Note P - Impact of Accounting Method Change (Tables)

9 Months Ended

Mar. 29, 2024

Notes Tables

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

	For the Quarter Ended									For the Three Quarters Ended
	March 31, 2023									March 31, 2023
	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	$	73,772		$	-		$	73,772		$	193,036		$	-		$	193,036
Cost of goods sold		54,507			-			54,507			143,451			-			143,451
Gross profit		19,265			-			19,265			49,585			-			49,585
Marketing, engineering and administrative expenses		14,626			-			14,626			45,688			-			45,688
Restructuring expenses		33			-			33			208			-			208
Other operating expense (income)		1			-			1			(4,149	)		-			(4,149	)
Income from operations		4,605			-			4,605			7,838			-			7,838
Other expense (income):
Interest expense		522			-			522			1,682			-			1,682
Other expense (income), net		785			(607	)		178			1,834			(1,821	)		13
		1,307			(607	)		700			3,516			(1,821	)		1,695
Income before income taxes and noncontrolling interest		3,298			607			3,905			4,322			1,821			6,143
Income tax expense		548			-			548			2,350			-			2,350
Net income		2,750			607			3,357			1,972			1,821			3,793
Less: Net earnings attributable to noncontrolling interest, net of tax		(76	)		-			(76	)		(188	)		-			(188	)
Net income attributable to Twin Disc	$	2,674		$	607		$	3,281		$	1,784		$	1,821		$	3,605
Income per share data:
Basic income per share attributable to Twin Disc common shareholders	$	0.20		$	0.04		$	0.24		$	0.13		$	0.14		$	0.27
Diluted income per share attributable to Twin Disc common shareholders	$	0.20		$	0.04		$	0.24		$	0.13		$	0.13		$	0.26
Weighted average shares outstanding data:
Basic shares outstanding		13,504			-			13,504			13,455			-			13,455
Diluted shares outstanding		13,662			-			13,662			13,608			-			13,608
Comprehensive income
Net income	$	2,750		$	607		$	3,357		$	1,972		$	1,821		$	3,793
Benefit plan adjustments, net of income taxes of $ 1 and $5 computed under previous method; and $1 and $5 as reported under new method		578			(607	)		(29	)		581			(1,821	)		(1,240	)
Foreign currency translation adjustment		1,014			-			1,014			3,116			-			3,116
Unrealized loss on hedges, net of income taxes of $0 and $0, respectively		(224	)		-			(224	)		(26	)		-			(26	)
Comprehensive income		4,118			-			4,118			5,643			-			5,643
Less: Comprehensive income attributable to noncontrolling interest		67			-			67			277			-			277
Comprehensive income attributable to Twin Disc	$	4,051		$	-		$	4,051		$	5,366		$	-		$	5,366

	March 31, 2023
	As Computed Under Previous Method			Effect of Accounting Change			As Reported Under New Method
ASSETS
Current assets:
Cash	$	14,024		$	-		$	14,024
Trade accounts receivable, net		44,438			-			44,438
Inventories		136,153			-			136,153
Assets held for sale		2,968			-			2,968
Prepaid expenses		10,025			-			10,025
Other		8,341			-			8,341
Total current assets		215,949			-			215,949
Property, plant and equipment, net		40,700			-			40,700
Right-of-use assets operating leases		12,415			-			12,415
Intangible assets, net		11,239			-			11,239
Deferred income taxes		2,542			-			2,542
Other assets		2,668			-			2,668
Total assets	$	285,513		$	-		$	285,513
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt	$	2,000		$	-		$	2,000
Accounts payable		29,726			-			29,726
Accrued liabilities		56,886			-			56,886
Total current liabilities		88,612			-			88,612
Long-term debt		29,276			-			29,276
Lease obligations		9,897			-			9,897
Accrued retirement benefits		10,315			-			10,315
Deferred income taxes		3,391			-			3,391
Other long-term liabilities		5,403			-			5,403
Total liabilities		146,894			-			146,894
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		42,145			-			42,145
Retained earnings		136,815			(23,291	)		113,524
Accumulated other comprehensive (loss) income		(28,503	)		23,291			(5,212	)
		150,457			-			150,457
Less treasury stock, at cost (819,398 shares, respectively)		12,527			-			12,527
Total Twin Disc shareholders' equity		137,930			-			137,930
Noncontrolling interest		689			-			689
Total equity		138,619			-			138,619
Total liabilities and equity	$	285,513		$	-		$	285,513

	For the Three Quarters Ended March 31, 2023
	As Computed Under Previous Method			Effect of Accounting Change			As Reported Under New Method
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	1,972		$	1,821		$	3,793
Adjustments to reconcile net income to net cash provided by activities:
Depreciation and amortization		6,936			-			6,936
Gain on sale of assets		(4,237	)		-			(4,237	)
Provision for deferred income taxes		(1,462	)		-			(1,462	)
Stock compensation expense		2,355			-			2,355
Net change in operating assets and liabilities		1,295			(1,821	)		(526	)
Net cash provided by operating activities		6,859			-			6,859
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property, plant, and equipment		(6,783	)		-			(6,783	)
Proceeds from sale of fixed assets		7,177			-			7,177
Proceeds on note receivable		-			-			-
Other, net		199			-			199
Net cash provided by investing activities		593			-			593
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving loan arrangements		65,862			-			65,862
Repayments of revolving loan arrangements		(69,823	)		-			(69,823	)
Repayments of other long-term debt		(1,534	)		-			(1,534	)
Payments of finance lease obligations		(231	)		-			(231	)
Payments of withholding taxes on stock compensation		(463	)		-			(463	)
Net cash used by financing activities		(6,189	)		-			(6,189	)
Effect of exchange rate changes on cash		240			-			240
Net change in cash		1,503			-			1,503
Cash:
Beginning of period		12,521			-			12,521
End of period	$	14,024		$	-		$	14,024

	For the Three Quarters Ended March 31, 2023
	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 income attributable to Twin Disc		1,784			1,821			3,605
Balance at March 31, 2023	$	136,815		$	(23,291	)	$	113,524
Accumulated other comprehensive (loss) income
Balance at June 30, 2022		(32,086	)		25,112			(6,974	)
Translation adjustments		3,028			-			3,028
Benefit plan adjustments, net of tax		581			(1,821	)		(1,240	)
Unrealized loss on hedges, net of tax		(26	)		-			(26	)
Balance at March 31, 2023	$	(28,503	)	$	23,291		$	(5,212	)