L.S. Starrett Co. - Ordinary Shares (SCX) 10-Q 5 Nov 13 2014 Q1 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information	3 Months Ended
	Sep. 30, 2013	Oct. 31, 2013	Oct. 31, 2013
		Common Class A [Member]	Common Class B [Member]
Document Information [Line Items]	'	'	'
Entity Registrant Name	'STARRETT L S CO	'	'
Document Type	'10-Q	'	'
Current Fiscal Year End Date	'--06-30	'	'
Entity Common Stock, Shares Outstanding	'	6,106,625	814,379
Amendment Flag	'false	'	'
Entity Central Index Key	'0000093676	'	'
Entity Current Reporting Status	'Yes	'	'
Entity Voluntary Filers	'No	'	'
Entity Filer Category	'Accelerated Filer	'	'
Entity Well-known Seasoned Issuer	'No	'	'
Document Period End Date	30-Sep-13	'	'
Document Fiscal Year Focus	'2014	'	'
Document Fiscal Period Focus	'Q1	'	'

Consolidated_Balance_Sheets_Cu

Consolidated Balance Sheets (Current Period Unaudited) (USD $)	Sep. 30, 2013	Jun. 30, 2013
In Thousands, unless otherwise specified
ASSETS	'	'
Cash	$21,148	$19,755
Short-term investments	8,174	7,657
Accounts receivable (less allowance for doubtful accounts of $681 and $697, respectively)	33,980	37,875
Inventories	58,191	56,501
Current deferred income tax asset	4,776	4,978
Prepaid expenses and other current assets	8,279	7,182
Total current assets	134,548	133,948
Property, plant and equipment, net	50,642	51,200
Taxes receivable	3,770	3,770
Deferred tax asset, net	28,114	28,274
Intangible assets, net	7,986	8,222
Goodwill	3,034	3,034
Other assets	2,434	2,346
Total assets	230,528	230,794
Current liabilities:	'	'
Notes payable and current maturities	1,534	1,557
Accounts payable and accrued expenses	16,538	17,084
Accrued compensation	5,483	5,304
Total current liabilities	23,555	23,945
Long-term debt net of current portion	22,372	24,252
Other tax obligations	10,504	10,514
Deferred tax liabilities	2,182	2,182
Postretirement benefit and pension obligations	43,532	42,386
Other non-current liability	'	773
Total liabilities	102,145	104,052
Additional paid-in capital	53,481	52,613
Retained earnings	91,303	91,778
Accumulated other comprehensive loss	-23,316	-24,476
Total stockholders' equity	128,383	126,742
Total liabilities and stockholdersb equity	230,528	230,794
Common Class A [Member]	'	'
Current liabilities:	'	'
Common Stock	6,099	6,077
Common Class B [Member]	'	'
Current liabilities:	'	'
Common Stock	$816	$750

Consolidated_Balance_Sheets_Cu1

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $)	Sep. 30, 2013	Jun. 30, 2013
In Thousands, except Share data, unless otherwise specified
Allowance for doubtful accounts (in Dollars)	$681	$697
Common Class A [Member]	'	'
Par Value (in Dollars per share)	$1	$1
Shares Authorized	20,000,000	20,000,000
Shares Outstanding	6,099,400	6,076,698
Common Class B [Member]	'	'
Par Value (in Dollars per share)	$1	$1
Shares Authorized	10,000,000	10,000,000
Shares Outstanding	815,534	750,563

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (Current Period Unaudited) (USD $)	3 Months Ended
Share data in Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Net sales	$57,487,000	$56,937,000
Cost of goods sold	39,678,000	39,248,000
Gross margin	17,809,000	17,689,000
% of Net sales	31.00%	31.10%
Selling, general and administrative expenses	17,073,000	18,571,000
Operating income (loss)	736,000	-882,000
Other income	109,000	144,000
Income (loss) before income taxes	845,000	-738,000
Income tax expense (benefit)	629,000	-387,000
Net Income (loss)	$216,000	($351,000)
Basic and diluted Income (loss) per share (in Dollars per share)	$0.03	($0.05)
Weighted average outstanding shares used in per share calculations:	'	'
Basic (in Shares)	6,895	6,783
Diluted (in Shares)	6,931	6,783
Dividends per share (in Dollars per share)	$0.10	$0.10

Consolidated_Statements_of_Com

Consolidated Statements of Comprehensive Income (Loss) (Current Period Unaudited) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Net earnings (loss)	$216	($351)
Other comprehensive income (loss), net of tax:	'	'
Translation gain	1,175	635
Pension and postretirement plans	-15	-11
Other comprehensive income	1,160	624
Total comprehensive income	$1,376	$273

Consolidated_Statements_of_Sto

Consolidated Statements of Stockholders' Equity and Comprehensive Income (Loss) (Current Period Unaudited) (USD $)

Common Class A [Member]

Common Class A [Member]

Common Class B [Member]

Common Class B [Member]

Additional Paid-in Capital [Member]

Additional Paid-in Capital [Member]

Additional Paid-in Capital [Member]

Retained Earnings [Member]

Accumulated Other Comprehensive Income (Loss) [Member]

The 1984 ESOP [Member]

The 2013 ESOP [Member]

Total

In Thousands

The 1984 ESOP [Member]

The 2013 ESOP [Member]

The 1984 ESOP [Member]

The 2013 ESOP [Member]

Balance at Jun. 30, 2012

'

$6,017

'

$753

'

'

$51,941

$94,661

($25,534)

'

'

$127,838

Total comprehensive income (loss)

'

'

'

'

'

'

'

-351

624

'

'

273

Dividends

'

'

'

'

'

'

'

-679

'

'

'

-679

Issuance of stock dividends under ESOP

6

'

'

'

64

'

'

'

'

70

'

'

Issuance of stock

'

2

'

15

'

'

114

'

'

'

'

131

Stock-based compensation

'

'

'

'

'

'

41

'

'

'

'

41

Conversion

'

4

'

-4

'

'

'

'

'

'

'

'

Balance at Sep. 30, 2012

'

6,029

'

764

'

'

52,160

93,631

-24,910

'

'

127,674

Balance at Jun. 30, 2013

'

6,077

'

750

'

'

52,613

91,778

-24,476

'

'

126,742

Total comprehensive income (loss)

'

'

'

'

'

'

'

216

1,160

'

'

1,376

Dividends

'

'

'

'

'

'

'

-691

'

'

'

-691

Issuance of stock dividends under ESOP

7

'

76

'

62

697

'

'

'

69

773

'

Issuance of stock

'

5

'

'

'

'

54

'

'

'

'

59

Stock-based compensation

'

'

'

'

'

'

55

'

'

'

'

55

Conversion

'

10

'

-10

'

'

'

'

'

'

'

'

Translation loss

'

'

'

'

'

'

'

'

-20,459

'

'

'

Pension and postretirement plans net of taxes

'

'

'

'

'

'

'

'

-2,857

'

'

'

'

'

'

'

'

'

'

'

-23,316

'

'

-23,316

Balance at Sep. 30, 2013

'

$6,099

'

$816

'

'

$53,481

$91,303

($23,316)

'

'

$128,383

Consolidated_Statements_of_Sto1

Consolidated Statements of Stockholders' Equity and Comprehensive Income (Loss) (Current Period Unaudited) (Parentheticals) (USD $)	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Dividends per share	$0.10	$0.10

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (Current Period Unaudited) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities:	'	'
Net income (loss)	$216	($351)
Non-cash operating activities:	'	'
Depreciation	2,023	2,166
Amortization	289	368
Stock-based compensation	114	41
Net long-term tax obligations	'	-280
Deferred taxes	480	559
Unrealized transaction gain (loss)	-5	1
Income on equity method investment	-94	-157
Working capital changes:	'	'
Accounts receivable	4,481	8,312
Inventories	-1,133	-3,590
Other current assets	-1,074	86
Other current liabilities	-733	-4,572
Postretirement benefit and pension obligations	443	244
Other	230	140
Net cash provided by operating activities	5,237	2,967
Cash flows from investing activities:	'	'
Additions to property, plant and equipment	-1,451	-2,304
Increase in short-term investments	-26	'
Net cash used in investing activities	-1,477	-2,304
Cash flows from financing activities:	'	'
Short-term debt repayments	-15	-152
Long-term debt repayments	-1,887	-395
Proceeds from common stock issued	69	201
Dividends paid	-691	-679
Net cash used in financing activities	-2,524	-1,025
Effect of exchange rate changes on cash	157	121
Net increase (decrease) in cash	1,393	-241
Cash, beginning of period	19,755	17,502
Cash, end of period	21,148	17,261
Supplemental cash flow information:	'	'
Interest paid	239	247
Income taxes paid, net	1,840	1,025
2013 ESOP [Member]	'	'
Supplemental disclosure of non-cash activities:	'	'
Issuance of stock under 2013 ESOP	$773	'

Note_1_Basis_of_Presentation_a

Note 1 - Basis of Presentation and Summary of Significant Account Policies	3 Months Ended
	Sep. 30, 2013
Disclosure Text Block [Abstract]	'
Basis of Presentation and Significant Accounting Policies [Text Block]	'
	Note 1:   Basis of Presentation and Summary of Significant Account Policies
	The balance sheet as of June 30, 2013, which has been derived from audited financial statements, and the unaudited interim financial statements have been prepared by The L.S. Starrett Company (the “Company”) in accordance with accounting principles generally accepted in the United States of America for interim financial reporting.  Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements.  These unaudited financial statements, which, in the opinion of management, reflect all adjustments (including normal recurring adjustments) necessary for a fair presentation, should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2013.  Operating results are not necessarily indicative of the results that may be expected for any future interim period or for the entire fiscal year.
	The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America requires management to make judgments, assumptions and estimates that affect amounts reported in the consolidated financial statements and accompanying notes.  Note 2 to the Company’s Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended June 30, 2013 describes the significant accounting policies and methods used in the preparation of the consolidated financial statements. There were no changes in any of the Company’s significant accounting policies during the three months ended September 30, 2013.

Note_2_Recent_Accounting_Prono

Note 2 - Recent Accounting Pronouncements	3 Months Ended
	Sep. 30, 2013
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]	'
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	'
	Note 2: Recent Accounting Pronouncements
	In July 2013, the FASB issued ASU No. 2013-11, "Income Taxes (Topic 740) - Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists." ASU No. 2013-11 resolves the diversity in practice regarding the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This ASU comes into effect for the first annual period beginning after December 15, 2013. We do not expect adoption of ASU No. 2013-11 to affect our results of operations or cash flows.

Note_3_StockBased_Compensation

Note 3 - Stock-Based Compensation	3 Months Ended
	Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	'
	Note 3:  Stock-based Compensation
	On September 5, 2012 the Board of Directors adopted The L.S. Starrett Company 2012 Long Term Incentive Plan (the “2012 Stock Plan”). The 2012 stock plan was approved by shareholders October 17, 2012. The 2012 Stock Plan permits the granting of the following types of awards to officers, other employees and non-employee directors: stock options; restricted stock awards; unrestricted stock awards; stock appreciation rights; stock units including restricted stock units; performance awards; cash-based awards; and awards other than previously described that are convertible or otherwise based on stock. The 2012 Stock Plan provides for the issuance of up to 500,000 shares of common stock.
	Options granted vest in periods ranging from one year to three years and expire ten years after the grant date. Restricted stock units (“RSU”) granted generally vest from one year to three years. Vested restricted stock units will be settled in shares of common stock. As of September 30, 2013, there were 20,500 stock options and 8,200 restricted stock units outstanding. In addition, there were 471,300 shares available for grant under the 2012 Stock Plan as of September 30, 2013.
	For the stock option grant, the fair value of each grant was estimated at the date of grant using the Binomial Options pricing model. The Binomial Options pricing model utilizes assumptions related to stock volatility, the risk-free interest rate, the dividend yield and employee exercise behavior. Expected volatilities utilized in the model are based on the historic volatility of the Company’s stock price. The risk free interest rate is derived from the U.S. Treasury Yield curve in effect at the time of the grant. The expected life is determined using the average of the vesting period and contractual term of the options (Short-cut method).
	The fair value of stock options as of September 30, 2013 of $3.82 was estimated using the following assumptions:
	Risk-free interest rate	1	%
	Expected life (years)	6
	Expected stock volatility	52.3	%
	Expected dividend yield	4	%
	The weighted average contractual term for stock options outstanding as of September 30, 2013 was 9.25 years.  The aggregate intrinsic value of stock options outstanding as of September 30, 2013 was $0.1 million. There were no options exercisable as of September 30, 2013.
	The Company accounts for RSU awards by recognizing the expense of the fair value ratably over vesting periods generally ranging from one year to three years. The related expense is included in selling, general and administrative expenses.
	There were no RSU awards settled during the three months ended September 30, 2013. The aggregate intrinsic value of RSU awards outstanding as of September 30, 2013 was $0.1 million. There were no RSU awards vested as of September 30, 2013.
	On February 5, 2013, the Board of Directors adopted The L.S. Starrett Company 2013 Employee Stock Ownership Plan (the “2013 ESOP”). The purpose of the plan is to supplement existing Company programs through an employer funded individual account plan dedicated to investment in common stock of the Company, thereby encouraging increased ownership of the Company while providing an additional source of retirement income.  The plan is intended as an employee stock ownership plan within the meaning of Section 4975 (e) (7) of the Internal Revenue Code of 1986, as amended. U.S. employees who have completed a year of service as of December 31, 2012 are eligible to participate.
	On June 5, 2013 the Board of Directors approved a contribution to the 2013 ESOP for fiscal 2013 in the amount of two percent of each participant’s compensation (as defined in the Plan). Compensation expense related to the 2013 ESOP of $.8 million was recognized in the year ended June 30, 2013. The $.8 million liability was included in other non-current liabilities on the Consolidated Balance Sheet on June 30, 2013. Shares of Class B common stock were contributed to the 2013 ESOP on July 30, 2013 in order to fund this liability.
	Compensation expense related to all stock based plans for the three month period ended September 30, 2013 was $0.1 million.  As of September 30, 2013, there was $0.1 million of total unrecognized compensation costs related to outstanding stock-based compensation arrangements. The cost is expected to be recognized over a weighted average period of 2.2 years.

Note_4_Inventories

Note 4 - Inventories	3 Months Ended
	Sep. 30, 2013
Inventory Disclosure [Abstract]	'
Inventory Disclosure [Text Block]	'
	Note 4:   Inventories
	Inventories consist of the following (in thousands):
		9/30/13			6/30/13
	Raw material and supplies	$	30,343		$	29,565
	Goods in process and finished parts		21,082			20,256
	Finished goods		37,356			37,507
			88,781			87,328
	LIFO Reserve		(30,590	)		(30,827	)
	Inventories	$	58,191		$	56,501
	LIFO inventories were $12.9 million at September 30, 2013 and June 30, 2013, or approximately $30.6 million and $30.8 million, respectively, less than their balances accounted for on a FIFO basis.  The use of LIFO, as compared to FIFO, resulted in a $0.2 million decrease in cost of sales for the three months ended September 30, 2013 compared to no effect in the three months ended September 30, 2012.

Note_5_Goodwill_and_Intangible

Note 5 - Goodwill and Intangibles	3 Months Ended
	Sep. 30, 2013
Goodwill and Intangible Assets Disclosure [Abstract]	'
Goodwill and Intangible Assets Disclosure [Text Block]	'
	Note 5:   Goodwill and Intangibles
	The Company performed a qualitative analysis in accordance with ASU 2011-08 for its Bytewise reporting unit for its October 1, 2012 annual assessment of goodwill (commonly referred to as “Step Zero”). From a qualitative perspective, in evaluating whether it is more likely than not that the fair value of the reporting units is not less than their respective carrying amount, relevant events and circumstances were taken into account, with greater weight assigned to events and circumstances that most affect the fair value of Bytewise or the carrying amounts of its assets. Items that were considered included, but were not limited to, the following: macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, changes in management or key personnel, and other Bytewise specific events. After assessing these and other factors the Company determined that it was more likely than not that the fair value of the Bytewise reporting unit was not less than the carrying amount as of October 1, 2012. The company is currently performing its annual impairment test for fiscal 2014 and expects to have it completed by December 31, 2013.
	Amortizable intangible assets consist of the following (in thousands):
		9/30/13			6/30/13
	Non-compete agreement	$	600		$	600
	Trademarks and trade names		1,480			1,480
	Completed technology		2,010			2,010
	Customer relationships		4,950			4,950
	Software development		688			635
	Other intangible assets		325			325
	Total		10,053			10,000
	Accumulated amortization		(2,067	)		(1,778	)
	Total net balance	$	7,986		$	8,222
	Amortizable intangible assets are being amortized on a straight-line basis over the period of expected economic benefit.
	The estimated useful lives of the intangible assets subject to amortization are 14 years for trademarks and trade names, 8 years for non-compete agreements, 10 years for completed technology,  8 years for customer relationships and 5 years for software development.
	The estimated aggregate amortization expense for the remainder of fiscal 2014, for each of the next five years and thereafter, is as follows (in thousands):
	2014 (Remainder of year)	$	878
	2015		1,171
	2016		1,171
	2017		1,169
	2018		1,101
	2019		1,036
	Thereafter		1,460

Note_6_Employee_Benefit_and_Re

Note 6 - Employee Benefit and Retirement Plans	3 Months Ended
	Sep. 30, 2013
Compensation and Retirement Disclosure [Abstract]	'
Pension and Other Postretirement Benefits Disclosure [Text Block]	'
	Note 6:  Pension and Post-retirement Benefits
	Net periodic benefit costs for the Company's defined benefit pension plans consist of the following (in thousands):
		Three Months Ended
		9/30/13			9/30/12
	Service cost	$	709		$	738
	Interest cost		1,715			1,494
	Expected return on plan assets		(1,562	)		(1,602	)
	Amortization of prior service cost		29			59
	Amortization of net loss		3			-
		$	894		$	689
	Net periodic benefit costs for the Company's postretirement medical plan and life insurance consists of the following (in thousands):
		Three Months Ended
		9/30/13			9/30/12
	Service cost	$	88		$	128
	Interest cost		133			136
	Amortization of prior service credit		(126	)		(279	)
	Amortization of accumulated loss		-			40
		$	95		$	25
	The Company’s pension plans use fair value as the market-related value of plan assets and recognize net actuarial gains or losses in excess of ten percent (10%) of the greater of the market-related value of plan assets or of the plans’ projected benefit obligation in net periodic (benefit) cost as of the plan measurement date, which is the same as the fiscal year end of the Company. Net actuarial gains or losses that are less than 10% of the thresholds noted above are accounted for as part of the accumulated other comprehensive income (loss).

Note_7_Debt

Note 7 - Debt	3 Months Ended
	Sep. 30, 2013
Debt Disclosure [Abstract]	'
Debt Disclosure [Text Block]	'
	Note 7:   Debt
	Debt, including capitalized lease obligations, is comprised of the following (in thousands):
		9/30/13		6/30/13
	Notes payable and current maturities
	Loan and Security Agreement	$	1,364	$	1,348
	Short-term foreign credit facility		13		27
	Capitalized leases		157		182
			1,534		1,557
	Long-term debt
	Loan and Security Agreement		22,191		24,037
	Capitalized leases		181		215
			22,372		24,252
		$	23,906	$	25,809
	The Company executed an amendment to its Loan and Security Agreement (Line of Credit) as of April 25, 2012.  The Line of Credit is effective for three years commencing April 25, 2012 and expires on April 30, 2015.  The agreement continues the previous line of $23.0 million and interest rate of LIBOR plus 1.5%.  On September 7, 2012, the Company completed another amendment to change the financial covenants.  The material financial covenants of the amended Loan and Security Agreement are: 1) funded debt to EBITDA, excluding non-cash and retirement benefit expenses (“maximum leverage”), cannot exceed 1.45 to 1, 2) annual capital expenditures cannot exceed $15.0 million, 3) maintain a Debt Service Coverage Rate of a minimum of 1.25 to 1 and 4) maintain consolidated cash plus liquid investments of not less than $10.0 million at any time.
	On May 9, 2013, the Company further amended the agreement to adjust the current funded debt to EBITDA ratio from 1.45 to 1, to 2.25 to 1 for the fourth quarter of fiscal 2013 and the first quarter of fiscal 2014. Thereafter, and through the end of the agreement on April 30, 2015, the funded debt to EBITDA covenant reverts to 1.45 to 1.
	The effective interest rate on the Line of Credit under the Loan and Security Agreement for the three months ended September 30, 2013 and 2012 was 2.0% and 1.9%, respectively.
	On November 22, 2011, in conjunction with the Bytewise acquisition, the Company entered into a $15.5 million term loan (the “Term Loan”) under the existing Loan and Security Agreement with TD Bank N.A.  The term loan is a ten year loan bearing a fixed interest rate of 4.5% and is payable in fixed monthly payments of principal and interest of $160,640.  The term loan, which had a balance of $13.2 million at September 30, 2013, is subject to the same financial covenants as the Loan and Security Agreement.
	The Company was in compliance with its debt covenants as of September 30, 2013.

Note_8_Income_Tax

Note 8 - Income Tax	3 Months Ended
	Sep. 30, 2013
Income Tax Disclosure [Abstract]	'
Income Tax Disclosure [Text Block]	'
	Note 8:   Income Tax
	The Company is subject to U.S. federal income tax and various state, local and foreign income taxes in numerous jurisdictions.  The Company’s domestic and foreign tax liabilities are subject to the allocation of revenues and expenses in different jurisdictions and the timing of recognizing revenues and expenses.  Additionally, the amount of income taxes paid is subject to the Company’s interpretation of applicable tax laws in the jurisdictions in which it files.
	The Company provides for income taxes on an interim basis based on an estimate of the effective tax rate for the year. This estimate is reassessed on a quarterly basis. Discrete tax items are accounted for in the quarterly period in which they occur.
	The tax expense for the first quarter of fiscal 2014 was $629,000 on a profit before tax for the quarter of $845,000 (an effective tax rate of 74.4%). The tax expense for the first quarter of fiscal 2013 was a benefit of $387,000 on a loss before tax of $738,000 (an effective tax rate of 52.4%). The primary reason for the high effective tax rate in the first quarter of fiscal 2014 is a discrete tax charge of $278,000 for the effect of a tax rate decrease in the UK applied to the net deferred tax assets in that jurisdiction. In the first quarter of fiscal 2013, a discrete tax benefit was booked reducing the Company’s net tax liability for uncertain tax positions of $91,000.
	U.S. Federal tax returns through fiscal 2009 are generally no longer subject to review by tax authorities; however, tax loss carryforwards from years before fiscal 2010 are still subject to review. As of September 30, 2013, the Company has substantially resolved all open income tax audits and there were no other local or federal income tax audits in progress as of September 30, 2013. In international jurisdictions including Argentina, Australia, Brazil, Canada, China, Germany, Japan, Mexico, New Zealand, Singapore and the UK, which comprise a significant portion of the Company’s operations, the years that may be examined vary by country. The Company’s most significant foreign subsidiary in Brazil is subject to audit for the years 2008 – 2013.
	The Company has identified no new uncertain tax positions during the three month period ended September 30, 2013 for which it is currently likely that the total amount of unrecognized tax benefits will significantly increase or decrease within the next twelve months.
	No valuation allowance has been recorded for the Company’s domestic federal net operating loss (NOL) carry forwards. The Company continues to believe that due to forecasted future taxable income and certain tax planning strategies available, it is more likely than not that it will be able to utilize the federal NOL carry forwards. The valuation allowance for subsidiary NOL’s in certain foreign countries, notably China, are being released in fiscal 2014 to the extent of forecasted taxable income in fiscal 2014.

Note_9_Contingencies

Note 9 - Contingencies	3 Months Ended
	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]	'
Commitments and Contingencies Disclosure [Text Block]	'
	Note 9:  Contingencies
	The Company is involved in certain legal matters which arise in the normal course of business. These matters are not expected to have a material impact on the Company’s financial condition, results of operations or cash flows.

Accounting_Policies_by_Policy_

Accounting Policies, by Policy (Policies)	3 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
Basis of Accounting, Policy [Policy Text Block]	'
	The balance sheet as of June 30, 2013, which has been derived from audited financial statements, and the unaudited interim financial statements have been prepared by The L.S. Starrett Company (the “Company”) in accordance with accounting principles generally accepted in the United States of America for interim financial reporting.  Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements.  These unaudited financial statements, which, in the opinion of management, reflect all adjustments (including normal recurring adjustments) necessary for a fair presentation, should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2013.  Operating results are not necessarily indicative of the results that may be expected for any future interim period or for the entire fiscal year.
	The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America requires management to make judgments, assumptions and estimates that affect amounts reported in the consolidated financial statements and accompanying notes.  Note 2 to the Company’s Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended June 30, 2013 describes the significant accounting policies and methods used in the preparation of the consolidated financial statements. There were no changes in any of the Company’s significant accounting policies during the three months ended September 30, 2013.
New Accounting Pronouncements, Policy [Policy Text Block]	'
	In July 2013, the FASB issued ASU No. 2013-11, "Income Taxes (Topic 740) - Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists." ASU No. 2013-11 resolves the diversity in practice regarding the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This ASU comes into effect for the first annual period beginning after December 15, 2013. We do not expect adoption of ASU No. 2013-11 to affect our results of operations or cash flows.

Note_3_StockBased_Compensation1

Note 3 - Stock-Based Compensation (Tables)	3 Months Ended
	Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	'
	Risk-free interest rate	1	%
	Expected life (years)	6
	Expected stock volatility	52.3	%
	Expected dividend yield	4	%

Note_4_Inventories_Tables

Note 4 - Inventories (Tables)	3 Months Ended
	Sep. 30, 2013
Inventory Disclosure [Abstract]	'
Schedule of Inventory, Current [Table Text Block]	'
		9/30/13			6/30/13
	Raw material and supplies	$	30,343		$	29,565
	Goods in process and finished parts		21,082			20,256
	Finished goods		37,356			37,507
			88,781			87,328
	LIFO Reserve		(30,590	)		(30,827	)
	Inventories	$	58,191		$	56,501

Note_5_Goodwill_and_Intangible1

Note 5 - Goodwill and Intangibles (Tables)	3 Months Ended
	Sep. 30, 2013
Goodwill and Intangible Assets Disclosure [Abstract]	'
Schedule of Finite-Lived Intangible Assets [Table Text Block]	'
		9/30/13			6/30/13
	Non-compete agreement	$	600		$	600
	Trademarks and trade names		1,480			1,480
	Completed technology		2,010			2,010
	Customer relationships		4,950			4,950
	Software development		688			635
	Other intangible assets		325			325
	Total		10,053			10,000
	Accumulated amortization		(2,067	)		(1,778	)
	Total net balance	$	7,986		$	8,222
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]	'
	2014 (Remainder of year)	$	878
	2015		1,171
	2016		1,171
	2017		1,169
	2018		1,101
	2019		1,036
	Thereafter		1,460

Note_6_Employee_Benefit_and_Re1

Note 6 - Employee Benefit and Retirement Plans (Tables)	3 Months Ended
	Sep. 30, 2013
Pension Plan, Defined Benefit [Member]	'
Note 6 - Employee Benefit and Retirement Plans (Tables) [Line Items]	'
Schedule of Net Benefit Costs [Table Text Block]	'
		Three Months Ended
		9/30/13			9/30/12
	Service cost	$	709		$	738
	Interest cost		1,715			1,494
	Expected return on plan assets		(1,562	)		(1,602	)
	Amortization of prior service cost		29			59
	Amortization of net loss		3			-
		$	894		$	689
Postretirement Medical and Life Insurance Plan [Member]	'
Note 6 - Employee Benefit and Retirement Plans (Tables) [Line Items]	'
Schedule of Net Benefit Costs [Table Text Block]	'
		Three Months Ended
		9/30/13			9/30/12
	Service cost	$	88		$	128
	Interest cost		133			136
	Amortization of prior service credit		(126	)		(279	)
	Amortization of accumulated loss		-			40
		$	95		$	25

Note_7_Debt_Tables

Note 7 - Debt (Tables)	3 Months Ended
	Sep. 30, 2013
Debt Disclosure [Abstract]	'
Schedule of Debt [Table Text Block]	'
		9/30/13		6/30/13
	Notes payable and current maturities
	Loan and Security Agreement	$	1,364	$	1,348
	Short-term foreign credit facility		13		27
	Capitalized leases		157		182
			1,534		1,557
	Long-term debt
	Loan and Security Agreement		22,191		24,037
	Capitalized leases		181		215
			22,372		24,252
		$	23,906	$	25,809

Note_3_StockBased_Compensation2

Note 3 - Stock-Based Compensation (Details) (USD $)	3 Months Ended
In Millions, except Share data, unless otherwise specified	Sep. 30, 2013
Note 3 - Stock-Based Compensation (Details) [Line Items]	'
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares)	500,000
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	'10 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number (in Shares)	20,500
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in Shares)	8,200
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares)	471,300
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share)	$3.82
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term	'9 years 3 months
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value (in Dollars)	$0.10
Allocated Share-based Compensation Expense (in Dollars)	0.1
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars)	0.1
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	'2 years 73 days
Employee Stock Option [Member] | Minimum [Member]	'
Note 3 - Stock-Based Compensation (Details) [Line Items]	'
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	'1 year
Employee Stock Option [Member] | Maximum [Member]	'
Note 3 - Stock-Based Compensation (Details) [Line Items]	'
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	'3 years
Restricted Stock Units (RSUs) [Member]	'
Note 3 - Stock-Based Compensation (Details) [Line Items]	'
Share-Based Compensation Arrangement by Share-based Payment Award Equity Instruments Other Than Options Outstanding Intrinsic Value (in Dollars)	$0.10
Restricted Stock Units (RSUs) [Member] | Minimum [Member]	'
Note 3 - Stock-Based Compensation (Details) [Line Items]	'
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	'1 year
Restricted Stock Units (RSUs) [Member] | Maximum [Member]	'
Note 3 - Stock-Based Compensation (Details) [Line Items]	'
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	'3 years

Note_3_StockBased_Compensation3

Note 3 - Stock-Based Compensation (Details) - Weighted Average Assumptions	3 Months Ended
	Sep. 30, 2013
Weighted Average Assumptions [Abstract]	'
Risk-free interest rate	1.00%
Expected life (years)	'6 years
Expected stock volatility	52.30%
Expected dividend yield	4.00%

Note_4_Inventories_Details

Note 4 - Inventories (Details) (USD $)	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Jun. 30, 2013
Inventory Disclosure [Abstract]	'	'	'
LIFO Inventory Amount	$12,900,000	'	$12,900,000
Inventory Difference Using FIFO Basis	30,600,000	'	30,800,000
Effect of LIFO Inventory Liquidation on Income	$200,000	$0	'

Note_4_Inventories_Details_Inv

Note 4 - Inventories (Details) - Inventory (USD $)	Sep. 30, 2013	Jun. 30, 2013
In Thousands, unless otherwise specified
Inventory [Abstract]	'	'
Raw material and supplies	$30,343	$29,565
Goods in process and finished parts	21,082	20,256
Finished goods	37,356	37,507
	88,781	87,328
LIFO Reserve	-30,590	-30,827
Inventories	$58,191	$56,501

Note_5_Goodwill_and_Intangible2

Note 5 - Goodwill and Intangibles (Details)	3 Months Ended
	Sep. 30, 2013
Trademarks and Trade Names [Member]	'
Note 5 - Goodwill and Intangibles (Details) [Line Items]	'
Finite-Lived Intangible Asset, Useful Life	'14 years
Noncompete Agreements [Member]	'
Note 5 - Goodwill and Intangibles (Details) [Line Items]	'
Finite-Lived Intangible Asset, Useful Life	'8 years
Completed Technology [Member]	'
Note 5 - Goodwill and Intangibles (Details) [Line Items]	'
Finite-Lived Intangible Asset, Useful Life	'10 years
Customer Relationships [Member]	'
Note 5 - Goodwill and Intangibles (Details) [Line Items]	'
Finite-Lived Intangible Asset, Useful Life	'8 years
Software Developement [Member]	'
Note 5 - Goodwill and Intangibles (Details) [Line Items]	'
Finite-Lived Intangible Asset, Useful Life	'5 years

Note_5_Goodwill_and_Intangible3

Note 5 - Goodwill and Intangibles (Details) - Finite-Lived Intangible Assets (USD $)	Sep. 30, 2013	Jun. 30, 2013
In Thousands, unless otherwise specified
Finite-Lived Intangible Assets [Line Items]	'	'
Intangible assets, gross	$10,053	$10,000
Accumulated amortization	-2,067	-1,778
Total net balance	7,986	8,222
Noncompete Agreements [Member]	'	'
Finite-Lived Intangible Assets [Line Items]	'	'
Intangible assets, gross	600	600
Trademarks and Trade Names [Member]	'	'
Finite-Lived Intangible Assets [Line Items]	'	'
Intangible assets, gross	1,480	1,480
Completed Technology [Member]	'	'
Finite-Lived Intangible Assets [Line Items]	'	'
Intangible assets, gross	2,010	2,010
Customer Relationships [Member]	'	'
Finite-Lived Intangible Assets [Line Items]	'	'
Intangible assets, gross	4,950	4,950
Software Developement [Member]	'	'
Finite-Lived Intangible Assets [Line Items]	'	'
Intangible assets, gross	688	635
Other Intangible Assets [Member]	'	'
Finite-Lived Intangible Assets [Line Items]	'	'
Intangible assets, gross	$325	$325

Note_5_Goodwill_and_Intangible4

Note 5 - Goodwill and Intangibles (Details) - Estimated Aggregate Amortization Expense (USD $)	Sep. 30, 2013
In Thousands, unless otherwise specified
Estimated Aggregate Amortization Expense [Abstract]	'
2014 (Remainder of year)	$878
2015	1,171
2016	1,171
2017	1,169
2018	1,101
2019	1,036
Thereafter	$1,460

Note_6_Employee_Benefit_and_Re2

Note 6 - Employee Benefit and Retirement Plans (Details) - Net Periodic Benefit Costs For Defined Benefit Pension Plans (Pension Plan, Defined Benefit [Member], USD $)	3 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Pension Plan, Defined Benefit [Member]	'	'
Note 6 - Employee Benefit and Retirement Plans (Details) - Net Periodic Benefit Costs For Defined Benefit Pension Plans [Line Items]	'	'
Service cost	$709	$738
Interest cost	1,715	1,494
Expected return on plan assets	-1,562	-1,602
Amortization of prior service cost	29	59
Amortization of net loss	3	'
	$894	$689

Note_6_Employee_Benefit_and_Re3

Note 6 - Employee Benefit and Retirement Plans (Details) - Net Periodic Benefit Costs For Postretirement Medical Plan (Postretirement Medical and Life Insurance Plan [Member], USD $)	3 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Postretirement Medical and Life Insurance Plan [Member]	'	'
Note 6 - Employee Benefit and Retirement Plans (Details) - Net Periodic Benefit Costs For Postretirement Medical Plan [Line Items]	'	'
Service cost	$88	$128
Interest cost	133	136
Amortization of prior service credit	-126	-279
Amortization of accumulated loss	'	40
	$95	$25

Note_7_Debt_Details

Note 7 - Debt (Details) (USD $)	1 Months Ended	3 Months Ended		5 Months Ended	13 Months Ended
	Nov. 22, 2011	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013
				Funded Debt to EBTIDA [Member]	Funded Debt to EBTIDA [Member]	Capital Expenditures [Member]	Debt Service Coverage Ratio [Member]	Cash and Liquid Investments [Member]
Note 7 - Debt (Details) [Line Items]	'	'	'	'	'	'	'	'
Line of Credit Facility, Maximum Borrowing Capacity (in Dollars)	'	$23,000,000	'	'	'	'	'	'
Debt Instrument, Basis Spread on Variable Rate	'	1.50%	'	'	'	'	'	'
Line of Credit Facility, Covenant Terms	'	'	'	'the Company further amended the agreement to adjust the current funded debt to EBITDA ratio from 1.45 to 1, to 2.25 to 1 for the fourth quarter of fiscal 2013 and the first quarter of fiscal 2014. Thereafter, and through the end of the agreement on April 30, 2015, the funded debt to EBITDA covenant reverts to 1.45 to 1	'funded debt to EBITDA, excluding non-cash and retirement benefit expenses ("maximum leverage"), cannot exceed 1.45 to 1, 2) annual capital expenditures cannot exceed $15.0 million, 3) maintain a Debt Service Coverage Rate of a minimum of 1.25 to 1	'annual capital expenditures cannot exceed $15.0 million, 3) maintain a Debt Service Coverage Rate of a minimum of 1.25 to 1 and 4) maintain consolidated cash plus liquid investments of not less than $10.0 million	'maintain a Debt Service Coverage Rate of a minimum of 1.25 to 1	'maintain consolidated cash plus liquid investments of not less than $10.0 million at any time
Line of Credit Facility, Interest Rate During Period	'	2.00%	1.90%	'	'	'	'	'
Debt Instrument, Face Amount (in Dollars)	15,500,000	'	'	'	'	'	'	'
Term Loan Number of Years	'10 years	'	'	'	'	'	'	'
Debt Instrument, Interest Rate, Stated Percentage	4.50%	'	'	'	'	'	'	'
Line of Credit Facility, Periodic Payment (in Dollars)	160,640	'	'	'	'	'	'	'
Line of Credit Facility, Amount Outstanding (in Dollars)	'	'	$13,200,000	'	'	'	'	'

Note_7_Debt_Details_Debt_Sched

Note 7 - Debt (Details) - Debt Schedule (USD $)	Sep. 30, 2013	Jun. 30, 2013
In Thousands, unless otherwise specified
Debt Schedule [Abstract]	'	'
Loan and Security Agreement	$1,364	$1,348
Short-term foreign credit facility	13	27
Capitalized leases	157	182
	1,534	1,557
Loan and Security Agreement	22,191	24,037
Capitalized leases	181	215
	22,372	24,252
	$23,906	$25,809

Note_8_Income_Tax_Details

Note 8 - Income Tax (Details) (USD $)	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Note 8 - Income Tax (Details) [Line Items]	'	'
Income Tax Expense (Benefit)	$629,000	($387,000)
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest	845,000	-738,000
Effective Income Tax Rate Reconciliation, Percent	74.40%	52.40%
Unrecognized Tax Benefits, Period Increase (Decrease)	-91,000	'
Tax Rate Decrease In UK Applied To Net Deferred Tax Assets [Member]	'	'
Note 8 - Income Tax (Details) [Line Items]	'	'
Income Tax Expense (Benefit)	$278,000	'