual asset allocation may vary from the target allocation outlined above. The domestic pension plans held 98,211 shares of Company stock with a fair market value of $3,245,874 (3.2 percent of total plan assets) at June 30, 2014 and 98,211 shares with a fair market value of $2,327,601 (2.5 percent of total plan assets) at June 30, 2013. | |||||||||||||||||||||||||
The plans have a long-term return assumption of 7.50%. This rate was derived based upon historical experience and forward-looking return expectations for major asset class categories. | |||||||||||||||||||||||||
Fair value is defined as the price that would be received on the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The inputs used to measure fair value are classified into the following hierarchy: | |||||||||||||||||||||||||
Level I | Unadjusted quoted prices in active markets for identical instruments | ||||||||||||||||||||||||
Leve lII | Unadjusted quoted prices in active markets for similar instruments, or | ||||||||||||||||||||||||
Unadjusted quoted prices for identical or similar instruments in markets that are not active, or | |||||||||||||||||||||||||
Other inputs that are observable in the market or can be corroborated by observable market data | |||||||||||||||||||||||||
Level III | Use of one or more significant unobservable inputs | ||||||||||||||||||||||||
The following table presents plan assets using the fair value hierarchy as of June 30, 2014(in thousands): | |||||||||||||||||||||||||
Total | Level I | Level II | Level III | ||||||||||||||||||||||
Cash and cash equivalents | $ | 965 | $ | 965 | $ | - | $ | - | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
U.S. (a) | 30,727 | 30,727 | - | - | |||||||||||||||||||||
International (b) | 16,676 | 10,785 | 5,891 | - | |||||||||||||||||||||
Fixed income (c) | 21,892 | 7,603 | 14,289 | - | |||||||||||||||||||||
Annuity contracts (d) | 6,340 | - | - | 6,340 | |||||||||||||||||||||
Real estate (e) | 11,206 | - | 11,206 | - | |||||||||||||||||||||
Other (f) | 14,689 | - | - | 14,689 | |||||||||||||||||||||
Total | $ | 102,495 | $ | 50,080 | $ | 31,386 | $ | 21,029 | |||||||||||||||||
The following table presents plan assets using the fair value hierarchy as of June 30, 2013 (in thousands): | |||||||||||||||||||||||||
Total | Level I | Level II | Level III | ||||||||||||||||||||||
Cash and cash equivalents | $ | 2,376 | $ | 2,376 | $ | - | $ | - | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
U.S. (a) | 28,334 | 28,334 | - | - | |||||||||||||||||||||
International (b) | 15,409 | 9,315 | 6,094 | - | |||||||||||||||||||||
Fixed income (c) | 20,935 | 7,240 | 13,695 | - | |||||||||||||||||||||
Annuity contracts (d) | 5,819 | - | - | 5,819 | |||||||||||||||||||||
Real estate (e) | 8,697 | - | 5,685 | 3,012 | |||||||||||||||||||||
Other (f) | 13,153 | - | - | 13,153 | |||||||||||||||||||||
Total | $ | 94,723 | $ | 47,265 | $ | 25,474 | $ | 21,984 | |||||||||||||||||
(a) U.S. equity securities include companies that are well diversified by industry sector and equity style (i.e., growth and value strategies). Investments are primarily in large capitalization stocks and, to a lesser extent, mid- and small-cap stocks. These securities are valued at the closing price reported on the active market on which the individual securities are traded. | |||||||||||||||||||||||||
(b) International equities are invested in companies that are traded on exchanges outside the U.S. and are well diversified by industry sector, country, capitalization and equity style (i.e., growth and value strategies). Certain assets are invested in international commingled equity funds. The vast majority of the investments are made in companies in developed markets with a smaller percentage in emerging markets. Securities traded on exchanges are valued at the closing price reported on the active market on which the individual securities are traded. International commingled funds are valued at the net asset value ("NAV") as determined by the custodian of the fund. The NAV is based on the fair value of the underlying assets owned by the fund, minus its liabilities, divided by the number of units outstanding. | |||||||||||||||||||||||||
(c) Fixed income consists of corporate bonds with investment grade BBB or better from diversified industries, as well as government debt securities. Corporate and government debt investments are valued utilizing a market approach that includes various valuation techniques and sources such as value generation models, broker quotes in active and inactive markets, benchmark yields and securities, reported trades, issuer spreads, and/or other applicable reference data. | |||||||||||||||||||||||||
(d) Annuity contracts represent contractual agreements in which payments are made to an insurance company, which agrees to pay out an income or lump sum amount at a later date. Annuity contracts are valued at the net present value of future cash flows. | |||||||||||||||||||||||||
(e) Real estate investments invested in common collective trusts and other mutual funds holding real estate investments. They are valued at the net asset value ("NAV") as determined by the custodian of the fund. The NAV is based on the fair value of the underlying assets owned by the fund, minus its liabilities, divided by the number of units outstanding. Level 2 investments represent funds where regular opportunities exist for the Company to sell the holdings, whereas Level 3 investments represent funds where less frequent opportunities exist during the year for the Company to sell it's holding in the funds. | |||||||||||||||||||||||||
(f) Other consists of hedged equity mutual funds. These investments are valued at the net asset value ("NAV") as determined by the custodian of the fund. The NAV is based on the fair value of the underlying assets owned by the fund, minus its liabilities, divided by the number of units outstanding. | |||||||||||||||||||||||||
The following tables present a reconciliation of the fair value measurements using significant unobservable inputs (Level III) as of June 30, 2014 and 2013 (in thousands): | |||||||||||||||||||||||||
Annuity Contracts | Real Estate | Other | |||||||||||||||||||||||
Balance – June 30, 2013 | $ | 5,819 | $ | 3,012 | $ | 13,153 | |||||||||||||||||||
Actual return on plan assets: | |||||||||||||||||||||||||
Relating to assets still held at reporting date | 433 | - | 1,536 | ||||||||||||||||||||||
Relating to assets sold during the period | - | 257 | - | ||||||||||||||||||||||
Purchases, sales and settlements, net | 88 | (3,269 | ) | - | |||||||||||||||||||||
Transfers in and/or out of Level III | - | - | - | ||||||||||||||||||||||
Balance – June 30, 2014 | $ | 6,340 | $ | - | $ | 14,689 | |||||||||||||||||||
Annuity Contracts | Real Estate | Other | |||||||||||||||||||||||
Balance – June 30, 2012 | $ | 5,333 | $ | 5,324 | $ | 11,988 | |||||||||||||||||||
Actual return on plan assets: | |||||||||||||||||||||||||
Relating to assets still held at reporting date | 298 | 391 | 1,165 | ||||||||||||||||||||||
Relating to assets sold during the period | - | ||||||||||||||||||||||||
Purchases, sales and settlements, net | 188 | (2,518 | ) | - | |||||||||||||||||||||
Transfers in and/or out of Level III | - | (185 | ) | ||||||||||||||||||||||
Balance – June 30, 2013 | $ | 5,819 | $ | 3,012 | $ | 13,153 | |||||||||||||||||||
Cash Flows | |||||||||||||||||||||||||
Contributions | |||||||||||||||||||||||||
The Company expects to contribute $7,218,000 to its defined benefit pension plans in fiscal 2015. | |||||||||||||||||||||||||
Estimated Future Benefit Payments | |||||||||||||||||||||||||
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in thousands): | |||||||||||||||||||||||||
Other Postretirement Benefits | |||||||||||||||||||||||||
Part D | Net Benefit | ||||||||||||||||||||||||
Pension | Gross | Reimbursement | Payments | ||||||||||||||||||||||
Benefits | Benefits | ||||||||||||||||||||||||
2015 | $ | 10,926 | $ | 2,418 | $ | - | $ | 2,418 | |||||||||||||||||
2016 | 10,167 | 2,109 | - | 2,109 | |||||||||||||||||||||
2017 | 9,902 | 1,774 | - | 1,774 | |||||||||||||||||||||
2018 | 11,206 | 1,621 | - | 1,621 | |||||||||||||||||||||
2019 | 9,772 | 1,453 | - | 1,453 | |||||||||||||||||||||
Years 2020- 2024 | 42,184 | 5,486 | 5,486 | ||||||||||||||||||||||
The Company sponsors defined contribution plans covering substantially all domestic employees and certain foreign employees. These plans provide for employer contributions based primarily on employee participation. The total expense under the plans was $2,218,000, $2,074,000 and $2,411,000 in fiscal 2014, 2013 and 2012, respectively. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
INCOME TAXES [Abstract] | ' | ||||||||||||
INCOME TAXES | ' | ||||||||||||
N. INCOME TAXES | |||||||||||||
United States and foreign earnings before income taxes and minority interest were as follows (in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | 1,107 | $ | 3,935 | $ | 43,335 | |||||||
Foreign | 6,989 | 5,302 | 1,421 | ||||||||||
$ | 8,096 | $ | 9,237 | $ | 44,756 | ||||||||
The provision (benefit) for income taxes is comprised of the following (in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Currently payable: | |||||||||||||
Federal | $ | 651 | $ | 1,745 | $ | 7,310 | |||||||
State | 104 | (234 | ) | 188 | |||||||||
Foreign | 2,837 | 2,788 | 2,831 | ||||||||||
3,592 | 4,299 | 10,329 | |||||||||||
Deferred: | |||||||||||||
Federal | 1,309 | 1,122 | 7,653 | ||||||||||
State | (95 | ) | 439 | 662 | |||||||||
Foreign | (580 | ) | (874 | ) | (829 | ) | |||||||
634 | 687 | 7,486 | |||||||||||
$ | 4,226 | $ | 4,986 | $ | 17,815 | ||||||||
The components of the net deferred tax asset as of June 30 are summarized in the table below (in thousands). | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Retirement plans and employee benefits | $ | 13,692 | $ | 20,675 | |||||||||
Foreign tax credit carryforwards | 706 | - | |||||||||||
Federal tax credits | 160 | - | |||||||||||
State net operating loss and other state credit carryforwards | 348 | 91 | |||||||||||
Inventory | 1,672 | 1,421 | |||||||||||
Reserves | 2,578 | 2,388 | |||||||||||
Foreign NOL carryforwards | 6,090 | 4,311 | |||||||||||
Accruals | 681 | 822 | |||||||||||
Other assets | (54 | ) | 98 | ||||||||||
25,873 | 29,806 | ||||||||||||
Deferred tax liabilities: | |||||||||||||
Property, plant and equipment | 8,650 | 10,295 | |||||||||||
Intangibles | 5,528 | 5,595 | |||||||||||
Other liabilities | 711 | 439 | |||||||||||
14,889 | 16,329 | ||||||||||||
Valuation Allowance | (5,593 | ) | (3,724 | ) | |||||||||
Total net deferred tax assets | $ | 5,391 | $ | 9,753 | |||||||||
Note: $166,000 and $216,000 of this net deferred tax position is included in Accrued Liabilities at June 30, 2014 and 2013, respectively. | |||||||||||||
The Company maintains valuation allowances when it is more likely than not that all or a portion of a deferred tax asset will not be realized. Changes in valuation allowances from period to period are included in the tax provision in the period of change. In determining whether a valuation allowance is required, the Company takes into account such factors as prior earnings history, expected future earnings, carry-back and carry-forward periods, and tax strategies that could potentially enhance the likelihood of realization of a deferred tax asset. During fiscal 2014, the Company continued to incur operating losses in certain foreign jurisdictions where the loss carryforward period is unlimited. The Company has evaluated the realizability of the net deferred tax assets related to these jurisdictions and concluded that based primarily upon continuing losses in these jurisdictions and failure to achieve targeted levels of improvement, a full valuation allowance continues to be necessary. Therefore, the Company recorded an additional valuation allowance of $1,869,000. Management believes that it is more likely than not that the results of future operations will generate sufficient taxable income and foreign source income to realize the remaining deferred tax assets. | |||||||||||||
Following is a reconciliation of the applicable U.S. federal income taxes to the actual income taxes reflected in the statements of operations (in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
U.S. federal income tax at 35% | $ | 2,754 | $ | 3,104 | $ | 15,595 | |||||||
Increases (reductions) in tax resulting from: | |||||||||||||
Foreign tax items | (291 | ) | 88 | 169 | |||||||||
State taxes | 228 | 296 | 797 | ||||||||||
Valuation allowance | 1,551 | 1,216 | 1,060 | ||||||||||
Research & development tax credits | (267 | ) | (526 | ) | (215 | ) | |||||||
Change in prior year estimate | 139 | 309 | 96 | ||||||||||
Section 199 deduction | (109 | ) | (84 | ) | (908 | ) | |||||||
Goodwill impairment | - | - | 1,292 | ||||||||||
Unrecognized tax benefits | 183 | 539 | (217 | ) | |||||||||
Other, net | 38 | 44 | 146 | ||||||||||
$ | 4,226 | $ | 4,986 | $ | 17,815 | ||||||||
The Company has not provided additional U.S. income taxes on cumulative earnings of consolidated foreign subsidiaries that are considered to be reinvested indefinitely. The Company reaffirms its position that these earnings remain permanently invested, and has no plans to repatriate funds to the U.S. for the foreseeable future. These earnings relate to ongoing operations and were approximately $2,700 000 at June 30, 2014. Such earnings could become taxable upon the sale or liquidation of these foreign subsidiaries or upon dividend repatriation. It is not practicable to estimate the amount of unrecognized withholding taxes and deferred tax liability on such earnings. The Company's intent is for such earnings to be reinvested by the subsidiaries or to be repatriated only when it would be tax effective through the utilization of foreign tax credits. | |||||||||||||
Annually, we file income tax returns in various taxing jurisdictions inside and outside the United States. In general, the tax years that remain subject to examination are 2010 through 2014 for our major operations in Italy, Belgium and Japan. The tax years open to examination in the U.S. are for years subsequent to fiscal 2012. | |||||||||||||
The Company has approximately $1,603,000 of unrecognized tax benefits as of June 30, 2014, which, if recognized would impact the effective tax rate. During the fiscal year the amount of unrecognized tax benefits increased primarily due to the tax positions taken during the fiscal year partially offset by settlements with various taxing authorities. During the next twelve months, the Company believes it is reasonably possible that the amount of unrecognized tax benefits could be reduced by up to $800,000 as a result of the resolution of worldwide tax matters and the lapses of statutes of limitations. The Company's policy is to accrue interest and penalties related to unrecognized tax benefits in income tax expense. | |||||||||||||
Below is a reconciliation of beginning and ending amount of unrecognized tax benefits (in thousands): | |||||||||||||
30-Jun-14 | 30-Jun-13 | ||||||||||||
Unrecognized tax benefits, beginning of year | $ | 1,556 | $ | 1,163 | |||||||||
Additions based on tax positions related to the prior year | 7 | 351 | |||||||||||
Additions based on tax positions related to the current year | 173 | 361 | |||||||||||
Subtractions due to statutes closing | (1 | ) | (40 | ) | |||||||||
Settlements with taxing authorities | (132 | ) | (279 | ) | |||||||||
Unrecognized tax benefits, end of year | $ | 1,603 | $ | 1,556 | |||||||||
Substantially all of the Company's unrecognized tax benefits as of June 30, 2014, if recognized, would affect the effective tax rate. As of June 30, 2014 and 2013, the amounts accrued for interest and penalties totaled $309,000 and $296,000, respectively, and are not included in the reconciliation above. |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Jun. 30, 2014 | |
CONTINGENCIES [Abstract] | ' |
CONTINGENCIES | ' |
O. CONTINGENCIES | |
The Company is involved in litigation of which the ultimate outcome and liability to the Company, if any, are not presently determinable. Management believes that final disposition of such litigation will not have a material impact on the Company's results of operations or financial position. |
RESTRUCTURING_OF_OPERATIONS
RESTRUCTURING OF OPERATIONS | 12 Months Ended |
Jun. 30, 2014 | |
RESTRUCTURING OF OPERATIONS [Abstract] | ' |
RESTRUCTURING OF OPERATIONS | ' |
P. RESTRUCTURING OF OPERATIONS | |
During fiscal 2014, the Company recorded a pre-tax restructuring charge of $961,000 representing the incremental cost above the minimum legal indemnity for a targeted workforce reduction at its Belgian operation, following finalization of negotiations with the local labor unions. The minimum legal indemnity of $548,000 was recorded in the fourth quarter of fiscal 2013, upon announcement of the intended restructuring action. During fiscal 2014, the Company made cash payments of $857,000, resulting in an accrual balance at June 30, 2014 of $785,000. |
SCHEDULE_II_VALUATION_AND_QUAL
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS [Abstract] | ' | ||||||||||||||||||||
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | ' | ||||||||||||||||||||
TWIN DISC, INCORPORATED AND SUBSIDIARIES | |||||||||||||||||||||
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||||||
for the years ended June 30, 2014, 2013 and 2012 (in thousands) | |||||||||||||||||||||
Additions | |||||||||||||||||||||
Balance at | Charged to | Balance at | |||||||||||||||||||
Beginning | Costs and | Net | End of | ||||||||||||||||||
Description | of Period | Expenses | Acquired | Deductions(1) | Period | ||||||||||||||||
2014:00:00 | |||||||||||||||||||||
Allowance for losses on accounts receivable | $ | 2,884 | $ | 1,169 | $ | - | $ | 416 | $ | 3,637 | |||||||||||
Deferred tax valuation allowance | $ | 3,724 | $ | 2,140 | $ | - | $ | 271 | $ | 5,593 | |||||||||||
2013:00:00 | |||||||||||||||||||||
Allowance for losses on accounts receivable | $ | 2,194 | $ | 1,385 | $ | - | $ | 695 | $ | 2,884 | |||||||||||
Deferred tax valuation allowance | $ | 3,811 | $ | 1,112 | $ | - | $ | 1,199 | (2)Â | $ | 3,724 | ||||||||||
2012:00:00 | |||||||||||||||||||||
Allowance for losses on accounts receivable | $ | 2,093 | $ | 549 | $ | - | $ | 448 | $ | 2,194 | |||||||||||
Deferred tax valuation allowance | $ | 2,751 | $ | 1,060 | $ | - | $ | - | $ | 3,811 | |||||||||||
(1)Â Activity primarily represents amounts written-off during the year, along with other adjustments (primarily foreign currency translation adjustments). | |||||||||||||||||||||
(2)Â Represents adjustments resulting from foreign tax audits. |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |
Jun. 30, 2014 | ||
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | |
Consolidation Principles | ' | |
Consolidation Principles‑‑The consolidated financial statements include the accounts of Twin Disc, Incorporated and its wholly and partially owned domestic and foreign subsidiaries. Certain foreign subsidiaries are included based on fiscal years ending May 31, to facilitate prompt reporting of consolidated accounts. The Company also has a controlling interest in a Japanese joint venture, which is consolidated based upon a fiscal year ending March 31. All significant intercompany transactions have been eliminated. | ||
Translation of Foreign Currencies | ' | |
Translation of Foreign Currencies‑‑The financial statements of the Company's non-U.S. subsidiaries are translated using the current exchange rate for assets and liabilities and the weighted-average exchange rate for the year for revenues and expenses. The resulting translation adjustments are recorded as a component of accumulated other comprehensive loss, which is included in equity. Gains and losses from foreign currency transactions are included in earnings. Included in other income (expense) are foreign currency transaction gains (losses) of $293,000, $642,000 and $1,103,000 in fiscal 2014, 2013 and 2012, respectively. | ||
Receivables | ' | |
Receivables‑‑Trade accounts receivable are stated net of an allowance for doubtful accounts of $3,637,000 and $2,884,000 at June 30, 2014 and 2013, respectively. The Company records an allowance for doubtful accounts provision for certain customers where a risk of default has been specifically identified as well as provisions determined on a general basis when it is believed that some default is probable and estimable but not yet clearly associated with a specific customer. The assessment of likelihood of customer default is based on a variety of factors, including the length of time the receivables are past due, the historical collection experience and existing economic conditions. Various factors may adversely impact our customer's ability to access sufficient liquidity and capital to fund their operations and render the Company's estimation of customer defaults inherently uncertain. While the Company believes current allowances for doubtful accounts are adequate, it is possible that these factors may cause higher levels of customer defaults and bad debt expense in future periods. | ||
Fair Value of Financial Instruments | ' | |
Fair Value of Financial Instruments--The carrying amount reported in the consolidated balance sheets for cash, trade accounts receivable, accounts payable and short term borrowings approximate fair value because of the immediate short-term maturity of these financial instruments. If measured at fair value, cash would be classified as Level 1 and all other items listed above would be classified as Level 2 in the fair value hierarchy, as described in Note M. The fair value of the Company's 6.05% Senior Notes due April 10, 2016 was approximately $7,605,000 and $11,536,000 at June 30, 2014 and 2013, respectively. The fair value of the Senior Notes is estimated by discounting the future cash flows at rates offered to the Company for similar debt instruments of comparable maturities. This rate was represented by the US Treasury Three-Year Yield Curve Rate (0.88% and 0.66% for fiscal 2014 and 2013, respectively), plus the current add-on related to the Company's revolving loan agreement (1.00% and 1.65% for fiscal 2014 and 2013, respectively) resulting in a total rate of 1.88% and 2.31% for fiscal 2014 and 2013, respectively. See Note G, "Debt" for the related book value of this debt instrument. The Company's revolving loan agreement approximates fair value at June 30, 2014. If measured at fair value in the financial statements, long-term debt (including the current portion) would be classified as Level 2 in the fair value hierarchy, as described in Note M. | ||
Derivative Financial Instruments | ' | |
Derivative Financial Instruments--The Company has written policies and procedures that place all financial instruments under the direction of the Company's corporate treasury and restricts all derivative transactions to those intended for hedging purposes. The use of financial instruments for trading purposes is prohibited. The Company uses financial instruments to manage the market risk from changes in foreign exchange rates. | ||
Periodically, the Company enters into forward exchange contracts to reduce the earnings and cash flow impact of non-functional currency denominated receivables and payables. These contracts are highly effective in hedging the cash flows attributable to changes in currency exchange rates. Gains and losses resulting from these contracts offset the foreign exchange gains or losses on the underlying assets and liabilities being hedged. The maturities of the forward exchange contracts generally coincide with the settlement dates of the related transactions. Gains and losses on these contracts are recorded in other income (expense) as the changes in the fair value of the contracts are recognized and generally offset the gains and losses on the hedged items in the same period. The primary currency to which the Company was exposed in fiscal 2014 and 2013 was the Euro. At June 30, 2014 and 2013, the Company had no outstanding forward exchange contracts. | ||
Inventories | ' | |
Inventories‑‑Inventories are valued at the lower of cost or market. Cost has been determined by the last‑in, first‑out (LIFO) method for the majority of inventories located in the United States, and by the first‑in, first‑out (FIFO) method for all other inventories. Management specifically identifies obsolete products and analyzes historical usage, forecasted production based on future orders, demand forecasts, and economic trends, among others, when evaluating the adequacy of the reserve for excess and obsolete inventory. | ||
Property, Plant and Equipment and Depreciation | ' | |
Property, Plant and Equipment and Depreciation‑‑Assets are stated at cost. Expenditures for maintenance, repairs and minor renewals are charged against earnings as incurred. Expenditures for major renewals and betterments are capitalized and depreciated. Depreciation is provided on the straight‑line method over the estimated useful lives of the assets for financial reporting and on accelerated methods for income tax purposes. The lives assigned to buildings and related improvements range from 10 to 40 years, and the lives assigned to machinery and equipment range from 5 to 15 years. Upon disposal of property, plant and equipment, the cost of the asset and the related accumulated depreciation are removed from the accounts and the resulting gain or loss is reflected in earnings. Fully depreciated assets are not removed from the accounts until physically disposed. | ||
Impairment of Long-lived Assets | ' | |
Impairment of Long-lived Assets--The Company reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. For property, plant and equipment and other long-lived assets, excluding indefinite-lived intangible assets, the Company performs undiscounted operating cash flow analyses to determine if an impairment exists. If an impairment is determined to exist, any related impairment loss is calculated based on fair value. Fair value is primarily determined using discounted cash flow analyses; however, other methods may be used to substantiate the discounted cash flow analyses, including third party valuations when necessary. | ||
Revenue Recognition | ' | |
Revenue Recognition--Revenue is recognized by the Company when all of the following criteria are met: persuasive evidence of an arrangement exists; delivery has occurred and ownership has transferred to the customer; the price to the customer is fixed or determinable; and collectability is reasonably assured. Revenue is recognized at the time product is shipped to the customer, except for certain domestic shipments to overseas customers where revenue is recognized upon receipt by the customer. A significant portion of our consolidated net sales is transacted through a third party distribution network. Sales to third party distributors are subject to the revenue recognition criteria described above. Goods sold to third party distributors are subject to an annual return policy, for which a provision is made at the time of shipment based upon historical experience. | ||
Goodwill and Other Intangibles | ' | |
Goodwill and Other Intangibles-- Goodwill and other indefinite-lived intangible assets, primarily tradenames, are tested for impairment at least annually on the last day of the Company's fiscal year and more frequently if an event occurs which indicates the asset may be impaired. If applicable, goodwill and other indefinite-lived intangible assets not subject to amortization have been assigned to reporting units for purposes of impairment testing based upon the relative fair value of the asset to each reporting unit. | ||
A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include, among others: a significant decline in expected future cash flows; a sustained, significant decline in the Company's stock price and market capitalization; a significant adverse change in legal factors or in the business climate; unanticipated competition; the testing for recoverability of a significant asset group within a reporting unit; and slower growth rates. Any adverse change in these factors could have a significant impact on the recoverability of these assets and could have a material impact on the Company's consolidated financial statements. | ||
Impairment of goodwill is measured according to a two step approach. In the first step, the fair value of a reporting unit, as defined, is compared to the carrying value of the reporting unit, including goodwill. The fair value is primarily determined using discounted cash flow analyses; however, other methods may be used to substantiate the discounted cash flow analyses, including third party valuations. For purposes of the June 30, 2014 impairment analysis, the Company has utilized discounted cash flow analyses. If the carrying amount exceeds the fair value, the second step of the goodwill impairment test is performed to measure the amount of the impairment loss, if any. In the second step, the implied value of the goodwill is estimated as the fair value of the reporting unit less the fairvalue of all other tangible and identifiable intangible assets of the reporting unit. If the carrying amount of the goodwill exceeds the implied fair value of the goodwill, an impairment loss is recognized in an amount equal to that excess, not to exceed the carrying amount of the goodwill. | ||
Based upon the goodwill impairment review completed in conjunction with the preparation of the annual financial statements at the end of fiscal 2014, which incorporates management's best estimates of economic and market conditions over the projected period and a weighted-average cost of capital that reflects current market conditions, it was determined that the fair value of goodwill for each of the reporting units exceeded the carrying value and therefore goodwill was not impaired. | ||
The fair value of the Company's other intangible assets with indefinite lives, primarily tradenames, is estimated using the relief-from-royalty method, which requires assumptions related to projected revenues; assumed royalty rates that could be payable if the Company did not own the asset; and a discount rate. The Company completed the impairment testing of indefinite-lived intangibles as of June 30, 2014 and concluded there were no impairments. | ||
Changes in circumstances, existing at the measurement date or at other times in the future, or in the numerous estimates associated with management's judgments, assumptions and estimates made in assessing the fair value of goodwill and other indefinite-lived intangibles, could result in an impairment charge in the future. The Company will continue to monitor all significant estimates and impairment indicators, and will perform interim impairment reviews as necessary. | ||
Any cost incurred to extend or renew the term of an indefinite lived intangible asset are expensed as incurred. | ||
Deferred Taxes | ' | |
Deferred Taxes--The Company recognizes deferred tax liabilities and assets for the expected future income tax consequences of events that have been recognized in the Company's financial statements. Under this method, deferred tax liabilities and assets are determined based on the temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities using enacted tax rates in effect in the years in which temporary differences are expected to reverse. Valuation allowances are provided for deferred tax assets where it is considered more likely than not that the Company will not realize the benefit of such assets. | ||
Management Estimates | ' | |
Management Estimates--The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual amounts could differ from those estimates. | ||
Shipping and Handling Fees and Costs | ' | |
Shipping and Handling Fees and Costs--The Company records revenue from shipping and handling costs in net sales. The cost associated with shipping and handling of products is reflected in cost of goods sold. | ||
Out-of-Period Adjustments | ' | |
Out-of-Period Adjustments -- During the first quarter of fiscal 2014, the Company recorded out-of-period adjustments related to the correction of errors identified late in the year-end closing process of fiscal 2013 that were deemed immaterial for adjustment to the fiscal 2013 financial statements. The impact of these corrections to the fiscal 2014 first quarter and full year results was to increase earnings before income taxes and noncontrolling interest by $437,000 and increase net earnings attributable to Twin Disc by $69,000 (after considering applicable tax effects). The nature of these errors is as follows: | ||
· | The Company had over accrued for certain payroll related items totaling $337,000 as of June 30, 2013, resulting in an increase to earnings from operations. | |
· | The Company had overstated its warranty accrual by $217,000 as of June 30, 2013, resulting in an increase to earnings from operations. | |
· | The Company determined that work-in-process inventory had been overstated by $117,000 as of June 30, 2013. As a result, additional cost of goods sold was recorded in the first quarter of fiscal 2014, resulting in a decrease to earnings from operations. | |
· | The Company's deferred tax liabilities were understated by $285,000 as of June 30, 2013, resulting in additional tax expense. | |
The Company does not believe these errors are material to its financial statements for any prior period, nor that the correction of these errors is material to the year ended June 30, 2014. | ||
Recently Issued Accounting Standards | ' | |
Recently Issued Accounting Standards | ||
In June 2014, the Financial Accounting Standards Board ("FASB") issued stock compensation guidance requiring that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The amendments in this guidance are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 (the Company's fiscal 2017). The adoption of this guidance is not expected to have a material impact on the Company's financial disclosures. | ||
In May 2014, the FASB issued updated guidance on revenue from contracts with customers. This revenue recognition guidance supersedes existing US GAAP guidance, including most industry-specific guidance. The core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance identifies steps to apply in achieving this principle. This updated guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016 (the Company's fiscal 2018). The Company is currently evaluating the potential impact of this guidance on the Company's financial disclosures and results. | ||
In April 2014, the FASB issued updated guidance on the reporting for discontinued operations. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. The new guidance also requires expanded financial disclosures about discontinued operations. The amendments in this updated guidance are effective for the first quarter of the Company's fiscal 2016. The adoption of this guidance is not expected to have a material impact on the Company's financial disclosures. | ||
In July 2013, the FASB issued guidance stating that, except in certain defined circumstances, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2013 (the Company's fiscal 2015). The adoption of this guidance is not expected to have a material impact on the Company's financial disclosures. | ||
In March 2013, the FASB issued guidance on the parent company's accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. This guidance clarifies the circumstances under which the related cumulative translation adjustment should be released into net income. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2013 (the Company's fiscal 2015). The adoption of this guidance is not expected to have a material impact on the Company's financial results. |
INVENTORIES_Tables
INVENTORIES (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
INVENTORIES [Abstract] | ' | ||||||||
Major Classes of Inventories | ' | ||||||||
The major classes of inventories at June 30 were as follows (in thousands): | |||||||||
2014 | 2013 | ||||||||
Finished parts | $ | 66,418 | $ | 68,594 | |||||
Work‑in‑process | 12,419 | 11,880 | |||||||
Raw materials | 18,742 | 22,300 | |||||||
$ | 97,579 | $ | 102,774 |
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
PROPERTY, PLANT AND EQUIPMENT [Abstract] | ' | ||||||||
Property, Plant and Equipment | ' | ||||||||
Property, plant and equipment at June 30 were as follows (in thousands): | |||||||||
2014 | 2013 | ||||||||
Land | $ | 5,310 | $ | 4,977 | |||||
Buildings | 44,540 | 42,712 | |||||||
Machinery and equipment | 141,665 | 138,223 | |||||||
191,515 | 185,912 | ||||||||
Less: accumulated depreciation | 131,248 | 123,597 | |||||||
$ | 60,267 | $ | 62,315 |
GOODWILL_AND_OTHER_INTANGIBLES1
GOODWILL AND OTHER INTANGIBLES (Tables) | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
GOODWILL AND OTHER INTANGIBLES [Abstract] | ' | ||||||||||||||||
Changes in Carrying Amount of Goodwill | ' | ||||||||||||||||
The changes in the carrying amount of goodwill, substantially all of which is allocated to the manufacturing segment, for the years ended June 30, 2014 and 2013 were as follows (in thousands): | |||||||||||||||||
Gross | Accumulated | Net Book | |||||||||||||||
Carrying | Impairment | Value | |||||||||||||||
Amount | |||||||||||||||||
Balance at June 30, 2012 | $ | 16,786 | $ | (3,670 | ) | $ | 13,116 | ||||||||||
Translation adjustment | 116 | - | 116 | ||||||||||||||
Balance at June 30, 2013 | 16,902 | ( 3,670 | ) | 13,232 | |||||||||||||
Translation adjustment | 231 | - | 231 | ||||||||||||||
Balance at June 30, 2014 | $ | 17,133 | $ | (3,670 | ) | $ | 13,463 | ||||||||||
Acquired Intangible Assets with Finite Lives | ' | ||||||||||||||||
At June 30, the following acquired intangible assets have definite useful lives and are subject to amortization (in thousands): | |||||||||||||||||
2014 | |||||||||||||||||
Gross | Accumulated | Accumulated | Net Book | ||||||||||||||
Carrying | Amortization | Impairment | Value | ||||||||||||||
Amount | |||||||||||||||||
Licensing agreements | $ | 3,015 | $Â | (2,445 | ) | $ | - | $ | 570 | ||||||||
Non-compete agreements | 2,128 | ( 2,045 | ) | ( 83 | ) | - | |||||||||||
Trade name | 2,009 | ( 100 | ) | - | 1,909 | ||||||||||||
Other | 6,482 | ( 5,193 | ) | ( 1,194 | ) | 95 | |||||||||||
$ | 13,634 | $Â | (9,783 | ) | $Â | (1,277 | ) | $ | 2,574 | ||||||||
2013 | |||||||||||||||||
Gross | Accumulated | Accumulated | Net Book | ||||||||||||||
Carrying | Amortization | Impairment | Value | ||||||||||||||
Amount | |||||||||||||||||
Licensing agreements | $ | 3,015 | $Â | (2,385 | ) | $ | - | $ | 630 | ||||||||
Non-compete agreements | 2,124 | ( 1,939 | ) | ( 83 | ) | 102 | |||||||||||
Other | 6,468 | ( 4,982 | ) | ( 1,194 | ) | 292 | |||||||||||
$ | 11,607 | $Â | (9,306 | ) | $Â | (1,277 | ) | $ | 1,024 | ||||||||
Estimated Intangible Amortization Expense | ' | ||||||||||||||||
Estimated intangible amortization expense for each of the next five fiscal years is as follows (in thousands): | |||||||||||||||||
Fiscal Year | |||||||||||||||||
2015 | $ | 251 | |||||||||||||||
2016 | 165 | ||||||||||||||||
2017 | 160 | ||||||||||||||||
2018 | 160 | ||||||||||||||||
2019 | 160 | ||||||||||||||||
Thereafter | 1,678 | ||||||||||||||||
$ | 2,574 |
ACCRUED_LIABILITIES_Tables
ACCRUED LIABILITIES (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
ACCRUED LIABILITIES [Abstract] | ' | ||||||||
Accrued Liabilities | ' | ||||||||
Accrued liabilities at June 30 were as follows (in thousands): | |||||||||
2014 | 2013 | ||||||||
Salaries and wages | $ | 6,648 | $ | 9,513 | |||||
Retirement benefits | 4,909 | 3,973 | |||||||
Warranty | 3,917 | 3,910 | |||||||
Customer advances/deferred revenue | 3,082 | 7,234 | |||||||
Accrued income tax | 1,913 | 2,541 | |||||||
Distributor rebate | 3,242 | 3,636 | |||||||
Other | 7,554 | 8,364 | |||||||
$ | 31,265 | $ | 39,171 |
WARRANTY_Tables
WARRANTY (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
WARRANTY [Abstract] | ' | ||||||||
Warranty Reserve | ' | ||||||||
The following is a listing of the activity in the warranty reserve during the years ended June 30) and service against defective materials or workmanship. Such warranty generally extends from periods ranging from 12 (in thousands): | |||||||||
2014 | 2013 | ||||||||
Reserve balance, July 1 | $ | 5,701 | $ | 5,745 | |||||
Current period expense | 2,214 | 4,864 | |||||||
Payments or credits to customers | (2,055 | ) | (4,953 | ) | |||||
Translation adjustment | 108 | 45 | |||||||
Reserve balance, June 30 | $ | 5,968 | $ | 5,701 |
DEBT_Tables
DEBT (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
DEBT [Abstract] | ' | ||||||||
Notes Payable Under Unsecured Line of Credit Agreements | ' | ||||||||
The following is aggregate borrowing information at June 30 (in thousands): | |||||||||
2014 | 2013 | ||||||||
Available credit lines | $ | 3,372 | $ | 18,072 | |||||
Unused credit lines | 3,372 | 18,072 | |||||||
Total notes payable | $ | - | $ | - | |||||
Weighted-average interest rates on credit lines | 2.9 | % | 2.1 | % | |||||
Long-term Debt | ' | ||||||||
Long-term debt consisted of the following at June 30 (in thousands): | |||||||||
2014 | 2013 | ||||||||
Revolving loan agreement | $ | 11,200 | $ | 16,300 | |||||
10-year unsecured senior notes | 7,143 | 10,714 | |||||||
Capital lease obligations | 29 | 44 | |||||||
Other long-term debt | 32 | 95 | |||||||
Subtotal | 18,404 | 27,153 | |||||||
Less: current maturities | (3,604 | ) | (3,681 | ) | |||||
Total long-term debt | $ | 14,800 | $ | 23,472 | |||||
Schedule of Maturities of Long-term Debt | ' | ||||||||
The aggregate scheduled maturities of outstanding long-term debt obligations in subsequent years are as follows (in thousands): | |||||||||
Fiscal Year | |||||||||
2015 | $ | 3,604 | |||||||
2016 | 3,571 | ||||||||
2017 | - | ||||||||
2018 | 11,200 | ||||||||
2019 | - | ||||||||
Thereafter | 29 | ||||||||
$ | 18,404 |
LEASE_COMMITMENTS_Tables
LEASE COMMITMENTS (Tables) | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
LEASE COMMITMENTS [Abstract] | ' | ||||
Future Minimum Rental Commitments Under Noncancellable Operating Leases | ' | ||||
Approximate future minimum rental commitments under noncancellable operating leases are as follows (in thousands): | |||||
Fiscal Year | |||||
2015 | $ | 2,719 | |||
2016 | 1,751 | ||||
2017 | 1,583 | ||||
2018 | 1,153 | ||||
2019 | 149 | ||||
Thereafter | 21 | ||||
$ | 7,376 |
SHAREHOLDERS_EQUITY_Tables
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
SHAREHOLDERS' EQUITY [Abstract] | ' | ||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||
The components of accumulated other comprehensive loss included in equity as of June 30, 2014 and 2013 are as follows (in thousands): | |||||||||
2014 | 2013 | ||||||||
Translation adjustments | $ | 20,779 | $ | 16,949 | |||||
Benefit plan adjustments, net of income taxes of $21,436 and $25,242, respectively | (36,722 | ) | (42,848 | ) | |||||
Accumulated other comprehensive loss | $ | (15,943 | ) | $ | (25,899 | ) | |||
Reconciliation for the Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax, by Component | ' | ||||||||
A reconciliation for the changes in accumulated other comprehensive income (loss), net of tax, by component for the year ended June 30, 2014 is as follows: | |||||||||
Translation | Benefit Plan | ||||||||
Adjustment | Adjustment | ||||||||
Balance at June 30, 2013 | $ | 16,949 | $ | (42,848 | ) | ||||
Other comprehensive loss before reclassifications | 3,830 | 3,950 | |||||||
Amounts reclassified from accumulated other comprehensive income | - | 2,176 | |||||||
Net current period other comprehensive income | 3,830 | 6,126 | |||||||
Balance at June 30, 2014 | $ | 20,779 | $ | (36,722 | ) | ||||
Reconciliation for the Reclassifications Out of Accumulated Other Comprehensive Income (Loss), Net of Tax | ' | ||||||||
A reconciliation for the reclassifications out of accumulated other comprehensive income (loss), net of tax for the year ended June 30, 2014 is as follows: | |||||||||
Amount | |||||||||
Reclassified | |||||||||
Amortization of benefit plan items | |||||||||
Actuarial losses | $Â | (3,496 | ) | ||||||
Transition asset and prior service benefit | (31 | ) | |||||||
Total before tax benefit | (3,527 | ) | |||||||
Tax benefit | 1,351 | ||||||||
Total reclassification net of tax | $Â | (2,176 | ) |
BUSINESS_SEGMENTS_AND_FOREIGN_1
BUSINESS SEGMENTS AND FOREIGN OPERATIONS (Tables) | 12 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
BUSINESS SEGMENTS AND FOREIGN OPERATIONS [Abstract] | ' | ||||||||||||
Net Sales by Product Group | ' | ||||||||||||
Net sales by product group is summarized as follows (in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Industrial | $ | 41,188 | $ | 48,110 | $ | 54,062 | |||||||
Land based transmissions | 67,055 | 68,535 | 146,686 | ||||||||||
Marine and propulsion systems | 149,432 | 162,823 | 151,407 | ||||||||||
Other | 6,234 | 5,814 | 3,715 | ||||||||||
Total | $ | 263,909 | $ | 285,282 | $ | 355,870 | |||||||
Segment Information | ' | ||||||||||||
Information about the Company's segments is summarized as follows (in thousands): | |||||||||||||
Manufacturing | Distribution | Total | |||||||||||
2014 | |||||||||||||
Net sales | $ | 227,590 | $ | 121,389 | $ | 348,979 | |||||||
Intra-segment sales | 18,416 | 9,926 | 28,342 | ||||||||||
Inter-segment sales | 53,960 | 2,768 | 56,728 | ||||||||||
Interest income | 311 | 22 | 333 | ||||||||||
Interest expense | 2,565 | 45 | 2,610 | ||||||||||
Income taxes | 6,233 | 1,432 | 7,665 | ||||||||||
Depreciation and amortization | 8,566 | 549 | 9,115 | ||||||||||
Net earnings attributable to Twin Disc | 7,029 | 6,285 | 13,314 | ||||||||||
Assets | 254,652 | 57,233 | 311,885 | ||||||||||
Expenditures for segment assets | 6,429 | 315 | 6,744 | ||||||||||
2013 | |||||||||||||
Net sales | $ | 245,592 | $ | 130,360 | $ | 375,952 | |||||||
Intra-segment sales | 16,140 | 15,127 | 31,267 | ||||||||||
Inter-segment sales | 55,746 | 3,657 | 59,403 | ||||||||||
Interest income | 479 | 19 | 498 | ||||||||||
Interest expense | 3,248 | 62 | 3,310 | ||||||||||
Income taxes | 5,112 | 1,630 | 6,742 | ||||||||||
Depreciation and amortization | 8,817 | 497 | 9,314 | ||||||||||
Net earnings attributable to Twin Disc | 10,141 | 5,840 | 15,981 | ||||||||||
Assets | 258,617 | 56,965 | 315,582 | ||||||||||
Expenditures for segment assets | 5,705 | 349 | 6,054 | ||||||||||
2012 | |||||||||||||
Net sales | $ | 325,174 | $ | 129,411 | $ | 454,585 | |||||||
Intra-segment sales | 16,189 | 7,672 | 23,861 | ||||||||||
Inter-segment sales | 71,134 | 3,720 | 74,854 | ||||||||||
Interest income | 688 | 39 | 727 | ||||||||||
Interest expense | 3,798 | 64 | 3,862 | ||||||||||
Income taxes | 19,444 | 2,460 | 21,904 | ||||||||||
Depreciation and amortization | 8,373 | 871 | 9,244 | ||||||||||
Net earnings attributable to Twin Disc | 29,572 | 7,196 | 36,768 | ||||||||||
Assets | 272,098 | 58,275 | 330,373 | ||||||||||
Expenditures for segment assets | 11,821 | 1,158 | 12,979 | ||||||||||
Reconciliation of Reportable Segment Net Sales to Consolidated Totals | ' | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net sales: | |||||||||||||
Total net sales from reportable segments | $ | 348,979 | $ | 375,952 | $ | 454,585 | |||||||
Elimination of inter-company sales | (85,070 | ) | (90,670 | ) | (98,715 | ) | |||||||
Total consolidated net sales | $ | 263,909 | $ | 285,282 | $ | 355,870 | |||||||
Reconciliation of Reportable Segment Net Earnings Attributable to Twin Disc to Consolidated Totals | ' | ||||||||||||
Net earnings attributable to Twin Disc: | |||||||||||||
Total net earnings fromreportable segments | $ | 13,314 | $ | 15,981 | $ | 36,768 | |||||||
Other corporate expenses | (9,670 | ) | (12,099 | ) | (10,025 | ) | |||||||
Total consolidated net earnings attributable to Twin Disc | $ | 3,644 | $ | 3,882 | $ | 26,743 | |||||||
Reconciliation of Reportable Segment Assets to Consolidated Totals | ' | ||||||||||||
Assets | |||||||||||||
Total assets for reportable segments | $ | 311,885 | $ | 315,582 | |||||||||
Corporate assets and eliminations | (44,900 | ) | (30,124 | ) | |||||||||
Total consolidated assets | $ | 266,985 | $ | 285,458 | |||||||||
Reconciliation of Reportable Segments Other Significant Reconciling items to Consolidated Totals | ' | ||||||||||||
Other significant items (in thousands): | |||||||||||||
Segment | Adjustments | Consolidated | |||||||||||
Totals | Totals | ||||||||||||
2014 | |||||||||||||
Interest income | $ | 333 | $ | (212 | ) | $ | 121 | ||||||
Interest expense | 2,610 | (1,674 | ) | 936 | |||||||||
Income taxes | 7,665 | (3,439 | ) | 4,226 | |||||||||
Depreciation and amortization | 9,115 | 1,542 | 10,657 | ||||||||||
Expenditures for segment assets | 6,744 | 501 | 7,245 | ||||||||||
2013 | |||||||||||||
Interest income | $ | 498 | $ | (396 | ) | $ | 102 | ||||||
Interest expense | 3,310 | (1,875 | ) | 1,435 | |||||||||
Income taxes | 6,742 | (1,756 | ) | 4,986 | |||||||||
Depreciation and amortization | 9,314 | 1,524 | 10,838 | ||||||||||
Expenditures for segment assets | 6,054 | 528 | 6,582 | ||||||||||
2012 | |||||||||||||
Interest income | $ | 727 | $ | (632 | ) | $ | 95 | ||||||
Interest expense | 3,862 | (2,387 | ) | 1,475 | |||||||||
Income taxes | 21,904 | (4,089 | ) | 17,815 | |||||||||
Depreciation and amortization | 9,244 | 1,512 | 10,756 | ||||||||||
Expenditures for segment assets | 12,979 | 754 | 13,733 | ||||||||||
Geographic Information | ' | ||||||||||||
Geographic information about the Company is summarized as follows (in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net sales | |||||||||||||
United States | $ | 108,380 | $ | 127,844 | $ | 165,658 | |||||||
China | 33,830 | 29,119 | 19,955 | ||||||||||
Italy | 17,396 | 19,140 | 27,075 | ||||||||||
Canada | 9,277 | 10,846 | 44,889 | ||||||||||
Other countries | 95,026 | 98,333 | 98,293 | ||||||||||
Total | $ | 263,909 | $ | 285,282 | $ | 355,870 | |||||||
Net sales by geographic region are based on product shipment destination. | |||||||||||||
2014 | 2013 | ||||||||||||
Long-lived assets | |||||||||||||
United States | $ | 46,821 | $ | 51,618 | |||||||||
Switzerland | 8,196 | 7,964 | |||||||||||
Belgium | 7,450 | 7,262 | |||||||||||
Italy | 3,531 | 3,817 | |||||||||||
Other countries | 2,074 | 2,330 | |||||||||||
Total | $ | 68,072 | $ | 72,991 |
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
STOCK-BASED COMPENSATION [Abstract] | ' | ||||||||||||||||
Shares Available for Future Options | ' | ||||||||||||||||
Shares available for future options as of June 30 were as follows: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
2010 Long-Term Incentive Compensation Plan | 500,121 | 539,566 | |||||||||||||||
2010 Stock Incentive Plan for Non-employee Directors | 193,858 | 204,988 | |||||||||||||||
Stock Option Transactions | ' | ||||||||||||||||
Stock option transactions under the plans during 2014 were as follows: | |||||||||||||||||
Weighted | Weighted Average | Aggregate | |||||||||||||||
Average | Remaining Contractual | Intrinsic | |||||||||||||||
2014 | Price | Life (years) | Value | ||||||||||||||
Non-qualified stock options: | |||||||||||||||||
Options outstanding at beginning of year | 21,600 | $ | 14.88 | ||||||||||||||
Granted | - | - | |||||||||||||||
Canceled/expired | - | - | |||||||||||||||
Exercised | - | - | |||||||||||||||
Options outstanding at June 30 | 21,600 | $ | 14.88 | 3.94 | $ | 392,298 | |||||||||||
Options price range ($Â 5.73 - $7.19) | |||||||||||||||||
Number of shares | 2,400 | ||||||||||||||||
Weighted average price | $ | 6.23 | |||||||||||||||
Weighted average remaining life | 1.00 years | ||||||||||||||||
Options price range ($Â 10.01 - $27.55) | |||||||||||||||||
Number of shares | 19,200 | ||||||||||||||||
Weighted average price | $ | 15.96 | |||||||||||||||
Weighted average remaining life | 4.31 years |
PENSION_AND_OTHER_POSTRETIREME1
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS [Abstract] | ' | ||||||||||||||||||||||||
Net Funded Status of Pension and Postretirement Plans | ' | ||||||||||||||||||||||||
The following table sets forth the Company's defined benefit pension plans' and other postretirement benefit plans' funded status and the amounts recognized in the Company's balance sheets and statement of operations and comprehensive income as of June 30 (in thousands): | |||||||||||||||||||||||||
Pension | Other | ||||||||||||||||||||||||
Benefits | Postretirement | ||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
Change in benefit obligation: | |||||||||||||||||||||||||
Benefit obligation, beginning of year | $ | 125,846 | $ | 133,261 | $ | 17,739 | $ | 19,645 | |||||||||||||||||
Service cost | 536 | 367 | 37 | 34 | |||||||||||||||||||||
Interest cost | 5,425 | 5,399 | 659 | 766 | |||||||||||||||||||||
Actuarial loss (gain) | 1,221 | (4,123 | ) | (60 | ) | (938 | ) | ||||||||||||||||||
Contributions by plan participants | 174 | 162 | 581 | 677 | |||||||||||||||||||||
Settlements | (121 | ) | |||||||||||||||||||||||
Benefits paid | (9,249 | ) | (9,220 | ) | (2,372 | ) | (2,445 | ) | |||||||||||||||||
Benefit obligation, end of year | $ | 123,832 | $ | 125,846 | $ | 16,584 | $ | 17,739 | |||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||||
Fair value of assets, beginning of year | $ | 94,723 | $ | 88,775 | $ | - | $ | - | |||||||||||||||||
Actual return on plan assets | 14,031 | 10,500 | - | ||||||||||||||||||||||
Employer contribution | 2,816 | 4,506 | 1,791 | 1,768 | |||||||||||||||||||||
Contributions by plan participants | 174 | 162 | 581 | 677 | |||||||||||||||||||||
Benefits paid | (9,249 | ) | (9,220 | ) | (2,372 | ) | (2,445 | ) | |||||||||||||||||
Fair value of assets, end of year | $ | 102,495 | $ | 94,723 | $ | - | $ | - | |||||||||||||||||
Funded status | $ | (21,337 | ) | $ | (31,123 | ) | $ | (16,584 | ) | $ | (17,739 | ) | |||||||||||||
Amounts Recognized in Balance Sheet | ' | ||||||||||||||||||||||||
Amounts recognized in the balance sheet consist of: | |||||||||||||||||||||||||
Other assets - noncurrent | $ | 680 | $ | 566 | $ | - | $ | - | |||||||||||||||||
Accrued liabilities - current | (1,189 | ) | (389 | ) | (2,418 | ) | (2,470 | ) | |||||||||||||||||
Accrued retirement benefits - noncurrent | (20,828 | ) | (31,300 | ) | (14,166 | ) | (15,269 | ) | |||||||||||||||||
  Net amount recognized | $ | (21,337 | ) | $ | (31,123 | ) | $ | (16,584 | ) | $ | (17,739 | ) | |||||||||||||
Amounts Recognized in Other Comprehensive Income (Loss) | ' | ||||||||||||||||||||||||
Amounts recognized in accumulated other comprehensive loss consist of (net of tax): | |||||||||||||||||||||||||
Net transition obligation | $ | 340 | $ | 345 | $ | - | $ | - | |||||||||||||||||
Actuarial net loss | 33,220 | 38,933 | 3,163 | 3,570 | |||||||||||||||||||||
Net amount recognized | $ | 33,560 | $ | 39,278 | $ | 3,163 | $ | 3,570 | |||||||||||||||||
Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized Over Next Fiscal Year | ' | ||||||||||||||||||||||||
The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost during the next fiscal year for the qualified domestic defined benefit and other postretirement benefit plans are as follows (in thousands): | |||||||||||||||||||||||||
Pension | Other | ||||||||||||||||||||||||
Benefits | Postretirement | ||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||
Net transition obligation | $ | 38 | $ | - | |||||||||||||||||||||
Actuarial net loss | 2,437 | 638 | |||||||||||||||||||||||
Net amount to be recognized | $ | 2,475 | $ | 638 | |||||||||||||||||||||
Information for Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets | ' | ||||||||||||||||||||||||
Information for pension plans with an accumulated benefit obligation in excess of plan assets (in thousands): | |||||||||||||||||||||||||
30-Jun | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Projected and accumulated benefit obligation | $ | 122,045 | $ | 123,933 | |||||||||||||||||||||
Fair value of plan assets | 100,028 | 92,244 | |||||||||||||||||||||||
Components of Net Periodic Benefit Cost | ' | ||||||||||||||||||||||||
Components of Net Periodic Benefit Cost (in thousands): | |||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Service cost | $ | 536 | $ | 367 | $ | 292 | |||||||||||||||||||
Interest cost | 5,425 | 5,399 | 6,231 | ||||||||||||||||||||||
Expected return on plan assets | (6,591 | ) | (6,382 | ) | (7,766 | ) | |||||||||||||||||||
Settlement loss | - | 5 | 11 | ||||||||||||||||||||||
Amortization of transition obligation | 32 | 35 | 34 | ||||||||||||||||||||||
Amortization of actuarial net loss | 2,894 | 3,357 | 2,319 | ||||||||||||||||||||||
Net periodic benefit cost | $ | 2,296 | $ | 2,781 | $ | 1,121 | |||||||||||||||||||
Other Postretirement Benefits | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Service cost | $ | 37 | $ | 34 | $ | 41 | |||||||||||||||||||
Interest cost | 659 | 766 | 985 | ||||||||||||||||||||||
Amortization of prior service cost | - | - | (508 | ) | |||||||||||||||||||||
Amortization of actuarial net loss | 602 | 792 | 929 | ||||||||||||||||||||||
Net periodic benefit cost | $ | 1,298 | $ | 1,592 | $ | 1,447 | |||||||||||||||||||
Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) | ' | ||||||||||||||||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income for Fiscal 2014 (Pre-tax, in thousands): | |||||||||||||||||||||||||
Pension | Other | ||||||||||||||||||||||||
Postretirement | |||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||
Net gain | $ | (6,303 | ) | $ | (59 | ) | |||||||||||||||||||
Amortization of prior service benefit | 7 | - | |||||||||||||||||||||||
Amortization of transition asset | (38 | ) | - | ||||||||||||||||||||||
Amortization of net (loss) gain | (2,894 | ) | (602 | ) | |||||||||||||||||||||
Total recognized in other comprehensive income | (9,228 | ) | (661 | ) | |||||||||||||||||||||
Net periodic benefit cost | 2,296 | 1,298 | |||||||||||||||||||||||
Total recognized in net periodic benefit cost andother comprehensive income | $ | (6,932 | ) | $ | 637 | ||||||||||||||||||||
Schedule of Assumptions | ' | ||||||||||||||||||||||||
Assumptions (as of June 30, 2014 and 2013) | |||||||||||||||||||||||||
Pension Benefits | OtherPostretirement Benefits | ||||||||||||||||||||||||
Weighted average assumptions used to determine benefit obligations at June 30 | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
Discount rate | 4.06 | % | 4.35 | % | 3.76 | % | 3.99 | % | |||||||||||||||||
Expected return on plan assets | 7.39 | % | 7.41 | % | |||||||||||||||||||||
Weighted average assumptions used to determine net periodic benefit cost for years ended June 30 | |||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Discount rate | 4.35 | % | 4.2 | % | 5.16 | % | 3.99 | % | 4.2 | % | 5.16 | % | |||||||||||||
Expected return on plan assets | 7.41Â | Â % | 7.5 | % | 8.5 | % | |||||||||||||||||||
Pension Plan Weighted-Average Asset Allocations | ' | ||||||||||||||||||||||||
The Company's pension plan weighted-average asset allocations at June 30, 2014 and 2013 by asset category are as follows: | |||||||||||||||||||||||||
30-Jun | |||||||||||||||||||||||||
Asset Category | Target | 2014 | 2013 | ||||||||||||||||||||||
Allocation | |||||||||||||||||||||||||
Equity securities | 65 | % | 65 | % | 64 | % | |||||||||||||||||||
Debt securities | 25 | % | 23 | % | 26 | % | |||||||||||||||||||
Real estate | 10 | % | 12 | % | 10 | % | |||||||||||||||||||
100 | % | 100 | % | 100 | % | ||||||||||||||||||||
Due to market conditions and other factors, actual asset allocation may vary from the target allocation outlined above. The domestic pension plans held 98,211 shares of Company stock with a fair market value of $3,245,874 (3.2 percent of total plan assets) at June 30, 2014 and 98,211 shares with a fair market value of $2,327,601 (2.5 percent of total plan assets) at June 30, 2013. | |||||||||||||||||||||||||
The plans have a long-term return assumption of 7.50%. This rate was derived based upon historical experience and forward-looking return expectations for major asset class categories. | |||||||||||||||||||||||||
Fair value is defined as the price that would be received on the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The inputs used to measure fair value are classified into the following hierarchy: | |||||||||||||||||||||||||
Level I | Unadjusted quoted prices in active markets for identical instruments | ||||||||||||||||||||||||
Leve lII | Unadjusted quoted prices in active markets for similar instruments, or | ||||||||||||||||||||||||
Unadjusted quoted prices for identical or similar instruments in markets that are not active, or | |||||||||||||||||||||||||
Other inputs that are observable in the market or can be corroborated by observable market data | |||||||||||||||||||||||||
Level III | Use of one or more significant unobservable inputs | ||||||||||||||||||||||||
The following table presents plan assets using the fair value hierarchy as of June 30, 2014(in thousands): | |||||||||||||||||||||||||
Total | Level I | Level II | Level III | ||||||||||||||||||||||
Cash and cash equivalents | $ | 965 | $ | 965 | $ | - | $ | - | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
U.S. (a) | 30,727 | 30,727 | - | - | |||||||||||||||||||||
International (b) | 16,676 | 10,785 | 5,891 | - | |||||||||||||||||||||
Fixed income (c) | 21,892 | 7,603 | 14,289 | - | |||||||||||||||||||||
Annuity contracts (d) | 6,340 | - | - | 6,340 | |||||||||||||||||||||
Real estate (e) | 11,206 | - | 11,206 | - | |||||||||||||||||||||
Other (f) | 14,689 | - | - | 14,689 | |||||||||||||||||||||
Total | $ | 102,495 | $ | 50,080 | $ | 31,386 | $ | 21,029 | |||||||||||||||||
The following table presents plan assets using the fair value hierarchy as of June 30, 2013 (in thousands): | |||||||||||||||||||||||||
Total | Level I | Level II | Level III | ||||||||||||||||||||||
Cash and cash equivalents | $ | 2,376 | $ | 2,376 | $ | - | $ | - | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
U.S. (a) | 28,334 | 28,334 | - | - | |||||||||||||||||||||
International (b) | 15,409 | 9,315 | 6,094 | - | |||||||||||||||||||||
Fixed income (c) | 20,935 | 7,240 | 13,695 | - | |||||||||||||||||||||
Annuity contracts (d) | 5,819 | - | - | 5,819 | |||||||||||||||||||||
Real estate (e) | 8,697 | - | 5,685 | 3,012 | |||||||||||||||||||||
Other (f) | 13,153 | - | - | 13,153 | |||||||||||||||||||||
Total | $ | 94,723 | $ | 47,265 | $ | 25,474 | $ | 21,984 | |||||||||||||||||
(a) U.S. equity securities include companies that are well diversified by industry sector and equity style (i.e., growth and value strategies). Investments are primarily in large capitalization stocks and, to a lesser extent, mid- and small-cap stocks. These securities are valued at the closing price reported on the active market on which the individual securities are traded. | |||||||||||||||||||||||||
(b) International equities are invested in companies that are traded on exchanges outside the U.S. and are well diversified by industry sector, country, capitalization and equity style (i.e., growth and value strategies). Certain assets are invested in international commingled equity funds. The vast majority of the investments are made in companies in developed markets with a smaller percentage in emerging markets. Securities traded on exchanges are valued at the closing price reported on the active market on which the individual securities are traded. International commingled funds are valued at the net asset value ("NAV") as determined by the custodian of the fund. The NAV is based on the fair value of the underlying assets owned by the fund, minus its liabilities, divided by the number of units outstanding. | |||||||||||||||||||||||||
(c) Fixed income consists of corporate bonds with investment grade BBB or better from diversified industries, as well as government debt securities. Corporate and government debt investments are valued utilizing a market approach that includes various valuation techniques and sources such as value generation models, broker quotes in active and inactive markets, benchmark yields and securities, reported trades, issuer spreads, and/or other applicable reference data. | |||||||||||||||||||||||||
(d) Annuity contracts represent contractual agreements in which payments are made to an insurance company, which agrees to pay out an income or lump sum amount at a later date. Annuity contracts are valued at the net present value of future cash flows. | |||||||||||||||||||||||||
(e) Real estate investments invested in common collective trusts and other mutual funds holding real estate investments. They are valued at the net asset value ("NAV") as determined by the custodian of the fund. The NAV is based on the fair value of the underlying assets owned by the fund, minus its liabilities, divided by the number of units outstanding. Level 2 investments represent funds where regular opportunities exist for the Company to sell the holdings, whereas Level 3 investments represent funds where less frequent opportunities exist during the year for the Company to sell it's holding in the funds. | |||||||||||||||||||||||||
(f) Other consists of hedged equity mutual funds. These investments are valued at the net asset value ("NAV") as determined by the custodian of the fund. The NAV is based on the fair value of the underlying assets owned by the fund, minus its liabilities, divided by the number of units outstanding. | |||||||||||||||||||||||||
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets | ' | ||||||||||||||||||||||||
The following tables present a reconciliation of the fair value measurements using significant unobservable inputs (Level III) as of June 30, 2014 and 2013 (in thousands): | |||||||||||||||||||||||||
Annuity Contracts | Real Estate | Other | |||||||||||||||||||||||
Balance – June 30, 2013 | $ | 5,819 | $ | 3,012 | $ | 13,153 | |||||||||||||||||||
Actual return on plan assets: | |||||||||||||||||||||||||
Relating to assets still held at reporting date | 433 | - | 1,536 | ||||||||||||||||||||||
Relating to assets sold during the period | - | 257 | - | ||||||||||||||||||||||
Purchases, sales and settlements, net | 88 | (3,269 | ) | - | |||||||||||||||||||||
Transfers in and/or out of Level III | - | - | - | ||||||||||||||||||||||
Balance – June 30, 2014 | $ | 6,340 | $ | - | $ | 14,689 | |||||||||||||||||||
Annuity Contracts | Real Estate | Other | |||||||||||||||||||||||
Balance – June 30, 2012 | $ | 5,333 | $ | 5,324 | $ | 11,988 | |||||||||||||||||||
Actual return on plan assets: | |||||||||||||||||||||||||
Relating to assets still held at reporting date | 298 | 391 | 1,165 | ||||||||||||||||||||||
Relating to assets sold during the period | - | ||||||||||||||||||||||||
Purchases, sales and settlements, net | 188 | (2,518 | ) | - | |||||||||||||||||||||
Transfers in and/or out of Level III | - | (185 | ) | ||||||||||||||||||||||
Balance – June 30, 2013 | $ | 5,819 | $ | 3,012 | $ | 13,153 | |||||||||||||||||||
Defined Benefit Plan Estimated Future Benefit Payments | ' | ||||||||||||||||||||||||
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in thousands): | |||||||||||||||||||||||||
Other Postretirement Benefits | |||||||||||||||||||||||||
Part D | Net Benefit | ||||||||||||||||||||||||
Pension | Gross | Reimbursement | Payments | ||||||||||||||||||||||
Benefits | Benefits | ||||||||||||||||||||||||
2015 | $ | 10,926 | $ | 2,418 | $ | - | $ | 2,418 | |||||||||||||||||
2016 | 10,167 | 2,109 | - | 2,109 | |||||||||||||||||||||
2017 | 9,902 | 1,774 | - | 1,774 | |||||||||||||||||||||
2018 | 11,206 | 1,621 | - | 1,621 | |||||||||||||||||||||
2019 | 9,772 | 1,453 | - | 1,453 | |||||||||||||||||||||
Years 2020- 2024 | 42,184 | 5,486 | 5,486 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
INCOME TAXES [Abstract] | ' | ||||||||||||
Earnings Before Income Taxes and Noncontrolling Interest | ' | ||||||||||||
United States and foreign earnings before income taxes and minority interest were as follows (in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | 1,107 | $ | 3,935 | $ | 43,335 | |||||||
Foreign | 6,989 | 5,302 | 1,421 | ||||||||||
$ | 8,096 | $ | 9,237 | $ | 44,756 | ||||||||
Provision (Benefit) for Income Taxes | ' | ||||||||||||
The provision (benefit) for income taxes is comprised of the following (in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Currently payable: | |||||||||||||
Federal | $ | 651 | $ | 1,745 | $ | 7,310 | |||||||
State | 104 | (234 | ) | 188 | |||||||||
Foreign | 2,837 | 2,788 | 2,831 | ||||||||||
3,592 | 4,299 | 10,329 | |||||||||||
Deferred: | |||||||||||||
Federal | 1,309 | 1,122 | 7,653 | ||||||||||
State | (95 | ) | 439 | 662 | |||||||||
Foreign | (580 | ) | (874 | ) | (829 | ) | |||||||
634 | 687 | 7,486 | |||||||||||
$ | 4,226 | $ | 4,986 | $ | 17,815 | ||||||||
Components of Net Deferred Tax Assets | ' | ||||||||||||
The components of the net deferred tax asset as of June 30 are summarized in the table below (in thousands). | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Retirement plans and employee benefits | $ | 13,692 | $ | 20,675 | |||||||||
Foreign tax credit carryforwards | 706 | - | |||||||||||
Federal tax credits | 160 | - | |||||||||||
State net operating loss and other state credit carryforwards | 348 | 91 | |||||||||||
Inventory | 1,672 | 1,421 | |||||||||||
Reserves | 2,578 | 2,388 | |||||||||||
Foreign NOL carryforwards | 6,090 | 4,311 | |||||||||||
Accruals | 681 | 822 | |||||||||||
Other assets | (54 | ) | 98 | ||||||||||
25,873 | 29,806 | ||||||||||||
Deferred tax liabilities: | |||||||||||||
Property, plant and equipment | 8,650 | 10,295 | |||||||||||
Intangibles | 5,528 | 5,595 | |||||||||||
Other liabilities | 711 | 439 | |||||||||||
14,889 | 16,329 | ||||||||||||
Valuation Allowance | (5,593 | ) | (3,724 | ) | |||||||||
Total net deferred tax assets | $ | 5,391 | $ | 9,753 | |||||||||
Reconciliation of U.S. Federal Income Taxes to Actual Income Taxes | ' | ||||||||||||
Following is a reconciliation of the applicable U.S. federal income taxes to the actual income taxes reflected in the statements of operations (in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
U.S. federal income tax at 35% | $ | 2,754 | $ | 3,104 | $ | 15,595 | |||||||
Increases (reductions) in tax resulting from: | |||||||||||||
Foreign tax items | (291 | ) | 88 | 169 | |||||||||
State taxes | 228 | 296 | 797 | ||||||||||
Valuation allowance | 1,551 | 1,216 | 1,060 | ||||||||||
Research & development tax credits | (267 | ) | (526 | ) | (215 | ) | |||||||
Change in prior year estimate | 139 | 309 | 96 | ||||||||||
Section 199 deduction | (109 | ) | (84 | ) | (908 | ) | |||||||
Goodwill impairment | - | - | 1,292 | ||||||||||
Unrecognized tax benefits | 183 | 539 | (217 | ) | |||||||||
Other, net | 38 | 44 | 146 | ||||||||||
$ | 4,226 | $ | 4,986 | $ | 17,815 | ||||||||
Reconciliation of Unrecognized Tax Benefits | ' | ||||||||||||
Below is a reconciliation of beginning and ending amount of unrecognized tax benefits (in thousands): | |||||||||||||
30-Jun-14 | 30-Jun-13 | ||||||||||||
Unrecognized tax benefits, beginning of year | $ | 1,556 | $ | 1,163 | |||||||||
Additions based on tax positions related to the prior year | 7 | 351 | |||||||||||
Additions based on tax positions related to the current year | 173 | 361 | |||||||||||
Subtractions due to statutes closing | (1 | ) | (40 | ) | |||||||||
Settlements with taxing authorities | (132 | ) | (279 | ) | |||||||||
Unrecognized tax benefits, end of year | $ | 1,603 | $ | 1,556 |
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Translation of Foreign Currencies [Abstract] | ' | ' | ' |
Foreign currency transaction (gains) losses | $293,000 | $642,000 | $1,103,000 |
Receivables [Abstract] | ' | ' | ' |
Allowance for doubtful accounts | 3,637,000 | 2,884,000 | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Interest rate on senior notes (in hundredths) | 6.05% | ' | ' |
Out-of-Period Adjustments [Abstract] | ' | ' | ' |
Increase in earnings before income tax and non controlling interest | 437,000 | ' | ' |
Increase In net Earnings | 69,000 | ' | ' |
Over Accrual of Payroll Items | 337,000 | ' | ' |
Overstated warranty accrual | 217,000 | ' | ' |
Work-in-process inventory overstated | 117,000 | ' | ' |
Deferred tax liabilities | 285,000 | ' | ' |
Building and Building Improvements [Member] | Minimum [Member] | ' | ' | ' |
Property, Plant and Equipment and Depreciation [Abstract] | ' | ' | ' |
Life assigned to building, improvements, machinery and equipment (in years) | '10 years | ' | ' |
Building and Building Improvements [Member] | Maximum [Member] | ' | ' | ' |
Property, Plant and Equipment and Depreciation [Abstract] | ' | ' | ' |
Life assigned to building, improvements, machinery and equipment (in years) | '40 years | ' | ' |
Machinery and Equipment [Member] | Minimum [Member] | ' | ' | ' |
Property, Plant and Equipment and Depreciation [Abstract] | ' | ' | ' |
Life assigned to building, improvements, machinery and equipment (in years) | '5 years | ' | ' |
Machinery and Equipment [Member] | Maximum [Member] | ' | ' | ' |
Property, Plant and Equipment and Depreciation [Abstract] | ' | ' | ' |
Life assigned to building, improvements, machinery and equipment (in years) | '15 years | ' | ' |
Senior Notes [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Interest rate on senior notes (in hundredths) | 6.05% | 6.05% | ' |
Fair value of senior notes | $7,605,000 | $11,536,000 | ' |
Maturity date of senior notes | 10-Apr-16 | ' | ' |
Reference rate used to estimate fair value of financial instruments (in hundredths) | 0.88% | 0.66% | ' |
Basis spread on variable rate (in hundredths) | 1.00% | 1.65% | ' |
Calculated rate used to estimate fair value of financial instruments (in hundredths) | 1.88% | 2.31% | ' |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Major classes of inventories [Abstract] | ' | ' |
Finished parts | $66,418,000 | $68,594,000 |
Work-in-process | 12,419,000 | 11,880,000 |
Raw materials | 18,742,000 | 22,300,000 |
Total Inventories | 97,579,000 | 102,774,000 |
Percentage of LIFO Inventory (in hundredths) | 28.00% | 30.00% |
Current cost of the LIFO inventories exceeded the LIFO cost | 27,180,000 | 25,101,000 |
Reserves for inventory obsolescence | $7,591,000 | $7,122,000 |
PROPERTY_PLANT_AND_EQUIPMENT_D
PROPERTY, PLANT AND EQUIPMENT (Details) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Property, plant and equipment [Abstract] | ' | ' | ' |
Land | $5,310,000 | $4,977,000 | ' |
Buildings | 44,540,000 | 42,712,000 | ' |
Machinery and equipment | 141,665,000 | 138,223,000 | ' |
Property, plant and equipment, gross | 191,515,000 | 185,912,000 | ' |
Less: accumulated depreciation | 131,248,000 | 123,597,000 | ' |
Property, plant and equipment, net | 60,267,000 | 62,315,000 | ' |
Depreciation expense | $10,180,000 | $10,120,000 | $9,947,000 |
GOODWILL_AND_OTHER_INTANGIBLES2
GOODWILL AND OTHER INTANGIBLES (Details) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Intangible assets with finite lives [Abstract] | ' | ' | ' |
Gross Carrying Amount | $13,634,000 | $11,607,000 | ' |
Accumulated amortization | -9,783,000 | -9,306,000 | ' |
Accumulated Impairment | -1,277,000 | -1,277,000 | ' |
Total | 2,574,000 | 1,024,000 | ' |
Goodwill Net Book Value [Roll Forward] | ' | ' | ' |
Gross Carrying Amount | 17,133,000 | 16,902,000 | 16,786,000 |
Accumulated Impairment | -3,670,000 | -3,670,000 | -3,670,000 |
Translation adjustment | 231,000 | 116,000 | ' |
Net Book Value | 13,463,000 | 13,232,000 | 13,116,000 |
Interest rate on senior notes (in hundredths) | 6.05% | ' | ' |
Impairment review of Long lived assets, resulting in an impairment charge | 0 | 1,405,000 | 3,670,000 |
Impairment review of Long lived assets, resulting in an impairment charge of fixed assets | ' | -128,000 | ' |
Weighted average remaining useful life | '16 years | ' | ' |
Intangible amortization expense | 477,000 | 718,000 | 809,000 |
Estimated intangible amortization expense [Abstract] | ' | ' | ' |
2015 | 251,000 | ' | ' |
2016 | 165,000 | ' | ' |
2017 | 160,000 | ' | ' |
2018 | 160,000 | ' | ' |
2019 | 160,000 | ' | ' |
Thereafter | 1,678,000 | ' | ' |
Total | 2,574,000 | 1,024,000 | ' |
Carrying amount of indefinite lived intangible assets, gross | 223,000 | 2,125,000 | ' |
Licensing agreements [Member] | ' | ' | ' |
Intangible assets with finite lives [Abstract] | ' | ' | ' |
Gross Carrying Amount | 3,015,000 | 3,015,000 | ' |
Accumulated amortization | -2,445,000 | -2,385,000 | ' |
Accumulated Impairment | 0 | 0 | ' |
Total | 570,000 | 630,000 | ' |
Estimated intangible amortization expense [Abstract] | ' | ' | ' |
Total | 570,000 | 630,000 | ' |
Non-compete agreements [Member] | ' | ' | ' |
Intangible assets with finite lives [Abstract] | ' | ' | ' |
Gross Carrying Amount | 2,128,000 | 2,124,000 | ' |
Accumulated amortization | -2,045,000 | -1,939,000 | ' |
Accumulated Impairment | -83,000 | -83,000 | ' |
Total | 0 | 102,000 | ' |
Estimated intangible amortization expense [Abstract] | ' | ' | ' |
Total | 0 | 102,000 | ' |
Trade Names [Member] | ' | ' | ' |
Intangible assets with finite lives [Abstract] | ' | ' | ' |
Gross Carrying Amount | 2,009,000 | ' | ' |
Accumulated amortization | -100,000 | ' | ' |
Accumulated Impairment | 0 | ' | ' |
Total | 1,909,000 | ' | ' |
Useful life of trade names | '20 years | ' | ' |
Estimated intangible amortization expense [Abstract] | ' | ' | ' |
Total | 1,909,000 | ' | ' |
Other [Member] | ' | ' | ' |
Intangible assets with finite lives [Abstract] | ' | ' | ' |
Gross Carrying Amount | 6,482,000 | 6,468,000 | ' |
Accumulated amortization | -5,193,000 | -4,982,000 | ' |
Accumulated Impairment | -1,194,000 | -1,194,000 | ' |
Total | 95,000 | 292,000 | ' |
Estimated intangible amortization expense [Abstract] | ' | ' | ' |
Total | $95,000 | $292,000 | ' |
ACCRUED_LIABILITIES_Details
ACCRUED LIABILITIES (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Accrued liabilities [Abstract] | ' | ' |
Salaries and wages | $6,648,000 | $9,513,000 |
Retirement benefits | 4,909,000 | 3,973,000 |
Warranty | 3,917,000 | 3,910,000 |
Customer advances/deferred revenue | 3,082,000 | 7,234,000 |
Accrued income tax | 1,913,000 | 2,541,000 |
Distributor rebate | 3,242,000 | 3,636,000 |
Other | 7,554,000 | 8,364,000 |
Total accrued liabilities | $31,265,000 | $39,171,000 |
WARRANTY_Details
WARRANTY (Details) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Activity in warranty reserve [Abstract] | ' | ' |
Reserve balance, beginning of period | $5,701,000 | $5,745,000 |
Current period expense | 2,214,000 | 4,864,000 |
Payments or credits to customers | -2,055,000 | -4,953,000 |
Translation adjustment | 108,000 | 45,000 |
Reserve balance, end of period | 5,968,000 | 5,701,000 |
Current portion of warranty accrual | 3,917,000 | 3,910,000 |
Long-term portion of warranty accrual | $2,051,000 | $1,791,000 |
DEBT_Details
DEBT (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Line of Credit Facility [Line Items] | ' | ' |
Total notes payable | $0 | $0 |
Line of Credit [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Available credit lines | 3,372,000 | 18,072,000 |
Unused credit lines | $3,372,000 | $18,072,000 |
Weighted-average interest rates on credit lines (in hundredths) | 2.90% | 2.10% |
DEBT_Longterm_Details
DEBT, (Long-term) (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2011 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2010 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
Line of Credit [Member] | Line of Credit [Member] | Revolving Loan Agreement [Member] | Revolving Loan Agreement [Member] | Revolving Loan Agreement [Member] | Revolving Loan Agreement [Member] | Revolving Loan Agreement [Member] | Revolving Loan Agreement [Member] | Revolving Loan Agreement [Member] | Revolving Loan Agreement [Member] | 10-year Unsecured Senior Notes [Member] | 10-year Unsecured Senior Notes [Member] | Capital Lease Obligations [Member] | Capital Lease Obligations [Member] | Other Long-Term Debt [Member] | Other Long-Term Debt [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Prior Credit Agreement [Member] | Prior Credit Agreement [Member] | Prior Credit Agreement [Member] | Prior Credit Agreement [Member] | Prior Credit Agreement [Member] | Prior Credit Agreement [Member] | |||
BMO Harris Bank NA [Member] | BMO Harris Bank NA [Member] | BMO Harris Bank NA [Member] | BMO Harris Bank NA [Member] | BMO Harris Bank NA [Member] | Wells Fargo Bank, National Association [Member] | Quarter | Wells Fargo Bank, National Association [Member] | Wells Fargo Bank, National Association [Member] | Wells Fargo Bank, National Association [Member] | Wells Fargo Bank, National Association [Member] | Wells Fargo Bank, National Association [Member] | Wells Fargo Bank, National Association [Member] | |||||||||||||||
Quarter | Maximum [Member] | Minimum [Member] | Quarter | Quarter | Revolving credit other than foreign currency loans [Member] | Revolving credit other than foreign currency loans [Member] | Revolving credit other than foreign currency loans [Member] | Revolving credit other than foreign currency loans [Member] | Foreign currency loans [Member] | ||||||||||||||||||
Prime rate [Member] | Federal Funds Rate [Member] | LIBOR [Member] | LIBOR [Member] | LIBOR [Member] | |||||||||||||||||||||||
Condition One [Member] | Condition One [Member] | Condition One [Member] | Condition Two [Member] | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, total | $18,404,000 | $27,153,000 | ' | ' | $11,200,000 | $16,300,000 | ' | ' | ' | ' | ' | ' | $7,143,000 | $10,714,000 | $29,000 | $44,000 | $32,000 | $95,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less: current maturities | -3,604,000 | -3,681,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,571,429 | 3,571,429 | ' | ' | ' | ' | ' | ' | ' |
Total long-term debt | 14,800,000 | 23,472,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,571,429 | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity period of unsecured senior notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing capacity after amendment | ' | ' | ' | ' | ' | ' | 40,000,000 | ' | 35,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expiration date | ' | ' | ' | ' | ' | ' | 31-May-15 | ' | ' | ' | ' | 31-May-18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-May-15 | ' | ' | ' | ' | ' |
Reference rate used to calculate interest rate | ' | ' | ' | ' | ' | ' | 'LIBOR | ' | ' | ' | ' | 'LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Prime rate | 'Federal Funds Rate | 'LIBOR | 'LIBOR | 'LIBOR |
Basis spread on variable rate (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | 2.50% | 1.00% | ' | ' | ' | ' | ' | ' | 1.00% | 1.65% | ' | ' | ' | 0.50% | 1.00% | 1.50% | 1.50% |
Effective interest rate (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.16% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total funded debt to EBITDA (in hundredths) | ' | ' | ' | ' | ' | ' | ' | 1.84% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of recent quarters considered for minimum EBITDA | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | 4 | ' | ' | 4 | ' | ' | ' | ' | ' |
Minimum adjusted Equity requirement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 120,831,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding balance | ' | ' | ' | ' | ' | ' | 14,042,534 | ' | ' | ' | ' | 11,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' |
Effective date of Note Agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10-Apr-06 | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate on senior notes (in hundredths) | 6.05% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.05% | 6.05% | ' | ' | ' | ' | ' | ' | ' |
Maturity date of note agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10-Apr-16 | ' | ' | ' | ' | ' | ' | ' | ' |
Periodic payment of interest and principal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,571,429 | ' | ' | ' | ' | ' | ' | ' | ' |
Date of first required payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10-Apr-10 | ' | ' | ' | ' | ' | ' |
Minimum amount attributable to covenants not covered | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | 1,000,000 | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | 3,372,000 | 18,072,000 | ' | ' | ' | ' | ' | ' | ' | 60,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | ' | ' | ' | ' | ' |
Specified rate used to calculate the difference for reference rate (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' |
Commitment fee percentage of unused capacity (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.15% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.25% | ' | ' | ' | ' | ' |
Minimum EBITDA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,000,000 | ' | ' | 11,000,000 | ' | ' | ' | ' | ' |
EBITDA Ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | 3 | ' | ' | 3 | ' | ' | ' | ' | ' |
Maximum potential sale and purchase value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance fees (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.10% | ' | ' | ' | ' | ' | ' | ' | ' |
One time structuring fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate outstanding principal not to exceed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Maturities of long-term debt [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 3,604,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 3,571,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | 11,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2019 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Thereafter | 29,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, total | $18,404,000 | $27,153,000 | ' | ' | $11,200,000 | $16,300,000 | ' | ' | ' | ' | ' | ' | $7,143,000 | $10,714,000 | $29,000 | $44,000 | $32,000 | $95,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LEASE_COMMITMENTS_Details
LEASE COMMITMENTS (Details) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Future minimum rental commitments under noncancellable operating leases | ' | ' | ' |
2015 | $2,719,000 | ' | ' |
2016 | 1,751,000 | ' | ' |
2017 | 1,583,000 | ' | ' |
2018 | 1,153,000 | ' | ' |
2019 | 149,000 | ' | ' |
Thereafter | 21,000 | ' | ' |
Total | 7,376,000 | ' | ' |
Rent expense for operating leases, total | $3,920,000 | $3,863,000 | $3,657,000 |
SHAREHOLDERS_EQUITY_Details
SHAREHOLDERS' EQUITY (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2009 | Jul. 27, 2012 | Feb. 01, 2008 | |
Multiple | |||||||
SHAREHOLDERS' EQUITY [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Total common stock outstanding (in shares) | 11,261,873 | 11,261,873 | 11,212,952 | 11,304,487 | ' | ' | ' |
Treasury stock, shares (in shares) | 1,837,595 | 1,837,595 | 1,886,516 | 1,794,981 | ' | ' | ' |
Treasury shares issued (in shares) | ' | 51,921 | 123,997 | 69,593 | ' | ' | ' |
Forfeiture of restricted share (in shares) | 3,000 | ' | ' | ' | ' | ' | ' |
Number of shares authorized to be repurchased at market value (in shares) | ' | ' | ' | ' | ' | ' | 500,000 |
Common stock, average price (in dollars per share) | ' | ' | $16.59 | $19.40 | $7.25 | ' | ' |
Cost of shares purchased | ' | ' | $3,068,652 | $2,425,000 | $1,812,500 | ' | ' |
Number of shares repurchased (in shares) | ' | ' | 185,000 | 125,000 | 250,000 | ' | ' |
Number of additional shares authorized to purchase at market value (in shares) | ' | ' | ' | ' | ' | 375,000 | ' |
Cash dividend (in dollars per share) | ' | $0.36 | $0.36 | $0.34 | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Number of business days following public announcement to exercise right | ' | '10 days | ' | ' | ' | ' | ' |
Beneficial ownership of entity's common stock, minimum (in hundredths) | 20.00% | 20.00% | ' | ' | ' | ' | ' |
Beneficial ownership of entity's common stock for existing holder, minimum (in hundredths) | ' | 30.00% | ' | ' | ' | ' | ' |
Beneficial ownership of entity's common stock as a result of transfer, minimum (in hundredths) | ' | 20.00% | ' | ' | ' | ' | ' |
Number of business days following commencement of tender offer | ' | '10 days | ' | ' | ' | ' | ' |
Beneficial ownership of entity's common stock, second condition, minimum (in hundredths) | ' | 20.00% | ' | ' | ' | ' | ' |
Beneficial ownership of entity's common stock for existing holder, second condition, minimum (in hundredths) | ' | 30.00% | ' | ' | ' | ' | ' |
Multiple of exercise price | ' | 2 | ' | ' | ' | ' | ' |
Maturity date of rights | ' | 30-Jun-18 | ' | ' | ' | ' | ' |
Redemption price of a right (in dollars per share) | $0.01 | $0.01 | ' | ' | ' | ' | ' |
Preferred stock, shares authorized (in shares) | 200,000 | 200,000 | 200,000 | ' | ' | ' | ' |
Preferred stock, shares issued (in shares) | 0 | 0 | 0 | ' | ' | ' | ' |
Preferred stock designated for shareholder rights plan (in shares) | 150,000 | 150,000 | ' | ' | ' | ' | ' |
Accumulated other comprehensive loss included in equity | ' | ' | ' | ' | ' | ' | ' |
Translation adjustments | 20,779,000 | 20,779,000 | 16,949,000 | ' | ' | ' | ' |
Benefit plan adjustments, net of income taxes of $21,436 and $25,242, respectively | -36,722,000 | -36,722,000 | -42,848,000 | ' | ' | ' | ' |
Accumulated other comprehensive loss | -15,943,000 | -15,943,000 | -25,899,000 | ' | ' | ' | ' |
Tax effect on benefit plan adjustments | ' | 21,436,000 | 25,242,000 | ' | ' | ' | ' |
Reconciliation for the changes in accumulated other comprehensive income (loss), net of tax, by component [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Balance, beginning of period | ' | -25,899,000 | ' | ' | ' | ' | ' |
Balance, end of period | -15,943,000 | -15,943,000 | -25,899,000 | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Tax benefit | ' | 4,226,000 | 4,986,000 | 17,815,000 | ' | ' | ' |
Total reclassification net of tax | ' | 3,870,000 | 4,251,000 | 26,941,000 | ' | ' | ' |
Translation Adjustment [Member] | ' | ' | ' | ' | ' | ' | ' |
Accumulated other comprehensive loss included in equity | ' | ' | ' | ' | ' | ' | ' |
Accumulated other comprehensive loss | 20,779,000 | 20,779,000 | ' | ' | ' | ' | ' |
Reconciliation for the changes in accumulated other comprehensive income (loss), net of tax, by component [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Balance, beginning of period | ' | 16,949,000 | ' | ' | ' | ' | ' |
Other comprehensive loss before reclassifications | ' | 3,830,000 | ' | ' | ' | ' | ' |
Amounts reclassified from accumulated other comprehensive income | ' | 0 | ' | ' | ' | ' | ' |
Net current period other comprehensive income | ' | 3,830,000 | ' | ' | ' | ' | ' |
Balance, end of period | 20,779,000 | 20,779,000 | ' | ' | ' | ' | ' |
Benefit Plans Adjustment [Member] | ' | ' | ' | ' | ' | ' | ' |
Accumulated other comprehensive loss included in equity | ' | ' | ' | ' | ' | ' | ' |
Accumulated other comprehensive loss | -36,722,000 | -36,722,000 | ' | ' | ' | ' | ' |
Reconciliation for the changes in accumulated other comprehensive income (loss), net of tax, by component [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Balance, beginning of period | ' | -42,848,000 | ' | ' | ' | ' | ' |
Other comprehensive loss before reclassifications | ' | 3,950,000 | ' | ' | ' | ' | ' |
Amounts reclassified from accumulated other comprehensive income | ' | 2,176,000 | ' | ' | ' | ' | ' |
Net current period other comprehensive income | ' | 6,126,000 | ' | ' | ' | ' | ' |
Balance, end of period | -36,722,000 | -36,722,000 | ' | ' | ' | ' | ' |
Benefit Plans Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Actuarial losses | ' | -3,496,000 | ' | ' | ' | ' | ' |
Transition asset and prior service benefit | ' | -31,000 | ' | ' | ' | ' | ' |
Total before tax benefit | ' | -3,527,000 | ' | ' | ' | ' | ' |
Tax benefit | ' | 1,351,000 | ' | ' | ' | ' | ' |
Total reclassification net of tax | ' | ($2,176,000) | ' | ' | ' | ' | ' |
Series A Junior Preferred Stock [Member] | ' | ' | ' | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Number of preferred stock purchase rights per outstanding share of common stock | ' | 1 | ' | ' | ' | ' | ' |
Number of shares exercised per right (in shares) | 0.0025 | 0.0025 | ' | ' | ' | ' | ' |
Exercise price of rights (in dollars per unit) | $125 | $125 | ' | ' | ' | ' | ' |
BUSINESS_SEGMENTS_AND_FOREIGN_2
BUSINESS SEGMENTS AND FOREIGN OPERATIONS, Net Sales by Product Group (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Net Sales by Product Group [Abstract] | ' | ' | ' |
Net sales | $263,909 | $285,282 | $355,870 |
Industrial [Member] | ' | ' | ' |
Net Sales by Product Group [Abstract] | ' | ' | ' |
Net sales | 41,188 | 48,110 | 54,062 |
Land Based Transmissions [Member] | ' | ' | ' |
Net Sales by Product Group [Abstract] | ' | ' | ' |
Net sales | 67,055 | 68,535 | 146,686 |
Marine and Propulsion Systems [Member] | ' | ' | ' |
Net Sales by Product Group [Abstract] | ' | ' | ' |
Net sales | 149,432 | 162,823 | 151,407 |
Other [Member] | ' | ' | ' |
Net Sales by Product Group [Abstract] | ' | ' | ' |
Net sales | $6,234 | $5,814 | $3,715 |
BUSINESS_SEGMENTS_AND_FOREIGN_3
BUSINESS SEGMENTS AND FOREIGN OPERATIONS, Segment Information (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Segment | |||
BUSINESS SEGMENTS AND FOREIGN OPERATIONS [Abstract] | ' | ' | ' |
Number of reportable segments | 2 | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | $263,909 | $285,282 | $355,870 |
Interest income | 121 | 102 | 95 |
Interest expense | 936 | 1,435 | 1,475 |
Income taxes | 4,226 | 4,986 | 17,815 |
Depreciation and amortization | 10,657 | 10,838 | 10,756 |
Net earnings attributable to Twin Disc | 3,644 | 3,882 | 26,743 |
Assets | 266,985 | 285,458 | ' |
Expenditures for segment assets | 7,245 | 6,582 | 13,733 |
Reportable Segment [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 348,979 | 375,952 | 454,585 |
Interest income | 333 | 498 | 727 |
Interest expense | 2,610 | 3,310 | 3,862 |
Income taxes | 7,665 | 6,742 | 21,904 |
Depreciation and amortization | 9,115 | 9,314 | 9,244 |
Net earnings attributable to Twin Disc | 13,314 | 15,981 | 36,768 |
Assets | 311,885 | 315,582 | 330,373 |
Expenditures for segment assets | 6,744 | 6,054 | 12,979 |
Reportable Segment [Member] | Manufacturing [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 227,590 | 245,592 | 325,174 |
Interest income | 311 | 479 | 688 |
Interest expense | 2,565 | 3,248 | 3,798 |
Income taxes | 6,233 | 5,112 | 19,444 |
Depreciation and amortization | 8,566 | 8,817 | 8,373 |
Net earnings attributable to Twin Disc | 7,029 | 10,141 | 29,572 |
Assets | 254,652 | 258,617 | 272,098 |
Expenditures for segment assets | 6,429 | 5,705 | 11,821 |
Reportable Segment [Member] | Distribution [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 121,389 | 130,360 | 129,411 |
Interest income | 22 | 19 | 39 |
Interest expense | 45 | 62 | 64 |
Income taxes | 1,432 | 1,630 | 2,460 |
Depreciation and amortization | 549 | 497 | 871 |
Net earnings attributable to Twin Disc | 6,285 | 5,840 | 7,196 |
Assets | 57,233 | 56,965 | 58,275 |
Expenditures for segment assets | 315 | 349 | 1,158 |
Intra-segment Sales [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 28,342 | 31,267 | 23,861 |
Intra-segment Sales [Member] | Manufacturing [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 18,416 | 16,140 | 16,189 |
Intra-segment Sales [Member] | Distribution [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 9,926 | 15,127 | 7,672 |
Inter-segment Sales [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 56,728 | 59,403 | 74,854 |
Inter-segment Sales [Member] | Manufacturing [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 53,960 | 55,746 | 71,134 |
Inter-segment Sales [Member] | Distribution [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | $2,768 | $3,657 | $3,720 |
BUSINESS_SEGMENTS_AND_FOREIGN_4
BUSINESS SEGMENTS AND FOREIGN OPERATIONS, Reconciliation of Reportable Segment Net Sales to Consolidated Totals (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Segment Reconciliation [Abstract] | ' | ' | ' |
Net sales | $263,909 | $285,282 | $355,870 |
Reportable Segments [Member] | ' | ' | ' |
Segment Reconciliation [Abstract] | ' | ' | ' |
Net sales | 348,979 | 375,952 | 454,585 |
Intercompany Elimination [Member] | ' | ' | ' |
Segment Reconciliation [Abstract] | ' | ' | ' |
Net sales | ($85,070) | ($90,670) | ($98,715) |
BUSINESS_SEGMENTS_AND_FOREIGN_5
BUSINESS SEGMENTS AND FOREIGN OPERATIONS, Reconciliation of Reportable Segment Net Earnings Attributable to Twin Disc to Consolidated Totals (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Segment Reconciliation [Abstract] | ' | ' | ' |
Net earnings attributable to Twin Disc | $3,644 | $3,882 | $26,743 |
Reportable Segments [Member] | ' | ' | ' |
Segment Reconciliation [Abstract] | ' | ' | ' |
Net earnings attributable to Twin Disc | 13,314 | 15,981 | 36,768 |
Corporate [Member] | ' | ' | ' |
Segment Reconciliation [Abstract] | ' | ' | ' |
Net earnings attributable to Twin Disc | ($9,670) | ($12,099) | ($10,025) |
BUSINESS_SEGMENTS_AND_FOREIGN_6
BUSINESS SEGMENTS AND FOREIGN OPERATIONS, Reconciliation of Reportable Segment Assets to Consolidated Totals (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
In Thousands, unless otherwise specified | |||
Segment Reconciliation [Abstract] | ' | ' | ' |
Assets | $266,985 | $285,458 | ' |
Reportable Segments [Member] | ' | ' | ' |
Segment Reconciliation [Abstract] | ' | ' | ' |
Assets | 311,885 | 315,582 | 330,373 |
Corporate and Intercompany Eliminations [Member] | ' | ' | ' |
Segment Reconciliation [Abstract] | ' | ' | ' |
Assets | ($44,900) | ($30,124) | ' |
BUSINESS_SEGMENTS_AND_FOREIGN_7
BUSINESS SEGMENTS AND FOREIGN OPERATIONS, Reconciliation of Reportable Segment Other Significant Items to Consolidated Totals (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Segment Reporting, Other Significant Reconciling Item, Consolidated [Abstract] | ' | ' | ' |
Interest income | $121 | $102 | $95 |
Interest expense | 936 | 1,435 | 1,475 |
Income taxes | 4,226 | 4,986 | 17,815 |
Depreciation and amortization | 10,657 | 10,838 | 10,756 |
Expenditures for segment assets | 7,245 | 6,582 | 13,733 |
Reportable Segments [Member] | ' | ' | ' |
Segment Reporting, Other Significant Reconciling Item, Consolidated [Abstract] | ' | ' | ' |
Interest income | 333 | 498 | 727 |
Interest expense | 2,610 | 3,310 | 3,862 |
Income taxes | 7,665 | 6,742 | 21,904 |
Depreciation and amortization | 9,115 | 9,314 | 9,244 |
Expenditures for segment assets | 6,744 | 6,054 | 12,979 |
Adjustments [Member] | ' | ' | ' |
Segment Reporting, Other Significant Reconciling Item, Consolidated [Abstract] | ' | ' | ' |
Interest income | -212 | -396 | -632 |
Interest expense | -1,674 | -1,875 | -2,387 |
Income taxes | -3,439 | -1,756 | -4,089 |
Depreciation and amortization | 1,542 | 1,524 | 1,512 |
Expenditures for segment assets | $501 | $528 | $754 |
BUSINESS_SEGMENTS_AND_FOREIGN_8
BUSINESS SEGMENTS AND FOREIGN OPERATIONS, Geographic Information (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Geographic information [Abstract] | ' | ' | ' |
Net sales | $263,909 | $285,282 | $355,870 |
Long-lived assets | 68,072 | 72,991 | ' |
United States [Member] | ' | ' | ' |
Geographic information [Abstract] | ' | ' | ' |
Net sales | 108,380 | 127,844 | 165,658 |
Long-lived assets | 46,821 | 51,618 | ' |
China [Member] | ' | ' | ' |
Geographic information [Abstract] | ' | ' | ' |
Net sales | 33,830 | 29,119 | 19,955 |
Switzerland [Member] | ' | ' | ' |
Geographic information [Abstract] | ' | ' | ' |
Long-lived assets | 8,196 | 7,964 | ' |
Belgium [Member] | ' | ' | ' |
Geographic information [Abstract] | ' | ' | ' |
Long-lived assets | 7,450 | 7,262 | ' |
Italy [Member] | ' | ' | ' |
Geographic information [Abstract] | ' | ' | ' |
Net sales | 17,396 | 19,140 | 27,075 |
Long-lived assets | 3,531 | 3,817 | ' |
Canada [Member] | ' | ' | ' |
Geographic information [Abstract] | ' | ' | ' |
Net sales | 9,277 | 10,846 | 44,889 |
Other Countries [Member] | ' | ' | ' |
Geographic information [Abstract] | ' | ' | ' |
Net sales | 95,026 | 98,333 | 98,293 |
Long-lived assets | $2,074 | $2,330 | ' |
BUSINESS_SEGMENTS_AND_FOREIGN_9
BUSINESS SEGMENTS AND FOREIGN OPERATIONS, Major Customers (Details) | 12 Months Ended | ||
Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | |
Sewart Supply, Inc. [Member] | Sewart Supply, Inc. [Member] | ||
Customer | Customer | ||
Revenue, Major Customer [Line Items] | ' | ' | ' |
Number of customers | ' | 1 | 1 |
Percentage of revenue generated from a single customer (in hundredths) | 10.00% | 11.00% | 11.00% |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
Long-Term Incentive Compensation Plan 2010 [Member] | Stock Incentive Plan for Non-employee Directors 2010 [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Non-qualified stock options [Member] | Non-qualified stock options [Member] | Non-qualified stock options [Member] | Non-qualified stock options [Member] | Non-qualified stock options [Member] | Non-qualified stock options [Member] | Performance Stock Unit Awards [Member] | Performance Stock Unit Awards [Member] | Performance Stock Unit Awards [Member] | Performance Stock Awards [Member] | Performance Stock Awards [Member] | Performance Stock Awards [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Incentive stock options [Member] | ||
Long-Term Incentive Compensation Plan 2010 [Member] | Long-Term Incentive Compensation Plan 2010 [Member] | Stock Incentive Plan for Non-employee Directors 2010 [Member] | Stock Incentive Plan for Non-employee Directors 2010 [Member] | Exercise Price Range ($5.73 - $7.19) [Member] | Exercise Price Range ($10.01 - $27.55) [Member] | Stock Incentive Plan for Non employee Directors 2004 [Member] | Maximum [Member] | Minimum [Member] | Long-Term Incentive Compensation Plan 2010 [Member] | |||||||||||||||||||
Schedule of Share Based Compensation Arrangements by Options Activity and Exercise Price Range [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares of common stock that can be granted, maximum (in shares) | ' | 650,000 | 250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,943 | 23,449 | 16,457 | 20,774 | 32,880 | 17,689 | ' | ' | ' | ' | ' | ' |
Options expiration period after the date of grant (in years) | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years |
Percentage of combined voting power of the stock owned by optionee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'More than 10% |
Percentage of grant date fair market value specified as price of incentive stock options based on condition minimum (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 110.00% |
Percentage of stock owned by shareholder to which no options were granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Greater than 10% |
Number of stock options outstanding under specified plan (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21,600 | 21,600 | ' | ' | ' | 21,600 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares available for future options (in shares) | ' | ' | ' | ' | ' | ' | 500,121 | 539,566 | 193,858 | 204,988 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding at beginning of year (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21,600 | ' | ' | ' | ' | 21,600 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Canceled/expired (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding at end of year (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21,600 | 21,600 | ' | ' | ' | 21,600 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding at beginning of year (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $14.88 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Canceled/expired (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding at end of year (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $14.88 | $14.88 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Remaining Contractual Life (years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding at end of year (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years 11 months 8 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding at end of year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $392,298 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options price range | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options price range, lower range limit (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5.73 | $10.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options price range, upper range limit (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7.19 | $27.55 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,400 | 19,200 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average price (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6.23 | $15.96 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average remaining life (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | '4 years 3 months 22 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of options vested on adoption of statement (in hundredths) | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation cost, recognized | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 1,238,000 | -631,000 | 0 | 209,000 | 838,000 | 1,184,000 | 1,234,000 | 1,435,000 | ' | ' | ' |
Intrinsic value of options exercised | ' | ' | ' | 0 | 539,000 | 1,002,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock awards granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 43,154 | 28,255 | 15,449 | 17,312 | 28,535 | 15,335 | 51,004 | 83,729 | 43,620 | ' | ' | ' |
Stock awards vesting period (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '3 years | '3 years | '3 years | '3 years | '3 years | ' | ' | ' | '3 years | '1 year | ' |
Unvested stock awards outstanding (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 41,160 | 42,962 | 133,479 | 44,712 | 42,141 | 102,391 | 116,297 | 186,469 | 250,323 | ' | ' | ' |
Weighted average grant date fair value of the unvested awards (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $23.18 | ' | ' | $22.51 | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation expense related to the unvested shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,331,000 | ' | ' | 1,007,000 | ' | ' | 1,145,000 | ' | ' | ' | ' | ' |
Total fair value of stock awards vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 2,787,000 | 2,068,000 | 0 | 2,055,000 | 1,671,000 | 3,053,000 | 2,177,000 | 977,000 | ' | ' | ' |
Accrued liabilities, employee benefits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ($2,787,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum performance period for awards considered as long term liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock awards forfeited (in shares) | 3,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000 | 30,532 | ' | ' | ' | ' |
Recognition period for unrecognized compensation expense (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' |
ENGINEERING_AND_DEVELOPMENT_CO1
ENGINEERING AND DEVELOPMENT COSTS (Details) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
ENGINEERING AND DEVELOPMENT COSTS [Abstract] | ' | ' | ' |
Research and development expenses | $3,028,000 | $3,058,000 | $2,657,000 |
Engineering and development costs | $10,900,000 | $10,242,000 | $10,316,000 |
PENSION_AND_OTHER_POSTRETIREME2
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Details) (USD $) | 12 Months Ended | ||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Cost of premium for health coverage plan (in hundredths) | 100.00% | ' | ' | ||
Change in plan assets [Roll Forward] | ' | ' | ' | ||
Fair value of assets, beginning of year | $94,723,000 | ' | ' | ||
Fair value of assets, end of year | 102,495,000 | ' | ' | ||
Amounts recognized in accumulated other comprehensive loss consist of (net of tax) [Abstract] | ' | ' | ' | ||
Net amount recognized | 36,722,000 | 42,848,000 | ' | ||
Amounts that will be recognized from accumulated other comprehensive income (loss) in next fiscal year [Abstract] | ' | ' | ' | ||
Accumulated benefit obligation for all defined benefit pension plans | 123,832,000 | 125,846,000 | ' | ||
Weighted average assumptions used to determine net periodic benefit cost [Abstract] | ' | ' | ' | ||
Weighted average healthcare cost trend rate (in hundredths) | 8.00% | ' | ' | ||
Ultimate healthcare cost trend rate (in hundredths) | 5.00% | ' | ' | ||
Percentage of increase in assumed healthcare cost trend rate (in hundredths) | 1.00% | ' | ' | ||
Effect of one percentage point increase on accumulated postretirement benefit obligation | 351,000 | ' | ' | ||
Effect of one percentage point increase on service and interest cost components | 13,000 | ' | ' | ||
Percentage of decrease in assumed healthcare cost trend rate (in hundredths) | 1.00% | ' | ' | ||
Effect of one percentage point decrease on accumulated postretirement benefit obligation | 316,000 | ' | ' | ||
Effect of one percentage point decrease on service and interest cost components | 12,000 | ' | ' | ||
Pension plan weighted-average asset allocations [Abstract] | ' | ' | ' | ||
Target Allocation (in hundredths) | 100.00% | ' | ' | ||
Actual Allocation (in hundredths) | 100.00% | 100.00% | ' | ||
Expected long term return on plan assets (in hundredths) | 7.50% | ' | ' | ||
Level I [Member] | ' | ' | ' | ||
Change in plan assets [Roll Forward] | ' | ' | ' | ||
Fair value of assets, end of year | 50,080,000 | 47,265,000 | ' | ||
Level II [Member] | ' | ' | ' | ||
Change in plan assets [Roll Forward] | ' | ' | ' | ||
Fair value of assets, end of year | 31,386,000 | 25,474,000 | ' | ||
Level III [Member] | ' | ' | ' | ||
Change in plan assets [Roll Forward] | ' | ' | ' | ||
Fair value of assets, end of year | 21,029,000 | 21,984,000 | ' | ||
Equity Securities [Member] | ' | ' | ' | ||
Pension plan weighted-average asset allocations [Abstract] | ' | ' | ' | ||
Target Allocation (in hundredths) | 65.00% | ' | ' | ||
Actual Allocation (in hundredths) | 65.00% | 64.00% | ' | ||
Debt Securities [Member] | ' | ' | ' | ||
Pension plan weighted-average asset allocations [Abstract] | ' | ' | ' | ||
Target Allocation (in hundredths) | 25.00% | ' | ' | ||
Actual Allocation (in hundredths) | 23.00% | 26.00% | ' | ||
Real Estate [Member] | ' | ' | ' | ||
Change in plan assets [Roll Forward] | ' | ' | ' | ||
Fair value of assets, beginning of year | 8,697,000 | [1] | ' | ' | |
Fair value of assets, end of year | 11,206,000 | [1] | ' | ' | |
Pension plan weighted-average asset allocations [Abstract] | ' | ' | ' | ||
Target Allocation (in hundredths) | 10.00% | ' | ' | ||
Actual Allocation (in hundredths) | 12.00% | 10.00% | ' | ||
Real Estate [Member] | Level I [Member] | ' | ' | ' | ||
Change in plan assets [Roll Forward] | ' | ' | ' | ||
Fair value of assets, end of year | 0 | [1] | 0 | [1] | ' |
Real Estate [Member] | Level II [Member] | ' | ' | ' | ||
Change in plan assets [Roll Forward] | ' | ' | ' | ||
Fair value of assets, end of year | 11,206,000 | [1] | 5,685,000 | [1] | ' |
Real Estate [Member] | Level III [Member] | ' | ' | ' | ||
Change in plan assets [Roll Forward] | ' | ' | ' | ||
Fair value of assets, end of year | 0 | [1] | 3,012,000 | [1] | 5,324,000 |
Common Stock Held by Domestic Pension Plans [Member] | ' | ' | ' | ||
Pension plan weighted-average asset allocations [Abstract] | ' | ' | ' | ||
Actual Allocation (in hundredths) | 3.20% | 2.50% | ' | ||
Number of shares of equity included in plan assets (in shares) | 98,211 | 98,211 | ' | ||
Fair market value of shares held in pension plans | 3,245,874 | 2,327,601 | ' | ||
Cash and Cash Equivalents [Member] | ' | ' | ' | ||
Change in plan assets [Roll Forward] | ' | ' | ' | ||
Fair value of assets, end of year | 965,000 | 2,376,000 | ' | ||
Cash and Cash Equivalents [Member] | Level I [Member] | ' | ' | ' | ||
Change in plan assets [Roll Forward] | ' | ' | ' | ||
Fair value of assets, end of year | 965,000 | 2,376,000 | ' | ||
Cash and Cash Equivalents [Member] | Level II [Member] | ' | ' | ' | ||
Change in plan assets [Roll Forward] | ' | ' | ' | ||
Fair value of assets, end of year | 0 | 0 | ' | ||
Cash and Cash Equivalents [Member] | Level III [Member] | ' | ' | ' | ||
Change in plan assets [Roll Forward] | ' | ' | ' | ||
Fair value of assets, end of year | 0 | 0 | ' | ||
Fixed Income Securities [Member] | ' | ' | ' | ||
Change in plan assets [Roll Forward] | ' | ' | ' | ||
Fair value of assets, end of year | 21,892,000 | [2] | 20,935,000 | [2] | ' |
Fixed Income Securities [Member] | Level I [Member] | ' | ' | ' | ||
Change in plan assets [Roll Forward] | ' | ' | ' | ||
Fair value of assets, end of year | 7,603,000 | [2] | 7,240,000 | [2] | ' |
Fixed Income Securities [Member] | Level II [Member] | ' | ' | ' | ||
Change in plan assets [Roll Forward] | ' | ' | ' | ||
Fair value of assets, end of year | 14,289,000 | [2] | 13,695,000 | [2] | ' |
Fixed Income Securities [Member] | Level III [Member] | ' | ' | ' | ||
Change in plan assets [Roll Forward] | ' | ' | ' | ||
Fair value of assets, end of year | 0 | [2] | 0 | [2] | ' |
Domestic Equity Securities [Member] | ' | ' | ' | ||
Change in plan assets [Roll Forward] | ' | ' | ' | ||
Fair value of assets, end of year | 30,727,000 | [3] | 28,334,000 | [3] | ' |
Domestic Equity Securities [Member] | Level I [Member] | ' | ' | ' | ||
Change in plan assets [Roll Forward] | ' | ' | ' | ||
Fair value of assets, end of year | 30,727,000 | [3] | 28,334,000 | [3] | ' |
Domestic Equity Securities [Member] | Level II [Member] | ' | ' | ' | ||
Change in plan assets [Roll Forward] | ' | ' | ' | ||
Fair value of assets, end of year | 0 | [3] | 0 | [3] | ' |
Domestic Equity Securities [Member] | Level III [Member] | ' | ' | ' | ||
Change in plan assets [Roll Forward] | ' | ' | ' | ||
Fair value of assets, end of year | 0 | [3] | 0 | [3] | ' |
Foreign Equity Securities [Member] | ' | ' | ' | ||
Change in plan assets [Roll Forward] | ' | ' | ' | ||
Fair value of assets, end of year | 16,676,000 | [4] | 15,409,000 | [4] | ' |
Foreign Equity Securities [Member] | Level I [Member] | ' | ' | ' | ||
Change in plan assets [Roll Forward] | ' | ' | ' | ||
Fair value of assets, end of year | 10,785,000 | [4] | 9,315,000 | [4] | ' |
Foreign Equity Securities [Member] | Level II [Member] | ' | ' | ' | ||
Change in plan assets [Roll Forward] | ' | ' | ' | ||
Fair value of assets, end of year | 5,891,000 | [4] | 6,094,000 | [4] | ' |
Foreign Equity Securities [Member] | Level III [Member] | ' | ' | ' | ||
Change in plan assets [Roll Forward] | ' | ' | ' | ||
Fair value of assets, end of year | 0 | [4] | 0 | [4] | ' |
Other Plan Assets [Member] | ' | ' | ' | ||
Change in plan assets [Roll Forward] | ' | ' | ' | ||
Fair value of assets, end of year | 14,689,000 | [5] | 13,153,000 | [5] | ' |
Other Plan Assets [Member] | Level I [Member] | ' | ' | ' | ||
Change in plan assets [Roll Forward] | ' | ' | ' | ||
Fair value of assets, end of year | 0 | [5] | 0 | [5] | ' |
Other Plan Assets [Member] | Level II [Member] | ' | ' | ' | ||
Change in plan assets [Roll Forward] | ' | ' | ' | ||
Fair value of assets, end of year | 0 | [5] | 0 | [5] | ' |
Other Plan Assets [Member] | Level III [Member] | ' | ' | ' | ||
Change in plan assets [Roll Forward] | ' | ' | ' | ||
Fair value of assets, end of year | 14,689,000 | [5] | 13,153,000 | [5] | 11,988,000 |
Variable Annuity [Member] | ' | ' | ' | ||
Change in plan assets [Roll Forward] | ' | ' | ' | ||
Fair value of assets, end of year | 6,340,000 | [6] | 5,819,000 | [6] | ' |
Variable Annuity [Member] | Level I [Member] | ' | ' | ' | ||
Change in plan assets [Roll Forward] | ' | ' | ' | ||
Fair value of assets, end of year | 0 | [6] | 0 | [6] | ' |
Variable Annuity [Member] | Level II [Member] | ' | ' | ' | ||
Change in plan assets [Roll Forward] | ' | ' | ' | ||
Fair value of assets, end of year | 0 | [6] | 0 | [6] | ' |
Variable Annuity [Member] | Level III [Member] | ' | ' | ' | ||
Change in plan assets [Roll Forward] | ' | ' | ' | ||
Fair value of assets, end of year | 6,340,000 | [6] | 5,819,000 | [6] | 5,333,000 |
Pension Benefits [Member] | ' | ' | ' | ||
Change in benefit obligation [Roll Forward] | ' | ' | ' | ||
Benefit obligation, beginning of year | 125,846,000 | 133,261,000 | ' | ||
Service cost | 536,000 | 367,000 | 292,000 | ||
Interest cost | 5,425,000 | 5,399,000 | 6,231,000 | ||
Actuarial loss (gain) | 1,221,000 | -4,123,000 | ' | ||
Contributions by plan participants | 174,000 | 162,000 | ' | ||
Settlements | -121,000 | ' | ' | ||
Benefits paid | -9,249,000 | -9,220,000 | ' | ||
Benefit obligation, end of year | 123,832,000 | 125,846,000 | 133,261,000 | ||
Change in plan assets [Roll Forward] | ' | ' | ' | ||
Fair value of assets, beginning of year | 94,723,000 | 88,775,000 | ' | ||
Actual return on plan assets | 14,031,000 | 10,500,000 | ' | ||
Employer contribution | 2,816,000 | 4,506,000 | ' | ||
Contributions by plan participants | 174,000 | 162,000 | ' | ||
Benefits paid | -9,249,000 | -9,220,000 | ' | ||
Fair value of assets, end of year | 102,495,000 | 94,723,000 | 88,775,000 | ||
Funded status | -21,337,000 | -31,123,000 | ' | ||
Amounts recognized in the balance sheet consist of [Roll Forward] | ' | ' | ' | ||
Other assets - noncurrent | 680,000 | 566,000 | ' | ||
Accrued liabilities - current | -1,189,000 | -389,000 | ' | ||
Accrued retirement benefits - noncurrent | -20,828,000 | -31,300,000 | ' | ||
Net amounts recognized | -21,337,000 | -31,123,000 | ' | ||
Amounts recognized in accumulated other comprehensive loss consist of (net of tax) [Abstract] | ' | ' | ' | ||
Net transition obligation | 340,000 | 345,000 | ' | ||
Actuarial net loss | 33,220,000 | 38,933,000 | ' | ||
Net amount recognized | 33,560,000 | 39,278,000 | ' | ||
Amounts that will be recognized from accumulated other comprehensive income (loss) in next fiscal year [Abstract] | ' | ' | ' | ||
Net transition obligation | 38,000 | ' | ' | ||
Actuarial net loss | 2,437,000 | ' | ' | ||
Net amount to be recognized | 2,475,000 | ' | ' | ||
Information for pension plans with an accumulated benefit obligations in excess of plan assets [Abstract] | ' | ' | ' | ||
Projected and accumulated benefit obligation | 122,045,000 | 123,933,000 | ' | ||
Fair value of plan assets | 100,028,000 | 92,244,000 | ' | ||
Components of Net Periodic Benefit Cost [Abstract] | ' | ' | ' | ||
Service cost | 536,000 | 367,000 | 292,000 | ||
Interest cost | 5,425,000 | 5,399,000 | 6,231,000 | ||
Expected return on plan assets | -6,591,000 | -6,382,000 | -7,766,000 | ||
Settlement loss | 0 | 5,000 | 11,000 | ||
Amortization of transition obligation | 32,000 | 35,000 | 34,000 | ||
Amortization of actuarial net loss | 2,894,000 | 3,357,000 | 2,319,000 | ||
Net periodic benefit cost | 2,296,000 | 2,781,000 | 1,121,000 | ||
Changes in plan assets and benefit obligations recognized in other comprehensive income [Abstract] | ' | ' | ' | ||
Net gain | -6,303,000 | ' | ' | ||
Amortization of prior service benefit | 7,000 | ' | ' | ||
Amortization of transition asset | -38,000 | ' | ' | ||
Amortization of net (loss) gain | -2,894,000 | ' | ' | ||
Total recognized in other comprehensive income | -9,228,000 | ' | ' | ||
Net periodic benefit cost | 2,296,000 | 2,781,000 | 1,121,000 | ||
Total recognized in net periodic benefit cost and other comprehensive income | -6,932,000 | ' | ' | ||
Weighted average assumptions used to determine benefit obligations [Abstract] | ' | ' | ' | ||
Discount rate (in hundredths) | 4.06% | 4.35% | ' | ||
Expected return on plan assets (in hundredths) | 7.39% | 7.41% | ' | ||
Weighted average assumptions used to determine net periodic benefit cost [Abstract] | ' | ' | ' | ||
Discount rate (in hundredths) | 4.35% | 4.20% | 5.16% | ||
Expected return on plan assets (in hundredths) | 7.41% | 7.50% | 8.50% | ||
Other Postretirement Benefits [Member] | ' | ' | ' | ||
Change in benefit obligation [Roll Forward] | ' | ' | ' | ||
Benefit obligation, beginning of year | 17,739,000 | 19,645,000 | ' | ||
Service cost | 37,000 | 34,000 | 41,000 | ||
Interest cost | 659,000 | 766,000 | 985,000 | ||
Actuarial loss (gain) | -60,000 | -938,000 | ' | ||
Contributions by plan participants | 581,000 | 677,000 | ' | ||
Benefits paid | -2,372,000 | -2,445,000 | ' | ||
Benefit obligation, end of year | 16,584,000 | 17,739,000 | 19,645,000 | ||
Change in plan assets [Roll Forward] | ' | ' | ' | ||
Fair value of assets, beginning of year | 0 | 0 | ' | ||
Actual return on plan assets | 0 | 0 | ' | ||
Employer contribution | 1,791,000 | 1,768,000 | ' | ||
Contributions by plan participants | 581,000 | 677,000 | ' | ||
Benefits paid | -2,372,000 | -2,445,000 | ' | ||
Fair value of assets, end of year | 0 | 0 | 0 | ||
Funded status | -16,584,000 | -17,739,000 | ' | ||
Amounts recognized in the balance sheet consist of [Roll Forward] | ' | ' | ' | ||
Other assets - noncurrent | 0 | 0 | ' | ||
Accrued liabilities - current | -2,418,000 | -2,470,000 | ' | ||
Accrued retirement benefits - noncurrent | -14,166,000 | -15,269,000 | ' | ||
Net amounts recognized | -16,584,000 | -17,739,000 | ' | ||
Amounts recognized in accumulated other comprehensive loss consist of (net of tax) [Abstract] | ' | ' | ' | ||
Net transition obligation | 0 | 0 | ' | ||
Actuarial net loss | 3,163,000 | 3,570,000 | ' | ||
Net amount recognized | 3,163,000 | 3,570,000 | ' | ||
Amounts that will be recognized from accumulated other comprehensive income (loss) in next fiscal year [Abstract] | ' | ' | ' | ||
Net transition obligation | 0 | ' | ' | ||
Actuarial net loss | 638,000 | ' | ' | ||
Net amount to be recognized | 638,000 | ' | ' | ||
Components of Net Periodic Benefit Cost [Abstract] | ' | ' | ' | ||
Service cost | 37,000 | 34,000 | 41,000 | ||
Interest cost | 659,000 | 766,000 | 985,000 | ||
Amortization of prior service cost | 0 | 0 | -508,000 | ||
Amortization of actuarial net loss | 602,000 | 792,000 | 929,000 | ||
Net periodic benefit cost | 1,298,000 | 1,592,000 | 1,447,000 | ||
Changes in plan assets and benefit obligations recognized in other comprehensive income [Abstract] | ' | ' | ' | ||
Net gain | -59,000 | ' | ' | ||
Amortization of prior service benefit | 0 | ' | ' | ||
Amortization of transition asset | 0 | ' | ' | ||
Amortization of net (loss) gain | -602,000 | ' | ' | ||
Total recognized in other comprehensive income | -661,000 | ' | ' | ||
Net periodic benefit cost | 1,298,000 | 1,592,000 | 1,447,000 | ||
Total recognized in net periodic benefit cost and other comprehensive income | $637,000 | ' | ' | ||
Weighted average assumptions used to determine benefit obligations [Abstract] | ' | ' | ' | ||
Discount rate (in hundredths) | 3.76% | 3.99% | ' | ||
Weighted average assumptions used to determine net periodic benefit cost [Abstract] | ' | ' | ' | ||
Discount rate (in hundredths) | 3.99% | 4.20% | 5.16% | ||
[1] | Real estate investments invested in common collective trusts and other mutual funds holding real estate investments. They are valued at the net asset value ("NAV") as determined by the custodian of the fund. The NAV is based on the fair value of the underlying assets owned by the fund, minus its liabilities, divided by the number of units outstanding. Level 2 investments represent funds where regular opportunities exist for the Company to sell the holdings, whereas Level 3 investments represent funds where less frequent opportunities exist during the year for the Company to sell it's holding in the funds. | ||||
[2] | Fixed income consists of corporate bonds with investment grade BBB or better from diversified industries, as well as government debt securities. Corporate and government debt investments are valued utilizing a market approach that includes various valuation techniques and sources such as value generation models, broker quotes in active and inactive markets, benchmark yields and securities, reported trades, issuer spreads, and/or other applicable reference data. | ||||
[3] | U.S. equity securities include companies that are well diversified by industry sector and equity style (i.e., growth and value strategies). Investments are primarily in large capitalization stocks and, to a lesser extent, mid- and small-cap stocks. These securities are valued at the closing price reported on the active market on which the individual securities are traded. | ||||
[4] | International equities are invested in companies that are traded on exchanges outside the U.S. and are well diversified by industry sector, country, capitalization and equity style (i.e., growth and value strategies). Certain assets are invested in international commingled equity funds. The vast majority of the investments are made in companies in developed markets with a smaller percentage in emerging markets. Securities traded on exchanges are valued at the closing price reported on the active market on which the individual securities are traded. International commingled funds are valued at the net asset value ("NAV") as determined by the custodian of the fund. The NAV is based on the fair value of the underlying assets owned by the fund, minus its liabilities, divided by the number of units outstanding. | ||||
[5] | Other consists of hedged equity mutual funds. These investments are valued at the net asset value ("NAV") as determined by the custodian of the fund. The NAV is based on the fair value of the underlying assets owned by the fund, minus its liabilities, divided by the number of units outstanding. | ||||
[6] | Annuity contracts represent contractual agreements in which payments are made to an insurance company, which agrees to pay out an income or lump sum amount at a later date. Annuity contracts are valued at the net present value of future cash flows. |
PENSION_AND_OTHER_POSTRETIREME3
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS, PLAN ASSETS USING FAIR VALUE HIERARCHY (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | ||
In Thousands, unless otherwise specified | |||||
Defined benefit plan, fair value hierarchy [Abstract] | ' | ' | ' | ||
Defined Benefit Plan, fair value of plan assets | $102,495 | $94,723 | ' | ||
Level I [Member] | ' | ' | ' | ||
Defined benefit plan, fair value hierarchy [Abstract] | ' | ' | ' | ||
Defined Benefit Plan, fair value of plan assets | 50,080 | 47,265 | ' | ||
Level II [Member] | ' | ' | ' | ||
Defined benefit plan, fair value hierarchy [Abstract] | ' | ' | ' | ||
Defined Benefit Plan, fair value of plan assets | 31,386 | 25,474 | ' | ||
Level III [Member] | ' | ' | ' | ||
Defined benefit plan, fair value hierarchy [Abstract] | ' | ' | ' | ||
Defined Benefit Plan, fair value of plan assets | 21,029 | 21,984 | ' | ||
Real Estate [Member] | ' | ' | ' | ||
Defined benefit plan, fair value hierarchy [Abstract] | ' | ' | ' | ||
Defined Benefit Plan, fair value of plan assets | 11,206 | [1] | 8,697 | [1] | ' |
Real Estate [Member] | Level I [Member] | ' | ' | ' | ||
Defined benefit plan, fair value hierarchy [Abstract] | ' | ' | ' | ||
Defined Benefit Plan, fair value of plan assets | 0 | [1] | 0 | [1] | ' |
Real Estate [Member] | Level II [Member] | ' | ' | ' | ||
Defined benefit plan, fair value hierarchy [Abstract] | ' | ' | ' | ||
Defined Benefit Plan, fair value of plan assets | 11,206 | [1] | 5,685 | [1] | ' |
Real Estate [Member] | Level III [Member] | ' | ' | ' | ||
Defined benefit plan, fair value hierarchy [Abstract] | ' | ' | ' | ||
Defined Benefit Plan, fair value of plan assets | 0 | [1] | 3,012 | [1] | 5,324 |
Cash and Cash Equivalents [Member] | ' | ' | ' | ||
Defined benefit plan, fair value hierarchy [Abstract] | ' | ' | ' | ||
Defined Benefit Plan, fair value of plan assets | 965 | 2,376 | ' | ||
Cash and Cash Equivalents [Member] | Level I [Member] | ' | ' | ' | ||
Defined benefit plan, fair value hierarchy [Abstract] | ' | ' | ' | ||
Defined Benefit Plan, fair value of plan assets | 965 | 2,376 | ' | ||
Cash and Cash Equivalents [Member] | Level II [Member] | ' | ' | ' | ||
Defined benefit plan, fair value hierarchy [Abstract] | ' | ' | ' | ||
Defined Benefit Plan, fair value of plan assets | 0 | 0 | ' | ||
Cash and Cash Equivalents [Member] | Level III [Member] | ' | ' | ' | ||
Defined benefit plan, fair value hierarchy [Abstract] | ' | ' | ' | ||
Defined Benefit Plan, fair value of plan assets | 0 | 0 | ' | ||
Fixed income [Member] | ' | ' | ' | ||
Defined benefit plan, fair value hierarchy [Abstract] | ' | ' | ' | ||
Defined Benefit Plan, fair value of plan assets | 21,892 | [2] | 20,935 | [2] | ' |
Fixed income [Member] | Level I [Member] | ' | ' | ' | ||
Defined benefit plan, fair value hierarchy [Abstract] | ' | ' | ' | ||
Defined Benefit Plan, fair value of plan assets | 7,603 | [2] | 7,240 | [2] | ' |
Fixed income [Member] | Level II [Member] | ' | ' | ' | ||
Defined benefit plan, fair value hierarchy [Abstract] | ' | ' | ' | ||
Defined Benefit Plan, fair value of plan assets | 14,289 | [2] | 13,695 | [2] | ' |
Fixed income [Member] | Level III [Member] | ' | ' | ' | ||
Defined benefit plan, fair value hierarchy [Abstract] | ' | ' | ' | ||
Defined Benefit Plan, fair value of plan assets | 0 | [2] | 0 | [2] | ' |
U.S. [Member] | ' | ' | ' | ||
Defined benefit plan, fair value hierarchy [Abstract] | ' | ' | ' | ||
Defined Benefit Plan, fair value of plan assets | 30,727 | [3] | 28,334 | [3] | ' |
U.S. [Member] | Level I [Member] | ' | ' | ' | ||
Defined benefit plan, fair value hierarchy [Abstract] | ' | ' | ' | ||
Defined Benefit Plan, fair value of plan assets | 30,727 | [3] | 28,334 | [3] | ' |
U.S. [Member] | Level II [Member] | ' | ' | ' | ||
Defined benefit plan, fair value hierarchy [Abstract] | ' | ' | ' | ||
Defined Benefit Plan, fair value of plan assets | 0 | [3] | 0 | [3] | ' |
U.S. [Member] | Level III [Member] | ' | ' | ' | ||
Defined benefit plan, fair value hierarchy [Abstract] | ' | ' | ' | ||
Defined Benefit Plan, fair value of plan assets | 0 | [3] | 0 | [3] | ' |
International [Member] | ' | ' | ' | ||
Defined benefit plan, fair value hierarchy [Abstract] | ' | ' | ' | ||
Defined Benefit Plan, fair value of plan assets | 16,676 | [4] | 15,409 | [4] | ' |
International [Member] | Level I [Member] | ' | ' | ' | ||
Defined benefit plan, fair value hierarchy [Abstract] | ' | ' | ' | ||
Defined Benefit Plan, fair value of plan assets | 10,785 | [4] | 9,315 | [4] | ' |
International [Member] | Level II [Member] | ' | ' | ' | ||
Defined benefit plan, fair value hierarchy [Abstract] | ' | ' | ' | ||
Defined Benefit Plan, fair value of plan assets | 5,891 | [4] | 6,094 | [4] | ' |
International [Member] | Level III [Member] | ' | ' | ' | ||
Defined benefit plan, fair value hierarchy [Abstract] | ' | ' | ' | ||
Defined Benefit Plan, fair value of plan assets | 0 | [4] | 0 | [4] | ' |
Other [Member] | ' | ' | ' | ||
Defined benefit plan, fair value hierarchy [Abstract] | ' | ' | ' | ||
Defined Benefit Plan, fair value of plan assets | 14,689 | [5] | 13,153 | [5] | ' |
Other [Member] | Level I [Member] | ' | ' | ' | ||
Defined benefit plan, fair value hierarchy [Abstract] | ' | ' | ' | ||
Defined Benefit Plan, fair value of plan assets | 0 | [5] | 0 | [5] | ' |
Other [Member] | Level II [Member] | ' | ' | ' | ||
Defined benefit plan, fair value hierarchy [Abstract] | ' | ' | ' | ||
Defined Benefit Plan, fair value of plan assets | 0 | [5] | 0 | [5] | ' |
Other [Member] | Level III [Member] | ' | ' | ' | ||
Defined benefit plan, fair value hierarchy [Abstract] | ' | ' | ' | ||
Defined Benefit Plan, fair value of plan assets | 14,689 | [5] | 13,153 | [5] | 11,988 |
Annuity contracts [Member] | ' | ' | ' | ||
Defined benefit plan, fair value hierarchy [Abstract] | ' | ' | ' | ||
Defined Benefit Plan, fair value of plan assets | 6,340 | [6] | 5,819 | [6] | ' |
Annuity contracts [Member] | Level I [Member] | ' | ' | ' | ||
Defined benefit plan, fair value hierarchy [Abstract] | ' | ' | ' | ||
Defined Benefit Plan, fair value of plan assets | 0 | [6] | 0 | [6] | ' |
Annuity contracts [Member] | Level II [Member] | ' | ' | ' | ||
Defined benefit plan, fair value hierarchy [Abstract] | ' | ' | ' | ||
Defined Benefit Plan, fair value of plan assets | 0 | [6] | 0 | [6] | ' |
Annuity contracts [Member] | Level III [Member] | ' | ' | ' | ||
Defined benefit plan, fair value hierarchy [Abstract] | ' | ' | ' | ||
Defined Benefit Plan, fair value of plan assets | 6,340 | [6] | 5,819 | [6] | 5,333 |
Pension Benefits [Member] | ' | ' | ' | ||
Defined benefit plan, fair value hierarchy [Abstract] | ' | ' | ' | ||
Defined Benefit Plan, fair value of plan assets | 102,495 | 94,723 | 88,775 | ||
Other Postretirement Benefits [Member] | ' | ' | ' | ||
Defined benefit plan, fair value hierarchy [Abstract] | ' | ' | ' | ||
Defined Benefit Plan, fair value of plan assets | $0 | $0 | $0 | ||
[1] | Real estate investments invested in common collective trusts and other mutual funds holding real estate investments. They are valued at the net asset value ("NAV") as determined by the custodian of the fund. The NAV is based on the fair value of the underlying assets owned by the fund, minus its liabilities, divided by the number of units outstanding. Level 2 investments represent funds where regular opportunities exist for the Company to sell the holdings, whereas Level 3 investments represent funds where less frequent opportunities exist during the year for the Company to sell it's holding in the funds. | ||||
[2] | Fixed income consists of corporate bonds with investment grade BBB or better from diversified industries, as well as government debt securities. Corporate and government debt investments are valued utilizing a market approach that includes various valuation techniques and sources such as value generation models, broker quotes in active and inactive markets, benchmark yields and securities, reported trades, issuer spreads, and/or other applicable reference data. | ||||
[3] | U.S. equity securities include companies that are well diversified by industry sector and equity style (i.e., growth and value strategies). Investments are primarily in large capitalization stocks and, to a lesser extent, mid- and small-cap stocks. These securities are valued at the closing price reported on the active market on which the individual securities are traded. | ||||
[4] | International equities are invested in companies that are traded on exchanges outside the U.S. and are well diversified by industry sector, country, capitalization and equity style (i.e., growth and value strategies). Certain assets are invested in international commingled equity funds. The vast majority of the investments are made in companies in developed markets with a smaller percentage in emerging markets. Securities traded on exchanges are valued at the closing price reported on the active market on which the individual securities are traded. International commingled funds are valued at the net asset value ("NAV") as determined by the custodian of the fund. The NAV is based on the fair value of the underlying assets owned by the fund, minus its liabilities, divided by the number of units outstanding. | ||||
[5] | Other consists of hedged equity mutual funds. These investments are valued at the net asset value ("NAV") as determined by the custodian of the fund. The NAV is based on the fair value of the underlying assets owned by the fund, minus its liabilities, divided by the number of units outstanding. | ||||
[6] | Annuity contracts represent contractual agreements in which payments are made to an insurance company, which agrees to pay out an income or lump sum amount at a later date. Annuity contracts are valued at the net present value of future cash flows. |
PENSION_AND_OTHER_POSTRETIREME4
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS, RECONCILIATION OF FAIR VALUE MEASUREMENTS USING SIGNIFICANT UNOBSERVABLE INPUTS (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | ||
Actual return on plan assets [Abstract] | ' | ' | ||
Fair value of assets, end of year | $102,495 | $94,723 | ||
Level III [Member] | ' | ' | ||
Actual return on plan assets [Abstract] | ' | ' | ||
Fair value of assets, end of year | 21,029 | 21,984 | ||
Annuity Contracts [Member] | ' | ' | ||
Actual return on plan assets [Abstract] | ' | ' | ||
Fair value of assets, end of year | 6,340 | [1] | 5,819 | [1] |
Annuity Contracts [Member] | Level III [Member] | ' | ' | ||
Defined benefit plan reconciliation of fair value measurements (Level III) [Abstract] | ' | ' | ||
Fair value of assets, beginning of year | 5,819 | [1] | 5,333 | |
Actual return on plan assets [Abstract] | ' | ' | ||
Relating to assets still held at reporting date | 433 | 298 | ||
Relating to assets sold during the period | 0 | 0 | ||
Purchases, sales and settlements, net | 88 | 188 | ||
Transfers in and/or out of Level III | 0 | 0 | ||
Fair value of assets, end of year | 6,340 | [1] | 5,819 | [1] |
Real Estate [Member] | ' | ' | ||
Actual return on plan assets [Abstract] | ' | ' | ||
Fair value of assets, end of year | 11,206 | [2] | 8,697 | [2] |
Real Estate [Member] | Level III [Member] | ' | ' | ||
Defined benefit plan reconciliation of fair value measurements (Level III) [Abstract] | ' | ' | ||
Fair value of assets, beginning of year | 3,012 | [2] | 5,324 | |
Actual return on plan assets [Abstract] | ' | ' | ||
Relating to assets still held at reporting date | 0 | 391 | ||
Relating to assets sold during the period | 257 | 0 | ||
Purchases, sales and settlements, net | -3,269 | -2,518 | ||
Transfers in and/or out of Level III | 0 | -185 | ||
Fair value of assets, end of year | 0 | [2] | 3,012 | [2] |
Other [Member] | ' | ' | ||
Actual return on plan assets [Abstract] | ' | ' | ||
Fair value of assets, end of year | 14,689 | [3] | 13,153 | [3] |
Other [Member] | Level III [Member] | ' | ' | ||
Defined benefit plan reconciliation of fair value measurements (Level III) [Abstract] | ' | ' | ||
Fair value of assets, beginning of year | 13,153 | [3] | 11,988 | |
Actual return on plan assets [Abstract] | ' | ' | ||
Relating to assets still held at reporting date | 1,536 | 1,165 | ||
Relating to assets sold during the period | 0 | 0 | ||
Purchases, sales and settlements, net | 0 | 0 | ||
Transfers in and/or out of Level III | 0 | 0 | ||
Fair value of assets, end of year | $14,689 | [3] | $13,153 | [3] |
[1] | Annuity contracts represent contractual agreements in which payments are made to an insurance company, which agrees to pay out an income or lump sum amount at a later date. Annuity contracts are valued at the net present value of future cash flows. | |||
[2] | Real estate investments invested in common collective trusts and other mutual funds holding real estate investments. They are valued at the net asset value ("NAV") as determined by the custodian of the fund. The NAV is based on the fair value of the underlying assets owned by the fund, minus its liabilities, divided by the number of units outstanding. Level 2 investments represent funds where regular opportunities exist for the Company to sell the holdings, whereas Level 3 investments represent funds where less frequent opportunities exist during the year for the Company to sell it's holding in the funds. | |||
[3] | Other consists of hedged equity mutual funds. These investments are valued at the net asset value ("NAV") as determined by the custodian of the fund. The NAV is based on the fair value of the underlying assets owned by the fund, minus its liabilities, divided by the number of units outstanding. |
PENSION_AND_OTHER_POSTRETIREME5
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS, CASH FLOWS (Details) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Contributions to defined benefit plans in next fiscal year | $7,218,000 | ' | ' |
Other Postretirement Benefits, Gross Benefits [Abstract] | ' | ' | ' |
Compensation expense in defined benefit plans | 2,218,000 | 2,074,000 | 2,411,000 |
Pension Benefits [Member] | ' | ' | ' |
Expected benefit payments for future services [Abstract] | ' | ' | ' |
2015 | 10,926,000 | ' | ' |
2016 | 10,167,000 | ' | ' |
2017 | 9,902,000 | ' | ' |
2018 | 11,206,000 | ' | ' |
2019 | 9,772,000 | ' | ' |
Years 2020 - 2024 | 42,184,000 | ' | ' |
Other Postretirement Benefits [Member] | ' | ' | ' |
Expected benefit payments for future services [Abstract] | ' | ' | ' |
2015 | 2,418,000 | ' | ' |
2016 | 2,109,000 | ' | ' |
2017 | 1,774,000 | ' | ' |
2018 | 1,621,000 | ' | ' |
2019 | 1,453,000 | ' | ' |
Years 2020 - 2024 | 5,486,000 | ' | ' |
Other Postretirement Benefits, Part D Reimbursement [Abstract] | ' | ' | ' |
2015 | 0 | ' | ' |
2016 | 0 | ' | ' |
2017 | 0 | ' | ' |
2018 | 0 | ' | ' |
2019 | 0 | ' | ' |
Years 2020 - 2024 | 0 | ' | ' |
Other Postretirement Benefits, Gross Benefits [Abstract] | ' | ' | ' |
2015 | 2,418,000 | ' | ' |
2016 | 2,109,000 | ' | ' |
2017 | 1,774,000 | ' | ' |
2018 | 1,621,000 | ' | ' |
2019 | 1,453,000 | ' | ' |
Years 2020 - 2024 | $5,486,000 | ' | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Earnings before income taxes and noncontrolling interest [Abstract] | ' | ' | ' |
United States | $1,107,000 | $3,935,000 | $43,335,000 |
Foreign | 6,989,000 | 5,302,000 | 1,421,000 |
Earnings before income taxes and noncontrolling interest | 8,096,000 | 9,237,000 | 44,756,000 |
Currently payable [Abstract] | ' | ' | ' |
Federal | 651,000 | 1,745,000 | 7,310,000 |
State | 104,000 | -234,000 | 188,000 |
Foreign | 2,837,000 | 2,788,000 | 2,831,000 |
Currently payable, total | 3,592,000 | 4,299,000 | 10,329,000 |
Deferred [Abstract] | ' | ' | ' |
Federal | 1,309,000 | 1,122,000 | 7,653,000 |
State | -95,000 | 439,000 | 662,000 |
Foreign | -580,000 | -874,000 | -829,000 |
Deferred, total | 634,000 | 687,000 | 7,486,000 |
Total provision (benefit) | 4,226,000 | 4,986,000 | 17,815,000 |
Deferred tax assets [Abstract] | ' | ' | ' |
Retirement plans and employee benefits | 13,692,000 | 20,675,000 | ' |
Foreign tax credit carryforwards | 706,000 | 0 | ' |
Federal tax credits | 160,000 | 0 | ' |
State net operating loss and other state credit carryforwards | 348,000 | 91,000 | ' |
Inventory | 1,672,000 | 1,421,000 | ' |
Reserves | 2,578,000 | 2,388,000 | ' |
Foreign NOL carryforwards | 6,090,000 | 4,311,000 | ' |
Accruals | 681,000 | 822,000 | ' |
Other assets | -54,000 | 98,000 | ' |
Deferred tax assets, total | 25,873,000 | 29,806,000 | ' |
Deferred tax liabilities [Abstract] | ' | ' | ' |
Property, plant and equipment | 8,650,000 | 10,295,000 | ' |
Intangibles | 5,528,000 | 5,595,000 | ' |
Other liabilities | 711,000 | 439,000 | ' |
Deferred tax liabilities, total | 14,889,000 | 16,329,000 | ' |
Valuation Allowance | -5,593,000 | -3,724,000 | ' |
Total net deferred tax assets | 5,391,000 | 9,753,000 | ' |
Net deferred tax position is included in Accrued Liabilities | 166,000 | 216,000 | ' |
Additional valuation allowance | 1,869,000 | ' | ' |
Reconciliation of U.S. federal income taxes to actual income taxes [Abstract] | ' | ' | ' |
Rate of federal income tax (in hundredths) | 35.00% | 35.00% | 35.00% |
U.S. federal income tax at 35% | 2,754,000 | 3,104,000 | 15,595,000 |
Increases (reductions) in tax resulting from [Abstract] | ' | ' | ' |
Foreign tax items | -291,000 | 88,000 | 169,000 |
State taxes | 228,000 | 296,000 | 797,000 |
Valuation allowance | 1,551,000 | 1,216,000 | 1,060,000 |
Research & development tax credits | -267,000 | -526,000 | -215,000 |
Change in prior year estimate | 139,000 | 309,000 | 96,000 |
Section 199 deduction | -109,000 | -84,000 | -908,000 |
Goodwill impairment | 0 | 0 | 1,292,000 |
Unrecognized tax benefits | 183,000 | 539,000 | -217,000 |
Other, net | 38,000 | 44,000 | 146,000 |
Total provision (benefit) | 4,226,000 | 4,986,000 | 17,815,000 |
Undistributed earnings of foreign subsidiaries | 2,700,000 | ' | ' |
Open Tax Year | '2010 through 2014 | ' | ' |
Unrecognized tax benefits, which, if recognized would impact the effective tax rate | 800,000 | ' | ' |
Reconciliation of unrecognized tax benefits [Roll Forward] | ' | ' | ' |
Unrecognized tax benefits, beginning of year | 1,556,000 | 1,163,000 | ' |
Additions based on tax positions related to the prior year | 7,000 | 351,000 | ' |
Additions based on tax positions related to the current year | 173,000 | 361,000 | ' |
Subtractions due to statutes closing | -1,000 | -40,000 | ' |
Settlements with taxing authorities | -132,000 | -279,000 | ' |
Unrecognized tax benefits, end of year | 1,603,000 | 1,556,000 | 1,163,000 |
Interest and penalties | $309,000 | $296,000 | ' |
RESTRUCTURING_OF_OPERATIONS_De
RESTRUCTURING OF OPERATIONS (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
RESTRUCTURING OF OPERATIONS [Abstract] | ' | ' | ' | ' |
Pre-tax restructuring charges | $548,000 | $961,000 | $708,000 | $0 |
Cash payments | ' | 857,000 | ' | ' |
Accrual balance of restructuring charge | ' | $785,000 | ' | ' |
SCHEDULE_II_VALUATION_AND_QUAL1
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |||
Allowance for losses on accounts receivable [Member] | ' | ' | ' | |||
Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' | |||
Balance at Beginning of Period | $2,884 | $2,194 | $2,093 | |||
Charged to Costs and Expenses | 1,169 | 1,385 | 549 | |||
Net Acquired | 0 | 0 | 0 | |||
Deductions | 416 | [1] | 695 | [1] | 448 | [1] |
Balance at End of Period | 3,637 | 2,884 | 2,194 | |||
Deferred tax valuation allowance [Member] | ' | ' | ' | |||
Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' | |||
Balance at Beginning of Period | 3,724 | 3,811 | 2,751 | |||
Charged to Costs and Expenses | 2,140 | 1,112 | 1,060 | |||
Net Acquired | 0 | 0 | 0 | |||
Deductions | 271 | [1] | 1,199 | [1],[2] | 0 | [1] |
Balance at End of Period | $5,593 | $3,724 | $3,811 | |||
[1] | Activity primarily represents amounts written-off during the year, along with other adjustments (primarily foreign currency translation adjustments). | |||||
[2] | Represents adjustments resulting from foreign tax audits. |