Basis of Presentation (Policies)

6 Months Ended

Dec. 28, 2012

Basis of Presentation [Abstract]

Revision of Prior Period Financial Statements

Revision of Prior Period Financial Statements

During the second quarter of fiscal 2013, the Company identified errors related to its reserve for uncertain tax positions that affected prior periods beginning in the year ended June 30, 2007 and subsequent periods through September 28, 2012. In evaluating whether the Company's previously issued consolidated financial statements were materially misstated, the Company considered the guidance in Accounting Standard Codification ("ASC") Topic 250, Accounting Changes and Error Corrections and ASC Topic 250-10-S99-1, Assessing Materiality. The Company concluded this error was not material individually or in the aggregate to any of the prior reporting periods. However, the cumulative error would be material in the year ended June 30, 2013, if the entire correction was recorded in the second quarter of fiscal 2013. As such, the revision for this correction to the applicable prior periods is reflected in the financial information herein and will be reflected in future filings containing such financial information. As a result of correcting the errors related to its reserve for uncertain tax positions, net earnings attributable to Twin Disc was decreased by $69,000, $50,000 and $104,000 in 2012, 2011 and 2010, respectively. The cumulative impact of this error correction prior to fiscal 2011 was to reduce shareholders' equity at June 30, 2010 by $658,000. In addition to recording this correcting adjustment, the Company recorded other adjustments to prior period amounts to correct other immaterial out-of-period adjustments related to income taxes, including those that had been previously disclosed. As a result of correcting these other immaterial out-of-period adjustments, net earnings attributable to Twin Disc was increased by $700,000 in 2012, decreased by $783,000 in 2011, and increased by $83,000 in 2010. The cumulative impact of these other immaterial out-of-period adjustments prior to fiscal 2011 was to increase shareholders' equity at June 30, 2010 by $83,000.

In addition, in the third quarter of fiscal 2012, the Company identified a prior period error in their first and second quarter 2012 condensed consolidated financial statements related to the cash flow statement classification of the excess tax benefit related to stock-based compensation. The excess tax benefit in the first and second quarter of fiscal 2012, in the amount of $445,000 and $90,000, respectively, was reflected in operating activities rather than financing activities in the condensed consolidated cash flow statement. There was no impact of the error on the condensed consolidated statement of comprehensive income or condensed consolidated balance sheet. The Company concluded this error was not material individually or in the aggregate to any of the prior periods. The revision for the correction is reflected in the financial information herein and will be reflected in future filings containing affected financial information.

The impacts of these revisions are shown in the following tables (in '000's):

	As of and for the period ended June 30, 2011				As of and for the period ended September 30, 2011
	Reported	Adjustment	Revised		Reported	Adjustment	Revised
Revised consolidated balance sheet amounts
Accrued liabilities	41,673	700	42,373		38,301	608	38,909
Total current liabilities	83,960	700	84,660		77,165	608	77,773
Other long term liabilities	7,089	708	7,797		4,363	725	5,088
Total liabilities	171,066	1,408	172,474		170,619	1,333	171,952
Retained earnings	162,857	(1,408)	161,449		171,524	(1,333)	170,191
Total equity	138,054	(1,408)	136,646		145,811	(1,333)	144,478
Revised consolidated statement of comprehensive income (loss) amounts
Year to date
Income taxes	13,064	833	13,897		5,259	(75)	5,184
Net earnings	18,965	(833)	18,132		9,635	75	9,710
Net earnings attributable to Twin Disc	18,830	(833)	17,997		9,581	75	9,656
Basic earnings per share	1.66	(0.07)	1.59		0.84	0.01	0.85
Diluted earnings per share	1.64	(0.07)	1.57		0.83	0.01	0.84
Comprehensive income (loss)	49,743	(833)	48,910		7,834	75	7,909
Comprehensive income (loss) attributable to Twin Disc	49,608	(833)	48,775		7,780	75	7,855
Revised consolidated statement of cash flows amounts
Net earnings	18,965	(833)	18,132		9,635	75	9,710
Net change in working capital, excluding cash and debt, and other					(16,354)	(75)	(16,429)
Accrued liabilities	6,713	833	7,546
Other non-cash changes, net					2,950	(445)	2,505
Net cash used by operating activities					(1,196)	(445)	(1,641)
Excess tax benefits from stock comp					-	445	445
Net cash provided by financing activities					10,051	445	10,496
	As of and for the period ended December 30, 2011				As of and for the period ended March 30, 2012
	Reported	Adjustment	Revised		Reported	Adjustment	Revised
Revised consolidated balance sheet amounts
Accrued liabilities	38,056	608	38,664
Total current liabilities	77,872	608	78,480
Other long term liabilities	4,845	742	5,587		4,478	759	5,237
Total liabilities	170,822	1,350	172,172		168,130	759	168,889
Retained earnings	176,467	(1,350)	175,117		184,831	(759)	184,072
Total equity	145,586	(1,350)	144,236		157,231	(759)	156,472
Revised consolidated statement of comprehensive income (loss) amounts
Year to date
Income taxes	8,627	(58)		8,569	14,039	(649)	13,390
Net earnings	15,501	58		15,559	24,939	649	25,588
Net earnings attributable to Twin Disc	15,438	58		15,496	24,831	649	25,480
Basic earnings per share	1.35	0.01		1.36	2.18	0.05	2.23
Diluted earnings per share	1.34	-		1.34	2.15	0.05	2.20
Comprehensive income (loss)	7,853	58		7,911	19,950	649	20,599
Comprehensive income (loss) attributable to Twin Disc	7,790	58		7,848	19,842	649	20,491
Quarter
Income taxes	3,368	17		3,385	5,412	(591)	4,821
Net earnings	5,866	(17)		5,849	9,438	591	10,029
Near earnings attributable to Twin Disc	5,857	(17)		5,840	9,393	591	9,984
Basic earnings per share	0.51	-		0.51	0.82	0.05	0.87
Diluted earnings per share	0.51	(0.01)		0.50	0.81	0.05	0.86
Comprehensive income (loss)	19	(17)		2	12,097	591	12,688
Comprehensive income (loss) attributable to Twin Disc	10	(17)		(7)	12,052	591	12,643
Revised consolidated statement of cash flows amounts
Net earnings	15,501	58		15,559	24,939	649	25,588
Net change in working capital, excluding cash and debt, and other	(28,157)	(58)		(28,215)	(41,315)	(649)	(41,964)
Accrued liabilities
Other non-cash changes, net	4,291	(535)		3,756
Net cash used by operating activities	(3,054)	(535)		(3,589)
Excess tax benefits from stock comp	-	535		535
Net cash provided by financing activities	10,096	535		10,631
	As of and for the period ended June 30, 2012				As of and for the period ended September 28, 2012
	Reported	Adjustment		Revised	Reported	Adjustment	Revised
Revised consolidated balance sheet amounts
Other long term liabilities	4,171	777		4,948	2,200	797	2,997
Total liabilities	166,546	777		167,323	160,512	797	161,309
Retained earnings	185,083	(777)		184,306	185,308	(797)	184,511
Total equity	137,286	(777)		136,509	139,587	(797)	138,790
Revised consolidated statement of comprehensive income (loss) amounts
Year to date
Income taxes	18,446	(631)		17,815	1,077	20	1,097
Net earnings	26,310	631		26,941	1,286	(20)	1,266
Net earnings attributable to Twin Disc	26,112	631		26,743	1,251	(20)	1,231
Basic earnings per share	2.29	0.05		2.34	0.11	-	0.11
Diluted earnings per share	2.26	0.05		2.31	0.11	-	0.11
Comprehensive income (loss)	2,882	631		3,513	3,218	20	3,238
Comprehensive income (loss) attributable to Twin Disc	2,684	631		3,315	3,183	20	3,203
Quarter
Income taxes	4,407	18		4,425	1,077	20	1,097
Net earnings	1,371	(18)		1,353	1,286	(20)	1,266
Net earnings attributable to Twin Disc	1,281	(18)		1,263	1,251	(20)	1,231
Basic earnings per share	0.11	-		0.11	0.11	-	0.11
Diluted earnings per share	0.11	-		0.11	0.11	-	0.11
Comprehensive income (loss)	(17,068)	(18)		(17,086)	3,218	20	3,238
Comprehensive income (loss) attributable to Twin Disc	(17,158)	(18)		(17,176)	3,183	20	3,203
Revised consolidated statement of cash flows amounts
Net earnings	26,310	631		26,941	1,286	(20)	1,266
Net change in working capital, excluding cash and debt, and other					(4,059)	20	(4,039)
Accrued liabilities	(2,273)	(631)		(2,904)

New Accounting Releases

New Accounting Releases

In July 2012, the Financial Accounting Standards Board ("FASB") issued amended guidance that simplifies how entities test indefinite-lived intangible assets other than goodwill for impairment. After an assessment of certain qualitative factors, if it is determined to be more likely than not that an indefinite-lived asset is impaired, entities must perform the quantitative impairment test. Otherwise, the quantitative test is optional. The amended guidance is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012, with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company's financial results.

In September 2011, the FASB issued a standards update that is intended to simplify how entities test goodwill for impairment. This update permits an entity to first assess qualitative factors to determine whether it is "more likely than not" that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test described in Topic 350 "Intangibles-Goodwill and Other." This update is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011 (the Company's fiscal 2013). This standards update is not expected to have a material impact on the Company's financial statements.