Twin Disc (TWIN) 10-Q 6 Feb 18 2018 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Dec. 29, 2017	Feb. 02, 2018
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)		11,584,892
Document Type	10-Q
Document Period End Date	Dec. 29, 2017
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Dec. 29, 2017	Jun. 30, 2017
Current assets:
Cash	$ 15,766	$ 16,367
Trade accounts receivable, net	29,214	31,392
Inventories	74,037	66,193
Prepaid expenses	7,683	8,295
Other	7,979	7,187
Total current assets	134,679	129,434
Property, plant and equipment, net	47,820	48,212
Deferred income taxes	21,462	24,198
Goodwill, net	2,759	2,585
Intangible assets, net	2,032	2,009
Other assets	4,434	4,460
Total assets	213,186	210,898
Current liabilities:
Accounts payable	23,404	21,301
Accrued liabilities	23,335	23,222
Total current liabilities	46,739	44,523
Long-term debt	4,684	6,323
Accrued retirement benefits	30,463	33,706
Deferred income taxes	976	1,011
Other long-term liabilities	1,675	1,768
Total liabilities	84,537	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	10,086	10,429
Retained earnings	168,646	169,368
Accumulated other comprehensive loss	(27,427)	(32,671)
Equity before treasury stock	151,305	147,126
Less treasury stock, at cost (1,514,576 and 1,580,335 shares, respectively)	23,199	24,205
Total Twin Disc shareholders' equity	128,106	122,921
Noncontrolling interest	543	646
Total equity	128,649	123,567
Total liabilities and equity	$ 213,186	$ 210,898

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares $ / shares in Thousands	Dec. 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)	1,514,576	1,580,335

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 29, 2017	Dec. 30, 2016	Dec. 29, 2017	Dec. 30, 2016
Net sales	$ 56,546	$ 33,672	$ 101,611	$ 69,507
Cost of goods sold	38,420	24,723	69,590	51,385
Gross profit	18,126	8,949	32,021	18,122
Marketing, engineering and administrative expenses	15,268	12,560	28,936	25,035
Restructuring expenses	831	816	2,049	1,074
Income (loss) from operations	2,027	(4,427)	1,036	(7,987)
Interest expense	83	122	147	175
Other expense (income), net	69	(456)	268	(346)
Non-operating income (expense)	152	(334)	415	(171)
Income (loss) before income taxes and noncontrolling interest	1,875	(4,093)	621	(7,816)
Income tax expense (benefit)	5,925	(1,201)	1,267	(2,253)
Net loss	(4,050)	(2,892)	(646)	(5,563)
Less: Net earnings attributable to noncontrolling interest, net of tax	(63)	(20)	(76)	(45)
Net loss attributable to Twin Disc	$ (4,113)	$ (2,912)	$ (722)	$ (5,608)
Loss per share data:
Net loss per share - basic (in dollars per share)	$ (0.36)	$ (0.26)	$ (0.06)	$ (0.50)
Net loss per share - diluted (in dollars per share)	$ (0.36)	$ (0.26)	$ (0.06)	$ (0.50)
Weighted average shares outstanding data:
Basic shares outstanding (in shares)	11,297	11,242	11,278	11,231
Diluted shares outstanding (in shares)	11,297	11,242	11,278	11,231
Comprehensive (loss) income:
Net loss	$ (4,050)	$ (2,892)	$ (646)	$ (5,563)
Benefit plan adjustments, net of income taxes of $674, $399, $952 and $798, respectively	1,734	750	2,208	1,422
Foreign currency translation adjustment	488	(4,198)	3,029	(3,515)
Comprehensive (loss) income	(1,828)	(6,340)	4,591	(7,656)
Less: Comprehensive income attributable to noncontrolling interest	(62)	(31)	(69)	(112)
Comprehensive (loss) income attributable to Twin Disc	$ (1,890)	$ (6,371)	$ 4,522	$ (7,768)

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited) (Parentheticals) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 29, 2017	Dec. 30, 2016	Dec. 29, 2017	Dec. 30, 2016
Benefit plan adjustments, tax	$ 674	$ 399	$ 952	$ 798

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Dec. 29, 2017	Dec. 30, 2016
Cash flows from operating activities:
Net loss	$ (646)	$ (5,563)
Adjustments to reconcile net loss to net cash provided (used) by operating activities:
Depreciation and amortization	3,263	3,680
Restructuring expenses	162	174
Provision for deferred income taxes	1,613	(2,580)
Stock compensation expense and other non-cash changes, net	1,064	720
Net change in operating assets and liabilities	(1,644)	1,130
Net cash provided (used) by operating activities	3,812	(2,439)
Cash flows from investing activities:
Acquisitions of fixed assets	(3,013)	(1,094)
Proceeds from sale of fixed assets	79	9
Other, net	(129)	(129)
Net cash used by investing activities	(3,063)	(1,214)
Cash flows from financing activities:
Borrowings under revolving loan agreement	35,315	26,948
Repayments under revolving loan agreement	(36,957)	(27,666)
Dividends paid to noncontrolling interest	(172)	(109)
Tax shortfall from stock compensation		(153)
Payments of withholding taxes on stock compensation	(400)	(140)
Net cash used by financing activities	(2,214)	(1,120)
Effect of exchange rate changes on cash	864	(509)
Net change in cash	(601)	(5,282)
Cash:
Beginning of period	16,367	18,273
End of period	$ 15,766	$ 12,991

Note A - Basis of Presentation

Note A - Basis of Presentation	6 Months Ended
	Dec. 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	6 Months Ended
	Dec. 29, 2017
Notes to Financial Statements
Inventory Disclosure [Text Block]	B. Inventor ies The major classe s of inventories were as follows: December 29, 2017 June 30, 2017 Inventories: Finished parts $ 49,052 $ 45,829 Work in process 10,141 8,358 Raw materials 14,844 12,006 $ 74,037 $ 66,193

Note C - Warranty

Note C - Warranty	6 Months Ended
	Dec. 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 quarter and two December 29, 2017 December 30, 2016: For the Quarter Ended For the Two Quarters Ended December 29, 2017 December 30, 2016 December 29, 2017 December 30, 2016 Reserve balance, beginning of period $ 2,326 $ 3,036 $ 2,062 $ 3,607 Current period expense 723 61 1,381 243 Payments or credits to customers (589 ) (506 ) (1,022 ) (1,268 ) Translation 7 (49 ) 46 (40 ) Reserve balance, end of period $ 2,467 $ 2,542 $ 2,467 $ 2,542 The current portion of the warranty accrual ($ 2,032 $2,063 December 29, 2017 December 30, 2016, $435 $479 December 29, 2017 December 30, 2016,

Note D - Contingencies

Note D - Contingencies	6 Months Ended
	Dec. 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	6 Months Ended
	Dec. 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 For the Two Quarters Ended December 29, 2017 December 30, 2016 December 29, 2017 December 30, 2016 Net sales Manufacturing segment sales $ 48,580 $ 29,472 $ 88,453 $ 59,971 Distribution segment sales 21,336 14,291 38,998 29,686 Inter/Intra segment elimination – manufacturing (9,489 ) (8,229 ) (19,821 ) (16,355 ) Inter/Intra segment elimination – distribution (3,881 ) (1,862 ) (6,019 ) (3,795 ) $ 56,546 $ 33,672 $ 101,611 $ 69,507 Net income (loss) attributable to Twin Disc Manufacturing segment net income (loss) $ 123 $ (1,459 ) $ 5,190 $ (2,879 ) Distribution segment net income 387 496 1,056 767 Corporate and eliminations (4,623 ) (1,949 ) (6,968 ) (3,496 ) $ (4,113 ) $ (2,912 ) $ (722 ) $ (5,608 ) Assets December 29, 2017 June 30, 2017 Manufacturing segment assets $ 229,835 $ 222,136 Distribution segment assets 51,557 50,418 Corporate assets and elimination of intercompany assets (68,206 ) (61,656 ) $ 213,186 $ 210,898

Note F - Stock-based Compensati

Note F - Stock-based Compensation	6 Months Ended
	Dec. 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, 54.9 109.6 2018 three June 30, 2020. 82.3. 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 224.9 181.8 December 29, 2017 December 30, 2016, $121 $15 December 29, 2017 December 30, 2016, $136 $30 two December 29, 2017 December 30, 2016, December 29, 2017 $13.45. December 29, 2017, $2,775 2018, 2017 2016 December 29, 2017 December 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, 85.3 181.8 272.4 269.6 December 29, 2017 December 30, 2016, $464 $370 December 29, 2017 December 30, 2016, $927 $696 two December 29, 2017 December 30, 2016, December 29, 2017 December 30, 2016 $1,758 $587, December 29, 2017, $2,195 three

Note G - Pension and Other Post

Note G - Pension and Other Postretirement Benefit Plans	6 Months Ended
	Dec. 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 For the Two Quarters Ended December 29, 2017 December 30, 2016 December 29, 2017 December 30, 2016 Pension Benefits: Service cost $ 241 $ 259 $ 503 $ 480 Interest cost 1,062 1,118 2,136 2,243 Expected return on plan assets (1,516 ) (1,457 ) (3,041 ) (2,899 ) Amortization of transition obligation 9 9 18 18 Amortization of prior service cost 1 1 2 2 Amortization of actuarial net loss 759 899 1,518 1,798 Net periodic benefit cost $ 556 $ 829 $ 1,136 $ 1,642 Postretirement Benefits: Service cost $ 5 $ 6 $ 10 $ 12 Interest cost 77 122 169 244 Amortization of actuarial net loss (59 ) 182 (56 ) 364 Net periodic benefit cost $ 23 $ 310 $ 123 $ 620 The Company expect s to contribute approximately $2,265 2018. December 29, 2017, $1,043 The Company has reclassified $1,734 $674 December 29, 2017, $750 $399 December 30, 2016. $2,208 $952 two December 29, 2017, $1,422 $798 two December 30, 2016.

Note H - Income Taxes

Note H - Income Taxes	6 Months Ended
	Dec. 29, 2017
Notes to Financial Statements
Income Tax Disclosure [Text Block]	H. Income Taxes On December 22, 2017, January 1, 2018; has a fiscal year end of June 30, For the two December 29, 2017 December 30, 2016, 204.0% 28.8%, $4,565, 735.1%. first $3,803 612.4%. Within the calculation of the Company’s annual effective tax rate the Company has used assumptions and estimates that may The following table sets forth the tax expense and the effective tax rate for the Company’s earnings before income taxes: For the Two Quarters Ended December 29, 2017 December 30, 2016 Income (loss) before income taxes $ 621 $ (7,816 ) Income tax expense (benefit) 1,267 (2,253 ) Effective tax rate 204.0 % 28.8 % The permanent reduction to the U.S. federal corporate income tax rate from 35% 21% January 1, 2018 ( When a U.S. federal tax rate change occurs during a fiscal year, taxpayers are required to compute a weighted daily average rate for the fiscal year of enactment. As a result of the Tax Act, the Company has calculated a U.S. federal statutory corporate income tax rate of 27.6% June 30, 2018 first 2018 27.6% 34% 2018 21% 2018 21% June 30, 2018. The Company completed a provisional calculation to determine the impact of a one December 29, 2017, 2018, two zero no not 100% no The Company continues to review the anticipated impacts of the global intangible low taxed income (“GILTI”), a deduction for foreign-derived intangible income ("FDII") and base erosion anti-abuse tax (“BEAT”) on the Company, which are not 2019. not first 2018. not not may On December 22, 2017, 118 118” SAB 118 740, 740” 118 may 805, Business Combinations 805 may not 118 not one two December 29, 2017, 2018. Accordingly, the Company ’s income tax provision as of December 29, 2017 For the Two Quarters Ended December 29, 2017 Transition Tax (provisional) $ - Net impact on U.S. deferred tax assets and liabilities (provisional) (4,565 ) Net discrete impacts of the enactment of the Tax Act $ (4,565 ) The Company maintains valuation allowances when it is more likely than not not 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 operational changes, the Company has evaluated the realizability of the net deferred tax assets related to a certain foreign jurisdiction. Based on this evaluation, along with expected future earnings, management has concluded that the valuation allowance is no first 2018. 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 $ 856 December 29, 2017 no December 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 2013. 2015 no 2018.

Note I - Goodwill and Other Int

Note I - Goodwill and Other Intangibles	6 Months Ended
	Dec. 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 December 29, 2017 June 30, 2017, For the quarter ended December 29, 2017, no not not December 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 174 - 174 Balance at December 29, 2017 $ 16,581 $ (13,822 ) $ 2,759 At December 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 19 - 19 - - 19 Amortization - (89 ) (89 ) (30 ) (43 ) (16 ) Translation adjustment 94 - 94 - 87 7 Balance at December 29, 2017 $ 13,549 $ (11,721 ) $ 1,828 $ 360 $ 1,363 $ 105 The weighted average remaining useful life of the intangible assets included in the table above is approximately 13 Intangible amortization expense was $45 $42 December 29, 2017, December 30, 2016, $89 $85 two December 29, 2017, December 30, 2016, 2018 five Fiscal Year 2018 $ 101 2019 187 2020 173 2021 158 2022 151 2023 150 The gross carrying amount of the Company ’s intangible assets that have indefinite lives and are not December 29, 2017 June 30, 2017 $204 $205,

Note J - Long-term Debt

Note J - Long-term Debt	6 Months Ended
	Dec. 29, 2017
Notes to Financial Statements
Debt Disclosure [Text Block]	J. Long-term Debt Long-term debt at December 29, 2017 June 30, 2017 December 29, 2017 June 30, 2017 Revolving loan $ 4,645 $ 6,285 Other 39 38 Subtotal 4,684 6,323 Less: current maturities and short-term borrowings - - Total long-term debt $ 4,684 $ 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 December 29, 2017, $28,588, $23,128 December 29, 2017, 3.11%. The Company ’s revolving loan agreement approximates fair value at December 29, 2017 June 30, 2017. 2

Note K - Shareholders' Equity

Note K - Shareholders' Equity	6 Months Ended
	Dec. 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 December 29, 2017 not two December 29, 2017 December 30, 2016. The following is a reconciliation of the Company ’s equity balances for the first two 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 (loss) income (722 ) 76 (646 ) Translation adjustments 3,036 (7 ) 3,029 Benefit plan adjustments, net of tax 2,208 2,208 Cash dividends (172 ) (172 ) Compensation expense 1,063 1,063 Shares (acquired) issued, net (1,406 ) 1,006 (400 ) Balance, December 29, 2017 $ 10,086 $ 168,646 $ (27,427 ) $ (23,199 ) $ 543 $ 128,649 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 (5,608 ) 45 (5,563 ) Translation adjustments (3,581 ) 66 (3,515 ) Benefit plan adjustments, net of tax 1,422 1,422 Cash dividends (109 ) (109 ) Compensation expense and tax shortfall 573 573 Shares (acquired) issued, net (2,725 ) 2,585 (140 ) Balance, December 30, 2016 $ 9,609 $ 170,054 $ (46,302 ) $ (24,205 ) $ 565 $ 109,721 R econciliations for the changes in accumulated other comprehensive income (loss), net of tax, by component for the quarters ended September 29, December 29, 2017, September 30, December 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 adjustment during the quarter 489 - Other comprehensive income before reclassifications - 1,695 Amounts reclassified from accumulated other comprehensive income - 39 Net current period other comprehensive income 489 1,734 Balance at December 29, 2017 $ 9,166 $ (36,593 ) 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 ) Translation adjustment during the quarter (4,208 ) - Amounts reclassified from accumulated other comprehensive income - 750 Net current period other comprehensive (loss) income (4,208 ) 750 Balance at December 30, 2016 $ 1,577 $ (47,879 ) Reconciliation for the changes in benefit plan adjustments, net of tax for the quarter and two December 29, 2017 Amount Reclassified Amount Reclassified Quarter Ended Two Quarters Ended December 29, 2017 December 29, 2017 Changes in benefit plan items Actuarial losses $ 703 (a) $ 1,445 (a) Transition asset and prior service benefit 10 (a) 20 (a) Total amortization 713 1,465 Other benefit plan adjustments (1,695 ) (1,695 ) Income taxes 674 952 Total reclassification net of tax $ 1,734 $ 2,208 (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 changes in benefit plan adjustments, net of tax for the quarter and two December 30, 2016 Amount Reclassified Amount Reclassified Quarter Ended Two Quarters Ended December 30, 2016 December 30, 2016 Changes in benefit plan items Actuarial losses $ 1,139 (a) $ 2,200 (a) Transition asset and prior service benefit 10 (a) 20 (a) Total amortization 1,149 2,220 Income taxes 399 798 Total reclassification net of tax $ 750 $ 1,422 (a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note G "Pension and Other Postretirement Benefit Plans" for further details).

Note L - Restructuring of Opera

Note L - Restructuring of Operations	6 Months Ended
	Dec. 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 year, 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 $831 $2,049 two December 29, 2017, two December 30, 2016, $816 $1,074, Restructuring activities since June 2015 resulted in the elimination of 163 December 29, 2017 $7,924. The following is a rollforward of restructuring activity: Accrued restructuring liability, June 30, 2017 $ 92 Additions during the year 2,049 Payments and adjustments (2,127 ) Accrued restructuring liability, December 29, 2017 $ 14

Note M - Earnings Per Share

Note M - Earnings Per Share	6 Months Ended
	Dec. 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 loss per share were as follows: For the Quarter Ended For the Two Quarters Ended December 29, 2017 December 30, 2016 December 29, 2017 December 30, 2016 Basic: Net loss $ (4,050 ) $ (2,892 ) $ (646 ) $ (5,563 ) Less: Net earnings attributable to noncontrolling interest (63 ) (20 ) (76 ) (45 ) Less: Undistributed earnings attributable to unvested shares - - - - Net loss available to Twin Disc shareholders (4,113 ) (2,912 ) (722 ) (5,608 ) Weighted average shares outstanding - basic 11,297 11,242 11,278 11,231 Basic Loss Per Share: Net loss per share - basic $ (0.36 ) $ (0.26 ) $ (0.06 ) $ (0.50 ) Diluted: Net loss $ (4,050 ) $ (2,892 ) $ (646 ) $ (5,563 ) Less: Net earnings attributable to noncontrolling interest (63 ) (20 ) (76 ) (45 ) Less: Undistributed earnings attributable to unvested shares - - - - Net loss available to Twin Disc shareholders (4,113 ) (2,912 ) (722 ) (5,608 ) Weighted average shares outstanding - basic 11,297 11,242 11,278 11,231 Effect of dilutive stock awards - - - - Weighted average shares outstanding - diluted 11,297 11,242 11,278 11,231 Diluted Loss Per Share: Net loss per share - diluted $ (0.36 ) $ (0.26 ) $ (0.06 ) $ (0.50 ) The following potential common shares were excluded from diluted EPS for the quarter and two December 29, 2017 224.9 ’s unvested PSAs, 272.4 9.6 The following potential common shares were excluded from diluted EPS for the quarter and two December 30, 2016 181.8 ’s unvested PSAs, 269.6 13.2

Significant Accounting Policies

Significant Accounting Policies (Policies)	6 Months Ended
	Dec. 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)	6 Months Ended
	Dec. 29, 2017
Notes Tables
Schedule of Inventory, Current [Table Text Block]	December 29, 2017 June 30, 2017 Inventories: Finished parts $ 49,052 $ 45,829 Work in process 10,141 8,358 Raw materials 14,844 12,006 $ 74,037 $ 66,193

Note C - Warranty (Tables)

Note C - Warranty (Tables)	6 Months Ended
	Dec. 29, 2017
Notes Tables
Schedule of Product Warranty Liability [Table Text Block]	For the Quarter Ended For the Two Quarters Ended December 29, 2017 December 30, 2016 December 29, 2017 December 30, 2016 Reserve balance, beginning of period $ 2,326 $ 3,036 $ 2,062 $ 3,607 Current period expense 723 61 1,381 243 Payments or credits to customers (589 ) (506 ) (1,022 ) (1,268 ) Translation 7 (49 ) 46 (40 ) Reserve balance, end of period $ 2,467 $ 2,542 $ 2,467 $ 2,542

Note E - Business Segments (Tab

Note E - Business Segments (Tables)	6 Months Ended
	Dec. 29, 2017
Notes Tables
Reconciliation of Revenue from Segments to Consolidated [Table Text Block]	For the Quarter Ended For the Two Quarters Ended December 29, 2017 December 30, 2016 December 29, 2017 December 30, 2016 Net sales Manufacturing segment sales $ 48,580 $ 29,472 $ 88,453 $ 59,971 Distribution segment sales 21,336 14,291 38,998 29,686 Inter/Intra segment elimination – manufacturing (9,489 ) (8,229 ) (19,821 ) (16,355 ) Inter/Intra segment elimination – distribution (3,881 ) (1,862 ) (6,019 ) (3,795 ) $ 56,546 $ 33,672 $ 101,611 $ 69,507 Net income (loss) attributable to Twin Disc Manufacturing segment net income (loss) $ 123 $ (1,459 ) $ 5,190 $ (2,879 ) Distribution segment net income 387 496 1,056 767 Corporate and eliminations (4,623 ) (1,949 ) (6,968 ) (3,496 ) $ (4,113 ) $ (2,912 ) $ (722 ) $ (5,608 )
Reconciliation of Assets from Segment to Consolidated [Table Text Block]	Assets December 29, 2017 June 30, 2017 Manufacturing segment assets $ 229,835 $ 222,136 Distribution segment assets 51,557 50,418 Corporate assets and elimination of intercompany assets (68,206 ) (61,656 ) $ 213,186 $ 210,898

Note G - Pension and Other Po24

Note G - Pension and Other Postretirement Benefit Plans (Tables)	6 Months Ended
	Dec. 29, 2017
Notes Tables
Schedule of Net Benefit Costs [Table Text Block]	For the Quarter Ended For the Two Quarters Ended December 29, 2017 December 30, 2016 December 29, 2017 December 30, 2016 Pension Benefits: Service cost $ 241 $ 259 $ 503 $ 480 Interest cost 1,062 1,118 2,136 2,243 Expected return on plan assets (1,516 ) (1,457 ) (3,041 ) (2,899 ) Amortization of transition obligation 9 9 18 18 Amortization of prior service cost 1 1 2 2 Amortization of actuarial net loss 759 899 1,518 1,798 Net periodic benefit cost $ 556 $ 829 $ 1,136 $ 1,642 Postretirement Benefits: Service cost $ 5 $ 6 $ 10 $ 12 Interest cost 77 122 169 244 Amortization of actuarial net loss (59 ) 182 (56 ) 364 Net periodic benefit cost $ 23 $ 310 $ 123 $ 620

Note H - Income Taxes (Tables)

Note H - Income Taxes (Tables)	6 Months Ended
	Dec. 29, 2017
Notes Tables
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]	For the Two Quarters Ended December 29, 2017 December 30, 2016 Income (loss) before income taxes $ 621 $ (7,816 ) Income tax expense (benefit) 1,267 (2,253 ) Effective tax rate 204.0 % 28.8 % For the Two Quarters Ended December 29, 2017 Transition Tax (provisional) $ - Net impact on U.S. deferred tax assets and liabilities (provisional) (4,565 ) Net discrete impacts of the enactment of the Tax Act $ (4,565 )

Note I - Goodwill and Other I26

Note I - Goodwill and Other Intangibles (Tables)	6 Months Ended
	Dec. 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 174 - 174 Balance at December 29, 2017 $ 16,581 $ (13,822 ) $ 2,759
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 19 - 19 - - 19 Amortization - (89 ) (89 ) (30 ) (43 ) (16 ) Translation adjustment 94 - 94 - 87 7 Balance at December 29, 2017 $ 13,549 $ (11,721 ) $ 1,828 $ 360 $ 1,363 $ 105
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]	Fiscal Year 2018 $ 101 2019 187 2020 173 2021 158 2022 151 2023 150

Note J - Long-term Debt (Tables

Note J - Long-term Debt (Tables)	6 Months Ended
	Dec. 29, 2017
Notes Tables
Schedule of Debt [Table Text Block]	December 29, 2017 June 30, 2017 Revolving loan $ 4,645 $ 6,285 Other 39 38 Subtotal 4,684 6,323 Less: current maturities and short-term borrowings - - Total long-term debt $ 4,684 $ 6,323

Note K - Shareholders' Equity (

Note K - Shareholders' Equity (Tables)	6 Months Ended
	Dec. 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 (loss) income (722 ) 76 (646 ) Translation adjustments 3,036 (7 ) 3,029 Benefit plan adjustments, net of tax 2,208 2,208 Cash dividends (172 ) (172 ) Compensation expense 1,063 1,063 Shares (acquired) issued, net (1,406 ) 1,006 (400 ) Balance, December 29, 2017 $ 10,086 $ 168,646 $ (27,427 ) $ (23,199 ) $ 543 $ 128,649 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 (5,608 ) 45 (5,563 ) Translation adjustments (3,581 ) 66 (3,515 ) Benefit plan adjustments, net of tax 1,422 1,422 Cash dividends (109 ) (109 ) Compensation expense and tax shortfall 573 573 Shares (acquired) issued, net (2,725 ) 2,585 (140 ) Balance, December 30, 2016 $ 9,609 $ 170,054 $ (46,302 ) $ (24,205 ) $ 565 $ 109,721
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 adjustment during the quarter 489 - Other comprehensive income before reclassifications - 1,695 Amounts reclassified from accumulated other comprehensive income - 39 Net current period other comprehensive income 489 1,734 Balance at December 29, 2017 $ 9,166 $ (36,593 ) 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 ) Translation adjustment during the quarter (4,208 ) - Amounts reclassified from accumulated other comprehensive income - 750 Net current period other comprehensive (loss) income (4,208 ) 750 Balance at December 30, 2016 $ 1,577 $ (47,879 )
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]	Amount Reclassified Amount Reclassified Quarter Ended Two Quarters Ended December 29, 2017 December 29, 2017 Changes in benefit plan items Actuarial losses $ 703 (a) $ 1,445 (a) Transition asset and prior service benefit 10 (a) 20 (a) Total amortization 713 1,465 Other benefit plan adjustments (1,695 ) (1,695 ) Income taxes 674 952 Total reclassification net of tax $ 1,734 $ 2,208 Amount Reclassified Amount Reclassified Quarter Ended Two Quarters Ended December 30, 2016 December 30, 2016 Changes in benefit plan items Actuarial losses $ 1,139 (a) $ 2,200 (a) Transition asset and prior service benefit 10 (a) 20 (a) Total amortization 1,149 2,220 Income taxes 399 798 Total reclassification net of tax $ 750 $ 1,422

Note L - Restructuring of Ope29

Note L - Restructuring of Operations (Tables)	6 Months Ended
	Dec. 29, 2017
Notes Tables
Restructuring and Related Costs [Table Text Block]	Accrued restructuring liability, June 30, 2017 $ 92 Additions during the year 2,049 Payments and adjustments (2,127 ) Accrued restructuring liability, December 29, 2017 $ 14

Note M - Earnings Per Share (Ta

Note M - Earnings Per Share (Tables)	6 Months Ended
	Dec. 29, 2017
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	For the Quarter Ended For the Two Quarters Ended December 29, 2017 December 30, 2016 December 29, 2017 December 30, 2016 Basic: Net loss $ (4,050 ) $ (2,892 ) $ (646 ) $ (5,563 ) Less: Net earnings attributable to noncontrolling interest (63 ) (20 ) (76 ) (45 ) Less: Undistributed earnings attributable to unvested shares - - - - Net loss available to Twin Disc shareholders (4,113 ) (2,912 ) (722 ) (5,608 ) Weighted average shares outstanding - basic 11,297 11,242 11,278 11,231 Basic Loss Per Share: Net loss per share - basic $ (0.36 ) $ (0.26 ) $ (0.06 ) $ (0.50 ) Diluted: Net loss $ (4,050 ) $ (2,892 ) $ (646 ) $ (5,563 ) Less: Net earnings attributable to noncontrolling interest (63 ) (20 ) (76 ) (45 ) Less: Undistributed earnings attributable to unvested shares - - - - Net loss available to Twin Disc shareholders (4,113 ) (2,912 ) (722 ) (5,608 ) Weighted average shares outstanding - basic 11,297 11,242 11,278 11,231 Effect of dilutive stock awards - - - - Weighted average shares outstanding - diluted 11,297 11,242 11,278 11,231 Diluted Loss Per Share: Net loss per share - diluted $ (0.36 ) $ (0.26 ) $ (0.06 ) $ (0.50 )

Note B - Inventories - Inventor

Note B - Inventories - Inventories (Details) - USD ($) $ in Thousands	Dec. 29, 2017	Jun. 30, 2017
Inventories:
Finished parts	$ 49,052	$ 45,829
Work in process	10,141	8,358
Raw materials	14,844	12,006
Total inventories	$ 74,037	$ 66,193

Note C - Warranty (Details Text

Note C - Warranty (Details Textual) - USD ($) $ in Thousands	Dec. 29, 2017	Dec. 30, 2016
Product Warranty Accrual, Current	$ 2,032	$ 2,063
Product Warranty Accrual, Noncurrent	$ 435	$ 479

Note C - Warranty - Warranty (D

Note C - Warranty - Warranty (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 29, 2017	Dec. 30, 2016	Dec. 29, 2017	Dec. 30, 2016
Reserve balance, beginning of period	$ 2,326	$ 3,036	$ 2,062	$ 3,607
Current period expense	723	61	1,381	243
Payments or credits to customers	(589)	(506)	(1,022)	(1,268)
Translation	7	(49)	46	(40)
Reserve balance, end of period	$ 2,467	$ 2,542	$ 2,467	$ 2,542

Note E - Business Segments (Det

Note E - Business Segments (Details Textual)	6 Months Ended
	Dec. 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		6 Months Ended
	Dec. 29, 2017	Dec. 30, 2016	Dec. 29, 2017	Dec. 30, 2016
Net sales	$ 56,546	$ 33,672	$ 101,611	$ 69,507
Net income (loss)	(4,113)	(2,912)	(722)	(5,608)
Corporate, Non-Segment [Member]
Net income (loss)	(4,623)	(1,949)	(6,968)	(3,496)
Manufacturing Segment [Member] | Operating Segments [Member]
Net sales	48,580	29,472	88,453	59,971
Net income (loss)	123	(1,459)	5,190	(2,879)
Manufacturing Segment [Member] | Intersegment Eliminations [Member]
Net sales	(9,489)	(8,229)	(19,821)	(16,355)
Distribution Segment [Member] | Operating Segments [Member]
Net sales	21,336	14,291	38,998	29,686
Net income (loss)	387	496	1,056	767
Distribution Segment [Member] | Intersegment Eliminations [Member]
Net sales	$ (3,881)	$ (1,862)	$ (6,019)	$ (3,795)

Note E - Business Segments - As

Note E - Business Segments - Assets by Segment (Details) - USD ($) $ in Thousands	Dec. 29, 2017	Jun. 30, 2017
Segment Assets	$ 213,186	$ 210,898
Operating Segments [Member] | Manufacturing Segment [Member]
Segment Assets	229,835	222,136
Operating Segments [Member] | Distribution Segment [Member]
Segment Assets	51,557	50,418
Corporate, Non-Segment [Member]
Segment Assets	$ (68,206)	$ (61,656)

Note F - Stock-based Compensa37

Note F - Stock-based Compensation (Details Textual) - USD ($)	3 Months Ended			6 Months Ended		12 Months Ended
	Dec. 29, 2017	Dec. 29, 2017	Dec. 30, 2016	Dec. 29, 2017	Dec. 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	109,600
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	82,300		82,300			164,400
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	224,900	224,900	181,800	224,900	181,800
Allocated Share-based Compensation Expense	$ 121,000		$ 15,000	$ 136,000	$ 30,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value	$ 13.45	$ 13.45		$ 13.45
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 2,775,000	$ 2,775,000		$ 2,775,000
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				85,300	181,800
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	272,400	272,400	269,600	272,400	269,600
Allocated Share-based Compensation Expense		$ 464,000	$ 370,000	$ 927,000	$ 696,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 2,195	$ 2,195		2,195
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value				$ 1,758,000	$ 587,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition				3 years
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 Po38

Note G - Pension and Other Postretirement Benefit Plans (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 29, 2017	Dec. 30, 2016	Dec. 29, 2017	Dec. 30, 2016
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, after Tax	$ 1,734	$ 750	$ 2,208	$ 1,422
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, Tax	674	$ 399	952	$ 798
Pension Plan [Member]
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year	$ 2,265		2,265
Defined Benefit Plan, Plan Assets, Contributions by Employer			$ 1,043

Note G - Pension and Other Po39

Note G - Pension and Other Postretirement Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 29, 2017	Dec. 30, 2016	Dec. 29, 2017	Dec. 30, 2016
Pension Plan [Member]
Pension Benefits:
Service cost	$ 241	$ 259	$ 503	$ 480
Interest cost	1,062	1,118	2,136	2,243
Expected return on plan assets	(1,516)	(1,457)	(3,041)	(2,899)
Amortization of transition obligation	9	9	18	18
Amortization of prior service cost	1	1	2	2
Amortization of actuarial net loss	759	899	1,518	1,798
Net periodic benefit cost	556	829	1,136	1,642
Other Postretirement Benefits Plan [Member]
Pension Benefits:
Service cost	5	6	10	12
Interest cost	77	122	169	244
Amortization of actuarial net loss	(59)	182	(56)	364
Net periodic benefit cost	$ 23	$ 310	$ 123	$ 620

Note H - Income Taxes (Details

Note H - Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended		12 Months Ended
	Sep. 29, 2017	Dec. 29, 2017	Dec. 30, 2016	Jun. 30, 2019
Effective Income Tax Rate Reconciliation, Percent		204.00%	28.80%
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability		$ 4,565
Effective Income Tax Rate Reconciliation, Deferred Tax Asset and Liability Adjustment on Enacted Tax Act, Percent		735.10%
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent		27.60%
Unrecognized Tax Benefits that Would Impact Effective Tax Rate		$ 856
Scenario, Forecast [Member]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent				21.00%
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	612.40%
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		2,013

Note H - Income Taxes - Effecti

Note H - Income Taxes - Effective Tax Rate for Earnings Before Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 29, 2017	Dec. 30, 2016	Dec. 29, 2017	Dec. 30, 2016
Income (loss) before income taxes	$ 1,875	$ (4,093)	$ 621	$ (7,816)
Income tax expense (benefit)	$ 5,925	$ (1,201)	$ 1,267	$ (2,253)
Effective tax rate			204.00%	28.80%
Net impact on U.S. deferred tax assets and liabilities (provisional)			$ (4,565)
Net discrete impacts of the enactment of the Tax Act			$ (4,565)

Note I - Goodwill and Other I42

Note I - Goodwill and Other Intangibles (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 29, 2017	Dec. 30, 2016	Dec. 29, 2017	Dec. 30, 2016	Jun. 30, 2017
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life			13 years
Amortization of Intangible Assets	$ 45	$ 42	$ 89	$ 85
Indefinite-Lived Intangible Assets (Excluding Goodwill)	$ 204		204		$ 205
Industrial [Member] | Europe [Member]
Goodwill, Impairment Loss			$ 0

Note I - Goodwill and Other I43

Note I - Goodwill and Other Intangibles - Goodwill Rollforward (Details) - USD ($) $ in Thousands	6 Months Ended
	Dec. 29, 2017	Jun. 30, 2017
Balance, gross carrying amount	$ 16,407
Translation adjustment	174
Balance, gross carrying amount	16,581
Balance, accumulated impairment	(13,822)	$ (13,822)
Balance, net book value	2,585
Translation adjustment	174
Balance, net book value	$ 2,759

Note I - Goodwill and Other I44

Note I - Goodwill and Other Intangibles - Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 29, 2017	Dec. 30, 2016	Dec. 29, 2017	Dec. 30, 2016
Balance, Gross Carrying Amount			$ 13,436
Addition, Gross Carrying Amount			19
Translation adjustment, Gross Carrying Amount			94
Balance, Gross Carrying Amount	$ 13,549		13,549
Balance, Accumulated Amortization/Impairment			(11,632)
Amortization	(45)	$ (42)	(89)	$ (85)
Balance, Accumulated Amortization/Impairment	(11,721)		(11,721)
Balance, Net Book Value			1,804
Addition, Net Book Value			19
Translation adjustment, Net Book Value			94
Balance, Net Book Value	1,828		1,828
Licensing Agreements [Member]
Amortization			(30)
Balance, Net Book Value			390
Addition, Net Book Value
Translation adjustment, Net Book Value
Balance, Net Book Value	360		360
Trade Names [Member]
Amortization			(43)
Balance, Net Book Value			1,319
Addition, Net Book Value
Translation adjustment, Net Book Value			87
Balance, Net Book Value	1,363		1,363
Other Intangible Assets [Member]
Amortization			(16)
Balance, Net Book Value			95
Addition, Net Book Value			19
Translation adjustment, Net Book Value			7
Balance, Net Book Value	$ 105		$ 105

Note I - Goodwill and Other I45

Note I - Goodwill and Other Intangibles - Estimated Intangibles (Details) $ in Thousands	Dec. 29, 2017USD ($)
2,018	$ 101
2,019	187
2,020	173
2,021	158
2,022	151
2,023	$ 150

Note J - Long-term Debt (Detail

Note J - Long-term Debt (Details Textual) - Revolving Loan [Member] - Bank of Montreal [Member] $ in Thousands	Dec. 29, 2017USD ($)
Line of Credit Facility, Current Borrowing Capacity	$ 28,588
Line of Credit Facility, Remaining Borrowing Capacity	$ 23,128
Line of Credit Facility, Interest Rate at Period End	3.11%

Note J - Long-term Debt - Long-

Note J - Long-term Debt - Long-term Debt (Details) - USD ($) $ in Thousands	Dec. 29, 2017	Jun. 30, 2017
Long-term debt	$ 4,684	$ 6,323
Less: current maturities and short-term borrowings
Total long-term debt	4,684	6,323
Revolving Loan [Member]
Long-term debt	4,645	6,285
Other Long-Term Debt [Member]
Long-term debt	$ 39	$ 38

Note K - Shareholders' Equity48

Note K - Shareholders' Equity (Details Textual) - shares shares in Thousands	6 Months Ended
	Dec. 29, 2017	Dec. 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		6 Months Ended
	Dec. 29, 2017	Dec. 30, 2016	Dec. 29, 2017	Dec. 30, 2016
Balance			$ 123,567	$ 117,053
Net loss	$ (4,050)	$ (2,892)	(646)	(5,563)
Foreign currency translation adjustment	488	(4,198)	3,029	(3,515)
Benefit plan adjustments, net of tax	1,734	750	2,208	1,422
Cash dividends			(172)	(109)
Compensation expense and tax shortfall			1,063	573
Shares (acquired) issued, net			(400)	(140)
Balance	128,649	109,721	128,649	109,721
Common Stock [Member]
Balance			10,429	11,761
Net loss
Foreign currency translation adjustment
Benefit plan adjustments, net of tax
Cash dividends
Compensation expense and tax shortfall			1,063	573
Shares (acquired) issued, net			(1,406)	(2,725)
Balance	10,086	9,609	10,086	9,609
Retained Earnings [Member]
Balance			169,368	175,662
Net loss			(722)	(5,608)
Foreign currency translation adjustment
Benefit plan adjustments, net of tax
Cash dividends
Compensation expense and tax shortfall
Shares (acquired) issued, net
Balance	168,646	170,054	168,646	170,054
AOCI Attributable to Parent [Member]
Balance			(32,671)	(44,143)
Net loss
Foreign currency translation adjustment			3,036	(3,581)
Benefit plan adjustments, net of tax			2,208	1,422
Cash dividends
Compensation expense and tax shortfall
Shares (acquired) issued, net
Balance	(27,427)	(46,302)	(27,427)	(46,302)
Treasury Stock [Member]
Balance			(24,205)	(26,790)
Net loss
Foreign currency translation adjustment
Benefit plan adjustments, net of tax
Cash dividends
Compensation expense and tax shortfall
Shares (acquired) issued, net			1,006	2,585
Balance	(23,199)	(24,205)	(23,199)	(24,205)
Noncontrolling Interest [Member]
Balance			646	563
Net loss			76	45
Foreign currency translation adjustment			(7)	66
Benefit plan adjustments, net of tax
Cash dividends			(172)	(109)
Compensation expense and tax shortfall
Shares (acquired) issued, net
Balance	$ 543	$ 565	$ 543	$ 565

Note K - Shareholders' Equity50

Note K - Shareholders' Equity - Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 29, 2017	Sep. 29, 2017	Dec. 30, 2016	Sep. 30, 2016
Balance		$ 123,567		$ 117,053
Balance	$ 128,649		$ 109,721
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Balance	8,677	6,130	5,785	5,158
Other comprehensive income before reclassifications	489	2,547	(4,208)	627
Amounts reclassified from accumulated other comprehensive income
Net current period other comprehensive income	489	2,547	(4,208)	627
Balance	9,166	8,677	1,577	5,785
Net current period other comprehensive (loss) income	489	2,547	(4,208)	627
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Balance	(38,327)	(38,801)	(48,629)	(49,301)
Other comprehensive income before reclassifications	1,695
Amounts reclassified from accumulated other comprehensive income	39	474	750	672
Net current period other comprehensive income	1,734	474	750	672
Balance	(36,593)	(38,327)	(47,879)	(48,629)
Net current period other comprehensive (loss) income	$ 1,734	$ 474	$ 750	$ 672

Note K - Shareholders' Equity51

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		6 Months Ended
		Dec. 29, 2017	Dec. 30, 2016	Dec. 29, 2017	Dec. 30, 2016
Income tax expense (benefit)		$ 5,925	$ (1,201)	$ 1,267	$ (2,253)
Net loss		(4,050)	(2,892)	(646)	(5,563)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Actuarial losses	[1]	703	1,139	1,445	2,200
Transition asset and prior service benefit	[1]	10	10	20	20
Total amortization		713	1,149	1,465	2,220
Other benefit plan adjustments		(1,695)		(1,695)
Income tax expense (benefit)		674	399	952	798
Net loss		$ 1,734	$ 750	$ 2,208	$ 1,422
[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 Ope52

Note L - Restructuring of Operations (Details Textual) $ in Thousands	3 Months Ended		6 Months Ended		31 Months Ended
	Dec. 29, 2017USD ($)	Dec. 30, 2016USD ($)	Dec. 29, 2017USD ($)	Dec. 30, 2016USD ($)	Dec. 29, 2017USD ($)
Restructuring Charges	$ 831	$ 816	$ 2,049	$ 1,074	$ 7,924
Restructuring and Related Cost, Number of Positions Eliminated					163

Note L - Restructuring of Ope53

Note L - Restructuring of Operations - Roll-forward of Restructuring Activity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		31 Months Ended
	Dec. 29, 2017	Dec. 30, 2016	Dec. 29, 2017	Dec. 30, 2016	Dec. 29, 2017
Accrued restructuring liability			$ 92
Additions during the year	$ 831	$ 816	2,049	$ 1,074	$ 7,924
Payments and adjustments			(2,127)
Accrued restructuring liability	$ 14		$ 14		$ 14

Note M - Earnings Per Share (De

Note M - Earnings Per Share (Details Textual) - shares	3 Months Ended		6 Months Ended
	Dec. 29, 2017	Dec. 30, 2016	Dec. 29, 2017	Dec. 30, 2016
Performance Shares [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	224,900	181,800	224,900	181,800
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	272,400	269,600	272,400	269,600
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	9,600	13,200	9,600	13,200

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		6 Months Ended
	Dec. 29, 2017	Dec. 30, 2016	Dec. 29, 2017	Dec. 30, 2016
Basic:
Net loss	$ (4,050)	$ (2,892)	$ (646)	$ (5,563)
Less: Net earnings attributable to noncontrolling interest	(63)	(20)	(76)	(45)
Less: Undistributed earnings attributable to unvested shares
Net loss available to Twin Disc shareholders	$ (4,113)	$ (2,912)	$ (722)	$ (5,608)
Weighted average shares outstanding - basic (in shares)	11,297	11,242	11,278	11,231
Basic Loss Per Share:
Net loss per share - basic (in dollars per share)	$ (0.36)	$ (0.26)	$ (0.06)	$ (0.50)
Diluted:
Net loss	$ (4,050)	$ (2,892)	$ (646)	$ (5,563)
Less: Net earnings attributable to noncontrolling interest	(63)	(20)	(76)	(45)
Less: Undistributed earnings attributable to unvested shares
Net loss available to Twin Disc shareholders	$ (4,113)	$ (2,912)	$ (722)	$ (5,608)
Weighted average shares outstanding - basic (in shares)	11,297	11,242	11,278	11,231
Effect of dilutive stock awards (in shares)
Weighted average shares outstanding - diluted (in shares)	11,297	11,242	11,278	11,231
Diluted Loss Per Share:
Net loss per share - diluted (in dollars per share)	$ (0.36)	$ (0.26)	$ (0.06)	$ (0.50)