Note K - Shareholders' Equity

9 Months Ended

Mar. 31, 2023

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 March 31, 2023 remain authorized for purchase.  The Company did not make any open market purchases of its shares during the quarters ended March 31, 2023 and March 25, 2022.

The following is a reconciliation of the Company’s equity balances for the first three fiscal quarters of 2023 and 2022:

	Twin Disc, Inc. Shareholders’ Equity
							Accumulated
							Other						Non-
	Common			Retained			Comprehensive			Treasury			Controlling			Total
	Stock			Earnings			Income (Loss)			Stock			Interest			Equity
Balance, June 30, 2022	$	42,551		$	135,031		$	(32,086	)	$	(14,720	)	$	412		$	131,188
Net (loss) income					(2,029	)								98			(1,931	)
Translation adjustments								(6,328	)					38			(6,290	)
Benefit plan adjustments, net of tax								518									518
Unrealized gain on cash flow hedge, net of tax								793									793
Compensation expense		658															658
Shares (acquired) issued, net		(1,924	)								1,756						(168	)
Balance, September 30, 2022		41,285			133,002			(37,103	)		(12,964	)		548			124,768
Net income					1,139									15			1,154
Translation adjustments								8,333						59			8,392
Benefit plan adjustments, net of tax								(515	)								(515	)
Unrealized loss on cash flow hedge, net of tax								(595	)								(595	)
Compensation expense		856															856
Shares (acquired) issued, net		(697	)								402						(295	)
Balance, December 30, 2022		41,444			134,141			(29,880	)		(12,562	)		622			133,765
Net income					2,674									76			2,750
Translation adjustments								1,023						(9	)		1,014
Benefit plan adjustments, net of tax								578									578
Unrealized loss on cash flow hedge, net of tax								(224	)								(224	)
Compensation expense		736															736
Shares issued (acquired), net		(35	)								35						-
Balance, March 31, 2023	$	42,145		$	136,815		$	(28,503	)	$	(12,527	)	$	689		$	138,619

	Twin Disc, Inc. Shareholders’ Equity
							Accumulated
							Other						Non-
	Common			Retained			Comprehensive			Treasury			Controlling			Total
	Stock			Earnings			Income (Loss)			Stock			Interest			Equity
Balance, June 30, 2021	$	40,972		$	126,936		$	(22,615	)	$	(15,083	)	$	450		$	130,660
Net income					1,920									60			1,980
Translation adjustments								(2,014	)					76			(1,938	)
Benefit plan adjustments, net of tax								384									384
Unrealized gain on cash flow hedge, net of tax								204									204
Compensation expense		625															625
Shares (acquired) issued, net		(432	)								141						(291	)
Balance, September 24, 2021		41,165			128,856			(24,041	)		(14,942	)		586			131,624
Net (loss) income					(3,836	)								86			(3,750	)
Translation adjustments								(1,676	)					(25	)		(1,701	)
Benefit plan adjustments, net of tax								623									623
Unrealized gain on cash flow hedge, net of tax								735									735
Compensation expense		595															595
Shares (acquired) issued, net		(169	)								(26	)					(195	)
Balance, December 31, 2021		41,591			125,020			(24,359	)		(14,968	)		647			127,931
Net income					2,231									79			2,310
Translation adjustments								(2,680	)					(41	)		(2,721	)
Benefit plan adjustments, net of tax								505									505
Unrealized loss on cash flow hedge, net of tax								810									810
Compensation expense		620															620
Shares issued (acquired), net		(163	)								163						0
Balance, March 25, 2022	$	42,048		$	127,251		$	(25,724	)	$	(14,805	)	$	685		$	129,455

Reconciliations for the changes in accumulated other comprehensive income (loss), net of tax, by component for the quarters ended March 31, 2023 and March 25, 2022 are as follows:

	Translation			Benefit Plan			Cash Flow			Net Investment
	Adjustment			Adjustment			Hedges			Hedges
Balance at June 30, 2022	$	(2,266	)	$	(31,726	)	$	355		$	1,551
Translation adjustment during the quarter		(6,328	)		-			-			-
Amounts reclassified from accumulated other comprehensive income (loss)		-			518			349			444
Net current period other comprehensive (loss) income		(6,328	)		518			349			444
Balance at September 30, 2022	$	(8,594	)	$	(31,208	)	$	704		$	1,995
Translation adjustment during the quarter		8,333			-			-			-
Plan merger remeasurement adjustment		-			(1,115	)		-			-
Amounts reclassified from accumulated other comprehensive income (loss)		-			600			(10	)		(585	)
Net current period other comprehensive (loss) income		8,333			(515	)		(10	)		(585	)
Balance at December 30, 2022		(261	)		(31,723	)		694			1,410
Translation adjustment during the quarter		1,023
Amounts reclassified from accumulated other comprehensive income (loss)		-			578			(133	)		(91	)
Net current period other comprehensive (loss) income		1,023			578			(133	)		(91	)
Balance at March 31, 2023	$	762		$	(31,145	)	$	561		$	1,319

	Translation			Benefit Plan			Cash Flow			Net Investment
	Adjustment			Adjustment			Hedges			Hedges
Balance at June 30, 2021	$	9,192		$	(31,463	)	$	(678	)	$	334
Translation adjustment during the quarter		(2,014	)		-			-			-
Amounts reclassified from accumulated other comprehensive income		-			384			68			136
Net current period other comprehensive (loss) income		(2,014	)		384			68			136
Balance at September 24, 2021	$	7,178		$	(31,079	)	$	(610	)	$	470
Translation adjustment during the quarter		(1,676	)		-			-			-
Amounts reclassified from accumulated other comprehensive income		-			623			232			503
Net current period other comprehensive (loss) income		(1,676	)		623			232			503
Balance at December 31, 2021		5,502			(30,456	)		(378	)		973
Translation adjustment during the quarter		(2,680	)		-			-			-
Amounts reclassified from accumulated other comprehensive income		-			505			556			254
Net current period other comprehensive (loss) income		(2,680	)		505			556			254
Balance at March 25, 2022	$	2,822		$	(29,951	)	$	178		$	1,227

Reconciliation for the changes in benefit plan adjustments, net of tax for the quarter ended March 31, 2023 are as follows:

	Quarter Ended				Three Quarters Ended
	March 31, 2023				March 31, 2023
Changes in benefit plan items
Actuarial losses	$	629		(a)	$	1,844		(a)
Transition asset and prior service benefit		(51	)	(a)		(152	)	(a)
Plan merger remaeasurement adjustment		-				(1,115	)
Translation		1				9
Total amortization		579				586
Income taxes		1				5
Total changes, net of tax	$	578			$	581

Reconciliation for the changes in benefit plan adjustments, net of tax for the quarter ended March 25, 2022 is as follows:

	Quarter Ended				Three Quarters Ended
	March 25, 2022				March 25, 2022
Changes in benefit plan items
Actuarial losses	$	562		(a)	$	1,687		(a)
Transition asset and prior service benefit		(64	)	(a)		(190	)	(a)
Translation		11				19
Total amortization		509				1,516
Income taxes		4				4
Total changes, net of tax	$	505			$	1,512

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