L.S. Starrett Co. - Ordinary Shares (SCX) 10-Q 30 Jan 14 2014 Q2 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information	6 Months Ended
	Dec. 31, 2013	Jan. 29, 2014	Jan. 29, 2014
		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	'	6,127,829	813,666
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	31-Dec-13	'	'
Document Fiscal Year Focus	'2014	'	'
Document Fiscal Period Focus	'Q2	'	'

Consolidated_Balance_Sheets_Cu

Consolidated Balance Sheets (Current Period Unaudited) (USD $)	Dec. 31, 2013	Jun. 30, 2013
In Thousands, unless otherwise specified
Current assets:	'	'
Cash	$16,557	$19,755
Short-term investments	8,389	7,657
Accounts receivable (less allowance for doubtful accounts of $676 and $697, respectively)	34,900	37,875
Inventories	60,407	56,501
Current deferred income tax asset	4,856	4,978
Prepaid expenses and other current assets	7,356	7,182
Total current assets	132,465	133,948
Property, plant and equipment, net	50,822	51,200
Taxes receivable	3,770	3,770
Deferred tax asset, net	28,455	28,274
Intangible assets, net	7,750	8,222
Goodwill	3,034	3,034
Other assets	2,488	2,346
Total assets	228,784	230,794
Current liabilities:	'	'
Notes payable and current maturities of long term debt	1,527	1,557
Accounts payable and accrued expenses	16,468	17,084
Accrued compensation	4,928	5,304
Total current liabilities	22,923	23,945
Long-term debt, net of current portion	21,087	24,252
Other tax obligations	10,435	10,514
Deferred tax liabilities	2,512	2,182
Postretirement benefit and pension obligations	44,249	42,386
Other non-current liability	'	773
Total liabilities	101,206	104,052
Stockholders' equity:	'	'
Additional paid-in capital	53,702	52,613
Retained earnings	92,393	91,778
Accumulated other comprehensive loss	-25,451	-24,476
Total stockholders' equity	127,578	126,742
Total liabilities and stockholdersb equity	228,784	230,794
Common Class A [Member]	'	'
Stockholders' equity:	'	'
Common Stock	6,111	6,077
Common Class B [Member]	'	'
Stockholders' equity:	'	'
Common Stock	$823	$750

Consolidated_Balance_Sheets_Cu1

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $)	Dec. 31, 2013	Jun. 30, 2013
In Thousands, except Share data, unless otherwise specified
Allowance for doubtful accounts (in Dollars)	$676	$697
Common Class A [Member]	'	'
Par Value (in Dollars per share)	$1	$1
Shares Authorized	20,000,000	20,000,000
Shares Outstanding	6,110,580	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	823,361	750,563

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Net sales	$61,841	$59,829	$119,328	$116,766
Cost of goods sold	41,496	41,076	81,174	80,324
Gross margin	20,345	18,753	38,154	36,442
% of Net sales	32.90%	31.30%	32.00%	31.20%
Selling, general and administrative expenses	17,917	17,899	34,990	36,470
Operating income (loss)	2,428	854	3,164	-28
Other income	513	267	622	411
Income before income taxes	2,941	1,121	3,786	383
Income tax expense	1,159	645	1,788	258
Net income	$1,782	$476	$1,998	$125
Basic and diluted income per share (in Dollars per share)	$0.26	$0.07	$0.29	$0.02
Weighted average outstanding shares used in per share calculations:	'	'	'	'
Basic (in Shares)	6,922	6,793	6,908	6,788
Diluted (in Shares)	6,966	6,836	6,949	6,831
Dividends per share (in Dollars per share)	$0.10	$0.10	$0.20	$0.20

Consolidated_Statements_of_Com

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Net income	$1,782	$476	$1,998	$125
Other comprehensive income (loss), net of tax:	'	'	'	'
Translation gain (loss)	-2,120	-167	-945	468
Pension and postretirement plans	-15	-12	-30	-23
Other comprehensive income (loss)	-2,135	-179	-975	445
Total comprehensive income (loss)	($353)	$297	$1,023	$570

Consolidated_Statements_of_Sto

Consolidated Statements of Stockholders' Equity (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)

'

'

'

'

'

'

'

125

445

'

'

570

Dividends

'

'

'

'

'

'

'

-1,359

'

'

'

-1,359

Purchase of stock

'

-5

'

'

'

'

-57

'

'

'

'

-62

Issuance of stock dividends under ESOP

12

'

'

'

128

'

'

'

'

140

'

'

Issuance of stock

'

2

'

14

'

'

114

'

'

'

'

130

Stock-based compensation

'

'

'

'

'

'

96

'

'

'

'

96

Conversion

'

25

'

-25

'

'

'

'

'

'

'

'

Balance at Dec. 31, 2012

'

6,051

'

742

'

'

52,222

93,427

-25,089

'

'

127,353

Balance at Jun. 30, 2013

'

6,077

'

750

'

'

52,613

91,778

-24,476

'

'

126,742

Total comprehensive income (loss)

'

'

'

'

'

'

'

1,998

-975

'

'

1,023

Dividends

'

'

'

'

'

'

'

-1,383

'

'

'

-1,383

Issuance of stock dividends under ESOP

13

'

76

'

124

697

'

'

'

137

773

'

Issuance of stock

'

5

'

13

'

'

174

'

'

'

'

192

Stock-based compensation

'

'

'

'

'

'

94

'

'

'

'

94

Conversion

'

16

'

-16

'

'

'

'

'

'

'

'

Translation loss

'

'

'

'

'

'

'

'

-22,579

'

'

'

Pension and postretirement plans, net of taxes

'

'

'

'

'

'

'

'

-2,872

'

'

'

'

'

'

'

'

'

'

'

-25,451

'

'

-25,451

Balance at Dec. 31, 2013

'

$6,111

'

$823

'

'

$53,702

$92,393

($25,451)

'

'

$127,578

Consolidated_Statements_of_Sto1

Consolidated Statements of Stockholders' Equity (Unaudited) (Parentheticals) (USD $)	3 Months Ended		6 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Dividends per share	$0.10	$0.10	$0.20	$0.20

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Cash flows from operating activities:	'	'
Net income	$1,998	$125
Non-cash operating activities:	'	'
Depreciation	4,070	4,384
Amortization	578	580
Stock-based compensation	153	118
Net long-term tax obligations	'	-278
Deferred taxes	370	478
Unrealized transaction gain	-13	-6
Income on equity method investment	-152	-319
Working capital changes:	'	'
Accounts receivable	3,003	8,811
Inventories	-4,159	-1,431
Other current assets	-313	-726
Other current liabilities	-1,133	-8,596
Postretirement benefit and pension obligations	925	596
Other	316	170
Net cash provided by operating activities	5,643	3,906
Cash flows from investing activities:	'	'
Additions to property, plant and equipment	-4,277	-4,519
Purchase of investments	-52	-8,065
Proceeds from sale of investments	'	6,428
Net cash used in investing activities	-4,329	-6,156
Cash flows from financing activities:	'	'
Short-term debt repayments	-25	-171
Proceeds from long-term borrowings	100	1,500
Long-term debt repayments	-3,268	-979
Proceeds from common stock issued	270	270
Shares purchased	'	-62
Dividends paid	-1,383	-1,359
Net cash used in financing activities	-4,306	-801
Effect of exchange rate changes on cash	-206	126
Net decrease in cash	-3,198	-2,925
Cash, beginning of period	19,755	17,502
Cash, end of period	16,557	14,577
Supplemental cash flow information:	'	'
Interest paid	439	495
Income taxes paid, net	2,353	1,349
The 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	6 Months Ended
	Dec. 31, 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 six months ended December 31, 2013.

Note_2_Recent_Accounting_Prono

Note 2 - Recent Accounting Pronouncements	6 Months Ended
	Dec. 31, 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	6 Months Ended
	Dec. 31, 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 December 31, 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 December 31, 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 issued during the 6 months ended December 31, 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 December 31, 2013 was 9.0 years.  The aggregate intrinsic value of stock options outstanding as of December 31, 2013 was $0.1 million. One third of the stock options were exercisable as of December 31, 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 six months ended December 31, 2013. The aggregate intrinsic value of RSU awards outstanding as of December 31, 2013 was $0.1 million. One third of the RSU awards had vested as of December 31, 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 $0.8 million was recognized in the year ended June 30, 2013. The $0.8 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 six month period ended December 31, 2013 was $0.1 million.  As of December 31, 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 1.9 years.

Note_4_Inventories

Note 4 - Inventories	6 Months Ended
	Dec. 31, 2013
Inventory Disclosure [Abstract]	'
Inventory Disclosure [Text Block]	'
	Note 4:   Inventories
	Inventories consist of the following (in thousands):
		12/31/13			6/30/13
	Raw material and supplies	$	31,480		$	29,565
	Goods in process and finished parts		20,865			20,256
	Finished goods		38,420			37,507
			90,765			87,328
	LIFO Reserve		(30,358	)		(30,827	)
	Inventories	$	60,407		$	56,501
	LIFO inventories were $13.1 million and $12.9 million at December 31, 2013 and June 30, 2013, or approximately $30.3 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 $0.4 million decrease in cost of sales for the six months ended December 31, 2013 compared to a $1.0 million increase in the six months ended December 31, 2012.

Note_5_Goodwill_and_Intangible

Note 5 - Goodwill and Intangibles	6 Months Ended
	Dec. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]	'
Goodwill and Intangible Assets Disclosure [Text Block]	'
	Note 5:   Goodwill and Intangible Assets
	The Company’s acquisition of Bytewise in 2011 gave rise to a goodwill asset balance. The Company performed a qualitative analysis in accordance with ASU 2011-08 for its October 1, 2013 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 unit is not less than its 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 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. After assessing these and other factors the Company determined that it was more likely than not that the fair value of the reporting unit exceeded its carrying amount as of October 1, 2013.
	Amortizable intangible assets consist of the following (in thousands):
		12/31/13			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		741			635
	Other intangible assets		325			325
	Total		10,106			10,000
	Accumulated amortization		(2,356	)		(1,778	)
	Total net balance	$	7,750		$	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 and for each of the next five years and thereafter, is as follows (in thousands):
	2014 (Remainder of year)	$	591
	2015		1,181
	2016		1,181
	2017		1,179
	2018		1,111
	2019		1,045
	Thereafter		1,462

Note_6_Employee_Benefit_and_Re

Note 6 - Employee Benefit and Retirement Plans	6 Months Ended
	Dec. 31, 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						Six Months Ended
		12/31/13			12/31/12			12/31/13			12/31/12
	Service cost	$	714		$	738		$	1,423		$	1,476
	Interest cost		1,736			1,493			3,451			2,987
	Expected return on plan assets		(1,581	)		(1,406	)		(3,143	)		(3,008	)
	Amortization of prior service cost		29			58			58			117
	Amortization of net gain		3			-			6			-
		$	901		$	883		$	1,795		$	1,572
	Net periodic benefit costs for the Company's postretirement medical plan and life insurance consists of the following (in thousands):
		Three Months Ended						Six Months Ended
		12/31/13			12/31/12			12/31/13			12/31/12
	Service cost	$	89		$	128		$	177		$	256
	Interest cost		132			137			265			273
	Amortization of prior service credit		(125	)		(93	)		(251	)		(372	)
	Amortization of accumulated loss		-			39			-			79
		$	96		$	211		$	191		$	236
	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	6 Months Ended
	Dec. 31, 2013
Debt Disclosure [Abstract]	'
Debt Disclosure [Text Block]	'
	Note 7:   Debt
	Debt, including capitalized lease obligations, is comprised of the following (in thousands):
		12/31/13		6/30/13
	Notes payable and current maturities of long term debt
	Loan and Security Agreement	$	1,379	$	1,348
	Short-term foreign credit facility		1		27
	Capitalized leases		147		182
			1,527		1,557
	Long-term debt
	Loan and Security Agreement		20,940		24,037
	Capitalized leases		147		215
			21,087		24,252
		$	22,614	$	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.
	On May 9, 2013, the Company further amended the agreement to adjust the covenant for a 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 returned to 1.45 to 1.
	On December 23, 2013, the Company amended the loan agreement to reverse the portion of the May 9, 2013 agreement that called for the funded debt to EBITDA ratio to revert back to 1.45 to 1 from 2.25 to 1, beginning with the second quarter of fiscal 2014. Under this new agreement the maximum ratio of funded debt to EBITDA will remain 2.25 to 1 for the remaining term of the loan.
	The material financial covenants of the amended Loan and Security Agreement are now: 1) funded debt to EBITDA, excluding non-cash and retirement benefit expenses (“maximum leverage”), not to exceed 2.25 to 1, 2) annual capital expenditures not to 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.
	The effective interest rate on the Line of Credit under the Loan and Security Agreement for the six months ended December 31, 2013 and 2012 was 2.01% and 1.78%, 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 $12.8 million at December 31, 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 December 31, 2013.

Note_8_Income_Tax

Note 8 - Income Tax	6 Months Ended
	Dec. 31, 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 effective tax rate for the second quarter of fiscal 2014 was 39.4%. The effective tax rate for the second quarter of fiscal 2013 was 57.5%. For the first half of fiscal 2014, it was 47.2% and for the first half of fiscal 2013, it was 67.4%. No tax benefit has been recognized for losses in certain foreign subsidiaries which, together with low overall profitability, was the primary reason for the high effective tax rate in the first half of fiscal 2013. In the first half of fiscal 2014, there was 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 half of fiscal 2013, a discrete tax benefit was booked reducing the Company’s net tax liability for uncertain tax positions by $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 December 31, 2013, the Company has substantially resolved all income tax audits pending from earlier quarters and there were no other local or US federal income tax audits in progress as of December 31, 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. In the second quarter of fiscal 2014, the Company was notified by tax authorities in China of a tax review and they have requested certain documentation for the calendar year 2012. 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 six month period ended December 31, 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) carryforwards. 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	6 Months Ended
	Dec. 31, 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)	6 Months Ended
	Dec. 31, 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 six months ended December 31, 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)	6 Months Ended
	Dec. 31, 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)	6 Months Ended
	Dec. 31, 2013
Inventory Disclosure [Abstract]	'
Schedule of Inventory, Current [Table Text Block]	'
		12/31/13			6/30/13
	Raw material and supplies	$	31,480		$	29,565
	Goods in process and finished parts		20,865			20,256
	Finished goods		38,420			37,507
			90,765			87,328
	LIFO Reserve		(30,358	)		(30,827	)
	Inventories	$	60,407		$	56,501

Note_5_Goodwill_and_Intangible1

Note 5 - Goodwill and Intangibles (Tables)	6 Months Ended
	Dec. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]	'
Schedule of Finite-Lived Intangible Assets [Table Text Block]	'
		12/31/13			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		741			635
	Other intangible assets		325			325
	Total		10,106			10,000
	Accumulated amortization		(2,356	)		(1,778	)
	Total net balance	$	7,750		$	8,222
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]	'
	2014 (Remainder of year)	$	591
	2015		1,181
	2016		1,181
	2017		1,179
	2018		1,111
	2019		1,045
	Thereafter		1,462

Note_6_Employee_Benefit_and_Re1

Note 6 - Employee Benefit and Retirement Plans (Tables)	6 Months Ended
	Dec. 31, 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						Six Months Ended
		12/31/13			12/31/12			12/31/13			12/31/12
	Service cost	$	714		$	738		$	1,423		$	1,476
	Interest cost		1,736			1,493			3,451			2,987
	Expected return on plan assets		(1,581	)		(1,406	)		(3,143	)		(3,008	)
	Amortization of prior service cost		29			58			58			117
	Amortization of net gain		3			-			6			-
		$	901		$	883		$	1,795		$	1,572
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						Six Months Ended
		12/31/13			12/31/12			12/31/13			12/31/12
	Service cost	$	89		$	128		$	177		$	256
	Interest cost		132			137			265			273
	Amortization of prior service credit		(125	)		(93	)		(251	)		(372	)
	Amortization of accumulated loss		-			39			-			79
		$	96		$	211		$	191		$	236

Note_7_Debt_Tables

Note 7 - Debt (Tables)	6 Months Ended
	Dec. 31, 2013
Debt Disclosure [Abstract]	'
Schedule of Debt [Table Text Block]	'
		12/31/13		6/30/13
	Notes payable and current maturities of long term debt
	Loan and Security Agreement	$	1,379	$	1,348
	Short-term foreign credit facility		1		27
	Capitalized leases		147		182
			1,527		1,557
	Long-term debt
	Loan and Security Agreement		20,940		24,037
	Capitalized leases		147		215
			21,087		24,252
		$	22,614	$	25,809

Note_3_StockBased_Compensation2

Note 3 - Stock-Based Compensation (Details) (USD $)

6 Months Ended

18 Months Ended

6 Months Ended

18 Months Ended

6 Months Ended

12 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2013

Jun. 30, 2011

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Jun. 30, 2013

Jun. 30, 2013

Employee Stock Option [Member]

Employee Stock Option [Member]

Employee Stock Option [Member]

Restricted Stock Units (RSUs) [Member]

Restricted Stock Units (RSUs) [Member]

Restricted Stock Units (RSUs) [Member]

The 2013 ESOP [Member]

The 2013 ESOP [Member]

Minimum [Member]

Maximum [Member]

Minimum [Member]

Maximum [Member]

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

'

500,000

'

'

'

'

'

'

'

'

'

Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period

'

'

'

'

'

'1 year

'3 years

'

'1 year

'3 years

'

'

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

'

'

'

'

'

'

'

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value (in Dollars)

'

'

'

'

$100,000

'

'

'

'

'

'

'

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in Shares)

'

'

'

'

'

'

'

0

'

'

'

'

Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value (in Dollars)

'

'

'

'

'

'

'

100,000

'

'

'

'

Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay

'

'

'

'

'

'

'

'

'

'

'

2.00%

Share-based Compensation (in Dollars)

153,000

118,000

'

'

'

'

'

'

'

'

800,000

'

Cash, Cash Equivalents, and Short-term Investments (in Dollars)

'

'

'

800,000

'

'

'

'

'

'

'

'

Allocated Share-based Compensation Expense (in Dollars)

100,000

'

'

'

'

'

'

'

'

'

'

'

Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars)

$100,000

'

$100,000

'

'

'

'

'

'

'

'

'

Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition

'

'

'1 year 328 days

'

'

'

'

'

'

'

'

'

Note_3_StockBased_Compensation3

Note 3 - Stock-Based Compensation (Details) - Weighted Average Assumptions	6 Months Ended
	Dec. 31, 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 $)	6 Months Ended
In Millions, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Jun. 30, 2013
Inventory Disclosure [Abstract]	'	'	'
LIFO Inventory Amount	$13.10	'	$12.90
Inventory Difference Using FIFO Basis	30.3	'	30.8
Effect of LIFO Inventory Liquidation on Income	$0.40	$1	'

Note_4_Inventories_Details_Inv

Note 4 - Inventories (Details) - Inventory (USD $)	Dec. 31, 2013	Jun. 30, 2013
In Thousands, unless otherwise specified
Inventory [Abstract]	'	'
Raw material and supplies	$31,480	$29,565
Goods in process and finished parts	20,865	20,256
Finished goods	38,420	37,507
	90,765	87,328
LIFO Reserve	-30,358	-30,827
Inventories	$60,407	$56,501

Note_5_Goodwill_and_Intangible2

Note 5 - Goodwill and Intangibles (Details)	6 Months Ended
	Dec. 31, 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 $)	Dec. 31, 2013	Jun. 30, 2013
In Thousands, unless otherwise specified
Finite-Lived Intangible Assets [Line Items]	'	'
Intangible assets, gross	$10,106	$10,000
Accumulated amortization	-2,356	-1,778
Total net balance	7,750	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	741	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 $)	Dec. 31, 2013
In Thousands, unless otherwise specified
Estimated Aggregate Amortization Expense [Abstract]	'
2014 (Remainder of year)	$591
2015	1,181
2016	1,181
2017	1,179
2018	1,111
2019	1,045
Thereafter	$1,462

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		6 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 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	$714	$738	$1,423	$1,476
Interest cost	1,736	1,493	3,451	2,987
Expected return on plan assets	-1,581	-1,406	-3,143	-3,008
Amortization of prior service cost	29	58	58	117
Amortization of net gain	3	'	6	'
	$901	$883	$1,795	$1,572

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		6 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 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	$89	$128	$177	$256
Interest cost	132	137	265	273
Amortization of prior service credit	-125	-93	-251	-372
Amortization of accumulated loss	'	39	'	79
	$96	$211	$191	$236

Note_7_Debt_Details

Note 7 - Debt (Details) (USD $)

1 Months Ended

6 Months Ended

6 Months Ended

0 Months Ended

1 Months Ended

6 Months Ended

Nov. 22, 2011

Dec. 31, 2013

Dec. 31, 2012

Jun. 30, 2013

Jun. 30, 2012

Dec. 31, 2013

9-May-13

9-May-13

9-May-13

Dec. 23, 2013

Dec. 31, 2013

Dec. 31, 2013

London Interbank Offered Rate (LIBOR) [Member]

Fourth Quarter 2013 and First Quarter 2014 [Member]

Fourth Quarter 2013 and First Quarter 2014 [Member]

Thereafter [Member]

Thereafter [Member]

Maximum [Member]

Minimum [Member]

Originally Agreement [Member]

Amended Agreement [Member]

Amended Agreement [Member]

New Amended Agreement [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%

'

'

'

'

'

'

Current Funded Debt to EBITDA Ratio

'

'

'

'

'

'

1.45

2.25

1.45

2.25

2.25

'

Annual Capital Expenditures (in Dollars)

'

'

'

'

'

'

'

'

'

'

15,000,000

'

Debt Service Coverage Rate

'

'

'

'

'

'

'

'

'

'

'

1.25

Cash and Cash Equivalents, at Carrying Value (in Dollars)

'

16,557,000

14,577,000

19,755,000

17,502,000

'

'

'

'

'

'

10,000,000

Line of Credit Facility, Interest Rate During Period

'

2.01%

1.78%

'

'

'

'

'

'

'

'

'

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)

'

$12,800,000

'

'

'

'

'

'

'

'

'

'

Note_7_Debt_Details_Debt_Sched

Note 7 - Debt (Details) - Debt Schedule (USD $)	Dec. 31, 2013	Jun. 30, 2013
In Thousands, unless otherwise specified
Debt Schedule [Abstract]	'	'
Loan and Security Agreement	$1,379	$1,348
Short-term foreign credit facility	1	27
Capitalized leases	147	182
	1,527	1,557
Loan and Security Agreement	20,940	24,037
Capitalized leases	147	215
	21,087	24,252
	$22,614	$25,809

Note_8_Income_Tax_Details

Note 8 - Income Tax (Details) (USD $)	3 Months Ended		6 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Note 8 - Income Tax (Details) [Line Items]	'	'	'	'
Effective Income Tax Rate Reconciliation, Percent	39.40%	57.50%	-47.20%	67.40%
Unrecognized Tax Benefits, Period Increase (Decrease) (in Dollars)	'	'	'	($91,000)
Foreign Tax Authority [Member] | United Kingdom [Member]	'	'	'	'
Note 8 - Income Tax (Details) [Line Items]	'	'	'	'
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount (in Dollars)	'	'	278,000	'