Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Aug. 19, 2016 | Dec. 25, 2015 | |
Document Information [Line Items] | |||
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) | 11,438,573 | ||
Entity Public Float | $ 95,679,464 | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Current assets: | ||
Cash | $ 18,273,000 | $ 22,936,000 |
Trade accounts receivable, net | 25,363,000 | 43,883,000 |
Inventories | 66,569,000 | 80,241,000 |
Deferred Tax Assets, Net of Valuation Allowance, Current | 4,863,000 | |
Prepaid expenses | 7,353,000 | 7,495,000 |
Other | 7,477,000 | 10,412,000 |
Total current assets | 125,035,000 | 169,830,000 |
Property, plant and equipment, net | 51,665,000 | 56,427,000 |
Goodwill, net | 5,120,000 | 12,789,000 |
Deferred income taxes | 25,870,000 | 4,878,000 |
Intangible assets, net | 2,164,000 | 2,186,000 |
Other assets | 4,068,000 | 3,752,000 |
Total assets | 213,922,000 | 249,862,000 |
Current liabilities: | ||
Short-term borrowings and current maturities of long-term debt | 3,571,000 | |
Accounts payable | 14,716,000 | 20,729,000 |
Accrued liabilities | 21,415,000 | 32,754,000 |
Total current liabilities | 36,131,000 | 57,054,000 |
Long-term debt | 8,501,000 | 10,231,000 |
Accrued retirement benefits | 48,705,000 | 38,362,000 |
Deferred income taxes | 827,000 | 1,093,000 |
Other long-term liabilities | 2,705,000 | 2,955,000 |
Total liabilities | 96,869,000 | 109,695,000 |
Commitments and contingencies (Note O) | ||
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 | 11,761,000 | 12,259,000 |
Retained earnings | 175,662,000 | 190,807,000 |
Accumulated other comprehensive loss | (44,143,000) | (35,481,000) |
Equity before treasury stock | 143,280,000 | 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 | 116,490,000 | 139,528,000 |
Noncontrolling interest | 563,000 | 639,000 |
Total equity | 117,053,000 | 140,167,000 |
Total liabilities and equity | $ 213,922,000 | $ 249,862,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2016 | 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 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net sales | $ 166,282,000 | $ 265,790,000 | $ 263,909,000 |
Cost of goods sold | 125,687,000 | 182,758,000 | 186,655,000 |
Gross profit | 40,595,000 | 83,032,000 | 77,254,000 |
Marketing, engineering and administrative expenses | 57,113,000 | 64,264,000 | 67,406,000 |
Restructuring expenses | 921,000 | 3,282,000 | 961,000 |
Goodwill impairment charge | 7,602,000 | ||
Other operating expense (income) | (445,000) | ||
(Loss) earnings from operations | (24,596,000) | 15,486,000 | 8,887,000 |
Other income (expense): | |||
Interest income | 147,000 | 124,000 | 121,000 |
Interest expense | (426,000) | (606,000) | (936,000) |
Other income (expense), net | (420,000) | 896,000 | 24,000 |
Non-operating income (expense) | (699,000) | 414,000 | (791,000) |
(Loss) earnings before income taxes and noncontrolling interest | (25,295,000) | 15,900,000 | 8,096,000 |
Income tax (benefit) expense | (12,282,000) | 4,515,000 | 4,226,000 |
Net (loss) earnings | (13,013,000) | 11,385,000 | 3,870,000 |
Less: Net earnings attributable to noncontrolling interest, net of tax | (91,000) | (212,000) | (226,000) |
Net (loss) earnings attributable to Twin Disc | $ (13,104,000) | $ 11,173,000 | $ 3,644,000 |
(Loss) earnings per share data: | |||
Basic (loss) earnings per share attributable to Twin Disc common shareholders (in dollars per share) | $ (1.17) | $ 0.99 | $ 0.32 |
Diluted (loss) earnings per share attributable to Twin Disc common shareholders (in dollars per share) | $ (1.17) | $ 0.99 | $ 0.32 |
Weighted average shares outstanding data: | |||
Basic shares outstanding (in shares) | 11,203 | 11,273 | 11,258 |
Dilutive stock awards (in shares) | 4 | 6 | |
Diluted shares outstanding (in shares) | 11,203 | 11,277 | 11,264 |
Comprehensive income (loss): | |||
Net (loss) earnings | $ (13,013,000) | $ 11,385,000 | $ 3,870,000 |
Foreign currency translation adjustment | (1,557,000) | (14,119,000) | 3,760,000 |
Benefit plan adjustments, net of income taxes of ($3,340), ($2,974) and $3,806, respectively | (7,080,000) | (5,499,000) | 6,126,000 |
Comprehensive income (loss) | (21,650,000) | (8,233,000) | 13,756,000 |
Less: Comprehensive income attributable to noncontrolling interest | (114,000) | (132,000) | (156,000) |
Comprehensive (loss) income attributable to Twin Disc | $ (21,764,000) | $ (8,365,000) | $ 13,600,000 |
Consolidated Statements of Ope5
Consolidated Statements of Operations and Comprehensive Income (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Benefit plan adjustments, tax | $ (3,340) | $ (2,974) | $ 3,806 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | |||
Net (loss) earnings | $ (13,013,000) | $ 11,385,000 | $ 3,870,000 |
Adjustments to reconcile net (loss) earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 8,847,000 | 10,161,000 | 10,657,000 |
Goodwill impairment charge | 7,602,000 | ||
Stock compensation expense | 1,295,000 | 696,000 | 1,184,000 |
Restructuring of operations | 354,000 | 3,282,000 | 961,000 |
Provision for deferred income taxes | (12,203,000) | (442,000) | 634,000 |
Other, net | 74,000 | 215,000 | 26,000 |
Changes in operating assets and liabilities | |||
Trade accounts receivable | 18,422,000 | (7,248,000) | 7,076,000 |
Inventories | 10,060,000 | 8,860,000 | 6,972,000 |
Other assets | 938,000 | (4,090,000) | 2,198,000 |
Accounts payable | (6,285,000) | 914,000 | 1,364,000 |
Accrued liabilities | (12,580,000) | 380,000 | (8,531,000) |
Accrued/prepaid retirement benefits | (120,000) | (7,053,000) | (662,000) |
Net cash provided by operating activities | 3,391,000 | 17,060,000 | 25,749,000 |
Cash flows from investing activities: | |||
Proceeds from sale of business (see Note P) | 3,500,000 | ||
Proceeds from life insurance policy | 2,002,000 | ||
Proceeds from sale of plant assets | 124,000 | 279,000 | 103,000 |
Capital expenditures | (4,214,000) | (9,049,000) | (7,245,000) |
Other, net | (270,000) | 1,934,000 | 34,000 |
Net cash provided (used) by investing activities | 1,142,000 | (6,836,000) | (7,108,000) |
Cash flows from financing activities: | |||
Payments of senior notes | (3,571,000) | (3,600,000) | (3,651,000) |
Borrowings under revolving loan agreement | 89,473,000 | 83,681,000 | 70,443,000 |
Repayments under revolving loan agreement | (91,203,000) | (84,674,000) | (75,544,000) |
Proceeds from exercise of stock options | 12,000 | 15,000 | |
Dividends paid to shareholders | (2,041,000) | (4,061,000) | (4,059,000) |
Dividends paid to noncontrolling interest | (192,000) | (220,000) | (487,000) |
Excess tax benefits (shortfall) from stock compensation | (349,000) | (26,000) | 524,000 |
Payments of withholding taxes on stock compensation | (190,000) | (313,000) | (2,169,000) |
Net cash used by financing activities | (8,061,000) | (9,198,000) | (14,943,000) |
Effect of exchange rate changes on cash | (1,135,000) | (2,847,000) | 335,000 |
Net change in cash | (4,663,000) | (1,821,000) | 4,033,000 |
Cash: | |||
Beginning of year | 22,936,000 | 24,757,000 | 20,724,000 |
End of year | 18,273,000 | 22,936,000 | 24,757,000 |
Supplemental cash flow information: | |||
Interest | 474,000 | 569,000 | 989,000 |
Income taxes | $ 1,758,000 | $ 5,061,000 | $ 3,691,000 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) | Common Stock [Member] | Retained Earnings, Appropriated [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] | Total |
Balance at Jun. 30, 2013 | $ 13,183,000 | $ 184,110,000 | $ (25,899,000) | $ (28,890,000) | $ 1,058,000 | $ 143,562,000 |
Net (loss) earnings | 3,644,000 | 226,000 | 3,870,000 | |||
Foreign currency translation adjustment | 3,830,000 | (70,000) | 3,760,000 | |||
Benefit plan adjustments, net of tax | 6,126,000 | 6,126,000 | ||||
Cash dividends | (4,059,000) | (487,000) | (4,546,000) | |||
Compensation expense and windfall tax benefits | 1,708,000 | 1,708,000 | ||||
Shares (acquired) issued, net | (2,918,000) | 749,000 | (2,169,000) | |||
Balance at Jun. 30, 2014 | 11,973,000 | 183,695,000 | (15,943,000) | (28,141,000) | 727,000 | 152,311,000 |
Net (loss) earnings | 11,173,000 | 212,000 | 11,385,000 | |||
Foreign currency translation adjustment | (14,039,000) | (80,000) | (14,119,000) | |||
Benefit plan adjustments, net of tax | (5,499,000) | (5,499,000) | ||||
Cash dividends | (4,061,000) | (220,000) | (4,281,000) | |||
Compensation expense and windfall tax benefits | 668,000 | 668,000 | ||||
Shares (acquired) issued, net | (382,000) | 84,000 | (298,000) | |||
Balance at Jun. 30, 2015 | 12,259,000 | 190,807,000 | (35,481,000) | (28,057,000) | 639,000 | 140,167,000 |
Net (loss) earnings | (13,104,000) | 91,000 | (13,013,000) | |||
Foreign currency translation adjustment | (1,582,000) | 25,000 | (1,557,000) | |||
Benefit plan adjustments, net of tax | (7,080,000) | (7,080,000) | ||||
Cash dividends | (2,041,000) | (192,000) | (2,233,000) | |||
Compensation expense and windfall tax benefits | 946,000 | 946,000 | ||||
Shares (acquired) issued, net | (1,444,000) | 1,267,000 | (177,000) | |||
Balance at Jun. 30, 2016 | $ 11,761,000 | $ 175,662,000 | $ (44,143,000) | $ (26,790,000) | $ 563,000 | $ 117,053,000 |
Note A - Significant Accounting
Note A - Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | A. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of the significant accounting policies followed in the preparation of these financial statements: Consolidation Principles Management Estimates-- Translation of Foreign Currencies Cash Receivables Fair Value of Financial Instruments . Derivative Financial Instruments - 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 2016 and 2015 was the euro. At June 30, 2016 and 2015, the Company had no outstanding forward exchange contracts. Inventories Property, Plant and Equipment and Depreciation Impairment of Long-lived Assets Goodwill and Other Intangibles 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; the fair value determined is also compared to the value obtained using a market approach from guideline public company multiples. 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 fair value 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. The Company conducted its annual assessment for goodwill impairment as of June 30, 2016 using updated inputs, including appropriate risk-based, country and company specific weighted average discount rates for all of the Company’s reporting units. As further described in Note D, the assessment resulted in the Company recognizing a goodwill impairment charge of $7,602. 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, 2016 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 As of June 30, 2016, the Company elected to early adopt the FASB guidance requiring that deferred income tax assets and liabilities, by jurisdiction, be presented in the balance sheet as noncurrent classification. The Consolidated Balance Sheet as of June 30, 2016 reflects the early adoption of this new accounting policy. The Company chose not to retrospectively adjust prior periods. Revenue Recognition Shipping and Handling Fees and Costs Out-of-Period Adjustments ● The Company had over accrued for certain payroll related items totaling $337 as of June 30, 2013, resulting in an increase to earnings from operations. ● The Company had overstated its warranty accrual by $217 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 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 as of June 30, 2013, resulting in additional tax expense. The Company does not believe these errors were material to its financial statements for any prior period, nor that the correction of these errors was material to the year ended June 30, 2014. During the third quarter of fiscal 2015, the Company recorded an out-of-period adjustment for the correction of an error related to tax expense. More specifically, the Company understated tax expense by $175 for the year ended June 30, 2014. The impact of the correction of this error was to decrease net earnings by $175 for the fiscal year ended June 30, 2015. The Company does not believe this error is material to its financial statements for any prior period, nor that the correction of these errors was material to the year ended June 30, 2015, or any of the quarters therein. During the fourth quarter of 2015, the Company recorded an out-of-period adjustment to correct an error related to an understatement of its accrued retirement benefits for certain of its international benefit plans that contain minimum return guarantees of approximately $470. The impact of this correction was to increase comprehensive loss by $470. The Company does not believe this error is material to its financial statements for any prior period, nor that the correction of this error is material to the year ended June 30, 2015. Recently Issued Accounting Standards In March 2016, the Financial Accounting Standards Board (“FASB”) issued updated guidance to the Accounting Standards Codification (“ASC”), intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. 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 February 2016, the FASB issued guidance which replaces the existing guidance for leases. The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The guidance is effective for fiscal years beginning after December 15, 2018 (the Company’s fiscal 2020), including interim periods within those fiscal years and requires retrospective application. The Company is currently evaluating the potential impact of this guidance on the Company’s financial statements and disclosures. In November 2015, the 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 has elected to early adopt this guidance during the fiscal year ended June 30, 2016. The Consolidated Balance Sheet as of June 30, 2016 reflects this early adoption. This guidance was adopted prospectively and therefore prior year periods were not revised. 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. With regard to debt issuance costs in connection with line-of-credit arrangements, they are to be presented as an asset and amortized ratably over the term of the arrangement. 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 - Inventories
Note B - Inventories | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | B. INVENTORIES The major classes of inventories at June 30 were as follows: 2016 2015 Finished parts $ 45,622 $ 56,982 Work in process 8,020 8,292 Raw materials 12,927 14,967 $ 66,569 $ 80,241 Inventories stated on a LIFO basis represent approximately 33% and 28% of total inventories at June 30, 2016 and 2015, respectively. The approximate current cost of the LIFO inventories exceeded the LIFO cost by $26,451 and $26,816 at June 30, 2016 and 2015, respectively. The Company had reserves for inventory obsolescence of $8,823 and $8,167 at June 30, 2016 and 2015, respectively. |
Note C - Property, Plant and Eq
Note C - Property, Plant and Equipment | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | C. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment at June 30 were as follows: 2016 2015 Land $ 6,497 $ 6,646 Buildings 45,808 44,110 Machinery and equipment 132,969 133,432 185,274 184,188 Less: accumulated depreciation (133,609 ) (127,761 ) $ 51,665 $ 56,427 Depreciation expense for the years ended June 30, 2016, 2015 and 2014 was $8,682, $9,922 and $10,180, respectively. |
Note D - Goodwill and Other Int
Note D - Goodwill and Other Intangibles | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | D. GOODWILL AND OTHER INTANGIBLES Goodwill The Company reviews goodwill for impairment on a reporting unit basis annually as of the end of the fiscal year, and whenever events or changes in circumstances (“triggering events”) indicate that the carrying value of goodwill may not be recoverable. Goodwill recorded in the following reporting units was evaluated: US Industrial European Propulsion European Industrial The goodwill impairment test involves a two-step process. In step one, the fair value of each of the reporting units is compared to its carrying value, including the goodwill allocated to the reporting unit. If the fair value of the reporting unit exceeds its carrying value, there is no indication of impairment and no further testing is required. If the fair value of the reporting unit is less than the carrying value, step two of the impairment test is performed to measure the amount of impairment loss, if any. In step two of the test, the fair value of the reporting unit’s assets and liabilities (both recognized and unrecognized intangible assets) are measured in accordance with ASC 805, “Business Combinations”, in a hypothetical purchase transaction and compared to the fair value of the reporting unit in order to calculate the implied fair value of goodwill in the same manner as if the reporting unit was being acquired in a business combination. If the implied fair value of the reporting unit’s goodwill is less than the carrying value, the difference is recorded as an impairment loss. The fair value of reporting units is primarily driven by projected growth rates and operating results under the income approach using a discounted cash flow model, which applies an appropriate market-participant discount rate, and consideration of other market approach data from guideline public companies. The Company experienced sustained declines in operating results across the business during fiscal 2016, which resulted from weak market trends in the Company’s global oil and gas and commercial marine markets, an underperforming European economy, and few signs of significant near-term recovery in the markets served by these reporting units. The Company conducted its annual assessment for goodwill impairment as of June 30, 2016 using updated inputs, including appropriate risk-based, country and company specific weighted average discount rates for all of the Company’s reporting units, which had increased from the prior year to 13.1% for the U.S. Industrial business as a result of the macroeconomic trends and the Company’s forecasted cash flows. The assessment resulted in the U.S. Industrial and European Propulsion reporting units failing step one of the impairment test. The Company then performed step two testing for each of the reporting units. The conclusions were that the U.S. Industrial reporting unit required an impairment charge of $6,391, and the European Propulsion reporting unit required a full impairment charge of $1,211. The fair value of the European Industrial reporting unit exceeded its carrying value by 31% and therefore no impairment charge was required for this reporting unit. The total non-cash impairment charge of $7,602 does not result in any future cash expenditures, impact liquidity, affect the ongoing business or financial performance of the Company, impact compliance with our lending arrangements, or reduce borrowing capacity. As of June 30, 2016, goodwill is carried in the following reporting units: Reporting Unit US Industrial $ 2,550 European Industrial 2,570 Total $ 5,120 The changes in the carrying amount of goodwill, all of which is allocated to the manufacturing segment, for the years ended June 30, 2016 and 2015 were as follows: Gross Carrying Amount Accumulated Impairment Net Book Value Balance at June 30, 2014 $ 17,133 $ (3,670 ) $ 13,463 Translation adjustment (674 ) - (674 ) Balance at June 30, 2015 16,459 (3,670 ) 12,789 Sale of business (25 ) - (25 ) Impairment - (7,602 ) (7,602 ) Translation adjustment (42 ) - (42 ) Balance at June 30, 2016 $ 16,392 $ (11,272 ) $ 5,120 Other Intangibles At June 30, the following acquired intangible assets have definite useful lives and are subject to amortization: June 30, 2016 Gross Carrying Amount Accumulated Amortization Accumulated Impairment Net Book Value Licensing agreements $ 3,015 $ (2,565 ) $ - $ 450 Non-compete agreements 2,128 (2,045 ) (83 ) - Trade name 1,668 (275 ) - 1,393 Other 6,615 (5,301 ) (1,194 ) 120 $ 13,426 $ (10,186 ) $ (1,277 ) $ 1,963 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 Other intangibles consist of certain amortizable acquisition costs, proprietary technology, computer software and certain customer relationships. The weighted average remaining useful life of the intangible assets included in the table above is approximately 14 years. Intangible amortization expense for the years ended June 30, 2016, 2015 and 2014 was $165, $239 and $477, respectively. Estimated intangible amortization expense for each of the next five fiscal years is as follows: Fiscal Year 2017 $ 180 2018 179 2019 167 2020 153 2021 149 Thereafter 1,135 The gross carrying amount of the Company’s intangible assets that have indefinite lives and are not subject to amortization as of June 30, 2016 and 2015 are $201 and $213, respectively. These assets are comprised of acquired tradenames. |
Note E - Accrued Liabilities
Note E - Accrued Liabilities | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | E. ACCRUED LIABILITIES Accrued liabilities at June 30 were as follows: 2016 2015 Salaries and wages $ 4,851 $ 8,568 Retirement benefits 3,550 3,773 Distributor rebate 2,538 2,989 Warranty 2,532 3,310 Customer advances/deferred revenue 2,372 2,602 Restructuring 801 3,776 Other 4,771 7,736 $ 21,415 $ 32,754 |
Note F - Warranty
Note F - Warranty | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Product Warranty Disclosure [Text Block] | 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) and service against defective materials or workmanship. Such warranty generally extends from periods ranging from 12 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: 2016 2015 Reserve balance, July 1 $ 5,245 $ 5,968 Current period expense 646 1,989 Payments or credits to customers (2,278 ) (2,332 ) Translation adjustment (6 ) (380 ) Reserve balance, June 30 $ 3,607 $ 5,245 The current portion of the warranty accrual ($2,532 and $3,310 for fiscal 2016 and 2015, respectively) is reflected in accrued liabilities, while the long-term portion ($1,075 and $1,935 for fiscal 2016 and 2015, respectively) is included in other long-term liabilities on the Consolidated Balance Sheets. |
Note G - Debt
Note G - Debt | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | G. DEBT Long-term Debt Long-term debt consisted of the following at June 30: 2016 2015 Revolving loan agreement $ 8,478 $ 10,208 10-year unsecured senior notes - 3,571 Other 23 23 Subtotal 8,501 13,802 Less: current maturities - (3,571 ) Total long-term debt $ 8,501 $ 10,231 The revolving loan agreement as of June 30, 2016 pertains to the revolving loan facility which the Company entered into on April 22, 2016 with Bank of Montreal (the “BMO Agreement”). The BMO Agreement is secured by substantially all of the Company’s personal property, including accounts receivable, inventory, and certain machinery and equipment of its primary manufacturing facility in Racine, Wisconsin, and the personal property of Mill-Log Equipment Co., Inc., a wholly-owned domestic subsidiary of the Company. The BMO 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 June 30, 2016, the Company’s borrowing capacity under the terms of the BMO Agreement was approximately $21,571, and the Company had approximately $12,058 of available borrowings. As of June 30, 2016, the interest rate under this agreement was 2.21%. The revolving loan agreement as of June 30, 2015 pertains to the unsecured revolving loan facility which the Company entered into on June 30, 2014 with Wells Fargo Bank, N.A. (the “Wells Fargo Agreement”). The Wells Fargo Agreement bore interest at LIBOR plus 1.00%. The interest rate was 1.20% at June 30, 2015. The Wells Fargo Agreement required compliance with certain covenants, including restrictions on investments, acquisitions and indebtedness. Financial covenants included a minimum consolidated adjusted net worth amount, a minimum EBITDA for the most recent four fiscal quarters of $11,000 at June 30, 2015 and a maximum total funded debt to EBITDA ratio of 3.0 at June 30, 2015. Subsequently in August 2015, the definition of EBITDA was revised to add $3,300, reflective of the restructuring charge taken by the Company in the fourth quarter of the fiscal year ending June 30, 2015. As of June 30, 2015, the Company was in compliance with these financial covenants. On March 25, 2016, due to unfavorable operating results, the Company was not in compliance with the EBITDA covenant. The Company paid off this loan with the proceeds of the BMO Agreement on April 22, 2016. The unsecured senior notes pertain to borrowings under an Amended and Restated Note Purchase and Private Shelf Agreement (the “Prudential Agreement”) which the Company entered into on June 30, 2014, amending the original note agreement dated April 10, 2006. The Prudential Agreement consists of (a) a “note” agreement, under which the Company had an outstanding balance of $3,571 as of June 30, 2015, and (b) a “Shelf Notes” agreement which set forth the terms of the potential sale and purchase of up to $50,000. The notes bore interest at 6.05%. The notes matured and were fully paid on April 10, 2016. The Company did not draw on the Shelf Notes agreement and cancelled this facility on April 21, 2016. The Prudential Agreement required compliance with the same financial covenants as those in the Wells Fargo Agreement. The aggregate scheduled maturities of outstanding long-term debt obligations in subsequent years are as follows: Fiscal Year 2017 $ - 2018 - 2019 - 2020 - 2021 8,478 Thereafter 23 $ 8,501 Other lines of credit : The Company has established unsecured lines of credit, which may be withdrawn at the option of the banks. Under these arrangements, the Company has unused and available credit lines of $1,470 with a weighted average interest rate of 5.4% as of June 30, 2016, and $1,689 with a weighted average interest rate of 5.8% as of June 30, 2015. |
Note H - Lease Commitments
Note H - Lease Commitments | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Leases of Lessee Disclosure [Text Block] | H. LEASE COMMITMENTS The Company leases certain office and warehouse space, as well as production and office equipment. Approximate future minimum rental commitments under noncancellable operating leases are as follows: Fiscal Year 2017 $ 2,422 2018 1,374 2019 483 2020 217 2021 25 Thereafter 44 $ 4,565 Total rent expense for operating leases approximated $3,240, $3,550 and $3,920 in fiscal 2016, 2015 and 2014, respectively. |
Note I - Shareholders' Equity
Note I - Shareholders' Equity | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | I. SHAREHOLDERS' EQUITY The total number of shares of common stock outstanding at June 30, 2016, 2015 and 2014 was 11,350,174, 11,267,347 and 11,261,873, respectively. At June 30, 2016, 2015 and 2014, treasury stock consisted of 1,749,294, 1,832,121 and 1,837,595 shares of common stock, respectively. The Company issued 83,377, 49,314 and 51,921 shares of treasury stock in fiscal 2016, 2015 and 2014, respectively, to fulfill its obligations under the stock option plans and restricted stock grants. The Company also recorded forfeitures of 1,750 and 46,240 shares of previously issued restricted stock in fiscal 2016 and 2015, respectively. The difference between the cost of treasury shares and the option price is recorded in common stock. Under an authorization given by the Board of Directors on July 27, 2012, the Company is permitted to make open market purchases of its common stock. The Company did not make any open market purchases during the three most recent fiscal years. As of June 30, 2016, 2015, and 2014, 315,000 shares remain authorized for purchase. Cash dividends per share were $0.18, $0.36 and $0.36 in fiscal 2016, 2015 and 2014, 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, 2016 and 2015 are as follows: 2016 2015 Translation adjustments $ 5,158 $ 6,740 Benefit plan adjustments, net of income taxes of $27,750 and $24,411 respectively (49,301 ) (42,221 ) Accumulated other comprehensive loss $ (44,143 ) $ (35,481 ) A reconciliation for the changes in accumulated other comprehensive income (loss), net of tax, by component for the years ended June 30, 2014, June 30, 2015 and June 30, 2016 is as follows: Translation Adjustment Benefit Plan 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 ) Translation Adjustment Benefit Plan Adjustment Balance at June 30, 2014 $ 20,779 $ (36,722 ) Other comprehensive loss before reclassifications (14,039 ) (7,518 ) Amounts reclassified from accumulated other comprehensive income - 2,019 Net current period other comprehensive income (14,039 ) (5,499 ) Balance at June 30, 2015 $ 6,740 $ (42,221 ) Translation Adjustment Benefit Plan Adjustment Balance at June 30, 2015 $ 6,740 $ (42,221 ) Other comprehensive loss before reclassifications (1,582 ) (10,101 ) Amounts reclassified from accumulated other comprehensive income - 3,021 Net current period other comprehensive income (1,582 ) (7,080 ) Balance at June 30, 2016 $ 5,158 $ (49,301 ) 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 $ (3,496 ) Transition asset and prior service benefit (31 ) Total before tax benefit (3,527 ) Tax benefit 1,351 Total reclassification net of tax $ (2,176 ) A reconciliation for the reclassifications out of accumulated other comprehensive income (loss), net of tax for the year ended June 30, 2015 is as follows: Amount Reclassified Amortization of benefit plan items Actuarial losses $ (3,074 ) Transition asset and prior service benefit (36 ) Total before tax benefit (3,110 ) Tax benefit 1,091 Total reclassification net of tax $ (2,019 ) A reconciliation for the reclassifications out of accumulated other comprehensive income (loss), net of tax for the year ended June 30, 2016 is as follows: Amount Reclassified Amortization of benefit plan items Actuarial losses $ (4,355 ) Transition asset and prior service benefit (92 ) Total before tax benefit (4,447 ) Tax benefit 1,426 Total reclassification net of tax $ (3,021 ) |
Note J - Business Segments and
Note J - Business Segments and Foreign Operations | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 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, energy and natural resources, government, and industrial markets. Net sales by product group is summarized as follows: 2016 2015 2014 Industrial $ 32,437 $ 42,078 $ 41,188 Land based transmissions 29,028 76,450 67,055 Marine and propulsion systems 98,925 141,137 149,432 Other 5,892 6,125 6,234 Total $ 166,282 $ 265,790 $ 263,909 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 Company-owned distribution entities. The Company has two reportable segments: manufacturing and distribution. Its segment structure reflects the way management makes operating decisions and manages the growth and profitability of the business. It also corresponds with management’s approach of allocating resources and assessing the performance of its segments. 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. In fiscal 2016, the Company changed the composition of entities that are reported in each segment to the chief operating decision maker. Consequently, in accordance with ASC 280, “Segment Reporting”, the Company revised segment information of fiscal 2015 and 2014 for comparability. Information about the Company's segments is summarized as follows: 2016 Manufacturing Distribution Total Net Sales $ 140,965 $ 74,199 $ 215,164 Intra-segment sales 11,476 7,854 19,330 Inter-segment sales 26,883 2,669 29,552 Interest income 117 25 142 Interest expense 397 1 398 Income taxes (2,554 ) 108 (2,446 ) Depreciation and amortization 7,536 471 8,007 Net (loss) earnings attributable to Twin Disc (12,694 ) 762 (11,932 ) Assets 221,590 68,939 290,529 Expenditures for segment assets 3,850 188 4,038 2015 (as revised) Manufacturing Distribution Total Net Sales $ 232,545 $ 120,594 $ 353,139 Intra-segment sales 19,541 9,584 29,125 Inter-segment sales 54,947 3,277 58,224 Interest income 171 33 204 Interest expense 946 - 946 Income taxes 7,125 1,646 8,771 Depreciation and amortization 8,103 502 8,605 Net earnings attributable to Twin Disc 12,861 6,350 19,211 Assets 246,374 62,134 308,508 Expenditures for segment assets 7,335 1,271 8,606 2014 (as revised) Manufacturing Distribution Total Net Sales $ 219,489 $ 138,416 $ 357,905 Intra-segment sales 18,231 13,253 31,484 Inter-segment sales 59,728 2,784 62,512 Interest income 311 22 333 Interest expense 2,565 45 2,610 Income taxes 6,233 1,432 7,665 Depreciation and amortization 8,562 553 9,115 Net earnings attributable to Twin Disc 6,634 6,455 13,089 Assets 246,771 65,115 311,886 Expenditures for segment assets 6,429 315 6,744 The following is a reconciliation of reportable segment net sales and net (loss) earnings to the Company’s consolidated totals: 2016 2015 2014 Net sales: Total net sales from reportable segments $ 215,164 $ 353,139 $ 357,905 Elimination of inter-company sales (48,882 ) (87,349 ) (93,996 ) Total consolidated net sales $ 166,282 $ 265,790 $ 263,909 Net (loss) earnings attributable to Twin Disc: Total net (loss) earnings from reportable segments $ (11,932 ) $ 19,211 $ 13,089 Other adjustments and corporate expenses (1,172 ) (8,038 ) (9,445 ) Total consolidated net (loss) earnings attributable to Twin Disc $ (13,104 ) $ 11,173 $ 3,644 Corporate expenses pertain to certain costs that are not allocated to the reportable segments, primarily consisting of unallocated corporate overhead costs, including administrative functions and global functional expenses. Other significant items: Segment Totals Adjustments Consolidated Totals 2016 Interest income $ 142 $ 5 $ 147 Interest expense 398 28 426 Income taxes (2,446 ) (9,836 ) (12,282 ) Depreciation and amortization 8,007 840 8,847 Assets 290,529 (76,607 ) 213,922 Expenditures for segment assets 4,038 176 4,214 2015 Interest income $ 204 $ (80 ) $ 124 Interest expense 946 (340 ) 606 Income taxes 8,771 (4,256 ) 4,515 Depreciation and amortization 8,605 1,556 10,161 Assets 308,508 (58,646 ) 249,862 Expenditures for segment assets 8,606 443 9,049 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 Assets 311,886 (44,901 ) 266,985 Expenditures for segment assets 6,744 501 7,245 All adjustments represent inter-company eliminations and corporate amounts. Geographic information about the Company is summarized as follows: 2016 2015 2014 Net sales United States $ 77,147 $ 131,198 $ 108,380 Italy 13,294 14,457 17,396 Australia 9,943 10,454 9,955 China 9,019 19,712 33,830 Canada 8,699 13,661 9,277 Other countries 48,180 76,308 85,071 Total $ 166,282 $ 265,790 $ 263,909 Net sales by geographic region are based on product shipment destination. Long-lived assets primarily pertain to property, plant and equipment and exclude goodwill and other intangibles. They are summarized as follows: Long-lived assets 2016 2015 United States $ 37,319 $ 40,822 Belgium 7,154 6,709 Switzerland 7,145 7,686 Italy 1,638 2,376 Other countries 2,477 2,586 Total $ 55,733 $ 60,179 The Company has two distributor customers, primarily of our manufacturing segment, that each accounted for 12% of total Company sales for fiscal 2016. One of them accounted for 11% of total Company sales in each of fiscal 2015 and fiscal 2014. |
Note K - Stock-based Compensati
Note K - Stock-based Compensation | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | K. STOCK-BASED COMPENSATION In fiscal 2011, the Company adopted the Twin Disc, Incorporated 2010 Stock Incentive Plan for Non-Employee Directors (the “2010 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 “2010 Employee Incentive Plan”), a plan under which officers and key employees may be granted equity-based awards up to 650,000 shares of common stock. Equity-based awards granted under these plans include performance shares, performance units, and restricted stock. Shares available for future awards as of June 30 were as follows: 2016 2015 2010 Employee Incentive Plan 333,054 447,730 2010 Directors' Plan 144,656 171,986 Performance Stock Awards (“PSA”) In fiscal 2016, 2015 and 2014, the Company granted a target number of 60,466, 16,261 and 17,312 PSAs, respectively, to various employees of the Company, including executive officers. The PSAs granted in fiscal 2016 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 90,699. 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 average annual sales and economic profit measures. The Company is currently accruing compensation expense for the TSR measure. Compensation expense relating to the relative TSR portion is recognized based on the grant date fair value over the vesting period. The PSAs granted in fiscal 2015 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. PSAs granted in fiscal 2015 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 14,101. Based upon actual results to date and the low probability of achieving the threshold performance levels, the Company is not accruing the compensation expense for these PSAs. The PSAs granted in fiscal 2014 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, 2016. The PSAs 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 17,038. Based upon actual results to date and the low probability of achieving the threshold performance levels, the Company is not accruing the compensation expense for these PSAs. There were 72,217, 25,949 and 44,712 unvested PSAs outstanding at June 30, 2016, 2015 and 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. The compensation expense for the year ended June 30, 2016, 2015 and 2014, related PSAs, approximated $54, $0 and $0, respectively. The weighted average grant date fair value of the unvested awards at June 30, 2016 was $17.85. At June 30, 2016, the Company had $1,235 of unrecognized compensation expense related to the unvested shares that would vest if the specified target objective was achieved for the fiscal 2016 and 2015 awards. The total fair value of performance stock awards vested in fiscal 2016, 2015 and 2014 was $0. Performance Stock Unit Awards (“PSU”) In fiscal 2015 and 2014, the Company granted a target number of 15,861 and 43,154 PSUs, respectively, to various employees of the Company, including executive officers. There were no grants of PSUs during fiscal 2016. The PSUs granted in fiscal 2015 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. The PSUs granted in fiscal 2015 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 13,621. Based upon actual results to date and the low probability of achieving the threshold performance levels, the Company is not accruing compensation expense for the PSUs granted in fiscal 2015. The PSUs granted in fiscal 2014 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, 2016. The PSUs 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 PSUs that can be awarded if the target objective is exceeded is 22,205. Based upon actual results to date and the low probability of achieving the threshold performance levels, the Company is not accruing compensation expense for the PSUs granted in fiscal 2014. There were 11,351, 29,855 and 41,160 unvested PSUs outstanding at June 30, 2016, 2015 and 2014, respectively. The weighted average grant date fair value of the unvested awards at June 30, 2016 was $30.16. The 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 stock unit awards are expensed over the performance period for the shares that are expected to ultimately vest. The compensation expense (income) for the years ended June 30, 2016, 2015 and 2014 related to the PSU grants, were $0. At June 30, 2016, the Company had $118 of unrecognized compensation expense related to the unvested shares that would vest if the specified target objective was achieved for the fiscal 2016 awards. The total fair value of PSUs vested in fiscal 2016, 2015 and 2014 was $0. The PSUs are cash based, and are thus recorded as a liability on the Company’s Consolidated Balance Sheets. As of June 30, 2016, 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. Restricted Stock Awards (“RS”) The Company has unvested RS outstanding that will vest if certain service conditions are fulfilled. The fair value of the RS grants is recorded as compensation over the vesting period, which is generally 1 to 3 years. During fiscal 2016, 2015 and 2014, the Company granted 95,738, 59,494 and 51,004 service based restricted shares, respectively, to employees and non-employee directors in each year. A total of 1,750, 46,240 and 3,000 shares of restricted stock were forfeited during fiscal 2016, 2015 and 2014, respectively. There were 142,971, 94,183 and 116,297 unvested shares outstanding at June 30, 2016, 2015 and 2014, respectively. Compensation expense of $1,241, $696 and $1,184 was recognized during the year ended June 30, 2016, 2015 and 2014, respectively, related to these service-based awards. The total fair value of restricted stock grants vested in fiscal 2016, 2015 and 2014 was $681, $993 and $3,053, respectively. As of June 30, 2016, the Company had $1,109 of unrecognized compensation expense related to restricted stock which will be recognized over the next three years. Stock Options The 2010 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 2010 Employee 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 2010 Employee 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 2010 Directors’ Plan and the 2010 Employee Incentive Plan as of June 30, 2016 and 2015. 2004 Plans The Company has 16,800 non-qualified stock options outstanding as of June 30, 2016 under the 2004 Twin Disc, Incorporated Plan for Non-Employee Directors and 2004 Twin Disc, Incorporated Stock Incentive Plan. The 2004 plans were terminated during 2011, except options then outstanding will remain so until exercised or until they expire. Stock option transactions under the plans during 2016 were as follows: 2016 Weighted Average Price Weighted Average Remaining Life (years) Aggregate Intrinsic Value Non-qualified stock options: Options outstanding at beginning of year 19,200 $ 15.96 Granted - - Canceled/expired (1,200 ) 10.11 Exercised (1,200 ) 10.11 Options outstanding at June 30 16,800 $ 16.80 2.64 $ 2.3 Options price range ($10.01 - $27.55) In addition, the Company computes its windfall tax pool using the shortcut method. ASC 718, “Compensation – Stock Compensation”, 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 2016, 2015 and 2014 the Company granted no non-qualified stock options and all non-qualified stock options from prior periods have fully vested. As a result, no compensation cost has been recognized in the Consolidated Statements of Operations and Comprehensive Income for fiscal 2016, 2015 and 2014, respectively. The total intrinsic value of options exercised during the years ended June 30, 2016, 2015 and 2014 was approximately $4, $55 and $0, respectively. |
Note L - Engineering and Develo
Note L - Engineering and Development Costs | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Research, Development, and Computer Software Disclosure [Text Block] | 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 $1,805, $2,288 and $3,028 in fiscal 2016, 2015 and 2014, respectively. Total engineering and development costs were $9,481, $11,091 and $10,900 in fiscal 2016, 2015 and 2014, respectively. |
Note M - Pension and Other Post
Note M - Pension and Other Postretirement Benefit Plans | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 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 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 2016 and 2015 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: Pension Benefits Other Postretirement Benefits 2016 2015 2016 2015 Change in benefit obligation: Benefit obligation, beginning of year $ 127,733 $ 123,832 $ 16,372 $ 16,584 Service cost 770 465 28 30 Interest cost 4,968 4,862 604 579 Actuarial loss (gain) 7,043 8,384 496 882 Contributions by plan participants 143 154 519 547 Benefits paid (11,601 ) (9,964 ) (2,086 ) (2,250 ) Benefit obligation, end of year $ 129,056 $ 127,733 $ 15,933 $ 16,372 Change in plan assets: Fair value of assets, beginning of year $ 104,681 $ 102,495 $ - $ - Actual return on plan assets (1,442 ) 5,828 - - Employer contribution 2,383 6,168 1,567 1,703 Contributions by plan participants 143 154 519 547 Benefits paid (11,601 ) (9,964 ) (2,086 ) (2,250 ) Fair value of assets, end of year $ 94,164 $ 104,681 $ - $ - Funded status $ (34,892 ) $ (23,052 ) $ (15,933 ) $ (16,372 ) Amounts recognized in the balance sheet consist of: Other assets - noncurrent $ 654 $ 638 $ - $ - Accrued liabilities - current (805 ) (764 ) (1,969 ) (2,040 ) Accrued retirement benefits - noncurrent (34,741 ) (22,926 ) (13,964 ) (14,332 ) Net amount recognized $ (34,892 ) $ (23,052 ) $ (15,933 ) $ (16,372 ) Amounts recognized in accumulated other comprehensive loss consist of (net of tax): Net transition obligation $ 285 $ 296 $ - $ - Actuarial net loss 45,850 38,613 3,166 3,312 Net amount recognized $ 46,135 $ 38,909 $ 3,166 $ 3,312 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: Pension Benefits Other Postretirement Benefits Net transition obligation $ 99 $ - Actuarial net loss 3,598 726 Net amount to be recognized $ 3,697 $ 726 The accumulated benefit obligation for all defined benefit pension plans was approximately $129,056 and $127,733 at June 30, 2016 and 2015, respectively. Information for pension plans with an accumulated benefit obligation in excess of plan assets: June 30 2016 2015 Projected and accumulated benefit obligation $ 127,528 $ 126,242 Fair value of plan assets 91,982 102,552 Components of Net Periodic Benefit Cost: Pension Benefits 2016 2015 2014 Service cost $ 770 $ 465 $ 536 Interest cost 4,968 4,862 5,425 Expected return on plan assets (6,874 ) (7,272 ) (6,591 ) Amortization of transition obligation 33 36 32 Amortization of prior service cost 59 - - Amortization of actuarial net loss 3,627 2,436 2,894 Net periodic benefit cost $ 2,583 $ 527 $ 2,296 Other Postretirement Benefits 2016 2015 2014 Service cost $ 28 $ 30 $ 37 Interest cost 604 579 659 Amortization of actuarial net loss 728 638 602 Net periodic benefit cost $ 1,360 $ 1,247 $ 1,298 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income for Fiscal 2016 (Pre-tax): Pension Other Postretirement Benefits Net loss $ 15,514 $ 496 Prior service cost 58 - Amortization of transition asset (33 ) - Amortization of prior service cost (59 ) - Amortization of net (loss) gain (3,627 ) (728 ) Total recognized in other comprehensive income 11,853 (232 ) Net periodic benefit cost 2,583 1,360 Total recognized in net periodic benefit cost and other comprehensive income $ 14,436 $ 1,128 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income for Fiscal 2015 (Pre-tax): Pension Other Postretirement Benefits Net loss $ 9,406 $ 882 Amortization of transition asset (36 ) - Amortization of net (loss) gain (2,436 ) (638 ) Total recognized in other comprehensive income 6,934 244 Net periodic benefit cost 527 1,247 Total recognized in net periodic benefit cost and other comprehensive income $ 7,461 $ 1,491 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income for Fiscal 2014 (Pre-tax): Pension Other Postretirement Benefits Net loss $ (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 and other comprehensive income $ (6,932 ) $ 637 Additional Information Assumptions Pension Benefits Other Postretirement Benefits Weighted average assumptions used to 2016 2015 2016 2015 Discount rate 3.35 % 4.05 % 3.27 % 3.93 % Expected return on plan assets 6.57 % 7.11 % Pension Benefits Other Postretirement Benefits Weighted average assumptions used to determine net periodic benefit costs for years ended June 30 2016 2015 2014 2016 2015 2014 Discount rate 4.05 % 4.06 % 4.35 % 3.93 % 3.76 % 3.99 % Expected return on plan assets 7.11 % 7.39 % 7.41 % The assumed weighted-average healthcare cost trend rate was 7.5 % in 2016, grading down to 5% in 2022. A 1% increase in the assumed health care cost trend would increase the accumulated postretirement benefit obligation by approximately $320 and the service and interest cost by approximately $13. A 1% decrease in the assumed health care cost trend would decrease the accumulated postretirement benefit obligation by approximately $313 and the service and interest cost by approximately $13. Plan Assets The Company’s Benefits Committee (“Committee”), a non-board management 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, 2016 and 2015 by asset category are as follows: Target June 30 Asset Category Allocation 2016 2015 Equity securities 65 % 63 % 62 % Debt securities 25 % 25 % 25 % Real estate 10 % 12 % 13 % 100 % 100 % 100 % Due to market conditions and other factors, actual asset allocation may vary from the target allocation outlined above. The U.S. pension plans held 98,211 shares of Company stock with a fair market value of $1,054.8 (1.1 percent of total plan assets) at June 30, 2016 and 98,211 shares with a fair market value of $1,830.7 (1.8 percent of total plan assets) at June 30, 2015. The plans have a long-term return assumption of 7.0%. 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 Level II 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, 2016: Total Level I Level II Level III Cash and cash equivalents $ 1,143 $ 1,143 $ - $ - Equity securities: U.S. (a) 26,046 26,046 - - International (b) 12,674 8,881 3,793 - Fixed Income (c) 20,842 - 20,842 - Annuity contracts (d) 9,031 - - 9,031 Real estate (e) 10,537 - 10,537 - Other (f) 13,891 - - 13,891 Total $ 94,164 $ 36,070 $ 35,172 $ 22,922 The following table presents plan assets using the fair value hierarchy as of June 30, 2015: Total Level I Level II Level III Cash and cash equivalents $ 1,034 $ 1,034 $ - $ - Equity securities: - U.S. (a) 28,035 28,035 - - International (b) 14,819 10,649 4,170 - Fixed Income (c) 22,615 8,993 13,622 - Annuity contracts (d) 9,508 - - 9,508 Real estate (e) 12,770 - 12,770 - Other (f) 15,900 - - 15,900 Total $ 104,681 $ 48,711 $ 30,562 $ 25,408 (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 its 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, 2016 and 2015: Annuity Contracts Other Balance - June 30, 2015 $ 9,508 $ 15,900 Actual return on plan assets: Relating to assets still held at reporting date 38 (2,009 ) Purchases, sales and settlements, net (619 ) - Transfers in and/or out of Level III 104 - Balance - June 30, 2016 $ 9,031 $ 13,891 Annuity Contracts Other Balance - June 30, 2014 $ 6,340 $ 14,689 Actual return on plan assets: Relating to assets still held at reporting date 2,978 1,211 Purchases, sales and settlements, net 190 - Balance - June 30, 2015 $ 9,508 $ 15,900 Cash Flows Contributions The Company expects to contribute $1,467 to its defined benefit pension plans in fiscal 2017. Estimated Future Benefit Payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Pension Benefits Other Postretirement Benefits Gross Benefits Part D Reimbursement Net Benefit Payments 2017 $ 10,477 $ 2,000 $ - $ 2,000 2018 10,925 1,959 - 1,959 2019 9,675 1,559 - 1,559 2020 9,124 1,465 - 1,465 2021 8,760 1,343 - 1,343 Years 2022 - 2026 38,280 5,258 - 5,258 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 $2,058, $2,526 and $2,218 in fiscal 2016, 2015 and 2014, respectively. |
Note N - Income Taxes
Note N - Income Taxes | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | N. INCOME TAXES United States and foreign earnings before income taxes and minority interest were as follows: 2016 2015 2014 United States $ (29,293 ) $ 5,614 $ 1,107 Foreign 3,998 10,286 6,989 $ (25,295 ) $ 15,900 $ 8,096 The provision (benefit) for income taxes is comprised of the following: 2016 2015 2014 Currently payable: Federal $ (1,683 ) $ 1,607 $ 651 State 136 518 104 Foreign 1,468 2,832 2,837 (79 ) 4,957 3,592 Deferred: Federal (10,978 ) 408 1,309 State (787 ) 5 (95 ) Foreign (438 ) (855 ) (580 ) (12,203 ) (442 ) 634 $ (12,282 ) $ 4,515 $ 4,226 The components of the net deferred tax asset as of June 30 are summarized in the table below. 2016 2015 Deferred tax assets: Retirement plans and employee benefits $ 19,106 $ 15,157 Foreign tax credit carryforwards 8,887 - Federal tax credits 191 - State net operating loss and other state credit carryforwards 768 369 Inventory 1,775 1,789 Reserves 1,544 2,587 Foreign NOL carryforwards 3,176 3,539 Accruals 522 584 Other assets 678 568 36,647 24,593 Deferred tax liabilities: Property, plant and equipment 6,329 7,221 Intangibles 2,011 4,778 Other liabilities 140 451 8,480 12,450 Valuation Allowance (3,123 ) (3,577 ) Total net deferred tax assets $ 25,044 $ 8,566 As of June 30, 2016, due to the early adoption of Accounting Standards Update 2015-17, all deferred tax assets and liabilities have been classified as noncurrent. The Company elected to adopt this guidance prospectively and not revise prior periods. As of June 30, 2015, $4,863 of deferred tax assets is presented as a current asset in the Consolidated Balance Sheet, and $82 of deferred tax liabilities is included in accrued liabilities. 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 2016, the Company reported operating income in certain foreign jurisdictions where the loss carryforward period is unlimited. The Company has evaluated the likelihood of whether the net deferred tax assets related to these jurisdictions would be realized and concluded that based primarily upon the uncertainty to achieve levels of sustained improvement and uncertain exchange rates in these jurisdictions; (a) it is more likely than not that $3,123 of deferred tax assets would not be realized; and that (b) a full valuation allowance on the balance of deferred tax assets relating to these jurisdictions continues to be necessary. The Company recorded a net decrease in valuation allowance of $454 in fiscal 2016 due to lower cumulative operating losses in these jurisdictions. 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: 2016 2015 2014 U.S. federal income tax at 35% $ (8,601 ) $ 5,491 $ 2,754 Increases (reductions) in tax resulting from: Foreign tax items (2,525 ) 362 (291 ) State taxes (374 ) 32 228 Valuation allowance (1,288 ) (1,121 ) 1,551 Change in prior year estimate 473 157 139 Research and development tax credits (348 ) (337 ) (267 ) Section 199 deduction - (96 ) (109 ) Unrecognized tax benefits (21 ) 5 183 Goodwill impairment 420 - - Other, net (18 ) 22 38 $ (12,282 ) $ 4,515 $ 4,226 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 $3,039 at June 30, 2016. 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 2012 through 2016 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 2013. The Company has approximately $790 of unrecognized tax benefits as of June 30, 2016, which, if recognized would impact the effective tax rate. During the fiscal year the amount of unrecognized tax benefits decreased primarily due to expiration of statutes. During the next twelve months, the Company does not anticipate any significant changes in unrecognized tax benefits. 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: June 30, 2016 June 30, 2015 Unrecognized tax benefits, beginning of year $ 810 $ 1,603 Additions based on tax positions related to the prior year 12 - Additions based on tax positions related to the current year 172 184 Reductions based on tax positions related to the prior year (4 ) (3 ) Subtractions due to statutes closing (179 ) (60 ) Settlements with Taxing Authorities (21 ) (914 ) Unrecognized tax benefits, end of year $ 790 $ 810 Substantially all of the Company’s unrecognized tax benefits as of June 30, 3016, if recognized, would affect the effective tax rate. As of June 30, 2016 and 2015, the amounts accrued for interest and penalties totaled $61 and $62, respectively, and are not included in the reconciliation above. |
Note O - Contingencies
Note O - Contingencies | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 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, financial position or cash flows, either individually or in the aggregate. |
Note P - Restructuring of Opera
Note P - Restructuring of Operations | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Restructuring, Impairment, and Other Activities Disclosure [Text Block] | P. RESTRUCTURING OF OPERATIONS In response to challenging global market conditions within the Company’s oil and gas, global pleasure craft and commercial marine markets, the Company undertook a series of restructuring actions starting in late fiscal 2015 through the fourth quarter of fiscal 2016, which primarily involved the elimination of several full-time positions at its operations primarily in the U.S., Italy, and Singapore. These actions resulted in a pre-tax restructuring charge of $921 and $3,282 in fiscal 2016 and 2015, respectively. During fiscal 2014, the Company recorded a pre-tax restructuring charge of $961 to further reduce headcount relating to actions that were initiated in fiscal 2013 in our Belgium operations. The following is a roll-forward of restructuring activity: Accrued restructuring liability, June 30, 2014 $ 785 Additions 3,282 Payments and adjustments (291 ) Accrued restructuring liability, June 30, 2015 3,776 Additions 921 Payments and adjustments (3,896 ) Accrued restructuring liability, June 30, 2016 $ 801 During fiscal 2016, as part of its initiative to focus resources on core manufacturing and product development activities aimed at improving profitability, the Company sold one of its distribution entities in the U.S. The proceeds of $4,100 represent the sale of distribution rights to its southeastern U.S. territories, amounting to $600, and certain assets, consisting primarily of inventories, for $3,500. The gain on sale of $445 is recorded as other operating income in the statement of operations. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | TWIN DISC, INCORPORATED AND SUBSIDIARIES SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS for the years ended June 30, 2016, 2015 and 2014 (in thousands) Description Balance at Beginning of Period Charged to Costs and Expenses Deductions (1) Balance at End of Period 2016: Allowance for losses on accounts receivable $ 2,183 $ 237 $ 596 $ 1,824 Deferred tax valuation allowance $ 3,577 $ 257 $ 711 $ 3,123 2015: Allowance for losses on accounts receivable $ 3,637 $ 304 $ 1,758 $ 2,183 Deferred tax valuation allowance $ 5,593 $ 805 $ 2,821 $ 3,577 2014: Allowance for losses on accounts receivable $ 2,884 $ 1,169 $ 416 $ 3,637 Deferred tax valuation allowance $ 3,724 $ 2,140 $ 271 $ 5,593 (1) Activity primarily represents amounts written-off during the year, along with other adjustments (primarily foreign currency translation adjustments). |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Consolidation Principles |
Use of Estimates, Policy [Policy Text Block] | Management Estimates-- |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Translation of Foreign Currencies |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash |
Receivables, Policy [Policy Text Block] | Receivables |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments . |
Derivatives, Policy [Policy Text Block] | Derivative Financial Instruments - 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 2016 and 2015 was the euro. At June 30, 2016 and 2015, the Company had no outstanding forward exchange contracts. |
Inventory, Policy [Policy Text Block] | Inventories |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment and Depreciation |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-lived Assets |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Other Intangibles 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; the fair value determined is also compared to the value obtained using a market approach from guideline public company multiples. 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 fair value 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. The Company conducted its annual assessment for goodwill impairment as of June 30, 2016 using updated inputs, including appropriate risk-based, country and company specific weighted average discount rates for all of the Company’s reporting units. As further described in Note D, the assessment resulted in the Company recognizing a goodwill impairment charge of $7,602. 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, 2016 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. |
Income Tax, Policy [Policy Text Block] | Deferred Taxes As of June 30, 2016, the Company elected to early adopt the FASB guidance requiring that deferred income tax assets and liabilities, by jurisdiction, be presented in the balance sheet as noncurrent classification. The Consolidated Balance Sheet as of June 30, 2016 reflects the early adoption of this new accounting policy. The Company chose not to retrospectively adjust prior periods. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition |
Shipping and Handling Cost, Policy [Policy Text Block] | Shipping and Handling Fees and Costs |
Out-of-Period Adjustments [Policy Text Block] | Out-of-Period Adjustments ● The Company had over accrued for certain payroll related items totaling $337 as of June 30, 2013, resulting in an increase to earnings from operations. ● The Company had overstated its warranty accrual by $217 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 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 as of June 30, 2013, resulting in additional tax expense. The Company does not believe these errors were material to its financial statements for any prior period, nor that the correction of these errors was material to the year ended June 30, 2014. During the third quarter of fiscal 2015, the Company recorded an out-of-period adjustment for the correction of an error related to tax expense. More specifically, the Company understated tax expense by $175 for the year ended June 30, 2014. The impact of the correction of this error was to decrease net earnings by $175 for the fiscal year ended June 30, 2015. The Company does not believe this error is material to its financial statements for any prior period, nor that the correction of these errors was material to the year ended June 30, 2015, or any of the quarters therein. During the fourth quarter of 2015, the Company recorded an out-of-period adjustment to correct an error related to an understatement of its accrued retirement benefits for certain of its international benefit plans that contain minimum return guarantees of approximately $470. The impact of this correction was to increase comprehensive loss by $470. The Company does not believe this error is material to its financial statements for any prior period, nor that the correction of this error is material to the year ended June 30, 2015. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Standards In March 2016, the Financial Accounting Standards Board (“FASB”) issued updated guidance to the Accounting Standards Codification (“ASC”), intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. 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 February 2016, the FASB issued guidance which replaces the existing guidance for leases. The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The guidance is effective for fiscal years beginning after December 15, 2018 (the Company’s fiscal 2020), including interim periods within those fiscal years and requires retrospective application. The Company is currently evaluating the potential impact of this guidance on the Company’s financial statements and disclosures. In November 2015, the 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 has elected to early adopt this guidance during the fiscal year ended June 30, 2016. The Consolidated Balance Sheet as of June 30, 2016 reflects this early adoption. This guidance was adopted prospectively and therefore prior year periods were not revised. 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. With regard to debt issuance costs in connection with line-of-credit arrangements, they are to be presented as an asset and amortized ratably over the term of the arrangement. 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 - Inventories (Tables)
Note B - Inventories (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | 2016 2015 Finished parts $ 45,622 $ 56,982 Work in process 8,020 8,292 Raw materials 12,927 14,967 $ 66,569 $ 80,241 |
Note C - Property, Plant and 27
Note C - Property, Plant and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | 2016 2015 Land $ 6,497 $ 6,646 Buildings 45,808 44,110 Machinery and equipment 132,969 133,432 185,274 184,188 Less: accumulated depreciation (133,609 ) (127,761 ) $ 51,665 $ 56,427 |
Note D - Goodwill and Other I28
Note D - Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Goodwill Carried in Reporting Units [Table Text Block] | Reporting Unit US Industrial $ 2,550 European Industrial 2,570 Total $ 5,120 |
Schedule of Goodwill [Table Text Block] | Gross Carrying Amount Accumulated Impairment Net Book Value Balance at June 30, 2014 $ 17,133 $ (3,670 ) $ 13,463 Translation adjustment (674 ) - (674 ) Balance at June 30, 2015 16,459 (3,670 ) 12,789 Sale of business (25 ) - (25 ) Impairment - (7,602 ) (7,602 ) Translation adjustment (42 ) - (42 ) Balance at June 30, 2016 $ 16,392 $ (11,272 ) $ 5,120 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | June 30, 2016 Gross Carrying Amount Accumulated Amortization Accumulated Impairment Net Book Value Licensing agreements $ 3,015 $ (2,565 ) $ - $ 450 Non-compete agreements 2,128 (2,045 ) (83 ) - Trade name 1,668 (275 ) - 1,393 Other 6,615 (5,301 ) (1,194 ) 120 $ 13,426 $ (10,186 ) $ (1,277 ) $ 1,963 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 2017 $ 180 2018 179 2019 167 2020 153 2021 149 Thereafter 1,135 |
Note E - Accrued Liabilities (T
Note E - Accrued Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | 2016 2015 Salaries and wages $ 4,851 $ 8,568 Retirement benefits 3,550 3,773 Distributor rebate 2,538 2,989 Warranty 2,532 3,310 Customer advances/deferred revenue 2,372 2,602 Restructuring 801 3,776 Other 4,771 7,736 $ 21,415 $ 32,754 |
Note F - Warranty (Tables)
Note F - Warranty (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | 2016 2015 Reserve balance, July 1 $ 5,245 $ 5,968 Current period expense 646 1,989 Payments or credits to customers (2,278 ) (2,332 ) Translation adjustment (6 ) (380 ) Reserve balance, June 30 $ 3,607 $ 5,245 |
Note G - Debt (Tables)
Note G - Debt (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | 2016 2015 Revolving loan agreement $ 8,478 $ 10,208 10-year unsecured senior notes - 3,571 Other 23 23 Subtotal 8,501 13,802 Less: current maturities - (3,571 ) Total long-term debt $ 8,501 $ 10,231 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Fiscal Year 2017 $ - 2018 - 2019 - 2020 - 2021 8,478 Thereafter 23 $ 8,501 |
Note H - Lease Commitments (Tab
Note H - Lease Commitments (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Operating Leases of Lessee Disclosure [Table Text Block] | Fiscal Year 2017 $ 2,422 2018 1,374 2019 483 2020 217 2021 25 Thereafter 44 $ 4,565 |
Note I - Shareholders' Equity (
Note I - Shareholders' Equity (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | 2016 2015 Translation adjustments $ 5,158 $ 6,740 Benefit plan adjustments, net of income taxes of $27,750 and $24,411 respectively (49,301 ) (42,221 ) Accumulated other comprehensive loss $ (44,143 ) $ (35,481 ) |
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, 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 ) Translation Adjustment Benefit Plan Adjustment Balance at June 30, 2014 $ 20,779 $ (36,722 ) Other comprehensive loss before reclassifications (14,039 ) (7,518 ) Amounts reclassified from accumulated other comprehensive income - 2,019 Net current period other comprehensive income (14,039 ) (5,499 ) Balance at June 30, 2015 $ 6,740 $ (42,221 ) Translation Adjustment Benefit Plan Adjustment Balance at June 30, 2015 $ 6,740 $ (42,221 ) Other comprehensive loss before reclassifications (1,582 ) (10,101 ) Amounts reclassified from accumulated other comprehensive income - 3,021 Net current period other comprehensive income (1,582 ) (7,080 ) Balance at June 30, 2016 $ 5,158 $ (49,301 ) |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Amount Reclassified Amortization of benefit plan items Actuarial losses $ (3,496 ) Transition asset and prior service benefit (31 ) Total before tax benefit (3,527 ) Tax benefit 1,351 Total reclassification net of tax $ (2,176 ) Amount Reclassified Amortization of benefit plan items Actuarial losses $ (3,074 ) Transition asset and prior service benefit (36 ) Total before tax benefit (3,110 ) Tax benefit 1,091 Total reclassification net of tax $ (2,019 ) Amount Reclassified Amortization of benefit plan items Actuarial losses $ (4,355 ) Transition asset and prior service benefit (92 ) Total before tax benefit (4,447 ) Tax benefit 1,426 Total reclassification net of tax $ (3,021 ) |
Note J - Business Segments an34
Note J - Business Segments and Foreign Operations (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Revenue from External Customers by Products and Services [Table Text Block] | 2016 2015 2014 Industrial $ 32,437 $ 42,078 $ 41,188 Land based transmissions 29,028 76,450 67,055 Marine and propulsion systems 98,925 141,137 149,432 Other 5,892 6,125 6,234 Total $ 166,282 $ 265,790 $ 263,909 |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | 2016 Manufacturing Distribution Total Net Sales $ 140,965 $ 74,199 $ 215,164 Intra-segment sales 11,476 7,854 19,330 Inter-segment sales 26,883 2,669 29,552 Interest income 117 25 142 Interest expense 397 1 398 Income taxes (2,554 ) 108 (2,446 ) Depreciation and amortization 7,536 471 8,007 Net (loss) earnings attributable to Twin Disc (12,694 ) 762 (11,932 ) Assets 221,590 68,939 290,529 Expenditures for segment assets 3,850 188 4,038 2015 (as revised) Manufacturing Distribution Total Net Sales $ 232,545 $ 120,594 $ 353,139 Intra-segment sales 19,541 9,584 29,125 Inter-segment sales 54,947 3,277 58,224 Interest income 171 33 204 Interest expense 946 - 946 Income taxes 7,125 1,646 8,771 Depreciation and amortization 8,103 502 8,605 Net earnings attributable to Twin Disc 12,861 6,350 19,211 Assets 246,374 62,134 308,508 Expenditures for segment assets 7,335 1,271 8,606 2014 (as revised) Manufacturing Distribution Total Net Sales $ 219,489 $ 138,416 $ 357,905 Intra-segment sales 18,231 13,253 31,484 Inter-segment sales 59,728 2,784 62,512 Interest income 311 22 333 Interest expense 2,565 45 2,610 Income taxes 6,233 1,432 7,665 Depreciation and amortization 8,562 553 9,115 Net earnings attributable to Twin Disc 6,634 6,455 13,089 Assets 246,771 65,115 311,886 Expenditures for segment assets 6,429 315 6,744 |
Reconciliation of Revenue and Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | 2016 2015 2014 Net sales: Total net sales from reportable segments $ 215,164 $ 353,139 $ 357,905 Elimination of inter-company sales (48,882 ) (87,349 ) (93,996 ) Total consolidated net sales $ 166,282 $ 265,790 $ 263,909 Net (loss) earnings attributable to Twin Disc: Total net (loss) earnings from reportable segments $ (11,932 ) $ 19,211 $ 13,089 Other adjustments and corporate expenses (1,172 ) (8,038 ) (9,445 ) Total consolidated net (loss) earnings attributable to Twin Disc $ (13,104 ) $ 11,173 $ 3,644 |
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated [Table Text Block] | Segment Totals Adjustments Consolidated Totals 2016 Interest income $ 142 $ 5 $ 147 Interest expense 398 28 426 Income taxes (2,446 ) (9,836 ) (12,282 ) Depreciation and amortization 8,007 840 8,847 Assets 290,529 (76,607 ) 213,922 Expenditures for segment assets 4,038 176 4,214 2015 Interest income $ 204 $ (80 ) $ 124 Interest expense 946 (340 ) 606 Income taxes 8,771 (4,256 ) 4,515 Depreciation and amortization 8,605 1,556 10,161 Assets 308,508 (58,646 ) 249,862 Expenditures for segment assets 8,606 443 9,049 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 Assets 311,886 (44,901 ) 266,985 Expenditures for segment assets 6,744 501 7,245 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | 2016 2015 2014 Net sales United States $ 77,147 $ 131,198 $ 108,380 Italy 13,294 14,457 17,396 Australia 9,943 10,454 9,955 China 9,019 19,712 33,830 Canada 8,699 13,661 9,277 Other countries 48,180 76,308 85,071 Total $ 166,282 $ 265,790 $ 263,909 Long-lived assets 2016 2015 United States $ 37,319 $ 40,822 Belgium 7,154 6,709 Switzerland 7,145 7,686 Italy 1,638 2,376 Other countries 2,477 2,586 Total $ 55,733 $ 60,179 |
Note K - Stock-based Compensa35
Note K - Stock-based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule Of Share-based Compensation Shares Available For Future Options [Table Text Block] | 2016 2015 2010 Employee Incentive Plan 333,054 447,730 2010 Directors' Plan 144,656 171,986 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | 2016 Weighted Average Price Weighted Average Remaining Life (years) Aggregate Intrinsic Value Non-qualified stock options: Options outstanding at beginning of year 19,200 $ 15.96 Granted - - Canceled/expired (1,200 ) 10.11 Exercised (1,200 ) 10.11 Options outstanding at June 30 16,800 $ 16.80 2.64 $ 2.3 |
Note M - Pension and Other Po36
Note M - Pension and Other Postretirement Benefit Plans (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Net Funded Status [Table Text Block] | Pension Benefits Other Postretirement Benefits 2016 2015 2016 2015 Change in benefit obligation: Benefit obligation, beginning of year $ 127,733 $ 123,832 $ 16,372 $ 16,584 Service cost 770 465 28 30 Interest cost 4,968 4,862 604 579 Actuarial loss (gain) 7,043 8,384 496 882 Contributions by plan participants 143 154 519 547 Benefits paid (11,601 ) (9,964 ) (2,086 ) (2,250 ) Benefit obligation, end of year $ 129,056 $ 127,733 $ 15,933 $ 16,372 Change in plan assets: Fair value of assets, beginning of year $ 104,681 $ 102,495 $ - $ - Actual return on plan assets (1,442 ) 5,828 - - Employer contribution 2,383 6,168 1,567 1,703 Contributions by plan participants 143 154 519 547 Benefits paid (11,601 ) (9,964 ) (2,086 ) (2,250 ) Fair value of assets, end of year $ 94,164 $ 104,681 $ - $ - Funded status $ (34,892 ) $ (23,052 ) $ (15,933 ) $ (16,372 ) Amounts recognized in the balance sheet consist of: Other assets - noncurrent $ 654 $ 638 $ - $ - Accrued liabilities - current (805 ) (764 ) (1,969 ) (2,040 ) Accrued retirement benefits - noncurrent (34,741 ) (22,926 ) (13,964 ) (14,332 ) Net amount recognized $ (34,892 ) $ (23,052 ) $ (15,933 ) $ (16,372 ) Amounts recognized in accumulated other comprehensive loss consist of (net of tax): Net transition obligation $ 285 $ 296 $ - $ - Actuarial net loss 45,850 38,613 3,166 3,312 Net amount recognized $ 46,135 $ 38,909 $ 3,166 $ 3,312 |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year [Table Text Block] | Pension Benefits Other Postretirement Benefits Net transition obligation $ 99 $ - Actuarial net loss 3,598 726 Net amount to be recognized $ 3,697 $ 726 |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block] | June 30 2016 2015 Projected and accumulated benefit obligation $ 127,528 $ 126,242 Fair value of plan assets 91,982 102,552 |
Schedule of Net Benefit Costs [Table Text Block] | Pension Benefits 2016 2015 2014 Service cost $ 770 $ 465 $ 536 Interest cost 4,968 4,862 5,425 Expected return on plan assets (6,874 ) (7,272 ) (6,591 ) Amortization of transition obligation 33 36 32 Amortization of prior service cost 59 - - Amortization of actuarial net loss 3,627 2,436 2,894 Net periodic benefit cost $ 2,583 $ 527 $ 2,296 Other Postretirement Benefits 2016 2015 2014 Service cost $ 28 $ 30 $ 37 Interest cost 604 579 659 Amortization of actuarial net loss 728 638 602 Net periodic benefit cost $ 1,360 $ 1,247 $ 1,298 |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | Pension Other Postretirement Benefits Net loss $ 15,514 $ 496 Prior service cost 58 - Amortization of transition asset (33 ) - Amortization of prior service cost (59 ) - Amortization of net (loss) gain (3,627 ) (728 ) Total recognized in other comprehensive income 11,853 (232 ) Net periodic benefit cost 2,583 1,360 Total recognized in net periodic benefit cost and other comprehensive income $ 14,436 $ 1,128 Pension Other Postretirement Benefits Net loss $ 9,406 $ 882 Amortization of transition asset (36 ) - Amortization of net (loss) gain (2,436 ) (638 ) Total recognized in other comprehensive income 6,934 244 Net periodic benefit cost 527 1,247 Total recognized in net periodic benefit cost and other comprehensive income $ 7,461 $ 1,491 Pension Other Postretirement Benefits Net loss $ (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 and other comprehensive income $ (6,932 ) $ 637 |
Schedule of Assumptions Used [Table Text Block] | Pension Benefits Other Postretirement Benefits Weighted average assumptions used to 2016 2015 2016 2015 Discount rate 3.35 % 4.05 % 3.27 % 3.93 % Expected return on plan assets 6.57 % 7.11 % Pension Benefits Other Postretirement Benefits Weighted average assumptions used to determine net periodic benefit costs for years ended June 30 2016 2015 2014 2016 2015 2014 Discount rate 4.05 % 4.06 % 4.35 % 3.93 % 3.76 % 3.99 % Expected return on plan assets 7.11 % 7.39 % 7.41 % |
Schedule of Plan Weighted Average Assets Allocations [Table Text Block] | Target June 30 Asset Category Allocation 2016 2015 Equity securities 65 % 63 % 62 % Debt securities 25 % 25 % 25 % Real estate 10 % 12 % 13 % 100 % 100 % 100 % |
Schedule of Allocation of Plan Assets [Table Text Block] | Total Level I Level II Level III Cash and cash equivalents $ 1,143 $ 1,143 $ - $ - Equity securities: U.S. (a) 26,046 26,046 - - International (b) 12,674 8,881 3,793 - Fixed Income (c) 20,842 - 20,842 - Annuity contracts (d) 9,031 - - 9,031 Real estate (e) 10,537 - 10,537 - Other (f) 13,891 - - 13,891 Total $ 94,164 $ 36,070 $ 35,172 $ 22,922 Total Level I Level II Level III Cash and cash equivalents $ 1,034 $ 1,034 $ - $ - Equity securities: - U.S. (a) 28,035 28,035 - - International (b) 14,819 10,649 4,170 - Fixed Income (c) 22,615 8,993 13,622 - Annuity contracts (d) 9,508 - - 9,508 Real estate (e) 12,770 - 12,770 - Other (f) 15,900 - - 15,900 Total $ 104,681 $ 48,711 $ 30,562 $ 25,408 |
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets [Table Text Block] | Annuity Contracts Other Balance - June 30, 2015 $ 9,508 $ 15,900 Actual return on plan assets: Relating to assets still held at reporting date 38 (2,009 ) Purchases, sales and settlements, net (619 ) - Transfers in and/or out of Level III 104 - Balance - June 30, 2016 $ 9,031 $ 13,891 Annuity Contracts Other Balance - June 30, 2014 $ 6,340 $ 14,689 Actual return on plan assets: Relating to assets still held at reporting date 2,978 1,211 Purchases, sales and settlements, net 190 - Balance - June 30, 2015 $ 9,508 $ 15,900 |
Schedule of Expected Benefit Payments [Table Text Block] | Pension Benefits Other Postretirement Benefits Gross Benefits Part D Reimbursement Net Benefit Payments 2017 $ 10,477 $ 2,000 $ - $ 2,000 2018 10,925 1,959 - 1,959 2019 9,675 1,559 - 1,559 2020 9,124 1,465 - 1,465 2021 8,760 1,343 - 1,343 Years 2022 - 2026 38,280 5,258 - 5,258 |
Note N - Income Taxes (Tables)
Note N - Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | 2016 2015 2014 United States $ (29,293 ) $ 5,614 $ 1,107 Foreign 3,998 10,286 6,989 $ (25,295 ) $ 15,900 $ 8,096 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 2016 2015 2014 Currently payable: Federal $ (1,683 ) $ 1,607 $ 651 State 136 518 104 Foreign 1,468 2,832 2,837 (79 ) 4,957 3,592 Deferred: Federal (10,978 ) 408 1,309 State (787 ) 5 (95 ) Foreign (438 ) (855 ) (580 ) (12,203 ) (442 ) 634 $ (12,282 ) $ 4,515 $ 4,226 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2016 2015 Deferred tax assets: Retirement plans and employee benefits $ 19,106 $ 15,157 Foreign tax credit carryforwards 8,887 - Federal tax credits 191 - State net operating loss and other state credit carryforwards 768 369 Inventory 1,775 1,789 Reserves 1,544 2,587 Foreign NOL carryforwards 3,176 3,539 Accruals 522 584 Other assets 678 568 36,647 24,593 Deferred tax liabilities: Property, plant and equipment 6,329 7,221 Intangibles 2,011 4,778 Other liabilities 140 451 8,480 12,450 Valuation Allowance (3,123 ) (3,577 ) Total net deferred tax assets $ 25,044 $ 8,566 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2016 2015 2014 U.S. federal income tax at 35% $ (8,601 ) $ 5,491 $ 2,754 Increases (reductions) in tax resulting from: Foreign tax items (2,525 ) 362 (291 ) State taxes (374 ) 32 228 Valuation allowance (1,288 ) (1,121 ) 1,551 Change in prior year estimate 473 157 139 Research and development tax credits (348 ) (337 ) (267 ) Section 199 deduction - (96 ) (109 ) Unrecognized tax benefits (21 ) 5 183 Goodwill impairment 420 - - Other, net (18 ) 22 38 $ (12,282 ) $ 4,515 $ 4,226 |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | June 30, 2016 June 30, 2015 Unrecognized tax benefits, beginning of year $ 810 $ 1,603 Additions based on tax positions related to the prior year 12 - Additions based on tax positions related to the current year 172 184 Reductions based on tax positions related to the prior year (4 ) (3 ) Subtractions due to statutes closing (179 ) (60 ) Settlements with Taxing Authorities (21 ) (914 ) Unrecognized tax benefits, end of year $ 790 $ 810 |
Note P - Restructuring of Ope38
Note P - Restructuring of Operations (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Restructuring and Related Costs [Table Text Block] | Accrued restructuring liability, June 30, 2014 $ 785 Additions 3,282 Payments and adjustments (291 ) Accrued restructuring liability, June 30, 2015 3,776 Additions 921 Payments and adjustments (3,896 ) Accrued restructuring liability, June 30, 2016 $ 801 |
Schedule II - Valuation and Q39
Schedule II - Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Valuation Allowances and Reserves [Table Text Block] | Description Balance at Beginning of Period Charged to Costs and Expenses Deductions (1) Balance at End of Period 2016: Allowance for losses on accounts receivable $ 2,183 $ 237 $ 596 $ 1,824 Deferred tax valuation allowance $ 3,577 $ 257 $ 711 $ 3,123 2015: Allowance for losses on accounts receivable $ 3,637 $ 304 $ 1,758 $ 2,183 Deferred tax valuation allowance $ 5,593 $ 805 $ 2,821 $ 3,577 2014: Allowance for losses on accounts receivable $ 2,884 $ 1,169 $ 416 $ 3,637 Deferred tax valuation allowance $ 3,724 $ 2,140 $ 271 $ 5,593 |
Note A - Significant Accounti40
Note A - Significant Accounting Policies (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2015 | Sep. 27, 2013 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Senior Notes [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.05% | 6.05% | ||||
Long-term Debt, Fair Value | $ 3,726,000 | $ 3,726,000 | ||||
Debt Instrument, Interest Rate During Period | 1.01% | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||
Fair Value Inputs, Discount Rate | 2.01% | |||||
Building and Building Improvements [Member] | Minimum [Member] | ||||||
Property, Plant and Equipment, Useful Life | 10 years | |||||
Building and Building Improvements [Member] | Maximum [Member] | ||||||
Property, Plant and Equipment, Useful Life | 40 years | |||||
Machinery and Equipment [Member] | Minimum [Member] | ||||||
Property, Plant and Equipment, Useful Life | 5 years | |||||
Machinery and Equipment [Member] | Maximum [Member] | ||||||
Property, Plant and Equipment, Useful Life | 15 years | |||||
Overstatement of Payroll Accrual [Member] | ||||||
Quantifying Misstatement in Current Year Financial Statements, Amount | $ 337,000 | |||||
Overstatement of Warranty Accrual [Member] | ||||||
Quantifying Misstatement in Current Year Financial Statements, Amount | 217,000 | |||||
Overstatement of Work in Progress Inventory [Member] | ||||||
Quantifying Misstatement in Current Year Financial Statements, Amount | (117,000) | |||||
Understatement of Deferred Tax Liabilities [Member] | ||||||
Quantifying Misstatement in Current Year Financial Statements, Amount | $ 285,000 | |||||
Understatement Of Tax Expenses [Member] | ||||||
Quantifying Misstatement in Current Year Financial Statements, Amount | $ 175,000 | |||||
Understatement Of Accrued Retirement Benefits [Member] | ||||||
Quantifying Misstatement in Current Year Financial Statements, Amount | 470,000 | |||||
Impairment of Long-Lived Assets Held-for-use | $ 0 | |||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 0 | |||||
Foreign Currency Transaction Gain (Loss), before Tax | (320,000) | $ 491,000 | 293,000 | |||
Allowance for Doubtful Accounts Receivable | 2,183,000 | $ 1,824,000 | 2,183,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.05% | |||||
Goodwill, Impairment Loss | $ 7,602,000 | |||||
Quantifying Misstatement in Current Year Financial Statements, Amount | $ 437,000 | |||||
Quantifying Misstatement in Current Year Financial Statements Amount, Net of Tax Attributable to Parent | $ 69,000 | |||||
Quantifying Misstatement In Current Year Financial Statement Increase Decrease Amount Net Earnings | $ (175,000) | |||||
Quantifying Misstatement In Current Year Financial Statement Increase (Decrease) Amount Comprehensive Income (Loss) | $ (470,000) |
Note B - Inventories (Details T
Note B - Inventories (Details Textual) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Percentage of LIFO Inventory | 33.00% | 28.00% |
Excess of Replacement or Current Costs over Stated LIFO Value | $ 26,451 | $ 26,816 |
Inventory Valuation Reserves | $ 8,823 | $ 8,167 |
Note B - Inventories (Details)
Note B - Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Finished parts | $ 45,622 | $ 56,982 |
Work in process | 8,020 | 8,292 |
Raw materials | 12,927 | 14,967 |
Total inventories | $ 66,569 | $ 80,241 |
Note C - Property, Plant and 43
Note C - Property, Plant and Equipment (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Depreciation | $ 8,682 | $ 9,922 | $ 10,180 |
Note C - Property, Plant and 44
Note C - Property, Plant and Equipmnet (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Land | $ 6,497 | $ 6,646 |
Buildings | 45,808 | 44,110 |
Machinery and equipment | 132,969 | 133,432 |
Property, plant and Equipment, Gross | 185,274 | 184,188 |
Less: accumulated depreciation | (133,609) | (127,761) |
Property, plant and Equipment, Net | $ 51,665 | $ 56,427 |
Note D - Goodwill and Other I45
Note D - Goodwill and Other Intangibles (Details Textual) - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Industrial [Member] | UNITED STATES | |||
Fair Value Inputs, Discount Rate | 13.10% | ||
Goodwill, Impairment Loss | $ 6,391,000 | ||
Industrial [Member] | Europe [Member] | |||
Goodwill, Impairment Loss | $ 0 | ||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 31.00% | ||
Marine and Propulsion Systems [Member] | Europe [Member] | |||
Goodwill, Impairment Loss | $ 1,211,000 | ||
Goodwill, Impairment Loss | $ 7,602,000 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 14 years | ||
Amortization of Intangible Assets | $ 165,000 | 239,000 | $ 477,000 |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 201,000 | $ 213,000 |
Note D - Goodwill by Reporting
Note D - Goodwill by Reporting Units (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 |
Industrial [Member] | UNITED STATES | |||
Goodwill | $ 2,550 | ||
Marine and Propulsion Systems [Member] | Europe [Member] | |||
Goodwill | 2,570 | ||
Goodwill | $ 5,120 | $ 12,789 | $ 13,463 |
Note D - Goodwill Rollforward (
Note D - Goodwill Rollforward (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Balance, Gross carrying Amount | $ 16,459,000 | $ 17,133,000 | |
Balance | (3,670,000) | ||
Balance, Net Book Value | 12,789,000 | 13,463,000 | |
Translation Adjustment, Gross carrying Amount | (42,000) | (674,000) | |
Balance, Gross carrying Amount | 16,392,000 | 16,459,000 | $ 17,133,000 |
Balance | (11,272,000) | (3,670,000) | |
Balance, Net Book Value | 5,120,000 | 12,789,000 | 13,463,000 |
Sale of business, Gross carrying Amount | (25,000) | ||
Impairment | (7,602,000) | ||
Translation adjustment, Net Book Value | $ (42,000) | $ (674,000) |
Note D - Intangible Assets (Det
Note D - Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Licensing Agreements [Member] | ||
Gross Carrying Amount | $ 3,015 | $ 3,015 |
Accumulated Amortization | (2,565) | (2,505) |
Net Book Value | 450 | 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 | 1,668 | 1,653 |
Accumulated Amortization | (275) | (194) |
Net Book Value | 1,393 | 1,459 |
Other Intangible Assets [Member] | ||
Gross Carrying Amount | 6,615 | 6,476 |
Accumulated Amortization | (5,301) | (5,278) |
Net Book Value | 120 | 4 |
Accumulated Impairment | (1,194) | (1,194) |
Gross Carrying Amount | 13,426 | 13,272 |
Accumulated Amortization | (10,186) | (10,022) |
Net Book Value | 1,963 | 1,973 |
Accumulated Impairment | $ (1,277) | $ (1,277) |
Note D - Estimated Intangibles
Note D - Estimated Intangibles (Details) $ in Thousands | Jun. 30, 2016USD ($) |
2,017 | $ 180 |
2,018 | 179 |
2,019 | 167 |
2,020 | 153 |
2,021 | 149 |
Thereafter | $ 1,135 |
Note E - Accrued Liabilities (D
Note E - Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Salaries and wages | $ 4,851 | $ 8,568 |
Retirement benefits | 3,550 | 3,773 |
Distributor rebate | 2,538 | 2,989 |
Product Warranty Accrual, Current | 2,532 | 3,310 |
Customer advances/deferred revenue | 2,372 | 2,602 |
Restructuring | 801 | 3,776 |
Other | 4,771 | 7,736 |
Total accrued liabilities | $ 21,415 | $ 32,754 |
Note F - Warranty (Details Text
Note F - Warranty (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Minimum [Member] | ||
Warranty Period | 1 year | |
Maximum [Member] | ||
Warranty Period | 2 years | |
Product Warranty Accrual, Current | $ 2,532 | $ 3,310 |
Product Warranty Accrual, Noncurrent | $ 1,075 | $ 1,935 |
Note F - Warranty (Details)
Note F - Warranty (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Reserve Balance | $ 5,245 | $ 5,968 |
Current period expense | 646 | 1,989 |
Payments or credits to customers | (2,278) | (2,332) |
Translation adjustment | (6) | (380) |
Reserve Balance | $ 3,607 | $ 5,245 |
Note G - Debt (Details Textual)
Note G - Debt (Details Textual) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | |
Line of Credit [Member] | |||
Line of Credit Facility, Remaining Borrowing Capacity | $ 1,689 | $ 1,689 | $ 1,470 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,689 | $ 1,689 | $ 1,470 |
Debt, Weighted Average Interest Rate | 5.80% | 5.80% | 5.40% |
Revolving Loan Agreement [Member] | Bank of Montreal [Member] | |||
Line of Credit Facility, Remaining Borrowing Capacity | $ 12,058 | ||
Line of Credit Facility, Current Borrowing Capacity | $ 21,571 | ||
Line of Credit Facility, Interest Rate at Period End | 2.21% | ||
Revolving Loan Agreement [Member] | Wells Fargo Bank, National Association [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||
Line of Credit Facility, Interest Rate During Period | 1.20% | ||
Number Of Recent Quarters Considered For Minimum Effective Interest Rate | 4 | 4 | |
Minimum EBITDA | $ 11,000 | ||
EBITDA Ratio | 3 | ||
Revised EBITDA | $ 3,300 | ||
Revolving Loan Agreement [Member] | |||
Long-term Debt | 10,208 | $ 10,208 | $ 8,478 |
Senior Notes [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||
Long-term Debt | 3,571 | $ 3,571 | |
Maximum Potential Sale and Purchase | $ 50,000 | $ 50,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.05% | 6.05% | |
Long-term Debt | $ 13,802 | $ 13,802 | $ 8,501 |
Debt Instrument, Interest Rate, Stated Percentage | 6.05% |
Note G - Long-term Debt (Detail
Note G - Long-term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Revolving Loan Agreement [Member] | ||
Long-term Debt | $ 8,478 | $ 10,208 |
The10-year Unsecured Senior Notes [Member] | ||
Long-term Debt | 3,571 | |
Other Long-Term Debt [Member] | ||
Long-term Debt | 23 | 23 |
Long-term Debt | 8,501 | 13,802 |
Less: current maturities | (3,571) | |
Total long-term debt | $ 8,501 | $ 10,231 |
Note G - Long-term Debt (Deta55
Note G - Long-term Debt (Details) (Parentheticals) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
The10-year Unsecured Senior Notes [Member] | ||
Maturity period of unsecured senior notes | 10 years | 10 years |
Note G - Schedule of Maturities
Note G - Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
2,017 | ||
2,018 | ||
2,019 | ||
2,020 | ||
2,021 | 8,478 | |
Thereafter | 23 | |
Total long-term debt | $ 8,501 | $ 13,802 |
Note H - Lease Commitments (Det
Note H - Lease Commitments (Details Textual) - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Operating Leases, Rent Expense, Net | $ 3,240,000 | $ 3,550,000 | $ 3,920,000 |
Note H - Future Minimum Rental
Note H - Future Minimum Rental Commitments Under Noncancellable Operating Leases (Details) $ in Thousands | Jun. 30, 2016USD ($) |
2,017 | $ 2,422 |
2,018 | 1,374 |
2,019 | 483 |
2,020 | 217 |
2,021 | 25 |
Thereafter | 44 |
Total | $ 4,565 |
Note I - Shareholders' Equity59
Note I - Shareholders' Equity (Details Textual) | Jun. 30, 2008$ / shares$ / itemshares | Jun. 30, 2016$ / sharesshares | Jun. 30, 2015$ / sharesshares | Jun. 30, 2014$ / sharesshares |
Treasury Stock [Member] | ||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 83,377 | 49,314 | 51,921 | |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 315,000 | 315,000 | 315,000 | |
Number of Preferred Stock Purchase Rights Per Outstanding Share of Common Stock | 1 | |||
Preferred Stock, Shares Issued | 0 | 0 | ||
Common Stock, Shares, Outstanding | 11,350,174 | 11,267,347 | 11,261,873 | |
Treasury Stock, Shares | 1,749,294 | 1,832,121 | 1,837,595 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 1,750 | 46,240 | ||
Common Stock, Dividends, Per Share, Cash Paid | $ / shares | $ 0.18 | $ 0.36 | $ 0.36 | |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 0.25 | |||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 125 | |||
Number of Business Days Following Public Announcement to Exercise Right | 10 days | |||
Beneficial Ownership of Company's Common Stock | 20.00% | |||
Beneficial Ownership of Company's Common Stock for ExistingHolder | 30.00% | |||
Beneficial Ownership of Company's Common Stock as Result of Transfer | 20.00% | |||
Number of Business Days Following Commencement of Tender Offer | 10 days | |||
Beneficial Ownership of Common Stock Under Second Condition Minimum | 20.00% | |||
Beneficial Ownership of Common Stock for Existing Holder Under Second Condition | 30.00% | |||
Multiple of Exercise Price | 2 | |||
Redemption Price of Right | $ / item | 0.01 | |||
Preferred Stock, Shares Authorized | 200,000 | 200,000 | ||
Preferred Stock, Capital Shares Reserved for Future Issuance | 150,000 |
Note I - Schedule of Accumulate
Note I - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Translation adjustments | $ 5,158 | $ 6,740 |
Benefit plan adjustments, net of income taxes of $27,750 and $24,411 respectively | (49,301) | (42,221) |
Accumulated other comprehensive loss | $ (44,143) | $ (35,481) |
Note I - Schedule of Accumula61
Note I - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Tax effect on benefit plan adjustments | $ 27,750 | $ 24,411 |
Note I - Accumulated Other Comp
Note I - Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Translation Adjustment [Member] | |||
Balance | $ 6,740 | $ 20,779 | $ 16,949 |
Other comprehensive loss before reclassifications | (1,582) | (14,039) | 3,830 |
Amounts reclassified from accumulated other comprehensive income | |||
Net current period other comprehensive income | (1,582) | (14,039) | 3,830 |
Balance | 5,158 | 6,740 | 20,779 |
Benefit Plan Adjustment [Member] | |||
Balance | (42,221) | (36,722) | (42,848) |
Other comprehensive loss before reclassifications | (10,101) | (7,518) | 3,950 |
Amounts reclassified from accumulated other comprehensive income | 3,021 | 2,019 | 2,176 |
Net current period other comprehensive income | (7,080) | (5,499) | 6,126 |
Balance | (49,301) | (42,221) | $ (36,722) |
Balance | (35,481) | ||
Balance | $ (44,143) | $ (35,481) |
Note I - Reconciliation for the
Note I - Reconciliation for the Reclassifications Out of Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Benefit Plan Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Actuarial losses | $ (4,355) | $ (3,074) | $ (3,496) |
Transition asset and prior service benefit | (92) | (36) | (31) |
Total before tax benefit | (4,447) | (3,110) | (3,527) |
Income taxes | 1,426 | 1,091 | 1,351 |
Net (loss) earnings | (3,021) | (2,019) | (2,176) |
Income taxes | (12,282) | 4,515 | 4,226 |
Net (loss) earnings | $ (13,013) | $ 11,385 | $ 3,870 |
Note J - Business Segments an64
Note J - Business Segments and Foreign Operations (Details Textual) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Customer 1 [Member] | |||
Concentration Risk, Percentage | 12.00% | ||
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Customer 2 [Member] | |||
Concentration Risk, Percentage | 12.00% | ||
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | |||
Number of Customers | 2 | 1 | 1 |
Concentration Risk, Percentage | 11.00% | 11.00% | |
Number of Reportable Segments | 2 |
Note J - Net Sales by Product G
Note J - Net Sales by Product Group (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Industrial [Member] | |||
Net Sales | $ 32,437 | $ 42,078 | $ 41,188 |
Land Based Transmissions [Member] | |||
Net Sales | 29,028 | 76,450 | 67,055 |
Marine and Propulsion Systems [Member] | |||
Net Sales | 98,925 | 141,137 | 149,432 |
Other [Member] | |||
Net Sales | 5,892 | 6,125 | 6,234 |
Net Sales | $ 166,282 | $ 265,790 | $ 263,909 |
Note J - Segment Information (D
Note J - Segment Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Operating Segments [Member] | Manufacturing Segment [Member] | |||
Net Sales | $ 140,965 | $ 232,545 | $ 219,489 |
Interest income | 117 | 171 | 311 |
Interest expense | 397 | 946 | 2,565 |
Income taxes | (2,554) | 7,125 | 6,233 |
Depreciation and amortization | 7,536 | 8,103 | 8,562 |
Net (loss) earnings attributable to Twin Disc | (12,694) | 12,861 | 6,634 |
Assets | 221,590 | 246,374 | 246,771 |
Expenditures for segment assets | 3,850 | 7,335 | 6,429 |
Operating Segments [Member] | Distribution Segment [Member] | |||
Net Sales | 74,199 | 120,594 | 138,416 |
Interest income | 25 | 33 | 22 |
Interest expense | 1 | 45 | |
Income taxes | 108 | 1,646 | 1,432 |
Depreciation and amortization | 471 | 502 | 553 |
Net (loss) earnings attributable to Twin Disc | 762 | 6,350 | 6,455 |
Assets | 68,939 | 62,134 | 65,115 |
Expenditures for segment assets | 188 | 1,271 | 315 |
Operating Segments [Member] | |||
Net Sales | 215,164 | 353,139 | 357,905 |
Interest income | 142 | 204 | 333 |
Interest expense | 398 | 946 | 2,610 |
Income taxes | (2,446) | 8,771 | 7,665 |
Depreciation and amortization | 8,007 | 8,605 | 9,115 |
Net (loss) earnings attributable to Twin Disc | (11,932) | 19,211 | 13,089 |
Assets | 290,529 | 308,508 | 311,886 |
Expenditures for segment assets | 4,038 | 8,606 | 6,744 |
Intra-segment Sales [Member] | Manufacturing Segment [Member] | |||
Net Sales | 11,476 | 19,541 | 18,231 |
Intra-segment Sales [Member] | Distribution Segment [Member] | |||
Net Sales | 7,854 | 9,584 | 13,253 |
Intra-segment Sales [Member] | |||
Net Sales | 19,330 | 29,125 | 31,484 |
Inter-segment Sales [Member] | Manufacturing Segment [Member] | |||
Net Sales | 26,883 | 54,947 | 59,728 |
Inter-segment Sales [Member] | Distribution Segment [Member] | |||
Net Sales | 2,669 | 3,277 | 2,784 |
Inter-segment Sales [Member] | |||
Net Sales | 29,552 | 58,224 | 62,512 |
Net Sales | 166,282 | 265,790 | 263,909 |
Interest income | 147 | 124 | 121 |
Interest expense | 426 | 606 | 936 |
Income taxes | (12,282) | 4,515 | 4,226 |
Depreciation and amortization | 8,847 | 10,161 | 10,657 |
Net (loss) earnings attributable to Twin Disc | (13,104) | 11,173 | 3,644 |
Assets | 213,922 | 249,862 | 266,985 |
Expenditures for segment assets | $ 4,214 | $ 9,049 | $ 7,245 |
Note J - Reconciliation of Repo
Note J - Reconciliation of Reportable Segment Net Sales and Net Earnings to Consolidated Totals (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Operating Segments [Member] | |||
Net Sales | $ 215,164 | $ 353,139 | $ 357,905 |
Net (loss) earnings attributable to Twin Disc | (11,932) | 19,211 | 13,089 |
Intersegment Eliminations [Member] | |||
Net Sales | (48,882) | (87,349) | (93,996) |
Corporate, Non-Segment [Member] | |||
Net (loss) earnings attributable to Twin Disc | (1,172) | (8,038) | (9,445) |
Net Sales | 166,282 | 265,790 | 263,909 |
Net (loss) earnings attributable to Twin Disc | $ (13,104) | $ 11,173 | $ 3,644 |
Note J - Reconciliation of Re68
Note J - Reconciliation of Reportable Segments Other Significant Reconciling Items to Consolidated Totals (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Operating Segments [Member] | |||
Interest income | $ 142 | $ 204 | $ 333 |
Interest expense | 398 | 946 | 2,610 |
Income taxes | (2,446) | 8,771 | 7,665 |
Depreciation and amortization | 8,007 | 8,605 | 9,115 |
Assets | 290,529 | 308,508 | 311,886 |
Expenditures for segment assets | 4,038 | 8,606 | 6,744 |
Adjustments [Member] | |||
Interest income | 5 | (80) | (212) |
Interest expense | 28 | (340) | (1,674) |
Income taxes | (9,836) | (4,256) | (3,439) |
Depreciation and amortization | 840 | 1,556 | 1,542 |
Assets | (76,607) | (58,646) | (44,901) |
Expenditures for segment assets | 176 | 443 | 501 |
Interest income | 147 | 124 | 121 |
Interest expense | 426 | 606 | 936 |
Income taxes | (12,282) | 4,515 | 4,226 |
Depreciation and amortization | 8,847 | 10,161 | 10,657 |
Assets | 213,922 | 249,862 | 266,985 |
Expenditures for segment assets | $ 4,214 | $ 9,049 | $ 7,245 |
Note J - Geographic Information
Note J - Geographic Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Reportable Geographical Components [Member] | UNITED STATES | |||
Net Sales | $ 77,147 | $ 131,198 | $ 108,380 |
Long-lived Assets | 37,319 | 40,822 | |
Reportable Geographical Components [Member] | ITALY | |||
Net Sales | 13,294 | 14,457 | 17,396 |
Long-lived Assets | 1,638 | 2,376 | |
Reportable Geographical Components [Member] | BELGIUM | |||
Long-lived Assets | 7,154 | 6,709 | |
Reportable Geographical Components [Member] | AUSTRALIA | |||
Net Sales | 9,943 | 10,454 | 9,955 |
Reportable Geographical Components [Member] | SWITZERLAND | |||
Long-lived Assets | 7,145 | 7,686 | |
Reportable Geographical Components [Member] | CHINA | |||
Net Sales | 9,019 | 19,712 | 33,830 |
Reportable Geographical Components [Member] | CANADA | |||
Net Sales | 8,699 | 13,661 | 9,277 |
Reportable Geographical Components [Member] | Other Countries [Member] | |||
Net Sales | 48,180 | 76,308 | 85,071 |
Long-lived Assets | 2,477 | 2,586 | |
Net Sales | 166,282 | 265,790 | $ 263,909 |
Long-lived Assets | $ 55,733 | $ 60,179 |
Note K - Stock-based Compensa70
Note K - Stock-based Compensation (Details Textual) - USD ($) | 9 Months Ended | 12 Months Ended | |||
Mar. 25, 2016 | Mar. 27, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Stock Incentive Plan for Non-employee Directors 2010 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 250,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 0 | ||||
Long-term Incentive Compensation Plan 2010 [Member] | Incentive Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | ||||
Percentage of Combined Voting Power of Stock Owned by Optionee | 10.00% | ||||
Percentage of Grant Date Fair Market Value Specified as Price of Incentive Stock Options Based on Condition, Minimum | 110.00% | ||||
Percentage of Stock Owned by Shareholder to Which No Options Were Granted | 10.00% | ||||
Long-term Incentive Compensation Plan 2010 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 650,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 0 | ||||
Stock Incentive Plan for Non-employee Directors 2004 [Member] | Non-qualified Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 16,800 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 0 | 0 | 0 | ||
Performance Stock Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 90,699 | 14,101 | 17,038 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 60,466 | 16,261 | 17,312 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | 3 years | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 72,217 | 25,949 | 44,712 | ||
Allocated Share-based Compensation Expense | $ 54,000 | $ 0 | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 17.85 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 1,235,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 0 | $ 0 | |||
Performance Stock Unit Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 13,621 | 22,205 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | 15,861 | 43,154 | ||
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, Equity Instruments Other than Options, Nonvested, Number | 11,351 | 29,855 | 41,160 | ||
Allocated Share-based Compensation Expense | $ 0 | $ 0 | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 30.16 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 0 | $ 0 | $ 0 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 118,000 | ||||
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 | 95,738 | 59,494 | 51,004 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 142,971 | 94,183 | 116,297 | ||
Allocated Share-based Compensation Expense | $ 1,241,000 | $ 696,000 | $ 1,184,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 1,109,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 1,750 | 46,240 | 3,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 681,000 | 993,000 | 3,053,000 | ||
Non-qualified Stock Options [Member] | Exercise Price Range ($10.01 - $27.55) [Member] | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 10.01 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 27.55 | ||||
Non-qualified Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 16,800 | 19,200 | |||
Stock Options [Member] | |||||
Allocated Share-based Compensation Expense | $ 0 | $ 0 | $ 0 | ||
Percentage of Options Vested on Adoption of Statement | 100.00% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 4,000 | $ 55,000 | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 1,750 | 46,240 |
Note K - Shares Available for F
Note K - Shares Available for Future Options (Details) - Stock Options [Member] - shares | Jun. 30, 2016 | Jun. 30, 2015 |
Long-term Incentive Compensation Plan 2010 [Member] | ||
Shares Available for Grant (in shares) | 333,054 | 447,730 |
Stock Incentive Plan for Non-employee Directors 2010 [Member] | ||
Shares Available for Grant (in shares) | 144,656 | 171,986 |
Note K - Stock Option Transacti
Note K - Stock Option Transactions (Details) - Non-qualified Stock Options [Member] | 12 Months Ended |
Jun. 30, 2016USD ($)$ / sharesshares | |
Options outstanding (in shares) | 19,200 |
Options outstanding, weighted average price (in dollars per share) | $ / shares | $ 15.96 |
Options outstanding, aggregate intrinsic value | $ | |
Options Granted (in shares) | |
Options Canceled/expired (in shares) | (1,200) |
Canceled/expired, weighted average price (in dollars per share) | $ / shares | $ 10.11 |
Options Exercised (in shares) | (1,200) |
Exercised, weighted average price (in dollars per share) | $ / shares | $ 10.11 |
Options outstanding (in shares) | 16,800 |
Options outstanding, weighted average price (in dollars per share) | $ / shares | $ 16.80 |
Options outstanding, weighted average remaining contractual life | 2 years 233 days |
Options outstanding, aggregate intrinsic value | $ | $ 2,300 |
Note L - Engineering and Deve73
Note L - Engineering and Development Costs (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Research and Development Expense | $ 1,805 | $ 2,288 | $ 3,028 |
Engineering and Development Costs | $ 9,481 | $ 11,091 | $ 10,900 |
Note M - Pension and Other Po74
Note M - Pension and Other Postretirement Benefit Plans (Details Textual) - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Common Stock Held by U.S Pension Plans [Member] | |||
Defined Benefit Plan, Number of Shares of Equity Securities Issued by Employer and Related Parties Included in Plan Assets | 98,211 | 98,211 | |
Defined Benefit Plan, Amount of Employer and Related Party Securities Included in Plan Assets | $ 1,054,800 | $ 1,830,700 | |
Defined Benefit Plan, Actual Plan Asset Allocations | 1.10% | 1.80% | |
Pension Plan [Member] | |||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $ 1,467,000 | ||
Defined Benefit Plan, Cost of Premium for Health Coverage Plan, Percentage | 100.00% | ||
Defined Benefit Plan, Accumulated Benefit Obligation | $ 129,056,000 | $ 127,733,000 | |
Defined Benefit Plan, Weighted Average Healthcare Cost, Trend Rate | 7.50% | ||
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 5.00% | ||
Defined Benefit Plan, Percentage of Increase in Assumed HealthCare Cost Trend Rate | 1.00% | ||
Defined Benefit Plan, Effect of One Percentage Point Increase on Accumulated Postretirement Benefit Obligation | $ 320,000 | ||
Defined Benefit Plan, Effect of One Percentage Point Increase on Service and Interest Cost Components | $ 13,000 | ||
Defined Benefit Plan, Percentage of Decrease in Assumed Healthcare Cost Trend Rate | 1.00% | ||
Defined Benefit Plan, Effect of One Percentage Point Decrease on Accumulated Postretirement Benefit Obligation | $ 313,000 | ||
Defined Benefit Plan, Effect of One Percentage Point Decrease on Service and Interest Cost Components | $ 13,000 | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 100.00% | 100.00% | |
Defined Benefit Plan, Expected Long-term Return on Plan Assets | 7.00% | ||
Defined Contribution Plan, Cost Recognized | $ 2,058,000 | $ 2,526,000 | $ 2,218,000 |
Note M - Net Funded Status of P
Note M - Net Funded Status of Pension and Postretirement Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Pension Plan [Member] | |||
Benefit obligation, beginning of year | $ 127,733 | $ 123,832 | |
Service cost | 770 | 465 | $ 536 |
Interest cost | 4,968 | 4,862 | 5,425 |
Actuarial loss (gain) | 7,043 | 8,384 | |
Contributions by plan participants | 143 | 154 | |
Benefits paid | (11,601) | (9,964) | |
Benefit obligation, end of year | 129,056 | 127,733 | 123,832 |
Fair value of assets, beginning of year | 104,681 | 102,495 | |
Actual return on plan assets | (1,442) | 5,828 | |
Employer contribution | 2,383 | 6,168 | |
Contributions by plan participants | 143 | 154 | |
Benefits paid | (11,601) | (9,964) | |
Fair value of assets, end of year | 94,164 | 104,681 | 102,495 |
Funded status | (34,892) | (23,052) | |
Amounts recognized in the balance sheet consist of: | |||
Other assets - noncurrent | 654 | 638 | |
Accrued liabilities - current | (805) | (764) | |
Accrued retirement benefits - noncurrent | (34,741) | (22,926) | |
Net amount recognized | (34,892) | (23,052) | |
Amounts recognized in accumulated other comprehensive loss consist of (net of tax): | |||
Net transition obligation | 285 | 296 | |
Actuarial net loss | 45,850 | 38,613 | |
Net amount recognized | 46,135 | 38,909 | |
Other Postretirement Benefit Plan [Member] | |||
Benefit obligation, beginning of year | 16,372 | 16,584 | |
Service cost | 28 | 30 | 37 |
Interest cost | 604 | 579 | 659 |
Actuarial loss (gain) | 496 | 882 | |
Contributions by plan participants | 519 | 547 | |
Benefits paid | (2,086) | (2,250) | |
Benefit obligation, end of year | 15,933 | 16,372 | 16,584 |
Fair value of assets, beginning of year | |||
Actual return on plan assets | |||
Employer contribution | 1,567 | 1,703 | |
Contributions by plan participants | 519 | 547 | |
Benefits paid | (2,086) | (2,250) | |
Fair value of assets, end of year | |||
Funded status | (15,933) | (16,372) | |
Amounts recognized in the balance sheet consist of: | |||
Other assets - noncurrent | |||
Accrued liabilities - current | (1,969) | (2,040) | |
Accrued retirement benefits - noncurrent | (13,964) | (14,332) | |
Net amount recognized | (15,933) | (16,372) | |
Amounts recognized in accumulated other comprehensive loss consist of (net of tax): | |||
Net transition obligation | |||
Actuarial net loss | 3,166 | 3,312 | |
Net amount recognized | 3,166 | 3,312 | |
Fair value of assets, beginning of year | 104,681 | ||
Fair value of assets, end of year | 94,164 | 104,681 | |
Net amount recognized | $ 49,301 | $ 42,221 |
Note M - Amounts in Accumulated
Note M - Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized Over Next Fiscal Year (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Pension Plan [Member] | |
Net transition obligation | $ 99 |
Actuarial net loss | 3,598 |
Net amount to be recognized | 3,697 |
Other Postretirement Benefit Plan [Member] | |
Net transition obligation | |
Actuarial net loss | 726 |
Net amount to be recognized | $ 726 |
Note M - Information for Pensio
Note M - Information for Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Projected and accumulated benefit obligation | $ 127,528 | $ 126,242 |
Fair value of plan assets | $ 91,982 | $ 102,552 |
Note M - Components of Net Peri
Note M - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Pension Plan [Member] | |||
Service cost | $ 770 | $ 465 | $ 536 |
Interest cost | 4,968 | 4,862 | 5,425 |
Expected return on plan assets | (6,874) | (7,272) | (6,591) |
Amortization of transition obligation | 33 | 36 | 32 |
Amortization of prior service cost | 59 | ||
Amortization of actuarial net loss | 3,627 | 2,436 | 2,894 |
Net periodic benefit cost | 2,583 | 527 | 2,296 |
Other Postretirement Benefit Plan [Member] | |||
Service cost | 28 | 30 | 37 |
Interest cost | 604 | 579 | 659 |
Amortization of actuarial net loss | 728 | 638 | 602 |
Net periodic benefit cost | $ 1,360 | $ 1,247 | $ 1,298 |
Note M - Changes in Plan Assets
Note M - Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Pension Plan [Member] | |||
Net loss | $ 15,514 | $ 9,406 | $ (6,303) |
Prior service cost | 58 | ||
Amortization of transition asset | (33) | (36) | (38) |
Amortization of prior service cost | (59) | 7 | |
Amortization of net (loss) gain | (3,627) | (2,436) | (2,894) |
Total recognized in other comprehensive income | 11,853 | 6,934 | (9,228) |
Net periodic benefit cost | 2,583 | 527 | 2,296 |
Total recognized in net periodic benefit cost and other comprehensive income | 14,436 | 7,461 | (6,932) |
Other Postretirement Benefit Plan [Member] | |||
Net loss | 496 | 882 | (59) |
Prior service cost | |||
Amortization of transition asset | |||
Amortization of prior service cost | |||
Amortization of net (loss) gain | (728) | (638) | (602) |
Total recognized in other comprehensive income | (232) | 244 | (661) |
Net periodic benefit cost | 1,360 | 1,247 | 1,298 |
Total recognized in net periodic benefit cost and other comprehensive income | $ 1,128 | $ 1,491 | $ 637 |
Note M - Schedule of Assumption
Note M - Schedule of Assumptions (Details) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Pension Plan [Member] | |||
Discount rate | 3.35% | 4.05% | |
Expected return on plan assets | 6.57% | 7.11% | |
Discount rate | 4.05% | 4.06% | 4.35% |
Expected return on plan assets | 7.11% | 7.39% | 7.41% |
Other Postretirement Benefit Plan [Member] | |||
Discount rate | 3.27% | 3.93% | |
Expected return on plan assets | |||
Discount rate | 3.93% | 3.76% | 3.99% |
Expected return on plan assets |
Note M - Pension Plan Weighted-
Note M - Pension Plan Weighted-Average Asset Allocations (Details) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Equity Securities [Member] | ||
Target Allocation | 65.00% | |
Actual Allocation | 63.00% | 62.00% |
Debt Securities [Member] | ||
Target Allocation | 25.00% | |
Actual Allocation | 25.00% | 25.00% |
Real Estate [Member] | ||
Target Allocation | 10.00% | |
Actual Allocation | 12.00% | 13.00% |
Target Allocation | 100.00% | |
Actual Allocation | 100.00% | 100.00% |
Note M - Plan Assets Using Fair
Note M - Plan Assets Using Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |||
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | ||||||
Plan Assets | $ 1,143 | $ 1,034 | ||||
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||
Plan Assets | ||||||
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||
Plan Assets | ||||||
Cash and Cash Equivalents [Member] | ||||||
Plan Assets | 1,143 | 1,034 | ||||
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | UNITED STATES | ||||||
Plan Assets | [1] | 26,046 | 28,035 | |||
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Non-US [Member] | ||||||
Plan Assets | [2] | 8,881 | 10,649 | |||
Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | UNITED STATES | ||||||
Plan Assets | [1] | |||||
Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Non-US [Member] | ||||||
Plan Assets | [2] | 3,793 | 4,170 | |||
Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | UNITED STATES | ||||||
Plan Assets | [1] | |||||
Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Non-US [Member] | ||||||
Plan Assets | [2] | |||||
Equity Securities [Member] | UNITED STATES | ||||||
Plan Assets | [1] | 26,046 | 28,035 | |||
Equity Securities [Member] | Non-US [Member] | ||||||
Plan Assets | [2] | 12,674 | 14,819 | |||
Fixed Income Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||||||
Plan Assets | [3] | 8,993 | ||||
Fixed Income Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||
Plan Assets | [3] | 20,842 | 13,622 | |||
Fixed Income Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||
Plan Assets | [3] | |||||
Fixed Income Securities [Member] | ||||||
Plan Assets | [3] | 20,842 | 22,615 | |||
Annuity Contracts [Member] | Fair Value, Inputs, Level 1 [Member] | ||||||
Plan Assets | [4] | |||||
Annuity Contracts [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||
Plan Assets | [4] | |||||
Annuity Contracts [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||
Plan Assets | 9,031 | [4] | 9,508 | [4] | $ 6,340 | |
Annuity Contracts [Member] | ||||||
Plan Assets | [4] | 9,031 | 9,508 | |||
Real Estate [Member] | Fair Value, Inputs, Level 1 [Member] | ||||||
Plan Assets | [5] | |||||
Real Estate [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||
Plan Assets | [5] | 10,537 | 12,770 | |||
Real Estate [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||
Plan Assets | [5] | |||||
Real Estate [Member] | ||||||
Plan Assets | [5] | 10,537 | 12,770 | |||
Other [Member] | Fair Value, Inputs, Level 1 [Member] | ||||||
Plan Assets | [6] | |||||
Other [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||
Plan Assets | [6] | |||||
Other [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||
Plan Assets | 13,891 | [6] | 15,900 | [6] | $ 14,689 | |
Other [Member] | ||||||
Plan Assets | [6] | 13,891 | 15,900 | |||
Fair Value, Inputs, Level 1 [Member] | ||||||
Plan Assets | 36,070 | 48,711 | ||||
Fair Value, Inputs, Level 2 [Member] | ||||||
Plan Assets | 35,172 | 30,562 | ||||
Fair Value, Inputs, Level 3 [Member] | ||||||
Plan Assets | 22,922 | 25,408 | ||||
Plan Assets | $ 94,164 | $ 104,681 | ||||
[1] | 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. | |||||
[2] | 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 | |||||
[3] | 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. | |||||
[4] | 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. | |||||
[5] | 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 its holding in the funds. | |||||
[6] | 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. |
Note M - Schedule of Effect of
Note M - Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | |||
Fair Value, Inputs, Level 3 [Member] | Annuity Contracts [Member] | ||||
Fair value of assets, beginning of year | $ 9,508 | [1] | $ 6,340 | |
Actual return on plan assets: | ||||
Relating to assets still held at reporting date | 38 | 2,978 | ||
Purchases, sales and settlements, net | (619) | 190 | ||
Transfers in and/or out of Level III | 104 | |||
Fair value of assets, end of year | [1] | 9,031 | 9,508 | |
Fair value of assets, beginning of year | 9,508 | [1] | 6,340 | |
Fair Value, Inputs, Level 3 [Member] | Other [Member] | ||||
Fair value of assets, beginning of year | 15,900 | [2] | 14,689 | |
Actual return on plan assets: | ||||
Relating to assets still held at reporting date | (2,009) | 1,211 | ||
Purchases, sales and settlements, net | ||||
Transfers in and/or out of Level III | ||||
Fair value of assets, end of year | [2] | 13,891 | 15,900 | |
Fair value of assets, beginning of year | 15,900 | [2] | 14,689 | |
Fair Value, Inputs, Level 3 [Member] | ||||
Fair value of assets, beginning of year | 25,408 | |||
Actual return on plan assets: | ||||
Fair value of assets, end of year | 22,922 | 25,408 | ||
Fair value of assets, beginning of year | 25,408 | |||
Annuity Contracts [Member] | ||||
Fair value of assets, beginning of year | [1] | 9,508 | ||
Actual return on plan assets: | ||||
Fair value of assets, end of year | [1] | 9,031 | 9,508 | |
Fair value of assets, beginning of year | [1] | 9,508 | ||
Other [Member] | ||||
Fair value of assets, beginning of year | [2] | 15,900 | ||
Actual return on plan assets: | ||||
Fair value of assets, end of year | [2] | 13,891 | 15,900 | |
Fair value of assets, beginning of year | [2] | 15,900 | ||
Fair value of assets, beginning of year | 104,681 | |||
Fair value of assets, end of year | 94,164 | $ 104,681 | ||
Fair value of assets, beginning of year | $ 104,681 | |||
[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] | 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. |
Note M - Defined Benefit Plan E
Note M - Defined Benefit Plan Estimated Future Benefit Payments (Details) $ in Thousands | Jun. 30, 2016USD ($) |
Pension Plan [Member] | |
2017 - Pension Benefits | $ 10,477 |
2018 - Pension Benefits | 10,925 |
2019 - Pension Benefits | 9,675 |
2020 - Pension Benefits | 9,124 |
2021 - Pension Benefits | 8,760 |
Years 2022 - 2026 - Pension Benefits | 38,280 |
Other Postretirement Benefit Plan [Member] | |
2017 - Pension Benefits | 2,000 |
2017 - Other Postretirement Benefits, Gross Benefits | 2,000 |
2017 - Other Postretirement Benefits, Reimbursements | |
2018 - Pension Benefits | 1,959 |
2018 - Other Postretirement Benefits, Gross Benefits | 1,959 |
2018 - Other Postretirement Benefits, Reimbursements | |
2019 - Pension Benefits | 1,559 |
2019 - Other Postretirement Benefits, Gross Benefits | 1,559 |
2019 - Other Postretirement Benefits, Reimbursements | |
2020 - Pension Benefits | 1,465 |
2020 - Other Postretirement Benefits, Gross Benefits | 1,465 |
2020 - Other Postretirement Benefits, Reimbursements | |
2021 - Pension Benefits | 1,343 |
2021 - Other Postretirement Benefits, Gross Benefits | 1,343 |
2021 - Other Postretirement Benefits, Reimbursements | |
Years 2022 - 2026 - Pension Benefits | 5,258 |
Years 2022 - 2026 - Other Postretirement Benefits, Gross Benefits | 5,258 |
Years 2022 - 2026 - Other Postretirement Benefits, Reimbursements |
Note N - Income Taxes (Details
Note N - Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Accrued Liabilities, Current [Member] | ||
Deferred Tax Liabilities, Net, Current | $ 82 | |
Foreign Tax Authority [Member] | Earliest Tax Year [Member] | ||
Open Tax Year | 2,012 | |
Foreign Tax Authority [Member] | Latest Tax Year [Member] | ||
Open Tax Year | 2,016 | |
Domestic Tax Authority [Member] | Earliest Tax Year [Member] | ||
Open Tax Year | 2,013 | |
Deferred Tax Assets, Net of Valuation Allowance, Current | 4,863 | |
Deferred Tax Assets, Valuation Allowance | 3,123 | 3,577 |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 454 | |
Undistributed Earnings of Foreign Subsidiaries | 3,039 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 790 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 61 | $ 62 |
Note N - Domestic and Foreign E
Note N - Domestic and Foreign Earnings Before Income Taxes and Minority Interest (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
United States | $ (29,293) | $ 5,614 | $ 1,107 |
Foreign | 3,998 | 10,286 | 6,989 |
(Loss) earnings before income taxes and noncontrolling interest | $ (25,295) | $ 15,900 | $ 8,096 |
Note N - Provision (Benefit) fo
Note N - Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Currently payable: | |||
Federal | $ (1,683) | $ 1,607 | $ 651 |
State | 136 | 518 | 104 |
Foreign | 1,468 | 2,832 | 2,837 |
Current | (79) | 4,957 | 3,592 |
Deferred: | |||
Federal | (10,978) | 408 | 1,309 |
State | (787) | 5 | (95) |
Foreign | (438) | (855) | (580) |
Deferred | (12,203) | (442) | 634 |
Income tax (benefit) expense | $ (12,282) | $ 4,515 | $ 4,226 |
Note N - Components of Net Defe
Note N - Components of Net Deferred Tax Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Deferred tax assets: | ||
Retirement plans and employee benefits | $ 19,106 | $ 15,157 |
Foreign tax credit carryforwards | 8,887 | |
Federal tax credits | 191 | |
State net operating loss and other state credit carryforwards | 768 | 369 |
Inventory | 1,775 | 1,789 |
Reserves | 1,544 | 2,587 |
Foreign NOL carryforwards | 3,176 | 3,539 |
Accruals | 522 | 584 |
Other assets | 678 | 568 |
Gross deferred tax assets | 36,647 | 24,593 |
Deferred tax liabilities: | ||
Property, plant and equipment | 6,329 | 7,221 |
Intangibles | 2,011 | 4,778 |
Other liabilities | 140 | 451 |
Gross deferred tax liabilities | 8,480 | 12,450 |
Valuation Allowance | (3,123) | (3,577) |
Total net deferred tax assets | $ 25,044 | $ 8,566 |
Note N - Reconciliation of U.S.
Note N - Reconciliation of U.S. Federal Income Taxes to Actual Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
U.S. federal income tax at 35% | $ (8,601) | $ 5,491 | $ 2,754 |
Increases (reductions) in tax resulting from: | |||
Foreign tax items | (2,525) | 362 | (291) |
State taxes | (374) | 32 | 228 |
Valuation allowance | (1,288) | (1,121) | 1,551 |
Change in prior year estimate | 473 | 157 | 139 |
Research and development tax credits | (348) | (337) | (267) |
Section 199 deduction | (96) | (109) | |
Unrecognized tax benefits | (21) | 5 | 183 |
Goodwill impairment | 420 | ||
Other, net | (18) | 22 | 38 |
Income tax (benefit) expense | $ (12,282) | $ 4,515 | $ 4,226 |
Note N - Reconciliation of U.90
Note N - Reconciliation of U.S. Federal Income Taxes to Actual Income Taxes (Details) (Parentheticals) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Federal Income Tax | 35.00% | 35.00% | 35.00% |
Note N - Reconciliation of Unre
Note N - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Unrecognized tax benefits, beginning of year | $ 810 | $ 1,603 |
Additions based on tax positions related to the prior year | 12 | |
Additions based on tax positions related to the current year | 172 | 184 |
Reductions based on tax positions related to the prior year | (4) | (3) |
Subtractions due to statutes closing | (179) | (60) |
Settlements with Taxing Authorities | (21) | (914) |
Unrecognized tax benefits, end of year | $ 790 | $ 810 |
Note P - Restructuring of Ope92
Note P - Restructuring of Operations (Details Textual) - USD ($) $ in Thousands | Sep. 25, 2015 | Sep. 25, 2015 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 |
Restructuring in Response to Global Market Conditions [Member] | ||||||
Restructuring Charges | $ 921 | |||||
North American Cost Reduction Plan [Member] | ||||||
Restructuring Charges | $ 3,282 | |||||
Workforce Reduction Plan in Belgian [Member] | ||||||
Restructuring Charges | $ 961 | |||||
Disposal Group, Distribution Rights and Certain Assets [Member] | ||||||
Proceeds from Sale of Productive Assets | $ 4,100 | |||||
Disposal Group, Distribution Rights [Member] | ||||||
Proceeds from Sale of Productive Assets | 600 | |||||
Disposal Group, Certain Assets [Member] | ||||||
Proceeds from Sale of Productive Assets | $ 3,500 | |||||
Restructuring Charges | 921 | $ 3,282 | 961 | |||
Other Operating Income | $ 445 | $ 445 |
Note P - Roll-forward of Restru
Note P - Roll-forward of Restructuring Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Business Restructuring Reserves [Member] | |||
Restructuring Charges | $ 921 | $ 3,282 | |
Accrued restructuring liability | 3,776 | 785 | |
Restructuring Charges | 921 | 3,282 | $ 961 |
Payments and adjustments | (3,896) | (291) | |
Accrued restructuring liability | $ 801 | $ 3,776 | $ 785 |
Schedule II - Valuation and Q94
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Allowance for Trade Receivables [Member] | ||||
Balance at Beginning of Period | $ 2,183 | $ 3,637 | $ 2,884 | |
Charged to Costs and Expenses | 237 | 304 | 1,169 | |
Deductions | [1] | 596 | 1,758 | 416 |
Balance at End of Period | 1,824 | 2,183 | 3,637 | |
Valuation Allowance of Deferred Tax Assets [Member] | ||||
Balance at Beginning of Period | 3,577 | 5,593 | 3,724 | |
Charged to Costs and Expenses | 257 | 805 | 2,140 | |
Deductions | [1] | 711 | 2,821 | 271 |
Balance at End of Period | $ 3,123 | $ 3,577 | $ 5,593 | |
[1] | Activity primarily represents amounts written-off during the year, along with other adjustments (primarily foreign currency translation adjustments). |