Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Dec. 25, 2015 | Jan. 28, 2016 | |
Entity Registrant Name | TWIN DISC INC | |
Entity Central Index Key | 100,378 | |
Trading Symbol | twin | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 11,350,174 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 25, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Dec. 25, 2015 | Jun. 30, 2015 |
Current assets: | ||
Cash | $ 20,631,000 | $ 22,936,000 |
Trade accounts receivable, net | 33,632,000 | 43,883,000 |
Inventories | 73,216,000 | 80,241,000 |
Deferred income taxes | 3,731,000 | 4,863,000 |
Other | 11,751,000 | 17,907,000 |
Total current assets | 142,961,000 | 169,830,000 |
Property, plant and equipment, net | 53,970,000 | 56,427,000 |
Goodwill, net | 12,560,000 | 12,789,000 |
Deferred income taxes | 9,699,000 | 4,878,000 |
Intangible assets, net | 2,042,000 | 2,186,000 |
Other assets | 4,453,000 | 3,752,000 |
Total assets | 225,685,000 | 249,862,000 |
Current liabilities: | ||
Short-term borrowings and current maturities of long-term debt | 17,336,000 | 3,571,000 |
Accounts payable | 17,501,000 | 20,729,000 |
Accrued liabilities | 22,524,000 | 32,754,000 |
Total current liabilities | 57,361,000 | 57,054,000 |
Long-term debt | 23,000 | 10,231,000 |
Accrued retirement benefits | 36,187,000 | 38,362,000 |
Deferred income taxes | 919,000 | 1,093,000 |
Other long-term liabilities | 2,210,000 | 2,955,000 |
Total liabilities | 96,700,000 | 109,695,000 |
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 | 11,191,000 | 12,259,000 |
Retained earnings | 182,142,000 | 190,807,000 |
Accumulated other comprehensive loss | (38,055,000) | (35,481,000) |
Equity before treasury stock | 155,278,000 | 167,585,000 |
Less treasury stock, at cost (1,749,294 and 1,832,121 shares, respectively) | 26,790,000 | 28,057,000 |
Total Twin Disc shareholders' equity | 128,488,000 | 139,528,000 |
Noncontrolling interest | 497,000 | 639,000 |
Total equity | 128,985,000 | 140,167,000 |
Total liabilities and equity | $ 225,685,000 | $ 249,862,000 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Dec. 25, 2015 | Jun. 30, 2015 |
Preferred Shares, Authorized (in shares) | 200,000 | 200,000 |
Preferred Shares, Issued (in shares) | 0 | 0 |
Preferred Shares, No Par Value (in dollars per share) | $ 0 | $ 0 |
Common Shares, Authorized (in shares) | 30,000,000 | 30,000,000 |
Common Shares, Issued (in shares) | 13,099,468 | 13,099,468 |
Common Shares, No Par Value (in dollars per share) | $ 0 | $ 0 |
Treasury Stock, Shares (in shares) | 1,749,294 | 1,832,121 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 25, 2015 | Dec. 26, 2014 | Dec. 25, 2015 | Dec. 26, 2014 | |
Net sales | $ 44,829 | $ 72,691 | $ 82,201 | $ 137,515 |
Cost of goods sold | 33,223 | 50,588 | 62,406 | 93,023 |
Gross profit | 11,606 | 22,103 | 19,795 | 44,492 |
Marketing, engineering and administrative expenses | 14,592 | $ 16,507 | 29,833 | $ 32,417 |
Restructuring expenses | 515 | 515 | ||
Other operating expense (income) | 56 | (445) | ||
(Loss) earnings from operations | (3,557) | $ 5,596 | (10,108) | $ 12,075 |
Interest expense | 109 | 150 | 200 | 314 |
Other (income) expense, net | 231 | (142) | 73 | (482) |
Non-operating income (expense) | 340 | 8 | 273 | (168) |
(Loss) earnings before income taxes and noncontrolling interest | (3,897) | 5,588 | (10,381) | 12,243 |
Tax benefit | (1,608) | 1,788 | (3,817) | 4,381 |
Net (loss) earnings | (2,289) | 3,800 | (6,564) | 7,862 |
Less: Net earnings attributable to noncontrolling interest, net of tax | (12) | (53) | (60) | (72) |
Net (loss) earnings attributable to Twin Disc | $ (2,301) | $ 3,747 | $ (6,624) | $ 7,790 |
Dividends per share (in dollars per share) | $ 0.09 | $ 0.09 | $ 0.18 | $ 0.18 |
(Loss) earnings per share data: | ||||
Basic (loss) earnings per share attributable to Twin Disc common shareholders (in dollars per share) | (0.21) | 0.33 | (0.59) | 0.69 |
Diluted (loss) earnings per share attributable to Twin Disc common shareholders (in dollars per share) | $ (0.21) | $ 0.33 | $ (0.59) | $ 0.69 |
Weighted average shares outstanding data: | ||||
Basic shares outstanding (in shares) | 11,197 | 11,280 | 11,196 | 11,276 |
Dilutive stock awards (in shares) | 4 | 5 | ||
Diluted shares outstanding (in shares) | 11,197 | 11,284 | 11,196 | 11,281 |
Comprehensive income: | ||||
Net income | $ (2,289) | $ 3,800 | $ (6,564) | $ 7,862 |
Benefit plan adjustments, net of income taxes of $465, $305, $891 and $595, respectively | 805 | 515 | 1,544 | 1,003 |
Foreign currency translation adjustment | (2,316) | (4,542) | (4,128) | (8,870) |
Comprehensive loss | (3,800) | (227) | (9,148) | (5) |
Less: Comprehensive income attributable to noncontrolling interest | (19) | (13) | (48) | (41) |
Comprehensive loss attributable to Twin Disc | $ (3,819) | $ (240) | $ (9,196) | $ (46) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 25, 2015 | Dec. 26, 2014 | Dec. 25, 2015 | Dec. 26, 2014 | |
Benefit plan adjustments, Tax | $ 465 | $ 305 | $ 891 | $ 595 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Dec. 25, 2015 | Dec. 26, 2014 | |
Cash flows from operating activities: | ||
Total reclassification net of tax | $ (6,564,000) | $ 7,862,000 |
Adjustments to reconcile net (loss) earnings to net cash (used) provided by operating activities: | ||
Depreciation and amortization | 4,423,000 | $ 5,171,000 |
Restructuring expenses | 442,000 | |
Provision for deferred income taxes | (3,866,000) | $ 413,000 |
Other non-cash changes, net | 720,000 | 644,000 |
Net change in operating assets and liabilities | 396,000 | (4,646,000) |
Net cash (used) provided by operating activities | (4,449,000) | $ 9,444,000 |
Cash flows from investing activities: | ||
Proceeds from sale of business (see Note L) | 3,500,000 | |
Proceeds from life insurance policy | 1,907,000 | |
Acquisitions of fixed assets | (2,876,000) | $ (4,520,000) |
Proceeds from sale of fixed assets | 80,000 | 101,000 |
Other, net | (271,000) | 1,553,000 |
Net cash provided (used) by investing activities | 2,340,000 | (2,866,000) |
Cash flows from financing activities: | ||
Payments of notes payable | 0 | (28,000) |
Borrowings under revolving loan agreement | 42,012,000 | 40,225,000 |
Repayments under revolving loan agreement | (38,455,000) | (41,850,000) |
Proceeds from exercise of stock options | 12,000 | 15,000 |
Dividends paid to shareholders | (2,041,000) | (2,030,000) |
Dividends paid to noncontrolling interest | (192,000) | (219,000) |
Excess tax benefits (shortfall) from stock compensation | (267,000) | (36,000) |
Payments of withholding taxes on stock compensation | (190,000) | (313,000) |
Net cash provided (used) by financing activities | 879,000 | (4,236,000) |
Effect of exchange rate changes on cash | (1,075,000) | (1,926,000) |
Net change in cash | (2,305,000) | 416,000 |
Cash: | ||
Beginning of period | 22,936,000 | 24,757,000 |
End of period | $ 20,631,000 | $ 25,173,000 |
Note A - Basis of Presentation
Note A - Basis of Presentation | 6 Months Ended |
Dec. 25, 2015 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | A. Basis of Presentation The unaudited condensed consolidated financial statements have been prepared by Twin Disc, Incorporated (the “Company”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, in the opinion of the Company, include all adjustments, consisting only of normal recurring items, necessary for a fair presentation of results for each period. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such SEC rules and regulations. The Company believes that the disclosures made are adequate to make the information presented not misleading. It is suggested that these financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report filed on Form 10-K for June 30, 2015. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States. New Accounting Releases In November 2015, the Financial Accounting Standards Board (“FASB”) issued guidance intended to simplify current presentation guidance by requiring that deferred income tax assets and liabilities, by jurisdiction, be presented in the balance sheet as noncurrent. The amendments in this guidance are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016 (the Company’s fiscal 2018), with early adoption permitted. The Company is currently evaluating the potential impact of this guidance on the Company’s financial statements and disclosures. In July 2015, the FASB issued guidance intended to simplify the measurement of inventory and to closely align with International Financial Reporting Standards. Current guidance requires inventories to be measured at the lower of cost or market. Under this new guidance, inventories other than those measured under LIFO are to be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This guidance is to be applied prospectively, and is effective for fiscal years beginning after December 15, 2016 (the Company’s fiscal 2018). The adoption of this guidance is not expected to have a material impact on the Company’s financial statements and disclosures. In July 2015, the FASB issued guidance to reduce complexity in employee benefit plan accounting, which is consistent with its Simplification Initiative of improving areas of generally accepted accounting principles (GAAP) for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to users of financial statements. This guidance update consists of several parts that affect the reporting of defined benefit pension plans, defined contribution pension plans, and their fair value measurements, among others. This guidance is effective for 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 April 2015, the FASB issued guidance intended to amend current presentation guidance by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. 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 statements and disclosures. In August 2014, the FASB issued updated guidance intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern. The amendments in this guidance are effective for fiscal years ending after December 15, 2016 (the Company’s fiscal 2017), and interim periods within fiscal years beginning after December 15, 2016. The adoption of this guidance is not expected to have a material impact on the Company’s financial disclosures. In June 2014, the 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 statements and disclosures. In May 2014, the FASB issued updated guidance on revenue from contracts with customers. This revenue recognition guidance supersedes existing U.S. 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, 2017 (the Company’s fiscal 2019). The Company is currently evaluating the potential impact of this guidance on the Company’s financial statements and disclosures. |
Note B - Inventory
Note B - Inventory | 6 Months Ended |
Dec. 25, 2015 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | B. Inventor ies The major classes of inventories were as follows: Dec. 25, 2015 June 30, 2015 Inventories: Finished parts $ 49,504 $ 56,982 Work in process 8,039 8,292 Raw materials 15,673 14,967 $ 73,216 $ 80,241 |
Note C - Warranty
Note C - Warranty | 6 Months Ended |
Dec. 25, 2015 | |
Notes to Financial Statements | |
Product Warranty Disclosure [Text Block] | C. Warranty 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 two quarters ended December 25, 2015 and December 26, 2014: For the Quarter Ended For the Two Quarters Ended Dec. 25, 2015 Dec. 26, 2014 Dec. 25, 2015 Dec. 26, 2014 Reserve balance, beginning of period $ 4,220 $ 5,835 $ 5,245 $ 5,968 Current period expense 402 683 99 1,230 Payments or credits to customers (540 ) (487 ) (1,261 ) (1,029 ) Translation (33 ) (79 ) (34 ) (217 ) Reserve balance, end of period $ 4,049 $ 5,952 $ 4,049 $ 5,952 The current portion of the warranty accrual ($2,888 and $3,934 for fiscal 2016 and 2015, respectively) is reflected in accrued liabilities, while the long-term portion ($1,161 and $2,018 for fiscal 2016 and 2015, respectively) is included in other long-term liabilities on the consolidated balance sheets. |
Note D - Contingencies
Note D - Contingencies | 6 Months Ended |
Dec. 25, 2015 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | D. Contingencies The Company is involved in litigation of which the ultimate outcome and liability to the Company, if any, is not presently determinable. Management believes that final disposition of such litigation will not have a material impact on the Company’s results of operations, financial position or cash flows. |
Note E - Business Segments
Note E - Business Segments | 6 Months Ended |
Dec. 25, 2015 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | E . Business Segments 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. 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: For the Quarter Ended For the Two Quarters Ended Dec. 25, 2015 Dec. 26, 2014 Dec. 25, 2015 Dec. 26, 2014 Net sales Manufacturing segment sales $ 39,458 $ 63,350 $ 69,038 $ 123,624 Distribution segment sales 16,605 28,975 36,806 52,986 Inter/Intra segment elimination - manufacturing (9,403 ) (17,067 ) (17,880 ) (34,461 ) Inter/Intra segment elimination – distribution (1,831 ) (2,567 ) (5,763 ) (4,634 ) $ 44,829 $ 72,691 $ 82,201 $ 137,515 Net (loss) earnings attributable to Twin Disc Manufacturing segment net (loss) earnings $ (1,188 ) $ 4,034 $ (3,956 ) $ 9,204 Distribution segment net (loss) earnings (35 ) 1,777 440 2,956 Corporate and eliminations (1,078 ) (2,064 ) (3,108 ) (4,370 ) $ (2,301 ) $ 3,747 $ (6,624 ) $ 7,790 Dec. 25, 2015 June 30, 2015 Assets Manufacturing segment assets $ 234,184 $ 254,749 Distribution segment assets 51,480 53,759 Corporate assets and elimination of intercompany assets (59,979 ) (58,646 ) $ 225,685 $ 249,862 |
Note F - Stock-based Compensati
Note F - Stock-based Compensation | 6 Months Ended |
Dec. 25, 2015 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | F. Stock-Based Compensation Performance Stock Awards (“PSA”) During the first half of fiscal 2016 and 2015, the Company granted a target number of 60.5 and 15.6 PSAs, respectively, to various employees of the Company, including executive officers. The fiscal 2016 PSAs will vest if the Company achieves (a) performance-based target objectives relating to average annual sales and consolidated economic profit, and (b) relative Total Shareholder Return (“TSR”) (as defined in the PSA Grant Agreement), in the cumulative three fiscal year period ending June 30, 2018. These PSAs are subject to adjustment if the Company’s net sales, economic profit and relative TSR 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 90.7. Based upon actual results to date and the low probability of achieving the threshold performance levels, the Company is currently not accruing as compensation expense for the portion of the PSAs relating to the performance-based measure. Compensation expense relating to the relative TSR portion is recognized based on the grant date fair value over the vesting period. The fiscal 2015 PSAs will vest if the Company achieves a specified target objective relating to consolidated economic profit (as defined in the PSA Grant Agreement) in the cumulative three fiscal year period ending June 30, 2017. These PSAs 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 14.1. Based upon actual results to date and the low probability of achieving the threshold performance levels, the Company is currently not accruing compensation expense for these PSAs. There were 86.4 and 54.9 unvested PSAs outstanding at December 25, 2015 and December 26, 2014, respectively. The fair value of the PSAs (on the date of grant) is expensed over the performance period for the shares that are expected to ultimately vest. There was no compensation expense for the quarters ended December 25, 2015 and December 26, 2014, and, there was no compensation expense for the two quarters ended December 25, 2015 and December 26, 2014, related to PSAs. The weighted average grant date fair value of the unvested awards at December 25, 2015 was $19.31. At December 25, 2015, the Company had $1,669 of unrecognized compensation expense related to the unvested shares that would vest if the specified target objective was achieved for the fiscal 2016, 2015 and 2014 awards. The total fair value of PSAs vested as of December 25, 2015 and December 26, 2014 were $0. Performance Stock Unit Awards (“PSU”) During the first half of fiscal 2015, the Company granted a target number of 15.6 PSUs to various employees of the Company, including executive officers. There were no grants of PSUs during the first half of fiscal 2016. The fiscal 2015 PSUs will vest if the Company achieves a specified target objective relating to consolidated economic profit (as defined in the PSU Grant Agreement) in the cumulative three fiscal year period ending June 30, 2017. These PSUs 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 PSUs that can be awarded if the target objective is exceeded is 13.6. Based upon actual results to date and the low probability of achieving the threshold performance levels, the Company is currently not accruing compensation expense for the fiscal 2015 PSUs. There were 29.9 and 52.0 unvested PSUs outstanding at December 25, 2015 and December 26, 2014, respectively. The weighted average grant date fair value of the unvested awards at December 25, 2015 was $27.24. PSUs are remeasured at fair-value based upon the Company’s stock price at the end of each reporting period. The fair-value of the PSUs is expensed over the performance period for the shares that are expected to ultimately vest. There was no compensation expense for the quarters ended December 25, 2015 and December 26, 2014, and, there was no compensation expense for the two quarters ended December 25, 2015 and December 26, 2014, related to PSUs. At December 25, 2015, the Company had $335 of unrecognized compensation expense related to the unvested shares that would vest if the specified target objective was achieved for the fiscal 2015 and 2014 awards. The total fair value of PSU awards vested as of December 25, 2015 and December 26, 2014 were $0. The PSU awards are cash based, and would therefore be recorded as a liability on the Company’s consolidated balance sheets. As of December 25, 2015 and June 30, 2015, there were no awards included in liabilities in our consolidated balance sheets due to actual results to date and the low probability of achieving any of the threshold performance levels. Restricted Stock Awards (“RS”) The Company has unvested RS awards outstanding that will vest if certain service conditions are fulfilled. The fair value of the RS grants is recorded as compensation expense over the vesting period, which is generally 1 to 3 years. During the first half of fiscal 2016 and 2015, the Company granted 95.7 and 51.7 service based restricted shares, respectively, to employees and non-employee directors in each year. There were 143.0 and 115.1 unvested shares outstanding at December 25, 2015 and December 26, 2014, respectively. Compensation expense of $288 and $309 was recognized for the quarters ended December 25, 2015 and December 26, 2014, respectively. Compensation expense of $643 and $417 was recognized for the two quarters ended December 25, 2015 and December 26, 2014, respectively. The total fair value of restricted stock grants vested as of December 25, 2015 and December 26, 2014 was $681 and $941, respectively. As of December 25, 2015, the Company had $1,707 of unrecognized compensation expense related to restricted stock which will be recognized over the next three years. |
Note G - Pension and Other Post
Note G - Pension and Other Postretirement Benefit Plans | 6 Months Ended |
Dec. 25, 2015 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | G. Pension and Other Postretirement Benefit Plans The Company has non-contributory, qualified defined benefit plans covering substantially all domestic employees hired prior to October 1, 2003 and certain foreign employees. Additionally, the Company provides health care and life insurance benefits for certain domestic retirees. Components of net periodic benefit cost for the defined benefit pension plans and the other postretirement benefit plan are as follows: For the Quarter Ended For the Two Quarters Ended Dec. 25, 2015 Dec. 26, 2014 Dec. 25, 2015 Dec. 26, 2014 Pension Benefits: Service cost $ 128 $ 120 $ 258 $ 239 Interest cost 1,225 1,224 2,450 2,446 Expected return on plan assets (1,691 ) (1,683 ) (3,383 ) (3,364 ) Amortization of transition obligation 8 10 17 19 Amortization of actuarial net loss 898 609 1,806 1,218 Net periodic benefit cost $ 568 $ 280 $ 1,148 $ 558 Postretirement Benefits: Service cost $ 7 $ 7 $ 14 $ 15 Interest cost 151 145 302 290 Amortization of actuarial net loss 182 159 364 318 Net periodic benefit cost $ 340 $ 311 $ 680 $ 623 The Company expects to contribute approximately $2,240 to its pension plans in fiscal 2016. As of December 25, 2015, $1,179 in contributions have been made. The Company has reclassified $805 (net of $465 in taxes) of benefit plan adjustments from accumulated other comprehensive loss during the quarter ended December 25, 2015. The Company has reclassified $515 (net of $305 in taxes) of benefit plan adjustments from accumulated other comprehensive loss during the quarter ended December 26, 2014. The Company has reclassified $1,544 (net of $891 in taxes) of benefit plan adjustments from accumulated other comprehensive loss during the two quarters ended December 25, 2015. The Company has reclassified $1,003 (net of $595 in taxes) of benefit plan adjustments from accumulated other comprehensive loss during the two quarters ended December 26, 2014. These reclassifications are included in the computation of net periodic benefit cost. |
Note H - Income Taxes
Note H - Income Taxes | 6 Months Ended |
Dec. 25, 2015 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | H. Income Taxes For the two quarters ended December 25, 2015 and December 26, 2014, the Company’s effective income tax rate was 36.8% and 35.8%, respectively. Expected foreign earnings are lower compared to prior year by $7,000. This resulted in lower foreign income inclusions and foreign tax credits, reducing the effective tax rate by 1.7%. A lower domestic earnings base and increased overall non-deductible expenses increased the effective tax rate by 1.5%. The fiscal 2016 rate also reflects benefits from the cumulative effect of the reinstatement of the federal research and development tax credit. 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. Due to recent operating losses in certain foreign jurisdictions, the company has evaluated the realizability of the net deferred tax assets related to these jurisdictions. This evaluation concluded that, based primarily upon recent losses in this jurisdiction and failure to achieve targeted levels of improvement, a full valuation allowance continues to be necessary. The Company has not provided for 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. Such earnings could become taxable upon the sale or liquidation of these foreign subsidiaries or upon dividend repatriation. Accounting policies for interim reporting require the Company to adjust its effective tax rate each quarter to be consistent with the estimated annual effective tax rate. Under this effective tax rate methodology, the Company applies an estimated annual income tax rate to its year-to-date ordinary earnings to derive its income tax provision each quarter. The Company has approximately $948 of unrecognized tax benefits, including related interest and penalties, as of December 25, 2015, which, if recognized, would favorably impact the effective tax rate. There was no significant change in the total unrecognized tax benefits due to the settlement of audits, the expiration of statutes of limitations or for other items during the quarter ended December 25, 2015. It appears possible that the amount of unrecognized tax benefits could change in the next twelve months due to on-going audit activity. Annually, the Company files income tax returns in various taxing jurisdictions inside and outside the United States. In general, the tax years that remain subject to examination are 2011 through 2015 for the major operations in Italy, Canada, Belgium, and Japan. The tax years open to examination in the U.S. are for years subsequent to fiscal 2011. The state of Wisconsin income tax audit remains ongoing for the fiscal years 2010 through 2015. During the quarter the Company settled an income tax audit with the state of Minnesota covering the period fiscal 2011 through fiscal 2013 with immaterial impact. The Belgian audit remains ongoing, however, and it is anticipated that a final settlement will be reached in the third quarter of fiscal 2016. It is reasonably possible that other audit cycles will be completed during fiscal 2016. |
Note I - Goodwill and Other Int
Note I - Goodwill and Other Intangibles | 6 Months Ended |
Dec. 25, 2015 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | I. Goodwill and Other Intangibles The Company tests goodwill for impairment annually and whenever events or circumstances make it more likely than not that an impairment may have occurred. The Company monitors for potential interim triggering events on an ongoing basis. Such potential triggering events include market capitalization of the Company below its book value, unfavorable operating results and industry macroeconomic trends. The Company’s market capitalization can be affected by, among other things, changes in industry or market conditions, changes in results of operations and changes in forecasts or market expectations related to future results. If the Company’s market capitalization remains below the Company’s carrying value for a sustained period of time, or, if such a decline becomes indicative that the fair value of the Company’s reporting units has declined to below their carrying values, an interim goodwill impairment test may need to be performed and may result in a non-cash goodwill impairment charge. A noncash goodwill impairment charge would have the effect of decreasing the Company’s earnings or increasing the Company’s losses in the period in which the impairment charge is taken. The Company concluded the decline in the Company’s market capitalization, as well as the downward trends noted within the oil and gas market, during the second quarter of fiscal 2016 was not indicative that the fair value of the Company’s reporting units had more likely than not declined below their carrying values at December 25, 2015. The Company will continue to monitor its market capitalization and other potential triggering events during the third quarter of fiscal 2016. The Company performs its required annual goodwill impairment test during the fourth quarter. The changes in the carrying amount of goodwill, all of which is allocated to the manufacturing segment, for the two quarters ended December 25, 2015 were as follows: Gross Carrying Amount Accumulated Impairment Net Book Value Balance at June 30, 2015 $ 16,459 $ (3,670 ) $ 12,789 Sale of business (25 ) - (25 ) Translation adjustment (204 ) - (204 ) Balance at December 25, 2015 $ 16,230 $ (3,670 ) $ 12,560 The gross carrying amount and accumulated amortization of the Company’s intangible assets that have defined useful lives and are subject to amortization as of December 25, 2015 and June 30, 2015 were as follows: December 25, 2015 Gross Carrying Amount Accumulated Amortization Accumulated Impairment Net Book Value Licensing agreements $ 3,015 $ (2,535 ) $ - $ 480 Non-compete agreements 2,128 (2,045 ) (83 ) - Trade name 1,601 (235 ) - 1,366 Other 6,476 (5,280 ) (1,194 ) 2 $ 13,220 $ (10,095 ) $ (1,277 ) $ 1,848 June 30, 2015 Gross Carrying Amount Accumulated Amortization Accumulated Impairment Net Book Value Licensing agreements $ 3,015 $ (2,505 ) $ - $ 510 Non-compete agreements 2,128 (2,045 ) (83 ) - Trade name 1,653 (194 ) - 1,459 Other 6,476 (5,278 ) (1,194 ) 4 $ 13,272 $ (10,022 ) $ (1,277 ) $ 1,973 The weighted average remaining useful life of the intangible assets included in the table above is approximately 15 years. Intangible amortization expense was $37 and $59 for the quarters ended December 25, 2015, and December 26, 2014, respectively. Intangible amortization expense was $74 and $121 for the two quarters ended December 25, 2015, and December 26, 2014, respectively. Estimated intangible amortization expense for the remainder of fiscal 2016 and each of the next five fiscal years is as follows: Fiscal Year 2016 $ 73 2017 142 2018 142 2019 142 2020 142 2021 142 The gross carrying amount of the Company’s intangible assets that have indefinite lives and are not subject to amortization as of December 25, 2015 and June 30, 2015 are $194 and $213, respectively. These assets are comprised of acquired trade names. |
Note J - Long-term Debt
Note J - Long-term Debt | 6 Months Ended |
Dec. 25, 2015 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | J. Long-term Debt Long-term debt at December 25, 2015 and June 30, 2015 consisted of the following: December 25, 2015 June 30, 2015 Revolving loan $ 13,765 $ 10,208 10-year unsecured senior notes 3,571 3,571 Other 23 23 Subtotal 17,359 13,802 Less: current maturities and short-term borrowings (17,336 ) (3,571 ) Total long-term debt $ 23 $ 10,231 The revolving loan and unsecured senior notes listed above are subject to certain covenants, including restrictions on investments, acquisitions and indebtedness. Financial covenants, as defined, include a minimum consolidated net worth, a minimum EBITDA for the most recent four fiscal quarters, and a maximum total funded debt to EBITDA ratio. As of September 25, 2015, the Company was in compliance with these covenants. As of December 25, 2015, the Company was unable to comply with one of the covenants pertaining to the revolving loan and unsecured senior notes, the minimum EBITDA for the most recent four fiscal quarters. On February 1, 2016, the prior terms of the revolving loan agreement and the unsecured senior notes agreement (which also includes a shelf notes agreement) were amended. The amended and restated revolving credit agreement will mature on May 31, 2018, unless terminated earlier pursuant to its terms and conditions. The amended agreements waived any events of default that may have occurred under the terms of the prior agreements. The amended agreements are secured against substantially all of the Company’s personal property, including accounts receivable, inventory fixed assets, and intellectual property, and the personal property of Mill-Log Equipment Co., Inc. (“Mill-Log”), a wholly-owned domestic subsidiary of the Company. The Company has also pledged 65% of its equity interests in certain foreign subsidiaries. The amended revolving loan agreement provides for a borrowing base calculation to determine borrowing capacity. This capacity will be based upon eligible domestic inventory, eligible accounts receivable and machinery and equipment, subject to certain adjustments. As of the date of the amendment, the Company’s borrowing capacity under the amended revolving loan agreement is approximately $30,000, and the Company has approximately $12,600 of available borrowings. The amended agreements also reduced the four-quarter EBITDA minimum through the third quarter of fiscal 2016, adjusted the definition of EBITDA to add back non-cash stock compensation expense and restructuring expenses subject to a maximum, and the amended revolving loan agreement increased the interest rate by 0.5% per year for as long as the Company is below a minimum EBITDA threshold . The Company is currently pursuing a long-term financing solution. As the Company anticipates it will not meet the minimum EBITDA covenant at a subsequent measurement date in the next twelve months, the outstanding balance of $13,765 under the revolving loan agreement at December 25, 2015 is classified as a current liability . The fair value of long-term debt 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 (1.33% and 1.01% for December 25, 2015 and June 30, 2015, respectively), plus the current add-on related to the revolving loan agreement (1.00% for December 25, 2015 and June 30, 2015) resulting in a total rate of 2.33% and 2.01% for December 25, 2015 and June 30, 2015, respectively. The fair value of the Company’s 10-year unsecured senior notes due April 10, 2016 was approximately $3,651 and $3,726 at December 25, 2015 and June 30, 2015, respectively. The Company’s revolving loan agreement approximates fair value at December 25, 2015 and June 30, 2015. 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. |
Note K - Stockholders' Equity
Note K - Stockholders' Equity | 6 Months Ended |
Dec. 25, 2015 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | K. Shareholders’ Equity The Company from time to time makes open market purchases of its common stock under authorizations given to it by the Board of Directors, of which 315 shares as of December 25, 2015 remain authorized for purchase. The Company did not make any open market purchases of its shares during the quarter ended December 25, 2015. The following is a reconciliation of the Company’s equity balances for the first two fiscal quarters of 2016 and 2015: Twin Disc, Inc. Shareholders’ Equity Common Stock Retained Earnings Accumulated Other Income (Loss) Treasury Stock Non- Controlling Total Equity Balance, June 30, 2015 $ 12,259 $ 190,807 $ (35,481 ) $ (28,057 ) $ 639 $ 140,167 Net (loss) income (6,624 ) 60 (6,564 ) Translation adjustments (4,118 ) (10 ) (4,128 ) Benefit plan adjustments, net of tax 1,544 1,544 Cash dividends (2,041 ) (192 ) (2,233 ) Compensation expense and windfall tax benefits 376 376 Shares (acquired) issued, net (1,444 ) 1,267 (177 ) Balance, December 25, 2015 $ 11,191 $ 182,142 $ (38,055 ) $ (26,790 ) $ 497 $ 128,985 Twin Disc, Inc. Shareholders’ Equity Common Stock Retained Earnings Accumulated Other Income (Loss) Treasury Stock Non- Controlling Total Equity Balance, June 30, 2014 $ 11,973 $ 183,695 $ (15,943 ) $ (28,141 ) $ 727 $ 152,311 Net income 7,790 72 7,862 Translation adjustments (8,838 ) (32 ) (8,870 ) Benefit plan adjustments, net of tax 1,003 1,003 Cash dividends (2,030 ) (219 ) (2,249 ) Compensation expense and windfall tax benefits 381 381 Shares (acquired) issued, net (657 ) 359 (298 ) Balance, December 26, 2014 $ 11,697 $ 189,455 $ (23,778 ) $ (27,782 ) $ 548 $ 150,140 Reconciliations for the changes in accumulated other comprehensive income (loss), net of tax, by component for the quarters ended September 25, and December 25, 2015, and September 26, and December 26, 2014 are as follows: Translation Adjustment Benefit Plan Adjustment Balance at June 30, 2015 $ 6,740 $ (42,221 ) Other comprehensive (loss) income before reclassifications (1,787 ) 51 Amounts reclassified from accumulated other comprehensive income - 688 Net current period other comprehensive (loss) income (1,787 ) 739 Balance at September 25, 2015 $ 4,953 $ (41,482 ) Other comprehensive (loss) income before reclassifications (2,331 ) 124 Amounts reclassified from accumulated other comprehensive income - 681 Net current period other comprehensive (loss) income (2,331 ) 805 Balance at December 25, 2015 $ 2,622 $ (40,677 ) Translation Adjustment Benefit Plan Adjustment Balance at June 30, 2014 $ 20,779 $ (36,722 ) Other comprehensive loss before reclassifications (4,337 ) - Amounts reclassified from accumulated other comprehensive income - 488 Net current period other comprehensive (loss) income (4,337 ) 488 Balance at September 26, 2014 $ 16,442 $ (36,234 ) Other comprehensive (loss) income before reclassifications (4,501 ) 27 Amounts reclassified from accumulated other comprehensive income - 488 Net current period other comprehensive (loss) income (4,501 ) 515 Balance at December 26, 2014 $ 11,941 $ (35,719 ) Reconciliations for the reclassifications out of accumulated other comprehensive income (loss), net of tax for the quarter ended December 25, 2015 are as follows: Amount Reclassified Quarter Ended Amount Reclassified Two Quarters Ended Amortization of benefit plan items Actuarial losses $ 1,080 (a) $ 2,170 (a) Transition asset and prior service benefit 8 (a) 17 (a) Total before tax benefit 1,088 2,187 Tax benefit 407 818 Total reclassification net of tax $ 681 $ 1,369 (a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note G "Pension and Other Postretirement Benefit Plans" for further details). Reconciliations for the reclassifications out of accumulated other comprehensive income (loss), net of tax for the quarter ended December 26, 2014 are as follows: Amount Reclassified Quarter Ended Amount Reclassified Two Quarters Ended Amortization of benefit plan items Actuarial losses $ 768 (a) $ 1,536 (a) Transition asset and prior service benefit 10 (a) 19 (a) Total before tax benefit 778 1,555 Tax benefit 290 579 Total reclassification net of tax $ 488 $ 976 (a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note G "Pension and Other Postretirement Benefit Plans" for further details). |
Note L - Restructuring of Opera
Note L - Restructuring of Operations | 6 Months Ended |
Dec. 25, 2015 | |
Notes to Financial Statements | |
Restructuring, Impairment, and Other Activities Disclosure [Text Block] | L. Restructuring of Operations On November 6, 2015, the Company announced additional restructuring and cost reduction activities to further reduce expenses, as a result of challenging global market conditions within the Company’s oil and gas, global pleasure craft and Asian commercial marine markets. In its North American operations, fifteen full-time positions were eliminated, resulting in a charge of $292. In Italy, six full-time positions were eliminated, resulting in a charge of $143. These actions are in addition to and consistent with the restructuring plan announced in the fourth quarter of fiscal 2015, when the Company pro-actively initiated steps to reduce costs and increase efficiencies in anticipation of the unfavorable impact that a continued depressed oil and gas market would have on the Company’s products. As a result of these actions, and including additional expenses to the fourth quarter of fiscal 2015 restructuring activity of $80, the Company recorded a pre-tax restructuring charge of $515 in the current quarter. The restructuring plan announced in the fourth quarter of fiscal 2015 resulted in a pre-tax restructuring charge of $3,282 in that period. As of December 25, 2015, the Company carried a remaining liability of $29. On September 25, 2015, the Company, as part of its initiative to focus resources on core manufacturing and product development activities aimed at improving profitability, entered into an asset purchase agreement with one of its major distributor customers. Under this agreement, the Company sold distribution rights to its southeastern U.S. territories and certain assets, consisting primarily of inventories, for $4,100. The proceeds from the sale of distribution rights of $600 are deferred and will be amortized into revenue through June 2016, the initial term of the distribution agreement. The gain on sale previously recorded as other operating income in the statement of operations in first quarter of fiscal 2016 has been reduced by $56 in the current quarter, as part of a purchase price adjustment under the terms of the agreement, resulting in a year-to-date other operating income of $445. During fiscal years 2014 and 2013, the Company recorded pre-tax restructuring charges for a targeted workforce reduction at its Belgian operation, in the total amount of $1,642. As of December 25, 2015, the Company carried a remaining liability of $456. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 25, 2015 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Releases In November 2015, the Financial Accounting Standards Board (“FASB”) issued guidance intended to simplify current presentation guidance by requiring that deferred income tax assets and liabilities, by jurisdiction, be presented in the balance sheet as noncurrent. The amendments in this guidance are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016 (the Company’s fiscal 2018), with early adoption permitted. The Company is currently evaluating the potential impact of this guidance on the Company’s financial statements and disclosures. In July 2015, the FASB issued guidance intended to simplify the measurement of inventory and to closely align with International Financial Reporting Standards. Current guidance requires inventories to be measured at the lower of cost or market. Under this new guidance, inventories other than those measured under LIFO are to be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This guidance is to be applied prospectively, and is effective for fiscal years beginning after December 15, 2016 (the Company’s fiscal 2018). The adoption of this guidance is not expected to have a material impact on the Company’s financial statements and disclosures. In July 2015, the FASB issued guidance to reduce complexity in employee benefit plan accounting, which is consistent with its Simplification Initiative of improving areas of generally accepted accounting principles (GAAP) for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to users of financial statements. This guidance update consists of several parts that affect the reporting of defined benefit pension plans, defined contribution pension plans, and their fair value measurements, among others. This guidance is effective for 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 April 2015, the FASB issued guidance intended to amend current presentation guidance by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. 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 statements and disclosures. In August 2014, the FASB issued updated guidance intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern. The amendments in this guidance are effective for fiscal years ending after December 15, 2016 (the Company’s fiscal 2017), and interim periods within fiscal years beginning after December 15, 2016. The adoption of this guidance is not expected to have a material impact on the Company’s financial disclosures. In June 2014, the 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 statements and disclosures. In May 2014, the FASB issued updated guidance on revenue from contracts with customers. This revenue recognition guidance supersedes existing U.S. 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, 2017 (the Company’s fiscal 2019). The Company is currently evaluating the potential impact of this guidance on the Company’s financial statements and disclosures. |
Note B - Inventory (Tables)
Note B - Inventory (Tables) | 6 Months Ended |
Dec. 25, 2015 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | Dec. 25, 2015 June 30, 2015 Inventories: Finished parts $ 49,504 $ 56,982 Work in process 8,039 8,292 Raw materials 15,673 14,967 $ 73,216 $ 80,241 |
Note C - Warranty (Tables)
Note C - Warranty (Tables) | 6 Months Ended |
Dec. 25, 2015 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | For the Quarter Ended For the Two Quarters Ended Dec. 25, 2015 Dec. 26, 2014 Dec. 25, 2015 Dec. 26, 2014 Reserve balance, beginning of period $ 4,220 $ 5,835 $ 5,245 $ 5,968 Current period expense 402 683 99 1,230 Payments or credits to customers (540 ) (487 ) (1,261 ) (1,029 ) Translation (33 ) (79 ) (34 ) (217 ) Reserve balance, end of period $ 4,049 $ 5,952 $ 4,049 $ 5,952 |
Note E - Business Segments (Tab
Note E - Business Segments (Tables) | 6 Months Ended |
Dec. 25, 2015 | |
Notes Tables | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | For the Quarter Ended For the Two Quarters Ended Dec. 25, 2015 Dec. 26, 2014 Dec. 25, 2015 Dec. 26, 2014 Net sales Manufacturing segment sales $ 39,458 $ 63,350 $ 69,038 $ 123,624 Distribution segment sales 16,605 28,975 36,806 52,986 Inter/Intra segment elimination - manufacturing (9,403 ) (17,067 ) (17,880 ) (34,461 ) Inter/Intra segment elimination – distribution (1,831 ) (2,567 ) (5,763 ) (4,634 ) $ 44,829 $ 72,691 $ 82,201 $ 137,515 Net (loss) earnings attributable to Twin Disc Manufacturing segment net (loss) earnings $ (1,188 ) $ 4,034 $ (3,956 ) $ 9,204 Distribution segment net (loss) earnings (35 ) 1,777 440 2,956 Corporate and eliminations (1,078 ) (2,064 ) (3,108 ) (4,370 ) $ (2,301 ) $ 3,747 $ (6,624 ) $ 7,790 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | Dec. 25, 2015 June 30, 2015 Assets Manufacturing segment assets $ 234,184 $ 254,749 Distribution segment assets 51,480 53,759 Corporate assets and elimination of intercompany assets (59,979 ) (58,646 ) $ 225,685 $ 249,862 |
Note G - Pension and Other Po23
Note G - Pension and Other Postretirement Benefit Plans (Tables) | 6 Months Ended |
Dec. 25, 2015 | |
Notes Tables | |
Schedule of Net Benefit Costs [Table Text Block] | For the Quarter Ended For the Two Quarters Ended Dec. 25, 2015 Dec. 26, 2014 Dec. 25, 2015 Dec. 26, 2014 Pension Benefits: Service cost $ 128 $ 120 $ 258 $ 239 Interest cost 1,225 1,224 2,450 2,446 Expected return on plan assets (1,691 ) (1,683 ) (3,383 ) (3,364 ) Amortization of transition obligation 8 10 17 19 Amortization of actuarial net loss 898 609 1,806 1,218 Net periodic benefit cost $ 568 $ 280 $ 1,148 $ 558 Postretirement Benefits: Service cost $ 7 $ 7 $ 14 $ 15 Interest cost 151 145 302 290 Amortization of actuarial net loss 182 159 364 318 Net periodic benefit cost $ 340 $ 311 $ 680 $ 623 |
Note I - Goodwill and Other I24
Note I - Goodwill and Other Intangibles (Tables) | 6 Months Ended |
Dec. 25, 2015 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | Gross Carrying Amount Accumulated Impairment Net Book Value Balance at June 30, 2015 $ 16,459 $ (3,670 ) $ 12,789 Sale of business (25 ) - (25 ) Translation adjustment (204 ) - (204 ) Balance at December 25, 2015 $ 16,230 $ (3,670 ) $ 12,560 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | December 25, 2015 Gross Carrying Amount Accumulated Amortization Accumulated Impairment Net Book Value Licensing agreements $ 3,015 $ (2,535 ) $ - $ 480 Non-compete agreements 2,128 (2,045 ) (83 ) - Trade name 1,601 (235 ) - 1,366 Other 6,476 (5,280 ) (1,194 ) 2 $ 13,220 $ (10,095 ) $ (1,277 ) $ 1,848 June 30, 2015 Gross Carrying Amount Accumulated Amortization Accumulated Impairment Net Book Value Licensing agreements $ 3,015 $ (2,505 ) $ - $ 510 Non-compete agreements 2,128 (2,045 ) (83 ) - Trade name 1,653 (194 ) - 1,459 Other 6,476 (5,278 ) (1,194 ) 4 $ 13,272 $ (10,022 ) $ (1,277 ) $ 1,973 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Fiscal Year 2016 $ 73 2017 142 2018 142 2019 142 2020 142 2021 142 |
Note J - Long-term Debt (Tables
Note J - Long-term Debt (Tables) | 6 Months Ended |
Dec. 25, 2015 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | December 25, 2015 June 30, 2015 Revolving loan $ 13,765 $ 10,208 10-year unsecured senior notes 3,571 3,571 Other 23 23 Subtotal 17,359 13,802 Less: current maturities and short-term borrowings (17,336 ) (3,571 ) Total long-term debt $ 23 $ 10,231 |
Note K - Stockholders' Equity (
Note K - Stockholders' Equity (Tables) | 6 Months Ended |
Dec. 25, 2015 | |
Notes Tables | |
Schedule of Stockholders Equity [Table Text Block] | Twin Disc, Inc. Shareholders’ Equity Common Stock Retained Earnings Accumulated Other Income (Loss) Treasury Stock Non- Controlling Total Equity Balance, June 30, 2015 $ 12,259 $ 190,807 $ (35,481 ) $ (28,057 ) $ 639 $ 140,167 Net (loss) income (6,624 ) 60 (6,564 ) Translation adjustments (4,118 ) (10 ) (4,128 ) Benefit plan adjustments, net of tax 1,544 1,544 Cash dividends (2,041 ) (192 ) (2,233 ) Compensation expense and windfall tax benefits 376 376 Shares (acquired) issued, net (1,444 ) 1,267 (177 ) Balance, December 25, 2015 $ 11,191 $ 182,142 $ (38,055 ) $ (26,790 ) $ 497 $ 128,985 Twin Disc, Inc. Shareholders’ Equity Common Stock Retained Earnings Accumulated Other Income (Loss) Treasury Stock Non- Controlling Total Equity Balance, June 30, 2014 $ 11,973 $ 183,695 $ (15,943 ) $ (28,141 ) $ 727 $ 152,311 Net income 7,790 72 7,862 Translation adjustments (8,838 ) (32 ) (8,870 ) Benefit plan adjustments, net of tax 1,003 1,003 Cash dividends (2,030 ) (219 ) (2,249 ) Compensation expense and windfall tax benefits 381 381 Shares (acquired) issued, net (657 ) 359 (298 ) Balance, December 26, 2014 $ 11,697 $ 189,455 $ (23,778 ) $ (27,782 ) $ 548 $ 150,140 |
Reconciliation For The Changes In Accumulated Other Comprehensive Income Loss Net Of Tax By Component [Table Text Block] | Translation Adjustment Benefit Plan Adjustment Balance at June 30, 2015 $ 6,740 $ (42,221 ) Other comprehensive (loss) income before reclassifications (1,787 ) 51 Amounts reclassified from accumulated other comprehensive income - 688 Net current period other comprehensive (loss) income (1,787 ) 739 Balance at September 25, 2015 $ 4,953 $ (41,482 ) Other comprehensive (loss) income before reclassifications (2,331 ) 124 Amounts reclassified from accumulated other comprehensive income - 681 Net current period other comprehensive (loss) income (2,331 ) 805 Balance at December 25, 2015 $ 2,622 $ (40,677 ) Translation Adjustment Benefit Plan Adjustment Balance at June 30, 2014 $ 20,779 $ (36,722 ) Other comprehensive loss before reclassifications (4,337 ) - Amounts reclassified from accumulated other comprehensive income - 488 Net current period other comprehensive (loss) income (4,337 ) 488 Balance at September 26, 2014 $ 16,442 $ (36,234 ) Other comprehensive (loss) income before reclassifications (4,501 ) 27 Amounts reclassified from accumulated other comprehensive income - 488 Net current period other comprehensive (loss) income (4,501 ) 515 Balance at December 26, 2014 $ 11,941 $ (35,719 ) |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Amount Reclassified Quarter Ended Amount Reclassified Two Quarters Ended Amortization of benefit plan items Actuarial losses $ 1,080 (a) $ 2,170 (a) Transition asset and prior service benefit 8 (a) 17 (a) Total before tax benefit 1,088 2,187 Tax benefit 407 818 Total reclassification net of tax $ 681 $ 1,369 Amount Reclassified Quarter Ended Amount Reclassified Two Quarters Ended Amortization of benefit plan items Actuarial losses $ 768 (a) $ 1,536 (a) Transition asset and prior service benefit 10 (a) 19 (a) Total before tax benefit 778 1,555 Tax benefit 290 579 Total reclassification net of tax $ 488 $ 976 |
Note B - Inventory (Details)
Note B - Inventory (Details) - USD ($) $ in Thousands | Dec. 25, 2015 | Jun. 30, 2015 |
Inventories: | ||
Finished parts | $ 49,504 | $ 56,982 |
Work in process | 8,039 | 8,292 |
Raw materials | 15,673 | 14,967 |
Total inventories | $ 73,216 | $ 80,241 |
Note C - Warranty (Details Text
Note C - Warranty (Details Textual) - USD ($) $ in Thousands | Dec. 25, 2015 | Dec. 26, 2014 |
Product Warranty Accrual, Current | $ 2,888 | $ 3,934 |
Product Warranty Accrual, Noncurrent | $ 1,161 | $ 2,018 |
Note C - Warranty (Details)
Note C - Warranty (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 25, 2015 | Dec. 26, 2014 | Dec. 25, 2015 | Dec. 26, 2014 | |
Reserve balance, beginning of period | $ 4,220 | $ 5,835 | $ 5,245 | $ 5,968 |
Current period expense | 402 | 683 | 99 | 1,230 |
Payments or credits to customers | (540) | (487) | (1,261) | (1,029) |
Translation | (33) | (79) | (34) | (217) |
Reserve balance, end of period | $ 4,049 | $ 5,952 | $ 4,049 | $ 5,952 |
Note E - Business Segments (Det
Note E - Business Segments (Details Textual) | 6 Months Ended |
Dec. 25, 2015 | |
Number of Reportable Segments | 2 |
Note E - Revenues by Segment (D
Note E - Revenues by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 25, 2015 | Dec. 26, 2014 | Dec. 25, 2015 | Dec. 26, 2014 | |
Manufacturing Segment [Member] | Operating Segments [Member] | ||||
Sales | $ 39,458 | $ 63,350 | $ 69,038 | $ 123,624 |
Earnings | (1,188) | 4,034 | (3,956) | 9,204 |
Manufacturing Segment [Member] | Inter/Intra Segment Elimination [Member] | ||||
Sales | (9,403) | (17,067) | (17,880) | (34,461) |
Distribution Segment [Member] | Operating Segments [Member] | ||||
Sales | 16,605 | 28,975 | 36,806 | 52,986 |
Earnings | (35) | 1,777 | 440 | 2,956 |
Distribution Segment [Member] | Inter/Intra Segment Elimination [Member] | ||||
Sales | (1,831) | (2,567) | (5,763) | (4,634) |
Corporate, Non-Segment [Member] | ||||
Earnings | (1,078) | (2,064) | (3,108) | (4,370) |
Sales | 44,829 | 72,691 | 82,201 | 137,515 |
Earnings | $ (2,301) | $ 3,747 | $ (6,624) | $ 7,790 |
Note E - Assets by Segment (Det
Note E - Assets by Segment (Details) - USD ($) $ in Thousands | Dec. 25, 2015 | Jun. 30, 2015 |
Manufacturing Segment [Member] | Operating Segments [Member] | ||
Assets | ||
Segment Assets | $ 234,184 | $ 254,749 |
Distribution Segment [Member] | Operating Segments [Member] | ||
Assets | ||
Segment Assets | 51,480 | 53,759 |
Corporate, Non-Segment [Member] | ||
Assets | ||
Segment Assets | (59,979) | (58,646) |
Segment Assets | $ 225,685 | $ 249,862 |
Note F - Stock-based Compensa33
Note F - Stock-based Compensation (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 25, 2015 | Dec. 26, 2014 | Dec. 25, 2015 | Dec. 26, 2014 | Jun. 30, 2015 | |
Performance Stock Unit Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | 15,600 | |||
Allocated Share-based Compensation Expense | $ 0 | $ 0 | $ 0 | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | 0 | $ 0 | |||
Deferred Compensation Share-based Arrangements, Liability, Current | $ 0 | $ 0 | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 13,600 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 29,900 | 52,000 | 29,900 | 52,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 27.24 | $ 27.24 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 335,000 | $ 335,000 | |||
Performance Stock Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 60,500 | 15,600 | |||
Allocated Share-based Compensation Expense | $ 0 | $ 0 | $ 0 | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 0 | $ 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | 3 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 90,700 | 90,700 | 14,100 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 86,400 | 54,900 | 86,400 | 54,900 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 19.31 | $ 19.31 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 1,669,000 | $ 1,669,000 | |||
Restricted Stock [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||||
Restricted Stock [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 95,700 | 51,700 | |||
Allocated Share-based Compensation Expense | $ 288,000 | $ 309,000 | $ 643,000 | $ 417,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 143,000 | 115,100 | 143,000 | 115,100 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 1,707,000 | $ 1,707,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 681,000 | 941,000 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years |
Note G - Pension and Other Po34
Note G - Pension and Other Postretirement Benefit Plans (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 25, 2015 | Dec. 26, 2014 | Dec. 25, 2015 | Dec. 26, 2014 | |
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $ 2,240 | |||
Defined Benefit Plan, Contributions by Employer | 1,179 | |||
Other Comprehensive (Income) Loss, Amortization Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service Cost (Credit), Net of Tax | $ 805 | $ 515 | 1,544 | $ 1,003 |
Other Comprehensive (Income) Loss, Amortization Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service Cost (Credit), Tax | $ 465 | $ 305 | $ 891 | $ 595 |
Note G - Pension and Other Po35
Note G - Pension and Other Postretirement Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 25, 2015 | Dec. 26, 2014 | Dec. 26, 2015 | Dec. 26, 2014 | |
Pension Benefits [Member] | ||||
Pension Benefits: | ||||
Service cost | $ 128 | $ 120 | $ 258 | $ 239 |
Interest cost | 1,225 | 1,224 | 2,450 | 2,446 |
Expected return on plan assets | (1,691) | (1,683) | (3,383) | (3,364) |
Amortization of transition obligation | 8 | 10 | 17 | 19 |
Amortization of actuarial net loss | 898 | 609 | 1,806 | 1,218 |
Net periodic benefit cost | 568 | 280 | 1,148 | 558 |
Postretirement Benefits [Member] | ||||
Pension Benefits: | ||||
Service cost | 7 | 7 | 14 | 15 |
Interest cost | 151 | 145 | 302 | 290 |
Amortization of actuarial net loss | 182 | 159 | 364 | 318 |
Net periodic benefit cost | $ 340 | $ 311 | $ 680 | $ 623 |
Note H - Income Taxes (Details
Note H - Income Taxes (Details Textual) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 25, 2015 | Dec. 26, 2014 | |
Foreign Tax Authority [Member] | Earliest Tax Year [Member] | ||
Open Tax Year | 2,011 | |
Foreign Tax Authority [Member] | Latest Tax Year [Member] | ||
Open Tax Year | 2,015 | |
Domestic Tax Authority [Member] | Earliest Tax Year [Member] | ||
Open Tax Year | 2,011 | |
State and Local Jurisdiction [Member] | Earliest Tax Year [Member] | Wisconsin Department of Revenue [Member] | ||
Open Tax Year | 2,010 | |
State and Local Jurisdiction [Member] | Earliest Tax Year [Member] | Minnesota Department of Revenue [Member] | ||
Income Tax Audit, Settlement Years | 2,011 | |
State and Local Jurisdiction [Member] | Latest Tax Year [Member] | Wisconsin Department of Revenue [Member] | ||
Open Tax Year | 2,015 | |
State and Local Jurisdiction [Member] | Latest Tax Year [Member] | Minnesota Department of Revenue [Member] | ||
Income Tax Audit, Settlement Years | 2,013 | |
Effective Income Tax Rate Reconciliation, Percent | 36.80% | 35.80% |
Income Tax Reconciliation, Difference Between Expected Foreign Earnings and Prior Year's Foreign Earnings | $ 7,000 | |
IncomeTaxReconciliationDifferenceBetweenExpectedForeignEarningsAndPriorYearsForeignEarningsPercentage | 1.70% | |
Income Tax Reconciliation Reduction In Effective Tax Rate | 1.50% | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 948 |
Note I - Goodwill and Other I37
Note I - Goodwill and Other Intangibles (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 25, 2015 | Dec. 26, 2014 | Dec. 25, 2015 | Dec. 26, 2014 | Jun. 30, 2015 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | ||||
Amortization of Intangible Assets | $ 37 | $ 59 | $ 74 | $ 121 | |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 194 | $ 194 | $ 213 |
Note I - Goodwill Rollforward (
Note I - Goodwill Rollforward (Details) $ in Thousands | 6 Months Ended |
Dec. 25, 2015USD ($) | |
Beginning, Gross Carrying Amount | $ 16,459 |
Beginning, Net Book Value | 12,789 |
Sale of business | (25) |
Translation Adjustment | (204) |
Ending, Gross Carrying Amount | 16,230 |
Accumulated Impairment | (3,670) |
Ending, Net Book Value | $ 12,560 |
Note I - Intangible Assets (Det
Note I - Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 25, 2015 | Jun. 30, 2015 |
Licensing Agreements [Member] | ||
Gross Carrying Amount | $ 3,015 | $ 3,015 |
Accumulated Amortization | (2,535) | (2,505) |
Net Book Value | 480 | 510 |
Noncompete Agreements [Member] | ||
Gross Carrying Amount | 2,128 | 2,128 |
Accumulated Amortization | (2,045) | (2,045) |
Accumulated Impairment | (83) | (83) |
Trade Names [Member] | ||
Gross Carrying Amount | 1,601 | 1,653 |
Accumulated Amortization | (235) | (194) |
Net Book Value | 1,366 | 1,459 |
Other Intangible Assets [Member] | ||
Gross Carrying Amount | 6,476 | 6,476 |
Accumulated Amortization | (5,280) | (5,278) |
Net Book Value | 2 | 4 |
Accumulated Impairment | (1,194) | (1,194) |
Gross Carrying Amount | 13,220 | 13,272 |
Accumulated Amortization | (10,095) | (10,022) |
Net Book Value | 1,848 | 1,973 |
Accumulated Impairment | $ (1,277) | $ (1,277) |
Note I - Estimated Intangibles
Note I - Estimated Intangibles (Details) $ in Thousands | Dec. 25, 2015USD ($) |
2,016 | $ 73 |
2,017 | 142 |
2,018 | 142 |
2,019 | 142 |
2,020 | 142 |
2,021 | $ 142 |
Note J - Long-term Debt (Detail
Note J - Long-term Debt (Details Textual) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 25, 2015 | Jun. 30, 2015 | |
Ten Year Unsecured Senior Notes [Member] | ||
Debt Instrument, Maturity Date | Apr. 10, 2016 | |
Long-term Debt | $ 3,571 | $ 3,571 |
Debt Instrument, Term | 10 years | |
Long-term Debt, Fair Value | $ 3,651 | 3,726 |
Revolving Loan [Member] | ||
Line of Credit Facility, Current Borrowing Capacity | 30,000 | |
Line of Credit Facility, Remaining Borrowing Capacity | $ 12,600 | |
Debt Instrument, Increase in Interest Rate | 0.50% | |
Long-term Debt | $ 13,765 | $ 10,208 |
Debt Instrument, Basis Spread on Variable Rate | 1.00% | 1.00% |
Number Of Recent Quarters Considered For Minimum Effective Interest Rate | 4 | |
Long-term Debt | $ 17,359 | $ 13,802 |
Fair Value Assumptions, Risk Free Interest Rate | 1.33% | 1.01% |
Debt Instrument, Interest Rate, Effective Percentage | 2.33% | 2.01% |
Note J - Long-term Debt (Deta42
Note J - Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 25, 2015 | Jun. 30, 2015 |
Revolving Loan [Member] | ||
Long-term Debt | $ 13,765 | $ 10,208 |
Ten Year Unsecured Senior Notes [Member] | ||
Long-term Debt | 3,571 | 3,571 |
Other [Member] | ||
Long-term Debt | 23 | 23 |
Long-term Debt | 17,359 | 13,802 |
Less: current maturities and short-term borrowings | (17,336) | (3,571) |
Total long-term debt | $ 23 | $ 10,231 |
Note K - Stockholders' Equity43
Note K - Stockholders' Equity (Details Textual) shares in Thousands | Dec. 25, 2015shares |
Common Stock [Member] | |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 315 |
Note K - Shareholders' Equity R
Note K - Shareholders' Equity Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 25, 2015 | Dec. 26, 2014 | Dec. 25, 2015 | Dec. 26, 2014 | |
Common Stock [Member] | ||||
Beginning Balance | $ 12,259 | $ 11,973 | ||
Net income | ||||
Translation adjustments | ||||
Benefit plan adjustments, net of tax | ||||
Cash dividends | ||||
Compensation expense and windfall tax benefits | $ 376 | $ 381 | ||
Shares (acquired) issued, net | (1,444) | (657) | ||
Ending Balance | $ 11,191 | $ 11,697 | 11,191 | 11,697 |
Retained Earnings [Member] | ||||
Beginning Balance | 190,807 | 183,695 | ||
Net income | $ (6,624) | $ 7,790 | ||
Translation adjustments | ||||
Benefit plan adjustments, net of tax | ||||
Cash dividends | $ (2,041) | $ (2,030) | ||
Compensation expense and windfall tax benefits | ||||
Shares (acquired) issued, net | ||||
Ending Balance | 182,142 | 189,455 | $ 182,142 | $ 189,455 |
AOCI Attributable to Parent [Member] | ||||
Beginning Balance | $ (35,481) | $ (15,943) | ||
Net income | ||||
Translation adjustments | $ (4,118) | $ (8,838) | ||
Benefit plan adjustments, net of tax | $ 1,544 | $ 1,003 | ||
Cash dividends | ||||
Compensation expense and windfall tax benefits | ||||
Shares (acquired) issued, net | ||||
Ending Balance | (38,055) | (23,778) | $ (38,055) | $ (23,778) |
Treasury Stock [Member] | ||||
Beginning Balance | $ (28,057) | $ (28,141) | ||
Net income | ||||
Translation adjustments | ||||
Benefit plan adjustments, net of tax | ||||
Cash dividends | ||||
Compensation expense and windfall tax benefits | ||||
Shares (acquired) issued, net | $ 1,267 | $ 359 | ||
Ending Balance | (26,790) | (27,782) | (26,790) | (27,782) |
Noncontrolling Interest [Member] | ||||
Beginning Balance | 639 | 727 | ||
Net income | 60 | 72 | ||
Translation adjustments | $ (10) | $ (32) | ||
Benefit plan adjustments, net of tax | ||||
Cash dividends | $ (192) | $ (219) | ||
Compensation expense and windfall tax benefits | ||||
Shares (acquired) issued, net | ||||
Ending Balance | 497 | 548 | $ 497 | $ 548 |
Beginning Balance | 140,167 | 152,311 | ||
Net income | (2,289) | 3,800 | (6,564) | 7,862 |
Translation adjustments | (2,316) | (4,542) | (4,128) | (8,870) |
Benefit plan adjustments, net of tax | 805 | 515 | 1,544 | 1,003 |
Cash dividends | (2,233) | (2,249) | ||
Compensation expense and windfall tax benefits | 376 | 381 | ||
Shares (acquired) issued, net | (177) | (298) | ||
Ending Balance | $ 128,985 | $ 150,140 | $ 128,985 | $ 150,140 |
Note K - Accumulated Other Comp
Note K - Accumulated Other Comprehensive income (Loss), Net of Tax (Details) - USD ($) | 3 Months Ended | |||
Dec. 25, 2015 | Sep. 25, 2015 | Dec. 26, 2014 | Sep. 26, 2014 | |
Translation Adjustment [Member] | ||||
Beginning Balance | $ 4,953,000 | $ 6,740,000 | $ 16,442,000 | $ 20,779,000 |
Other comprehensive (loss) income before reclassifications | $ (2,331,000) | $ (1,787,000) | $ (4,501,000) | $ (4,337,000) |
Amounts reclassified from accumulated other comprehensive income | ||||
Net current period other comprehensive income | $ (2,331,000) | $ (1,787,000) | $ (4,501,000) | $ (4,337,000) |
Ending Balance | $ 2,622,000 | $ 4,953,000 | $ 11,941,000 | $ 16,442,000 |
Amounts reclassified from accumulated other comprehensive income | ||||
Benefit Plan Adjustment [Member] | ||||
Beginning Balance | $ (41,482,000) | $ (42,221,000) | $ (36,234,000) | $ (36,722,000) |
Other comprehensive (loss) income before reclassifications | 124,000 | 51,000 | 27,000 | |
Amounts reclassified from accumulated other comprehensive income | 681,000 | 688,000 | 488,000 | $ 488,000 |
Net current period other comprehensive income | 805,000 | 739,000 | 515,000 | 488,000 |
Ending Balance | (40,677,000) | (41,482,000) | (35,719,000) | (36,234,000) |
Amounts reclassified from accumulated other comprehensive income | 681,000 | 688,000 | $ 488,000 | $ 488,000 |
Beginning Balance | $ (35,481,000) | |||
Ending Balance | $ (38,055,000) |
Note K - Reclassifications of A
Note K - Reclassifications of Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 25, 2015 | Dec. 26, 2014 | Dec. 25, 2015 | Dec. 26, 2014 | ||
Benefit Plan Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Actuarial losses | [1] | $ 1,080 | $ 768 | $ 2,170 | $ 1,536 |
Transition asset and prior service benefit | [1] | 8 | 10 | 17 | 19 |
Total before tax benefit | 1,088 | 778 | 2,187 | 1,555 | |
Tax benefit | 407 | 290 | 818 | 579 | |
Total reclassification net of tax | 681 | 488 | 1,369 | 976 | |
Tax benefit | (1,608) | 1,788 | (3,817) | 4,381 | |
Total reclassification net of tax | $ (2,289) | $ 3,800 | $ (6,564) | $ 7,862 | |
[1] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note G "Pension and Other Postretirement Benefit Plans" for further details). |
Note L - Restructuring of Ope47
Note L - Restructuring of Operations (Details Textual) $ in Thousands | Nov. 06, 2015USD ($) | Sep. 25, 2015USD ($) | Dec. 25, 2015USD ($) | Sep. 25, 2015USD ($) | Jun. 30, 2015USD ($) | Dec. 26, 2014USD ($) | Dec. 25, 2015USD ($) | Dec. 26, 2014USD ($) | Jun. 30, 2014USD ($) |
North America [Member] | |||||||||
Restructuring and Related Cost, Number of Positions Eliminated | 15 | ||||||||
Restructuring Charges | $ 292 | ||||||||
ITALY | |||||||||
Restructuring and Related Cost, Number of Positions Eliminated | 6 | ||||||||
Restructuring Charges | $ 143 | ||||||||
Disposal Group, Distribution Rights and Certain Assets [Member] | Proceeds from the Sale of Distribution Rights to Be Amortized into Revenue [Member] | |||||||||
Proceeds from Sale of Intangible Assets | $ 600 | ||||||||
Disposal Group, Distribution Rights and Certain Assets [Member] | |||||||||
Proceeds from Sale of Other Productive Assets | $ 4,100 | ||||||||
Gain (Loss) on Disposition of Assets | $ 56 | ||||||||
Belgian Operations [Member] | |||||||||
Restructuring Charges | $ 1,642 | ||||||||
Restructuring Reserve | $ 456 | $ 456 | |||||||
Restructuring Charges | 515 | $ 3,282 | 515 | ||||||
Restructuring Reserve, Accrual Adjustment | (80) | ||||||||
Restructuring Reserve | 29 | 29 | |||||||
Other Operating Income | $ (56) | $ 445 | $ 445 |