Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Aug. 22, 2019 | Dec. 28, 2018 | |
Document Information [Line Items] | |||
Entity Registrant Name | TWIN DISC INC | ||
Entity Central Index Key | 0000100378 | ||
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 Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Common Stock, Shares Outstanding (in shares) | 13,332,485 | ||
Entity Public Float | $ 152,303,678 | ||
Entity Shell Company | false | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Title of 12(b) Security | Common Stock |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Current assets: | ||
Cash | $ 12,362,000 | $ 15,171,000 |
Accounts receivable, net | 44,013,000 | 45,422,000 |
Inventories | 125,893,000 | 84,001,000 |
Prepaid expenses | 11,681,000 | 8,423,000 |
Other | 8,420,000 | 6,252,000 |
Total current assets | 202,369,000 | 159,269,000 |
Property, plant and equipment, net | 71,258,000 | 55,467,000 |
Goodwill, net | 25,954,000 | 2,692,000 |
Deferred income taxes | 18,178,000 | 18,056,000 |
Intangible assets, net | 25,353,000 | 1,906,000 |
Other assets | 3,758,000 | 3,850,000 |
Total assets | 346,870,000 | 241,240,000 |
Current liabilities: | ||
Short-term borrowings and current maturities of long-term debt | 2,000,000 | |
Accounts payable | 31,468,000 | 29,368,000 |
Total accrued liabilities | 39,609,000 | 32,976,000 |
Total current liabilities | 73,077,000 | 62,344,000 |
Long-term debt | 40,491,000 | 4,824,000 |
Lease obligations | 14,683,000 | 6,527,000 |
Accrued retirement benefits | 25,878,000 | 21,068,000 |
Deferred income taxes | 7,429,000 | 1,203,000 |
Other long-term liabilities | 2,494,000 | 1,658,000 |
Total liabilities | 164,052,000 | 97,624,000 |
Commitments and contingencies (Note Q) | ||
Twin Disc shareholders' equity: | ||
Preferred shares authorized: 200,000; issued: none; no par value | 0 | 0 |
Common shares authorized: 30,000,000; issued: 14,632,802 and 13,099,468, respectively; no par value | 45,047,000 | 11,570,000 |
Retained earnings | 196,472,000 | 178,896,000 |
Accumulated other comprehensive loss | (37,971,000) | (23,792,000) |
Equity before treasury stock | 203,548,000 | 166,674,000 |
Less treasury stock, at cost (1,392,524 and 1,545,783 shares, respectively) | 21,332,000 | 23,677,000 |
Total Twin Disc shareholders' equity | 182,216,000 | 142,997,000 |
Noncontrolling interest | 602,000 | 619,000 |
Total equity | 182,818,000 | 143,616,000 |
Total liabilities and equity | $ 346,870,000 | $ 241,240,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares $ / shares in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
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) | 14,632,802 | 13,098,468 |
Common Shares, No Par Value (in dollars per share) | $ 0 | $ 0 |
Treasury Stock, Shares (in shares) | 1,392,524 | 1,545,783 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Net Sales | $ 302,663,000 | $ 240,733,000 |
Cost of goods sold | 213,022,000 | 160,092,000 |
Gross profit | 89,641,000 | 80,641,000 |
Marketing, engineering and administrative expenses | 71,541,000 | 61,095,000 |
Restructuring expenses | 1,179,000 | 3,398,000 |
Other operating income | (1,577,000) | |
Income from operations | 18,498,000 | 16,148,000 |
Other income (expense): | ||
Interest income | 43,000 | 55,000 |
Interest expense | (1,927,000) | (282,000) |
Other income (expense), net | (2,107,000) | (1,501,000) |
Non-operating income (expense) | 3,991,000 | 1,728,000 |
(Loss) earnings before income taxes and noncontrolling interest | 14,507,000 | 14,420,000 |
Income tax expense | 3,711,000 | 4,773,000 |
Net income | 10,796,000 | 9,647,000 |
Less: Net earnings attributable to noncontrolling interest, net of tax | (123,000) | (119,000) |
Net income attributable to Twin Disc | $ 10,673,000 | $ 9,528,000 |
Income per share data: | ||
Basic income per share attributable to Twin Disc common shareholders (in dollars per share) | $ 0.84 | $ 0.82 |
Diluted income per share attributable to Twin Disc common shareholders (in dollars per share) | $ 0.83 | $ 0.82 |
Weighted average shares outstanding data: | ||
Basic shares outstanding (in shares) | 12,571 | 11,295 |
Dilutive stock awards (in shares) | 111 | 100 |
Diluted shares outstanding (in shares) | 12,682 | 11,395 |
Comprehensive income: | ||
Net income | $ 10,796,000 | $ 9,647,000 |
Foreign currency translation adjustment | (2,671,000) | 981,000 |
Benefit plan adjustments, net of income taxes of ($1,242) and $3,207, respectively | (4,121,000) | 7,924,000 |
Unrealized loss on cash flow hedge, net of income taxes of $156 and $0 | (509,000) | 0 |
Comprehensive income | 3,495,000 | 18,552,000 |
Less: Comprehensive income attributable to noncontrolling interest | (98,000) | (145,000) |
Comprehensive income attributable to Twin Disc | $ 3,397,000 | $ 18,407,000 |
Consolidated Statements of Op_2
Consolidated Statements of Operations and Comprehensive Income (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Benefit plan adjustments, income taxes | $ (1,242) | $ 3,207 |
Unrealized loss on cash flow hedge, income taxes | $ 156 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 10,796 | $ 9,647 |
Adjustments to reconcile net income to net cash (used) provided by operating activities: | ||
Depreciation and amortization | 9,335 | 6,464 |
Amortization of inventory fair value step-up | 4,277 | |
Stock compensation expense | 2,591 | 2,062 |
Restructuring of operations | 238 | |
Gain on sale of Mill Log Business | (768) | |
Gain on contingent consideration of Veth Propulsion acquisition | (809) | |
Provision for deferred income taxes | 6,846 | 3,004 |
Other, net | 84 | (63) |
Changes in operating assets and liabilities | ||
Trade accounts receivable | 11,177 | (13,774) |
Inventories | (27,671) | (17,460) |
Other assets | (10,159) | 1,537 |
Accounts payable | (1,013) | 6,844 |
Accrued liabilities | (9,896) | 10,096 |
Accrued/prepaid retirement benefits | (251) | (2,084) |
Net cash (used) provided by operating activities | (5,461) | 6,511 |
Cash flows from investing activities, net of acquired business: | ||
Capital expenditures | (11,979) | (6,328) |
Acquisition of Veth Propulsion, less cash acquired | (60,195) | |
Proceeds from sale of plant assets | 239 | 152 |
Proceeds from sale of Mill Log business (see Note R) | 5,158 | |
Proceeds from life insurance policy | 101 | |
Other, net | (233) | (128) |
Net cash used by investing activities | (66,909) | (6,304) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock, net | 32,210 | |
Borrowings under long-term debt agreement | 44,480 | |
Borrowings under revolving loan agreement | 147,854 | 80,642 |
Repayments under revolving loan agreement | (129,548) | (82,143) |
Repayments of long-term borrowings | (24,752) | |
Payments of withholding taxes on stock compensation | (1,005) | (422) |
Dividends paid to noncontrolling interest | (115) | (172) |
Proceeds from exercise of stock options | 36 | 29 |
Net cash provided (used) by financing activities | 69,160 | (2,066) |
Effect of exchange rate changes on cash | 401 | 663 |
Net change in cash | (2,809) | (1,196) |
Cash: | ||
Beginning of year | 15,171 | 16,367 |
End of year | 12,362 | 15,171 |
Supplemental cash flow information: | ||
Interest | 1,906 | 304 |
Income taxes | $ 1,927 | $ (7) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) | Common Stock [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] | Total |
Balance at Jun. 30, 2017 | $ 10,429,000 | $ 169,368,000 | $ (32,671,000) | $ (24,205,000) | $ 646,000 | $ 123,567,000 |
Net income | 9,528,000 | 119,000 | 9,647,000 | |||
Translation adjustments | 955,000 | 26,000 | 981,000 | |||
Benefit plan adjustments, net of tax | 7,924,000 | 7,924,000 | ||||
Cash dividends | (172,000) | (172,000) | ||||
Compensation expense | 2,062,000 | 2,062,000 | ||||
Shares (acquired) issued, net | (921,000) | 528,000 | (393,000) | |||
Unrealized loss on cash flow hedge, net of tax | 0 | |||||
Balance at Jun. 30, 2018 | 11,570,000 | 178,896,000 | (23,792,000) | (23,677,000) | 619,000 | 143,616,000 |
Net income | 10,673,000 | 123,000 | 10,796,000 | |||
Translation adjustments | (2,646,000) | (25,000) | (2,671,000) | |||
Benefit plan adjustments, net of tax | (4,121,000) | (4,121,000) | ||||
Cash dividends | (115,000) | (115,000) | ||||
Compensation expense | 2,591,000 | 2,591,000 | ||||
Shares (acquired) issued, net | 30,886,000 | 2,345,000 | 33,231,000 | |||
Unrealized loss on cash flow hedge, net of tax | (509,000) | (509,000) | ||||
Release stranded tax effects | 6,903,000 | (6,903,000) | ||||
Balance at Jun. 30, 2019 | $ 45,047,000 | $ 196,472,000 | $ (37,971,000) | $ (21,332,000) | $ 602,000 | $ 182,818,000 |
Note A - Basis of Presentation
Note A - Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | A. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The consolidated financial statements and information included in this Annual Report on Form 10 10 July 2, 2018 June 30, 2019. 10 Significant Accounting Policies The following is a summary of the significant accounting policies followed in the preparation of these financial statements: Consolidation Principles May 31, March 31. Management Estimates-- Translation of Foreign Currencies $681 $198 2019 2018, Cash three not Accounts Receivable $1,582 $1,478 June 30, 2019 2018, may may Fair Value of Financial Instruments . 1 2 June 30, 2019. June 30, 2019. 2 Derivative Financial Instruments - Inventories first first first Property, Plant and Equipment and Depreciation 10 40 5 15 not Impairment of Long-lived Assets may not may third Goodwill and Other Intangibles fourth may not A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may Goodwill impairment charges are recorded using a simplified one In fiscal 2018 2019, first fourth not The Company conducted interim qualitative assessments throughout the year, and its annual assessment for goodwill impairment as of March 30, 2019 June 30, 2018 The fair value of the Company’s other intangible assets with indefinite lives, primarily tradenames, is estimated using the relief-from-royalty method, which requires assumptions related to projected revenues; assumed royalty rates that could be payable if the Company did not June 30, 2019 no Changes in circumstances, existing at the measurement date or at other times in the future, or in the numerous estimates associated with management’s judgments, assumptions and estimates made in assessing the fair value of goodwill and other indefinite-lived intangibles, could result in an impairment charge in the future. The Company will continue to monitor all significant estimates and impairment indicators, and will perform interim impairment reviews as necessary. Any cost incurred to extend or renew the term of an indefinite lived intangible asset are expensed as incurred. Income Taxes not not not Revenue Recognition five 1 2 3 4 5 not not no Goods sold to third Shipping and Handling Fees and Costs Recently Adopted Accounting Standards a. In May 2014, the Financial Accounting Standards Board (“FASB”) issued updated guidance (ASU 2014 - 09 ) on revenue from contracts with customers. This revenue recognition guidance supersedes existing guidance, including industry-specific guidance. The core principle is that an entity should recognize revenue to depict the transfer of control over promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance identifies steps to apply in achieving this principle. The Company adopted this guidance effective July 1, 2018, using the modified retrospective method. Prior periods presented were not retrospectively adjusted for this change. The Company has applied the new revenue recognition standard only to contracts that were not completed as of July 1, 2018. The Company determined that deferral of revenue is appropriate for certain agreements where the performance of services after product delivery is required. Such services primarily pertain to technical commissioning services by its entities in its marine and propulsion business, whereby the Company’s technicians calibrate the controls and transmission to ensure proper performance for the customer’s specific application. This service helps identify issues with the ship's design or performance that need to be remediated by the ship builder or other component suppliers prior to the ship being officially accepted into service by the ship buyer. The cumulative effect adjustment of adopting the new standard is not significant to the Company’s results of operations and financial condition. b. In February 2016, the FASB issued guidance (ASU 2016 - 02 ) which replaces the existing guidance for leases. The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. The Company elected to early adopt the standard effective July 1, 2018 concurrent with the adoption of ASU 2014 - 09, Revenue from Contracts with Customers, using the modified retrospective approach at the beginning of the earliest comparative period presented in the financial statements, which required the Company to restate each prior reporting period presented. For operating leases in which the Company is a lessee, the Company concluded that all existing operating leases under the old guidance continue to be classified as operating leases under the new guidance, and all existing capital leases under the old guidance are classified as finance leases under the new guidance. The Company excluded any lease contracts with terms of twelve months or less as of the adoption date. The Company has lease agreements with lease and non-lease components, which are generally accounted for as separate lease components. The Company accounts for short-term leases on a straight-line basis over the lease term. The following table presents the effect of the adoption of ASU 2016 - 02 on the Company’s condensed consolidated balance sheet as of June 30, 2018: June 30, 2018 Adoption June 30, 2018 As Reported Impact Restated Property, plant and equipment, net $ 48,940 $ 6,527 $ 55,467 Lease obligations - 6,527 6,527 The adoption of ASU 2014 - 09 and ASU 2016 - 02 did not have an impact on the Company’s consolidated statement of operations and comprehensive income or consolidated statement of cash flows for the year ended June 30, 2018. c. In March 2017, the FASB issued guidance (ASU 2017 - 07 ) intended to improve the presentation of net periodic pension cost and net periodic postretirement cost. This guidance requires that an employer report the service cost component in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the statement of operations separately from the service cost component and outside the subtotal of income from operations. The Company adopted this guidance effective July 1, 2018 on a retrospective basis, which resulted in the reclassification of certain amounts from cost of goods sold and marketing, engineering and administrative expenses to other income (expense), net in the condensed consolidated statements of operations and comprehensive income. As a result, prior period amounts impacted have been revised accordingly. There was no impact to net income. The following table presents the effect of the adoption of ASU 2017 - 07 on the Company’s condensed consolidated statements of operations and comprehensive income for the year ended June 30, 2018: For the Year Ended June 30, 2018 Adoption June 30, 2018 As Reported Impact Restated Cost of goods sold $ 160,497 $ (405 ) $ 160,092 Gross profit 80,236 405 80,641 Marketing, engineering and administrative expenses 61,909 (814 ) 61,095 Income from operations 14,929 1,219 16,148 Other income (expense), net (282 ) (1,219 ) (1,501 ) d. In February 2018, the FASB issued guidance (ASU 2018 - 02 ) intended to eliminate the stranded tax effects resulting from the Tax Cuts and Jobs Act by allowing a reclassification from accumulated other comprehensive income to retained earnings. The Company elected to early adopt this guidance effective July 1, 2018 by making a reclassification of $6,903 from accumulated other comprehensive loss to retained earnings. e. In October 2016, the FASB issued updated guidance (ASU 2016 - 16 ) that changes the recognition of income tax consequences of an intra-entity transfer of an asset other than inventory. The Company adopted this guidance effective July 1, 2018. The adoption of this guidance did not have a material impact on the Company’s financial statements and disclosures. f. In August 2016, the FASB issued updated guidance (ASU 2016 - 15 ) that addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The Company adopted this guidance effective July 1, 2018. The adoption of this guidance did not have a material impact on the Company’s financial statements and disclosures. g. In August 2017, the FASB issued ASU 2017 - 12, Derivatives and Hedging (ASC 815 ) - Targeted Improvements to Accounting for Hedging Activities. The amendments in this guidance better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The Company elected to early adopt this standard during the fourth quarter of fiscal 2019. The adoption of this guidance did not have a material impact on the Company’s financial statements and disclosures. h. In August 2018, the SEC issued Release No. 33 - 10532, Disclosure Update and Simplification. In addition to eliminating certain disclosure requirements, this release also amends the interim financial statement requirements to require provision of the information required by Regulation S- X Rule 3 - 04 for the current and comparative year-to-date periods, with subtotals for each interim period. Rule 3 - 04 requires a reconciliation of stockholders’ equity beginning and ending balances for each period for which a statement of comprehensive income is required to be filed. The Company adopted this guidance during the Company’s second quarter of fiscal year 2019. The adoption of this guidance did not have a material impact on the Company’s disclosures. New Accounting Releases a. In June 2018, the FASB issued guidance (ASU 2018 - 07 ) intended to simplify the accounting for share based payments granted to nonemployees. Under the amendments in this guidance, payments to nonemployees would be aligned with the requirements for share based payments granted to employees. The amendments in this guidance are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, ( the Company’s fiscal 2020 ), including interim periods within that fiscal year. The Company is currently evaluating the potential impact of this guidance on the Company’s financial statements and disclosures. b. In August 2018, the FASB issued updated guidance (ASU 2018 - 13 ) as part of the disclosure framework project, which focuses on improving the effectiveness of disclosures in the notes to the financial statements. The amendments in this update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. The amendments in this guidance are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 ( the Company’s fiscal 2021 ), with early adoption permitted. The Company is currently evaluating the potential impact of this guidance on the Company’s disclosures. c. In August 2018, the FASB issued updated guidance (ASU 2018 - 14 ) intended to modify the disclosure requirements for employers that sponsor defined pension or postretirement plans. The amendments in this guidance are effective for fiscal years ending after December 15, 2020 ( the Company’s fiscal 2021 ), with early adoption permitted. The Company is currently evaluating the potential impact of this guidance on the Company’s disclosures. Special Note Regarding Smaller Reporting Company Status In June 2018, 33 10513; 34 83550, 12b 2 1934, 1 $250 2 $100 $700 no September 10, 2018, first 2019. second 2019. may may |
Note B - Acquisition of Veth Pr
Note B - Acquisition of Veth Propulsion Holding BV | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | B. A CQUISITION OF V ETH P ROPULSION HOLDING B . V . On July 2, 2018, 100% June 13, 2018. Under the terms of the Purchase Agreement, the Company paid an aggregate of approximately $59,407 $1,991 May 13, 2019, 139,347 $2,921 $3,300. The total consideration transferred at acquisition date was: Cash, paid at closing and after agreed-upon working capital adjustments $ 59,407 Fair value of contingent consideration at acquisition date 2,921 Total $ 62,328 Fair value of assets acquired and liabilities assumed at acquisition date: Fair Value of Assets Acquired Cash, including restricted cash $ 1,078 Accounts receivable and other current assets 10,437 Inventories 26,862 Property, plant and equipment 2,661 Intangibles (a) 26,500 Accounts payable and accrued liabilities (21,208 ) Deferred tax liability (8,001 ) Total net assets acquired 38,329 Goodwill (b) 23,999 Total consideration $ 62,328 (a) Intangibles consist of customer relationships, technology and know-how and tradenames, with estimated useful lives 12 7 10 9 (b) The Company is not The Company financed the payment of the cash consideration through borrowings under a new credit agreement entered into on June 29, 2018 Summary Pro Forma Financial Information The following table presents financial information for Veth Propulsion that is included in the Company’s consolidated statement of operations for the year ended June 30, 2019: Year Ended June 30, 2019 Net sales $ 54,909 Gross profit (a) 10,085 Operating loss (b) (1,281 ) Net loss attributable to Twin Disc (1,849 ) (a) Gross profit includes the non-recurring purchase accounting charge for the step-up of inventories acquired of $4,277 (b) In addition to (a), operating loss includes the depreciation of property, plant and equipment and amortization of intangible assets acquired of $2,636 one $461 The following table presents unaudited supplemental pro forma information as if the acquisition of Veth Propulsion had occurred on July 1, 2017. Year Ended Year Ended June 30, 2019 June 30, 2018 Net sales $ 302,663 $ 296,556 Gross profit (a) 93,918 92,158 Net income attributable to Twin Disc (b) 14,227 5,277 Basic income per share attributable to Twin Disc common shareholders $ 1.13 $ 0.47 Diluted income per share attributable to Twin Disc common shareholders $ 1.12 $ 0.46 Weighted average number of common shares outstanding: Basic 12,571 11,295 Diluted 12,682 11,395 (a) Gross profit includes the amortization of the step-up of inventories of $4,715 June 30, 2018. June 30, 2019, $4,277 (b) In addition to (a), this includes the amortization of intangible assets acquired and interest expense on borrowings under the Credit Agreement net of other expenses, amounting to $4,542 June 30, 2018, $1,768 one June 30, 2019, one $461. |
Note C - Revenue Recognition
Note C - Revenue Recognition | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | C. REVENUE R ECOGNITION The Company designs, manufactures and sells marine and heavy duty off highway power transmission equipment. Products offered include: marine transmissions, azimuth drives, 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 its products to customers primarily in the commercial, pleasure craft, and military marine markets as well as in the energy and natural resources, government and industrial markets. The Company's worldwide sales to both domestic and foreign customers are transacted through a direct sales force and a distributor network. Identify contract with customer: The Company’s customers consist of distributors and direct end-users. With regard to distributors, the Company generally has written distribution agreements which describe the terms of the distribution arrangement, such as the product range, the sales territory, product pricing, sales support, payment and returns policy, etc. Customer contracts are generally in the form of acknowledged purchase orders. Services to be rendered, as part of the delivery of those products, are also generally specified. Such services include installation reviews and technical commissioning. Performance obligations: The Company’s performance obligations primarily consist of product delivery and certain service obligations such as technical commissioning, repair services, installation reviews, and shift development. Transaction price: The Company considers the invoice price as the transaction price. Allocation of transaction price: The Company determined that the most relevant allocation method for its service obligations is to apply the expected cost plus appropriate margin. This is the Company’s practice of billing for repairs, overhaul, and other product service related time incurred by its technicians. Recognize revenue: Revenue is recognized as each performance obligation is satisfied which is typically at a point in time. For technical commissioning, repairs, installation review, and shift development services, revenue is recognized upon completion of the service. Disaggregated revenue: The following table presents details deemed most relevant to the users of the financial statements for the year ended June 30, 2019. Net sales by product group for year ended June 30, 2019 Elimination of Manufacturing Distribution Intercompany Sales Total Industrial $ 30,393 $ 8,079 $ (4,430 ) $ 34,042 Land-based transmissions 111,260 30,483 (28,950 ) 112,793 Marine and propulsion systems 138,704 62,329 (50,796 ) 150,237 Other 71 5,590 (70 ) 5,591 Total $ 280,428 $ 106,481 $ (84,246 ) $ 302,663 Contract assets/liabilities: There are no June 30, 2019. |
Note D - Inventories
Note D - Inventories | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | D . INVENTORIES The major classes of inventories at June 30 2019 2018 Finished parts $ 57,682 $ 49,332 Work in process 23,812 13,183 Raw materials 44,399 21,486 $ 125,893 84,001 Inventories stated on a LIFO basis represent approximately 52% 48% June 30, 2019 2018, $25,709 $24,630 June 30, 2019 2018, $10,463 $8,427 June 30, 2019 2018, |
Note E - Property, Plant and Eq
Note E - Property, Plant and Equipment | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | E . PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment at June 30 2019 2018 Land $ 6,479 $ 6,525 Buildings 47,627 46,473 Machinery and equipment 158,183 144,457 212,289 197,455 Less: accumulated depreciation (141,031 ) (141,988 ) $ 71,258 $ 55,467 Depreciation expense for the years ended June 30, 2019 2018 $6,682 $6,315, |
Note F - Goodwill and Other Int
Note F - Goodwill and Other Intangibles | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | F . GOODWILL AND OTHER INTANGIBLES Goodwill The Company reviews goodwill for impairment on a reporting unit basis annually as of the first fourth may not In fiscal 2018 2019, first fourth 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 may may On July 2, 2018, $23,999 $26,500 June 30, 2019, June 30, 2019. During the 2019 no March 30, 2019, first fourth 13.0% 14.0% not June 30, 2019, $23,371 $2,583 118% 41% no The changes in the carrying amount of goodwill are summarized as follows: Net Book Value Rollforward Net Book Value By Reporting Unit Gross Carrying Amount Accumulated Impairment Net Book Value European Industrial European Propulsion Balance at June 30, 2017 $ 16,407 $ (13,822 ) $ 2,585 $ 2,585 $ - Translation adjustment 107 - 107 107 - Balance at June 30, 2018 16,514 (13,822 ) 2,692 2,692 - Acquisition 23,999 - 23,999 - 23,999 Translation adjustment (737 ) - (737 ) (109 ) (628 ) Balance at June 30, 2019 $ 39,776 $ (13,822 ) $ 25,954 $ 2,583 $ 23,371 Other Intangibles At June 30, Net Book Value Rollforward Net Book Value By Asset Type Gross Carrying Amount Accumulated Amortization / Impairment Net Book Value Customer Relationships Technology Know-how Trade Name Other Balance at June 30, 2017 $ 13,436 $ (11,632 ) $ 1,804 $ - $ - $ 1,319 $ 485 Addition 19 - 19 - - - 19 Amortization - (149 ) (149 ) - - (84 ) (65 ) Translation adjustment 30 - 30 - - 53 (23 ) Balance at June 30, 2018 13,485 (11,781 ) 1,704 - - 1,288 416 Addition 236 - 236 - - - 236 Acquistion 26,500 - 26,500 16,300 8,400 1,800 - Amortization - (2,653 ) (2,653 ) (1,123 ) (1,172 ) (261 ) (97 ) Translation adjustment (634 ) - (634 ) (334 ) (203 ) (94 ) (3 ) Balance at June 30, 2019 $ 39,587 $ (14,434 ) $ 25,153 $ 14,843 $ 7,025 $ 2,733 $ 552 Other intangibles consist of certain proprietary technology, computer software, patents and licensing agreements. The weighted average remaining useful life of the intangible assets included in the table above is approximately 9 Intangible amortization expense for the years ended June 30, 2019 2018 $2,653 $149, five Fiscal Year 2020 $ 2,904 2021 2,890 2022 2,874 2023 2,888 2024 2,789 Thereafter 10,808 The gross carrying amount of the Company’s intangible assets that have indefinite lives and are not June 30, 2019 2018 $200 $202, |
Note G - Accrued Liabilities
Note G - Accrued Liabilities | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | G . ACCRUED LIABILITIES Accrued liabilities at June 30 2019 2018 Customer deposits $ 14,924 $ 5,426 Salaries and wages 6,982 10,311 Warranty 3,034 3,952 Accrued professional fees 1,843 3,501 Other 12,826 9,786 $ 39,609 $ 32,976 |
Note H - Warranty
Note H - Warranty | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Product Warranty Disclosure [Text Block] | H . WARRANTY The Company warrants all assembled products, parts (except component products or parts on which written warranties are issued by the respective manufacturers thereof and are furnished to the original customer, as to which the Company makes no no 12 24 June 30: 2019 2018 Reserve balance, July 1 $ 4,407 $ 2,062 Current period expense and adjustments 2,766 4,998 Payments or credits to customers (3,953 ) (2,671 ) Acquisition 557 - Translation adjustment (41 ) 18 Reserve balance, June 30 $ 3,736 $ 4,407 The current portion of the warranty accrual ( $3,034 $3,952 2019 2018, $702 $455 2019 2018, |
Note I - Debt
Note I - Debt | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | I . DEBT Long-term Debt On June 29, 2018, “2016 not $35,000 may, not $50,000 On July 2, 2018, $60,729 $35,000 $25,729. $58,862, $1,865. On September 25, 2018, $32,210 On March 4, 2019, second $35,000 $20,000. $20,000 $35,000 Prior to entering into the Second Amendment, the outstanding principal amount of the Term Loan under the Credit Agreement was $10,849. $9,151. January 2, 2020 March 4, 2026, $500 June 30, 2019. The Second Amendment also reduces the applicable margin for purposes of determining the interest rate applicable to the Term Loan. Previously, the applicable margin was 3.00%, 1.375% 2.375%, The Second Amendment also adjusts certain financial covenants made by the Company under the Credit Agreement. Specifically, the Company has covenanted (i) not 3.00 1.00 3.50 1.00 September 30, 2019 3.25 1.00 December 31, 2019 September 30, 2020), not $100,000 50% June 30, 2019 $100,000 $70,000 Borrowings under the Credit Agreement are secured by substantially all of the Company’s personal property, including accounts receivable, inventory, machinery and equipment, and intellectual property. The Company has also pledged 100% 65% Upon the occurrence of an event of default, BMO may 1 2 3 105% may three In addition to the monthly interest payments and any mandatory principal payments required by the Credit Agreement (if applicable), the Company is responsible for paying a quarterly Revolving Credit Commitment Fee and quarterly Letter of Credit Fees. The Revolving Credit Commitment Fee is paid at an annual rate equal to the Applicable Margin on the average daily unused portion of the Revolving Credit Commitment. The Letter of Credit Fee is paid at the Applicable Margin for Revolving Loans that are Eurodollar Loans on the daily average face amount of Letters of Credit outstanding during the preceding calendar quarter. The Company may one Long-term debt consisted of the following at June 30: 2019 2018 Revolving loan agreement $ 22,666 $ 4,787 Term loan (due March 2026) 19,500 - Other 325 37 Subtotal 42,491 4,824 Less: current maturities (2,000 ) - Total long-term debt $ 40,491 $ 4,824 Other long-term debt pertains mainly to a financing arrangement in Europe. During fiscal 2019, $329 3 5 842, 7% 25%. $28 During fiscal year 2019, 4.71% 2.99% As of June 30, 2019, $47,324 $24,658 The Company’s borrowings described above approximates fair value at June 30, 2019 June 30, 2018. 2 On April 22, 2019, $20,000 March 4, 2026 815, The aggregate scheduled maturities of outstanding long-term debt obligations in subsequent years are as follows: Fiscal Year 2020 $ 2,000 2021 2,161 2022 2,081 2023 24,709 2024 2,016 Thereafter 9,524 $ 42,491 Other lines of credit : The Company has established unsecured lines of credit, which may $952 5.0% June 30, 2019, $1,477 5.0% June 30, 2018. |
Note J - Lease Obligations
Note J - Lease Obligations | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Leases of Lessee Disclosure [Text Block] | J . LEASE OBLIGATIONS In accordance with ASC 842, twelve The Company had $14,138 $6,527 June 30, 2019 June 30, 2018, $14,130 $6,527 June 30, 2019 June 30, 2018, The Company had $545 $11 June 30, 2019 June 30, 2018, $553 $0 June 30, 2019 June 30, 2018, Approximate future minimum rental commitments under non-cancellable leases as of June 30, 2019 Operating Leases Finance Leases 2020 $ 3,186 $ 136 2021 2,489 136 2022 1,950 136 2023 1,722 132 2024 1,532 112 Thereafter 11,112 - Total future lease payments 21,991 652 Less: Amount representing interest (7,861 ) (99 ) Present value of future payments $ 14,130 $ 553 The components of lease expense were as follows: For the Year Ended June 30, 2019 June 30, 2018 Finance lease cost: Amortization of right-of-use assets $ 27 $ 3 Interest on lease liabilities 8 1 Operating lease cost 3,348 2,462 Short-term lease cost 40 39 Variable lease cost 37 8 Total lease cost 3,460 2,513 Less: Sublease income (222 ) (204 ) Net lease cost $ 3,238 $ 2,309 Other information related to leases was as follows: For the Year Ended June 30, 2019 June 30, 2018 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,338 $ 2,417 Operating cash flows from finance leases 18 3 Financing cash flows from finance leases 9 1 Right-of-use-assets obtained in exchange for lease obligations: Operating leases 13,875 4,019 Finance leases 553 - Weighted average remaining lease term (years): Operating leases 11.1 5.6 Finance lease 4.8 4.0 Weighted average discount rate: Operating leases 7.7 % 7.2 % Finance leases 7.3 % 3.9 % |
Note K - Shareholders' Equity
Note K - Shareholders' Equity | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | K . SHAREHOLDERS' EQUITY The Company completed the sale of 1,533,334 September 25, 2018, $22.50 $2,070 $220, $32,210 June 30, 2019. The total number of shares of common stock outstanding at June 30, 2019 2018 13,240,278 11,553,685, June 30, 2019 2018, 1,392,524 1,545,783 157,043 67,286 2019 2018, 3,784 32,734 2019 2018, Under an authorization given by the Board of Directors on July 27, 2012, not two June 30, 2019 2018, 315,000 Cash dividends per share were $0.00 2019 2018. The Company is authorized to issue 200,000 none 150,000 The components of accumulated other comprehensive loss included in equity as of June 30, 2019 2018 2019 2018 Translation adjustments $ 4,439 $ 7,085 Net loss on cash flow hedge derivatives, net of income taxes of $156 and $0, respectively (509 ) - Benefit plan adjustments, net of income taxes of $12,707 and $11,494 respectively (41,901 ) (30,877 ) Accumulated other comprehensive loss $ (37,971 ) $ (23,792 ) A reconciliation for the changes in accumulated other comprehensive income (loss), net of tax, by component for the years ended June 30, 2018 June 30, 2019 Translation Benefit Plan Adjustment Adjustment Balance at June 30, 2017 $ 6,130 $ (38,801 ) Other comprehensive income before reclassifications 955 5,824 Amounts reclassified from accumulated other comprehensive income - 2,100 Net current period other comprehensive income 955 7,924 Balance at June 30, 2018 $ 7,085 $ (30,877 ) Translation Benefit Plan Cash Flow Adjustment Adjustment Hedges Balance at June 30, 2018 $ 7,085 $ (30,877 ) $ - Other comprehensive loss before reclassifications (2,646 ) (6,068 ) (509 ) Release stranded tax effects - (6,903 ) - Amounts reclassified from accumulated other comprehensive income - 1,947 - Net current period other comprehensive income (2,646 ) (11,024 ) (509 ) Balance at June 30, 2019 $ 4,439 $ (41,901 ) $ (509 ) A reconciliation for the reclassifications out of accumulated other comprehensive income (loss), net of tax for the year ended June 30, 2018 Amount Reclassified Amortization of benefit plan items Actuarial losses $ (3,053 ) Transition asset and prior service benefit 103 Total before tax benefit (2,950 ) Tax benefit 850 Total reclassification net of tax $ (2,100 ) A reconciliation for the reclassifications out of accumulated other comprehensive income (loss), net of tax for the year ended June 30, 2019 Amount Reclassified Amortization of benefit plan items Actuarial losses $ (2,710 ) Transition asset and prior service benefit 176 Total before tax benefit (2,534 ) Tax benefit 587 Total reclassification net of tax $ (1,947 ) |
Note L - Business Segments and
Note L - Business Segments and Foreign Operations | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | L . BUSINESS SEGMENTS AND FOREIGN OPERATIONS 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, azimuth drives, 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, energy and natural resources, government, and industrial markets. Net sales by product group is summarized as follows: 2019 2018 Industrial $ 34,042 $ 30,888 Land-based transmissions 112,793 107,169 Marine and propulsion systems 150,237 96,785 Other 5,591 5,891 Total $ 302,663 $ 240,733 Industrial products include clutches, power take-offs and pump drives sold to the agriculture, recycling, construction and oil and gas markets. The land based transmission products include applications for oilfield and natural gas, military and airport rescue and fire fighting. The marine and propulsion systems include marine transmission, azimuth drives, controls, surface drives, propellers and boat management systems for the global commercial marine, pleasure craft and patrol boat markets. Other includes non-Twin Disc manufactured product sold through Company-owned distribution entities. The Company has two Information about the Company's segments is summarized as follows: 2019 Manufacturing Distribution Total Net Sales $ 280,428 $ 106,481 $ 386,909 Intra-segment sales 20,384 14,026 34,410 Inter-segment sales 46,078 3,758 49,836 Interest income 1,154 26 1,180 Interest expense 3,086 (37 ) 3,049 Income taxes 7,939 353 8,292 Depreciation and amortization 12,893 402 13,295 Net income attributable to Twin Disc 25,062 248 25,310 Assets 384,612 46,076 430,688 Expenditures for segment assets 10,725 663 11,388 2018 Manufacturing Distribution Total Net Sales $ 216,383 $ 84,688 $ 301,071 Intra-segment sales 22,912 8,743 31,655 Inter-segment sales 26,074 2,609 28,683 Interest income 16 18 34 Interest expense 275 - 275 Income taxes 15,782 588 16,370 Depreciation and amortization 5,632 452 6,084 Net income attributable to Twin Disc 22,799 1,067 23,866 Assets 266,417 52,230 318,647 Expenditures for segment assets 5,482 248 5,730 The following is a reconciliation of reportable segment net sales and net income to the Company’s consolidated totals: 2019 2018 Net sales: Total net sales from reportable segments $ 386,909 $ 301,071 Elimination of inter-company sales (84,246 ) (60,338 ) Total consolidated net sales $ 302,663 $ 240,733 Net income attributable to Twin Disc: Total net income from reportable segments $ 25,310 $ 23,866 Other adjustments and corporate expenses (14,637 ) (14,338 ) Total consolidated net income attributable to Twin Disc $ 10,673 $ 9,528 Corporate expenses pertain to certain costs that are not Other significant items: Segment Consolidated Totals Adjustments Totals 2019 Interest income $ 1,180 $ (1,137 ) $ 43 Interest expense 3,049 (1,122 ) 1,927 Income taxes 8,292 (4,581 ) 3,711 Depreciation and amortization 13,295 317 13,612 Assets 430,688 (83,818 ) 346,870 Expenditures for segment assets 11,388 591 11,979 2018 Interest income $ 34 $ 21 $ 55 Interest expense 275 7 282 Income taxes 16,370 (11,597 ) 4,773 Depreciation and amortization 6,084 380 6,464 Assets 318,647 (77,407 ) 241,240 Expenditures for segment assets 5,730 598 6,328 All adjustments represent inter-company eliminations and corporate amounts. Geographic information about the Company is summarized as follows: 2019 2018 Net sales United States $ 132,467 $ 141,705 Netherlands 31,521 4,755 China 28,772 11,664 Italy 12,755 12,551 Australia 12,463 12,479 Canada 10,464 13,397 Other countries 74,221 44,182 Total $ 302,663 $ 240,733 Net sales by geographic region are based on product shipment destination. Long-lived assets primarily pertain to property, plant and equipment and exclude goodwill and other intangibles. They are summarized as follows: 2019 2018 Long-lived assets United States $ 41,233 $ 37,765 Netherlands 13,186 - Belgium 8,595 7,576 Switzerland 6,810 6,841 Italy 1,894 2,230 Other countries 3,298 4,905 Total $ 75,016 $ 59,317 There were no 10% 2019. one 10% 2018. |
Note M - Stock-based Compensati
Note M - Stock-based Compensation | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | M . STOCK -BASED COMPENSATION In fiscal 2019, 2018 “2018 2018 may one 850,000 may In fiscal 2011, 2010 “2010 250,000 2010 “2010 may 650,000 Shares available for future awards as of June 30 2019 2018 2018 LTI Plan 742,325 - 2010 Directors' Plan 61,354 80,938 Performance Stock Awards (“PSA”) In fiscal 2019 2018, 50,004 54,854 The PSAs granted in fiscal 2019 three June 30, 2021. 75,006. The PSAs granted in fiscal 2018 three June 30, 2020. 69,180. There were 96,124 145,718 June 30, 2019 2018, June 30, 2019 2018, $1,196 $574, June 30, 2019 2018, $278 $172, June 30, 2019 $20.38. June 30, 2019, $1,073 2019 2018 2019 $1,228. 2018 $272. Restricted Stock Awards (“RS”) The Company has unvested RS outstanding that will vest if certain service conditions are fulfilled. The fair value of the RS grants is recorded as compensation over the vesting period, which is generally 1 3 2019 2018, 43,305 85,327 3,784 32,734 2019 2018, 172,637 237,657 June 30, 2019 2018, $1,096 $1,488 June 30, 2019 2018, June 30, 2019 2018, $255 $446, 2019 2018 $2,391 $1,809, June 30, 2019, $757 three Restricted Stock Unit Awards (“RS U ”) Under the 2018 three 2019, 37,950 37,950 June 30, 2019. $299 June 30, 2019. June 30, 2019, $69. June 30, 2019 $25.77. June 30, 2019, $679 three Stock Options The 2010 may ten 2010 may 2010 10% not 110% five no 10% no 2010 2010 June 30, 2019 2018. 2004 The Company has 3,600 June 30, 2019 2004 2004 2004 2011, Stock option transactions under the 2004 2019 Weighted Average Weighted Remaining Aggregate Average Contractual Intrinsic 2019 Price Life (years) Value Non-qualified stock options: Options outstanding at beginning of year 7,200 $ 12.31 Granted - - Canceled/expired - - Exercised (3,600 ) 10.01 Options outstanding at June 30 3,600 $ 14.61 1.00 $ 1.8 The Company historically computes its windfall tax pool using the shortcut method. ASC 718, 100% During fiscal 2019 2018 no no 2019 2018, The total intrinsic value of options exercised during the years ended June 30, 2019 2018 $47 $38, |
Note N - Engineering and Develo
Note N - Engineering and Development Costs | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Research, Development, and Computer Software Disclosure [Text Block] | N . ENGINEERING AND DEVELOPMENT COSTS Engineering and development costs include research and development expenses for new products, development and major improvements to existing products, and other costs for ongoing efforts to refine existing products. Research and development costs charged to operations totaled $2,385 $1,610 2019 2018, $12,594 $9,932 2019 2018, |
Note O - Pension and Other Post
Note O - Pension and Other Postretirement Benefit Plans | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | O . P ENSION AND OTHER POSTRETIREMENT BENEFIT PLANS The Company has non-contributory, qualified defined benefit pension plans covering substantially all domestic employees hired prior to October 1, 2003, January 1, 1997, January 1, 1997 July 31, 2009, In addition, the Company has unfunded, non-qualified retirement plans for certain management employees and Directors. In the case of management employees, benefits are based on an annual credit to a bookkeeping account, intended to restore the benefits that would have been earned under the qualified plans, but for the earnings limitations under the Internal Revenue Code. In the case of Directors, benefits are based on years of service on the Board. All benefits vest upon retirement from the Company. In addition to providing pension benefits, the Company provides other postretirement benefits, including healthcare and life insurance benefits for certain domestic retirees. All employees retiring after December 31, 1992, 100% The measurement date for the Company’s pension and postretirement benefit plans in fiscal 2019 2018 June 30. Obligations and Funded Status The following table sets forth the Company's defined benefit pension plans’ and other postretirement benefit plans’ funded status and the amounts recognized in the Company's balance sheets and statement of operations and comprehensive income as of June 30: Pension Other Postretirement Benefits Benefits 2019 2018 2019 2018 Change in benefit obligation: Benefit obligation, beginning of year $ 105,012 $ 118,170 $ 8,077 $ 11,574 Service cost 795 861 19 20 Interest cost 4,020 3,979 305 325 Actuarial loss (gain) 6,718 (8,690 ) 18 (2,608 ) Contributions by plan participants 103 105 389 440 Benefits paid (9,326 ) (9,413 ) (1,357 ) (1,674 ) Benefit obligation, end of year $ 107,322 $ 105,012 $ 7,451 $ 8,077 Change in plan assets: Fair value of assets, beginning of year $ 90,258 $ 94,372 $ - $ - Actual return on plan assets 4,125 2,894 - - Employer contribution 2,131 2,300 968 1,234 Contributions by plan participants 103 105 389 440 Benefits paid (9,326 ) (9,413 ) (1,357 ) (1,674 ) Fair value of assets, end of year $ 87,291 $ 90,258 $ - $ - Funded status $ (20,031 ) $ (14,754 ) $ (7,451 ) $ (8,077 ) Amounts recognized in the balance sheet consist of: Other assets - noncurrent $ 3 $ 157 $ - $ - Accrued liabilities - current (645 ) (679 ) (962 ) (1,241 ) Accrued retirement benefits - noncurrent (19,389 ) (14,232 ) (6,489 ) (6,836 ) Net amount recognized $ (20,031 ) $ (14,754 ) $ (7,451 ) $ (8,077 ) Amounts recognized in accumulated other comprehensive loss consist of (net of tax): Net transition obligation $ 178 $ 204 $ - $ - Prior service cost 144 360 (908 ) - Actuarial net loss 42,185 31,146 302 (833 ) Net amount recognized $ 42,507 $ 31,710 $ (606 ) $ (833 ) The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost during the next fiscal year for the qualified defined benefit and other postretirement benefit plans are as follows: Other Pension Postretirement Benefits Benefits Net transition obligation $ 34 $ - Prior service cost 45 (275 ) Actuarial net loss 3,134 - Net amount to be recognized $ 3,213 $ (275 ) The accumulated benefit obligation for all defined benefit pension plans was approximately $107,322 $105,012 June 30, 2019 2018, Information for pension plans with an accumulated benefit obligation in excess of plan assets : June 30 2019 2018 Projected and accumulated benefit obligation $ 102,879 $ 100,699 Fair value of plan assets 82,845 85,788 Components of Net Periodic Benefit Cost : Pension Benefits 2019 2018 Service cost $ 792 $ 868 Interest cost 4,019 3,981 Expected return on plan assets (5,238 ) (6,041 ) Amortization of transition obligation 34 36 Amortization of prior service cost 64 67 Amortization of actuarial net loss 2,710 3,021 Net periodic benefit cost $ 2,381 $ 1,932 Other Postretirement Benefits 2019 2018 Service cost $ 18 $ 20 Interest cost 304 325 Amortization of prior service cost (274 ) (206 ) Amortization of actuarial net loss - 32 Net periodic benefit cost $ 48 $ 171 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income for Fiscal 201 9 (Pre-tax): Other Postretirement Pension Benefits Net loss $ 8,098 $ 18 Prior service cost (211 ) - Amortization of transition asset (34 ) - Amortization of prior service (cost) benefit (64 ) 275 Amortization of net (loss) gain (2,711 ) - Total recognized in other comprehensive income 5,078 293 Net periodic benefit cost 2,381 48 Total recognized in net periodic benefit cost and other comprehensive income $ 7,459 $ 341 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income for Fiscal 201 8 (Pre-tax): Other Postretirement Pension Benefits Net gain $ (5,643 ) $ (940 ) Prior service cost - (1,668 ) Amortization of transition asset (34 ) - Amortization of prior service (cost) benefit (67 ) 206 Amortization of net (loss) gain (2,952 ) (32 ) Total recognized in other comprehensive income (8,696 ) (2,434 ) Net periodic benefit cost 1,932 171 Total recognized in net periodic benefit cost and other comprehensive income $ (6,764 ) $ (2,263 ) Additional Information Assumptions Other Pension Benefits Postretirement Benefits Weighted average assumptions used to determine benefit obligations at June 30 2019 2018 2019 2018 Discount rate 3.22 % 4.01 % 3.15 % 4.09 % Expected return on plan assets 6.04 % 6.74 % Other Pension Benefits Postretirement Benefits Weighted average assumptions used to determine net periodic benefit costs for years ended June 30 2019 2018 2019 2018 Discount rate 4.01 % 3.51 % 4.09 % 3.41 % Expected return on plan assets 6.74 % 6.68 % The assumed weighted-average healthcare cost trend rate was 6.50% 2019, 5% 2025. 1% $97 $4. 1% $85 $4. Plan Assets The Company’s Benefits Committee (“Committee”), a non-board management committee, oversees investment matters related to the Company’s funded benefit plans. The Committee works with external actuaries and investment consultants on an ongoing basis to establish and monitor investment strategies and target asset allocations. The overall objective of the Committee’s investment strategy is to earn a rate of return over time to satisfy the benefit obligations of the pension plans and to maintain sufficient liquidity to pay benefits and address other cash requirements of the pension plans. The Committee has established an Investment Policy Statement which provides written documentation of the Company’s expectations regarding its investment programs for the pension plans, establishes objectives and guidelines for the investment of the plan assets consistent with the Company’s financial and benefit-related goals, and outlines criteria and procedures for the ongoing evaluation of the investment program. The Company employs a total return on investment approach whereby a mix of investments among several asset classes are used to maximize long-term return of plan assets while avoiding excessive risk. Investment risk is measured and monitored on an ongoing basis through quarterly investment portfolio reviews, and annual liability measurements. The Company’s pension plan weighted-average asset allocations at June 30, 2019 2018 Target June 30 Asset Category Allocation 2019 2018 Equity securities 51 % 49 % 51 % Debt securities 40 % 42 % 39 % Real estate 9 % 9 % 10 % 100 % 100 % 100 % Due to market conditions and other factors, actual asset allocation may 98,211 $1,483 1.7% June 30, 2019 98,211 $2,438 2.7% June 30, 2018. The plans have a long-term return assumption of 6.25%. Fair value is defined as the price that would be received on the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The inputs used to measure fair value are classified into the following hierarchy: Level I Unadjusted quoted prices in active markets for identical instruments Level II Unadjusted quoted prices in active markets for similar instruments, or Unadjusted quoted prices for identical or similar instruments in markets that are not Other inputs that are observable in the market or can be corroborated by observable market data Level III Use of one The following table presents plan assets using the fair value hierarchy as of June 30, 2019: Total Level I Level II Level III Cash and cash equivalents $ 971 $ 971 $ - $ - Equity securities: Company common stock (a) 1,483 1,483 - - Common stock (a) 16,713 16,713 - - Mutual funds (b) 7,963 7,963 - - Annuity contracts (c) 6,171 - - 6,171 Total $ 33,301 $ 27,130 $ - $ 6,171 Investments Measured at Net Asset Value (d) 53,990 Total $ 87,291 The following table presents plan assets using the fair value hierarchy as of June 30, 2018: Total Level I Level II Level III Cash and cash equivalents $ 1,156 $ 1,156 $ - $ - Equity securities: Company common stock (a) 2,438 2,438 - - Common stock (a) 17,373 17,373 - - Mutual funds (b) 8,554 8,554 - - Annuity contracts (c) 6,113 - - 6,113 Total $ 35,634 $ 29,521 $ - $ 6,113 Investments Measured at Net Asset Value (d) 54,624 Total $ 90,258 (a) Common stock is valued at the closing price reported on the active market on which the individual securities are traded. These securities include U.S. equity securities invested in companies that are traded on exchanges inside the U.S. and international equity securities invested in companies that are traded on exchanges outside the U.S. (b) Mutual funds are valued at the daily closing price as reported by the fund. Mutual funds held by the Company’s funded benefit plans are open-end mutual funds that are registered with the Securities Exchange Commission. These funds are required to publish their daily net asset value (“NAV”) and to transact at that price. The mutual funds held by the Company’s funded benefit plans are deemed to be actively traded. (c) Annuity contracts represent contractual agreements in which payments are made to an insurance company, which agrees to pay out an income or lump sum amount at a later date. Annuity contracts are valued at the net present value of future cash flows. (d) In accordance with ASC 820 10, not The following table sets forth additional disclosures for the fair value measurement of the fair value of pension plan assets that calculate fair value based on NAV per share practical expedient as of June 30, 2019 June 30, 2018: 2019 2018 Fixed income funds $ 33,568 $ 31,852 International equity securities 3,168 3,294 Real estate 7,069 8,218 Hedged equity mutual funds 10,185 11,260 Total $ 53,990 $ 54,624 The following tables present a reconciliation of the fair value measurements using significant unobservable inputs (Level III) as of June 30, 2019 2018: 2019 2018 Beginning balance $ 6,113 $ 7,779 Actual return on plan assets: Relating to assets still held at reporting date 216 (58 ) Purchases, sales and settlements, net (158 ) (1,608 ) Ending balance $ 6,171 $ 6,113 Cash Flows Contributions The Company expects to contribute $1,936 2020. Estimated Future Benefit Payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Other Pension Postretirement Benefits Benefits 2020 $ 9,411 $ 977 2021 8,336 905 2022 8,138 825 2023 7,737 753 2024 7,395 681 Years 2025 - 2029 32,656 2,549 The Company does not The Company sponsors defined contribution plans covering substantially all domestic employees and certain foreign employees. These plans provide for employer contributions based primarily on employee participation. The total expense under the plans was $2,276 $1,935 2019 2018, |
Note P - Income Taxes
Note P - Income Taxes | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | P . INCOME TAXES United States and foreign income before income taxes and minority interest were as follows: 2019 2018 United States $ 7,059 $ 8,679 Foreign 7,448 5,741 $ 14,507 $ 14,420 The provision (benefit) for income taxes is comprised of the following: 2019 2018 Currently payable: Federal $ 248 $ 234 State 261 135 Foreign (3,644 ) 1,400 (3,135 ) 1,769 Deferred: Federal 920 5,529 State (7 ) 167 Foreign 5,933 (2,692 ) 6,846 3,004 $ 3,711 $ 4,773 The components of the net deferred tax asset as of June 30 2019 2018 Deferred tax assets: Retirement plans and employee benefits $ 7,732 $ 6,910 Foreign tax credit carryforwards 6,296 6,866 Federal tax credits 1,057 774 State net operating loss and other state credit carryforwards 1,269 1,190 Inventory 757 1,259 Reserves 765 1,099 Foreign NOL carryforwards 775 2,940 Accruals 339 324 Right of use assets - leases 3,691 - Other assets 656 403 23,337 21,765 Deferred tax liabilities: Property, plant and equipment 3,432 3,473 Intangibles 5,345 1,209 Long term lease obligations 3,617 - Other liabilities 194 230 12,588 4,912 Valuation allowance - - Total net deferred tax assets $ 10,749 $ 16,853 The Company maintains valuation allowances when it is more likely than not not not not Following is a reconciliation of the applicable U.S. federal income taxes to the actual income taxes reflected in the statements of operations: 2019 2018 U.S. federal income tax at 21% (27.56% in 2018) $ 3,046 $ 3,974 Increases (reductions) in tax resulting from: Foreign tax items 281 675 State taxes 209 272 Valuation allowance - (3,803 ) Change in prior year estimate (50 ) (89 ) Research and development tax credits (306 ) (162 ) Section 199 deduction - (114 ) Unrecognized tax benefits 158 (42 ) Stock compensation (153 ) (114 ) Rate changes 15 3,786 Deferred tax basis adjustments (111 ) 431 Executive compensation 291 - GILTI inclusion 284 - FDII deduction (74 ) - Other, net 121 (41 ) $ 3,711 $ 4,773 On December 22, 2017, December 31, 2017, 2018. not 2019. 2019 The Securities and Exchange Commission issued Staff Accounting Bulletin 118 740 December 22, 2017. not one 740. 740 The Tax Act results in comprehensive changes to tax reporting rules. The Company has thoroughly reviewed all provisions of the Tax Act to determine their applicability to both fiscal year 2019 Reduction in the Federal Corporate Income Tax Rate: 35% 21% December 31, 2017. 27.56% 2018. $3,786. Deemed Repatriation Transition Tax 1986 zero Executive Compensation Limitations: 162 162 $1,000 three Global Intangible Low Taxed Income ( “ GILTI ” ): 10% Foreign Derived Intangible Income ( “ FDII ” ): The Company has not no $6,208 June 30, 2019. not 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 2015 2019 2015. The Company has approximately $938 June 30, 2019, 2015 twelve 2010 2013. Below is a reconciliation of beginning and ending amount of unrecognized tax benefits: June 30, 2019 June 30, 2018 Unrecognized tax benefits, beginning of year $ 816 $ 827 Additions based on tax positions related to the prior year 31 - Additions based on tax positions related to the current year 91 303 Reductions based on tax positions related to the prior year - (9 ) Subtractions due to statutes closing - (105 ) Settlements with taxing authorities - (200 ) Unrecognized tax benefits, end of year $ 938 $ 816 Substantially all of the Company’s unrecognized tax benefits as of June 30, 3019, June 30, 2019 2018, $148 93, not |
Note Q - Contingencies
Note Q - Contingencies | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Q . CONTINGENCIES The Company is involved in litigation of which the ultimate outcome and liability to the Company, if any, are not not |
Note R - Restructuring of Opera
Note R - Restructuring of Operations and Other Operating Income | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Restructuring, Impairment, and Other Activities Disclosure [Text Block] | R . RESTRUCTURING OF OPERATIONS AND OTHER OPERATING INCOME Restructuring expenses 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 pre-tax restructuring charges of $1,179 $3,398 2019 2018, Restructuring activities since June 2015 176 June 30, 2019 $10,452. The following is a roll-forward of restructuring activity: Accrued restructuring liability, June 30, 2017 $ 92 Additions 3,398 Payments and adjustments (3,400 ) Accrued restructuring liability, June 30, 2018 90 Additions 1,179 Payments and adjustments (1,269 ) Accrued restructuring liability, June 30, 2019 $ - Other Operating Income – Sale of Mill Log Business On February 7, 2019, one $1,374 $1,139 2019 2018, $6,298, $592. March 4, 2019 $7,658, $5,158 $2,500 March 4, 2020. $768, Other Operating Income – Fair Value Adjustment of Contingent Consideration As discussed in Note B, Acquisition of Veth Propulsion Holding B.V., the Company issued a contingent consideration as part of the Veth Propulsion acquisition; the fair value at acquisition date was $2,921. On May 13, 2019, 139,347 $1,991 805, not $809, |
Note S - Earnings Per Share
Note S - Earnings Per Share | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | S . 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 under the 2010 two The components of basic and diluted earnings per share were as follows: 2019 2018 Basic: Net income $ 10,796 $ 9,647 Less: Net earnings attributable to noncontrolling interest (123 ) (119 ) Less: Undistributed earnings attributable to unvested shares (148 ) (222 ) Net income available to Twin Disc shareholders 10,525 9,306 Weighted average shares outstanding - basic 12,571 11,295 Basic Income Per Share: Net income per share - basic $ 0.84 $ 0.82 Diluted: Net income $ 10,796 $ 9,647 Less: Net earnings attributable to noncontrolling interest (123 ) (119 ) Less: Undistributed earnings attributable to unvested shares (148 ) (222 ) Net income available to Twin Disc shareholders 10,525 9,306 Weighted average shares outstanding - basic 12,571 11,295 Effect of dilutive stock awards 111 100 Weighted average shares outstanding - diluted 12,682 11,395 Diluted Income Per Share: Net income per share - diluted $ 0.83 $ 0.82 The following potential common shares were excluded from diluted EPS for the year ended June 30, 2019 80,164 172,637 13,123 3,483 The following potential common shares were excluded from diluted EPS for the year ended June 30, 2018 61,286 237,657 3,568 |
Note T - Derivative Financial I
Note T - Derivative Financial Intruments | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | T . D ERIVATIVE FINANCIAL INSTRUMENTS The Company reports all derivative instruments on its consolidated balance sheets at fair value and establishes criteria for designation and effectiveness of transactions entered into for hedging purposes. As a global organization, the Company faces exposure to market risks, such as fluctuations in foreign currency exchange rates, interest rates and commodity prices. To manage the volatility relating to these exposures, the Company enters into various derivative instruments from time to time under its risk management policies. The Company designates derivative instruments as hedges on a transaction basis to support hedge accounting. The changes in fair value of these hedging instruments offset in part or in whole corresponding changes in the fair value or cash flows of the underlying exposures being hedged. The Company assesses the initial and ongoing effectiveness of its hedging relationships in accordance with its policy. The Company does not no Interest Rate Swaps Designated as Cash Flow Hedges The primary purpose of the Company’s cash flow hedging activities is to manage the potential changes in value associated with interest payments on the Company’s LIBOR-based indebtedness. The Company records gains and losses on interest rate swap contracts qualifying as cash flow hedges in accumulated other comprehensive loss to the extent that these hedges are effective and until the Company recognizes the underlying transactions in net earnings, at which time these gains and losses are recognized in interest expense on its consolidated statements of operations and comprehensive income. Cash flows from derivative financial instruments are classified as cash flows from financing activities on the consolidated statements of cash flows. These contracts generally have original maturities of greater than 12 Net unrealized after-tax losses related to cash flow hedging activities that were included in accumulated other comprehensive loss were $509 $0 June 30, 2019 2018, The Company estimates that $122 twelve Foreign Currency Forward Contracts Not The Company primarily enters into forward exchange contracts to reduce the earnings and cash flow impact of non-functional currency denominated receivables and payables. These contracts are highly effective in hedging the cash flows attributable to changes in currency exchange rates. Gains and losses resulting from these contracts offset the foreign exchange gains or losses on the underlying assets and liabilities being hedged. The maturities of the forward exchange contracts generally coincide with the settlement dates of the related transactions. Gains and losses on these contracts are recorded in other expense, net in the consolidated statement of operations and comprehensive income as the changes in the fair value of the contracts are recognized and generally offset the gains and losses on the hedged items in the same period. The primary currency to which the Company was exposed in fiscal 2019 2018 no June 30, 2019 June 30, 2018. Other Derivative Instruments The Company does not not Fair Value of Derivative Instruments The Company’s interest rate swaps and foreign currency forward contracts are recorded at fair value on the consolidated balance sheets using a discounted cash flow analysis that incorporates observable market inputs. These market inputs include foreign currency spot and forward rates, and various interest rate curves, and are obtained from pricing data quoted by various banks, third 2 Counterparties to these foreign currency forward contracts have at least an investment grade rating. Credit ratings on some of the Company’s counterparties may The fair value of derivative instruments included in the consolidated balance sheets at June 30 Balance Sheet Location 2019 2018 Derivatives designated as hedges: Interest rate swaps Accrued liabilities $ 122 $ - Interest rate swaps Other long-term liabilities 544 - The impact of the Company’s derivative instruments on the consolidated statement of operations and comprehensive income for the years ended June 30 Statement of Comprehensive Income Location 2019 2018 Derivatives designated as hedges: Interest rate swaps Interest expense $ 1 $ - Interest rate swaps Unrealized loss on cash flow hedge (509 ) - Derivatives not designated as hedges: Foreign currency forward contracts Other income (expense), net $ 4 $ (65 ) |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | T WIN DISC, INCORPORATED AND SUBSIDIARIES SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS for the years ended June 30, 20 1 9 and 20 1 8 ( i n thousands) Balance at Charged to Balance at Beginning Costs and End of Description of Period Expenses Deductions (1) Period 2019: Allowance for losses on accounts receivable $ 1,478 $ 236 $ 132 $ 1,582 Deferred tax valuation allowance $ - $ - $ - $ - 2018: Allowance for losses on accounts receivable $ 1,519 $ 280 $ 321 $ 1,478 Deferred tax valuation allowance $ 3,803 $ - $ 3,803 $ - ( 1 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Consolidation Principles May 31, March 31. |
Use of Estimates, Policy [Policy Text Block] | Management Estimates-- |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Translation of Foreign Currencies $681 $198 2019 2018, |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash three not |
Receivable [Policy Text Block] | Accounts Receivable $1,582 $1,478 June 30, 2019 2018, may may |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments . 1 2 June 30, 2019. June 30, 2019. 2 |
Derivatives, Policy [Policy Text Block] | Derivative Financial Instruments - |
Inventory, Policy [Policy Text Block] | Inventories first first first |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment and Depreciation 10 40 5 15 not |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-lived Assets may not may third |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Other Intangibles fourth may not A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may Goodwill impairment charges are recorded using a simplified one In fiscal 2018 2019, first fourth not The Company conducted interim qualitative assessments throughout the year, and its annual assessment for goodwill impairment as of March 30, 2019 June 30, 2018 The fair value of the Company’s other intangible assets with indefinite lives, primarily tradenames, is estimated using the relief-from-royalty method, which requires assumptions related to projected revenues; assumed royalty rates that could be payable if the Company did not June 30, 2019 no Changes in circumstances, existing at the measurement date or at other times in the future, or in the numerous estimates associated with management’s judgments, assumptions and estimates made in assessing the fair value of goodwill and other indefinite-lived intangibles, could result in an impairment charge in the future. The Company will continue to monitor all significant estimates and impairment indicators, and will perform interim impairment reviews as necessary. Any cost incurred to extend or renew the term of an indefinite lived intangible asset are expensed as incurred. |
Income Tax, Policy [Policy Text Block] | Income Taxes not not not |
Revenue [Policy Text Block] | Revenue Recognition five 1 2 3 4 5 not not no Goods sold to third |
Shipping and Handling, Fees and Costs [Policy Text Block] | Shipping and Handling Fees and Costs |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Standards a. In May 2014, 2014 09 July 1, 2018, not not July 1, 2018. The Company determined that deferral of revenue is appropriate for certain agreements where the performance of services after product delivery is required. Such services primarily pertain to technical commissioning services by its entities in its marine and propulsion business, whereby the Company’s technicians calibrate the controls and transmission to ensure proper performance for the customer’s specific application. This service helps identify issues with the ship's design or performance that need to be remediated by the ship builder or other component suppliers prior to the ship being officially accepted into service by the ship buyer. The cumulative effect adjustment of adopting the new standard is not b. In February 2016, 2016 02 12 July 1, 2018 2014 09, For operating leases in which the Company is a lessee, the Company concluded that all existing operating leases under the old guidance continue to be classified as operating leases under the new guidance, and all existing capital leases under the old guidance are classified as finance leases under the new guidance. The Company excluded any lease contracts with terms of twelve The following table presents the effect of the adoption of ASU 2016 02 June 30, 2018: June 30, 2018 Adoption June 30, 2018 As Reported Impact Restated Property, plant and equipment, net $ 48,940 $ 6,527 $ 55,467 Lease obligations - 6,527 6,527 The adoption of ASU 2014 09 2016 02 not June 30, 2018. c. In March 2017, 2017 07 July 1, 2018 no The following table presents the effect of the adoption of ASU 2017 07 June 30, 2018: For the Year Ended June 30, 2018 Adoption June 30, 2018 As Reported Impact Restated Cost of goods sold $ 160,497 $ (405 ) $ 160,092 Gross profit 80,236 405 80,641 Marketing, engineering and administrative expenses 61,909 (814 ) 61,095 Income from operations 14,929 1,219 16,148 Other income (expense), net (282 ) (1,219 ) (1,501 ) d. In February 2018, 2018 02 July 1, 2018 $6,903 e. In October 2016, 2016 16 July 1, 2018. not f. In August 2016, 2016 15 eight July 1, 2018. not g. In August 2017, 2017 12, 815 fourth 2019. not h. In August 2018, No. 33 10532, X 3 04 3 04 second 2019. not New Accounting Releases a. In June 2018, 2018 07 December 15, 2018, ( 2020 b. In August 2018, 2018 13 820, December 15, 2019 ( 2021 c. In August 2018, 2018 14 December 15, 2020 ( 2021 |
Note A - Basis of Presentatio_2
Note A - Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Standards Update 2017-07 [Member] | |
Notes Tables | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | For the Year Ended June 30, 2018 Adoption June 30, 2018 As Reported Impact Restated Cost of goods sold $ 160,497 $ (405 ) $ 160,092 Gross profit 80,236 405 80,641 Marketing, engineering and administrative expenses 61,909 (814 ) 61,095 Income from operations 14,929 1,219 16,148 Other income (expense), net (282 ) (1,219 ) (1,501 ) |
Accounting Standards Update 2016-02 [Member] | |
Notes Tables | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | June 30, 2018 Adoption June 30, 2018 As Reported Impact Restated Property, plant and equipment, net $ 48,940 $ 6,527 $ 55,467 Lease obligations - 6,527 6,527 |
Note B - Acquisition of Veth _2
Note B - Acquisition of Veth Propulsion Holding BV (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Business Acquisitions by Acquisition, Consideration Transferred [Table Text Block] | Cash, paid at closing and after agreed-upon working capital adjustments $ 59,407 Fair value of contingent consideration at acquisition date 2,921 Total $ 62,328 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Fair Value of Assets Acquired Cash, including restricted cash $ 1,078 Accounts receivable and other current assets 10,437 Inventories 26,862 Property, plant and equipment 2,661 Intangibles (a) 26,500 Accounts payable and accrued liabilities (21,208 ) Deferred tax liability (8,001 ) Total net assets acquired 38,329 Goodwill (b) 23,999 Total consideration $ 62,328 |
Business Acquisition, Pro Forma Information, Actual [Table Text Block] | Year Ended June 30, 2019 Net sales $ 54,909 Gross profit (a) 10,085 Operating loss (b) (1,281 ) Net loss attributable to Twin Disc (1,849 ) |
Business Acquisition, Pro Forma Information [Table Text Block] | Year Ended Year Ended June 30, 2019 June 30, 2018 Net sales $ 302,663 $ 296,556 Gross profit (a) 93,918 92,158 Net income attributable to Twin Disc (b) 14,227 5,277 Basic income per share attributable to Twin Disc common shareholders $ 1.13 $ 0.47 Diluted income per share attributable to Twin Disc common shareholders $ 1.12 $ 0.46 Weighted average number of common shares outstanding: Basic 12,571 11,295 Diluted 12,682 11,395 |
Note C - Revenue Recognition (T
Note C - Revenue Recognition (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Elimination of Manufacturing Distribution Intercompany Sales Total Industrial $ 30,393 $ 8,079 $ (4,430 ) $ 34,042 Land-based transmissions 111,260 30,483 (28,950 ) 112,793 Marine and propulsion systems 138,704 62,329 (50,796 ) 150,237 Other 71 5,590 (70 ) 5,591 Total $ 280,428 $ 106,481 $ (84,246 ) $ 302,663 |
Note D - Inventories (Tables)
Note D - Inventories (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | 2019 2018 Finished parts $ 57,682 $ 49,332 Work in process 23,812 13,183 Raw materials 44,399 21,486 $ 125,893 84,001 |
Note E - Property, Plant and _2
Note E - Property, Plant and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | 2019 2018 Land $ 6,479 $ 6,525 Buildings 47,627 46,473 Machinery and equipment 158,183 144,457 212,289 197,455 Less: accumulated depreciation (141,031 ) (141,988 ) $ 71,258 $ 55,467 |
Note F - Goodwill and Other I_2
Note F - Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | Net Book Value Rollforward Net Book Value By Reporting Unit Gross Carrying Amount Accumulated Impairment Net Book Value European Industrial European Propulsion Balance at June 30, 2017 $ 16,407 $ (13,822 ) $ 2,585 $ 2,585 $ - Translation adjustment 107 - 107 107 - Balance at June 30, 2018 16,514 (13,822 ) 2,692 2,692 - Acquisition 23,999 - 23,999 - 23,999 Translation adjustment (737 ) - (737 ) (109 ) (628 ) Balance at June 30, 2019 $ 39,776 $ (13,822 ) $ 25,954 $ 2,583 $ 23,371 |
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 Customer Relationships Technology Know-how Trade Name Other Balance at June 30, 2017 $ 13,436 $ (11,632 ) $ 1,804 $ - $ - $ 1,319 $ 485 Addition 19 - 19 - - - 19 Amortization - (149 ) (149 ) - - (84 ) (65 ) Translation adjustment 30 - 30 - - 53 (23 ) Balance at June 30, 2018 13,485 (11,781 ) 1,704 - - 1,288 416 Addition 236 - 236 - - - 236 Acquistion 26,500 - 26,500 16,300 8,400 1,800 - Amortization - (2,653 ) (2,653 ) (1,123 ) (1,172 ) (261 ) (97 ) Translation adjustment (634 ) - (634 ) (334 ) (203 ) (94 ) (3 ) Balance at June 30, 2019 $ 39,587 $ (14,434 ) $ 25,153 $ 14,843 $ 7,025 $ 2,733 $ 552 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Fiscal Year 2020 $ 2,904 2021 2,890 2022 2,874 2023 2,888 2024 2,789 Thereafter 10,808 |
Note G - Accrued Liabilities (T
Note G - Accrued Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | 2019 2018 Customer deposits $ 14,924 $ 5,426 Salaries and wages 6,982 10,311 Warranty 3,034 3,952 Accrued professional fees 1,843 3,501 Other 12,826 9,786 $ 39,609 $ 32,976 |
Note H - Warranty (Tables)
Note H - Warranty (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | 2019 2018 Reserve balance, July 1 $ 4,407 $ 2,062 Current period expense and adjustments 2,766 4,998 Payments or credits to customers (3,953 ) (2,671 ) Acquisition 557 - Translation adjustment (41 ) 18 Reserve balance, June 30 $ 3,736 $ 4,407 |
Note I - Debt (Tables)
Note I - Debt (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | 2019 2018 Revolving loan agreement $ 22,666 $ 4,787 Term loan (due March 2026) 19,500 - Other 325 37 Subtotal 42,491 4,824 Less: current maturities (2,000 ) - Total long-term debt $ 40,491 $ 4,824 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Fiscal Year 2020 $ 2,000 2021 2,161 2022 2,081 2023 24,709 2024 2,016 Thereafter 9,524 $ 42,491 |
Note J - Lease Obligations (Tab
Note J - Lease Obligations (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases and Finance Lease, Liability, Maturity [Table Text Block] | Operating Leases Finance Leases 2020 $ 3,186 $ 136 2021 2,489 136 2022 1,950 136 2023 1,722 132 2024 1,532 112 Thereafter 11,112 - Total future lease payments 21,991 652 Less: Amount representing interest (7,861 ) (99 ) Present value of future payments $ 14,130 $ 553 |
Lease, Cost [Table Text Block] | For the Year Ended June 30, 2019 June 30, 2018 Finance lease cost: Amortization of right-of-use assets $ 27 $ 3 Interest on lease liabilities 8 1 Operating lease cost 3,348 2,462 Short-term lease cost 40 39 Variable lease cost 37 8 Total lease cost 3,460 2,513 Less: Sublease income (222 ) (204 ) Net lease cost $ 3,238 $ 2,309 |
Operating and Finance Leases, Other Disclosures [Table Text Block] | For the Year Ended June 30, 2019 June 30, 2018 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,338 $ 2,417 Operating cash flows from finance leases 18 3 Financing cash flows from finance leases 9 1 Right-of-use-assets obtained in exchange for lease obligations: Operating leases 13,875 4,019 Finance leases 553 - Weighted average remaining lease term (years): Operating leases 11.1 5.6 Finance lease 4.8 4.0 Weighted average discount rate: Operating leases 7.7 % 7.2 % Finance leases 7.3 % 3.9 % |
Note K - Shareholders' Equity (
Note K - Shareholders' Equity (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Stockholders Equity [Table Text Block] | 2019 2018 Translation adjustments $ 4,439 $ 7,085 Net loss on cash flow hedge derivatives, net of income taxes of $156 and $0, respectively (509 ) - Benefit plan adjustments, net of income taxes of $12,707 and $11,494 respectively (41,901 ) (30,877 ) Accumulated other comprehensive loss $ (37,971 ) $ (23,792 ) |
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 ) Other comprehensive income before reclassifications 955 5,824 Amounts reclassified from accumulated other comprehensive income - 2,100 Net current period other comprehensive income 955 7,924 Balance at June 30, 2018 $ 7,085 $ (30,877 ) Translation Benefit Plan Cash Flow Adjustment Adjustment Hedges Balance at June 30, 2018 $ 7,085 $ (30,877 ) $ - Other comprehensive loss before reclassifications (2,646 ) (6,068 ) (509 ) Release stranded tax effects - (6,903 ) - Amounts reclassified from accumulated other comprehensive income - 1,947 - Net current period other comprehensive income (2,646 ) (11,024 ) (509 ) Balance at June 30, 2019 $ 4,439 $ (41,901 ) $ (509 ) |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Amount Reclassified Amortization of benefit plan items Actuarial losses $ (3,053 ) Transition asset and prior service benefit 103 Total before tax benefit (2,950 ) Tax benefit 850 Total reclassification net of tax $ (2,100 ) Amount Reclassified Amortization of benefit plan items Actuarial losses $ (2,710 ) Transition asset and prior service benefit 176 Total before tax benefit (2,534 ) Tax benefit 587 Total reclassification net of tax $ (1,947 ) |
Note L - Business Segments an_2
Note L - Business Segments and Foreign Operations (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Revenue from External Customers by Products and Services [Table Text Block] | 2019 2018 Industrial $ 34,042 $ 30,888 Land-based transmissions 112,793 107,169 Marine and propulsion systems 150,237 96,785 Other 5,591 5,891 Total $ 302,663 $ 240,733 |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | 2019 Manufacturing Distribution Total Net Sales $ 280,428 $ 106,481 $ 386,909 Intra-segment sales 20,384 14,026 34,410 Inter-segment sales 46,078 3,758 49,836 Interest income 1,154 26 1,180 Interest expense 3,086 (37 ) 3,049 Income taxes 7,939 353 8,292 Depreciation and amortization 12,893 402 13,295 Net income attributable to Twin Disc 25,062 248 25,310 Assets 384,612 46,076 430,688 Expenditures for segment assets 10,725 663 11,388 2018 Manufacturing Distribution Total Net Sales $ 216,383 $ 84,688 $ 301,071 Intra-segment sales 22,912 8,743 31,655 Inter-segment sales 26,074 2,609 28,683 Interest income 16 18 34 Interest expense 275 - 275 Income taxes 15,782 588 16,370 Depreciation and amortization 5,632 452 6,084 Net income attributable to Twin Disc 22,799 1,067 23,866 Assets 266,417 52,230 318,647 Expenditures for segment assets 5,482 248 5,730 |
Reconciliation of Revenue and Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | 2019 2018 Net sales: Total net sales from reportable segments $ 386,909 $ 301,071 Elimination of inter-company sales (84,246 ) (60,338 ) Total consolidated net sales $ 302,663 $ 240,733 Net income attributable to Twin Disc: Total net income from reportable segments $ 25,310 $ 23,866 Other adjustments and corporate expenses (14,637 ) (14,338 ) Total consolidated net income attributable to Twin Disc $ 10,673 $ 9,528 |
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated [Table Text Block] | Segment Consolidated Totals Adjustments Totals 2019 Interest income $ 1,180 $ (1,137 ) $ 43 Interest expense 3,049 (1,122 ) 1,927 Income taxes 8,292 (4,581 ) 3,711 Depreciation and amortization 13,295 317 13,612 Assets 430,688 (83,818 ) 346,870 Expenditures for segment assets 11,388 591 11,979 2018 Interest income $ 34 $ 21 $ 55 Interest expense 275 7 282 Income taxes 16,370 (11,597 ) 4,773 Depreciation and amortization 6,084 380 6,464 Assets 318,647 (77,407 ) 241,240 Expenditures for segment assets 5,730 598 6,328 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | 2019 2018 Net sales United States $ 132,467 $ 141,705 Netherlands 31,521 4,755 China 28,772 11,664 Italy 12,755 12,551 Australia 12,463 12,479 Canada 10,464 13,397 Other countries 74,221 44,182 Total $ 302,663 $ 240,733 2019 2018 Long-lived assets United States $ 41,233 $ 37,765 Netherlands 13,186 - Belgium 8,595 7,576 Switzerland 6,810 6,841 Italy 1,894 2,230 Other countries 3,298 4,905 Total $ 75,016 $ 59,317 |
Note M - Stock-based Compensa_2
Note M - Stock-based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule Of Share-based Compensation Shares Available For Future Options [Table Text Block] | 2019 2018 2018 LTI Plan 742,325 - 2010 Directors' Plan 61,354 80,938 |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Weighted Average Weighted Remaining Aggregate Average Contractual Intrinsic 2019 Price Life (years) Value Non-qualified stock options: Options outstanding at beginning of year 7,200 $ 12.31 Granted - - Canceled/expired - - Exercised (3,600 ) 10.01 Options outstanding at June 30 3,600 $ 14.61 1.00 $ 1.8 |
Note O - Pension and Other Po_2
Note O - Pension and Other Postretirement Benefit Plans (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Net Funded Status [Table Text Block] | Pension Other Postretirement Benefits Benefits 2019 2018 2019 2018 Change in benefit obligation: Benefit obligation, beginning of year $ 105,012 $ 118,170 $ 8,077 $ 11,574 Service cost 795 861 19 20 Interest cost 4,020 3,979 305 325 Actuarial loss (gain) 6,718 (8,690 ) 18 (2,608 ) Contributions by plan participants 103 105 389 440 Benefits paid (9,326 ) (9,413 ) (1,357 ) (1,674 ) Benefit obligation, end of year $ 107,322 $ 105,012 $ 7,451 $ 8,077 Change in plan assets: Fair value of assets, beginning of year $ 90,258 $ 94,372 $ - $ - Actual return on plan assets 4,125 2,894 - - Employer contribution 2,131 2,300 968 1,234 Contributions by plan participants 103 105 389 440 Benefits paid (9,326 ) (9,413 ) (1,357 ) (1,674 ) Fair value of assets, end of year $ 87,291 $ 90,258 $ - $ - Funded status $ (20,031 ) $ (14,754 ) $ (7,451 ) $ (8,077 ) Amounts recognized in the balance sheet consist of: Other assets - noncurrent $ 3 $ 157 $ - $ - Accrued liabilities - current (645 ) (679 ) (962 ) (1,241 ) Accrued retirement benefits - noncurrent (19,389 ) (14,232 ) (6,489 ) (6,836 ) Net amount recognized $ (20,031 ) $ (14,754 ) $ (7,451 ) $ (8,077 ) Amounts recognized in accumulated other comprehensive loss consist of (net of tax): Net transition obligation $ 178 $ 204 $ - $ - Prior service cost 144 360 (908 ) - Actuarial net loss 42,185 31,146 302 (833 ) Net amount recognized $ 42,507 $ 31,710 $ (606 ) $ (833 ) |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year [Table Text Block] | Other Pension Postretirement Benefits Benefits Net transition obligation $ 34 $ - Prior service cost 45 (275 ) Actuarial net loss 3,134 - Net amount to be recognized $ 3,213 $ (275 ) |
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Table Text Block] | June 30 2019 2018 Projected and accumulated benefit obligation $ 102,879 $ 100,699 Fair value of plan assets 82,845 85,788 |
Schedule of Net Benefit Costs [Table Text Block] | Pension Benefits 2019 2018 Service cost $ 792 $ 868 Interest cost 4,019 3,981 Expected return on plan assets (5,238 ) (6,041 ) Amortization of transition obligation 34 36 Amortization of prior service cost 64 67 Amortization of actuarial net loss 2,710 3,021 Net periodic benefit cost $ 2,381 $ 1,932 Other Postretirement Benefits 2019 2018 Service cost $ 18 $ 20 Interest cost 304 325 Amortization of prior service cost (274 ) (206 ) Amortization of actuarial net loss - 32 Net periodic benefit cost $ 48 $ 171 |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | Other Postretirement Pension Benefits Net loss $ 8,098 $ 18 Prior service cost (211 ) - Amortization of transition asset (34 ) - Amortization of prior service (cost) benefit (64 ) 275 Amortization of net (loss) gain (2,711 ) - Total recognized in other comprehensive income 5,078 293 Net periodic benefit cost 2,381 48 Total recognized in net periodic benefit cost and other comprehensive income $ 7,459 $ 341 Other Postretirement Pension Benefits Net gain $ (5,643 ) $ (940 ) Prior service cost - (1,668 ) Amortization of transition asset (34 ) - Amortization of prior service (cost) benefit (67 ) 206 Amortization of net (loss) gain (2,952 ) (32 ) Total recognized in other comprehensive income (8,696 ) (2,434 ) Net periodic benefit cost 1,932 171 Total recognized in net periodic benefit cost and other comprehensive income $ (6,764 ) $ (2,263 ) |
Defined Benefit Plan, Assumptions [Table Text Block] | Other Pension Benefits Postretirement Benefits Weighted average assumptions used to determine benefit obligations at June 30 2019 2018 2019 2018 Discount rate 3.22 % 4.01 % 3.15 % 4.09 % Expected return on plan assets 6.04 % 6.74 % Other Pension Benefits Postretirement Benefits Weighted average assumptions used to determine net periodic benefit costs for years ended June 30 2019 2018 2019 2018 Discount rate 4.01 % 3.51 % 4.09 % 3.41 % Expected return on plan assets 6.74 % 6.68 % |
Schedule of Plan Weighted Average Assets Allocations [Table Text Block] | Target June 30 Asset Category Allocation 2019 2018 Equity securities 51 % 49 % 51 % Debt securities 40 % 42 % 39 % Real estate 9 % 9 % 10 % 100 % 100 % 100 % |
Schedule of Allocation of Plan Assets [Table Text Block] | Total Level I Level II Level III Cash and cash equivalents $ 971 $ 971 $ - $ - Equity securities: Company common stock (a) 1,483 1,483 - - Common stock (a) 16,713 16,713 - - Mutual funds (b) 7,963 7,963 - - Annuity contracts (c) 6,171 - - 6,171 Total $ 33,301 $ 27,130 $ - $ 6,171 Investments Measured at Net Asset Value (d) 53,990 Total $ 87,291 Total Level I Level II Level III Cash and cash equivalents $ 1,156 $ 1,156 $ - $ - Equity securities: Company common stock (a) 2,438 2,438 - - Common stock (a) 17,373 17,373 - - Mutual funds (b) 8,554 8,554 - - Annuity contracts (c) 6,113 - - 6,113 Total $ 35,634 $ 29,521 $ - $ 6,113 Investments Measured at Net Asset Value (d) 54,624 Total $ 90,258 2019 2018 Fixed income funds $ 33,568 $ 31,852 International equity securities 3,168 3,294 Real estate 7,069 8,218 Hedged equity mutual funds 10,185 11,260 Total $ 53,990 $ 54,624 |
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets [Table Text Block] | 2019 2018 Beginning balance $ 6,113 $ 7,779 Actual return on plan assets: Relating to assets still held at reporting date 216 (58 ) Purchases, sales and settlements, net (158 ) (1,608 ) Ending balance $ 6,171 $ 6,113 |
Schedule of Expected Benefit Payments [Table Text Block] | Other Pension Postretirement Benefits Benefits 2020 $ 9,411 $ 977 2021 8,336 905 2022 8,138 825 2023 7,737 753 2024 7,395 681 Years 2025 - 2029 32,656 2,549 |
Note P - Income Taxes (Tables)
Note P - Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | 2019 2018 United States $ 7,059 $ 8,679 Foreign 7,448 5,741 $ 14,507 $ 14,420 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 2019 2018 Currently payable: Federal $ 248 $ 234 State 261 135 Foreign (3,644 ) 1,400 (3,135 ) 1,769 Deferred: Federal 920 5,529 State (7 ) 167 Foreign 5,933 (2,692 ) 6,846 3,004 $ 3,711 $ 4,773 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2019 2018 Deferred tax assets: Retirement plans and employee benefits $ 7,732 $ 6,910 Foreign tax credit carryforwards 6,296 6,866 Federal tax credits 1,057 774 State net operating loss and other state credit carryforwards 1,269 1,190 Inventory 757 1,259 Reserves 765 1,099 Foreign NOL carryforwards 775 2,940 Accruals 339 324 Right of use assets - leases 3,691 - Other assets 656 403 23,337 21,765 Deferred tax liabilities: Property, plant and equipment 3,432 3,473 Intangibles 5,345 1,209 Long term lease obligations 3,617 - Other liabilities 194 230 12,588 4,912 Valuation allowance - - Total net deferred tax assets $ 10,749 $ 16,853 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2019 2018 U.S. federal income tax at 21% (27.56% in 2018) $ 3,046 $ 3,974 Increases (reductions) in tax resulting from: Foreign tax items 281 675 State taxes 209 272 Valuation allowance - (3,803 ) Change in prior year estimate (50 ) (89 ) Research and development tax credits (306 ) (162 ) Section 199 deduction - (114 ) Unrecognized tax benefits 158 (42 ) Stock compensation (153 ) (114 ) Rate changes 15 3,786 Deferred tax basis adjustments (111 ) 431 Executive compensation 291 - GILTI inclusion 284 - FDII deduction (74 ) - Other, net 121 (41 ) $ 3,711 $ 4,773 |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | June 30, 2019 June 30, 2018 Unrecognized tax benefits, beginning of year $ 816 $ 827 Additions based on tax positions related to the prior year 31 - Additions based on tax positions related to the current year 91 303 Reductions based on tax positions related to the prior year - (9 ) Subtractions due to statutes closing - (105 ) Settlements with taxing authorities - (200 ) Unrecognized tax benefits, end of year $ 938 $ 816 |
Note R - Restructuring of Ope_2
Note R - Restructuring of Operations and Other Operating Income (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Restructuring and Related Costs [Table Text Block] | Accrued restructuring liability, June 30, 2017 $ 92 Additions 3,398 Payments and adjustments (3,400 ) Accrued restructuring liability, June 30, 2018 90 Additions 1,179 Payments and adjustments (1,269 ) Accrued restructuring liability, June 30, 2019 $ - |
Note S - Earnings Per Share (Ta
Note S - Earnings Per Share (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 2019 2018 Basic: Net income $ 10,796 $ 9,647 Less: Net earnings attributable to noncontrolling interest (123 ) (119 ) Less: Undistributed earnings attributable to unvested shares (148 ) (222 ) Net income available to Twin Disc shareholders 10,525 9,306 Weighted average shares outstanding - basic 12,571 11,295 Basic Income Per Share: Net income per share - basic $ 0.84 $ 0.82 Diluted: Net income $ 10,796 $ 9,647 Less: Net earnings attributable to noncontrolling interest (123 ) (119 ) Less: Undistributed earnings attributable to unvested shares (148 ) (222 ) Net income available to Twin Disc shareholders 10,525 9,306 Weighted average shares outstanding - basic 12,571 11,295 Effect of dilutive stock awards 111 100 Weighted average shares outstanding - diluted 12,682 11,395 Diluted Income Per Share: Net income per share - diluted $ 0.83 $ 0.82 |
Note T - Derivative Financial_2
Note T - Derivative Financial Intruments (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | Balance Sheet Location 2019 2018 Derivatives designated as hedges: Interest rate swaps Accrued liabilities $ 122 $ - Interest rate swaps Other long-term liabilities 544 - |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block] | Statement of Comprehensive Income Location 2019 2018 Derivatives designated as hedges: Interest rate swaps Interest expense $ 1 $ - Interest rate swaps Unrealized loss on cash flow hedge (509 ) - Derivatives not designated as hedges: Foreign currency forward contracts Other income (expense), net $ 4 $ (65 ) |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Valuation Allowances and Reserves [Table Text Block] | Balance at Charged to Balance at Beginning Costs and End of Description of Period Expenses Deductions (1) Period 2019: Allowance for losses on accounts receivable $ 1,478 $ 236 $ 132 $ 1,582 Deferred tax valuation allowance $ - $ - $ - $ - 2018: Allowance for losses on accounts receivable $ 1,519 $ 280 $ 321 $ 1,478 Deferred tax valuation allowance $ 3,803 $ - $ 3,803 $ - |
Note A - Basis of Presentatio_3
Note A - Basis of Presentation and Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Foreign Currency Transaction Gain (Loss), before Tax, Total | $ (681) | $ (198) |
Accounts Receivable, Allowance for Credit Loss, Ending Balance | 1,582 | $ 1,478 |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 0 | |
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | ||
Retained Earnings [Member] | ||
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | 6,903 | |
AOCI Attributable to Parent [Member] | ||
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | $ (6,903) | |
Building and Building Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Building and Building Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment, Useful Life | 40 years | |
Machinery and Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Machinery and Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment, Useful Life | 15 years |
Note A - Basis of Presentatio_4
Note A - Basis of Presentation and Significant Accounting Policies - Summary of Effect of Adopting ASU 2016-02 on the Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Property, plant and equipment, net | $ 71,258 | $ 55,467 |
Lease obligations | $ 14,683 | 6,527 |
Previously Reported [Member] | ||
Property, plant and equipment, net | 48,940 | |
Lease obligations | ||
Restatement Adjustment [Member] | Accounting Standards Update 2016-02 [Member] | ||
Property, plant and equipment, net | 6,527 | |
Lease obligations | $ 6,527 |
Note A - Basis of Presentatio_5
Note A - Basis of Presentation and Significant Accounting Policies - Effects of Adopting ASU 2017-07 on the Condensed Statements of Operations and Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cost of goods sold | $ 213,022 | $ 160,092 |
Gross profit | 89,641 | 80,641 |
Marketing, engineering and administrative expenses | 71,541 | 61,095 |
Income from operations | 18,498 | 16,148 |
Other income (expense), net | $ (2,107) | (1,501) |
Previously Reported [Member] | ||
Cost of goods sold | 160,497 | |
Gross profit | 80,236 | |
Marketing, engineering and administrative expenses | 61,909 | |
Income from operations | 14,929 | |
Other income (expense), net | (282) | |
Restatement Adjustment [Member] | Accounting Standards Update 2017-07 [Member] | ||
Cost of goods sold | (405) | |
Gross profit | 405 | |
Marketing, engineering and administrative expenses | (814) | |
Income from operations | 1,219 | |
Other income (expense), net | $ (1,219) |
Note B - Acquisition of Veth _3
Note B - Acquisition of Veth Propulsion Holding BV (Details Textual) - USD ($) $ in Thousands | May 13, 2019 | Jul. 02, 2018 | May 13, 2019 | Jun. 30, 2019 | Jun. 30, 2018 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years | ||||
Amortization of Inventory Fair Value Step-up | $ 4,277 | ||||
Amortization of Intangible Assets, Total | 2,653 | 149 | |||
Customer Relationships [Member] | |||||
Amortization of Intangible Assets, Total | 1,123 | ||||
Technology-Based Intangible Assets [Member] | |||||
Amortization of Intangible Assets, Total | 1,172 | ||||
Trade Names [Member] | |||||
Amortization of Intangible Assets, Total | 261 | 84 | |||
Veth Propulsion [Member] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ||||
Payments to Acquire Businesses, Gross | $ 58,862 | $ 59,407 | |||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 1,991 | ||||
Stock Issued During Period, Shares, Acquisitions | 139,347 | ||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Consideration Transferred | 2,921 | ||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 3,300 | $ 3,300 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years | ||||
Amortization of Inventory Fair Value Step-up | 4,277 | 4,715 | |||
Amortization of Intangible Assets, Total | 2,636 | ||||
Business Combination, Acquisition Related Costs | $ 461 | 1,768 | |||
Amortization of Intangible Assets and Interest Expense of Long-term Debt, Total, Before Tax | $ 4,542 | ||||
Veth Propulsion [Member] | Customer Relationships [Member] | |||||
Finite-Lived Intangible Asset, Useful Life | 12 years | ||||
Veth Propulsion [Member] | Technology-Based Intangible Assets [Member] | |||||
Finite-Lived Intangible Asset, Useful Life | 7 years | ||||
Veth Propulsion [Member] | Trade Names [Member] | |||||
Finite-Lived Intangible Asset, Useful Life | 10 years |
Note B - Acquisition of Veth _4
Note B - Acquisition of Veth Propulsion Holding BV - Consideration Transferred (Details) - Veth Propulsion [Member] - USD ($) $ in Thousands | Jul. 02, 2018 | May 13, 2019 |
Cash, paid at closing and after agreed-upon working capital adjustments | $ 58,862 | $ 59,407 |
Fair value of contingent consideration at acquisition date | 2,921 | |
Total | $ 62,328 |
Note B - Acquisition of Veth _5
Note B - Acquisition of Veth Propulsion Holding BV - Summary of Preliminary Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) | Jun. 30, 2019 | Jul. 02, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | |
Goodwill (b) | $ 25,954,000 | $ 2,692,000 | $ 2,585,000 | ||
Veth Propulsion [Member] | |||||
Cash, including restricted cash | $ 1,078,000 | ||||
Accounts receivable and other current assets | 10,437,000 | ||||
Inventories | 26,862,000 | ||||
Property, plant and equipment | 2,661,000 | ||||
Intangibles (a) | [1] | 26,500,000 | |||
Accounts payable and accrued liabilities | (21,208,000) | ||||
Deferred tax liability | (8,001,000) | ||||
Total net assets acquired | 38,329,000 | ||||
Goodwill (b) | [2] | 23,999,000 | |||
Total consideration | $ 62,328,000 | ||||
[1] | Intangibles consist of customer relationships, technology and know-how and tradenames, with estimated useful lives 12 years, 7 years, and 10 years, respectively, and weighted average remaining useful life of approximately 9 years. The amounts acquired are presented in Note F, Goodwill and Other Intangibles. | ||||
[2] | The Company is not able to deduct any of the goodwill for tax purposes. |
Note B - Acquisition of Veth _6
Note B - Acquisition of Veth Propulsion Holding BV - Financial Information From Veth Propulsion Included in the Consolidated Statements of Operations (Details) - Veth Propulsion [Member] $ in Thousands | 12 Months Ended | |
Jun. 30, 2019USD ($) | ||
Net sales | $ 54,909 | |
Gross profit | 10,085 | [1] |
Operating loss | (1,281) | [2] |
Net loss attributable to Twin Disc | $ (1,849) | |
[1] | Gross profit includes the non-recurring purchase accounting charge for the step-up of inventories acquired of $4,277 for the year. | |
[2] | In addition to (a), operating loss includes the depreciation of property, plant and equipment and amortization of intangible assets acquired of $2,636 for the year. Operating loss also includes one-time transaction charges related to the acquisition of $461 for the year. |
Note B - Acquisition of Veth _7
Note B - Acquisition of Veth Propulsion Holding BV - Unaudited Supplemental Pro Forma Information (Details) - Veth Propulsion [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Net sales | $ 302,663 | $ 296,556 | |
Gross profit | [1] | 93,918 | 92,158 |
Net income attributable to Twin Disc | [2] | $ 14,227 | $ 5,277 |
Basic income per share attributable to Twin Disc common shareholders (in dollars per share) | $ 1.13 | $ 0.47 | |
Diluted income per share attributable to Twin Disc common shareholders (in dollars per share) | $ 1.12 | $ 0.46 | |
Basic (in shares) | 12,571 | 11,295 | |
Diluted (in shares) | 12,682 | 11,395 | |
[1] | Gross profit includes the amortization of the step-up of inventories of $4,715 for the year. | ||
[2] | In addition to (a), this includes the amortization of intangible assets acquired and interest expense on borrowings under the Credit Agreement net of other expenses, amounting to $4,542 before tax, for the year. |
Note C - Revenue Recognition (D
Note C - Revenue Recognition (Details Textual) $ in Thousands | Jun. 30, 2019USD ($) |
Contract with Customer, Liability, Total | $ 0 |
Contract with Customer, Asset, before Allowance for Credit Loss, Total | $ 0 |
Note C - Revenue Recognition -
Note C - Revenue Recognition - Net Sales by Product Group (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Net Sales | $ 302,663 | $ 240,733 |
Operating Segments [Member] | ||
Net Sales | 386,909 | 301,071 |
Operating Segments [Member] | Manufacturing Segment [Member] | ||
Net Sales | 280,428 | 216,383 |
Operating Segments [Member] | Distribution Segment [Member] | ||
Net Sales | 106,481 | 84,688 |
Intersegment Eliminations [Member] | ||
Net Sales | (84,246) | (60,338) |
Industrial [Member] | ||
Net Sales | 34,042 | 30,888 |
Industrial [Member] | Operating Segments [Member] | Manufacturing Segment [Member] | ||
Net Sales | 30,393 | |
Industrial [Member] | Operating Segments [Member] | Distribution Segment [Member] | ||
Net Sales | 8,079 | |
Industrial [Member] | Intersegment Eliminations [Member] | ||
Net Sales | (4,430) | |
Land Based Transmissions [Member] | ||
Net Sales | 112,793 | 107,169 |
Land Based Transmissions [Member] | Operating Segments [Member] | Manufacturing Segment [Member] | ||
Net Sales | 111,260 | |
Land Based Transmissions [Member] | Operating Segments [Member] | Distribution Segment [Member] | ||
Net Sales | 30,483 | |
Land Based Transmissions [Member] | Intersegment Eliminations [Member] | ||
Net Sales | (28,950) | |
Marine and Propulsion Systems [Member] | ||
Net Sales | 150,237 | 96,785 |
Marine and Propulsion Systems [Member] | Operating Segments [Member] | Manufacturing Segment [Member] | ||
Net Sales | 138,704 | |
Marine and Propulsion Systems [Member] | Operating Segments [Member] | Distribution Segment [Member] | ||
Net Sales | 62,329 | |
Marine and Propulsion Systems [Member] | Intersegment Eliminations [Member] | ||
Net Sales | (50,796) | |
Other [Member] | ||
Net Sales | 5,591 | $ 5,891 |
Other [Member] | Operating Segments [Member] | Manufacturing Segment [Member] | ||
Net Sales | 71 | |
Other [Member] | Operating Segments [Member] | Distribution Segment [Member] | ||
Net Sales | 5,590 | |
Other [Member] | Intersegment Eliminations [Member] | ||
Net Sales | $ (70) |
Note D - Inventories (Details T
Note D - Inventories (Details Textual) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Percentage of LIFO Inventory | 52.00% | 48.00% |
Excess of Replacement or Current Costs over Stated LIFO Value | $ 25,709 | $ 24,630 |
Inventory Valuation Reserves, Ending Balance | $ 10,463 | $ 8,427 |
Note D - Inventories - Inventor
Note D - Inventories - Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Finished parts | $ 57,682 | $ 49,332 |
Work in process | 23,812 | 13,183 |
Raw materials | 44,399 | 21,486 |
Total inventories | $ 125,893 | $ 84,001 |
Note E - Property, Plant and _3
Note E - Property, Plant and Equipment (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Depreciation, Total | $ 6,682 | $ 6,315 |
Note E - Property, Plant and _4
Note E - Property, Plant and Equipment - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Land | $ 6,479 | $ 6,525 |
Buildings | 47,627 | 46,473 |
Machinery and equipment | 158,183 | 144,457 |
Property, plant and Equipment, Gross | 212,289 | 197,455 |
Less: accumulated depreciation | (141,031) | (141,988) |
Property, plant and Equipment, Net | $ 71,258 | $ 55,467 |
Note F - Goodwill and Other I_3
Note F - Goodwill and Other Intangibles (Details Textual) | May 13, 2019 | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jul. 02, 2018USD ($) | Jun. 30, 2017USD ($) | |
Goodwill, Ending Balance | $ 25,954,000 | $ 2,692,000 | $ 2,585,000 | |||
Goodwill, Impairment Loss | $ 0 | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years | |||||
Amortization of Intangible Assets, Total | $ 2,653,000 | 149,000 | ||||
Indefinite-lived Intangible Assets (Excluding Goodwill), Ending Balance | 200,000 | 202,000 | ||||
European Propulsion [Member] | ||||||
Goodwill, Ending Balance | 23,371,000 | |||||
Goodwill, Impairment Loss | $ 0 | |||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 118.00% | |||||
European Industrial [Member] | ||||||
Goodwill, Ending Balance | $ 2,583,000 | $ 2,692,000 | $ 2,585,000 | |||
Goodwill, Impairment Loss | $ 0 | |||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 41.00% | |||||
Measurement Input, Discount Rate [Member] | European Propulsion [Member] | ||||||
Goodwill, Measurement Input | 0.13 | |||||
Measurement Input, Discount Rate [Member] | European Industrial [Member] | ||||||
Goodwill, Measurement Input | 0.14 | |||||
Veth Propulsion [Member] | ||||||
Goodwill, Ending Balance | [1] | $ 23,999,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | [2] | $ 26,500,000 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years | |||||
Amortization of Intangible Assets, Total | $ 2,636,000 | |||||
[1] | The Company is not able to deduct any of the goodwill for tax purposes. | |||||
[2] | Intangibles consist of customer relationships, technology and know-how and tradenames, with estimated useful lives 12 years, 7 years, and 10 years, respectively, and weighted average remaining useful life of approximately 9 years. The amounts acquired are presented in Note F, Goodwill and Other Intangibles. |
Note F - Goodwill and Other I_4
Note F - Goodwill and Other Intangibles - Goodwill Rollforward (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Balance, goodwill gross carrying amount | $ 39,776,000 | $ 16,514,000 | $ 16,407,000 |
Translation adjustment, goodwill gross carrying amount | (737,000) | 107,000 | |
Acquisition, goodwill gross carrying amount | 23,999,000 | ||
Balance, goodwill accumulated impairment | (13,822) | (13,822,000) | (13,822,000) |
Goodwill, Ending Balance | 25,954,000 | 2,692,000 | 2,585,000 |
European Industrial [Member] | |||
Translation adjustment, goodwill gross carrying amount | (109,000) | 107,000 | |
Acquisition, goodwill gross carrying amount | |||
Goodwill, Ending Balance | 2,583,000 | 2,692,000 | 2,585,000 |
European Propulsion [Member] | |||
Translation adjustment, goodwill gross carrying amount | (628,000) | ||
Acquisition, goodwill gross carrying amount | 23,999,000 | ||
Goodwill, Ending Balance | $ 23,371,000 |
Note F - Goodwill and Other I_5
Note F - Goodwill and Other Intangibles - Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Balance, Definite Intangible Assets Gross Carrying Amount | $ 13,485 | $ 13,436 |
Addition, Definite Intangible Assets Gross Carrying Amount | 236 | 19 |
Translation adjustment, Definite Intangible Assets Gross Carrying Amount | (634) | 30 |
Acquistion, Definite Intangible Assets Gross Carrying Amount | 26,500 | |
Balance, Definite Intangible Assets Gross Carrying Amount | 39,587 | 13,485 |
Balance, Definite Intangible Assets Accumulated Amortization/Impairment | (11,781) | (11,632) |
Amortization, Definite Intangible Assets | (2,653) | (149) |
Translation adjustment, Definite Intangible Assets Accumulated Amortization/Impairment | ||
Balance, Definite Intangible Assets Accumulated Amortization/Impairment | (14,434) | (11,781) |
Balance at June 30, Definite Intangible Assets Net Book Value | 1,704 | 1,804 |
Addition, Definite Intangible Assets Net Book Value | 236 | 19 |
Translation adjustment, Definite Intangible Assets Net Book Value | (634) | 30 |
Acquistion, Definite Intangible Assets Net Book Value | 26,500 | |
Balance at June 30, Definite Intangible Assets Net Book Value | 25,153 | 1,704 |
Customer Relationships [Member] | ||
Amortization, Definite Intangible Assets | (1,123) | |
Balance at June 30, Definite Intangible Assets Net Book Value | ||
Addition, Definite Intangible Assets Net Book Value | ||
Translation adjustment, Definite Intangible Assets Net Book Value | (334) | |
Acquistion, Definite Intangible Assets Net Book Value | 16,300 | |
Balance at June 30, Definite Intangible Assets Net Book Value | 14,843 | |
Technology-Based Intangible Assets [Member] | ||
Amortization, Definite Intangible Assets | (1,172) | |
Balance at June 30, Definite Intangible Assets Net Book Value | ||
Addition, Definite Intangible Assets Net Book Value | ||
Translation adjustment, Definite Intangible Assets Net Book Value | (203) | |
Acquistion, Definite Intangible Assets Net Book Value | 8,400 | |
Balance at June 30, Definite Intangible Assets Net Book Value | 7,025 | |
Trade Names [Member] | ||
Amortization, Definite Intangible Assets | (261) | (84) |
Balance at June 30, Definite Intangible Assets Net Book Value | 1,288 | 1,319 |
Addition, Definite Intangible Assets Net Book Value | ||
Translation adjustment, Definite Intangible Assets Net Book Value | (94) | 53 |
Acquistion, Definite Intangible Assets Net Book Value | 1,800 | |
Balance at June 30, Definite Intangible Assets Net Book Value | 2,733 | 1,288 |
Other Intangible Assets [Member] | ||
Amortization, Definite Intangible Assets | (97) | (65) |
Balance at June 30, Definite Intangible Assets Net Book Value | 416 | 485 |
Addition, Definite Intangible Assets Net Book Value | 236 | 19 |
Translation adjustment, Definite Intangible Assets Net Book Value | (3) | (23) |
Acquistion, Definite Intangible Assets Net Book Value | ||
Balance at June 30, Definite Intangible Assets Net Book Value | $ 552 | $ 416 |
Note F - Goodwill and Other I_6
Note F - Goodwill and Other Intangibles - Estimated Intangibles Amortization Expense (Details) $ in Thousands | Jun. 30, 2019USD ($) |
2020 | $ 2,904 |
2021 | 2,890 |
2022 | 2,874 |
2023 | 2,888 |
2024 | 2,789 |
Thereafter | $ 10,808 |
Note G - Accrued Liabilities -
Note G - Accrued Liabilities - Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Customer deposits | $ 14,924 | $ 5,426 |
Salaries and wages | 6,982 | 10,311 |
Warranty | 3,034 | 3,952 |
Accrued professional fees | 1,843 | 3,501 |
Other | 12,826 | 9,786 |
Total accrued liabilities | $ 39,609 | $ 32,976 |
Note H - Warranty (Details Text
Note H - Warranty (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Product Warranty Accrual, Current | $ 3,034 | $ 3,952 |
Product Warranty Accrual, Noncurrent | $ 702 | $ 455 |
Minimum [Member] | ||
Warranty Period | 1 year | |
Maximum [Member] | ||
Warranty Period | 2 years |
Note H - Warranty - Warranty (D
Note H - Warranty - Warranty (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Reserve balance | $ 4,407 | $ 2,062 |
Current period expense and adjustments | 2,766 | 4,998 |
Payments or credits to customers | (3,953) | (2,671) |
Acquisition, Warranty | 557 | |
Translation adjustment | (41) | 18 |
Reserve balance | $ 3,736 | $ 4,407 |
Note I - Debt (Details Textual)
Note I - Debt (Details Textual) $ in Thousands | Apr. 22, 2019USD ($) | Mar. 04, 2019USD ($) | Mar. 03, 2019USD ($) | Sep. 25, 2018USD ($) | Jul. 02, 2018USD ($) | May 13, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 29, 2018USD ($) |
Proceeds from Long-term Lines of Credit | $ 147,854 | $ 80,642 | |||||||
Proceeds from Sale Leaseback Agreement | 329 | ||||||||
Principal Paid on Sale Leaseback Liabilities | $ 28 | ||||||||
Minimum [Member] | |||||||||
Sale Leaseback Transactions, Term | 3 years | ||||||||
Sale Leaseback Transactions, Implied Interest Rate | 7.00% | ||||||||
Maximum [Member] | |||||||||
Sale Leaseback Transactions, Term | 5 years | ||||||||
Sale Leaseback Transactions, Implied Interest Rate | 25.00% | ||||||||
Prior Parent of Veth Propulsion [Member] | |||||||||
Repayments of Debt | $ 1,865 | ||||||||
Bank of Montreal [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||||||||
Derivative, Notional Amount | $ 20,000 | ||||||||
Derivative, Maturity Date | Mar. 4, 2026 | ||||||||
Veth Propulsion [Member] | |||||||||
Payments to Acquire Businesses, Gross | 58,862 | $ 59,407 | |||||||
Line of Credit [Member] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 952 | $ 1,477 | |||||||
Debt, Weighted Average Interest Rate | 5.00% | 5.00% | |||||||
The 2018 Credit Agreement [Member] | |||||||||
Repayments of Debt | $ 32,210 | ||||||||
BMO [Member] | The 2018 Credit Agreement [Member] | |||||||||
Proceeds from Issuance of Debt | 60,729 | ||||||||
Debt Instrument, Percentage of Equity Interest in Certain Domestic Subsidiaries | 100.00% | ||||||||
Debt Instrument, Percentage of Equity Interest in Certain Foreign Subsidiaries | 65.00% | ||||||||
Debt Instrument, Collateral Percent of Letter of Credit Obligation Upon Occurrence of an Event Default | 105.00% | ||||||||
BMO [Member] | The 2018 Credit Agreement [Member] | Revolving Credit Facility [Member] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000 | ||||||||
Proceeds from Long-term Lines of Credit | 25,729 | ||||||||
Debt Instrument, Interest Rate During Period | 2.99% | ||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 47,324 | ||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 24,658 | ||||||||
BMO [Member] | The 2018 Credit Agreement [Member] | Term Loan [Member] | |||||||||
Debt Agreement, Maximum Borrowing Capacity | $ 20,000 | $ 35,000 | |||||||
Proceeds from Issuance of Debt | 9,151 | $ 35,000 | |||||||
Long-term Debt, Gross | $ 10,849 | ||||||||
Debt Instrument, Periodic Payment, Total | $ 500 | ||||||||
Debt Instrument, Covenant, Funded Debt to EBITDA Ratio | 3 | ||||||||
Debt Instrument, Covenant, Minimum Tangible Net Worth Plus Half of Net Income | $ 100,000 | $ 70,000 | |||||||
Debt Instrument, Interest Rate During Period | 4.71% | ||||||||
Debt Instrument, Maturity Date | Mar. 4, 2026 | Jan. 2, 2020 | |||||||
BMO [Member] | The 2018 Credit Agreement [Member] | Term Loan [Member] | Minimum [Member] | |||||||||
Debt Instrument, Covenant, Funded Debt to EBITDA Ratio | 3.5 | ||||||||
BMO [Member] | The 2018 Credit Agreement [Member] | Term Loan [Member] | Maximum [Member] | |||||||||
Debt Instrument, Covenant, Funded Debt to EBITDA Ratio | 3.25 | ||||||||
BMO [Member] | The 2018 Credit Agreement [Member] | Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | ||||||||
BMO [Member] | The 2018 Credit Agreement [Member] | Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.375% | ||||||||
BMO [Member] | The 2018 Credit Agreement [Member] | Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.375% |
Note I - Debt - Long-term Debt
Note I - Debt - Long-term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Long-term debt | $ 42,491 | $ 4,824 |
Less: current maturities | (2,000) | |
Total long-term debt | 40,491 | 4,824 |
Revolving Loan [Member] | ||
Long-term debt | 22,666 | 4,787 |
Term Loan [Member] | ||
Long-term debt | 19,500 | |
Other Long-Term Debt [Member] | ||
Long-term debt | $ 325 | $ 37 |
Note I - Debt - Schedule of Mat
Note I - Debt - Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
2020 | $ 2,000 | |
2021 | 2,161 | |
2022 | 2,081 | |
2023 | 24,709 | |
2024 | 2,016 | |
Thereafter | 9,524 | |
Total | $ 42,491 | $ 4,824 |
Note J - Lease Obligations (Det
Note J - Lease Obligations (Details Textual) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Operating Lease, Right-of-Use Asset | $ 14,138,000 | $ 6,527,000 |
Operating Lease, Liability, Total | 14,130,000 | 6,527,000 |
Finance Lease, Right-of-Use Asset | 545,000 | 11,000 |
Finance Lease, Liability, Total | $ 553,000 | $ 0 |
Note J - Lease Obligations - Fu
Note J - Lease Obligations - Future Minimum Rental Commitments Under Noncancellable Leases (Details) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
2020, Operating Leases | $ 3,186,000 | |
2020, Finance Leases | 136,000 | |
2021, Operating Leases | 2,489,000 | |
2021, Finance Leases | 136,000 | |
2022, Operating Leases | 1,950,000 | |
2022, Finance Leases | 136,000 | |
2023, Operating Leases | 1,722,000 | |
2023, Finance Leases | 132,000 | |
2024, Operating Leases | 1,532,000 | |
2024, Finance Leases | 112,000 | |
Thereafter, Operating Leases | 11,112,000 | |
Thereafter, Finance Leases | ||
Total future lease payments, Operating Leases | 21,991,000 | |
Total future lease payments, Finance Leases | 652,000 | |
Less: Amount representing interest, Operating Leases | (7,861,000) | |
Less: Amount representing interest, Finance Leases | (99,000) | |
Operating Lease, Liability, Total | 14,130,000 | $ 6,527,000 |
Finance Lease, Liability, Total | $ 553,000 | $ 0 |
Note J - Lease Obligations - Co
Note J - Lease Obligations - Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Amortization of right-of-use assets | $ 27 | $ 3 |
Interest on lease liabilities | 8 | 1 |
Operating lease cost | 3,348 | 2,462 |
Short-term lease cost | 40 | 39 |
Variable lease cost | 37 | 8 |
Total lease cost | 3,460 | 2,513 |
Less: Sublease income | (222) | (204) |
Net lease cost | $ 3,238 | $ 2,309 |
Note J - Lease Obligations - Ot
Note J - Lease Obligations - Other Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Operating cash flows from operating leases | $ 3,338 | $ 2,417 |
Operating cash flows from finance leases | 18 | 3 |
Financing cash flows from finance leases | 9 | 1 |
Right-of-use-assets obtained in exchange for lease obligations: Operating leases | 13,875 | 4,019 |
Right-of-use-assets obtained in exchange for lease obligations: Finance leases | $ 553 | |
Weighted average remaining lease term (years): Operating leases (Year) | 11 years 36 days | 5 years 219 days |
Weighted average remaining lease term (years): Finance lease (Year) | 4 years 292 days | 4 years |
Weighted average discount rate: Operating leases | 7.70% | 7.20% |
Weighted average discount rate: Finance leases | 7.30% | 3.90% |
Note K - Shareholders' Equity_2
Note K - Shareholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Sep. 25, 2018 | Mar. 29, 2019 | Jun. 30, 2019 | Jun. 30, 2018 |
Stock Issued During Period, Shares, New Issues | 1,533,334 | |||
Share Price | $ 22.50 | |||
Payments of Stock Underwriting Costs | $ 2,070 | |||
Payments of Stock Offering Expenses | 220 | |||
Proceeds from Issuance of Common Stock | $ 32,210 | $ 32,210 | ||
Common Stock, Shares, Outstanding, Ending Balance | 13,240,278 | 11,553,685 | ||
Treasury Stock, Shares, Ending Balance | 1,392,524 | 1,545,783 | ||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture, Total | 157,043 | 67,286 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 3,784 | 32,734 | ||
Treasury Stock, Shares, Acquired | 0 | 0 | ||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 315,000 | 315,000 | ||
Common Stock, Dividends, Per Share, Cash Paid | $ 0 | $ 0 | ||
Preferred Stock, Shares Authorized | 200,000 | 200,000 | ||
Preferred Stock, Shares Issued, Total | 0 | 0 | ||
Preferred Stock, Capital Shares Reserved for Future Issuance | 150,000 |
Note K - Shareholders' Equity -
Note K - Shareholders' Equity - Shareholders' Equity Reconciliation (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Translation adjustments | $ 4,439 | $ 7,085 |
Net loss on cash flow hedge derivatives, net of income taxes of $156 and $0, respectively | (509) | |
Benefit plan adjustments, net of income taxes of $12,707 and $11,494 respectively | (41,901) | (30,877) |
Accumulated other comprehensive loss | $ (37,971) | $ (23,792) |
Note K - Shareholders' Equity_3
Note K - Shareholders' Equity - Shareholders' Equity Reconciliation (Details) (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Unrealized loss on cash flow hedge, income taxes | $ 156 | $ 0 |
Tax effect on benefit plan adjustments | $ 12,707 | $ 11,494 |
Note K - Shareholders' Equity_4
Note K - Shareholders' Equity - Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Balance | $ 143,616 | $ 123,567 |
Release stranded tax effects | ||
Balance | 182,818 | 143,616 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||
Balance | 7,085 | 6,130 |
Other comprehensive income before reclassifications | (2,646) | 955 |
Amounts reclassified from accumulated other comprehensive income | ||
Net current period other comprehensive income | (2,646) | 955 |
Release stranded tax effects | ||
Balance | 4,439 | 7,085 |
Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | ||
Balance | (30,877) | (38,801) |
Other comprehensive income before reclassifications | (6,068) | 5,824 |
Amounts reclassified from accumulated other comprehensive income | 1,947 | 2,100 |
Net current period other comprehensive income | (11,024) | 7,924 |
Release stranded tax effects | (6,903) | |
Balance | (41,901) | (30,877) |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||
Balance | ||
Other comprehensive income before reclassifications | (509) | |
Amounts reclassified from accumulated other comprehensive income | ||
Net current period other comprehensive income | (509) | |
Release stranded tax effects | ||
Balance | $ (509) |
Note K - Shareholders' Equity_5
Note K - Shareholders' Equity - Reconciliation for the Reclassifications Out of Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Income tax expense | $ 3,711 | $ 4,773 | |
Net income | 10,796 | 9,647 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||
Actuarial losses | [1] | (2,710) | (3,053) |
Transition asset and prior service benefit | [1] | 176 | 103 |
Total before tax benefit | (2,534) | (2,950) | |
Income tax expense | 587 | 850 | |
Net income | $ (1,947) | $ (2,100) | |
[1] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note I "Pension and Other Postretirement Benefit Plans" for further details). |
Note L - Business Segments an_3
Note L - Business Segments and Foreign Operations (Details Textual) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Number of Reportable Segments | 2 | |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | ||
Number of Customers | 1 | |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Customer 1 [Member] | ||
Concentration Risk, Percentage | 10.00% |
Note L - Business Segments an_4
Note L - Business Segments and Foreign Operations - Net Sales by Product Group (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Net Sales | $ 302,663 | $ 240,733 |
Industrial [Member] | ||
Net Sales | 34,042 | 30,888 |
Land Based Transmissions [Member] | ||
Net Sales | 112,793 | 107,169 |
Marine and Propulsion Systems [Member] | ||
Net Sales | 150,237 | 96,785 |
Other [Member] | ||
Net Sales | $ 5,591 | $ 5,891 |
Note L - Business Segments an_5
Note L - Business Segments and Foreign Operations - Segment Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Net Sales | $ 302,663 | $ 240,733 |
Intra-segment sales | 34,410 | 31,655 |
Inter-segment sales | 49,836 | 28,683 |
Interest income | 43 | 55 |
Interest expense | 1,927 | 282 |
Income taxes | 3,711 | 4,773 |
Depreciation and amortization | 9,335 | 6,464 |
Net income attributable to Twin Disc | 10,673 | 9,528 |
Assets | 346,870 | 241,240 |
Expenditures for segment assets | 11,979 | 6,328 |
Manufacturing Segment [Member] | ||
Intra-segment sales | 20,384 | 22,912 |
Inter-segment sales | 46,078 | 26,074 |
Distribution Segment [Member] | ||
Intra-segment sales | 14,026 | 8,743 |
Inter-segment sales | 3,758 | 2,609 |
Operating Segments [Member] | ||
Net Sales | 386,909 | 301,071 |
Interest income | 1,180 | 34 |
Interest expense | 3,049 | 275 |
Income taxes | 8,292 | 16,370 |
Depreciation and amortization | 13,295 | 6,084 |
Net income attributable to Twin Disc | 25,310 | 23,866 |
Assets | 430,688 | 318,647 |
Expenditures for segment assets | 11,388 | 5,730 |
Operating Segments [Member] | Manufacturing Segment [Member] | ||
Net Sales | 280,428 | 216,383 |
Interest income | 1,154 | 16 |
Interest expense | 3,086 | 275 |
Income taxes | 7,939 | 15,782 |
Depreciation and amortization | 12,893 | 5,632 |
Net income attributable to Twin Disc | 25,062 | 22,799 |
Assets | 384,612 | 266,417 |
Expenditures for segment assets | 10,725 | 5,482 |
Operating Segments [Member] | Distribution Segment [Member] | ||
Net Sales | 106,481 | 84,688 |
Interest income | 26 | 18 |
Interest expense | (37) | |
Income taxes | 353 | 588 |
Depreciation and amortization | 402 | 452 |
Net income attributable to Twin Disc | 248 | 1,067 |
Assets | 46,076 | 52,230 |
Expenditures for segment assets | $ 663 | $ 248 |
Note L - Business Segments an_6
Note L - Business Segments and Foreign Operations - Reconciliation of Reportable Segment Net Sales and Net Earnings to Consolidated Totals (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Net Sales | $ 302,663 | $ 240,733 |
Net earnings attributable to Twin Disc | 10,673 | 9,528 |
Operating Segments [Member] | ||
Net Sales | 386,909 | 301,071 |
Net earnings attributable to Twin Disc | 25,310 | 23,866 |
Intersegment Eliminations [Member] | ||
Net Sales | (84,246) | (60,338) |
Corporate, Non-Segment [Member] | ||
Net earnings attributable to Twin Disc | $ (14,637) | $ (14,338) |
Note L - Business Segments an_7
Note L - Business Segments and Foreign Operations - Reconciliation of Reportable Segments Other Significant Reconciling Items to Consolidated Totals (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Interest income | $ 43 | $ 55 |
Interest expense | 1,927 | 282 |
Income taxes | 3,711 | 4,773 |
Depreciation and amortization | 9,335 | 6,464 |
Assets | 346,870 | 241,240 |
Expenditures for segment assets | 11,979 | 6,328 |
Operating Segments [Member] | ||
Interest income | 1,180 | 34 |
Interest expense | 3,049 | 275 |
Income taxes | 8,292 | 16,370 |
Depreciation and amortization | 13,295 | 6,084 |
Assets | 430,688 | 318,647 |
Expenditures for segment assets | 11,388 | 5,730 |
Segment Reconciling Items [Member] | ||
Interest income | (1,137) | 21 |
Interest expense | (1,122) | 7 |
Income taxes | (4,581) | (11,597) |
Depreciation and amortization | 317 | 380 |
Assets | (83,818) | (77,407) |
Expenditures for segment assets | $ 591 | $ 598 |
Note L - Business Segments an_8
Note L - Business Segments and Foreign Operations - Geographic Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Net Sales | $ 302,663 | $ 240,733 |
Long-lived assets | 75,016 | 59,317 |
Reportable Geographical Components [Member] | UNITED STATES | ||
Net Sales | 132,467 | 141,705 |
Long-lived assets | 41,233 | 37,765 |
Reportable Geographical Components [Member] | NETHERLANDS | ||
Net Sales | 31,521 | 4,755 |
Long-lived assets | 13,186 | |
Reportable Geographical Components [Member] | CHINA | ||
Net Sales | 28,772 | 11,664 |
Reportable Geographical Components [Member] | BELGIUM | ||
Long-lived assets | 8,595 | 7,576 |
Reportable Geographical Components [Member] | ITALY | ||
Net Sales | 12,755 | 12,551 |
Long-lived assets | 1,894 | 2,230 |
Reportable Geographical Components [Member] | SWITZERLAND | ||
Long-lived assets | 6,810 | 6,841 |
Reportable Geographical Components [Member] | AUSTRALIA | ||
Net Sales | 12,463 | 12,479 |
Reportable Geographical Components [Member] | CANADA | ||
Net Sales | 10,464 | 13,397 |
Reportable Geographical Components [Member] | Other Countries [Member] | ||
Net Sales | 74,221 | 44,182 |
Long-lived assets | $ 3,298 | $ 4,905 |
Note M - Stock-based Compensa_3
Note M - Stock-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | 21 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 29, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 3,784 | 32,734 | |
Performance Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 75,006 | 69,180 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 50,004 | 54,854 | |
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, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 96,124 | 145,718 | |
Share-based Payment Arrangement, Expense | $ 1,196 | $ 574 | |
Share-based Payment Arrangement, Expense, Tax Benefit | $ 278 | 172 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Ending Balance | $ 20.38 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 1,073 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 1,228 | $ 272 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 43,305 | 85,327 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 172,637 | 237,657 | |
Share-based Payment Arrangement, Expense | $ 1,096 | $ 1,488 | |
Share-based Payment Arrangement, Expense, Tax Benefit | 255 | 446 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | 757 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 2,391 | $ 1,809 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 3,784 | 32,734 | |
Share-based Payment Arrangement, Nonvested Award, 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 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 37,950 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 37,950 | ||
Share-based Payment Arrangement, Expense | $ 299 | ||
Share-based Payment Arrangement, Expense, Tax Benefit | $ 69 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Ending Balance | $ 25.77 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 679 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 3 years | ||
Non-qualified Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 3,600 | 7,200 | |
Stock Options [Member] | |||
Share-based Payment Arrangement, Expense | $ 0 | $ 0 | |
Percentage of Options Vested on Adoption of Statement | 100.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 47 | $ 38 | |
The 2018 Long-Term Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 850,000 | ||
Stock Incentive Plan for Non-employee Directors 2010 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 250,000 | ||
Long-term Incentive Compensation Plan 2010 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 650,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||
Long-term Incentive Compensation Plan 2010 [Member] | Incentive Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | ||
Percentage of Combined Voting Power of Stock Owned by Optionee | 10.00% | ||
Percentage of Grant Date Fair Market Value Specified as Price of Incentive Stock Options Based on Condition, Minimum | 110.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 0 | 0 | |
Stock Incentive Plan for Non-employee Directors 2004 [Member] | Non-qualified Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 3,600 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures, Total | 0 | 0 |
Note M - Stock-based Compensa_4
Note M - Stock-based Compensation - Shares Available for Future Options (Details) - Stock Options [Member] - shares | Jun. 30, 2019 | Jun. 30, 2018 |
The 2018 Long-Term Incentive Plan [Member] | ||
Shares Available for Grant (in shares) | 742,325 | |
Stock Incentive Plan for Non-employee Directors 2010 [Member] | ||
Shares Available for Grant (in shares) | 61,354 | 80,938 |
Note M - Stock-based Compensa_5
Note M - Stock-based Compensation - Stock Option Transactions (Details) - Non-qualified Stock Options [Member] | 12 Months Ended |
Jun. 30, 2019USD ($)$ / sharesshares | |
Options outstanding (in shares) | 7,200 |
Options outstanding, weighted average price (in dollars per share) | $ / shares | $ 12.31 |
Options Granted (in shares) | |
Granted, weighted average price (in shares) | |
Options Canceled/expired (in shares) | |
Canceled/expired, weighted average price (in dollars per share) | $ / shares | |
Options Exercised (in shares) | (3,600) |
Exercised, weighted average price (in dollars per share) | $ / shares | $ 10.01 |
Options outstanding (in shares) | 3,600 |
Options outstanding, weighted average price (in dollars per share) | $ / shares | $ 14.61 |
Options outstanding, weighted average remaining contractual life (Year) | 1 year |
Options outstanding, aggregate intrinsic value | $ | $ 1,800 |
Note N - Engineering and Deve_2
Note N - Engineering and Development Costs (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Research and Development Expense, Total | $ 2,385 | $ 1,610 |
Engineering and Development Costs | $ 12,594 | $ 9,932 |
Note O - Pension and Other Po_3
Note O - Pension and Other Postretirement Benefit Plans (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Defined Benefit Plan, Cost of Premium for Health Coverage Plan, Percentage | 100.00% | |
Defined Benefit Plan, Accumulated Benefit Obligation | $ 107,322 | $ 105,012 |
Defined Benefit Plan, Weighted Average Healthcare Cost, Trend Rate | 6.50% | |
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 5.00% | |
Defined Benefit Plan, Percentage of Increase in Assumed HealthCare Cost Trend Rate | 1.00% | |
Defined Benefit Plan, Effect of One Percentage Point Increase on Accumulated Postretirement Benefit Obligation | $ 97 | |
Defined Benefit Plan, Effect of One Percentage Point Increase on Service and Interest Cost Components | $ 4 | |
Defined Benefit Plan, Percentage of Decrease in Assumed Healthcare Cost Trend Rate | 1.00% | |
Defined Benefit Plan, Effect of One Percentage Point Decrease on Accumulated Postretirement Benefit Obligation | $ 85 | |
Defined Benefit Plan, Effect of One Percentage Point Decrease on Service and Interest Cost Components | $ 4 | |
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 100.00% | 100.00% |
Defined Benefit Plan, Expected Long-term Return on Plan Assets | 6.25% | |
Defined Contribution Plan, Cost | $ 2,276 | $ 1,935 |
Pension Plan [Member] | ||
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year | $ 1,936 | |
Common Stock Held by U.S Pension Plans [Member] | ||
Defined Benefit Plan, Plan Assets, Employer, Related Party, Number of Shares | 98,211 | 98,211 |
Defined Benefit Plan, Plan Assets, Employer, Related Party, Amount | $ 1,483 | $ 2,438 |
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 1.70% | 2.70% |
Note O - Pension and Other Po_4
Note O - Pension and Other Postretirement Benefit Plans - Net Funded Status of Pension and Postretirement Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Net amount recognized | $ 41,901 | $ 30,877 |
Pension Plan [Member] | ||
Benefit obligation, beginning of year | 105,012 | 118,170 |
Service cost | 795 | 861 |
Interest cost | 4,020 | 3,979 |
Actuarial loss (gain) | 6,718 | (8,690) |
Contributions by plan participants | 103 | 105 |
Benefits paid | (9,326) | (9,413) |
Benefit obligation, end of year | 107,322 | 105,012 |
Fair value of assets, Balance | 90,258 | 94,372 |
Actual return on plan assets | 4,125 | 2,894 |
Employer contribution | 2,131 | 2,300 |
Contributions by plan participants | 103 | 105 |
Benefits paid | (9,326) | (9,413) |
Fair value of assets, Balance | 87,291 | 90,258 |
Funded status | (20,031) | (14,754) |
Other assets - noncurrent | 3 | 157 |
Accrued liabilities - current | (645) | (679) |
Accrued retirement benefits - noncurrent | (19,389) | (14,232) |
Net amount recognized | (20,031) | (14,754) |
Net transition obligation | 178 | 204 |
Prior service cost | 144 | 360 |
Actuarial net loss | 42,185 | 31,146 |
Net amount recognized | 42,507 | 31,710 |
Other Postretirement Benefits Plan [Member] | ||
Benefit obligation, beginning of year | 8,077 | 11,574 |
Service cost | 19 | 20 |
Interest cost | 305 | 325 |
Actuarial loss (gain) | 18 | (2,608) |
Contributions by plan participants | 389 | 440 |
Benefits paid | (1,357) | (1,674) |
Benefit obligation, end of year | 7,451 | 8,077 |
Fair value of assets, Balance | ||
Actual return on plan assets | ||
Employer contribution | 968 | 1,234 |
Contributions by plan participants | 389 | 440 |
Benefits paid | (1,357) | (1,674) |
Fair value of assets, Balance | ||
Funded status | (7,451) | (8,077) |
Other assets - noncurrent | ||
Accrued liabilities - current | (962) | (1,241) |
Accrued retirement benefits - noncurrent | (6,489) | (6,836) |
Net amount recognized | (7,451) | (8,077) |
Net transition obligation | ||
Prior service cost | (908) | |
Actuarial net loss | 302 | (833) |
Net amount recognized | $ (606) | $ (833) |
Note O - Pension and Other Po_5
Note O - Pension and Other Postretirement Benefit Plans - Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized Over Next Fiscal Year (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Pension Plan [Member] | |
Net transition obligation | $ 34 |
Prior service cost | 45 |
Actuarial net loss | 3,134 |
Net amount to be recognized | 3,213 |
Other Postretirement Benefits Plan [Member] | |
Net transition obligation | |
Prior service cost | (275) |
Actuarial net loss | |
Net amount to be recognized | $ (275) |
Note O - Pension and Other Po_6
Note O - Pension and Other Postretirement Benefit Plans - Information for Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Projected and accumulated benefit obligation | $ 102,879 | $ 100,699 |
Fair value of plan assets | $ 82,845 | $ 85,788 |
Note O - Pension and Other Po_7
Note O - Pension and Other Postretirement Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Pension Plan [Member] | ||
Service cost | $ 792 | $ 868 |
Interest cost | 4,019 | 3,981 |
Expected return on plan assets | (5,238) | (6,041) |
Amortization of transition obligation | 34 | 36 |
Amortization of prior service cost | 64 | 67 |
Amortization of actuarial net loss | 2,710 | 3,021 |
Net periodic benefit cost | 2,381 | 1,932 |
Other Postretirement Benefits Plan [Member] | ||
Service cost | 18 | 20 |
Interest cost | 304 | 325 |
Amortization of prior service cost | (274) | (206) |
Amortization of actuarial net loss | 32 | |
Net periodic benefit cost | $ 48 | $ 171 |
Note O - Pension and Other Po_8
Note O - Pension and Other Postretirement Benefit Plans - Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Pension Plan [Member] | ||
Net loss | $ 8,098 | $ (5,643) |
Prior service cost | (211) | |
Amortization of transition asset | (34) | (34) |
Amortization of prior service (cost) benefit | (64) | (67) |
Amortization of net (loss) gain | (2,711) | (2,952) |
Total recognized in other comprehensive income | 5,078 | (8,696) |
Net periodic benefit cost | 2,381 | 1,932 |
Total recognized in net periodic benefit cost and other comprehensive income | 7,459 | (6,764) |
Amortization of transition asset | (34) | (34) |
Amortization of net (loss) gain | (2,711) | (2,952) |
Net periodic benefit cost | 2,381 | 1,932 |
Other Postretirement Benefits Plan [Member] | ||
Net loss | 18 | (940) |
Prior service cost | (1,668) | |
Amortization of transition asset | ||
Amortization of prior service (cost) benefit | 275 | 206 |
Amortization of net (loss) gain | (32) | |
Total recognized in other comprehensive income | 293 | (2,434) |
Net periodic benefit cost | 48 | 171 |
Total recognized in net periodic benefit cost and other comprehensive income | 341 | (2,263) |
Amortization of transition asset | ||
Amortization of net (loss) gain | (32) | |
Net periodic benefit cost | $ 48 | $ 171 |
Note O - Pension and Other Po_9
Note O - Pension and Other Postretirement Benefit Plans - Schedule of Assumptions (Details) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Pension Plan [Member] | ||
Discount rate | 3.22% | 4.01% |
Expected return on plan assets | 6.04% | 6.74% |
Discount rate | 4.01% | 3.51% |
Expected return on plan assets | 6.74% | 6.68% |
Other Postretirement Benefits Plan [Member] | ||
Discount rate | 3.15% | 4.09% |
Expected return on plan assets | ||
Discount rate | 4.09% | 3.41% |
Expected return on plan assets |
Note O - Pension and Other P_10
Note O - Pension and Other Postretirement Benefit Plans - Pension Plan Weighted-Average Asset Allocations (Details) | Jun. 30, 2019 | Jun. 30, 2018 |
Target Allocation | 100.00% | |
Actual Allocation | 100.00% | 100.00% |
Equity Securities [Member] | ||
Target Allocation | 51.00% | |
Actual Allocation | 49.00% | 51.00% |
Debt Securities [Member] | ||
Target Allocation | 40.00% | |
Actual Allocation | 42.00% | 39.00% |
Real Estate [Member] | ||
Target Allocation | 9.00% | |
Actual Allocation | 9.00% | 10.00% |
Note O - Pension and Other P_11
Note O - Pension and Other Postretirement Benefit Plans - Plan Assets Using Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value, Inputs, Level 3 [Member] | ||||
Plan Assets | $ 6,171 | $ 6,113 | $ 7,779 | |
Pension Plan [Member] | ||||
Plan Assets | 87,291 | 90,258 | $ 94,372 | |
Pension Plan [Member] | Fair Value, Inputs, Level 1, 2 and 3 [Member] | ||||
Plan Assets | 33,301 | 35,634 | ||
Pension Plan [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Plan Assets | 27,130 | 29,521 | ||
Pension Plan [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Plan Assets | ||||
Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Plan Assets | 6,171 | 6,113 | ||
Pension Plan [Member] | Fair Value Measured at Net Asset Value Per Share [Member] | ||||
Plan Assets | [1] | 53,990 | 54,624 | |
Cash and Cash Equivalents [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 1, 2 and 3 [Member] | ||||
Plan Assets | 971 | 1,156 | ||
Cash and Cash Equivalents [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Plan Assets | 971 | 1,156 | ||
Cash and Cash Equivalents [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Plan Assets | ||||
Cash and Cash Equivalents [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Plan Assets | ||||
Company Common Stock [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 1, 2 and 3 [Member] | ||||
Plan Assets | [2] | 1,483 | 2,438 | |
Company Common Stock [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Plan Assets | [2] | 1,483 | 2,438 | |
Company Common Stock [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Plan Assets | [2] | |||
Company Common Stock [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Plan Assets | [2] | |||
Common Stock [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 1, 2 and 3 [Member] | ||||
Plan Assets | [2] | 16,713 | 17,373 | |
Common Stock [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Plan Assets | [2] | 16,713 | 17,373 | |
Common Stock [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Plan Assets | [2] | |||
Common Stock [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Plan Assets | [2] | |||
Mutual Fund [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 1, 2 and 3 [Member] | ||||
Plan Assets | [3] | 7,963 | 8,554 | |
Mutual Fund [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Plan Assets | [3] | 7,963 | 8,554 | |
Mutual Fund [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Plan Assets | [3] | |||
Mutual Fund [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Plan Assets | [3] | |||
Annuity Contracts [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 1, 2 and 3 [Member] | ||||
Plan Assets | [4] | 6,171 | 6,113 | |
Annuity Contracts [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Plan Assets | [4] | |||
Annuity Contracts [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Plan Assets | [4] | |||
Annuity Contracts [Member] | Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Plan Assets | [4] | 6,171 | 6,113 | |
Investments Measured at Net Asset Value, Fixed Income Funds [Member] | Pension Plan [Member] | Fair Value Measured at Net Asset Value Per Share [Member] | ||||
Plan Assets | 33,568 | 31,852 | ||
Investments Measured at Net Asset Value, Equity Securities [Member] | Pension Plan [Member] | Fair Value Measured at Net Asset Value Per Share [Member] | ||||
Plan Assets | 3,168 | 3,294 | ||
Investments Measured at Net Asset Value, Real Estate [Member] | Pension Plan [Member] | Fair Value Measured at Net Asset Value Per Share [Member] | ||||
Plan Assets | 7,069 | 8,218 | ||
Investments Measured at Net Asset Value, Hedge Funds [Member] | Pension Plan [Member] | Fair Value Measured at Net Asset Value Per Share [Member] | ||||
Plan Assets | $ 10,185 | $ 11,260 | ||
[1] | In accordance with ASC 820-10, certain investments that were measured at net asset value per share (or its equivalent) have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the fair value of plan assets at the end of the year. | |||
[2] | Common stock is valued at the closing price reported on the active market on which the individual securities are traded. These securities include U.S. equity securities invested in companies that are traded on exchanges inside the U.S. and international equity securities invested in companies that are traded on exchanges outside the U.S. | |||
[3] | Mutual funds are valued at the daily closing price as reported by the fund. Mutual funds held by the Company's funded benefit plans are open-end mutual funds that are registered with the Securities Exchange Commission. These funds are required to publish their daily net asset value ("NAV") and to transact at that price. The mutual funds held by the Company's funded benefit plans are deemed to be actively traded. | |||
[4] | Annuity contracts represent contractual agreements in which payments are made to an insurance company, which agrees to pay out an income or lump sum amount at a later date. Annuity contracts are valued at the net present value of future cash flows. |
Note O - Pension and Other P_12
Note O - Pension and Other Postretirement Benefit Plans - Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Fair value of assets, Balance | $ 6,113 | $ 7,779 |
Relating to assets still held at reporting date | 216 | (58) |
Purchases, sales and settlements, net | (158) | (1,608) |
Fair value of assets, Balance | $ 6,171 | $ 6,113 |
Note O - Pension and Other P_13
Note O - Pension and Other Postretirement Benefit Plans - Defined Benefit Plan Estimated Future Benefit Payments (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Pension Plan [Member] | |
2020 - Pension Benefits | $ 9,411 |
2021 - Pension Benefits | 8,336 |
2022 - Pension Benefits | 8,138 |
2023 - Pension Benefits | 7,737 |
2024 - Pension Benefits | 7,395 |
Years 2025 - 2029 - Pension Benefits | 32,656 |
Other Postretirement Benefits Plan [Member] | |
2020 - Other Postretirement Benefits, Gross Benefits | 977 |
2021 - Other Postretirement Benefits, Gross Benefits | 905 |
2022 - Other Postretirement Benefits, Gross Benefits | 825 |
2023 - Other Postretirement Benefits, Gross Benefits | 753 |
2024 - Other Postretirement Benefits, Gross Benefits | 681 |
Years 2025 - 2029 - Other Postretirement Benefits, Gross Benefits | $ 2,549 |
Note P - Income Taxes (Details
Note P - Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 27.56% | |
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 3,786 | |
Transitional Income Tax , Amount | $ 0 | |
Undistributed Earnings of Foreign Subsidiaries | 6,208 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 938 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total | $ 148 | $ 93 |
Foreign Tax Authority [Member] | ||
Open Tax Year | 2015 2016 2017 2018 2019 | |
Domestic Tax Authority [Member] | ||
Open Tax Year | 2015 2016 2017 2018 2019 | |
State and Local Jurisdiction [Member] | Wisconsin Department of Revenue [Member] | ||
Open Tax Year | 2010 2011 2012 2013 |
Note P - Income Taxes - Domesti
Note P - Income Taxes - Domestic and Foreign Earnings Before Income Taxes and Minority Interest (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
United States | $ 7,059 | $ 8,679 |
Foreign | 7,448 | 5,741 |
(Loss) earnings before income taxes and noncontrolling interest | $ 14,507 | $ 14,420 |
Note P - Income Taxes - Provisi
Note P - Income Taxes - Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Currently payable: | ||
Federal | $ 248 | $ 234 |
State | 261 | 135 |
Foreign | (3,644) | 1,400 |
Current | (3,135) | 1,769 |
Deferred: | ||
Federal | 920 | 5,529 |
State | (7) | 167 |
Foreign | 5,933 | (2,692) |
Deferred | 6,846 | 3,004 |
Income tax (benefit) expense | $ 3,711 | $ 4,773 |
Note P - Income Taxes - Compone
Note P - Income Taxes - Components of Net Deferred Tax Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Retirement plans and employee benefits | $ 7,732 | $ 6,910 |
Foreign tax credit carryforwards | 6,296 | 6,866 |
Federal tax credits | 1,057 | 774 |
State net operating loss and other state credit carryforwards | 1,269 | 1,190 |
Inventory | 757 | 1,259 |
Reserves | 765 | 1,099 |
Foreign NOL carryforwards | 775 | 2,940 |
Accruals | 339 | 324 |
Right of use assets - leases | 3,691 | |
Other assets | 656 | 403 |
Gross deferred tax assets | 23,337 | 21,765 |
Property, plant and equipment | 3,432 | 3,473 |
Intangibles | 5,345 | 1,209 |
Long term lease obligations | 3,617 | |
Other liabilities | 194 | 230 |
Gross deferred tax liabilities | 12,588 | 4,912 |
Valuation allowance | ||
Total net deferred tax assets | $ 10,749 | $ 16,853 |
Note P - Income Taxes - Reconci
Note P - Income Taxes - Reconciliation of U.S. Federal Income Taxes to Actual Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
U.S. federal income tax at 21% (27.56% in 2018) | $ 3,046 | $ 3,974 |
Increases (reductions) in tax resulting from: | ||
Foreign tax items | 281 | 675 |
State taxes | 209 | 272 |
Valuation allowance | (3,803) | |
Change in prior year estimate | (50) | (89) |
Research and development tax credits | (306) | (162) |
Section 199 deduction | (114) | |
Unrecognized tax benefits | 158 | (42) |
Stock compensation | (153) | (114) |
Rate changes | 15 | 3,786 |
Deferred tax basis adjustments | (111) | 431 |
Executive compensation | 291 | |
GILTI inclusion | 284 | |
FDII deduction | (74) | |
Other, net | 121 | (41) |
Income tax (benefit) expense | $ 3,711 | $ 4,773 |
Note P - Income Taxes - Recon_2
Note P - Income Taxes - Reconciliation of U.S. Federal Income Taxes to Actual Income Taxes (Details) (Parentheticals) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Federal Income Tax | 21.00% | 27.56% |
Note P - Income Taxes - Recon_3
Note P - Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Unrecognized tax benefits, beginning of year | $ 816 | $ 827 |
Additions based on tax positions related to the prior year | 31 | |
Additions based on tax positions related to the current year | 91 | 303 |
Reductions based on tax positions related to the prior year | (9) | |
Subtractions due to statutes closing | (105) | |
Settlements with taxing authorities | (200) | |
Unrecognized tax benefits, end of year | $ 938 | $ 816 |
Note R - Restructuring of Ope_3
Note R - Restructuring of Operations and Other Operating Income (Details Textual) $ in Thousands | May 13, 2019USD ($)shares | Mar. 04, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jul. 02, 2018USD ($) |
Restructuring Charges, Total | $ 1,179 | $ 3,398 | $ 10,452 | |||
Restructuring and Related Cost, Number of Positions Eliminated | 176 | |||||
Veth Propulsion [Member] | ||||||
Business Combination, Contingent Consideration, Liability, Total | $ 2,921 | |||||
Stock Issued During Period, Shares, Acquisitions | shares | 139,347 | |||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 1,991 | |||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ 809 | |||||
Mill Log Business [Member] | Discontinued Operations, Disposed of by Sale [Member] | ||||||
Disposal Group, Including Discontinued Operation, Operating Income (Loss) | (1,374) | $ 1,139 | ||||
Disposal Group, Including Discontinued Operation, Inventory | $ 6,298 | |||||
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment, Current | 592 | |||||
Disposal Group, Including Discontinued Operation, Consideration | 7,658 | |||||
Proceeds from Sales of Business, Affiliate and Productive Assets | 5,158 | |||||
Disposal Group, Including Discontinued Operation, Consideration, Receivable | $ 2,500 | |||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax, Total | $ 768 |
Note R - Restructuring of Ope_4
Note R - Restructuring of Operations and Other Operating Income - Roll-forward of Restructuring Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | 49 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | |
Accrued restructuring liability | $ 90 | $ 92 | |
Additions | 1,179 | 3,398 | $ 10,452 |
Payments and adjustments | (1,269) | (3,400) | |
Accrued restructuring liability | $ 90 |
Note S - Earnings Per Share (De
Note S - Earnings Per Share (Details Textual) - shares | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Performance Shares [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 80,164 | 61,286 |
Restricted Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 172,637 | 237,657 |
Restricted Stock Units (RSUs) [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 13,123 | |
Share-based Payment Arrangement, Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3,483 | 3,568 |
Note S - Earnings Per Share - C
Note S - Earnings Per Share - Components of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Basic: | ||
Net income | $ 10,796 | $ 9,647 |
Less: Net earnings attributable to noncontrolling interest | (123) | (119) |
Less: Undistributed earnings attributable to unvested shares | (148) | (222) |
Net income available to Twin Disc shareholders | $ 10,525 | $ 9,306 |
Weighted average shares outstanding - basic (in shares) | 12,571 | 11,295 |
Basic Income Per Share: | ||
Net income per share - basic (in dollars per share) | $ 0.84 | $ 0.82 |
Diluted: | ||
Net income | $ 10,796 | $ 9,647 |
Less: Net earnings attributable to noncontrolling interest | (123) | (119) |
Less: Undistributed earnings attributable to unvested shares | (148) | (222) |
Net income available to Twin Disc shareholders | $ 10,525 | $ 9,306 |
Weighted average shares outstanding - basic (in shares) | 12,571 | 11,295 |
Effect of dilutive stock awards (in shares) | 111 | 100 |
Weighted average shares outstanding - diluted (in shares) | 12,682 | 11,395 |
Diluted Income Per Share: | ||
Net income per share - diluted (in dollars per share) | $ 0.83 | $ 0.82 |
Note T - Derivative Financial_3
Note T - Derivative Financial Intruments (Details Textual) xbrli-pure in Thousands | 12 Months Ended | |
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax, Total | $ (509,000) | $ 0 |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ (122,000) | |
Foreign Exchange Forward [Member] | ||
Derivative, Number of Instruments Held, Total | 0 | 0 |
Note T- Derivative Financial In
Note T- Derivative Financial Instruments - Fair Value of Derivative Instruments (Details) - Interest Rate Swap [Member] - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Accrued Liabilities [Member] | ||
Derivative Liabilities, Current | $ 122 | |
Other Noncurrent Liabilities [Member] | ||
Derivative Liabilities, Noncurrent | $ 544 |
Note T - Derivative Financial_4
Note T - Derivative Financial Instruments - Impact of the Company’s Derivative Instruments on the Consolidated Statement of Operations and Comprehensive Income (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Unrealized loss on cash flow hedge, net of income taxes of $156 and $0 | $ (509,000) | $ 0 |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Unrealized loss on cash flow hedge, net of income taxes of $156 and $0 | (509,000) | |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Interest Expense [Member] | ||
Derivative liabilities | 1,000 | |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Other Nonoperating Income (Expense) [Member] | ||
Derivative liabilities | $ 4,000 | $ (65,000) |
Schedule II - Valuation and Q_3
Schedule II - Valuation and Qualifying Accounts - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | |||
Balance at Beginning of Period | $ 1,478 | $ 1,519 | |
Charged to Costs and Expenses | 236 | 280 | |
Deductions | [1] | 132 | 321 |
Balance at End of Period | 1,582 | 1,478 | |
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member] | |||
Balance at Beginning of Period | 3,803 | ||
Charged to Costs and Expenses | |||
Deductions | [1] | 3,803 | |
Balance at End of Period | |||
[1] | Activity primarily represents amounts written-off during the year, along with other adjustments (primarily foreign currency translation adjustments). |