Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Mar. 30, 2018 | May 04, 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) | 11,551,285 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Mar. 30, 2018 | Jun. 30, 2017 |
ASSETS | ||
Cash | $ 15,115 | $ 16,367 |
Trade accounts receivable, net | 39,752 | 31,392 |
Inventories | 80,041 | 66,193 |
Prepaid expenses | 7,738 | 8,295 |
Other | 9,461 | 7,187 |
Total current assets | 152,107 | 129,434 |
Property, plant and equipment, net | 48,031 | 48,212 |
Deferred income taxes | 18,997 | 24,198 |
Goodwill, net | 2,843 | 2,585 |
Intangible assets, net | 2,041 | 2,009 |
Other assets | 4,580 | 4,460 |
Total assets | 228,599 | 210,898 |
LIABILITIES AND EQUITY | ||
Accounts payable | 26,244 | 21,301 |
Accrued liabilities | 26,624 | 23,222 |
Total current liabilities | 52,868 | 44,523 |
Long-term debt | 7,604 | 6,323 |
Accrued retirement benefits | 29,944 | 33,706 |
Deferred income taxes | 988 | 1,011 |
Other long-term liabilities | 1,585 | 1,768 |
Total liabilities | 92,989 | 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 | 10,902 | 10,429 |
Retained earnings | 172,954 | 169,368 |
Accumulated other comprehensive loss | (25,102) | (32,671) |
Equity before treasury stock | 158,754 | 147,126 |
Less treasury stock, at cost (1,548,183 and 1,580,335 shares, respectively) | 23,713 | 24,205 |
Total Twin Disc shareholders' equity | 135,041 | 122,921 |
Noncontrolling interest | 569 | 646 |
Total equity | 135,610 | 123,567 |
Total liabilities and equity | $ 228,599 | $ 210,898 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares $ / shares in Thousands | Mar. 30, 2018 | 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) | 1,548,183 | 1,580,335 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2018 | Mar. 31, 2017 | Mar. 30, 2018 | Mar. 31, 2017 | |
Net sales | $ 65,349 | $ 45,084 | $ 166,960 | $ 114,591 |
Cost of goods sold | 44,624 | 31,790 | 114,214 | 83,175 |
Gross profit | 20,725 | 13,294 | 52,746 | 31,416 |
Marketing, engineering and administrative expenses | 14,747 | 13,737 | 43,683 | 38,772 |
Restructuring expenses | 452 | 293 | 2,501 | 1,367 |
Goodwill and other impairment charge | 2,637 | 2,637 | ||
Income (loss) from operations | 5,526 | (3,373) | 6,562 | (11,360) |
Interest expense | 80 | 61 | 227 | 236 |
Other expense (income), net | (23) | (67) | 244 | (414) |
Non-operating income (expense) | 57 | (6) | 471 | (178) |
Income (loss) before income taxes and noncontrolling interest | 5,469 | (3,367) | 6,091 | (11,182) |
Income tax expense (benefit) | 1,133 | (1,639) | 2,401 | (3,892) |
Net income (loss) | 4,336 | (1,728) | 3,690 | (7,290) |
Less: Net earnings attributable to noncontrolling interest, net of tax | (28) | (121) | (104) | (166) |
Net income (loss) attributable to Twin Disc | $ 4,308 | $ (1,849) | $ 3,586 | $ (7,456) |
Income (loss) per share data: | ||||
Basic income (loss) per share attributable to Twin Disc common shareholders (in dollars per share) | $ 0.37 | $ (0.16) | $ 0.31 | $ (0.66) |
Diluted income (loss) per share attributable to Twin Disc common shareholders (in dollars per share) | $ 0.37 | $ (0.16) | $ 0.31 | $ (0.66) |
Weighted average shares outstanding data: | ||||
Basic shares outstanding (in shares) | 11,313 | 11,250 | 11,289 | 11,236 |
Diluted shares outstanding (in shares) | 11,344 | 11,250 | 11,320 | 11,236 |
Comprehensive income (loss): | ||||
Net income (loss) | $ 4,336 | $ (1,728) | $ 3,690 | $ (7,290) |
Benefit plan adjustments, net of income taxes of $212, $398, $1,164 and $1,196, respectively | 474 | 682 | 2,682 | 2,104 |
Foreign currency translation adjustment | 1,849 | 1,059 | 4,878 | (2,456) |
Comprehensive income (loss) | 6,659 | 13 | 11,250 | (7,642) |
Less: Comprehensive income attributable to noncontrolling interest | (26) | (38) | (95) | (149) |
Comprehensive income (loss) attributable to Twin Disc | $ 6,633 | $ (25) | $ 11,155 | $ (7,791) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2018 | Mar. 31, 2017 | Mar. 30, 2018 | Mar. 31, 2017 | |
Benefit plan adjustments, tax | $ 212 | $ 398 | $ 1,164 | $ 1,196 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 30, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 3,690 | $ (7,290) |
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: | ||
Depreciation and amortization | 4,908 | 5,368 |
Restructuring expenses | 162 | 129 |
Impairment charge | 2,637 | |
Provision for deferred income taxes | 3,455 | (3,640) |
Stock compensation expense and other non-cash changes, net | 1,330 | 1,163 |
Net change in operating assets and liabilities | (12,544) | 791 |
Net cash provided (used) by operating activities | 1,001 | (842) |
Cash flows from investing activities: | ||
Acquisitions of fixed assets | (4,354) | (1,869) |
Proceeds from sale of fixed assets | 141 | 11 |
Other, net | (129) | (129) |
Net cash used by investing activities | (4,342) | (1,987) |
Cash flows from financing activities: | ||
Borrowings under revolving loan agreement | 54,415 | 38,793 |
Repayments under revolving loan agreement | (53,138) | (38,316) |
Dividends paid to noncontrolling interest | (172) | (109) |
Payments of withholding taxes on stock compensation | (422) | (140) |
Net cash provided by financing activities | 683 | 228 |
Effect of exchange rate changes on cash | 1,406 | (732) |
Net change in cash | (1,252) | (3,333) |
Cash: | ||
Beginning of period | 16,367 | 18,273 |
End of period | $ 15,115 | $ 14,940 |
Note A - Basis of Presentation
Note A - Basis of Presentation | 9 Months Ended |
Mar. 30, 2018 | |
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 February 2018, 2018 02 December 15, 2018, ( 2020 not no In March 2017, 2017 07 December 15, 2017, ( 2019 In October 2016, 2016 16 December 15, 2017 ( 2019 In August 2016, 2016 15 eight December 15, 2017 ( 2019 In March 2016, 2016 09 first 2018. not In February 2016, 2016 02 12 December 15, 2018 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 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 first 2018. not In May 2014, 2014 09 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 not first 2019. |
Note B - Inventories
Note B - Inventories | 9 Months Ended |
Mar. 30, 2018 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | B. Inventor ies The major classes of inventories were as follows: March 30, 2018 June 30, 2017 Inventories: Finished parts $ 50,830 $ 45,829 Work in process 11,850 8,358 Raw materials 17,361 12,006 $ 80,041 $ 66,193 |
Note C - Warranty
Note C - Warranty | 9 Months Ended |
Mar. 30, 2018 | |
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 three March 30, 2018 March 31, 2017: For the Quarter Ended For the Three Quarters Ended March 30, 2018 March 31, 2017 March 30, 2018 March 31, 2017 Reserve balance, beginning of period $ 2,467 $ 2,542 $ 2,062 $ 3,607 Current period expense and adjustments 1,217 (189 ) 2,598 54 Payments or credits to customers (559 ) (456 ) (1,581 ) (1,724 ) Translation 24 5 70 (35 ) Reserve balance, end of period $ 3,149 $ 1,902 $ 3,149 $ 1,902 The current portion of the warranty accrual ( $2,705 $1,507 March 30, 2018 March 31, 2017, $444 $395 March 30, 2018 March 31, 2017, |
Note D - Contingencies
Note D - Contingencies | 9 Months Ended |
Mar. 30, 2018 | |
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 |
Note E - Business Segments
Note E - Business Segments | 9 Months Ended |
Mar. 30, 2018 | |
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 Information about the Company’s segments is summarized as follows: For the Quarter Ended For the Three Quarters Ended March 30, 2018 March 31, 2017 March 30, 2018 March 31, 2017 Net sales Manufacturing segment sales $ 58,482 $ 39,793 $ 146,935 $ 99,764 Distribution segment sales 22,854 17,596 61,852 47,282 Inter/Intra segment elimination – manufacturing (13,494 ) (9,427 ) (33,315 ) (25,782 ) Inter/Intra segment elimination – distribution (2,493 ) (2,878 ) (8,512 ) (6,673 ) $ 65,349 $ 45,084 $ 166,960 $ 114,591 Net income (loss) attributable to Twin Disc Manufacturing segment net income (loss) $ 6,910 $ (213 ) $ 12,100 $ (3,092 ) Distribution segment net income 1,149 679 2,205 1,446 Corporate and eliminations (3,751 ) (2,315 ) (10,719 ) (5,810 ) $ 4,308 $ (1,849 ) $ 3,586 $ (7,456 ) Assets March 30, 2018 June 30, 2017 Manufacturing segment assets $ 249,348 $ 222,136 Distribution segment assets 51,163 50,418 Corporate assets and elimination of intercompany assets (71,912 ) (61,656 ) $ 228,599 $ 210,898 |
Note F - Stock-based Compensati
Note F - Stock-based Compensation | 9 Months Ended |
Mar. 30, 2018 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | F. Stock-Based Compensation Performance Stock Awards (“PSA”) During the first three 2018 2017, 54.9 109.6 2018 three June 30, 2020. 69.2. The fiscal 2017 three June 30, 2019. 149.4. not There were 206.2 181.8 March 30, 2018 March 31, 2017, $138 $15 March 30, 2018 March 31, 2017, $274 $45 three March 30, 2018 March 31, 2017, March 30, 2018 $11.75. March 30, 2018, $2,036 2018, 2017 2016 March 30, 2018 March 31, 2017 $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 three 2018 2017, 85.3 181.8 237.7 269.6 March 30, 2018 March 31, 2017, 32.7 three March 30, 2018. no three March 31, 2017. $186 $430 March 30, 2018 March 31, 2017, $1,113 $1,126 three March 30, 2018 March 31, 2017, March 30, 2018 March 31, 2017 $1,809 $587, March 30, 2018, $1,512 three |
Note G - Pension and Other Post
Note G - Pension and Other Postretirement Benefit Plans | 9 Months Ended |
Mar. 30, 2018 | |
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 Three Quarters Ended March 30, 2018 March 31, 2017 March 30, 2018 March 31, 2017 Pension Benefits: Service cost $ 260 $ 238 $ 763 $ 718 Interest cost 1,089 1,130 3,225 3,373 Expected return on plan assets (1,524 ) (1,537 ) (4,565 ) (4,436 ) Amortization of transition obligation 9 8 27 26 Amortization of prior service cost 1 1 3 3 Amortization of actuarial net loss 759 900 2,277 2,698 Net periodic benefit cost $ 594 $ 740 $ 1,730 $ 2,382 Postretirement Benefits: Service cost $ 5 $ 6 $ 15 $ 19 Interest cost 78 123 247 367 Amortization of actuarial net loss (59 ) 181 (115 ) 545 Net periodic benefit cost $ 24 $ 310 $ 147 $ 931 The Company expects to contribute approximately $2,265 2018. March 30, 2018, $1,949 The Company has reclassified $474 $212 March 30, 2018, $682 $398 March 31, 2017. $2,682 $1,164 three March 30, 2018, $2,104 $1,196 three March 31, 2017. |
Note H - Income Taxes
Note H - Income Taxes | 9 Months Ended |
Mar. 30, 2018 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | H. Income Taxes On December 22, 2017, January 1, 2018; June 30, For the three March 30, 2018 March 31, 2017, 39.4% 34.8% $4,293 70.5%. first $3,803 62.4%. IRC§199, 3.1%. 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 Three Quarters Ended March 30, 2018 March 31, 2017 Income (loss) before income taxes $ 6,091 $ (11,182 ) Income tax expense (benefit) 2,401 (3,892 ) Effective tax rate 39.4 % 34.8 % The permanent reduction to the U.S. federal corporate income tax rate from 35% 21% January 1, 2018 ( 27.6% June 30, 2018 first three 27.6% 34% 2018 21% 2018 21% June 30, 2018. The Company completed a provisional calculation to determine the impact of a one March 30, 2018, 2018, two zero no 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 three 2018. not not may Under ASC Topic 740, Income Taxes 740" December 22, 2017. December 29, 2017. 118 118” 118 three 1 2 not 3 no 740 no one not 118 not one three March 30, 2018, 2018. Accordingly, the Company’s income tax provision as of March 30, 2018 For the Three Quarters Ended March 30, 2018 Transition Tax (provisional) $ - Net impact on U.S. deferred tax assets and liabilities (provisional) (4,293 ) Net discrete impacts of the enactment of the Tax Act $ (4,293 ) The Company maintains valuation allowances when it is more likely than not not 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 $798 March 30, 2018 no March 30, 2018. 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. 2018. |
Note I - Goodwill and Other Int
Note I - Goodwill and Other Intangibles | 9 Months Ended |
Mar. 30, 2018 | |
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 March 30, 2018 June 30, 2017, For the quarter ended March 30, 2018, no not not March 30, 2018. June 30, 2018. The changes in the 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 258 - 258 Balance at March 30, 2018 $ 16,665 $ (13,822 ) $ 2,843 At March 30, 2018, 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 - (135 ) (135 ) (45 ) (66 ) (24 ) Translation adjustment 139 - 139 - 129 10 Balance at March 30, 2018 $ 13,594 $ (11,767 ) $ 1,827 $ 345 $ 1,382 $ 100 The weighted average remaining useful life of the intangible assets included in the table above is approximately 13 Intangible amortization expense was $46 $41 March 30, 2018, March 31, 2017, $135 $126 three March 30, 2018, March 31, 2017, 2018 five Fiscal Year 2018 $ 59 2019 191 2020 176 2021 161 2022 154 2023 153 The gross carrying amount of the Company’s intangible assets that have indefinite lives and are not March 30, 2018 June 30, 2017 $214 $205, |
Note J - Long-term Debt
Note J - Long-term Debt | 9 Months Ended |
Mar. 30, 2018 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | J. Long-term Debt Long-term debt at March 30, 2018 June 30, 2017 March 30, 2018 June 30, 2017 Revolving loan $ 7,565 $ 6,285 Other 39 38 Subtotal 7,604 6,323 Less: current maturities and short-term borrowings - - Total long-term debt $ 7,604 $ 6,323 The revolving loan agreement pertains to the revolving loan facility which the Company entered into on April 22, 2016 March 30, 2018, $34,581, $26,146 March 30, 2018, 3.41%. The Company’s revolving loan agreement approximates fair value at March 30, 2018 June 30, 2017. 2 |
Note K - Shareholders' Equity
Note K - Shareholders' Equity | 9 Months Ended |
Mar. 30, 2018 | |
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 March 30, 2018 not three March 30, 2018 March 31, 2017. The following is a reconciliation of the Company’s equity balances for the first three 2018 2017: Twin Disc, Inc. Shareholders’ Equity Accumulated Other Non- Common Retained Comprehensive Treasury Controlling Total Stock Earnings Income (Loss) Stock Interest Equity Balance, June 30, 2017 $ 10,429 $ 169,368 $ (32,671 ) $ (24,205 ) $ 646 $ 123,567 Net income 3,586 104 3,690 Translation adjustments 4,887 (9 ) 4,878 Benefit plan adjustments, net of tax 2,682 2,682 Cash dividends (172 ) (172 ) Compensation expense 1,387 1,387 Shares (acquired) issued, net (914 ) 492 (422 ) Balance, March 30, 2018 $ 10,902 $ 172,954 $ (25,102 ) $ (23,713 ) $ 569 $ 135,610 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 (7,456 ) 166 (7,290 ) Translation adjustments (2,439 ) (17 ) (2,456 ) Benefit plan adjustments, net of tax 2,104 2,104 Cash dividends (109 ) (109 ) Compensation expense and tax shortfall 1,004 1,004 Shares (acquired) issued, net (2,725 ) 2,585 (140 ) Balance, March 31, 2017 $ 10,040 $ 168,206 $ (44,478 ) $ (24,205 ) $ 603 $ 110,166 Reconciliations for the changes in accumulated other comprehensive income (loss), net of tax, by component for the quarters ended September 29, December 29, 2017, March 30, 2018, September 30, December 30, 2016, March 31, 2017 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 adjustment during the quarter 1,851 - Amounts reclassified from accumulated other comprehensive income - 474 Net current period other comprehensive income 1,851 474 Balance at March 30, 2018 $ 11,017 $ (36,119 ) 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 ) Translation adjustment during the quarter 1,142 - Amounts reclassified from accumulated other comprehensive income - 682 Net current period other comprehensive income 1,142 682 Balance at March 31, 2017 $ 2,719 $ (47,197 ) Reconciliation for the changes in benefit plan adjustments, net of tax for the quarter and three March 30, 2018 Amount Reclassified Amount Reclassified Quarter Ended Three Quarters Ended March 30, 2018 March 30, 2018 Changes in benefit plan items Actuarial losses $ 676 (a) $ 2,121 (a) Transition asset and prior service benefit 10 (a) 30 (a) Total amortization 686 2,151 Other benefit plan adjustments - (1,695 ) Income taxes 212 1,164 Total reclassification net of tax $ 474 $ 2,682 (a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note G "Pension and Other Postretirement Benefit Plans" for further details). Reconciliation for the changes in benefit plan adjustments, net of tax for the quarter and three March 31, 2017 Amount Reclassified Amount Reclassified Quarter Ended Three Quarters Ended March 31, 2017 March 31, 2017 Changes in benefit plan items Actuarial losses $ 1,071 (a) $ 3,271 (a) Transition asset and prior service benefit 9 (a) 29 (a) Total amortization 1,080 3,300 Income taxes 398 1,196 Total reclassification net of tax $ 682 $ 2,104 (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 | 9 Months Ended |
Mar. 30, 2018 | |
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 $452 $2,501 three March 30, 2018, three March 31, 2017, $293 $1,367, Restructuring activities since June 2015 164 March 30, 2018 $8,376. The following is a rollforward of restructuring activity: Accrued restructuring liability, June 30, 2017 $ 92 Additions during the year 2,501 Payments and adjustments during the year (2,578 ) Accrued restructuring liability, March 30, 2018 $ 15 |
Note M - Earnings Per Share
Note M - Earnings Per Share | 9 Months Ended |
Mar. 30, 2018 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | M. Earnings Per Share The Company calculates basic earnings per share based upon the weighted average number of common shares outstanding during the period, while the calculation of diluted earnings per share includes the dilutive effect of potential common shares outstanding during the period. The calculation of diluted earnings per share excludes all potential common shares if their inclusion would have an anti-dilutive effect. Restricted stock award recipients have a non-forfeitable right to receive dividends declared by the Company, and are therefore included in computing earnings per share pursuant to the two The components of basic and diluted earnings per share were as follows: For the Quarter Ended For the Three Quarters Ended March 30, 2018 March 31, 2017 March 30, 2018 March 31, 2017 Basic: Net income (loss) $ 4,336 $ (1,728 ) $ 3,690 $ (7,290 ) Less: Net earnings attributable to noncontrolling interest (28 ) (121 ) (104 ) (166 ) Less: Undistributed earnings attributable to unvested shares (98 ) - (86 ) - Net income (loss) available to Twin Disc shareholders 4,210 (1,849 ) 3,500 (7,456 ) Weighted average shares outstanding - basic 11,313 11,250 11,289 11,236 Basic Income (Loss) Per Share: Net income (loss) per share - basic $ 0.37 $ (0.16 ) $ 0.31 $ (0.66 ) Diluted: Net income (loss) $ 4,336 $ (1,728 ) $ 3,690 $ (7,290 ) Less: Net earnings attributable to noncontrolling interest (28 ) (121 ) (104 ) (166 ) Less: Undistributed earnings attributable to unvested shares (98 ) - (86 ) - Net income (loss) available to Twin Disc shareholders 4,210 (1,849 ) 3,500 (7,456 ) Weighted average shares outstanding - basic 11,313 11,250 11,289 11,236 Effect of dilutive stock awards 31 - 31 - Weighted average shares outstanding - diluted 11,344 11,250 11,320 11,236 Diluted Income (Loss) Per Share: Net income (loss) per share - diluted $ 0.37 $ (0.16 ) $ 0.31 $ (0.66 ) The following potential common shares were excluded from diluted EPS for the quarter and three March 30, 2018 179.1 237.7 5.4 The following potential common shares were excluded from diluted EPS for the quarter and three March 31, 2017 181.8 269.6 13.2 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 30, 2018 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Releases In February 2018, 2018 02 December 15, 2018, ( 2020 not no In March 2017, 2017 07 December 15, 2017, ( 2019 In October 2016, 2016 16 December 15, 2017 ( 2019 In August 2016, 2016 15 eight December 15, 2017 ( 2019 In March 2016, 2016 09 first 2018. not In February 2016, 2016 02 12 December 15, 2018 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 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 first 2018. not In May 2014, 2014 09 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 not first 2019. |
Note B - Inventories (Tables)
Note B - Inventories (Tables) | 9 Months Ended |
Mar. 30, 2018 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | March 30, 2018 June 30, 2017 Inventories: Finished parts $ 50,830 $ 45,829 Work in process 11,850 8,358 Raw materials 17,361 12,006 $ 80,041 $ 66,193 |
Note C - Warranty (Tables)
Note C - Warranty (Tables) | 9 Months Ended |
Mar. 30, 2018 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | For the Quarter Ended For the Three Quarters Ended March 30, 2018 March 31, 2017 March 30, 2018 March 31, 2017 Reserve balance, beginning of period $ 2,467 $ 2,542 $ 2,062 $ 3,607 Current period expense and adjustments 1,217 (189 ) 2,598 54 Payments or credits to customers (559 ) (456 ) (1,581 ) (1,724 ) Translation 24 5 70 (35 ) Reserve balance, end of period $ 3,149 $ 1,902 $ 3,149 $ 1,902 |
Note E - Business Segments (Tab
Note E - Business Segments (Tables) | 9 Months Ended |
Mar. 30, 2018 | |
Notes Tables | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | For the Quarter Ended For the Three Quarters Ended March 30, 2018 March 31, 2017 March 30, 2018 March 31, 2017 Net sales Manufacturing segment sales $ 58,482 $ 39,793 $ 146,935 $ 99,764 Distribution segment sales 22,854 17,596 61,852 47,282 Inter/Intra segment elimination – manufacturing (13,494 ) (9,427 ) (33,315 ) (25,782 ) Inter/Intra segment elimination – distribution (2,493 ) (2,878 ) (8,512 ) (6,673 ) $ 65,349 $ 45,084 $ 166,960 $ 114,591 Net income (loss) attributable to Twin Disc Manufacturing segment net income (loss) $ 6,910 $ (213 ) $ 12,100 $ (3,092 ) Distribution segment net income 1,149 679 2,205 1,446 Corporate and eliminations (3,751 ) (2,315 ) (10,719 ) (5,810 ) $ 4,308 $ (1,849 ) $ 3,586 $ (7,456 ) |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | Assets March 30, 2018 June 30, 2017 Manufacturing segment assets $ 249,348 $ 222,136 Distribution segment assets 51,163 50,418 Corporate assets and elimination of intercompany assets (71,912 ) (61,656 ) $ 228,599 $ 210,898 |
Note G - Pension and Other Po24
Note G - Pension and Other Postretirement Benefit Plans (Tables) | 9 Months Ended |
Mar. 30, 2018 | |
Notes Tables | |
Schedule of Net Benefit Costs [Table Text Block] | For the Quarter Ended For the Three Quarters Ended March 30, 2018 March 31, 2017 March 30, 2018 March 31, 2017 Pension Benefits: Service cost $ 260 $ 238 $ 763 $ 718 Interest cost 1,089 1,130 3,225 3,373 Expected return on plan assets (1,524 ) (1,537 ) (4,565 ) (4,436 ) Amortization of transition obligation 9 8 27 26 Amortization of prior service cost 1 1 3 3 Amortization of actuarial net loss 759 900 2,277 2,698 Net periodic benefit cost $ 594 $ 740 $ 1,730 $ 2,382 Postretirement Benefits: Service cost $ 5 $ 6 $ 15 $ 19 Interest cost 78 123 247 367 Amortization of actuarial net loss (59 ) 181 (115 ) 545 Net periodic benefit cost $ 24 $ 310 $ 147 $ 931 |
Note H - Income Taxes (Tables)
Note H - Income Taxes (Tables) | 9 Months Ended |
Mar. 30, 2018 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | For the Three Quarters Ended March 30, 2018 March 31, 2017 Income (loss) before income taxes $ 6,091 $ (11,182 ) Income tax expense (benefit) 2,401 (3,892 ) Effective tax rate 39.4 % 34.8 % For the Three Quarters Ended March 30, 2018 Transition Tax (provisional) $ - Net impact on U.S. deferred tax assets and liabilities (provisional) (4,293 ) Net discrete impacts of the enactment of the Tax Act $ (4,293 ) |
Note I - Goodwill and Other I26
Note I - Goodwill and Other Intangibles (Tables) | 9 Months Ended |
Mar. 30, 2018 | |
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 258 - 258 Balance at March 30, 2018 $ 16,665 $ (13,822 ) $ 2,843 |
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 - (135 ) (135 ) (45 ) (66 ) (24 ) Translation adjustment 139 - 139 - 129 10 Balance at March 30, 2018 $ 13,594 $ (11,767 ) $ 1,827 $ 345 $ 1,382 $ 100 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Fiscal Year 2018 $ 59 2019 191 2020 176 2021 161 2022 154 2023 153 |
Note J - Long-term Debt (Tables
Note J - Long-term Debt (Tables) | 9 Months Ended |
Mar. 30, 2018 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | March 30, 2018 June 30, 2017 Revolving loan $ 7,565 $ 6,285 Other 39 38 Subtotal 7,604 6,323 Less: current maturities and short-term borrowings - - Total long-term debt $ 7,604 $ 6,323 |
Note K - Shareholders' Equity (
Note K - Shareholders' Equity (Tables) | 9 Months Ended |
Mar. 30, 2018 | |
Notes Tables | |
Schedule of Stockholders Equity [Table Text Block] | Twin Disc, Inc. Shareholders’ Equity Accumulated Other Non- Common Retained Comprehensive Treasury Controlling Total Stock Earnings Income (Loss) Stock Interest Equity Balance, June 30, 2017 $ 10,429 $ 169,368 $ (32,671 ) $ (24,205 ) $ 646 $ 123,567 Net income 3,586 104 3,690 Translation adjustments 4,887 (9 ) 4,878 Benefit plan adjustments, net of tax 2,682 2,682 Cash dividends (172 ) (172 ) Compensation expense 1,387 1,387 Shares (acquired) issued, net (914 ) 492 (422 ) Balance, March 30, 2018 $ 10,902 $ 172,954 $ (25,102 ) $ (23,713 ) $ 569 $ 135,610 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 (7,456 ) 166 (7,290 ) Translation adjustments (2,439 ) (17 ) (2,456 ) Benefit plan adjustments, net of tax 2,104 2,104 Cash dividends (109 ) (109 ) Compensation expense and tax shortfall 1,004 1,004 Shares (acquired) issued, net (2,725 ) 2,585 (140 ) Balance, March 31, 2017 $ 10,040 $ 168,206 $ (44,478 ) $ (24,205 ) $ 603 $ 110,166 |
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 adjustment during the quarter 1,851 - Amounts reclassified from accumulated other comprehensive income - 474 Net current period other comprehensive income 1,851 474 Balance at March 30, 2018 $ 11,017 $ (36,119 ) 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 ) Translation adjustment during the quarter 1,142 - Amounts reclassified from accumulated other comprehensive income - 682 Net current period other comprehensive income 1,142 682 Balance at March 31, 2017 $ 2,719 $ (47,197 ) |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Amount Reclassified Amount Reclassified Quarter Ended Three Quarters Ended March 30, 2018 March 30, 2018 Changes in benefit plan items Actuarial losses $ 676 (a) $ 2,121 (a) Transition asset and prior service benefit 10 (a) 30 (a) Total amortization 686 2,151 Other benefit plan adjustments - (1,695 ) Income taxes 212 1,164 Total reclassification net of tax $ 474 $ 2,682 Amount Reclassified Amount Reclassified Quarter Ended Three Quarters Ended March 31, 2017 March 31, 2017 Changes in benefit plan items Actuarial losses $ 1,071 (a) $ 3,271 (a) Transition asset and prior service benefit 9 (a) 29 (a) Total amortization 1,080 3,300 Income taxes 398 1,196 Total reclassification net of tax $ 682 $ 2,104 |
Note L - Restructuring of Ope29
Note L - Restructuring of Operations (Tables) | 9 Months Ended |
Mar. 30, 2018 | |
Notes Tables | |
Restructuring and Related Costs [Table Text Block] | Accrued restructuring liability, June 30, 2017 $ 92 Additions during the year 2,501 Payments and adjustments during the year (2,578 ) Accrued restructuring liability, March 30, 2018 $ 15 |
Note M - Earnings Per Share (Ta
Note M - Earnings Per Share (Tables) | 9 Months Ended |
Mar. 30, 2018 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For the Quarter Ended For the Three Quarters Ended March 30, 2018 March 31, 2017 March 30, 2018 March 31, 2017 Basic: Net income (loss) $ 4,336 $ (1,728 ) $ 3,690 $ (7,290 ) Less: Net earnings attributable to noncontrolling interest (28 ) (121 ) (104 ) (166 ) Less: Undistributed earnings attributable to unvested shares (98 ) - (86 ) - Net income (loss) available to Twin Disc shareholders 4,210 (1,849 ) 3,500 (7,456 ) Weighted average shares outstanding - basic 11,313 11,250 11,289 11,236 Basic Income (Loss) Per Share: Net income (loss) per share - basic $ 0.37 $ (0.16 ) $ 0.31 $ (0.66 ) Diluted: Net income (loss) $ 4,336 $ (1,728 ) $ 3,690 $ (7,290 ) Less: Net earnings attributable to noncontrolling interest (28 ) (121 ) (104 ) (166 ) Less: Undistributed earnings attributable to unvested shares (98 ) - (86 ) - Net income (loss) available to Twin Disc shareholders 4,210 (1,849 ) 3,500 (7,456 ) Weighted average shares outstanding - basic 11,313 11,250 11,289 11,236 Effect of dilutive stock awards 31 - 31 - Weighted average shares outstanding - diluted 11,344 11,250 11,320 11,236 Diluted Income (Loss) Per Share: Net income (loss) per share - diluted $ 0.37 $ (0.16 ) $ 0.31 $ (0.66 ) |
Note B - Inventories - Inventor
Note B - Inventories - Inventories (Details) - USD ($) $ in Thousands | Mar. 30, 2018 | Jun. 30, 2017 |
Inventories: | ||
Finished parts | $ 50,830 | $ 45,829 |
Work in process | 11,850 | 8,358 |
Raw materials | 17,361 | 12,006 |
Total inventories | $ 80,041 | $ 66,193 |
Note C - Warranty (Details Text
Note C - Warranty (Details Textual) - USD ($) $ in Thousands | Mar. 30, 2018 | Mar. 31, 2017 |
Product Warranty Accrual, Current | $ 2,705 | $ 1,507 |
Product Warranty Accrual, Noncurrent | $ 444 | $ 395 |
Note C - Warranty - Warranty (D
Note C - Warranty - Warranty (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2018 | Mar. 31, 2017 | Mar. 30, 2018 | Mar. 31, 2017 | |
Reserve balance, beginning of period | $ 2,467 | $ 2,542 | $ 2,062 | $ 3,607 |
Current period expense and adjustments | 1,217 | (189) | 2,598 | 54 |
Payments or credits to customers | (559) | (456) | (1,581) | (1,724) |
Translation | 24 | 5 | 70 | (35) |
Reserve balance, end of period | $ 3,149 | $ 1,902 | $ 3,149 | $ 1,902 |
Note E - Business Segments (Det
Note E - Business Segments (Details Textual) | 9 Months Ended |
Mar. 30, 2018 | |
Number of Reportable Segments | 2 |
Note E - Business Segments - Re
Note E - Business Segments - Revenues by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2018 | Mar. 31, 2017 | Mar. 30, 2018 | Mar. 31, 2017 | |
Net sales | $ 65,349 | $ 45,084 | $ 166,960 | $ 114,591 |
Net income (loss) | 4,308 | (1,849) | 3,586 | (7,456) |
Corporate, Non-Segment [Member] | ||||
Net income (loss) | (3,751) | (2,315) | (10,719) | (5,810) |
Manufacturing Segment [Member] | Operating Segments [Member] | ||||
Net sales | 58,482 | 39,793 | 146,935 | 99,764 |
Net income (loss) | 6,910 | (213) | 12,100 | (3,092) |
Manufacturing Segment [Member] | Intersegment Eliminations [Member] | ||||
Net sales | (13,494) | (9,427) | (33,315) | (25,782) |
Distribution Segment [Member] | Operating Segments [Member] | ||||
Net sales | 22,854 | 17,596 | 61,852 | 47,282 |
Net income (loss) | 1,149 | 679 | 2,205 | 1,446 |
Distribution Segment [Member] | Intersegment Eliminations [Member] | ||||
Net sales | $ (2,493) | $ (2,878) | $ (8,512) | $ (6,673) |
Note E - Business Segments - As
Note E - Business Segments - Assets by Segment (Details) - USD ($) $ in Thousands | Mar. 30, 2018 | Jun. 30, 2017 |
Segment Assets | $ 228,599 | $ 210,898 |
Operating Segments [Member] | Manufacturing Segment [Member] | ||
Segment Assets | 249,348 | 222,136 |
Operating Segments [Member] | Distribution Segment [Member] | ||
Segment Assets | 51,163 | 50,418 |
Corporate, Non-Segment [Member] | ||
Segment Assets | $ (71,912) | $ (61,656) |
Note F - Stock-based Compensa37
Note F - Stock-based Compensation (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2018 | Mar. 31, 2017 | Mar. 30, 2018 | Mar. 31, 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 | 69,200 | 149,400 | 69,200 | 149,400 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 206,200 | 181,800 | 206,200 | 181,800 |
Allocated Share-based Compensation Expense, Total | $ 138,000 | $ 15,000 | $ 274,000 | $ 45,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Ending Balance | $ 11.75 | $ 11.75 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $ 2,036,000 | $ 2,036,000 | ||
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, Ending Balance | 237,700 | 269,600 | 237,700 | 269,600 |
Allocated Share-based Compensation Expense, Total | $ 186,000 | $ 430,000 | $ 1,113,000 | $ 1,126,000 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $ 1,512,000 | 1,512,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 1,809,000 | $ 587,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 32,700 | 0 | ||
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 | 9 Months Ended | ||
Mar. 30, 2018 | Mar. 31, 2017 | Mar. 30, 2018 | Mar. 31, 2017 | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, after Tax | $ 474 | $ 682 | $ 2,682 | $ 2,104 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, Tax | 212 | $ 398 | 1,164 | $ 1,196 |
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 | $ 1,949 |
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 | 9 Months Ended | ||
Mar. 30, 2018 | Mar. 31, 2017 | Mar. 30, 2018 | Mar. 31, 2017 | |
Pension Plan [Member] | ||||
Service cost | $ 260 | $ 238 | $ 763 | $ 718 |
Interest cost | 1,089 | 1,130 | 3,225 | 3,373 |
Expected return on plan assets | (1,524) | (1,537) | (4,565) | (4,436) |
Amortization of transition obligation | 9 | 8 | 27 | 26 |
Amortization of prior service cost | 1 | 1 | 3 | 3 |
Amortization of actuarial net loss | 759 | 900 | 2,277 | 2,698 |
Net periodic benefit cost | 594 | 740 | 1,730 | 2,382 |
Other Postretirement Benefits Plan [Member] | ||||
Service cost | 5 | 6 | 15 | 19 |
Interest cost | 78 | 123 | 247 | 367 |
Amortization of actuarial net loss | (59) | 181 | (115) | 545 |
Net periodic benefit cost | $ 24 | $ 310 | $ 147 | $ 931 |
Note H - Income Taxes (Details
Note H - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 29, 2017 | Mar. 30, 2018 | Mar. 31, 2017 | Jun. 30, 2019 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 39.40% | 34.80% | ||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 4,293 | |||
Effective Income Tax Rate Reconciliation, Deferred Tax Asset and Liability Adjustment on Enacted Tax Act, Percent | 70.50% | |||
Effective Income Tax Rate Reconciliation, Deduction, Qualified Production Activity, Percent | 3.10% | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 27.60% | |||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 798 | |||
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 | 62.40% | |||
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 | 9 Months Ended | ||
Mar. 30, 2018 | Mar. 31, 2017 | Mar. 30, 2018 | Mar. 31, 2017 | |
Income (loss) before income taxes | $ 5,469 | $ (3,367) | $ 6,091 | $ (11,182) |
Income tax expense (benefit) | $ 1,133 | $ (1,639) | $ 2,401 | $ (3,892) |
Effective tax rate | 39.40% | 34.80% | ||
Net impact on U.S. deferred tax assets and liabilities (provisional) | $ (4,293) | |||
Net discrete impacts of the enactment of the Tax Act | $ (4,293) |
Note I - Goodwill and Other I42
Note I - Goodwill and Other Intangibles (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 30, 2018 | Mar. 31, 2017 | Mar. 30, 2018 | Mar. 31, 2017 | Jun. 30, 2017 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 13 years | ||||
Amortization of Intangible Assets, Total | $ 46 | $ 41 | $ 135 | $ 126 | |
Indefinite-lived Intangible Assets (Excluding Goodwill), Ending Balance | 214 | $ 214 | $ 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 | 9 Months Ended | |
Mar. 30, 2018 | Jun. 30, 2017 | |
Balance, gross carrying amount | $ 16,407 | |
Translation adjustment | 258 | |
Balance, gross carrying amount | 16,665 | |
Balance, accumulated impairment | (13,822) | $ (13,822) |
Balance, net book value | 2,585 | |
Translation adjustment | 258 | |
Balance, net book value | $ 2,843 |
Note I - Goodwill and Other I44
Note I - Goodwill and Other Intangibles - Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2018 | Mar. 31, 2017 | Mar. 30, 2018 | Mar. 31, 2017 | |
Balance, Gross Carrying Amount | $ 13,436 | |||
Addition, Gross Carrying Amount | 19 | |||
Translation adjustment, Gross Carrying Amount | 139 | |||
Balance, Gross Carrying Amount | $ 13,594 | 13,594 | ||
Balance, Accumulated Amortization/Impairment | (11,632) | |||
Amortization | (46) | $ (41) | (135) | $ (126) |
Balance, Accumulated Amortization/Impairment | (11,767) | (11,767) | ||
Balance, Net Book Value | 1,804 | |||
Addition, Net Book Value | 19 | |||
Translation adjustment, Net Book Value | 139 | |||
Balance, Net Book Value | 1,827 | 1,827 | ||
Licensing Agreements [Member] | ||||
Amortization | (45) | |||
Balance, Net Book Value | 390 | |||
Addition, Net Book Value | ||||
Translation adjustment, Net Book Value | ||||
Balance, Net Book Value | 345 | 345 | ||
Trade Names [Member] | ||||
Amortization | (66) | |||
Balance, Net Book Value | 1,319 | |||
Addition, Net Book Value | ||||
Translation adjustment, Net Book Value | 129 | |||
Balance, Net Book Value | 1,382 | 1,382 | ||
Other Intangible Assets [Member] | ||||
Amortization | (24) | |||
Balance, Net Book Value | 95 | |||
Addition, Net Book Value | 19 | |||
Translation adjustment, Net Book Value | 10 | |||
Balance, Net Book Value | $ 100 | $ 100 |
Note I - Goodwill and Other I45
Note I - Goodwill and Other Intangibles - Estimated Intangibles (Details) $ in Thousands | Mar. 30, 2018USD ($) |
2,018 | $ 59 |
2,019 | 191 |
2,020 | 176 |
2,021 | 161 |
2,022 | 154 |
2,023 | $ 153 |
Note J - Long-term Debt (Detail
Note J - Long-term Debt (Details Textual) - Revolving Loan [Member] - Bank of Montreal [Member] $ in Thousands | Mar. 30, 2018USD ($) |
Line of Credit Facility, Current Borrowing Capacity | $ 34,581 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 26,146 |
Line of Credit Facility, Interest Rate at Period End | 3.41% |
Note J - Long-term Debt - Long-
Note J - Long-term Debt - Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 30, 2018 | Jun. 30, 2017 |
Long-term debt | $ 7,604 | $ 6,323 |
Less: current maturities and short-term borrowings | ||
Total long-term debt | 7,604 | 6,323 |
Revolving Loan [Member] | ||
Long-term debt | 7,565 | 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 | 9 Months Ended | |
Mar. 30, 2018 | Mar. 30, 2017 | |
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 | 9 Months Ended | ||
Mar. 30, 2018 | Mar. 31, 2017 | Mar. 30, 2018 | Mar. 31, 2017 | |
Balance | $ 123,567 | $ 117,053 | ||
Net income (loss) | $ 4,336 | $ (1,728) | 3,690 | (7,290) |
Foreign currency translation adjustment | 1,849 | 1,059 | 4,878 | (2,456) |
Benefit plan adjustments, net of tax | 474 | 682 | 2,682 | 2,104 |
Cash dividends | (172) | (109) | ||
Compensation expense and tax shortfall | 1,387 | 1,004 | ||
Shares (acquired) issued, net | (422) | (140) | ||
Balance | 135,610 | 110,166 | 135,610 | 110,166 |
Common Stock [Member] | ||||
Balance | 10,429 | 11,761 | ||
Net income (loss) | ||||
Foreign currency translation adjustment | ||||
Benefit plan adjustments, net of tax | ||||
Cash dividends | ||||
Compensation expense and tax shortfall | 1,387 | 1,004 | ||
Shares (acquired) issued, net | (914) | (2,725) | ||
Balance | 10,902 | 10,040 | 10,902 | 10,040 |
Retained Earnings [Member] | ||||
Balance | 169,368 | 175,662 | ||
Net income (loss) | 3,586 | (7,456) | ||
Foreign currency translation adjustment | ||||
Benefit plan adjustments, net of tax | ||||
Cash dividends | ||||
Compensation expense and tax shortfall | ||||
Shares (acquired) issued, net | ||||
Balance | 172,954 | 168,206 | 172,954 | 168,206 |
AOCI Attributable to Parent [Member] | ||||
Balance | (32,671) | (44,143) | ||
Net income (loss) | ||||
Foreign currency translation adjustment | 4,887 | (2,439) | ||
Benefit plan adjustments, net of tax | 2,682 | 2,104 | ||
Cash dividends | ||||
Compensation expense and tax shortfall | ||||
Shares (acquired) issued, net | ||||
Balance | (25,102) | (44,478) | (25,102) | (44,478) |
Treasury Stock [Member] | ||||
Balance | (24,205) | (26,790) | ||
Net income (loss) | ||||
Foreign currency translation adjustment | ||||
Benefit plan adjustments, net of tax | ||||
Cash dividends | ||||
Compensation expense and tax shortfall | ||||
Shares (acquired) issued, net | 492 | 2,585 | ||
Balance | (23,713) | (24,205) | (23,713) | (24,205) |
Noncontrolling Interest [Member] | ||||
Balance | 646 | 563 | ||
Net income (loss) | 104 | 166 | ||
Foreign currency translation adjustment | (9) | (17) | ||
Benefit plan adjustments, net of tax | ||||
Cash dividends | (172) | (109) | ||
Compensation expense and tax shortfall | ||||
Shares (acquired) issued, net | ||||
Balance | $ 569 | $ 603 | $ 569 | $ 603 |
Note K - Shareholders' Equity50
Note K - Shareholders' Equity - Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | |||||
Mar. 30, 2018 | Dec. 29, 2017 | Sep. 29, 2017 | Mar. 31, 2017 | Dec. 30, 2016 | Sep. 30, 2016 | |
Balance | $ 123,567 | $ 117,053 | ||||
Balance | $ 135,610 | $ 110,166 | ||||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||||
Balance | 9,166 | $ 8,677 | 6,130 | 1,577 | $ 5,785 | 5,158 |
Other comprehensive income before reclassifications | 1,851 | 489 | 2,547 | 1,142 | (4,208) | 627 |
Amounts reclassified from accumulated other comprehensive income | ||||||
Net current period other comprehensive (loss) income | 1,851 | 489 | 2,547 | 1,142 | (4,208) | 627 |
Balance | 11,017 | 9,166 | 8,677 | 2,719 | 1,577 | 5,785 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||||
Balance | (36,593) | (38,327) | (38,801) | (47,879) | (48,629) | (49,301) |
Other comprehensive income before reclassifications | 1,695 | |||||
Amounts reclassified from accumulated other comprehensive income | 474 | 39 | 474 | 682 | 750 | 672 |
Net current period other comprehensive (loss) income | 474 | 1,734 | 474 | 682 | 750 | 672 |
Balance | $ (36,119) | $ (36,593) | $ (38,327) | $ (47,197) | $ (47,879) | $ (48,629) |
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 | 9 Months Ended | |||
Mar. 30, 2018 | Mar. 31, 2017 | Mar. 30, 2018 | Mar. 31, 2017 | ||
Income tax expense (benefit) | $ 1,133 | $ (1,639) | $ 2,401 | $ (3,892) | |
Net income (loss) | 4,336 | (1,728) | 3,690 | (7,290) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||||
Actuarial losses | [1] | 676 | 1,071 | 2,121 | 3,271 |
Transition asset and prior service benefit | [1] | 10 | 9 | 30 | 29 |
Total amortization | 686 | 1,080 | 2,151 | 3,300 | |
Other benefit plan adjustments | (1,695) | ||||
Income tax expense (benefit) | 212 | 398 | 1,164 | 1,196 | |
Net income (loss) | $ 474 | $ 682 | $ 2,682 | $ 2,104 | |
[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 | 9 Months Ended | 34 Months Ended | ||
Mar. 30, 2018USD ($) | Mar. 31, 2017USD ($) | Mar. 30, 2018USD ($) | Mar. 31, 2017USD ($) | Mar. 30, 2018USD ($) | |
Restructuring Charges, Total | $ 452 | $ 293 | $ 2,501 | $ 1,367 | $ 8,376 |
Restructuring and Related Cost, Number of Positions Eliminated | 164 |
Note L - Restructuring of Ope53
Note L - Restructuring of Operations - Roll-forward of Restructuring Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 34 Months Ended | ||
Mar. 30, 2018 | Mar. 31, 2017 | Mar. 30, 2018 | Mar. 31, 2017 | Mar. 30, 2018 | |
Accrued restructuring liability | $ 92 | ||||
Additions during the year | $ 452 | $ 293 | 2,501 | $ 1,367 | $ 8,376 |
Payments and adjustments during the year | (2,578) | ||||
Accrued restructuring liability | $ 15 | $ 15 | $ 15 |
Note M - Earnings Per Share (De
Note M - Earnings Per Share (Details Textual) - shares | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2018 | Mar. 31, 2017 | Mar. 30, 2018 | Mar. 31, 2017 | |
Performance Shares [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 179,100 | 181,800 | 179,100 | 181,800 |
Restricted Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 237,700 | 269,600 | 237,700 | 269,600 |
Employee Stock Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 5,400 | 13,200 | 5,400 | 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 | 9 Months Ended | ||
Mar. 30, 2018 | Mar. 31, 2017 | Mar. 30, 2018 | Mar. 31, 2017 | |
Basic: | ||||
Net income (loss) | $ 4,336 | $ (1,728) | $ 3,690 | $ (7,290) |
Less: Net earnings attributable to noncontrolling interest | (28) | (121) | (104) | (166) |
Less: Undistributed earnings attributable to unvested shares | (98) | (86) | ||
Net income (loss) available to Twin Disc shareholders | $ 4,210 | $ (1,849) | $ 3,500 | $ (7,456) |
Weighted average shares outstanding - basic (in shares) | 11,313 | 11,250 | 11,289 | 11,236 |
Basic Income (Loss) Per Share: | ||||
Net income (loss) per share - basic (in dollars per share) | $ 0.37 | $ (0.16) | $ 0.31 | $ (0.66) |
Diluted: | ||||
Net income (loss) | $ 4,336 | $ (1,728) | $ 3,690 | $ (7,290) |
Less: Net earnings attributable to noncontrolling interest | (28) | (121) | (104) | (166) |
Less: Undistributed earnings attributable to unvested shares | (98) | (86) | ||
Net income (loss) available to Twin Disc shareholders | $ 4,210 | $ (1,849) | $ 3,500 | $ (7,456) |
Weighted average shares outstanding - basic (in shares) | 11,313 | 11,250 | 11,289 | 11,236 |
Effect of dilutive stock awards (in shares) | 31 | 31 | ||
Weighted average shares outstanding - diluted (in shares) | 11,344 | 11,250 | 11,320 | 11,236 |
Diluted Income (Loss) Per Share: | ||||
Net income (loss) per share - diluted (in dollars per share) | $ 0.37 | $ (0.16) | $ 0.31 | $ (0.66) |