Twin Disc (TWIN) 10-Q 1 Nov 17 2018 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Sep. 29, 2017	Oct. 27, 2017
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)		11,592,011
Document Type	10-Q
Document Period End Date	Sep. 29, 2017
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Sep. 29, 2017	Jun. 30, 2017
Current assets:
Cash	$ 15,461	$ 16,367
Trade accounts receivable, net	27,514	31,392
Inventories	70,037	66,193
Prepaid expenses	8,018	8,295
Other	7,537	7,187
Total current assets	128,567	129,434
Property, plant and equipment, net	48,344	48,212
Deferred income taxes	28,822	24,198
Goodwill, net	2,757	2,585
Intangible assets, net	2,070	2,009
Other assets	4,443	4,460
Total assets	215,003	210,898
Current liabilities:
Accounts payable	19,486	21,301
Accrued liabilities	21,749	23,222
Total current liabilities	41,235	44,523
Long-term debt	8,244	6,323
Accrued retirement benefits	32,727	33,706
Deferred income taxes	1,029	1,011
Other long-term liabilities	1,687	1,768
Total liabilities	84,922	87,331
Commitments and contingencies (Note D)
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	9,878	10,429
Retained earnings	172,760	169,368
Accumulated other comprehensive loss	(29,650)	(32,671)
Equity before treasury stock	152,988	147,126
Less treasury stock, at cost (1,526,945 and 1,580,335 shares, respectively)	23,388	24,205
Total Twin Disc shareholders' equity	129,600	122,921
Noncontrolling interest	481	646
Total equity	130,081	123,567
Total liabilities and equity	$ 215,003	$ 210,898

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares $ / shares in Thousands	Sep. 29, 2017	Jun. 30, 2017
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)	1,526,945	1,580,335

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 29, 2017	Sep. 30, 2016
Net sales	$ 45,064	$ 35,835
Cost of goods sold	31,169	26,662
Gross profit	13,895	9,173
Marketing, engineering and administrative expenses	13,668	12,475
Restructuring expenses	1,218	258
Loss from operations	(991)	(3,560)
Interest expense	64	53
Other expense, net	198	110
Non-operating income (expense)	262	163
Loss before income taxes and noncontrolling interest	(1,253)	(3,723)
Income tax benefit	(4,658)	(1,052)
Net income (loss)	3,405	(2,671)
Less: Net earnings attributable to noncontrolling interest, net of tax	(13)	(25)
Net income (loss) attributable to Twin Disc	$ 3,392	$ (2,696)
Dividends per share (in dollars per share)
Income (loss) per share data:
Basic income (loss) per share (in dollars per share)	0.29	(0.24)
Net income (loss) per share - diluted (in dollars per share)	$ 0.29	$ (0.24)
Weighted average shares outstanding data:
Basic shares outstanding (in shares)	11,256	11,217
Diluted shares outstanding (in shares)	11,259	11,217
Comprehensive income (loss):
Net income (loss)	$ 3,405	$ (2,671)
Benefit plan adjustments, net of income taxes of $278 and $399, respectively	474	672
Foreign currency translation adjustment	2,541	683
Comprehensive income (loss)	6,420	(1,316)
Less: Comprehensive income attributable to noncontrolling interest	(7)	(81)
Comprehensive income (loss) attributable to Twin Disc	$ 6,413	$ (1,397)

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) (Parentheticals) - USD ($) $ in Thousands	3 Months Ended
	Sep. 29, 2017	Sep. 30, 2016
Benefit plan adjustments, tax	$ 278	$ 399

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 29, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net income (loss)	$ 3,405	$ (2,671)
Adjustments to reconcile net income (loss) to net cash used by operating activities:
Depreciation and amortization	1,644	1,916
Restructuring expenses	190	219
Provision for deferred income taxes	(4,842)	(1,335)
Stock compensation expense and other non-cash changes, net	500	325
Net change in operating assets and liabilities	(2,328)	(1,115)
Net cash used by operating activities	(1,431)	(2,661)
Cash flows from investing activities:
Acquisitions of fixed assets	(1,467)	(525)
Proceeds from sale of fixed assets	17	8
Other, net	(129)	(129)
Net cash used by investing activities	(1,579)	(646)
Cash flows from financing activities:
Borrowings under revolving loan agreement	16,155	13,943
Repayments under revolving loan agreement	(14,236)	(12,751)
Dividends paid to noncontrolling interest	(172)	(109)
Tax shortfall from stock compensation		(133)
Payments of withholding taxes on stock compensation	(213)	(140)
Net cash provided by financing activities	1,534	810
Effect of exchange rate changes on cash	570	301
Net change in cash	(906)	(2,196)
Cash:
Beginning of period	16,367	18,273
End of period	$ 15,461	$ 16,077

Note A - Basis of Presentation

Note A - Basis of Presentation	3 Months Ended
	Sep. 29, 2017
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 10 June 30, 2017. not New Accounting Releases In March 2017, 2017 07 December 15, 2017, ( ’s fiscal 2019 In October 2016, 2016 16 December 15, 2017 ( ’s fiscal 2019 In August 2016, 2016 15 eight December 15, 2017 ( ’s fiscal 2019 In March 2016, 2016 09 first 2018. The adoption of this guidance did not In February 2016, 2016 02 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 December 15, 2018 (the Company’s fiscal 2020 In preparation for the adoption of this guidance, the Company gathered all active lease contracts from all its locations to assess whether or not not pany. The Company assessed the practical expedients that are allowed under the guidance, including the exclusion of lease contracts with terms of twelve The Company is continuing its assessment, including the potential operational process changes as a result of the new guidance. It plans to early-adopt the guidance, using the modified retrospective approach, to coincide with its adoption of the new revenue recognition guidance, which is the first 2019. In July 2015, 2015 11 first e Company adopted this guidance, prospectively, in the first 2018. not In May 2014, 2014 09 customers. This revenue recognition guidance supersedes existing guidance, including industry-specific guidance. The core principle is that an entity should recognize revenue to depict the transfer of control over 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 ( first 2019 In preparation for the adoption of this guidance, the Company gathered customer contracts and customer purchase orders of its various locations to assess whether there are separate and distinct performance obligations, as defined by ASU 2014 09, may may may not first 2019.

Note B - Inventories

Note B - Inventories	3 Months Ended
	Sep. 29, 2017
Notes to Financial Statements
Inventory Disclosure [Text Block]	B. Inventor ies The major classe s of inventories were as follows: September 29, 2017 June 30, 2017 Inventories: Finished parts $ 46,744 $ 45,829 Work in process 9,357 8,358 Raw materials 13,936 12,006 $ 70,037 $ 66,193

Note C - Warranty

Note C - Warranty	3 Months Ended
	Sep. 29, 2017
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 for the quarters ended September 29, 2017 September 30, 2016: For the Quarter Ended September 29, 2017 September 30, 2016 Reserve balance, beginning of period $ 2,062 $ 3,607 Current period expense 658 182 Payments or credits to customers (433 ) (762 ) Translation 39 9 Reserve balance, end of period $ 2,326 $ 3,036 The current portion of the warranty accrual ($ 1,968 $2,343 September 29, 2017 September 30, 2016, $358 $693 September 29, 2017 September 30, 2016,

Note D - Contingencies

Note D - Contingencies	3 Months Ended
	Sep. 29, 2017
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 not ’s results of operations, financial position or cash flows.

Note E - Business Segments

Note E - Business Segments	3 Months Ended
	Sep. 29, 2017
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 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 29, 2017 September 30, 2016 Net sales Manufacturing segment sales $ 39,872 $ 30,499 Distribution segment sales 17,662 15,395 Inter/Intra segment elimination – manufacturing (10,332 ) (8,126 ) Inter/Intra segment elimination – distribution (2,138 ) (1,933 ) $ 45,064 $ 35,835 Net income (loss) attributable to Twin Disc Manufacturing segment net income (loss) $ 5,067 $ (1,420 ) Distribution segment net earnings 669 271 Corporate and eliminations (2,344 ) (1,547 ) $ 3,392 $ (2,696 ) Assets September 29, 2017 June 30, 2017 Manufacturing segment assets $ 230,967 $ 222,136 Distribution segment assets 50,216 50,418 Corporate assets and elimination of intercompany assets (66,180 ) (61,656 ) $ 215,003 $ 210,898

Note F - Stock-based Compensati

Note F - Stock-based Compensation	3 Months Ended
	Sep. 29, 2017
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	F. Stock-Based Compensation Performance Stock Awards (“PSA”) During t he first 2018 2017, 54.9 99.6 2018 three June 30, 2020. 82.3. not not The fiscal 2017 three June 30, 2019. ’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 164.4. not There were 224.9 171.8 September 29, 2017 September 30, 2016, $15 September 29, 2017 September 30, 2016, September 29, 2017 $13.45. September 29, 2017, $2,896 2018, 2017 2016 September 29, 2017 September 30, 2016 $0 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 3 first 2018 2017, 65.8 101.3 309.5 218.0 September 29, 2017 September 30, 2016, $463 $326 September 29, 2017 September 30, 2016, September 29, 2017 September 30, 2016 $444 $265, September 29, 2017, $2,221 three

Note G - Pension and Other Post

Note G - Pension and Other Postretirement Benefit Plans	3 Months Ended
	Sep. 29, 2017
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 For the Quarter Ended September 29, 2017 September 30, 2016 Pension Benefits: Service cost $ 262 $ 221 Interest cost 1,074 1,125 Expected return on plan assets (1,525 ) (1,442 ) Amortization of transition obligation 9 9 Amortization of prior service cost 1 1 Amortization of actuarial net loss 759 899 Net periodic benefit cost $ 580 $ 813 Postretirement Benefits: Service cost $ 5 $ 6 Interest cost 92 122 Amortization of actuarial net loss 3 182 Net periodic benefit cost $ 100 $ 310 The Company expect s to contribute approximately $2,265 2018. September 29, 2017, $771 The Company has reclassified $474 $278 September 29, 2017, $672 $399 September 30, 2016.

Note H - Income Taxes

Note H - Income Taxes	3 Months Ended
	Sep. 29, 2017
Notes to Financial Statements
Income Tax Disclosure [Text Block]	H. Income Taxes For the quarters ended September 29, 2017 September 30, 2016, ’s effective income tax rate was 371.8% 28.3% $3,803 303.5%. $308 20.3%. $461, 30.5%. The Company maintains valuation allowances when it is more likely than not not that have occurred during the quarter, the Company updated its evaluation of the realizability of the net deferred tax assets related to that certain foreign jurisdiction. Based on this evaluation, along with expected future earnings, management has concluded that the valuation allowance is no first 2018. The Company has not 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 $ 888 September 29, 2017 no September 29, 2017. twelve 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 2017 2015. 2010 2015. 2015 no 2018.

Note I - Goodwill and Other Int

Note I - Goodwill and Other Intangibles	3 Months Ended
	Sep. 29, 2017
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 . 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 may As of September 29, 2017 and June 30, 2017, For the quarter ended September 29, 2017, no not not September 29, 2017. June 30, 2018. The changes in t he carrying amount of goodwill are summarized as follows: Net Book Value Rollforward Gross Carrying Amount Accumulated Impairment Net Book Value Balance at June 30, 2017 $ 16,407 $ (13,822 ) $ 2,585 Translation adjustment 172 - 172 Balance at September 29, 2017 $ 16,579 $ (13,822 ) $ 2,757 At September 29, 2017, Net Book Value Rollforward Net Book Value By Asset Type Gross Carrying Amount Accumulated Amortization / Impairment Net Book Value Licensing agreements Trade Name Other Balance at June 30, 2017 $ 13,436 $ (11,632 ) $ 1,804 $ 390 $ 1,319 $ 95 Addition 7 - 7 - - 7 Amortization - (44 ) (44 ) (15 ) (22 ) (7 ) Translation adjustment 94 - 94 - 87 7 Balance at September 29, 2017 $ 13,537 $ (11,676 ) $ 1,861 $ 375 $ 1,384 $ 102 The weighted average remaining useful life of the intangible assets included in the table above is approximately 13 Intangible amortization expense was $ 44 $43 September 29, 2017, September 30, 2016, 2018 five Fiscal Year 2018 $ 169 2019 185 2020 170 2021 153 2022 149 2023 148 The gross carrying amount of the Company ’s intangible assets that have indefinite lives and are not September 29, 2017 June 30, 2017 $209 $205,

Note J - Long-term Debt

Note J - Long-term Debt	3 Months Ended
	Sep. 29, 2017
Notes to Financial Statements
Debt Disclosure [Text Block]	J. Long-term Debt L ong-term debt at September 29, 2017 June 30, 2017 September 29, 2017 June 30, 2017 Revolving loan $ 8,205 $ 6,285 Other 39 38 Subtotal 8,244 6,323 Less: current maturities and short-term borrowings - - Total long-term debt $ 8,244 $ 6,323 The revolving loan agreement pertains to the revolving loan facility which the Company entered into on April 22, 2016 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 29, 2017, $27,174, $18,033 September 29, 2017, 2.99%. The Company ’s revolving loan agreement approximates fair value at September 29, 2017 June 30, 2017. 2

Note K - Shareholders' Equity

Note K - Shareholders' Equity	3 Months Ended
	Sep. 29, 2017
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 September 29, 2017 not September 29, 2017 September 30, 2016. The following is a reconciliation of the Company ’s equity balances for the first 2018 2017: Twin Disc, Inc. Shareholders ’ Equity Accumulated Other Non- Common Retained Comprehensive Treasury Controlling Total Stock Earnings Income (Loss) Stock Interest Equity Balance, June 30, 2017 $ 10,429 $ 169,368 $ (32,671 ) $ (24,205 ) $ 646 $ 123,567 Net income 3,392 13 3,405 Translation adjustments 2,547 (6 ) 2,541 Benefit plan adjustments, net of tax 474 474 Cash dividends (172 ) (172 ) Compensation expense 479 479 Shares (acquired) issued, net (1,030 ) 817 (213 ) Balance, September 29, 2017 $ 9,878 $ 172,760 $ (29,650 ) $ (23,388 ) $ 481 $ 130,081 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 tax shortfall 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 R econciliations for the changes in accumulated other comprehensive income (loss), net of tax, by component for the quarters ended September 29, 2017 September 30, 2016 Translation Benefit Plan Adjustment Adjustment Balance at June 30, 2017 $ 6,130 $ (38,801 ) Translation adjustment during the quarter 2,547 - Amounts reclassified from accumulated other comprehensive income - 474 Net current period other comprehensive income 2,547 474 Balance at September 29, 2017 $ 8,677 $ (38,327 ) 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 income 627 672 Balance at September 30, 2016 $ 5,785 $ (48,629 ) Reconciliation for the reclassifications out of accumulated other comprehensive income (loss), net of tax for the quarter ended September 29, 2017 Amount Reclassified Quarter Ended September 29, 2017 Amortization of benefit plan items Actuarial losses $ 742 (a) Transition asset and prior service benefit 10 (a) Total before tax benefit 752 Tax benefit 278 Total reclassification net of tax $ 474 (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 f or the reclassifications out of accumulated other comprehensive income (loss), net of tax for the quarter ended September 30, 2016 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).

Note L - Restructuring of Opera

Note L - Restructuring of Operations	3 Months Ended
	Sep. 29, 2017
Notes to Financial Statements
Restructuring, Impairment, and Other Activities Disclosure [Text Block]	L. Restructuring of Operations The Company has implemented various restructuring programs in response to unfavorable macroeconomic trends in certain of the Company ’s markets since the fourth 2015. During the current quarter, the Company implemented additional actions to reduce personnel costs in its Belgian operations and reorganize for productivity in its European operations. These actions, together with the costs associated with the India manufacturing operations exit, resulted in a restructuring charge of $1,218 September 29, 2017. September 30, 2016, $258 Restructuring activities since June 2015 resulted in the elimination of 162 September 29, 2017 $7,093. The following is a roll-forward of restructuring activity: Accrued restructuring liability, June 30, 2017 $ 92 Additions during the year 1,218 Payments and adjustments (1,190 ) Accrued restructuring liability, September 29, 2017 $ 120

Note M - Earnings Per Share

Note M - Earnings Per Share	3 Months Ended
	Sep. 29, 2017
Notes to Financial Statements
Earnings Per Share [Text Block]	M. Earnings Per Share The Company calculates basic earnings per share based upon the weighted average number of common shares outstanding during the period, while the calculation of diluted earnings per share includes the dilutive effect of potential common shares outstanding during the period. The calculation of diluted earnings per share excludes all potential common shares if their inclusion would have an anti-dilutive effect. Restricted stock award recipients have a non-forfeitable right to receive dividends declared by the Company, and are therefore included in computing earnings per share pursuant to the two The components of basic and diluted earnings per share were as follows: For the Quarter Ended September 29, 2017 September 30, 2016 Basic: Net income (loss) $ 3,405 $ (2,671 ) Less: Net earnings attributable to noncontrolling interest (13 ) (25 ) Less: Undistributed earnings attributable to unvested shares (85 ) - Net income (loss) available to Twin Disc shareholders 3,307 (2,696 ) Weighted average shares outstanding - basic 11,256 11,217 Basic Earnings Per Share: Net income (loss) per share - basic $ 0.29 $ (0.24 ) Diluted: Net income (loss) $ 3,405 $ (2,671 ) Less: Net earnings attributable to noncontrolling interest (13 ) (25 ) Less: Undistributed earnings attributable to unvested shares (85 ) - Net income (loss) available to Twin Disc shareholders 3,307 (2,696 ) Weighted average shares outstanding - basic 11,256 11,217 Effect of dilutive stock awards 3 - Weighted average shares outstanding - diluted 11,259 11,217 Diluted Earnings Per Share: Net income (loss) per share - diluted $ 0.29 $ (0.24 ) For the quarters ended September 29, 2017 September 30, 2016, 9,906 16,800

Significant Accounting Policies

Significant Accounting Policies (Policies)	3 Months Ended
	Sep. 29, 2017
Accounting Policies [Abstract]
New Accounting Pronouncements, Policy [Policy Text Block]	New Accounting Releases In March 2017, 2017 07 December 15, 2017, ( ’s fiscal 2019 In October 2016, 2016 16 December 15, 2017 ( ’s fiscal 2019 In August 2016, 2016 15 eight December 15, 2017 ( ’s fiscal 2019 In March 2016, 2016 09 first 2018. The adoption of this guidance did not In February 2016, 2016 02 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 December 15, 2018 (the Company’s fiscal 2020 In preparation for the adoption of this guidance, the Company gathered all active lease contracts from all its locations to assess whether or not not pany. The Company assessed the practical expedients that are allowed under the guidance, including the exclusion of lease contracts with terms of twelve The Company is continuing its assessment, including the potential operational process changes as a result of the new guidance. It plans to early-adopt the guidance, using the modified retrospective approach, to coincide with its adoption of the new revenue recognition guidance, which is the first 2019. In July 2015, 2015 11 first e Company adopted this guidance, prospectively, in the first 2018. not In May 2014, 2014 09 customers. This revenue recognition guidance supersedes existing guidance, including industry-specific guidance. The core principle is that an entity should recognize revenue to depict the transfer of control over 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 ( first 2019 In preparation for the adoption of this guidance, the Company gathered customer contracts and customer purchase orders of its various locations to assess whether there are separate and distinct performance obligations, as defined by ASU 2014 09, may may may not first 2019.

Note B - Inventories (Tables)

Note B - Inventories (Tables)	3 Months Ended
	Sep. 29, 2017
Notes Tables
Schedule of Inventory, Current [Table Text Block]	September 29, 2017 June 30, 2017 Inventories: Finished parts $ 46,744 $ 45,829 Work in process 9,357 8,358 Raw materials 13,936 12,006 $ 70,037 $ 66,193

Note C - Warranty (Tables)

Note C - Warranty (Tables)	3 Months Ended
	Sep. 29, 2017
Notes Tables
Schedule of Product Warranty Liability [Table Text Block]	For the Quarter Ended September 29, 2017 September 30, 2016 Reserve balance, beginning of period $ 2,062 $ 3,607 Current period expense 658 182 Payments or credits to customers (433 ) (762 ) Translation 39 9 Reserve balance, end of period $ 2,326 $ 3,036

Note E - Business Segments (Tab

Note E - Business Segments (Tables)	3 Months Ended
	Sep. 29, 2017
Notes Tables
Reconciliation of Revenue from Segments to Consolidated [Table Text Block]	For the Quarter Ended September 29, 2017 September 30, 2016 Net sales Manufacturing segment sales $ 39,872 $ 30,499 Distribution segment sales 17,662 15,395 Inter/Intra segment elimination – manufacturing (10,332 ) (8,126 ) Inter/Intra segment elimination – distribution (2,138 ) (1,933 ) $ 45,064 $ 35,835 Net income (loss) attributable to Twin Disc Manufacturing segment net income (loss) $ 5,067 $ (1,420 ) Distribution segment net earnings 669 271 Corporate and eliminations (2,344 ) (1,547 ) $ 3,392 $ (2,696 )
Reconciliation of Assets from Segment to Consolidated [Table Text Block]	Assets September 29, 2017 June 30, 2017 Manufacturing segment assets $ 230,967 $ 222,136 Distribution segment assets 50,216 50,418 Corporate assets and elimination of intercompany assets (66,180 ) (61,656 ) $ 215,003 $ 210,898

Note G - Pension and Other Po24

Note G - Pension and Other Postretirement Benefit Plans (Tables)	3 Months Ended
	Sep. 29, 2017
Notes Tables
Schedule of Net Benefit Costs [Table Text Block]	For the Quarter Ended September 29, 2017 September 30, 2016 Pension Benefits: Service cost $ 262 $ 221 Interest cost 1,074 1,125 Expected return on plan assets (1,525 ) (1,442 ) Amortization of transition obligation 9 9 Amortization of prior service cost 1 1 Amortization of actuarial net loss 759 899 Net periodic benefit cost $ 580 $ 813 Postretirement Benefits: Service cost $ 5 $ 6 Interest cost 92 122 Amortization of actuarial net loss 3 182 Net periodic benefit cost $ 100 $ 310

Note I - Goodwill and Other I25

Note I - Goodwill and Other Intangibles (Tables)	3 Months Ended
	Sep. 29, 2017
Notes Tables
Schedule of Goodwill [Table Text Block]	Net Book Value Rollforward Gross Carrying Amount Accumulated Impairment Net Book Value Balance at June 30, 2017 $ 16,407 $ (13,822 ) $ 2,585 Translation adjustment 172 - 172 Balance at September 29, 2017 $ 16,579 $ (13,822 ) $ 2,757
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block]	Net Book Value Rollforward Net Book Value By Asset Type Gross Carrying Amount Accumulated Amortization / Impairment Net Book Value Licensing agreements Trade Name Other Balance at June 30, 2017 $ 13,436 $ (11,632 ) $ 1,804 $ 390 $ 1,319 $ 95 Addition 7 - 7 - - 7 Amortization - (44 ) (44 ) (15 ) (22 ) (7 ) Translation adjustment 94 - 94 - 87 7 Balance at September 29, 2017 $ 13,537 $ (11,676 ) $ 1,861 $ 375 $ 1,384 $ 102
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]	Fiscal Year 2018 $ 169 2019 185 2020 170 2021 153 2022 149 2023 148

Note J - Long-term Debt (Tables

Note J - Long-term Debt (Tables)	3 Months Ended
	Sep. 29, 2017
Notes Tables
Schedule of Debt [Table Text Block]	September 29, 2017 June 30, 2017 Revolving loan $ 8,205 $ 6,285 Other 39 38 Subtotal 8,244 6,323 Less: current maturities and short-term borrowings - - Total long-term debt $ 8,244 $ 6,323

Note K - Shareholders' Equity (

Note K - Shareholders' Equity (Tables)	3 Months Ended
	Sep. 29, 2017
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, 2017 $ 10,429 $ 169,368 $ (32,671 ) $ (24,205 ) $ 646 $ 123,567 Net income 3,392 13 3,405 Translation adjustments 2,547 (6 ) 2,541 Benefit plan adjustments, net of tax 474 474 Cash dividends (172 ) (172 ) Compensation expense 479 479 Shares (acquired) issued, net (1,030 ) 817 (213 ) Balance, September 29, 2017 $ 9,878 $ 172,760 $ (29,650 ) $ (23,388 ) $ 481 $ 130,081 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 tax shortfall 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
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, 2017 $ 6,130 $ (38,801 ) Translation adjustment during the quarter 2,547 - Amounts reclassified from accumulated other comprehensive income - 474 Net current period other comprehensive income 2,547 474 Balance at September 29, 2017 $ 8,677 $ (38,327 ) 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 income 627 672 Balance at September 30, 2016 $ 5,785 $ (48,629 )
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]	Amount Reclassified Quarter Ended September 29, 2017 Amortization of benefit plan items Actuarial losses $ 742 (a) Transition asset and prior service benefit 10 (a) Total before tax benefit 752 Tax benefit 278 Total reclassification net of tax $ 474 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

Note L - Restructuring of Ope28

Note L - Restructuring of Operations (Tables)	3 Months Ended
	Sep. 29, 2017
Notes Tables
Restructuring and Related Costs [Table Text Block]	Accrued restructuring liability, June 30, 2017 $ 92 Additions during the year 1,218 Payments and adjustments (1,190 ) Accrued restructuring liability, September 29, 2017 $ 120

Note M - Earnings Per Share (Ta

Note M - Earnings Per Share (Tables)	3 Months Ended
	Sep. 29, 2017
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	For the Quarter Ended September 29, 2017 September 30, 2016 Basic: Net income (loss) $ 3,405 $ (2,671 ) Less: Net earnings attributable to noncontrolling interest (13 ) (25 ) Less: Undistributed earnings attributable to unvested shares (85 ) - Net income (loss) available to Twin Disc shareholders 3,307 (2,696 ) Weighted average shares outstanding - basic 11,256 11,217 Basic Earnings Per Share: Net income (loss) per share - basic $ 0.29 $ (0.24 ) Diluted: Net income (loss) $ 3,405 $ (2,671 ) Less: Net earnings attributable to noncontrolling interest (13 ) (25 ) Less: Undistributed earnings attributable to unvested shares (85 ) - Net income (loss) available to Twin Disc shareholders 3,307 (2,696 ) Weighted average shares outstanding - basic 11,256 11,217 Effect of dilutive stock awards 3 - Weighted average shares outstanding - diluted 11,259 11,217 Diluted Earnings Per Share: Net income (loss) per share - diluted $ 0.29 $ (0.24 )

Note B - Inventories - Inventor

Note B - Inventories - Inventories (Details) - USD ($) $ in Thousands	Sep. 29, 2017	Jun. 30, 2017
Inventories:
Finished parts	$ 46,744	$ 45,829
Work in process	9,357	8,358
Raw materials	13,936	12,006
Total inventories	$ 70,037	$ 66,193

Note C - Warranty (Details Text

Note C - Warranty (Details Textual) - USD ($) $ in Thousands	Sep. 29, 2017	Sep. 30, 2016
Product Warranty Accrual, Current	$ 1,968	$ 2,343
Product Warranty Accrual, Noncurrent	$ 358	$ 693

Note C - Warranty - Warranty (D

Note C - Warranty - Warranty (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 29, 2017	Sep. 30, 2016
Reserve balance, beginning of period	$ 2,062	$ 3,607
Current period expense	658	182
Payments or credits to customers	(433)	(762)
Translation	39	9
Reserve balance, end of period	$ 2,326	$ 3,036

Note E - Business Segments (Det

Note E - Business Segments (Details Textual)	3 Months Ended
	Sep. 29, 2017
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. 29, 2017	Sep. 30, 2016
Net sales	$ 45,064	$ 35,835
Manufacturing segment net income (loss)	3,392	(2,696)
Corporate, Non-Segment [Member]
Manufacturing segment net income (loss)	(2,344)	(1,547)
Manufacturing Segment [Member] | Operating Segments [Member]
Net sales	39,872	30,499
Manufacturing segment net income (loss)	5,067	(1,420)
Manufacturing Segment [Member] | Intersegment Eliminations [Member]
Net sales	(10,332)	(8,126)
Distribution Segment [Member] | Operating Segments [Member]
Net sales	17,662	15,395
Manufacturing segment net income (loss)	669	271
Distribution Segment [Member] | Intersegment Eliminations [Member]
Net sales	$ (2,138)	$ (1,933)

Note E - Business Segments - As

Note E - Business Segments - Assets by Segment (Details) - USD ($) $ in Thousands	Sep. 29, 2017	Jun. 30, 2017
Segment Assets	$ 215,003	$ 210,898
Operating Segments [Member] | Manufacturing Segment [Member]
Segment Assets	230,967	222,136
Operating Segments [Member] | Distribution Segment [Member]
Segment Assets	50,216	50,418
Corporate, Non-Segment [Member]
Segment Assets	$ (66,180)	$ (61,656)

Note F - Stock-based Compensa36

Note F - Stock-based Compensation (Details Textual) - USD ($)	3 Months Ended		12 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Jun. 30, 2016	Jun. 30, 2017
Performance Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	54,900	99,600
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	82,300			164,400
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	224,900	171,800
Allocated Share-based Compensation Expense	$ 15,000	$ 15,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value	$ 13.45
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 2,896
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value	$ 0	$ 0
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	65,800	101,300
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	309,500	218,000
Allocated Share-based Compensation Expense	$ 463,000	$ 326,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	2,221,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value	$ 444,000	$ 265,000
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

Note G - Pension and Other Po37

Note G - Pension and Other Postretirement Benefit Plans (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Sep. 29, 2017	Sep. 30, 2016
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, after Tax	$ 474	$ 672
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, Tax	278	$ 399
Pension Plan [Member]
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year	2,265
Defined Benefit Plan, Plan Assets, Contributions by Employer	$ 771

Note G - Pension and Other Po38

Note G - Pension and Other Postretirement Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 29, 2017	Sep. 30, 2016
Pension Plan [Member]
Service cost	$ 262	$ 221
Interest cost	1,074	1,125
Expected return on plan assets	(1,525)	(1,442)
Amortization of transition obligation	9	9
Amortization of prior service cost	1	1
Amortization of actuarial net loss	759	899
Net periodic benefit cost	580	813
Other Postretirement Benefits Plan [Member]
Service cost	5	6
Interest cost	92	122
Amortization of actuarial net loss	3	182
Net periodic benefit cost	$ 100	$ 310

Note H - Income Taxes (Details

Note H - Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Sep. 29, 2017	Sep. 30, 2016
Effective Income Tax Rate Reconciliation, Percent	371.80%	28.30%
Effective Income Tax Rate Reconciliation, Tax Credit, Amount	$ 308
Effective Income Tax Rate Reconciliation, Tax Credit, Percent	20.30%
Effective Income Tax Rate Reconciliation, Mix of Earnings by Jurisdiction, Amount	$ 461
Effective Income Tax Rate Reconciliation, Mix of Earnings by Jurisdiction, Percent	30.50%
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	$ 888
Foreign Tax Authority [Member]
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount	$ (3,803)
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent	303.50%
Foreign Tax Authority [Member] | Earliest Tax Year [Member]
Open Tax Year	2,011
Foreign Tax Authority [Member] | Latest Tax Year [Member]
Open Tax Year	2,017
Domestic Tax Authority [Member] | Earliest Tax Year [Member]
Open Tax Year	2,015
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

Note I - Goodwill and Other I40

Note I - Goodwill and Other Intangibles (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Jun. 30, 2017
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	13 years
Amortization of Intangible Assets	$ 44	$ 43
Indefinite-Lived Intangible Assets (Excluding Goodwill)	209		$ 205
Industrial [Member] | Europe [Member]
Goodwill, Impairment Loss	$ 0

Note I - Goodwill and Other I41

Note I - Goodwill and Other Intangibles - Goodwill Rollforward (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 29, 2017	Jun. 29, 2017
Balance, gross carrying amount	$ 16,407
Translation adjustment	172
Balance, gross carrying amount	16,579
Balance, accumulated impairment	(13,822)	$ (13,822)
Balance, net book value	2,585
Translation adjustment	172
Balance, net book value	$ 2,757

Note I - Goodwill and Other I42

Note I - Goodwill and Other Intangibles - Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 29, 2017	Sep. 30, 2016
Balance, Gross Carrying Amount	$ 13,436
Addition, Gross Carrying Amount	7
Translation adjustment, Gross Carrying Amount	94
Balance, Gross Carrying Amount	13,537
Balance, Accumulated Amortization/Impairment	(11,632)
Amortization	(44)	$ (43)
Balance, Accumulated Amortization/Impairment	(11,676)
Balance, Net Book Value	1,804
Addition, Net Book Value	7
Amortization	(44)	$ (43)
Translation adjustment, Net Book Value	94
Balance, Net Book Value	1,861
Licensing Agreements [Member]
Amortization	(15)
Balance, Net Book Value	390
Addition, Net Book Value
Amortization	(15)
Translation adjustment, Net Book Value
Balance, Net Book Value	375
Trade Names [Member]
Amortization	(22)
Balance, Net Book Value	1,319
Addition, Net Book Value
Amortization	(22)
Translation adjustment, Net Book Value	87
Balance, Net Book Value	1,384
Other Intangible Assets [Member]
Amortization	(7)
Balance, Net Book Value	95
Addition, Net Book Value	7
Amortization	(7)
Translation adjustment, Net Book Value	7
Balance, Net Book Value	$ 102

Note I - Goodwill and Other I43

Note I - Goodwill and Other Intangibles - Estimated Intangibles (Details) $ in Thousands	Sep. 29, 2017USD ($)
2,018	$ 169
2,019	185
2,020	170
2,021	153
2,022	149
2,023	$ 148

Note J - Long-term Debt (Detail

Note J - Long-term Debt (Details Textual) - Revolving Loan [Member] - Bank of Montreal [Member] $ in Thousands	Sep. 29, 2017USD ($)
Line of Credit Facility, Current Borrowing Capacity	$ 27,174
Line of Credit Facility, Remaining Borrowing Capacity	$ 18,033
Line of Credit Facility, Interest Rate at Period End	2.99%

Note J - Long-term Debt - Long-

Note J - Long-term Debt - Long-term Debt (Details) - USD ($) $ in Thousands	Sep. 29, 2017	Jun. 30, 2017
Long-term debt	$ 8,244	$ 6,323
Less: current maturities and short-term borrowings
Total long-term debt	8,244	6,323
Revolving Loan [Member]
Long-term debt	8,205	6,285
Other Long-Term Debt [Member]
Long-term debt	$ 39	$ 38

Note K - Shareholders' Equity46

Note K - Shareholders' Equity (Details Textual) - shares	3 Months Ended
	Sep. 29, 2017	Sep. 30, 2016
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased	315
Treasury Stock, Shares, Acquired	0	0

Note K - Shareholders' Equity -

Note K - Shareholders' Equity - Shareholders' Equity Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 29, 2017	Sep. 30, 2016
Balance	$ 123,567	$ 117,053
Net income (loss)	3,405	(2,671)
Translation adjustments	2,541	683
Benefit plan adjustments, net of tax	474	672
Cash dividends	(172)	(109)
Compensation expense and tax shortfall	479	208
Shares (acquired) issued, net	(213)	(140)
Balance	130,081	115,696
Common Stock [Member]
Balance	10,429	11,761
Net income (loss)
Translation adjustments
Benefit plan adjustments, net of tax
Cash dividends
Compensation expense and tax shortfall	479	208
Shares (acquired) issued, net	(1,030)	(1,493)
Balance	9,878	10,476
Retained Earnings [Member]
Balance	169,368	175,662
Net income (loss)	3,392	(2,696)
Translation adjustments
Benefit plan adjustments, net of tax
Cash dividends
Compensation expense and tax shortfall
Shares (acquired) issued, net
Balance	172,760	172,966
AOCI Attributable to Parent [Member]
Balance	(32,671)	(44,143)
Net income (loss)
Translation adjustments	2,547	627
Benefit plan adjustments, net of tax	474	672
Cash dividends
Compensation expense and tax shortfall
Shares (acquired) issued, net
Balance	(29,650)	(42,844)
Treasury Stock [Member]
Balance	(24,205)	(26,790)
Net income (loss)
Translation adjustments
Benefit plan adjustments, net of tax
Cash dividends
Compensation expense and tax shortfall
Shares (acquired) issued, net	817	1,353
Balance	(23,388)	(25,437)
Noncontrolling Interest [Member]
Balance	646	563
Net income (loss)	13	25
Translation adjustments	(6)	56
Benefit plan adjustments, net of tax
Cash dividends	(172)	(109)
Compensation expense and tax shortfall
Shares (acquired) issued, net
Balance	$ 481	$ 535

Note K - Shareholders' Equity48

Note K - Shareholders' Equity - Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 29, 2017	Sep. 30, 2016
Balance	$ 123,567	$ 117,053
Balance	130,081	115,696
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Balance	6,130	5,158
Translation adjustment during the quarter	2,547	627
Amounts reclassified from accumulated other comprehensive income
Net current period other comprehensive income	2,547	627
Balance	8,677	5,785
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Balance	(38,801)	(49,301)
Translation adjustment during the quarter
Amounts reclassified from accumulated other comprehensive income	474	672
Net current period other comprehensive income	474	672
Balance	$ (38,327)	$ (48,629)

Note K - Shareholders' Equity49

Note K - Shareholders' Equity - Reconciliation for the Reclassifications Out of Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($) $ in Thousands		3 Months Ended
		Sep. 29, 2017	Sep. 30, 2016
Income tax benefit		$ (4,658)	$ (1,052)
Net income (loss)		3,405	(2,671)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Actuarial losses	[1]	742	1,061
Transition asset and prior service benefit	[1]	10	10
Total before tax benefit		752	1,071
Income tax benefit		278	399
Net income (loss)		$ 474	$ 672
[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 Ope50

Note L - Restructuring of Operations (Details Textual) $ in Thousands	3 Months Ended		28 Months Ended
	Sep. 29, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 29, 2017USD ($)
Restructuring Charges	$ 1,218	$ 258	$ 7,093
Restructuring and Related Cost, Number of Positions Eliminated			162

Note L - Restructuring of Ope51

Note L - Restructuring of Operations - Roll-forward of Restructuring Activity (Details) - USD ($) $ in Thousands	3 Months Ended		28 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017
Accrued restructuring liability	$ 92
Additions during the year	1,218	$ 258	$ 7,093
Payments and adjustments	(1,190)
Accrued restructuring liability	$ 120		$ 120

Note M - Earnings Per Share (De

Note M - Earnings Per Share (Details Textual) - shares shares in Thousands	3 Months Ended
	Sep. 29, 2017	Sep. 30, 2016
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	9,906	16,800

Note M - Earnings Per Share - C

Note M - Earnings Per Share - Components of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 29, 2017	Sep. 30, 2016
Basic:
Net income (loss)	$ 3,405	$ (2,671)
Less: Net earnings attributable to noncontrolling interest	(13)	(25)
Less: Undistributed earnings attributable to unvested shares	(85)
Net income (loss) available to Twin Disc shareholders	$ 3,307	$ (2,696)
Weighted average shares outstanding - basic (in shares)	11,256	11,217
Basic Earnings Per Share:
Net income (loss) per share - basic (in dollars per share)	$ 0.29	$ (0.24)
Diluted:
Net income (loss)	$ 3,405	$ (2,671)
Less: Net earnings attributable to noncontrolling interest	(13)	(25)
Less: Undistributed earnings attributable to unvested shares	(85)
Net income (loss) available to Twin Disc shareholders	$ 3,307	$ (2,696)
Weighted average shares outstanding - basic (in shares)	11,256	11,217
Effect of dilutive stock awards (in shares)	3
Weighted average shares outstanding - diluted (in shares)	11,259	11,217
Diluted Earnings Per Share:
Net income (loss) per share - diluted (in dollars per share)	$ 0.29	$ (0.24)