Note K - Shareholders' Equity

6 Months Ended

Dec. 27, 2024

Notes to Financial Statements

Equity [Text Block]

K. Shareholders’ Equity

The Company, from time to time, makes open market purchases of its common stock under authorizations given to it by the Board of Directors, of which 315.0 shares as of December 27, 2024 remain authorized for purchase.  The Company did not make any open market purchases of its shares during the quarters ended December 27, 2024 and December 29, 2023.

The following is a reconciliation of the Company’s equity balances for the first two fiscal quarters of 2025 and 2024:

	Twin Disc, Inc. Shareholders’ Equity
							Accumulated
							Other						Non-
	Common			Retained			Comprehensive			Treasury			Controlling			Total
	Stock			Earnings			Loss			Stock			Interest			Equity
Balance, June 30, 2024		41,798			129,592			(6,905	)		(9,783	)		352		$	155,054
Net loss					(2,765	)								(7	)		(2,772	)
Dividends paid to shareholders					(570	)											(570	)
Translation adjustments								7,148						143			7,291
Benefit plan adjustments, net of tax								221									221
Unrealized loss on hedges, net of tax								(853	)								(853	)
Compensation expense		1,024															1,024
Stock awards, net		(2,920	)								1,671						(1,249	)
Balance, September 27, 2024		39,902			126,257			(389	)		(8,112	)		488			158,146
Net income					919									180			1,099
Dividends paid to shareholders					(566	)											(566	)
Translation adjustments								(11,311	)					(58	)		(11,369	)
Benefit plan adjustments, net of tax								(1,668	)								(1,668	)
Unrealized gain on hedges, net of tax								1,146									1,146
Compensation expense		853															853
Stock awards, net		(644	)								637						(7	)
Balance, December 27, 2024	$	40,111		$	126,610		$	(12,222	)	$	(7,475	)	$	610		$	147,634

	Twin Disc, Inc. Shareholders’ Equity
							Accumulated
							Other						Non-
	Common			Retained			Comprehensive			Treasury			Controlling		Total
	Stock			Earnings			Loss			Stock			Interest		Equity
Balance, June 30, 2023		42,855			120,299			(5,570	)		(12,491	)		424	$	145,517
Net (loss) income					(1,173	)								90		(1,083	)
Translation adjustments								(3,096	)					60		(3,036	)
Benefit plan adjustments, net of tax								(171	)							(171	)
Unrealized gain on hedges, net of tax								216								216
Compensation expense		495														495
Stock awards, net		(3,911	)								2,148					(1,763	)
Balance, September 29, 2023		39,439			119,126			(8,621	)		(10,343	)		574		140,175
Net income					930									5		935
Dividends paid to shareholders					(560	)										(560	)
Translation adjustments								5,155						35		5,190
Benefit plan adjustments, net of tax								(108	)							(108	)
Unrealized loss on hedges, net of tax								(485	)							(485	)
Compensation expense		772														772
Stock awards, net		(550	)								541					(9	)
Balance, December 29, 2023	$	39,661		$	119,496		$	(4,059	)	$	(9,802	)	$	614	$	145,910

Reconciliations for the changes in accumulated other comprehensive loss, net of tax, by component for the quarters ended December 27, 2024 and December 29, 2023 are as follows:

	Translation			Benefit Plan			Cash Flow			Net Investment
	Adjustment			Adjustment			Hedges			Hedges
Balance, June 30, 2024	$	(849	)	$	(8,062	)	$	504		$	1,502
Translation adjustment during the quarter		7,148			-			-			-
Amounts reclassified from accumulated other comprehensive loss		-			221			(169	)		(684	)
Net current period other comprehensive income (loss)		7,148			221			(169	)		(684	)
Balance, September 27, 2024	$	6,299		$	(7,841	)	$	335		$	818
Translation adjustment during the quarter		(11,311	)		-			-			-
Return on plan assets					(1,808	)
Amounts reclassified from accumulated other comprehensive loss		-			140			24			1,122
Net current period other comprehensive (loss) income		(11,311	)		(1,668	)		24			1,122
Balance, December 27, 2024	$	(5,012	)	$	(9,509	)	$	359		$	1,940

	Translation			Benefit Plan			Cash Flow			Net Investment
	Adjustment			Adjustment			Hedges			Hedges
Balance, June 30, 2023	$	(1,582	)	$	(5,948	)	$	688		$	1,272
Translation adjustment during the quarter		(3,096	)		-			-			-
Amounts reclassified from accumulated other comprehensive loss		-			(171	)		(6	)		222
Net current period other comprehensive (loss) income		(3,096	)		(171	)		(6	)		222
Balance, September 29, 2023	$	(4,678	)	$	(6,119	)	$	682		$	1,494
Translation adjustment during the quarter		5,155			-			-			-
Amounts reclassified from accumulated other comprehensive loss		-			(108	)		(183	)		(302	)
Net current period other comprehensive income (loss)		5,155			(108	)		(183	)		(302	)
Balance, December 29, 2023	$	477		$	(6,227	)	$	499		$	1,192

Reconciliation for the changes in benefit plan adjustments, net of tax for the quarter ended December 27, 2024 are as follows:

	Quarter Ended			Two Quarters Ended
	December 27, 2024			December 27, 2024
Changes in benefit plan items
Actuarial losses	$	180	(a)	$	464	(a)
Transition asset and prior service benefit		(53	)(a)		(104	)(a)
Return on plan assets		(1,808	)		(1,808	)
Total amortization		(1,681	)		(1,448	)
Income taxes		13			2
Total reclassification, net of tax	$	(1,668	)	$	(1,446	)

Reconciliation for the changes in benefit plan adjustments, net of tax for the quarter ended December 29, 2023 is as follows:

	Quarter Ended			Two Quarters Ended
	December 29, 2023			December 29, 2023
Changes in benefit plan items
Actuarial losses	$	(91	)(a)	$	(263	)(a)
Transition asset and prior service benefit		(4	)(a)		(8	)(a)
Total amortization		(95	)		(271	)
Income taxes		(13	)		(8	)
Total reclassification, net of tax	$	(108	)	$	(279	)

(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).