Note P - Impact of Accounting Method Change (Tables)

6 Months Ended

Dec. 29, 2023

Notes Tables

Accounting Standards Update and Change in Accounting Principle [Table Text Block]

	For the Quarter Ended									For the Two Quarters Ended
	December 30, 2022									December 30, 2022
	As Computed Under Previous Method			Effect of Accounting Change			As Reported Under New Method			As Computed Under Previous Method			Effect of Accounting Change			As Reported Under New Method
Net sales	$	63,351		$	-		$	63,351		$	119,264		$	-		$	119,264
Cost of goods sold		46,328			-			46,328			88,944			-			88,944
Gross profit		17,023			-			17,023			30,320			-			30,320
Marketing, engineering and administrative expenses		15,983			-			15,983			31,063			-			31,063
Restructuring expenses		164			-			164			174			-			174
Other operating income		(4,150	)		-			(4,150	)		(4,150	)		-			(4,150	)
Income from operations		5,026			-			5,026			3,233			-			3,233
Other expense (income):
Interest expense		594			-			594			1,160			-			1,160
Other expense (income), net		789			(607	)		182			1,050			(1,214	)		(164	)
		1,383			(607	)		776			2,210			(1,214	)		996
Income before income taxes and noncontrolling interest		3,643			607			4,250			1,023			1,214			2,237
Income tax expense		2,489			-			2,489			1,801			-			1,801
Net income (loss)		1,154			607			1,761			(778	)		1,214			436
Less: Net earnings attributable to noncontrolling interest, net of tax		(15	)		-			(15	)		(112	)		-			(112	)
Net income (loss) attributable to Twin Disc	$	1,139		$	607		$	1,746		$	(890	)	$	1,214		$	324
Income (loss) per share data:
Basic income (los)s per share attributable to Twin Disc common shareholders	$	0.08		$	0.05		$	0.13		$	(0.07	)	$	0.09		$	0.02
Diluted income (loss) per share attributable to Twin Disc common shareholders	$	0.08		$	0.05		$	0.13		$	(0.07	)	$	0.09		$	0.02
Weighted average shares outstanding data:
Basic shares outstanding		13,460			-			13,460			13,434			-			13,434
Diluted shares outstanding		13,699			-			13,699			13,434			-			13,434
Comprehensive income (loss)
Net income (loss)	$	1,154		$	607		$	1,761		$	(778	)	$	1,214		$	436
Benefit plan adjustments, net of income taxes of $ 1 and $3 computed under previous method; and $13 and $4 as reported under new method		(515	)		(607	)		(1,122	)		3			(1,214	)		(1,211	)
Foreign currency translation adjustment		8,392			-			8,392			2,005			-			2,005
Unrealized (loss) gain on hedges, net of income taxes of $0 and $0, respectively		(595	)		-			(595	)		198			-			198
Comprehensive income		8,436			-			8,436			1,428			-			1,428
Less: Comprehensive income attributable to noncontrolling interest		74			-			74			210			-			210
Comprehensive income attributable to Twin Disc	$	8,362		$	-		$	8,362		$	1,218		$	-		$	1,218

	December 30, 2022
	As Computed Under Previous Method			Effect of Accounting Change			As Reported Under New Method
ASSETS
Current assets:
Cash	$	13,528		$	-		$	13,528
Trade accounts receivable, net		39,392			-			39,392
Inventories		136,810			-			136,810
Assets held for sale		2,968			-			2,968
Prepaid expenses		10,871			-			10,871
Other		7,228			-			7,228
Total current assets		210,797			-			210,797
Property, plant and equipment, net		39,683			-			39,683
Right-of-use assets operating leases		12,807			-			12,807
Intangible assets, net		11,798			-			11,798
Deferred income taxes		2,403			-			2,403
Other assets		2,766			-			2,766
Total assets	$	280,254		$	-		$	280,254
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt	$	2,000		$	-		$	2,000
Accounts payable		28,906			-			28,906
Accrued liabilities		55,939			-			55,939
Total current liabilities		86,845			-			86,845
Long-term debt		29,927			-			29,927
Lease obligations		10,278			-			10,278
Accrued retirement benefits		10,587			-			10,587
Deferred income taxes		3,506			-			3,506
Other long-term liabilities		5,346			-			5,346
Total liabilities		146,489			-			146,489
Twin Disc shareholders' equity:
Preferred shares authorized: 200,000; issued: none; no par value		-			-			-
Common shares authorized: 30,000,000; issued: 14,632,802; no par value		41,444			-			41,444
Retained earnings		134,141			(23,898	)		110,243
Accumulated other comprehensive loss		(29,880	)		23,898			(5,982	)
		145,705			-			145,705
Less treasury stock, at cost (819,398 shares, respectively)		12,562			-			12,562
Total Twin Disc shareholders' equity		133,143			-			133,143
Noncontrolling interest		622			-			622
Total equity		133,765			-			133,765
Total liabilities and equity	$	280,254		$	-		$	280,254

	December 30, 2022
	As Computed Under Previous Method			Effect of Accounting Change			As Reported Under New Method
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$	(778	)	$	1,214		$	436
Adjustments to reconcile net (loss) income to net cash provided by activities:
Depreciation and amortization		4,266			-			4,266
Gain on sale of assets		(4,203	)		-			(4,203	)
Provision for deferred income taxes		(1,105	)		-			(1,105	)
Stock compensation expense		1,565			-			1,565
Net change in operating assets and liabilities		287			(1,214	)		(927	)
Net cash provided by operating activities		32			-			32
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property, plant, and equipment		(4,734	)		-			(4,734	)
Proceeds from sale of fixed assets		7,152			-			7,152
Proceeds on note receivable		-			-			-
Other, net		385			-			385
Net cash provided by investing activities		2,803			-			2,803
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving loan arrangements		42,898			-			42,898
Repayments of revolving loan arrangements		(46,628	)		-			(46,628	)
Repayments of other long-term debt		(839	)		132			(707	)
Payments of finance lease obligations					(132	)		(132	)
Payments of withholding taxes on stock compensation		(463	)		-			(463	)
Net cash used by financing activities		(5,032	)		-			(5,032	)
Effect of exchange rate changes on cash		3,204			-			3,204
Net change in cash		1,007			-			1,007
Cash:
Beginning of period		12,521			-			12,521
End of period	$	13,528		$	-		$	13,528

	December 30, 2022
	As Computed Under Previous Method			Effect of Accounting Change			As Reported Under New Method
Retained earnings
Balance at June 30, 2022		135,031			(25,112	)		109,919
Net (loss) income attributable to Twin Disc		(890	)		1,214			324
Balance at December 30, 2022	$	134,141		$	(23,898	)	$	110,243
Accumulated other comprehensive income (loss)
Balance at June 30, 2022		(32,086	)		25,112			(6,974	)
Translation adjustments		2,005			-			2,005
Benefit plan adjustments, net of tax		3			(1,214	)		(1,211	)
Unrealized gain on hedges, net of tax		198			-			198
Balance at December 30, 2022	$	(29,880	)	$	23,898		$	(5,982	)