K.	Shareholders’ Equity

The Company from time to time makes open market purchases of its common stock under authorizations given to it by the Board of Directors, of which

315

shares as of

March

31,

2017

remain authorized for purchase. The Company did

not

make any open market purchases of its shares during the quarters and

three

quarters ended

March

31,

2017

and

March

25,

2016.

The following is a reconciliation of the Company’s equity balances for the

first

three

fiscal quarters of

2017

and

2016:

	Twin Disc, Inc. Shareholders’ Equity
							Accumulated
							Other						Non-
	Common			Retained			Comprehensive			Treasury			Controlling			Total
	Stock			Earnings			Income (Loss)			Stock			Interest			Equity
Balance, June 30, 2016	$	11,761		$	175,662		$	(44,143	)	$	(26,790	)	$	563		$	117,053
Net (loss) income					(7,456	)								166			(7,290	)
Translation adjustments								(2,439	)					(17	)		(2,456	)
Benefit plan adjustments, net of tax								2,104									2,104
Cash dividends														(109	)		(109	)
Compensation expense and tax shortfall		1,004															1,004
Shares (acquired) issued, net		(2,725	)								2,585						(140	)
Balance, March 31, 2017	$	10,040		$	168,206		$	(44,478	)	$	(24,205	)	$	603		$	110,166

	Twin Disc, Inc. Shareholders’ Equity
							Accumulated
							Other						Non-
	Common			Retained			Comprehensive			Treasury			Controlling			Total
	Stock			Earnings			Income (Loss)			Stock			Interest			Equity
Balance, June 30, 2015	$	12,259		$	190,807		$	(35,481	)	$	(28,057	)	$	639		$	140,167
Net (loss) income					(7,586	)								91			(7,495	)
Translation adjustments								(2,179	)					(10	)		(2,189	)
Benefit plan adjustments, net of tax								2,215									2,215
Cash dividends					(2,041	)								(192	)		(2,233	)
Compensation expense and tax shortfall		715															715
Shares (acquired) issued, net		(1,444	)								1,267						(177	)
Balance, March 25, 2016	$	11,530		$	181,180		$	(35,445	)	$	(26,790	)	$	528		$	131,003

Reconciliations for the changes in accumulated other comprehensive income (loss), net of tax, by component for the quarters ended

September

30,

2016,

December

30,

2016,

and

March

31,

2017,

and

September

25,

2015,

December

25,

2015,

and

March

25,

2016

are as follows:

	Translation			Benefit Plan
	Adjustment			Adjustment
Balance at June 30, 2016	$	5,158		$	(49,301	)
Translation adjustment during the quarter		627			-
Amounts reclassified from accumulated other comprehensive income		-			672
Net current period other comprehensive income		627			672
Balance at September 30, 2016	$	5,785		$	(48,629	)
Translation adjustment during the quarter		(4,208	)		-
Amounts reclassified from accumulated other comprehensive income		-			750
Net current period other comprehensive (loss) income		(4,208	)		750
Balance at December 30, 2016	$	1,577		$	(47,879	)
Translation adjustment during the quarter		1,142			-
Amounts reclassified from accumulated other comprehensive income		-			682
Net current period other comprehensive income		1,142			682
Balance at March 31, 2017	$	2,719		$	(47,197	)

	Translation			Benefit Plan
	Adjustment			Adjustment
Balance at June 30, 2015	$	6,740		$	(42,221	)
Translation adjustment during the quarter		(1,787	)		-
Amounts reclassified from accumulated other comprehensive income		-			739
Net current period other comprehensive (loss) income		(1,787	)		739
Balance at September 25, 2015	$	4,953		$	(41,482	)
Translation adjustment during the quarter		(2,331	)		-
Amounts reclassified from accumulated other comprehensive income		-			805
Net current period other comprehensive (loss) income		(2,331	)		805
Balance at December 25, 2015	$	2,622		$	(40,677	)
Translation adjustment during the quarter		1,939			-
Amounts reclassified from accumulated other comprehensive income		-			671
Net current period other comprehensive income		1,939			671
Balance at March 25, 2016	$	4,561		$	(40,006	)

Reconciliation for the reclassifications out of accumulated other comprehensive income (loss), net of tax for the quarter and

three

quarters ended

March

31,

2017

are as follows:

	Amount Reclassified			Amount Reclassified
	Quarter Ended			Three Quarters Ended
	March 31, 2017			March 31, 2017
Amortization of benefit plan items
Actuarial losses	$	1,071	(a)	$	3,271	(a)
Transition asset and prior service benefit		9	(a)		29	(a)
Total before tax benefit		1,080			3,300
Tax benefit		398			1,196
Total reclassification net of tax	$	682		$	2,104

(a)

These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note G "Pension and Other Postretirement Benefit Plans" for further details).

Reconciliation for the reclassifications out of accumulated other comprehensive income (loss), net of tax for the quarter and

three

quarters ended

March

25,

2016

is as follows:

	Amount Reclassified			Amount Reclassified
	Quarter Ended			Three Quarters Ended
	March 25, 2016			March 25, 2016
Amortization of benefit plan items
Actuarial losses	$	906	(a)	$	3,324	(a)
Transition asset and prior service benefit		8	(a)		25	(a)
Total before tax benefit		914			3,349
Tax benefit		243			1,134
Total reclassification net of tax	$	671		$	2,215

(a)

These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note G "Pension and Other Postretirement Benefit Plans" for further details).