Twin Disc (TWIN) 10-Q 9 Nov 16 2017 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Sep. 30, 2016	Oct. 28, 2016
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)		11,481,133
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2016	Jun. 30, 2016
Current assets:
Cash	$ 16,077,000	$ 18,273,000
Trade accounts receivable, net	25,758,000	25,363,000
Inventories	67,128,000	66,569,000
Prepaid expenses	7,796,000	7,353,000
Other	6,920,000	7,477,000
Total current assets	123,679,000	125,035,000
Property, plant and equipment, net	50,416,000	51,665,000
Deferred income taxes	27,192,000	25,870,000
Goodwill	5,139,000	5,120,000
Intangible assets, net	2,136,000	2,164,000
Other assets	4,194,000	4,068,000
Total assets	212,756,000	213,922,000
Current liabilities:
Accounts payable	15,215,000	14,716,000
Accrued liabilities	20,571,000	21,415,000
Total current liabilities	35,786,000	36,131,000
Long-term debt	9,694,000	8,501,000
Accrued retirement benefits	48,469,000	48,705,000
Deferred income taxes	809,000	827,000
Other long-term liabilities	2,302,000	2,705,000
Total liabilities	97,060,000	96,869,000
Commitments and contingencies (Note D)
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	10,476,000	11,761,000
Retained earnings	172,966,000	175,662,000
Accumulated other comprehensive loss	(42,844,000)	(44,143,000)
Equity before treasury stock	140,598,000	143,280,000
Less treasury stock, at cost (1,660,895 and 1,749,294 shares, respectively)	25,437,000	26,790,000
Total Twin Disc shareholders' equity	115,161,000	116,490,000
Noncontrolling interest	535,000	563,000
Total equity	115,696,000	117,053,000
Total liabilities and equity	$ 212,756,000	$ 213,922,000

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares	Sep. 30, 2016	Jun. 30, 2016
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)	1,660,895	1,749,294

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2016	Sep. 25, 2015
Net sales	$ 35,835	$ 37,373
Cost of goods sold	26,662	29,183
Gross profit	9,173	8,190
Marketing, engineering and administrative expenses	12,475	15,240
Restructuring expenses	258
Other operating expense (income)		(500)
Loss from operations	(3,560)	(6,550)
Interest expense	(53)	(91)
Other expense (income), net	110	(158)
Non-operating income (expense)	163	(67)
Loss before income taxes and noncontrolling interest	(3,723)	(6,483)
Income tax benefit	(1,052)	(2,208)
Net loss	(2,671)	(4,275)
Less: Net earnings attributable to noncontrolling interest, net of tax	(25)	(48)
Net loss attributable to Twin Disc	$ (2,696)	$ (4,323)
Dividends per share (in dollars per share)		$ 0.09
Loss per share data:
Basic loss per share attributable to Twin Disc common shareholders (in dollars per share)	(0.24)	(0.39)
Diluted loss per share attributable to Twin Disc common shareholders (in dollars per share)	$ (0.24)	$ (0.39)
Weighted average shares outstanding data:
Basic shares outstanding (in shares)	11,217	11,313
Dilutive stock awards (in shares)
Diluted shares outstanding (in shares)	11,217	11,313
Comprehensive loss:
Net loss	$ (2,671)	$ (4,275)
Benefit plan adjustments, net of income taxes of $399 and $423, respectively	672	739
Foreign currency translation adjustment	683	(1,805)
Comprehensive loss	(1,316)	(5,341)
Less: Comprehensive income attributable to noncontrolling interest	(81)	(29)
Comprehensive loss attributable to Twin Disc	$ (1,397)	$ (5,370)

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (Parentheticals) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Sep. 25, 2015
Benefit plan adjustments, tax	$ 399	$ 423

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Sep. 30, 2016	Sep. 25, 2015
Cash flows from operating activities:
Net loss	$ (2,671,000)	$ (4,275,000)
Adjustments to reconcile net loss to net cash used by operating activities:
Depreciation and amortization	1,916,000	2,221,000
Restructuring expenses	219,000
Provision for deferred income taxes	(1,335,000)	(7,006,000)
Stock compensation expense and other non-cash changes, net	325,000	378,000
Net change in operating assets and liabilities	(1,115,000)	6,310,000
Net cash used by operating activities	(2,661,000)	(2,372,000)
Cash flows from investing activities:
Proceeds from sale of business (see Note L)		3,500,000
Proceeds from life insurance policy		1,907,000
Acquisitions of fixed assets	(525,000)	(1,403,000)
Proceeds from sale of fixed assets	8,000	79,000
Other, net	(129,000)	(185,000)
Net cash (used) provided by investing activities	(646,000)	3,898,000
Cash flows from financing activities:
Borrowings under revolving loan agreement	13,943,000	22,780,000
Repayments under revolving loan agreement	(12,751,000)	(22,315,000)
Dividends paid to shareholders		(1,019,000)
Dividends paid to noncontrolling interest	(109,000)	(192,000)
Excess tax (shortfall) benefits from stock compensation	(133,000)	52,000
Payments of withholding taxes on stock compensation	(140,000)	(190,000)
Net cash provided (used) by financing activities	810,000	(884,000)
Effect of exchange rate changes on cash	301,000	(542,000)
Net change in cash	(2,196,000)	100,000
Cash:
Beginning of period	18,273,000	22,936,000
End of period	$ 16,077,000	$ 23,036,000

Note A - Basis of Presenation

Note A - Basis of Presenation	3 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Significant Accounting Policies [Text Block]	A. Basis of Presentation The unaudited condensed consolidated financial statements have been prepared by Twin Disc, Incorporated (the “Company”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, in the opinion of the Company, include all adjustments, consisting only of normal recurring items, necessary for a fair statement of results for each period. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such SEC rules and regulations. The Company believes that the disclosures made are adequate to make the information presented not misleading. It is suggested that these financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report filed on Form 10-K for June 30, 2016. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States. New Accounting Releases In August 2016, the Financial Accounting Standards Board (“FASB”) issued updated guidance to the Accounting Standards Codification (“ASC”) that addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments in this guidance are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 (the Company’s fiscal 2019), with early adoption permitted. The Company is currently evaluating the potential impact of this guidance on the Company’s financial statements and disclosures. In March 2016, the FASB issued updated guidance to the 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 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 did not have a material impact on the Company’s financial statements and 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 did not 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 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	3 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Inventory Disclosure [Text Block]	B. Inventor ies The major classes of inventories were as follows: September 30, 2016 June 30, 2016 Inventories: Finished parts $ 45,786 $ 45,622 Work in process 8,392 8,020 Raw materials 12,950 12,927 $ 67,128 $ 66,569

Note C - Warranty

Note C - Warranty	3 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Product Warranty Disclosure [Text Block]	C. Warranty The Company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its suppliers. However, its warranty obligation is affected by product failure rates, the number of units affected by the failure and the expense involved in satisfactorily addressing the situation. The warranty reserve is established based on our best estimate of the amounts necessary to settle future and existing claims on products sold as of the balance sheet date. When evaluating the adequacy of the reserve for warranty costs, management takes into consideration the term of the warranty coverage, historical claim rates and costs of repair, knowledge of the type and volume of new products and economic trends. While we believe the warranty reserve is adequate and that the judgment applied is appropriate, such amounts estimated to be due and payable in the future could differ materially from what actually transpires. The following is a listing of the activity in the warranty reserve during the quarter ended September 30, 2016 and September 25, 2015: For the Quarter Ended September 30, 2016 September 25, 2015 Reserve balance, beginning of period $ 3,607 $ 5,245 Current period expense (adjustment) 182 (303 ) Payments or credits to customers (762 ) (721 ) Translation 9 (1 ) Reserve balance, end of period $ 3,036 $ 4,220 The current portion of the warranty accrual ($2,343 and $2,986 as of September 30, 2016 and September 25, 2015, respectively) is reflected in accrued liabilities, while the long-term portion ($693 and $1,234 as of September 30, 2016 and September 25, 2015, respectively) is included in other long-term liabilities on the consolidated balance sheets.

Note D - Contingencies

Note D - Contingencies	3 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	D. Contingencies The Company is involved in litigation of which the ultimate outcome and liability to the Company, if any, is not presently determinable. Management believes that final disposition of such litigation will not have a material impact on the Company’s results of operations, financial position or cash flows.

Note E - Business Segments

Note E - Business Segments	3 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	E . Business Segments The Company and its subsidiaries are engaged in the manufacture and sale of marine and heavy-duty off-highway power transmission equipment. Principal products include marine transmissions, surface drives, propellers and boat management systems, as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches and controls systems. The Company sells to both domestic and foreign customers in a variety of market areas, principally pleasure craft, commercial and military marine markets, as well as in the energy and natural resources, government and industrial markets. The Company has two reportable segments: manufacturing and distribution. 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. Information about the Company’s segments is summarized as follows: For the Quarter Ended September 30, 2016 September 25, 2015 Net sales Manufacturing segment sales $ 30,499 $ 29,057 Distribution segment sales 15,395 20,724 Inter/Intra segment elimination - manufacturing (8,126 ) (8,477 ) Inter/Intra segment elimination – distribution (1,933 ) (3,931 ) $ 35,835 $ 37,373 Net loss attributable to Twin Disc Manufacturing segment net loss $ (1,420 ) $ (2,847 ) Distribution segment net earnings 271 553 Corporate and eliminations (1,547 ) (2,029 ) $ (2,696 ) $ (4,323 ) Assets September 30, 2016 June 30, 2016 Manufacturing segment assets $ 222,629 $ 221,590 Distribution segment assets 51,381 52,719 Corporate assets and elimination of intercompany assets (61,254 ) (60,387 ) $ 212,756 $ 213,922

Note F - Stock-based Compensati

Note F - Stock-based Compensation	3 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	F. Stock-Based Compensation Performance Stock Awards (“PSA”) During the first quarter of fiscal 2017 and 2016, the Company granted a target number of 99.6 and 60.5 PSAs, respectively, to various employees of the Company, including executive officers. The fiscal 2017 PSAs will vest if the Company achieves performance-based target objectives relating to average return on invested capital, average annual sales and average annual Earnings Per Share (“EPS”) (as defined in the PSA Grant Agreement), in the cumulative three fiscal year period ending June 30, 2019. These PSAs are subject to adjustment if the Company’s return on invested capital, net sales, and EPS 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 149.4. Based upon actual results to date and the low probability of achieving the threshold performance levels, the Company is currently not accruing compensation expense for these PSAs. The fiscal 2016 PSAs will vest if the Company achieves (a) performance-based target objectives relating to average annual sales and consolidated economic profit, and (b) relative Total Shareholder Return (“TSR”) (as defined in the PSA Grant Agreement), in the cumulative three fiscal year period ending June 30, 2018. These PSAs are subject to adjustment if the Company’s net sales, economic profit and relative TSR for the period falls below or exceeds the specified target objective, and the maximum number of performance shares that can be awarded if the target objective is exceeded is 90.7. Based upon actual results to date and the low probability of achieving the threshold performance levels, the Company is currently not accruing as compensation expense for the portion of the PSAs relating to the 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. There were 171.8 and 86.4 unvested PSAs outstanding at September 30, 2016 and September 25, 2015, 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. Compensation expense of $15 was recognized for the quarter ended September 30, 2016, related to PSAs. There was no compensation expense for the quarter ended September 25, 2015, related to PSAs. The weighted average grant date fair value of the unvested awards at September 30, 2016 was $13.38. At September 30, 2016, the Company had $2,229 of unrecognized compensation expense related to the unvested shares that would vest if the specified target objective was achieved for the fiscal 2017, 2016 and 2015 awards. The total fair value of PSAs vested as of September 30, 2016 and September 25, 2015 was $0. Performance Stock Unit Awards (“PSU”) There were no grants of PSUs during the first quarter of fiscal 2017 and 2016. There were 11.4 and 29.9 unvested PSUs outstanding at September 30, 2016 and September 25, 2015, respectively. The weighted average grant date fair value of the unvested awards at September 30, 2016 was $30.16. PSUs are remeasured at fair-value based upon the Company’s stock price at the end of each reporting period. The fair-value of the PSUs is expensed over the performance period for the shares that are expected to ultimately vest. There was no compensation expense for the quarters ended September 30, 2016 and September 25, 2015, related to PSUs. At September 30, 2016, the Company had $135 of unrecognized compensation expense related to the unvested shares that would vest if the specified target objective was achieved for the fiscal 2015 awards. The total fair value of PSU awards vested as of September 30, 2016 and September 25, 2015 were $0. The PSU awards are cash based, and would therefore be recorded as a liability on the Company’s consolidated balance sheets. As of September 30, 2016 and June 30, 2016, there were no awards included in liabilities in our consolidated balance sheets due to actual results to date and the low probability of achieving any of the threshold performance levels. Restricted Stock Awards (“RS”) The Company has unvested RS awards outstanding that will vest if certain service conditions are fulfilled. The fair value of the RS grants is recorded as compensation expense over the vesting period, which is generally 1 to 3 years. During the first quarter of fiscal 2017 and 2016, the Company granted 101.3 and 68.4 service based restricted shares, respectively, to employees and non-employee directors in each year. There were 218.0 and 133.4 unvested shares outstanding at September 30, 2016 and September 25, 2015, respectively. Compensation expense of $326 and $355 was recognized for the quarters ended September 30, 2016 and September 25, 2015, respectively. The total fair value of restricted stock grants vested as of September 30, 2016 and September 25, 2015 was $265 and $461, respectively. As of September 30, 2016, the Company had $1,808 of unrecognized compensation expense related to restricted stock which will be recognized over the next three years.

Note G - Pension and Other Post

Note G - Pension and Other Postretirement Benefit Plans	3 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Pension and Other Postretirement Benefits Disclosure [Text Block]	G. Pension and Other Postretirement Benefit Plans The Company has non-contributory, qualified defined benefit plans covering substantially all domestic employees hired prior to October 1, 2003 and certain foreign employees. Additionally, the Company provides health care and life insurance benefits for certain domestic retirees. Components of net periodic benefit cost for the defined benefit pension plans and the other postretirement benefit plan are as follows: For the Quarter Ended September 30, 2016 September 25, 2015 Pension Benefits: Service cost $ 221 $ 130 Interest cost 1,125 1,225 Expected return on plan assets (1,442 ) (1,692 ) Amortization of transition obligation 9 9 Amortization of prior service cost 1 - Amortization of actuarial net loss 899 908 Net periodic benefit cost $ 813 $ 580 Postretirement Benefits: Service cost $ 6 $ 7 Interest cost 122 151 Amortization of actuarial net loss 182 182 Net periodic benefit cost $ 310 $ 340 The Company expects to contribute approximately $1,467 to its pension plans in fiscal 2017. As of September 30, 2016, $155 in contributions has been made. The Company has reclassified $672 (net of $399 in taxes) of benefit plan adjustments from accumulated other comprehensive loss during the quarter ended September 30, 2016. The Company has reclassified $739 (net of $423 in taxes) of benefit plan adjustments from accumulated other comprehensive loss during the quarter ended September 25, 2015. These reclassifications are included in the computation of net periodic benefit cost.

Note H - Income Taxes

Note H - Income Taxes	3 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Income Tax Disclosure [Text Block]	H. Income Taxes For the quarters ended September 30, 2016 and September 25, 2015, the Company’s effective income tax rate was 28.3% and 34.1%, respectively. Expected domestic losses are lower compared to prior year by $10,180. The ratio of foreign income inclusions to a smaller domestic loss resulted in a 4.6% benefit reflected in the rate. The federal research and development credit was extended and this additional benefit was offset by reduced foreign tax credits resulting in a net decrease in the effective tax rate of 1%. The Company maintains valuation allowances when it is more likely than not that all or a portion of a deferred tax asset will not be realized. Changes in valuation allowances from period to period are included in the tax provision in the period of change. In determining whether a valuation allowance is required, the Company takes into account such factors as prior earnings history, expected future earnings, carry-back and carry-forward periods, and tax strategies that could potentially enhance the likelihood of realization of a deferred tax asset. Due to recent operating income in certain foreign jurisdictions with a history of generating operating losses, the company has evaluated the realizability of the net deferred tax assets related to these jurisdictions. This evaluation concluded that, based primarily upon a history of losses in this jurisdiction and failure to achieve targeted levels of improvement, a full valuation allowance continues to be necessary. The Company has not provided for additional U.S. income taxes on cumulative earnings of consolidated foreign subsidiaries that are considered to be reinvested indefinitely. The Company reaffirms its position that these earnings remain permanently invested, and has no plans to repatriate funds to the U.S. for the foreseeable future. Such earnings could become taxable upon the sale or liquidation of these foreign subsidiaries or upon dividend repatriation. Accounting policies for interim reporting require the Company to adjust its effective tax rate each quarter to be consistent with the estimated annual effective tax rate. Under this effective tax rate methodology, the Company applies an estimated annual income tax rate to its year-to-date ordinary earnings to derive its income tax provision each quarter. The Company has approximately $904 of unrecognized tax benefits, including related interest and penalties, as of September 30, 2016, which, if recognized, would favorably impact the effective tax rate. There was no significant change in the total unrecognized tax benefits due to the settlement of audits, the expiration of statutes of limitations or for other items during the quarter ended September 30, 2016. It appears possible that the amount of unrecognized tax benefits could change in the next twelve months due to on-going audit activity. Annually, the Company files income tax returns in various taxing jurisdictions inside and outside the United States. In general, the tax years that remain subject to examination are 2011 through 2016 for the major operations in Italy, Canada, Belgium, and Japan. The tax years open to examination in the U.S. are for years subsequent to fiscal 2012. The state of Wisconsin income tax audit remains ongoing for the fiscal years 2010 through 2015. It is reasonably possible that other audit cycles will be completed during fiscal 2017.

Note I - Goodwill and Other Int

Note I - Goodwill and Other Intangibles	3 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Goodwill and Intangible Assets Disclosure [Text Block]	I. Goodwill and Other Intangibles The Company reviews goodwill for impairment on a reporting unit basis annually as of the end of the fiscal year, and whenever events or circumstances (“triggering events”) indicate that the carrying value of goodwill may not be recoverable. The Company monitors for interim triggering events on an ongoing basis. Such triggering events include unfavorable operating results and macroeconomic trends, and market capitalization of the company below its book value. 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. If declining actual operating results or future operating results become indicative that the fair value of the Company’s reporting units has declined below their carrying values, an interim goodwill impairment test may need to be performed and may result in a non-cash goodwill impairment charge. If the Company’s market capitalization falls below the Company’s carrying value for a sustained period of time or if such a decline becomes indicative that the fair value of the Company’s reporting units has declined to below their carrying values, an interim goodwill impairment test may need to be performed and may result in a non-cash goodwill impairment charge. For the quarter ended September 30, 2016, the Company performed a review of potential triggering events, such as the continued market softness and operating losses experienced during the quarter, as well as its market capitalization levels, and concluded that these events were not indicative that the fair values of its reporting units had more likely than not declined to below their carrying values at September 30, 2016. As of September 30, 2016, goodwill is carried in the following reporting units: Reporting Unit US Industrial $ 2,589 European Industrial 2,550 Total $ 5,139 The changes in the carrying amount of goodwill, all of which is allocated to the manufacturing segment, for the quarter ended September 30, 2016 were as follows: Gross Carrying Amount Accumulated Impairment Net Book Value Balance at June 30, 2016 $ 16,392 $ (11,272 ) $ 5,120 Translation adjustment 19 - 19 Balance at September 30, 2016 $ 16,411 $ (11,272 ) $ 5,139 The gross carrying amount and accumulated amortization of the Company’s intangible assets that have definite useful lives and are subject to amortization as of September 30, 2016 and June 30, 2016 were as follows: September 30, 2016 Gross Carrying Amount Accumulated Amortization Accumulated Impairment Net Book Value Licensing agreements $ 3,015 $ (2,580 ) $ - $ 435 Non-compete agreements 2,128 (2,045 ) (83 ) - Trade name 1,678 (296 ) - 1,382 Other 6,617 (5,308 ) (1,194 ) 115 $ 13,438 $ (10,229 ) $ (1,277 ) $ 1,932 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 The weighted average remaining useful life of the intangible assets included in the table above is approximately 14 years. Intangible amortization expense was $43 and $37 for the quarters ended September 30, 2016, and September 25, 2015, respectively. Estimated intangible amortization expense for the remainder of fiscal 2017 and each of the next five fiscal years is as follows: Fiscal Year 2017 $ 138 2018 180 2019 168 2020 154 2021 150 2022 143 The gross carrying amount of the Company’s intangible assets that have indefinite lives and are not subject to amortization as of September 30, 2016 and June 30, 2016 was $204 and $201, respectively. These assets are comprised of acquired trade names.

Note J - Long-term Debt

Note J - Long-term Debt	3 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Debt Disclosure [Text Block]	J. Long-term Debt Long-term debt at September 30, 2016 and June 30, 2016 consisted of the following: September 30, 2016 June 30, 2016 Revolving loan $ 9,670 $ 8,478 Other 24 23 Subtotal 9,694 8,501 Less: current maturities and short-term borrowings - - Total long-term debt $ 9,694 $ 8,501 The revolving loan agreement as of September 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 September 30, 2016, the Company’s borrowing capacity under the terms of the BMO Agreement was approximately $22,273, and the Company had approximately $11,570 of available borrowings. As of September 30, 2016, the interest rate under this agreement was 2.27%. The Company’s revolving loan agreement approximates fair value at September 30, 2016 and June 30, 2016. If measured at fair value in the financial statements, long-term debt (including the current portion) would be classified as Level 2 in the fair value hierarchy.

Note K - Shareholders' Equity

Note K - Shareholders' Equity	3 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	K. Shareholders’ Equity The Company from time to time makes open market purchases of its common stock under authorizations given to it by the Board of Directors, of which 315 shares as of September 30, 2016 remain authorized for purchase. The Company did not make any open market purchases of its shares during the quarter ended September 30, 2016. The following is a reconciliation of the Company’s equity balances for the first fiscal quarters of 2017 and 2016: Twin Disc, Inc. Shareholders’ Equity Accumulated Other Non- Common Retained Comprehensive Treasury Controlling Total Stock Earnings Income (Loss) Stock Interest Equity Balance, June 30, 2016 $ 11,761 $ 175,662 $ (44,143 ) $ (26,790 ) $ 563 $ 117,053 Net (loss) income (2,696 ) 25 (2,671 ) Translation adjustments 627 56 683 Benefit plan adjustments, net of tax 672 672 Cash dividends (109 ) (109 ) Compensation expense and windfall tax benefits 208 208 Shares (acquired) issued, net (1,493 ) 1,353 (140 ) Balance, September 30, 2016 $ 10,476 $ 172,966 $ (42,844 ) $ (25,437 ) $ 535 $ 115,696 Twin Disc, Inc. Shareholders’ Equity Accumulated Other Non- Common Retained Comprehensive Treasury Controlling Total Stock Earnings Income (Loss) Stock Interest Equity Balance, June 30, 2015 $ 12,259 $ 190,807 $ (35,481 ) $ (28,057 ) $ 639 $ 140,167 Net (loss) income (4,323 ) 48 (4,275 ) Translation adjustments (1,787 ) (18 ) (1,805 ) Benefit plan adjustments, net of tax 739 739 Cash dividends (1,019 ) (192 ) (1,211 ) Compensation expense and windfall tax benefits 303 303 Shares (acquired) issued, net (1,045 ) 857 (188 ) Balance, September 25, 2015 $ 11,517 $ 185,465 $ (36,529 ) $ (27,200 ) $ 477 $ 133,730 Reconciliations for the changes in accumulated other comprehensive income (loss), net of tax, by component for the quarters ended September 30, 2016, and September 25, 2015, are as follows: Translation Benefit Plan Adjustment Adjustment Balance at June 30, 2016 $ 5,158 $ (49,301 ) Translation adjustment during the quarter 627 - Amounts reclassified from accumulated other comprehensive income - 672 Net current period other comprehensive (loss) income 627 672 Balance at September 30, 2016 $ 5,785 $ (48,629 ) Translation Benefit Plan Adjustment Adjustment Balance at June 30, 2015 $ 6,740 $ (42,221 ) Translation adjustment during the quarter (1,787 ) - Amounts reclassified from accumulated other comprehensive income - 739 Net current period other comprehensive (loss) income (1,787 ) 739 Balance at September 25, 2015 $ 4,953 $ (41,482 ) Reconciliation for the reclassifications out of accumulated other comprehensive income (loss), net of tax for the quarter ended September 30, 2016 is as follows: Amount Reclassified Quarter Ended September 30, 2016 Amortization of benefit plan items Actuarial losses $ 1,061 (a) Transition asset and prior service benefit 10 (a) Total before tax benefit 1,071 Tax benefit 399 Total reclassification net of tax $ 672 (a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note G "Pension and Other Postretirement Benefit Plans" for further details). Reconciliation for the reclassifications out of accumulated other comprehensive income (loss), net of tax for the quarter ended September 25, 2015 is as follows: Amount Reclassified Quarter Ended September 25, 2015 Amortization of benefit plan items Actuarial losses $ 1,153 (a) Transition asset and prior service benefit 9 (a) Total before tax benefit 1,162 Tax benefit 423 Total reclassification net of tax $ 739 (a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note G "Pension and Other Postretirement Benefit Plans" for further details).

Note L - Restructuring of Opera

Note L - Restructuring of Operations	3 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Restructuring, Impairment, and Other Activities Disclosure [Text Block]	L. 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, and continuing into the current fiscal quarter. The following is a roll-forward of restructuring activity: Accrued restructuring liability, June 30, 2016 $ 801 Additions during the quarter 258 Payments and adjustments (385 ) Accrued restructuring liability, September 30, 2016 $ 674 The additions for the quarter ended September 30, 2016 consist of one-time special benefit payments relating to the elimination of several full-time positions in the Company’s Belgian and Italian locations, under voluntary termination programs that are expected to be in place through December 2017. Those additions do not include additional employee termination costs of $442, which were incurred by the Company’s Italian operation on September 30, 2016. The Italian operation’s reporting date for the quarter was as of August 26, 2016, which conforms to its statutory fiscal quarter reporting date and facilitates prompt reporting of consolidated amounts. This amount will be included in the Company’s second fiscal quarter financial statements. On October 19, 2016, in response to the softness in its markets, the Company’s U.S. manufacturing operation implemented a further reduction in its plant workforce. As a result, the Company expects to record restructuring expenses of $170 in the second fiscal quarter. On September 25, 2015, 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 $500 (before adjustment) is recorded as other operating income in the statement of operations in fiscal 2016.

Significant Accounting Policies

Significant Accounting Policies (Policies)	3 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
New Accounting Pronouncements, Policy [Policy Text Block]	New Accounting Releases In August 2016, the Financial Accounting Standards Board (“FASB”) issued updated guidance to the Accounting Standards Codification (“ASC”) that addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments in this guidance are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 (the Company’s fiscal 2019), with early adoption permitted. The Company is currently evaluating the potential impact of this guidance on the Company’s financial statements and disclosures. In March 2016, the FASB issued updated guidance to the 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 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 did not have a material impact on the Company’s financial statements and 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 did not 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 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)	3 Months Ended
	Sep. 30, 2016
Notes Tables
Schedule of Inventory, Current [Table Text Block]	September 30, 2016 June 30, 2016 Inventories: Finished parts $ 45,786 $ 45,622 Work in process 8,392 8,020 Raw materials 12,950 12,927 $ 67,128 $ 66,569

Note C - Warranty (Tables)

Note C - Warranty (Tables)	3 Months Ended
	Sep. 30, 2016
Notes Tables
Schedule of Product Warranty Liability [Table Text Block]	For the Quarter Ended September 30, 2016 September 25, 2015 Reserve balance, beginning of period $ 3,607 $ 5,245 Current period expense (adjustment) 182 (303 ) Payments or credits to customers (762 ) (721 ) Translation 9 (1 ) Reserve balance, end of period $ 3,036 $ 4,220

Note E - Business Segments (Tab

Note E - Business Segments (Tables)	3 Months Ended
	Sep. 30, 2016
Notes Tables
Reconciliation of Revenue from Segments to Consolidated [Table Text Block]	For the Quarter Ended September 30, 2016 September 25, 2015 Net sales Manufacturing segment sales $ 30,499 $ 29,057 Distribution segment sales 15,395 20,724 Inter/Intra segment elimination - manufacturing (8,126 ) (8,477 ) Inter/Intra segment elimination – distribution (1,933 ) (3,931 ) $ 35,835 $ 37,373 Net loss attributable to Twin Disc Manufacturing segment net loss $ (1,420 ) $ (2,847 ) Distribution segment net earnings 271 553 Corporate and eliminations (1,547 ) (2,029 ) $ (2,696 ) $ (4,323 )
Reconciliation of Assets from Segment to Consolidated [Table Text Block]	Assets September 30, 2016 June 30, 2016 Manufacturing segment assets $ 222,629 $ 221,590 Distribution segment assets 51,381 52,719 Corporate assets and elimination of intercompany assets (61,254 ) (60,387 ) $ 212,756 $ 213,922

Note G - Pension and Other Po23

Note G - Pension and Other Postretirement Benefit Plans (Tables)	3 Months Ended
	Sep. 30, 2016
Notes Tables
Schedule of Net Benefit Costs [Table Text Block]	For the Quarter Ended September 30, 2016 September 25, 2015 Pension Benefits: Service cost $ 221 $ 130 Interest cost 1,125 1,225 Expected return on plan assets (1,442 ) (1,692 ) Amortization of transition obligation 9 9 Amortization of prior service cost 1 - Amortization of actuarial net loss 899 908 Net periodic benefit cost $ 813 $ 580 Postretirement Benefits: Service cost $ 6 $ 7 Interest cost 122 151 Amortization of actuarial net loss 182 182 Net periodic benefit cost $ 310 $ 340

Note I - Goodwill and Other I24

Note I - Goodwill and Other Intangibles (Tables)	3 Months Ended
	Sep. 30, 2016
Notes Tables
Schedule of Goodwill Carried in Reporting Units [Table Text Block]	Reporting Unit US Industrial $ 2,589 European Industrial 2,550 Total $ 5,139
Schedule of Goodwill [Table Text Block]	Gross Carrying Amount Accumulated Impairment Net Book Value Balance at June 30, 2016 $ 16,392 $ (11,272 ) $ 5,120 Translation adjustment 19 - 19 Balance at September 30, 2016 $ 16,411 $ (11,272 ) $ 5,139
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block]	September 30, 2016 Gross Carrying Amount Accumulated Amortization Accumulated Impairment Net Book Value Licensing agreements $ 3,015 $ (2,580 ) $ - $ 435 Non-compete agreements 2,128 (2,045 ) (83 ) - Trade name 1,678 (296 ) - 1,382 Other 6,617 (5,308 ) (1,194 ) 115 $ 13,438 $ (10,229 ) $ (1,277 ) $ 1,932 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
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]	Fiscal Year 2017 $ 138 2018 180 2019 168 2020 154 2021 150 2022 143

Note J - Long-term Debt (Tables

Note J - Long-term Debt (Tables)	3 Months Ended
	Sep. 30, 2016
Notes Tables
Schedule of Debt [Table Text Block]	September 30, 2016 June 30, 2016 Revolving loan $ 9,670 $ 8,478 Other 24 23 Subtotal 9,694 8,501 Less: current maturities and short-term borrowings - - Total long-term debt $ 9,694 $ 8,501

Note K - Shareholders' Equity (

Note K - Shareholders' Equity (Tables)	3 Months Ended
	Sep. 30, 2016
Notes Tables
Schedule of Stockholders Equity [Table Text Block]	Twin Disc, Inc. Shareholders’ Equity Accumulated Other Non- Common Retained Comprehensive Treasury Controlling Total Stock Earnings Income (Loss) Stock Interest Equity Balance, June 30, 2016 $ 11,761 $ 175,662 $ (44,143 ) $ (26,790 ) $ 563 $ 117,053 Net (loss) income (2,696 ) 25 (2,671 ) Translation adjustments 627 56 683 Benefit plan adjustments, net of tax 672 672 Cash dividends (109 ) (109 ) Compensation expense and windfall tax benefits 208 208 Shares (acquired) issued, net (1,493 ) 1,353 (140 ) Balance, September 30, 2016 $ 10,476 $ 172,966 $ (42,844 ) $ (25,437 ) $ 535 $ 115,696 Twin Disc, Inc. Shareholders’ Equity Accumulated Other Non- Common Retained Comprehensive Treasury Controlling Total Stock Earnings Income (Loss) Stock Interest Equity Balance, June 30, 2015 $ 12,259 $ 190,807 $ (35,481 ) $ (28,057 ) $ 639 $ 140,167 Net (loss) income (4,323 ) 48 (4,275 ) Translation adjustments (1,787 ) (18 ) (1,805 ) Benefit plan adjustments, net of tax 739 739 Cash dividends (1,019 ) (192 ) (1,211 ) Compensation expense and windfall tax benefits 303 303 Shares (acquired) issued, net (1,045 ) 857 (188 ) Balance, September 25, 2015 $ 11,517 $ 185,465 $ (36,529 ) $ (27,200 ) $ 477 $ 133,730
Reconciliation For The Changes In Accumulated Other Comprehensive Income Loss Net Of Tax By Component [Table Text Block]	Translation Benefit Plan Adjustment Adjustment Balance at June 30, 2016 $ 5,158 $ (49,301 ) Translation adjustment during the quarter 627 - Amounts reclassified from accumulated other comprehensive income - 672 Net current period other comprehensive (loss) income 627 672 Balance at September 30, 2016 $ 5,785 $ (48,629 ) Translation Benefit Plan Adjustment Adjustment Balance at June 30, 2015 $ 6,740 $ (42,221 ) Translation adjustment during the quarter (1,787 ) - Amounts reclassified from accumulated other comprehensive income - 739 Net current period other comprehensive (loss) income (1,787 ) 739 Balance at September 25, 2015 $ 4,953 $ (41,482 )
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]	Amount Reclassified Quarter Ended September 30, 2016 Amortization of benefit plan items Actuarial losses $ 1,061 (a) Transition asset and prior service benefit 10 (a) Total before tax benefit 1,071 Tax benefit 399 Total reclassification net of tax $ 672 Amount Reclassified Quarter Ended September 25, 2015 Amortization of benefit plan items Actuarial losses $ 1,153 (a) Transition asset and prior service benefit 9 (a) Total before tax benefit 1,162 Tax benefit 423 Total reclassification net of tax $ 739

Note L - Restructuring of Ope27

Note L - Restructuring of Operations (Tables)	3 Months Ended
	Sep. 30, 2016
Notes Tables
Restructuring and Related Costs [Table Text Block]	Accrued restructuring liability, June 30, 2016 $ 801 Additions during the quarter 258 Payments and adjustments (385 ) Accrued restructuring liability, September 30, 2016 $ 674

Note B - Inventories - Inventor

Note B - Inventories - Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Jun. 30, 2016
Finished parts	$ 45,786	$ 45,622
Work in process	8,392	8,020
Raw materials	12,950	12,927
Total inventories	$ 67,128	$ 66,569

Note C - Warranty (Details Text

Note C - Warranty (Details Textual) - USD ($) $ in Thousands	Sep. 30, 2016	Sep. 25, 2015
Product Warranty Accrual, Current	$ 2,343	$ 2,986
Product Warranty Accrual, Noncurrent	$ 693	$ 1,234

Note C - Warranty - Warranty (D

Note C - Warranty - Warranty (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Sep. 25, 2015
Reserve balance	$ 3,607	$ 5,245
Current period expense (adjustment)	182	(303)
Payments or credits to customers	(762)	(721)
Translation	9	(1)
Reserve balance	$ 3,036	$ 4,220

Note E - Business Segments (Det

Note E - Business Segments (Details Textual)	3 Months Ended
	Sep. 30, 2016
Number of Reportable Segments	2

Note E - Business Segments - Re

Note E - Business Segments - Revenues by Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Sep. 25, 2015
Manufacturing Segment [Member] | Operating Segments [Member]
Net sales	$ 30,499	$ 29,057
Earnings	(1,420)	(2,847)
Manufacturing Segment [Member] | Intersegment Eliminations [Member]
Net sales	(8,126)	(8,477)
Distribution Segment [Member] | Operating Segments [Member]
Net sales	15,395	20,724
Earnings	271	553
Distribution Segment [Member] | Intersegment Eliminations [Member]
Net sales	(1,933)	(3,931)
Corporate, Non-Segment [Member]
Earnings	(1,547)	(2,029)
Net sales	35,835	37,373
Earnings	$ (2,696)	$ (4,323)

Note E - Business Segments - As

Note E - Business Segments - Assets by Segment (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Jun. 30, 2016
Manufacturing Segment [Member] | Operating Segments [Member]
Segment Assets	$ 222,629	$ 221,590
Distribution Segment [Member] | Operating Segments [Member]
Segment Assets	51,381	52,719
Corporate, Non-Segment [Member]
Segment Assets	(61,254)	(60,387)
Segment Assets	$ 212,756	$ 213,922

Note F - Stock-based Compensa34

Note F - Stock-based Compensation (Details Textual) - USD ($)	3 Months Ended		12 Months Ended		15 Months Ended
	Sep. 30, 2016	Sep. 25, 2015	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2016
Performance Stock Unit Awards [Member]
Allocated Share-based Compensation Expense	$ 0	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value	$ 0	$ 0		$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	0	0
Deferred Compensation Share-based Arrangements, Liability, Current and Noncurrent	$ 0		$ 0		$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	11,400	29,900			11,400
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value	$ 30.16				$ 30.16
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 135,000				$ 135,000
Restricted Stock [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	1 year	1 year
Restricted Stock [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years	3 years
Restricted Stock [Member]
Allocated Share-based Compensation Expense	$ 326,000	$ 355,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value	$ 265,000	$ 461,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	101,300	68,400
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	218,000	133,400			218,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 1,808,000				$ 1,808,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	3 years
Performance Stock Awards [Member]
Allocated Share-based Compensation Expense	$ 15,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	99,600	60,500
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			3 years		3 years
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	149,400		90,700		149,400
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	171,800	86,400			171,800
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value	$ 13.38				$ 13.38
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 2,229,000				$ 2,229,000

Note G - Pension and Other Po35

Note G - Pension and Other Postretirement Benefit Plans (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Sep. 25, 2015
Pension Plan [Member]
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year	$ 1,467
Defined Benefit Plan, Contributions by Employer	155
Other Comprehensive (Income) Loss, Amortization Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service Cost (Credit), Net of Tax	672	$ 739
Other Comprehensive (Income) Loss, Amortization Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service Cost (Credit), Tax	$ 399	$ 423

Note G - Pension and Other Po36

Note G - Pension and Other Postretirement Benefit Plans - Pension and Other Postretirement Benefit Plans (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Sep. 25, 2015
Pension Plan [Member]
Pension Benefits:
Service cost	$ 221	$ 130
Interest cost	1,125	1,225
Expected return on plan assets	(1,442)	(1,692)
Amortization of transition obligation	9	9
Amortization of prior service cost	1
Amortization of actuarial net loss	899	908
Net periodic benefit cost	813	580
Other Postretirement Benefit Plan [Member]
Pension Benefits:
Service cost	6	7
Interest cost	122	151
Amortization of actuarial net loss	182	182
Net periodic benefit cost	$ 310	$ 340

Note H - Income Taxes (Details

Note H - Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Sep. 25, 2015
Foreign Tax Authority [Member] | Earliest Tax Year [Member]
Open Tax Year	2,011
Foreign Tax Authority [Member] | Latest Tax Year [Member]
Open Tax Year	2,016
State and Local Jurisdiction [Member] | Earliest Tax Year [Member] | Wisconsin Department of Revenue [Member]
Open Tax Year	2,010
State and Local Jurisdiction [Member] | Latest Tax Year [Member] | Wisconsin Department of Revenue [Member]
Open Tax Year	2,015
Effective Income Tax Rate Reconciliation, Percent	28.30%	34.10%
Change in Expected Domestic Losses	$ 10,180
Income Tax Reconciliation, Difference Between Expected Domestic Losses and Prior Year's Domestic Losses, Percentage	4.60%
Income Tax Reconciliation Reduction In Effective Tax Rate	1.00%
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	$ 904

Note I - Goodwill and Other I38

Note I - Goodwill and Other Intangibles (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Sep. 25, 2015	Jun. 30, 2016
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	14 years
Amortization of Intangible Assets	$ 43	$ 37
Indefinite-Lived Intangible Assets (Excluding Goodwill)	$ 204		$ 201

Note I - Goodwill and Other I39

Note I - Goodwill and Other Intangibles - Goodwill by Reporting Units (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Jun. 30, 2016
Industrial [Member] | UNITED STATES
Goodwill	$ 2,589
Marine and Propulsion Systems [Member] | Europe [Member]
Goodwill	2,550
Goodwill	$ 5,139	$ 5,120

Note I - Goodwill and Other I40

Note I - Goodwill and Other Intangibles - Goodwill Rollforward (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2016USD ($)
Balance, Gross carrying Amount	$ 16,392
Balance, Net Book Value	5,120
Translation Adjustment, Gross carrying Amount	19
Balance, Gross carrying Amount	16,411
Balance	(11,272)
Balance, Net Book Value	$ 5,139

Note I - Goodwill and Other I41

Note I - Goodwill and Other Intangibles - Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Jun. 30, 2016
Licensing Agreements [Member]
Gross Carrying Amount	$ 3,015	$ 3,015
Accumulated Amortization	(2,580)	(2,565)
Net Book Value	435	450
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	1,678	1,668
Accumulated Amortization	(296)	(275)
Net Book Value	1,382	1,393
Other Intangible Assets [Member]
Gross Carrying Amount	6,617	6,615
Accumulated Amortization	(5,308)	(5,301)
Net Book Value	115	120
Accumulated Impairment	(1,194)	(1,194)
Gross Carrying Amount	13,438	13,426
Accumulated Amortization	(10,229)	(10,186)
Net Book Value	1,932	1,963
Accumulated Impairment	$ (1,277)	$ (1,277)

Note I - Goodwill and Other I42

Note I - Goodwill and Other Intangibles - Estimated Intangibles (Details) $ in Thousands	Sep. 30, 2016USD ($)
2,017	$ 138
2,018	180
2,019	168
2,020	154
2,021	150
2,022	$ 143

Note J - Long-term Debt (Detail

Note J - Long-term Debt (Details Textual) - Revolving Loan [Member] - Bank of Montreal [Member] $ in Thousands	Sep. 30, 2016USD ($)
Line of Credit Facility, Current Borrowing Capacity	$ 22,273
Line of Credit Facility, Remaining Borrowing Capacity	$ 11,570
Line of Credit Facility, Interest Rate at Period End	2.27%

Note J - Long-term Debt - Long-

Note J - Long-term Debt - Long-term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Jun. 30, 2016
Revolving Loan [Member]
Long-term debt	$ 9,670	$ 8,478
Long-term debt	9,670	8,478
Other Long-Term Debt [Member]
Long-term debt	24	23
Long-term debt	24	23
Long-term debt	9,694	8,501
Long-term debt	9,694	8,501
Less: current maturities and short-term borrowings
Total long-term debt	$ 9,694	$ 8,501

Note K - Shareholders' Equity45

Note K - Shareholders' Equity (Details Textual) shares in Thousands	Sep. 30, 2016shares
Common Stock [Member]
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased	315

Note K - Stockholders' Equity -

Note K - Stockholders' Equity - Shareholders' Equity Reconciliation (Details) - USD ($)	3 Months Ended
	Sep. 30, 2016	Sep. 25, 2015
Common Stock [Member]
Balance	$ 11,761,000	$ 12,259,000
Net income
Translation adjustments
Benefit plan adjustments, net of tax
Cash dividends
Compensation expense and windfall tax benefits	208,000	303,000
Shares (acquired) issued, net	(1,493,000)	(1,045,000)
Balance	10,476,000	11,517,000
Retained Earnings [Member]
Balance	175,662,000	190,807,000
Net income	(2,696,000)	(4,323,000)
Translation adjustments
Benefit plan adjustments, net of tax
Cash dividends		(1,019,000)
Compensation expense and windfall tax benefits
Shares (acquired) issued, net
Balance	172,966,000	185,465,000
AOCI Attributable to Parent [Member]
Balance	(44,143,000)	(35,481,000)
Net income
Translation adjustments	627,000	(1,787,000)
Benefit plan adjustments, net of tax	672,000	739,000
Cash dividends
Compensation expense and windfall tax benefits
Shares (acquired) issued, net
Balance	(42,844,000)	(36,529,000)
Treasury Stock [Member]
Balance	(26,790,000)	(28,057,000)
Net income
Translation adjustments
Benefit plan adjustments, net of tax
Cash dividends
Compensation expense and windfall tax benefits
Shares (acquired) issued, net	1,353,000	857,000
Balance	(25,437,000)	(27,200,000)
Noncontrolling Interest [Member]
Balance	563,000	639,000
Net income	25,000	48,000
Translation adjustments	56,000	(18,000)
Benefit plan adjustments, net of tax
Cash dividends	(109,000)	(192,000)
Compensation expense and windfall tax benefits
Shares (acquired) issued, net
Balance	535,000	477,000
Balance	117,053,000	140,167,000
Net income	(2,671,000)	(4,275,000)
Translation adjustments	683,000	(1,805,000)
Benefit plan adjustments, net of tax	672,000	739,000
Cash dividends	(109,000)	(1,211,000)
Compensation expense and windfall tax benefits	208,000	303,000
Shares (acquired) issued, net	(140,000)	(188,000)
Balance	$ 115,696,000	$ 133,730,000

Note K - Stockholders' Equity47

Note K - Stockholders' Equity - Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($)	3 Months Ended
	Sep. 30, 2016	Sep. 25, 2015
Translation Adjustment [Member]
Balance	$ 5,158,000	$ 6,740,000
Translation adjustment during the quarter	627,000	(1,787,000)
Amounts reclassified from accumulated other comprehensive income
Net current period other comprehensive income	627,000	(1,787,000)
Balance	5,785,000	4,953,000
Benefit Plan Adjustment [Member]
Balance	(49,301,000)	(42,221,000)
Translation adjustment during the quarter
Amounts reclassified from accumulated other comprehensive income	672,000	739,000
Net current period other comprehensive income	672,000	739,000
Balance	(48,629,000)	$ (41,482,000)
Balance	(44,143,000)
Balance	$ (42,844,000)

Note K - Stockholders' Equity48

Note K - Stockholders' Equity - Reconciliation for the Reclassifications Out of Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($) $ in Thousands		3 Months Ended
		Sep. 30, 2016	Sep. 25, 2015
Benefit Plan Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Actuarial losses	[1]	$ 1,061	$ 1,153
Transition asset and prior service benefit	[1]	10	9
Total before tax benefit		1,071	1,162
Income tax benefit		399	423
Net loss		672	739
Income tax benefit		(1,052)	(2,208)
Net loss		$ (2,671)	$ (4,275)
[1]	These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note G "Pension and Other Postretirement Benefit Plans" for further details).

Note L - Restructuring of Ope49

Note L - Restructuring of Operations (Details Textual) - USD ($) $ in Thousands	Sep. 25, 2015	Dec. 30, 2016	Sep. 30, 2016	Sep. 25, 2015	Jun. 30, 2016
Workforce Reduction in Italian Operations [Member] | Scenario, Forecast [Member]
Restructuring Charges		$ 442
Workforce Reduction in U.S Manufacturing Operations [Member] | Scenario, Forecast [Member]
Restructuring Charges		$ 170
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			$ 258
Other Operating Income				$ 500	$ 500

Note L - Restructuring of Ope50

Note L - Restructuring of Operations - Roll-forward of Restructuring Activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Sep. 25, 2015
Business Restructuring Reserves [Member]
Additions during the quarter	$ 258
Accrued restructuring liability, June 30, 2016	801
Additions during the quarter	258
Payments and adjustments	(385)
Accrued restructuring liability, September 30, 2016	$ 674