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Note C - Warranty (Details Textual) - USD ($) $ in Thousands	6 Months Ended
	Dec. 27, 2019	Dec. 28, 2018
Product Warranty Expense	$ 3,889
Product Warranty Accrual, Current	4,856	$ 3,309
Product Warranty Accrual, Noncurrent	$ 919	$ 534

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Dec. 27, 2019	Jun. 30, 2019
Current assets:
Cash	$ 14,836	$ 12,362
Trade accounts receivable, net	33,302	44,013
Inventories	134,658	125,893
Prepaid expenses	5,522	11,681
Other	7,544	8,420
Total current assets	195,862	202,369
Property, plant and equipment, net	73,768	71,258
Goodwill, net	25,561	25,954
Intangible assets, net	22,625	25,353
Deferred income taxes	21,459	18,178
Other assets	4,006	3,758
Total assets	343,281	346,870
Current liabilities:
Current maturities of long-term debt	2,000	2,000
Accounts payable	26,259	31,468
Accrued liabilities	47,730	41,646
Total current liabilities	75,989	75,114
Long-term debt	50,512	40,491
Lease obligations	13,850	12,646
Accrued retirement benefits	24,607	25,878
Deferred income taxes	6,744	7,429
Other long-term liabilities	2,094	2,494
Total liabilities	173,796	164,052
Commitments and contingencies (Note D)
Twin Disc shareholders' equity:
Preferred shares authorized: 200,000; issued: none; no par value	0	0
Common shares authorized: 30,000,000; issued: 14,632,802; no par value	42,305	45,047
Retained earnings	183,645	196,472
Accumulated other comprehensive loss	(38,230)	(37,971)
Equity before treasury stock	187,720	203,548
Less treasury stock, at cost (1,226,809 and 1,392,524 shares, respectively)	18,796	21,332
Total Twin Disc shareholders' equity	168,924	182,216
Noncontrolling interest	561	602
Total equity	169,485	182,818
Total liabilities and equity	$ 343,281	$ 346,870

Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited) (Parentheticals) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 27, 2019	Dec. 28, 2018	Dec. 27, 2019	Dec. 28, 2018
Benefit plan adjustments, income taxes	$ 169	$ 146	$ 338	$ 292
Unrealized loss on cash flow hedge, income taxes	$ (45)	$ 0	$ (1)	$ 0

Note K - Shareholders' Equity (Details Textual) - shares shares in Thousands	3 Months Ended
	Dec. 27, 2019	Dec. 28, 2018
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased	315
Treasury Stock, Shares, Acquired	0	0

Note B - Inventories

6 Months Ended

Dec. 27, 2019

Notes to Financial Statements

Inventory Disclosure [Text Block]

B .	Inventor ies

The major classes of inventories were as follows:

	December 27, 2019		June 30, 2019
Inventories:
Finished parts	$	68,315	$	57,682
Work in process		22,222		23,812
Raw materials		44,121		44,399
	$	134,658	$	125,893

Note I - Goodwill and Other Intangibles - Estimated Intangibles Amortization Expense (Details) $ in Thousands	Dec. 27, 2019 USD ($)
2020	$ 2,297
2021	3,305
2022	3,120
2023	2,960
2024	2,748
2025	$ 2,562

Note I - Goodwill and Other Intangibles

6 Months Ended

Dec. 27, 2019

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

I .	Goodwill and Other Intangibles

Goodwill represents the amount of the consideration transferred in excess of the net of the acquisition-date fair values of the identifiable assets acquired and the liabilities assumed.

The Company reviews goodwill for impairment on a reporting unit basis annually as of the

first

day of the Company’s

fourth

fiscal quarter, and whenever events or changes in circumstances (“triggering events”) indicate that the carrying value of goodwill

may

not

be recoverable.

The fair value of reporting units is primarily driven by projected growth rates and operating results under the income approach using a discounted cash flow model, which applies an appropriate market-participant discount rate, and consideration of other market approach data from guideline public companies. If declining actual operating results or future operating results become indicative that the fair value of the Company’s reporting units has declined below their carrying values, an interim goodwill impairment test

may

need to be performed and

may

result in a non-cash goodwill impairment charge.

During the

first

half of fiscal

2020,

the Company determined that there were

triggering events to warrant an interim goodwill impairment test. As of

December 27, 2019,

goodwill in the amounts of

$23,013

and

$2,548

is carried in the European Propulsion and European Industrial reporting units, respectively.

As of

December 27, 2019,

changes in the carrying amount of goodwill is summarized as follows:

	Net Book Value Rollforward									By Reporting Unit
	Gross Carrying Amount			Accumulated Amortization / Impairment			Net Book Value			European Propulsion			European Industrial
Balance at June 30, 2019	$	39,776		$	(13,822	)	$	25,954		$	23,371		$	2,583
Translation adjustment		(393	)		-			(393	)		(358	)		(35	)
Balance at December 27, 2019	$	39,383		$	(13,822	)	$	25,561		$	23,013		$	2,548

As of

December 27, 2019,

the following acquired intangible assets have definite useful lives and are subject to amortization:

	Net Book Value Rollforward									Net Book Value By Asset Type
	Gross Carrying Amount			Accumulated Amortization / Impairment			Net Book Value			Customer Relationships			Technology Know-how			Trade Name			Other
Balance at June 30, 2019	$	39,587		$	(14,434	)	$	25,153		$	14,843		$	7,025		$	2,733		$	552
Additions		53			-			53			-			-			-			53
Amortization		-			(2,272	)		(2,272	)		(1,500	)		(569	)		(126	)		(77	)
Translation adjustment		(509	)		-			(509	)		(334	)		(127	)		(44	)		(4	)
Balance at December 27, 2019	$	39,131		$	(16,706	)	$	22,425		$	13,009		$	6,329		$	2,563		$	524

Other intangibles consist of certain proprietary technology, computer software, patents and licensing agreements. Amortization is recorded on the basis of straight-line or accelerated, as appropriate, over the estimated useful lives of the assets.

The weighted average remaining useful life of the intangible assets included in the table above is approximately

years.

Intangible amortization expense was

$1,143

and

$583

for the quarters ended

December 27, 2019,

and

December 28, 2018,

respectively. Intangible amortization expense was

$2,272

and

$1,249

for the

two

quarters ended

December 27, 2019,

and

December 28, 2018,

respectively. Estimated intangible amortization expense for the remainder of fiscal

2020

and each of the next

five

fiscal years is as follows:

Fiscal Year
2020	$	2,297
2021		3,305
2022		3,120
2023		2,960
2024		2,748
2025		2,562

The gross carrying amount of the Company’s intangible assets that have indefinite lives and are

not

subject to amortization as of

December 27, 2019

and

June 30, 2019

was

$200

and

$200,

respectively. These assets are comprised of acquired trade names.

Note O - Derivative Financial Instruments - Fair Value of Derivative Instruments (Details) - Designated as Hedging Instrument [Member] - Interest Rate Swap [Member] - USD ($) $ in Thousands	Dec. 27, 2019	Jun. 30, 2019
Accounts Payable and Accrued Liabilities [Member]
Interest rate swap	$ 144	$ 122
Other Noncurrent Liabilities [Member]
Interest rate swap	$ 518	$ 544

Note K - Shareholders' Equity - Shareholders' Equity Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Dec. 27, 2019	Sep. 27, 2019	Dec. 28, 2018	Sep. 28, 2018	Dec. 27, 2019	Dec. 28, 2018
Balance	$ 173,363	$ 182,818	$ 178,460	$ 143,616	$ 182,818	$ 143,616
Net income (loss)	(6,466)	(6,293)	4,079	2,903	(12,759)	6,982
Translation adjustments	1,647	(2,996)	(1,786)	(561)	(1,349)	(2,347)
Benefit plan adjustments, net of tax	548	557	478	471	1,105	949
Unrealized loss on cash flow hedge, net of tax	146	(143)			3
Cash dividends		(127)		(115)
Compensation expense	248	459	590	850
Shares (acquired) issued, net	(1)	(912)	23	(914)
Net (loss) income	(6,466)	(6,293)	4,079	2,903	(12,759)	6,982
Foreign currency translation adjustment	1,647	(2,996)	(1,786)	(561)	(1,349)	(2,347)
Benefit plan adjustments, net of income taxes of $169, $146, $338 and $292, respectively	548	557	478	471	1,105	949
Unrealized income on cash flow hedge, net of income taxes of ($45), $0, ($1) and $0, respectively	146	(143)			3
Balance	169,485	173,363	181,844	178,460	169,485	181,844
Release stranded tax effects
Common stock issued, net				32,210
Common Stock [Member]
Balance	43,182	45,047	44,044	11,570	45,047	11,570
Net income (loss)
Translation adjustments
Benefit plan adjustments, net of tax
Unrealized loss on cash flow hedge, net of tax
Cash dividends
Compensation expense	248	459	590	850
Shares (acquired) issued, net	(1,125)	(2,324)	(497)	(586)
Net (loss) income
Foreign currency translation adjustment
Benefit plan adjustments, net of income taxes of $169, $146, $338 and $292, respectively
Unrealized income on cash flow hedge, net of income taxes of ($45), $0, ($1) and $0, respectively
Balance	42,305	43,182	44,137	44,044	42,305	44,137
Release stranded tax effects
Common stock issued, net				32,210
Retained Earnings [Member]
Balance	190,161	196,472	188,661	178,896	196,472	178,896
Net income (loss)	(6,516)	(6,311)	4,073	2,862
Translation adjustments
Benefit plan adjustments, net of tax
Unrealized loss on cash flow hedge, net of tax
Cash dividends
Compensation expense
Shares (acquired) issued, net
Net (loss) income	(6,516)	(6,311)	4,073	2,862
Foreign currency translation adjustment
Benefit plan adjustments, net of income taxes of $169, $146, $338 and $292, respectively
Unrealized income on cash flow hedge, net of income taxes of ($45), $0, ($1) and $0, respectively
Balance	183,645	190,161	192,734	188,661	183,645	192,734
Release stranded tax effects				6,903
Common stock issued, net
AOCI Attributable to Parent [Member]
Balance	(40,571)	(37,971)	(30,760)	(23,792)	(37,971)	(23,792)
Net income (loss)
Translation adjustments	1,647	(3,014)	(1,773)	(536)
Benefit plan adjustments, net of tax	548	557	478	471
Unrealized loss on cash flow hedge, net of tax	146	(143)
Cash dividends
Compensation expense
Shares (acquired) issued, net
Net (loss) income
Foreign currency translation adjustment	1,647	(3,014)	(1,773)	(536)
Benefit plan adjustments, net of income taxes of $169, $146, $338 and $292, respectively	548	557	478	471
Unrealized income on cash flow hedge, net of income taxes of ($45), $0, ($1) and $0, respectively	146	(143)
Balance	(38,230)	(40,571)	(32,055)	(30,760)	(38,230)	(32,055)
Release stranded tax effects				(6,903)
Common stock issued, net
Treasury Stock [Member]
Balance	(19,920)	(21,332)	(24,005)	(23,677)	(21,332)	(23,677)
Net income (loss)
Translation adjustments
Benefit plan adjustments, net of tax
Unrealized loss on cash flow hedge, net of tax
Cash dividends
Compensation expense
Shares (acquired) issued, net	1,124	1,412	520	(328)
Net (loss) income
Foreign currency translation adjustment
Benefit plan adjustments, net of income taxes of $169, $146, $338 and $292, respectively
Unrealized income on cash flow hedge, net of income taxes of ($45), $0, ($1) and $0, respectively
Balance	(18,796)	(19,920)	(23,485)	(24,005)	(18,796)	(23,485)
Release stranded tax effects
Common stock issued, net
Noncontrolling Interest [Member]
Balance	511	602	520	619	602	619
Net income (loss)	50	18	6	41
Translation adjustments		18	(13)	(25)
Benefit plan adjustments, net of tax
Unrealized loss on cash flow hedge, net of tax
Cash dividends		(127)		(115)
Compensation expense
Shares (acquired) issued, net
Net (loss) income	50	18	6	41
Foreign currency translation adjustment		18	(13)	(25)
Benefit plan adjustments, net of income taxes of $169, $146, $338 and $292, respectively
Unrealized income on cash flow hedge, net of income taxes of ($45), $0, ($1) and $0, respectively
Balance	$ 561	$ 511	$ 513	520	$ 561	$ 513
Release stranded tax effects
Common stock issued, net

Note C - Warranty (Tables)

6 Months Ended

Dec. 27, 2019

Notes Tables

Schedule of Product Warranty Liability [Table Text Block]

	For the Quarter Ended						For the Two Quarters Ended
	December 27, 2019			December 28, 2018			December 27, 2019			December 28, 2018
Reserve balance, beginning of period	$	7,107		$	4,667		$	3,736		$	4,407
Current period expense and adjustments		681			128			6,129			1,414
Payments or credits to customers		(2,035	)		(926	)		(4,067	)		(1,946	)
Translation		22			(26	)		(23	)		(32	)
Reserve balance, end of period	$	5,775		$	3,843		$	5,775		$	3,843

Note H - Income Taxes (Details Textual) - USD ($) $ in Thousands	6 Months Ended
	Dec. 27, 2019	Dec. 28, 2018
Effective Income Tax Rate Reconciliation, Percent, Total	4.30%	25.10%
Effective Income Tax Rate Reconciliation, GILTI benefit, Percent	18.55%	0.67%
Effective Income Tax Rate Reconciliation, GILTI Inclusion, Amount	$ 9,385
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	$ 1,158
Foreign Tax Authority [Member]
Open Tax Year	2013 2014 2015 2016 2017 2018 2019
Foreign Tax Authority [Member] \| Tax and Customs Administration, Netherlands [Member]
Open Tax Year	2019
Domestic Tax Authority [Member]
Open Tax Year	2015 2016 2017 2018 2019

Note O - Derivative Financial Instruments - Impact of the Company’s Derivative Instruments on the Consolidated Statement of Operations and Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Dec. 27, 2019	Sep. 27, 2019	Dec. 28, 2018	Dec. 27, 2019	Dec. 28, 2018
Interest rate swap	$ 146	$ (143)		$ 3
Interest Rate Swap [Member] \| Designated as Hedging Instrument [Member]
Interest rate swap	146			3
Interest Rate Swap [Member] \| Designated as Hedging Instrument [Member] \| Interest Expense [Member]
Interest rate swap	$ 31			$ 42

Note B - Inventories (Tables)

6 Months Ended

Dec. 27, 2019

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	December 27, 2019		June 30, 2019
Inventories:
Finished parts	$	68,315	$	57,682
Work in process		22,222		23,812
Raw materials		44,121		44,399
	$	134,658	$	125,893

Note J - Long-term Debt (Details Textual) $ in Thousands			6 Months Ended
Note J - Long-term Debt (Details Textual) $ in Thousands	Apr. 22, 2019 USD ($)	Jun. 29, 2018 USD ($)	Dec. 27, 2019 USD ($)	Jan. 28, 2020
Principal Paid on Sale Leaseback Liabilities			$ 36
Cash Flow Hedging [Member] \| Designated as Hedging Instrument [Member] \| Interest Rate Swap [Member] \| Bank of Montreal [Member]
Derivative, Notional Amount	$ 20,000		$ 19,000
Maximum [Member]
Sale Leaseback Transactions, Term			5 years
Sale Leaseback Transactions, Implied Interest Rate			25.00%
Minimum [Member]
Sale Leaseback Transactions, Term			3 years
Sale Leaseback Transactions, Implied Interest Rate			7.00%
BMO [Member] \| The 2018 Credit Agreement [Member] \| Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity		$ 50,000
Debt Instrument, Interest Rate During Period			2.48%
Line of Credit Facility, Current Borrowing Capacity			$ 41,699
Line of Credit Facility, Remaining Borrowing Capacity			$ 8,470
BMO [Member] \| The 2018 Credit Agreement [Member] \| Term Loan [Member]
Debt Instrument, Periodic Payment, Total		$ 500
Debt Instrument, Interest Rate During Period			3.58%
Debt Instrument, Maturity Date	Mar. 04, 2026
BMO [Member] \| The 2018 Credit Agreement [Member] \| Term Loan [Member] \| Minimum [Member]
Debt Instrument, Covenant, Funded Debt to EBITDA Ratio			3
BMO [Member] \| The 2018 Credit Agreement Amendment [Member] \| Revolving Credit Facility [Member] \| Maximum [Member]
Debt Instrument, Covenant, Allowable Ratio, Current Quarter			3
BMO [Member] \| The 2018 Credit Agreement Amendment [Member] \| Revolving Credit Facility [Member] \| Maximum [Member] \| Subsequent Event [Member]
Debt Instrument, Covenant, Allowable Ratio, Current Quarter				4
Debt Instrument, Covenant, Allowable Ratio, Next Quarter				5
Debt Instrument, Covenant, Allowable Ratio, Quarter Two				4
Debt Instrument, Covenant, Allowable Ratio, Quarter Three				3.5
Debt Instrument, Covenant, Allowable Ratio, After Quarter Three				3

Note K - Shareholders' Equity - Reconciliation for the Reclassifications Out of Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Dec. 27, 2019

Sep. 27, 2019

Dec. 28, 2018

Sep. 28, 2018

Dec. 27, 2019

Dec. 28, 2018

Income tax expense (benefit)

$ 1,040

$ 1,451

$ (578)

$ 2,338

Net (loss) income

(6,466)

$ (6,293)

4,079

$ 2,903

(12,759)

6,982

Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]

Actuarial losses

^[1]

781

614

1,571

1,222

Transition asset and prior service benefit

^[1]

(64)

(128)

Total amortization

717

624

1,443

1,241

Income tax expense (benefit)

169

146

338

292

Net (loss) income

$ 548

$ 478

$ 1,105

$ 949

[1]	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).

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8736-108599

Reference 6: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-URI http://asc.fasb.org/extlink&oid=108774443&loc=SL4569616-111683

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/exampleRef
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-URI http://asc.fasb.org/extlink&oid=116874947&loc=SL4591552-111686

+ Details

Note L - Restructuring of Operations (Details Textual) $ in Thousands	3 Months Ended		6 Months Ended		55 Months Ended
	Dec. 27, 2019 USD ($)	Dec. 28, 2018 USD ($)	Dec. 27, 2019 USD ($)	Dec. 28, 2018 USD ($)	Dec. 27, 2019 USD ($)
Restructuring Charges, Total	$ 4,248	$ 434	$ 4,369	$ 607	$ 11,636
Restructuring and Related Cost, Number of Positions Eliminated					203
Payments for Restructuring			2,710
Employee Severance [Member]
Restructuring Charges, Total	1,063	$ 434	1,184	$ 607
Contract Termination [Member]
Restructuring Charges, Total			$ 3,185
Contract Termination [Member] \| Manufacturing Segment [Member]
Restructuring Charges, Total	3,185
Restructuring Reserve, Settled without Cash	2,185
Payments for Restructuring	$ 1,000

Note I - Goodwill and Other Intangibles - Goodwill Rollforward (Details) - USD ($) $ in Thousands	6 Months Ended
	Dec. 27, 2019	Jun. 30, 2019
Balance, goodwill gross carrying amount	$ 39,776
Balance, goodwill accumulated impairment	(13,822)	$ (13,822)
Balance, goodwill net book value	25,954
Translation adjustment, goodwill gross carrying amount	(393)
Translation adjustment, goodwill net book value	(393)
Balance, goodwill gross carrying amount	39,383
Balance, goodwill net book value	25,561
European Propulsion [Member]
Balance, goodwill net book value	23,371
Translation adjustment, goodwill gross carrying amount	(358)
Translation adjustment, goodwill net book value	(358)
Balance, goodwill net book value	23,013
European Industrial [Member]
Balance, goodwill net book value	2,583
Translation adjustment, goodwill gross carrying amount	(35)
Translation adjustment, goodwill net book value	(35)
Balance, goodwill net book value	$ 2,548

Note N - Lease Liabilities - Future Minimum Rental Commitments Under Noncancellable Leases (Details) $ in Thousands	Dec. 27, 2019 USD ($)
2020, Operating Leases	$ 1,553
2020, Finance Leases	103
2021, Operating Leases	2,598
2021, Finance Leases	206
2022, Operating Leases	2,096
2022, Finance Leases	206
2023, Operating Leases	1,965
2023, Finance Leases	198
2024, Operating Leases	1,792
2024, Finance Leases	166
Thereafter, Operating Leases	12,455
Thereafter, Finance Leases	8
Total future lease payments, Operating Leases	22,459
Total future lease payments, Finance Leases	887
Less: Amount representing interest, Operating Leases	(7,270)
Less: Amount representing interest, Finance Leases	(123)
Present value of future payments, Operating Leases	15,189
Present value of future payments, Finance Leases	$ 764

Note L - Restructuring of Operations

6 Months Ended

Dec. 27, 2019

Notes to Financial Statements

Restructuring, Impairment, and Other Activities Disclosure [Text Block]

L.	Restructuring of Operations

The Company has implemented various restructuring programs in response to unfavorable macroeconomic trends in certain of the Company’s markets since the

fourth

quarter of fiscal

2015.

These programs primarily involved the reduction of workforce in several of the Company’s manufacturing locations, under a combination of voluntary and involuntary programs. In its European operations, the Company also implemented actions to reorganize for productivity.

These actions resulted in restructuring charges of

$1,063

and

$1,184

in the quarter and

two

quarters ended

December 27, 2019,

respectively, and restructuring charges of

$434

and

$607

for the quarter and

two

quarters ended

December 28, 2018,

respectively.

Restructuring activities since

June 2015

have resulted in the elimination of

203

full-time employees in the manufacturing segment. Accumulated costs to date under these programs within the manufacturing segment through

December 27, 2019

were

$11,636.

During the

second

quarter of fiscal

2020,

a long-term marine propulsion development program, for which the Company had provided development and production services, was terminated. The cost of exiting the contract consisted of a noncash write-off of assets and liabilities relating to the program amounting to

$2,185,

and a cash settlement to satisfy supplier commitments associated with the program amounting to

$1,000.

The Company has classified the total contract exit cost of

$3,185

as a restructuring charge, within the manufacturing segment, in the quarter ending

December 27, 2019.

The following is a roll-forward of restructuring activity:

Accrued restructuring liability, June 30, 2019	$	-
Additions related to workforce reduction		1,184
Additions related to program termination		3,185
Payments, adjustments and write-offs during the year		(2,710	)
Accrued restructuring liability, December 27, 2019	$	1,659

Note I - Goodwill and Other Intangibles - Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 27, 2019	Dec. 28, 2018	Dec. 27, 2019	Dec. 28, 2018
Balance, Definite Intangible Assets Gross Carrying Amount			$ 39,587
Balance, Definite Intangible Assets Accumulated Amortization/Impairment			(14,434)
Balance at June 30, Definite Intangible Assets Net Book Value			25,153
Additions, Definite Intangible Assets Gross Carrying Amount			53
Additions, Definite Intangible Assets Net Book Value			53
Amortization, Definite Intangible Assets Accumulated Amortization/Impairment	$ (1,143)	$ (583)	(2,272)	$ (1,249)
Amortization, Definite Intangible Assets Net Book Value	(1,143)	$ (583)	(2,272)	$ (1,249)
Translation adjustment, Definite Intangible Assets Gross Carrying Amount			(509)
Translation adjustment, Definite Intangible Assets Net Book Value			(509)
Balance, Definite Intangible Assets Gross Carrying Amount	39,131		39,131
Balance, Definite Intangible Assets Accumulated Amortization/Impairment	(16,706)		(16,706)
Balance at June 30, Definite Intangible Assets Net Book Value	22,425		22,425
Customer Relationships [Member]
Balance at June 30, Definite Intangible Assets Net Book Value			14,843
Additions, Definite Intangible Assets Net Book Value
Amortization, Definite Intangible Assets Accumulated Amortization/Impairment			(1,500)
Amortization, Definite Intangible Assets Net Book Value			(1,500)
Translation adjustment, Definite Intangible Assets Net Book Value			(334)
Balance at June 30, Definite Intangible Assets Net Book Value	13,009		13,009
Technology-Based Intangible Assets [Member]
Balance at June 30, Definite Intangible Assets Net Book Value			7,025
Additions, Definite Intangible Assets Net Book Value
Amortization, Definite Intangible Assets Accumulated Amortization/Impairment			(569)
Amortization, Definite Intangible Assets Net Book Value			(569)
Translation adjustment, Definite Intangible Assets Net Book Value			(127)
Balance at June 30, Definite Intangible Assets Net Book Value	6,329		6,329
Trade Names [Member]
Balance at June 30, Definite Intangible Assets Net Book Value			2,733
Additions, Definite Intangible Assets Net Book Value
Amortization, Definite Intangible Assets Accumulated Amortization/Impairment			(126)
Amortization, Definite Intangible Assets Net Book Value			(126)
Translation adjustment, Definite Intangible Assets Net Book Value			(44)
Balance at June 30, Definite Intangible Assets Net Book Value	2,563		2,563
Other Intangible Assets [Member]
Balance at June 30, Definite Intangible Assets Net Book Value			552
Additions, Definite Intangible Assets Net Book Value			53
Amortization, Definite Intangible Assets Accumulated Amortization/Impairment			(77)
Amortization, Definite Intangible Assets Net Book Value			(77)
Translation adjustment, Definite Intangible Assets Net Book Value			(4)
Balance at June 30, Definite Intangible Assets Net Book Value	$ 524		$ 524

Note G - Pension and Other Postretirement Benefit Plans

6 Months Ended

Dec. 27, 2019

Notes to Financial Statements

Pension and Other Postretirement Benefits Disclosure [Text Block]

G .	Pension and Other Postretirement Benefit Plans

The Company has non-contributory, qualified defined benefit plans covering substantially all domestic employees hired prior to

October 1, 2003

and certain foreign employees. Additionally, the Company provides health care and life insurance benefits for certain domestic retirees. The components of the net periodic benefit cost for the defined benefit pension plans and the other postretirement benefit plan are as follows:

	For the Quarter Ended						For the Two Quarters Ended
	12/27/2019			12/28/2018			12/27/2019			12/28/2018
Pension Benefits:
Service cost	$	194		$	251		$	406		$	497
Interest cost		889			1,083			1,794			2,175
Expected return on plan assets		(1,240	)		(1,333	)		(2,488	)		(2,664	)
Amortization of transition obligation		9			9			17			17
Amortization of prior service cost		(4	)		1			(7	)		2
Amortization of actuarial net loss		784			678			1,568			1,355
Net periodic benefit cost	$	632		$	689		$	1,290		$	1,382

Postretirement Benefits:
Service cost	$	4		$	5		$	9		$	9
Interest cost		55			76			110			152
Amortization of prior service cost		(69	)		-			(138	)		-
Amortization of actuarial net loss		-			(69	)		-			(137	)
Net periodic benefit (gain) cost	$	(10	)	$	12		$	(19	)	$	24

The Company expects to contribute approximately

$1,936

to its pension plans in fiscal

2020.

As of

December 27, 2019,

the amount of

$785

in contributions has been made.

The Company has reclassified

$548

(net of

$169

in taxes) of benefit plan adjustments from accumulated other comprehensive loss during the quarter ended

December 27, 2019,

and

$478

(net of

$146

in taxes) during the quarter ended

December 28, 2018.

The Company has reclassified

$1,105

(net of

$338

in taxes) of benefit plan adjustments from accumulated other comprehensive loss during the

two

quarters ended

December 27, 2019,

and

$949

(net of

$292

in taxes) during the

two

quarters ended

December 28, 2018.

These reclassifications are included in the computation of net periodic benefit cost.

Note O - Derivative Financial Instruments

6 Months Ended

Dec. 27, 2019

Notes to Financial Statements

Derivative Instruments and Hedging Activities Disclosure [Text Block]

O.	Derivative Financial Instruments

From time to time, the Company enters into derivative instruments to manage volatility arising from risks relating to interest rates and foreign exchange. The Company does

not

purchase, hold or sell derivative financial instruments for trading purposes. The Company’s practice is to terminate derivative transactions if the underlying asset or liability matures or is sold or terminated, or if it determines the underlying forecasted transaction is

longer probable of occurring.

The Company reports all derivative instruments on its consolidated balance sheets at fair value and establishes criteria for designation and effectiveness of transactions entered into for hedging purposes.

Interest Rate Swap Contracts

The Company has

one

outstanding interest rate swap contract as of

December 27, 2019,

which it entered into on

April 22, 2019.

It has been designated as a cash flow hedge in accordance with ASC

815,

Derivatives and Hedging.

The primary purpose of the Company’s cash flow hedging activities is to manage the potential changes in value associated with interest payments on the Company’s LIBOR-based indebtedness. The Company records gains and losses on interest rate swap contracts qualifying as cash flow hedges in accumulated other comprehensive loss to the extent that these hedges are effective and until the Company recognizes the underlying transactions in net earnings, at which time these gains and losses are recognized in interest expense on its consolidated statements of operations and comprehensive (loss) income. Cash flows from derivative financial instruments are classified as cash flows from financing activities on the consolidated statements of cash flows. These contracts generally have original maturities of greater than

months.

Net unrealized after-tax losses related to cash flow hedging activities that were included in accumulated other comprehensive loss were

$506

and

$509

as of

December 27, 2019

and

June 30, 2019,

respectively. The unrealized amounts in accumulated other comprehensive loss will fluctuate based on changes in the fair value of open contracts during each reporting period.

The Company estimates that

$144

of net unrealized losses related to cash flow hedging activities included in accumulated other comprehensive loss will be reclassified into earnings within the next

twelve

months.

For

eign Currency Forward Contracts

The Company has

outstanding foreign currency forward exchange contracts at

December 27, 2019

or at

June 30, 2019.

Fair Value of Derivative Instruments

The fair value of derivative instruments included in the condensed consolidated balance sheets were as follows:

	Balance Sheet Location	December 27, 2019		June 30, 2019
Derivative designated as hedge:
Interest rate swap	Accrued liabilities	$	144	$	122
Interest rate swap	Other long-term liabilities		518		544

The impact of the Company’s derivative instruments on the consolidated statement of operations and comprehensive (loss) income for the quarter and

two

quarters ended

December 27, 2019

and

December 28, 2018,

respectively, was as follows:

	Statement of Comprehensive	For the Quarter Ended				For the Two Quarters Ended
	Income Location	December 27, 2019		December 28, 2018		December 27, 2019		December 28, 2018
Derivative designated as hedge:
Interest rate swap	Interest expense	$	31	$	-	$	42	$	-
Interest rate swap	Unrealized income on cash flow hedge		146		-		3		-

Note H - Income Taxes

6 Months Ended

Dec. 27, 2019

Notes to Financial Statements

Income Tax Disclosure [Text Block]

H .	Income Taxes

For the

two

quarters ended

December 27, 2019

and

December 28, 2018,

the Company’s effective income tax rate was

4.3%

and

25.1%

respectively. Under the Tax Cuts and Jobs Act, a company is prohibited from recognizing certain foreign global intangible low taxed income (“GILTI”) deductions and credits when in a domestic loss position, but is required to include the foreign GILTI income inclusions. In the prior year, the Company recognized domestic income and recognized a net benefit of GILTI income inclusions and deductions which resulted in a net benefit of

0.67%.

In the current year, the benefit generated from domestic losses was reduced by the required GILTI foreign income inclusions and

GILTI deductions. The

$9,385

GILTI inclusion decreased the rate by

18.55%.

Income generated in foreign jurisdictions and other tax preference items also impacted the rate.

The Company maintains valuation allowances when it is more likely than

not

that all or a portion of a deferred tax asset will

not

be realized. Changes in valuation allowances from period to period are included in the tax provision in the period of change. In determining whether a valuation allowance is required, the Company takes into account such factors as prior earnings history, expected future earnings, carry-back and carry-forward periods, and tax strategies that could potentially enhance the likelihood of realization of a deferred tax asset. In addition, all other available positive and negative evidence is taken into consideration, including all new impacts of tax reform. The Company has evaluated the realizability of the net deferred tax assets related to its operations and based on this evaluation management has concluded that

valuation allowances are required.

Accounting policies for interim reporting require the Company to adjust its effective tax rate each quarter to be consistent with the estimated annual effective tax rate. Under this effective tax rate methodology, the Company applies an estimated annual income tax rate to its year-to-date ordinary earnings to derive its income tax provision each quarter.

The Company has approximately

$1,158

of unrecognized tax benefits, including related interest and penalties, as of

December 27, 2019,

which, if recognized, would favorably impact the effective tax rate. There was

significant change in the total unrecognized tax benefits due to the settlement of audits, the expiration of statutes of limitations or for other items during the quarter ended

December 27, 2019.

It appears possible that the amount of unrecognized tax benefits could change in the next

twelve

months due to on-going audit activity.

Annually, the Company files income tax returns in various taxing jurisdictions inside and outside the United States. In general, the tax years that remain subject to examination in foreign jurisdictions are

2013

through

2019.

The tax year open to exam in the Netherlands is

2019.

The tax years open to examination in the U.S. are for years subsequent to fiscal

2015.

The state of Wisconsin income tax audit remains ongoing for the fiscal years

2011

through

2013.

It is reasonably possible that other audit cycles will be completed during fiscal

2020.

Note K - Stockholders' Equity - Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Dec. 27, 2019	Sep. 27, 2019	Dec. 28, 2018	Sep. 28, 2018	Dec. 27, 2019	Dec. 28, 2018
Balance	$ 173,363	$ 182,818	$ 178,460	$ 143,616	$ 182,818	$ 143,616
Translation adjustment during the quarter	1,647	(2,996)	(1,786)	(561)	(1,349)	(2,347)
Release stranded tax effects
Balance	169,485	173,363	181,844	178,460	169,485	181,844
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Balance	1,425	4,439	6,549	7,085	4,439	7,085
Translation adjustment during the quarter	1,647	(3,014)	(1,773)	(536)
Release stranded tax effects
Amounts reclassified from accumulated other comprehensive income
Net current period other comprehensive (loss) income	1,647	(3,014)	(1,773)	(536)
Balance	3,072	1,425	4,776	6,549	3,072	4,776
Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest [Member]
Balance	(41,344)	(41,901)	(37,309)	(30,877)	(41,901)	(30,877)
Translation adjustment during the quarter
Release stranded tax effects				(6,903)
Amounts reclassified from accumulated other comprehensive income	548	557	478	471
Net current period other comprehensive (loss) income	548	557	478	(6,432)
Balance	(40,796)	(41,344)	$ (36,831)	$ (37,309)	(40,796)	$ (36,831)
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member]
Balance	(652)	(509)			(509)
Translation adjustment during the quarter
Amounts reclassified from accumulated other comprehensive income	146	(143)
Net current period other comprehensive (loss) income	146	(143)
Balance	$ (506)	$ (652)			$ (506)

Note E - Business Segments - Assets by Segment (Details) - USD ($) $ in Thousands	Dec. 27, 2019	Jun. 30, 2019
Segment Assets	$ 343,281	$ 346,870
Operating Segments [Member] \| Manufacturing Segment [Member]
Segment Assets	380,275	384,612
Operating Segments [Member] \| Distribution Segment [Member]
Segment Assets	51,277	46,076
Corporate, Non-Segment [Member]
Segment Assets	$ (88,271)	$ (83,818)

Note B - Inventories - Inventories (Details) - USD ($) $ in Thousands	Dec. 27, 2019	Jun. 30, 2019
Finished parts	$ 68,315	$ 57,682
Work in process	22,222	23,812
Raw materials	44,121	44,399
Total inventories	$ 134,658	$ 125,893

Note F - Stock-based Compensation (Details Textual) - USD ($)	3 Months Ended			6 Months Ended
	Dec. 27, 2019	Sep. 27, 2019	Dec. 28, 2018	Dec. 27, 2019	Dec. 28, 2018
Performance Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period				131,700	42,300
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period				3 years	3 years
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	184,800		67,000	184,800	67,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance	214,000		188,000	214,000	188,000
Share-based Payment Arrangement, Expense	$ (52,000)		$ 242,000	$ 20,000	$ 788,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Ending Balance	$ 15.24			$ 15.24
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total	$ 2,355,000			$ 2,355,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value				$ 0	$ 0
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period				180,400	35,600
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance	231,400		185,300	231,400	185,300
Share-based Payment Arrangement, Expense	$ 218,000		$ 266,000	$ 524,000	$ 516,000
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total	$ 1,982,000			1,982,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value				$ 1,241,000	$ 2,102,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period				20,500	2,800
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition		3 years
Restricted Stock [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period				1 year
Restricted Stock [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period				3 years
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		3 years
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance	38,000		38,000	38,000	38,000
Share-based Payment Arrangement, Expense	$ 81,000		$ 82,000	$ 163,000	$ 136,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Ending Balance	$ 25.77			$ 25.77
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total	$ 516,000			$ 516,000
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition				2 years

Document And Entity Information - shares	6 Months Ended
Document And Entity Information - shares	Dec. 27, 2019	Jan. 30, 2020
Document Information [Line Items]
Entity Registrant Name	TWIN DISC INC
Entity Central Index Key	0000100378
Trading Symbol	twin
Current Fiscal Year End Date	--06-30
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Common Stock, Shares Outstanding (in shares)		13,405,993
Entity Shell Company	false
Document Type	10-Q
Document Period End Date	Dec. 27, 2019
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Amendment Flag	false
Title of 12(b) Security	Common Stock (No Par Value)
Entity Interactive Data Current	Yes

Note M - Earnings Per Share (Tables)

6 Months Ended

Dec. 27, 2019

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	For the Quarter Ended						For the Two Quarters Ended
	December 27, 2019			December 28, 2018			December 27, 2019			December 28, 2018
Basic:
Net (loss) income	$	(6,466	)	$	4,079		$	(12,759	)	$	6,982
Less: Net earnings attributable to noncontrolling interest		(50	)		(6	)		(68	)		(47	)
Less: Undistributed earnings attributable to unvested shares		-			(53	)		-			(105	)
Net (loss) income available to Twin Disc shareholders		(6,516	)		4,020			(12,827	)		6,830

Weighted average shares outstanding - basic		13,164			12,909			13,135			12,233

Basic (Loss) Income Per Share:
Net (loss) income per share - basic	$	(0.49	)	$	0.31		$	(0.98	)	$	0.56

Diluted:
Net (loss) income	$	(6,466	)	$	4,079		$	(12,759	)	$	6,982
Less: Net earnings attributable to noncontrolling interest		(50	)		(6	)		(68	)		(47	)
Less: Undistributed earnings attributable to unvested shares		-			(53	)		-			(105	)
Net (loss) income available to Twin Disc shareholders		(6,516	)		4,020			(12,827	)		6,830

Weighted average shares outstanding - basic		13,164			12,909			13,135			12,233
Effect of dilutive stock awards		-			88			-			71
Weighted average shares outstanding - diluted		13,164			12,997			13,135			12,304

Diluted (Loss) Income Per Share:
Net (loss) income per share - diluted	$	(0.49	)	$	0.31		$	(0.98	)	$	0.56

Note N - Lease Liabilities

6 Months Ended

Dec. 27, 2019

Notes to Financial Statements

Leases of Lessee Disclosure [Text Block]

N.	Lease Liabilities

The Company leases certain office and warehouse space, as well as production and office equipment.

The Company determines if an arrangement is a lease at contract inception. The lease term begins upon lease commencement, which is when the Company takes possession of the asset, and

may

include options to extend or terminate the lease when it is reasonably certain that such options will be exercised. As its lease agreements typically do

not

provide an implicit rate, the Company primarily uses an incremental borrowing rate based upon the information available at lease commencement. In determining the incremental borrowing rate, the Company considers its current borrowing rate, the term of the lease, and the economic environments where the lease activity is concentrated.

The components of lease expense were as follows:

	For the Quarter Ended						For the Two Quarters Ended
	December 27, 2019			December 28, 2018			December 27, 2019			December 28, 2018
Finance lease cost:
Amortization of right-of-use assets	$	43		$	1		$	79		$	1
Interest on lease liabilities		13			-			25			-
Operating lease cost		815			850			1,596			1,730
Short-term lease cost		9			12			26			22
Variable lease cost		8			(3	)		24			5
Total lease cost		888			860			1,750			1,758
Less: Sublease income		(54	)		(1	)		(107	)		(17	)
Net lease cost	$	834		$	859		$	1,643		$	1,741

Other information related to leases was as follows:

	For the Quarter Ended				For the Two Quarters Ended
	December 27, 2019		December 28, 2018		December 27, 2019			December 28, 2018
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	805	$	850	$	1,584		$	1,725
Operating cash flows from finance leases		38		1		68			2
Financing cash flows from finance leases		13		-		25			-
Right-of-use-assets obtained in exchange for lease obligations:
Operating leases		2,073		125		2,424			12,252
Finance leases		53		-		277			-
Weighted average remaining lease term (years):
Operating leases						11.0			11.2
Finance lease						4.4			3.5
Weighted average discount rate:
Operating leases						7.4	%		7.7	%
Finance leases						6.9	%		4.0	%

Approximate future minimum rental commitments under non-cancellable leases as of

December 27, 2019

were as follows:

	Operating Leases			Finance Leases
2020	$	1,553		$	103
2021		2,598			206
2022		2,096			206
2023		1,965			198
2024		1,792			166
Thereafter		12,455			8
Total future lease payments		22,459			887
Less: Amount representing interest		(7,270	)		(123	)
Present value of future payments	$	15,189		$	764

The following table provides a summary of leases recorded on the consolidated balance sheet.

	Balance Sheet Location	December 27, 2019		June 30, 2019
Lease Assets
Operating lease right-of-use assets	Property, plant and equipment, net	$	15,180	$	14,138
Finance lease right-of-use assets	Property, plant and equipment, net		746		545

Lease Liabilities
Operating lease liabilities	Accrued liabilites	$	1,936	$	1,933
Operating lease liabilities	Lease obligations		13,253		12,197
Finance lease liabilities	Accrued liabilites		167		104
Finance lease liabilities	Lease obligations		597		449

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares $ / shares in Thousands	Dec. 27, 2019	Jun. 30, 2019
Preferred Shares, Authorized (in shares)	200,000	200,000
Preferred Shares, Issued (in shares)	0	0
Preferred Shares, No Par Value (in dollars per share)	$ 0	$ 0
Common shares, authorized (in shares)	30,000,000	30,000,000
Common shares, shares issued (in shares)	14,632,802	14,632,802
Common shares, no par value (in dollars per share)	$ 0	$ 0
Treasury Stock, Shares (in shares)	1,266,809	1,392,524

Note A - Basis of Presentation

6 Months Ended

Dec. 27, 2019

Notes to Financial Statements

Significant Accounting Policies [Text Block]

A.	Basis of Presentation

The unaudited condensed consolidated financial statements have been prepared by Twin Disc, Incorporated (the “Company”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, in the opinion of the Company, include adjustments, consisting primarily of normal recurring items, necessary for a fair statement of results for each period. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such SEC rules and regulations. The Company believes that the disclosures made are adequate to make the information presented

not

misleading. It is suggested that these financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report filed on Form

-K for

June 30, 2019.

The year-end condensed balance sheet data was derived from audited financial statements, but does

not

include all disclosures required by accounting principles generally accepted in the United States.

The consolidated financial statements and information presented herein include the financial results of Veth Propulsion Holding BV (“Veth Propulsion”), the acquisition of which was completed on

July 2, 2018.

The financial results included in this Form

-Q related to the acquisition method of accounting for the Veth Propulsion acquisition have been finalized and completed.

Recently Adopted Accounting Standards

June 2018,

the FASB issued guidance (ASU

2018

) intended to simplify the accounting for share based payments granted to nonemployees. Under the amendments in this guidance, payments to nonemployees would be aligned with the requirements for share-based payments granted to employees. The Company adopted this guidance effective

July 1, 2019.

The adoption of this guidance did

not

have a material impact on the Company’s financial statements and disclosures.

New Accounting Releases

August 2018,

the FASB issued updated guidance (ASU

2018

) as part of the disclosure framework project, which focuses on improving the effectiveness of disclosures in the notes to the financial statements. The amendments in this update modify the disclosure requirements on fair value measurements in Topic

820,

Fair Value Measurement. The amendments in this guidance are effective for fiscal years, and interim periods within those fiscal years, beginning after

December 15, 2019 (

the Company’s fiscal

2021

), with early adoption permitted. The Company is currently evaluating the potential impact of this guidance on the Company’s disclosures.

August 2018,

the FASB issued updated guidance (ASU

2018

) intended to modify the disclosure requirements for employers that sponsor defined benefit pension or postretirement plans. The amendments in this guidance are effective for fiscal years ending after

December 15, 2020 (

the Company’s fiscal

2021

), with early adoption permitted. The Company is currently evaluating the potential impact of this guidance on the Company’s disclosures.

December 2019,

the FASB issued guidance (ASU

2019

) intended to simplify the accounting for income taxes. The amendments in this guidance are effective for fiscal years, and interim periods within those fiscal years, beginning after

December 15, 2020 (

the Company’s fiscal

2022

), with early adoption permitted. The Company is currently evaluating the potential impact of this guidance on the Company’s disclosures.

Special Note Regarding Smaller Reporting Company Status

Under SEC Release

10513;

83550,

Amendments to Smaller Reporting Company Definition, the Company qualifies as a smaller reporting company and accordingly, it has scaled some of its disclosures of financial and non-financial information in this quarterly report. The Company will continue to determine whether to provide additional scaled disclosures of financial or non-financial information in future quarterly reports, annual reports and/or proxy statements if it remains a smaller reporting company under SEC rules.

Note E - Business Segments - Revenues by Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 27, 2019	Dec. 28, 2018	Dec. 27, 2019	Dec. 28, 2018
Net sales	$ 59,536	$ 78,107	$ 118,826	$ 152,796
Net income (loss)	(6,516)	4,073	(12,827)	6,935
Intersegment Eliminations [Member]
Net sales	(19,662)	(19,969)	(37,360)	(37,113)
Corporate, Non-Segment [Member]
Net income (loss)	(4,422)	(4,420)	(6,970)	(9,658)
Manufacturing Segment [Member] \| Operating Segments [Member]
Net sales	57,173	70,986	111,734	139,899
Net income (loss)	(2,936)	7,924	(7,791)	15,159
Manufacturing Segment [Member] \| Intersegment Eliminations [Member]
Net sales	(15,105)	(14,931)	(28,935)	(29,681)
Distribution Segment [Member] \| Operating Segments [Member]
Net sales	22,025	27,090	44,452	50,010
Net income (loss)	842	569	1,934	1,434
Distribution Segment [Member] \| Intersegment Eliminations [Member]
Net sales	$ (4,557)	$ (5,038)	$ (8,425)	$ (7,432)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Note E - Business Segments (Tables)

6 Months Ended

Dec. 27, 2019

Notes Tables

Reconciliation of Revenue from Segments to Consolidated [Table Text Block]

	For the Quarter Ended						For the Two Quarters Ended
	December 27, 2019			December 28, 2018			December 27, 2019			December 28, 2018
Net sales
Manufacturing segment sales	$	57,173		$	70,986		$	111,734		$	139,899
Distribution segment sales		22,025			27,090			44,452			50,010
Inter/Intra segment elimination – manufacturing		(15,105	)		(14,931	)		(28,935	)		(29,681	)
Inter/Intra segment elimination – distribution		(4,557	)		(5,038	)		(8,425	)		(7,432	)
	$	59,536		$	78,107		$	118,826		$	152,796
Net (loss) income attributable to Twin Disc
Manufacturing segment net (loss) income	$	(2,936	)	$	7,924		$	(7,791	)	$	15,159
Distribution segment net income		842			569			1,934			1,434
Corporate and eliminations		(4,422	)		(4,420	)		(6,970	)		(9,658	)
	$	(6,516	)	$	4,073		$	(12,827	)	$	6,935

Reconciliation of Assets from Segment to Consolidated [Table Text Block]

	December 27, 2019			June 30, 2019
Assets
Manufacturing segment assets	$	380,275		$	384,612
Distribution segment assets		51,277			46,076
Corporate assets and elimination of intercompany assets		(88,271	)		(83,818	)
	$	343,281		$	346,870

Revenue from External Customers by Products and Services [Table Text Block]

					Elimination of
	Manufacturing		Distribution		Intercompany Sales			Total
Industrial	$	5,892	$	1,484	$	(751	)	$	6,625
Land-based transmissions		16,559		6,238		(7,492	)		15,305
Marine and propulsion systems		34,700		13,418		(11,419	)		36,699
Other		22		885		-			907
Total	$	57,173	$	22,025	$	(19,662	)	$	59,536

					Elimination of
	Manufacturing		Distribution		Intercompany Sales			Total
Industrial	$	8,253	$	2,580	$	(1,717	)	$	9,116
Land-based transmissions		30,309		6,846		(7,377	)		29,778
Marine and propulsion systems		32,412		16,307		(10,863	)		37,856
Other		12		1,357		(12	)		1,357
Total	$	70,986	$	27,090	$	(19,969	)	$	78,107

					Elimination of
	Manufacturing		Distribution		Intercompany Sales			Total
Industrial	$	12,700	$	2,952	$	(1,564	)	$	14,088
Land-based transmissions		33,973		11,718		(14,867	)		30,824
Marine and propulsion systems		65,020		27,628		(20,928	)		71,720
Other		041		2,154		(1	)		2,194
Total	$	111,734	$	44,452	$	(37,360	)	$	118,826

					Elimination of
	Manufacturing		Distribution		Intercompany Sales			Total
Industrial	$	14,734	$	3,977	$	(2,549	)	$	16,162
Land-based transmissions		59,742		12,456		(12,784	)		59,414
Marine and propulsion systems		65,388		30,464		(21,721	)		74,131
Other		35		3,113		(59	)		3,089
Total	$	139,899	$	50,010	$	(37,113	)	$	152,796

Note O - Derivative Financial Instruments (Tables)

6 Months Ended

Dec. 27, 2019

Notes Tables

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

	Balance Sheet Location	December 27, 2019		June 30, 2019
Derivative designated as hedge:
Interest rate swap	Accrued liabilities	$	144	$	122
Interest rate swap	Other long-term liabilities		518		544

Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block]

	Statement of Comprehensive	For the Quarter Ended				For the Two Quarters Ended
	Income Location	December 27, 2019		December 28, 2018		December 27, 2019		December 28, 2018
Derivative designated as hedge:
Interest rate swap	Interest expense	$	31	$	-	$	42	$	-
Interest rate swap	Unrealized income on cash flow hedge		146		-		3		-

Note K - Shareholders' Equity

6 Months Ended

Dec. 27, 2019

Notes to Financial Statements

Stockholders' Equity Note Disclosure [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, 2019

remain authorized for purchase. The Company did

make any open market purchases of its shares during the quarters ended

December 27, 2019

and

December 28, 2018.

The following is a reconciliation of the Company’s equity balances for the

first

two

fiscal quarters of

2020

and

2019:


	Twin Disc, Inc. Shareholders’ Equity
							Accumulated
							Other						Non-
	Common			Retained			Comprehensive			Treasury			Controlling			Total
	Stock			Earnings			Income (Loss)			Stock			Interest			Equity
Balance, June 30, 2019	$	45,047		$	196,472		$	(37,971	)	$	(21,332	)	$	602		$	182,818
Net (loss) income					(6,311	)								18			(6,293	)
Translation adjustments								(3,014	)					18			(2,996	)
Benefit plan adjustments, net of tax								557									557
Unrealized loss on cash flow hedge, net of tax								(143	)								(143	)
Cash dividends														(127	)		(127	)
Compensation expense		459															459
Shares (acquired) issued, net		(2,324	)								1,412						(912	)
Balance, September 27, 2019		43,182			190,161			(40,571	)		(19,920	)		511			173,363
Net (loss) income					(6,516	)								50			(6,466	)
Translation adjustments								1,647						-			1,647
Benefit plan adjustments, net of tax								548									548
Unrealized income on cash flow hedge, net of tax								146									146
Cash dividends																	-
Compensation expense		248															248
Shares (acquired) issued, net		(1,125	)								1,124						(1	)
Balance, December 27, 2019	$	42,305		$	183,645		$	(38,230	)	$	(18,796	)	$	561		$	169,485

	Twin Disc, Inc. Shareholders’ Equity
						Accumulated
						Other						Non-
	Common			Retained		Comprehensive			Treasury			Controlling			Total
	Stock			Earnings		Income (Loss)			Stock			Interest			Equity
Balance, June 30, 2018	$	11,570		$	178,896	$	(23,792	)	$	(23,677	)	$	619		$	143,616
Net income					2,862								41			2,903
Translation adjustments							(536	)					(25	)		(561	)
Benefit plan adjustments, net of tax							471									471
Release stranded tax effects					6,903		(6,903	)								-
Cash dividends													(115	)		(115	)
Compensation expense		850														850
Common stock issued, net		32,210														32,210
Shares acquired, net		(586	)							(328	)					(914	)
Balance, September 28, 2018		44,044			188,661		(30,760	)		(24,005	)		520			178,460
Net income					4,073								6			4,079
Translation adjustments							(1,773	)					(13	)		(1,786	)
Benefit plan adjustments, net of tax							478									478
Cash dividends																-
Compensation expense		590														590
Shares (acquired) issued, net		(497	)							520						23
Balance, December 28, 2018	$	44,137		$	192,734	$	(32,055	)	$	(23,485	)	$	513		$	181,844

Reconciliations for the changes in accumulated other comprehensive income (loss), net of tax, by component for the quarters ended

September 27,

and

December 27, 2019,

and

September 28,

and

December 28, 2018

are as follows:

	Translation			Benefit Plan			Cash Flow
	Adjustment			Adjustment			Hedges
Balance at June 30, 2019	$	4,439		$	(41,901	)	$	(509	)
Translation adjustment during the quarter		(3,014	)		-			-
Amounts reclassified from accumulated other comprehensive income		-			557			(143	)
Net current period other comprehensive (loss) income		(3,014	)		557			(143	)
Balance at September 27, 2019		1,425			(41,344	)		(652	)
Translation adjustment during the quarter		1,647			-			-
Amounts reclassified from accumulated other comprehensive income		-			548			146
Net current period other comprehensive income		1,647			548			146
Balance at December 27, 2019	$	3,072		$	(40,796	)	$	(506	)

	Translation			Benefit Plan
	Adjustment			Adjustment
Balance at June 30, 2018	$	7,085		$	(30,877	)
Translation adjustment during the quarter		(536	)		-
Release stranded tax effects		-			(6,903	)
Amounts reclassified from accumulated other comprehensive income		-			471
Net current period other comprehensive loss		(536	)		(6,432	)
Balance at September 28, 2018		6,549			(37,309	)
Translation adjustment during the quarter		(1,773	)		-
Amounts reclassified from accumulated other comprehensive income		-			478
Net current period other comprehensive (loss) income		(1,773	)		478
Balance at December 28, 2018	$	4,776		$	(36,831	)

Reconciliation for the changes in benefit plan adjustments, net of tax for the quarter and

two

quarters ended

December 27, 2019

are as follows:

	Amount Reclassified			Amount Reclassified
	Quarter Ended			Two Quarters Ended
	December 27, 2019			December 27, 2019
Changes in benefit plan items
Actuarial losses	$	781	(a)	$	1,571	(a)
Transition asset and prior service benefit		(64	) (a)		(128	) (a)
Total amortization		717			1,443
Income taxes		169			338
Total reclassification net of tax	$	548		$	1,105

Reconciliation for the changes in benefit plan adjustments, net of tax for the quarter and

two

quarters ended

December 28, 2018

is as follows:

	Amount Reclassified			Amount Reclassified
	Quarter Ended			Two Quarters Ended
	December 28, 2018			December 28, 2018
Changes in benefit plan items
Actuarial losses	$	614	(a)	$	1,222	(a)
Transition asset and prior service benefit		10	(a)		19	(a)
Total amortization		624			1,241
Income taxes		146			292
Total reclassification net of tax	$	478		$	949

(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).

Note G - Pension and Other Postretirement Benefit Plans (Tables)

6 Months Ended

Dec. 27, 2019

Notes Tables

Schedule of Net Funded Status [Table Text Block]

	For the Quarter Ended						For the Two Quarters Ended
	12/27/2019			12/28/2018			12/27/2019			12/28/2018
Pension Benefits:
Service cost	$	194		$	251		$	406		$	497
Interest cost		889			1,083			1,794			2,175
Expected return on plan assets		(1,240	)		(1,333	)		(2,488	)		(2,664	)
Amortization of transition obligation		9			9			17			17
Amortization of prior service cost		(4	)		1			(7	)		2
Amortization of actuarial net loss		784			678			1,568			1,355
Net periodic benefit cost	$	632		$	689		$	1,290		$	1,382

Postretirement Benefits:
Service cost	$	4		$	5		$	9		$	9
Interest cost		55			76			110			152
Amortization of prior service cost		(69	)		-			(138	)		-
Amortization of actuarial net loss		-			(69	)		-			(137	)
Net periodic benefit (gain) cost	$	(10	)	$	12		$	(19	)	$	24

Note J - Long-term Debt

6 Months Ended

Dec. 27, 2019

Notes to Financial Statements

Debt Disclosure [Text Block]

J.	Long-term Debt

The Company’s long-term debt represents borrowings made under the credit agreement, as amended, which it entered into with BMO Harris Bank N.A, on

June 29, 2018 (

“Credit Agreement”). The borrowings consist of a term loan component (“Term Loan”) with an interest rate based on LIBOR plus an applicable margin, requiring quarterly principal payments of

$500

and maturing on

March 4, 2026,

and a revolving loan component (“Revolving Loans”) with a maximum facility of

$50,000.

The borrowings are subject to financial covenants, such as maintaining a maximum allowable ratio of total funded debt to earnings before interest, taxes, depreciation and amortization (“EBITDA”), as defined in the Credit Agreement, and are secured by substantially all of the Company’s personal property, including accounts receivable, inventory, machinery and equipment and intellectual property.

January 28, 2020,

an amendment to the Credit Agreement was finalized to increase such maximum allowable ratio from

3.00

1.00

4.00

1.00

for the quarter ended

December 27, 2019,

5.00

1.00

for the quarter ending

March 27, 2020,

4.00

1.00

for the quarter ending

June 30, 2020,

3.50

1.00

for the quarter ending

September 25, 2020

and

3.00

1.00

for quarters ending on or after

December 25, 2020.

The amendment also increased interest rate margins at the higher debt ratio levels. All other terms of the Credit Agreement were substantially unchanged. Prior to the amendment, as of the

December 27, 2019

balance sheet date, the Company’s total funded debt to EBITDA ratio was greater than

3.00

1.00.

The classification of the debt on the condensed consolidated balance sheet for the quarter ended

December 27, 2019

reflects this subsequent amendment.

The Credit Agreement, including its amendments, is more fully described in the Company’s Annual Report filed on Form

-K for

June 30, 2019,

as well as in Item

of this quarterly report.

Long-term debt at

December 27, 2019

and

June 30, 2019

consisted of the following:

	December 27, 2019			June 30, 2019
Borrowings under the Credit Agreement
Revolving loans	$	33,229		$	22,666
Term loan (due March 2026)		19,000			19,500
Other		283			325
Subtotal		52,512			42,491
Less: current maturities		(2,000	)		(2,000	)
Total long-term debt	$	50,512		$	40,491

During the

two

quarters ended

December 27, 2019,

the average interest rate was

3.58%

on the Term Loan, and

2.48%

on the Revolving Loans.

Other long-term debt pertains mainly to a financing arrangement in Europe. These liabilities carry terms of

three

five

years and implied interest rates ranging from

25%.

A total amount of

$36

in principal was paid on these liabilities during the current fiscal year.

As of

December 27, 2019,

the Company’s borrowing capacity on the Revolving Loans under the terms of the Credit Agreement was

$41,699,

and the Company had approximately

$8,470

of available borrowings. In addition to the Credit Agreement, the Company has established unsecured lines of credit that are used from time to time to secure certain performance obligations by the Company.

The Company’s borrowings described above approximate fair value at

December 27, 2019

and

June 30, 2019.

If measured at fair value in the financial statements, long-term debt (including the current portion) would be classified as Level

in the fair value hierarchy.

April 22, 2019,

the Company entered into an interest rate swap arrangement with Bank of Montreal, with an initial notional amount of

$20,000

and a maturity date of

March 4, 2026

to hedge the Term Loan. The notional amount decreases as the Term Loan balance decreases due to repayments of principal. As of

December 27, 2019,

the notional amount was

$19,000.

This swap has been designated as a cash flow hedge under ASC

815,

Derivatives and Hedging. This swap is included in the disclosures in Note O, Derivative Financial Instruments.

Significant Accounting Policies (Policies)	6 Months Ended
Significant Accounting Policies (Policies)	Dec. 27, 2019
Accounting Policies [Abstract]
New Accounting Pronouncements, Policy [Policy Text Block]	Recently Adopted Accounting Standards In June 2018, the FASB issued guidance (ASU 2018 - 07 ) intended to simplify the accounting for share based payments granted to nonemployees. Under the amendments in this guidance, payments to nonemployees would be aligned with the requirements for share-based payments granted to employees. The Company adopted this guidance effective July 1, 2019. The adoption of this guidance did not have a material impact on the Company’s financial statements and disclosures. New Accounting Releases In August 2018, the FASB issued updated guidance (ASU 2018 - 13 ) as part of the disclosure framework project, which focuses on improving the effectiveness of disclosures in the notes to the financial statements. The amendments in this update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. The amendments in this guidance are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 ( the Company’s fiscal 2021 ), with early adoption permitted. The Company is currently evaluating the potential impact of this guidance on the Company’s disclosures. In August 2018, the FASB issued updated guidance (ASU 2018 - 14 ) intended to modify the disclosure requirements for employers that sponsor defined benefit pension or postretirement plans. The amendments in this guidance are effective for fiscal years ending after December 15, 2020 ( the Company’s fiscal 2021 ), with early adoption permitted. The Company is currently evaluating the potential impact of this guidance on the Company’s disclosures. In December 2019, the FASB issued guidance (ASU 2019 - 12 ) intended to simplify the accounting for income taxes. The amendments in this guidance are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020 ( the Company’s fiscal 2022 ), with early adoption permitted. The Company is currently evaluating the potential impact of this guidance on the Company’s disclosures. Special Note Regarding Smaller Reporting Company Status Under SEC Release 33 - 10513; 34 - 83550, Amendments to Smaller Reporting Company Definition, the Company qualifies as a smaller reporting company and accordingly, it has scaled some of its disclosures of financial and non-financial information in this quarterly report. The Company will continue to determine whether to provide additional scaled disclosures of financial or non-financial information in future quarterly reports, annual reports and/or proxy statements if it remains a smaller reporting company under SEC rules.

Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 27, 2019	Dec. 28, 2018	Dec. 27, 2019	Dec. 28, 2018
Net Sales	$ 59,536	$ 78,107	$ 118,826	$ 152,796
Cost of goods sold	43,825	52,019	93,479	102,723
Gross profit	15,711	26,088	25,347	50,073
Marketing, engineering and administrative expenses	16,413	18,909	32,759	37,894
Restructuring expenses	4,248	434	4,369	607
(Loss) income from operations	(4,950)	6,745	(11,781)	11,572
Interest expense	447	417	836	1,134
Other expense (income), net	29	798	720	1,118
Non-operating income (expense)	476	1,215	1,556	2,252
(Loss) income before income taxes and noncontrolling interest	(5,426)	5,530	(13,337)	9,320
Income tax expense (benefit)	1,040	1,451	(578)	2,338
Net (loss) income	(6,466)	4,079	(12,759)	6,982
Less: Net earnings attributable to noncontrolling interest, net of tax	(50)	(6)	(68)	(47)
Net (loss) income attributable to Twin Disc	$ (6,516)	$ 4,073	$ (12,827)	$ 6,935
(Loss) income per share data:
Basic (loss) income per share attributable to Twin Disc common shareholders (in dollars per share)	$ (0.49)	$ 0.31	$ (0.98)	$ 0.56
Diluted (loss) income per share attributable to Twin Disc common shareholders (in dollars per share)	$ (0.49)	$ 0.31	$ (0.98)	$ 0.56
Weighted average shares outstanding data:
Basic shares outstanding (in shares)	13,164	12,909	13,135	12,233
Diluted shares outstanding (in shares)	13,164	12,997	13,135	12,304
Comprehensive (loss) income
Net (loss) income	$ (6,466)	$ 4,079	$ (12,759)	$ 6,982
Benefit plan adjustments, net of income taxes of $169, $146, $338 and $292, respectively	548	478	1,105	949
Foreign currency translation adjustment	1,647	(1,786)	(1,349)	(2,347)
Unrealized income on cash flow hedge, net of income taxes of ($45), $0, ($1) and $0, respectively	146		3
Comprehensive (loss) income	(4,125)	2,771	(13,000)	5,584
Less: Comprehensive (income) loss attributable to noncontrolling interest	(50)	7	(86)	(9)
Comprehensive (loss) income attributable to Twin Disc	$ (4,175)	$ 2,778	$ (13,086)	$ 5,575

Note M - Earnings Per Share (Details Textual) - shares	3 Months Ended	6 Months Ended
Note M - Earnings Per Share (Details Textual) - shares	Dec. 28, 2018	Dec. 27, 2019	Dec. 28, 2018
Performance Shares [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		214,000	134,400
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		231,400	185,300
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	33,600	38,000	16,600
Share-based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount			3,400

Note M - Earnings Per Share

6 Months Ended

Dec. 27, 2019

Notes to Financial Statements

Earnings Per Share [Text Block]

M.	Earnings Per Share

The Company calculates basic earnings per share based upon the weighted average number of common shares outstanding during the period, while the calculation of diluted earnings per share includes the dilutive effect of potential common shares outstanding during the period. The calculation of diluted earnings per share excludes all potential common shares if their inclusion would have an anti-dilutive effect. Certain restricted stock award recipients have a non-forfeitable right to receive dividends declared by the Company, and are therefore included in computing earnings per share pursuant to the

two

-class method.

The components of basic and diluted earnings per share were as follows:

	For the Quarter Ended						For the Two Quarters Ended
	December 27, 2019			December 28, 2018			December 27, 2019			December 28, 2018
Basic:
Net (loss) income	$	(6,466	)	$	4,079		$	(12,759	)	$	6,982
Less: Net earnings attributable to noncontrolling interest		(50	)		(6	)		(68	)		(47	)
Less: Undistributed earnings attributable to unvested shares		-			(53	)		-			(105	)
Net (loss) income available to Twin Disc shareholders		(6,516	)		4,020			(12,827	)		6,830

Weighted average shares outstanding - basic		13,164			12,909			13,135			12,233

Basic (Loss) Income Per Share:
Net (loss) income per share - basic	$	(0.49	)	$	0.31		$	(0.98	)	$	0.56

Diluted:
Net (loss) income	$	(6,466	)	$	4,079		$	(12,759	)	$	6,982
Less: Net earnings attributable to noncontrolling interest		(50	)		(6	)		(68	)		(47	)
Less: Undistributed earnings attributable to unvested shares		-			(53	)		-			(105	)
Net (loss) income available to Twin Disc shareholders		(6,516	)		4,020			(12,827	)		6,830

Weighted average shares outstanding - basic		13,164			12,909			13,135			12,233
Effect of dilutive stock awards		-			88			-			71
Weighted average shares outstanding - diluted		13,164			12,997			13,135			12,304

Diluted (Loss) Income Per Share:
Net (loss) income per share - diluted	$	(0.49	)	$	0.31		$	(0.98	)	$	0.56

The following potential common shares were excluded from diluted EPS for the quarter and

two

quarters ended

December 27, 2019

as the Company reported a net loss:

214.0

related to the Company’s unvested PSAs,

231.4

related to the Company’s unvested RS awards, and

38.0

related to the Company’s unvested RSUs.

The following potential common shares were excluded from diluted EPS for the quarter and

two

quarters ended

December 28, 2018

because they were anti-dilutive:

134.4

related to the Company’s unvested PSAs,

185.3

related to the Company’s unvested RS awards,

33.6

and

16.6,

respectively, related to the Company’s unvested RSUs, and

3.4

related to outstanding stock options.

Note N - Lease Liabilities - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 27, 2019	Dec. 28, 2018	Dec. 27, 2019	Dec. 28, 2018
Amortization of right-of-use assets	$ 43	$ 1	$ 79	$ 1
Interest on lease liabilities	13		25
Operating lease cost	815	850	1,596	1,730
Short-term lease cost	9	12	26	22
Variable lease cost	8	(3)	24	5
Total lease cost	888	860	1,750	1,758
Less: Sublease income	(54)	(1)	(107)	(17)
Net lease cost	$ 834	$ 859	$ 1,643	$ 1,741

Note J - Long-term Debt (Tables)

6 Months Ended

Dec. 27, 2019

Notes Tables

Schedule of Debt [Table Text Block]

	December 27, 2019			June 30, 2019
Borrowings under the Credit Agreement
Revolving loans	$	33,229		$	22,666
Term loan (due March 2026)		19,000			19,500
Other		283			325
Subtotal		52,512			42,491
Less: current maturities		(2,000	)		(2,000	)
Total long-term debt	$	50,512		$	40,491

Note C - Warranty

6 Months Ended

Dec. 27, 2019

Notes to Financial Statements

Product Warranty Disclosure [Text Block]

Warranty

The Company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its suppliers. However, its warranty obligation is affected by product failure rates, the number of units affected by the failure and the expense involved in satisfactorily addressing the situation. The warranty reserve is established based on our best estimate of the amounts necessary to settle future and existing claims on products sold as of the balance sheet date. When evaluating the adequacy of the reserve for warranty costs, management takes into consideration the term of the warranty coverage, historical claim rates and costs of repair, knowledge of the type and volume of new products and economic trends. While we believe the warranty reserve is adequate and that the judgment applied is appropriate, such amounts estimated to be due and payable in the future could differ materially from what actually transpires. The following is a listing of the activity in the warranty reserve for the quarters ended

December 27, 2019

and

December 28, 2018:

	For the Quarter Ended						For the Two Quarters Ended
	December 27, 2019			December 28, 2018			December 27, 2019			December 28, 2018
Reserve balance, beginning of period	$	7,107		$	4,667		$	3,736		$	4,407
Current period expense and adjustments		681			128			6,129			1,414
Payments or credits to customers		(2,035	)		(926	)		(4,067	)		(1,946	)
Translation		22			(26	)		(23	)		(32	)
Reserve balance, end of period	$	5,775		$	3,843		$	5,775		$	3,843

Included in the current fiscal half expense is a non-recurring warranty charge in the amount of

$3,889,

to accrue for estimated costs to resolve a unique product performance issue at certain installations.

The current portion of the warranty accrual (

$4,856

and

$3,309

as of

December 27, 2019

and

December 28, 2018,

respectively) is reflected in accrued liabilities, while the long-term portion (

$919

and

$534

as of

December 27, 2019

and

December 28, 2018,

respectively) is included in other long-term liabilities on the consolidated balance sheets.

Note E - Business Segments

6 Months Ended

Dec. 27, 2019

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

E .	Business Segments

The Company and its subsidiaries are engaged in the manufacture and sale of marine and heavy-duty off-highway power transmission equipment. Principal products include marine transmissions, azimuth drives, surface drives, propellers and boat management systems, as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches and controls systems. The Company sells to both domestic and foreign customers in a variety of market areas, principally pleasure craft, commercial and military marine markets, as well as in the energy and natural resources, government and industrial markets. The Company's worldwide sales to both domestic and foreign customers are transacted through a direct sales force and a distributor network.

The Company has

two

reportable segments: manufacturing and distribution. Its segment structure reflects the way management makes operating decisions and manages the growth and profitability of the business. It also corresponds with management’s approach of allocating resources and assessing the performance of its segments. The accounting practices of the segments are the same as those described in the summary of significant accounting policies. Transfers among segments are at established inter-company selling prices. Management evaluates the performance of its segments based on net income.

Information about the Company’s segments is summarized as follows:

	For the Quarter Ended						For the Two Quarters Ended
	December 27, 2019			December 28, 2018			December 27, 2019			December 28, 2018
Net sales
Manufacturing segment sales	$	57,173		$	70,986		$	111,734		$	139,899
Distribution segment sales		22,025			27,090			44,452			50,010
Inter/Intra segment elimination – manufacturing		(15,105	)		(14,931	)		(28,935	)		(29,681	)
Inter/Intra segment elimination – distribution		(4,557	)		(5,038	)		(8,425	)		(7,432	)
	$	59,536		$	78,107		$	118,826		$	152,796
Net (loss) income attributable to Twin Disc
Manufacturing segment net (loss) income	$	(2,936	)	$	7,924		$	(7,791	)	$	15,159
Distribution segment net income		842			569			1,934			1,434
Corporate and eliminations		(4,422	)		(4,420	)		(6,970	)		(9,658	)
	$	(6,516	)	$	4,073		$	(12,827	)	$	6,935

	December 27, 2019			June 30, 2019
Assets
Manufacturing segment assets	$	380,275		$	384,612
Distribution segment assets		51,277			46,076
Corporate assets and elimination of intercompany assets		(88,271	)		(83,818	)
	$	343,281		$	346,870

Disaggregated revenue:

The following table presents details deemed most relevant to the users of the financial statements for the quarters and

two

quarters ended

December 27, 2019

and

December 28, 2018.

Net sales by product group for the quarter ended

December 27, 2019

is summarized as follows:

					Elimination of
	Manufacturing		Distribution		Intercompany Sales			Total
Industrial	$	5,892	$	1,484	$	(751	)	$	6,625
Land-based transmissions		16,559		6,238		(7,492	)		15,305
Marine and propulsion systems		34,700		13,418		(11,419	)		36,699
Other		22		885		-			907
Total	$	57,173	$	22,025	$	(19,662	)	$	59,536

Net sales by product group for the quarter ended

December 28, 2018

is summarized as follows:

					Elimination of
	Manufacturing		Distribution		Intercompany Sales			Total
Industrial	$	8,253	$	2,580	$	(1,717	)	$	9,116
Land-based transmissions		30,309		6,846		(7,377	)		29,778
Marine and propulsion systems		32,412		16,307		(10,863	)		37,856
Other		12		1,357		(12	)		1,357
Total	$	70,986	$	27,090	$	(19,969	)	$	78,107

Net sales by product group for the

two

quarters ended

December 27, 2019

is summarized as follows:

					Elimination of
	Manufacturing		Distribution		Intercompany Sales			Total
Industrial	$	12,700	$	2,952	$	(1,564	)	$	14,088
Land-based transmissions		33,973		11,718		(14,867	)		30,824
Marine and propulsion systems		65,020		27,628		(20,928	)		71,720
Other		041		2,154		(1	)		2,194
Total	$	111,734	$	44,452	$	(37,360	)	$	118,826

Net sales by product group for the

two

quarters ended

December 28, 2018

is summarized as follows:

					Elimination of
	Manufacturing		Distribution		Intercompany Sales			Total
Industrial	$	14,734	$	3,977	$	(2,549	)	$	16,162
Land-based transmissions		59,742		12,456		(12,784	)		59,414
Marine and propulsion systems		65,388		30,464		(21,721	)		74,131
Other		35		3,113		(59	)		3,089
Total	$	139,899	$	50,010	$	(37,113	)	$	152,796

Note M - Earnings Per Share - Components of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Dec. 27, 2019	Sep. 27, 2019	Dec. 28, 2018	Sep. 28, 2018	Dec. 27, 2019	Dec. 28, 2018
Basic:
Net (loss) income	$ (6,466)	$ (6,293)	$ 4,079	$ 2,903	$ (12,759)	$ 6,982
Less: Net earnings attributable to noncontrolling interest	(50)		(6)		(68)	(47)
Less: Undistributed earnings attributable to unvested shares			(53)			(105)
Net (loss) income available to Twin Disc shareholders	$ (6,516)		$ 4,020		$ (12,827)	$ 6,830
Weighted average shares outstanding - basic (in shares)	13,164		12,909		13,135	12,233
Basic (Loss) Income Per Share:
Net (loss) income per share - basic (in dollars per share)	$ (0.49)		$ 0.31		$ (0.98)	$ 0.56
Diluted:
Net (loss) income	$ (6,466)	$ (6,293)	$ 4,079	$ 2,903	$ (12,759)	$ 6,982
Less: Net earnings attributable to noncontrolling interest	(50)		(6)		(68)	(47)
Less: Undistributed earnings attributable to unvested shares			(53)			(105)
Net (loss) income available to Twin Disc shareholders	$ (6,516)		$ 4,020		$ (12,827)	$ 6,830
Weighted average shares outstanding - basic (in shares)	13,164		12,909		13,135	12,233
Effect of dilutive stock awards (in shares)			88			71
Weighted average shares outstanding - diluted (in shares)	13,164		12,997		13,135	12,304
Diluted (Loss) Income Per Share:
Net (loss) income per share - diluted (in dollars per share)	$ (0.49)		$ 0.31		$ (0.98)	$ 0.56

Note I - Goodwill and Other Intangibles (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 27, 2019	Dec. 28, 2018	Dec. 27, 2019	Dec. 28, 2018	Jun. 30, 2019
Goodwill, Ending Balance	$ 25,561		$ 25,561		$ 25,954
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	9 years
Amortization of Intangible Assets, Total	$ 1,143	$ 583	2,272	$ 1,249
Indefinite-lived Intangible Assets (Excluding Goodwill), Ending Balance	200		200		200
European Propulsion [Member]
Goodwill, Ending Balance	23,013		23,013		23,371
European Industrial [Member]
Goodwill, Ending Balance	$ 2,548		$ 2,548		$ 2,583

Note K - Shareholders' Equity (Tables)

6 Months Ended

Dec. 27, 2019

Notes Tables

Schedule of Stockholders Equity [Table Text Block]


	Twin Disc, Inc. Shareholders’ Equity
							Accumulated
							Other						Non-
	Common			Retained			Comprehensive			Treasury			Controlling			Total
	Stock			Earnings			Income (Loss)			Stock			Interest			Equity
Balance, June 30, 2019	$	45,047		$	196,472		$	(37,971	)	$	(21,332	)	$	602		$	182,818
Net (loss) income					(6,311	)								18			(6,293	)
Translation adjustments								(3,014	)					18			(2,996	)
Benefit plan adjustments, net of tax								557									557
Unrealized loss on cash flow hedge, net of tax								(143	)								(143	)
Cash dividends														(127	)		(127	)
Compensation expense		459															459
Shares (acquired) issued, net		(2,324	)								1,412						(912	)
Balance, September 27, 2019		43,182			190,161			(40,571	)		(19,920	)		511			173,363
Net (loss) income					(6,516	)								50			(6,466	)
Translation adjustments								1,647						-			1,647
Benefit plan adjustments, net of tax								548									548
Unrealized income on cash flow hedge, net of tax								146									146
Cash dividends																	-
Compensation expense		248															248
Shares (acquired) issued, net		(1,125	)								1,124						(1	)
Balance, December 27, 2019	$	42,305		$	183,645		$	(38,230	)	$	(18,796	)	$	561		$	169,485

	Twin Disc, Inc. Shareholders’ Equity
						Accumulated
						Other						Non-
	Common			Retained		Comprehensive			Treasury			Controlling			Total
	Stock			Earnings		Income (Loss)			Stock			Interest			Equity
Balance, June 30, 2018	$	11,570		$	178,896	$	(23,792	)	$	(23,677	)	$	619		$	143,616
Net income					2,862								41			2,903
Translation adjustments							(536	)					(25	)		(561	)
Benefit plan adjustments, net of tax							471									471
Release stranded tax effects					6,903		(6,903	)								-
Cash dividends													(115	)		(115	)
Compensation expense		850														850
Common stock issued, net		32,210														32,210
Shares acquired, net		(586	)							(328	)					(914	)
Balance, September 28, 2018		44,044			188,661		(30,760	)		(24,005	)		520			178,460
Net income					4,073								6			4,079
Translation adjustments							(1,773	)					(13	)		(1,786	)
Benefit plan adjustments, net of tax							478									478
Cash dividends																-
Compensation expense		590														590
Shares (acquired) issued, net		(497	)							520						23
Balance, December 28, 2018	$	44,137		$	192,734	$	(32,055	)	$	(23,485	)	$	513		$	181,844

Reconciliation For The Changes In Accumulated Other Comprehensive Income Loss Net Of Tax By Component [Table Text Block]

	Translation			Benefit Plan			Cash Flow
	Adjustment			Adjustment			Hedges
Balance at June 30, 2019	$	4,439		$	(41,901	)	$	(509	)
Translation adjustment during the quarter		(3,014	)		-			-
Amounts reclassified from accumulated other comprehensive income		-			557			(143	)
Net current period other comprehensive (loss) income		(3,014	)		557			(143	)
Balance at September 27, 2019		1,425			(41,344	)		(652	)
Translation adjustment during the quarter		1,647			-			-
Amounts reclassified from accumulated other comprehensive income		-			548			146
Net current period other comprehensive income		1,647			548			146
Balance at December 27, 2019	$	3,072		$	(40,796	)	$	(506	)

	Translation			Benefit Plan
	Adjustment			Adjustment
Balance at June 30, 2018	$	7,085		$	(30,877	)
Translation adjustment during the quarter		(536	)		-
Release stranded tax effects		-			(6,903	)
Amounts reclassified from accumulated other comprehensive income		-			471
Net current period other comprehensive loss		(536	)		(6,432	)
Balance at September 28, 2018		6,549			(37,309	)
Translation adjustment during the quarter		(1,773	)		-
Amounts reclassified from accumulated other comprehensive income		-			478
Net current period other comprehensive (loss) income		(1,773	)		478
Balance at December 28, 2018	$	4,776		$	(36,831	)

Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]

	Amount Reclassified			Amount Reclassified
	Quarter Ended			Two Quarters Ended
	December 27, 2019			December 27, 2019
Changes in benefit plan items
Actuarial losses	$	781	(a)	$	1,571	(a)
Transition asset and prior service benefit		(64	) (a)		(128	) (a)
Total amortization		717			1,443
Income taxes		169			338
Total reclassification net of tax	$	548		$	1,105

	Amount Reclassified			Amount Reclassified
	Quarter Ended			Two Quarters Ended
	December 28, 2018			December 28, 2018
Changes in benefit plan items
Actuarial losses	$	614	(a)	$	1,222	(a)
Transition asset and prior service benefit		10	(a)		19	(a)
Total amortization		624			1,241
Income taxes		146			292
Total reclassification net of tax	$	478		$	949

Note L - Restructuring of Operations - Roll-forward of Restructuring Activity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		55 Months Ended
	Dec. 27, 2019	Dec. 28, 2018	Dec. 27, 2019	Dec. 28, 2018	Dec. 27, 2019	Jun. 30, 2019
Accrued restructuring liability	$ 1,659		$ 1,659		$ 1,659
Additions	4,248	$ 434	4,369	$ 607	$ 11,636
Payments, adjustments and write-offs during the year			(2,710)
Employee Severance [Member]
Additions	$ 1,063	$ 434	1,184	$ 607
Contract Termination [Member]
Additions			$ 3,185

Note I - Goodwill and Other Intangibles (Tables)

6 Months Ended

Dec. 27, 2019

Notes Tables

Schedule of Goodwill [Table Text Block]

	Net Book Value Rollforward									By Reporting Unit
	Gross Carrying Amount			Accumulated Amortization / Impairment			Net Book Value			European Propulsion			European Industrial
Balance at June 30, 2019	$	39,776		$	(13,822	)	$	25,954		$	23,371		$	2,583
Translation adjustment		(393	)		-			(393	)		(358	)		(35	)
Balance at December 27, 2019	$	39,383		$	(13,822	)	$	25,561		$	23,013		$	2,548

Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block]

	Net Book Value Rollforward									Net Book Value By Asset Type
	Gross Carrying Amount			Accumulated Amortization / Impairment			Net Book Value			Customer Relationships			Technology Know-how			Trade Name			Other
Balance at June 30, 2019	$	39,587		$	(14,434	)	$	25,153		$	14,843		$	7,025		$	2,733		$	552
Additions		53			-			53			-			-			-			53
Amortization		-			(2,272	)		(2,272	)		(1,500	)		(569	)		(126	)		(77	)
Translation adjustment		(509	)		-			(509	)		(334	)		(127	)		(44	)		(4	)
Balance at December 27, 2019	$	39,131		$	(16,706	)	$	22,425		$	13,009		$	6,329		$	2,563		$	524

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

Fiscal Year
2020	$	2,297
2021		3,305
2022		3,120
2023		2,960
2024		2,748
2025		2,562

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Dec. 27, 2019	Dec. 28, 2018
Cash flows from operating activities:
Net (loss) income	$ (12,759)	$ 6,982
Adjustments to reconcile net (loss) income to net cash provided (used) by operating activities, net of acquired assets:
Depreciation and amortization	5,926	4,510
Restructuring expenses	3,844
Provision for deferred income taxes	(3,901)	2,555
Stock compensation expense and other non-cash changes, net	774	1,506
Amortization of inventory fair value step-up		2,173
Net change in operating assets and liabilities	6,232	(21,505)
Net cash provided (used) by operating activities	116	(3,779)
Cash flows from investing activities:
Acquisitions of fixed assets	(6,860)	(6,676)
Proceeds from sale of fixed assets	55	63
Other, net	(129)	(129)
Acquisition of Veth Propulsion, less cash acquired		(59,651)
Net cash used by investing activities	(6,934)	(66,393)
Cash flows from financing activities:
Borrowings under revolving loan arrangement	58,993	93,675
Repayments of revolver loans	(48,130)	(62,326)
Repayments of long term debt	(603)	(24,230)
Dividends paid to noncontrolling interest	(127)	(115)
Payments of withholding taxes on stock compensation	(913)	(926)
Proceeds from issuance of common stock, net		32,210
Proceeds from exercise of stock options		36
Borrowings under term debt arrangement		35,000
Net cash provided by financing activities	9,220	73,324
Effect of exchange rate changes on cash	72	219
Net change in cash	2,474	3,371
Cash:
Beginning of period	12,362	15,171
End of period	$ 14,836	$ 18,542

Note E - Business Segments - Net Sales by Product Group (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 27, 2019	Dec. 28, 2018	Dec. 27, 2019	Dec. 28, 2018
Net Sales	$ 59,536	$ 78,107	$ 118,826	$ 152,796
Intersegment Eliminations [Member]
Net Sales	(19,662)	(19,969)	(37,360)	(37,113)
Manufacturing Segment [Member] \| Operating Segments [Member]
Net Sales	57,173	70,986	111,734	139,899
Manufacturing Segment [Member] \| Intersegment Eliminations [Member]
Net Sales	(15,105)	(14,931)	(28,935)	(29,681)
Distribution Segment [Member] \| Operating Segments [Member]
Net Sales	22,025	27,090	44,452	50,010
Distribution Segment [Member] \| Intersegment Eliminations [Member]
Net Sales	(4,557)	(5,038)	(8,425)	(7,432)
Industrial [Member]
Net Sales	6,625	9,116	14,088	16,162
Industrial [Member] \| Intersegment Eliminations [Member]
Net Sales	(751)	(1,717)	(1,564)	(2,549)
Industrial [Member] \| Manufacturing Segment [Member] \| Operating Segments [Member]
Net Sales	5,892	8,253	12,700	14,734
Industrial [Member] \| Distribution Segment [Member] \| Operating Segments [Member]
Net Sales	1,484	2,580	2,952	3,977
Land Based Transmissions [Member]
Net Sales	15,305	29,778	30,824	59,414
Land Based Transmissions [Member] \| Intersegment Eliminations [Member]
Net Sales	(7,492)	(7,377)	(14,867)	(12,784)
Land Based Transmissions [Member] \| Manufacturing Segment [Member] \| Operating Segments [Member]
Net Sales	16,559	30,309	33,973	59,742
Land Based Transmissions [Member] \| Distribution Segment [Member] \| Operating Segments [Member]
Net Sales	6,238	6,846	11,718	12,456
Marine and Propulsion Systems [Member]
Net Sales	36,699	37,856	71,720	74,131
Marine and Propulsion Systems [Member] \| Intersegment Eliminations [Member]
Net Sales	(11,419)	(10,863)	(20,928)	(21,721)
Marine and Propulsion Systems [Member] \| Manufacturing Segment [Member] \| Operating Segments [Member]
Net Sales	34,700	32,412	65,020	65,388
Marine and Propulsion Systems [Member] \| Distribution Segment [Member] \| Operating Segments [Member]
Net Sales	13,418	16,307	27,628	30,464
Other [Member]
Net Sales	907	1,357	2,194	3,089
Other [Member] \| Intersegment Eliminations [Member]
Net Sales		(12)	(1)	(59)
Other [Member] \| Manufacturing Segment [Member] \| Operating Segments [Member]
Net Sales	22	12	41	35
Other [Member] \| Distribution Segment [Member] \| Operating Segments [Member]
Net Sales	$ 885	$ 1,357	$ 2,154	$ 3,113

Note N - Lease Liabilities (Tables)

6 Months Ended

Dec. 27, 2019

Notes Tables

Lease, Cost [Table Text Block]

	For the Quarter Ended						For the Two Quarters Ended
	December 27, 2019			December 28, 2018			December 27, 2019			December 28, 2018
Finance lease cost:
Amortization of right-of-use assets	$	43		$	1		$	79		$	1
Interest on lease liabilities		13			-			25			-
Operating lease cost		815			850			1,596			1,730
Short-term lease cost		9			12			26			22
Variable lease cost		8			(3	)		24			5
Total lease cost		888			860			1,750			1,758
Less: Sublease income		(54	)		(1	)		(107	)		(17	)
Net lease cost	$	834		$	859		$	1,643		$	1,741

Operating and Finance Leases, Other Disclosures [Table Text Block]

	For the Quarter Ended				For the Two Quarters Ended
	December 27, 2019		December 28, 2018		December 27, 2019			December 28, 2018
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	805	$	850	$	1,584		$	1,725
Operating cash flows from finance leases		38		1		68			2
Financing cash flows from finance leases		13		-		25			-
Right-of-use-assets obtained in exchange for lease obligations:
Operating leases		2,073		125		2,424			12,252
Finance leases		53		-		277			-
Weighted average remaining lease term (years):
Operating leases						11.0			11.2
Finance lease						4.4			3.5
Weighted average discount rate:
Operating leases						7.4	%		7.7	%
Finance leases						6.9	%		4.0	%

Schedule of Future Minimum Rental Payments for Operating Leases and Finance Lease, Liability, Maturity [Table Text Block]

	Operating Leases			Finance Leases
2020	$	1,553		$	103
2021		2,598			206
2022		2,096			206
2023		1,965			198
2024		1,792			166
Thereafter		12,455			8
Total future lease payments		22,459			887
Less: Amount representing interest		(7,270	)		(123	)
Present value of future payments	$	15,189		$	764

Assets and Liabilities, Lessee [Table Text Block]

	Balance Sheet Location	December 27, 2019		June 30, 2019
Lease Assets
Operating lease right-of-use assets	Property, plant and equipment, net	$	15,180	$	14,138
Finance lease right-of-use assets	Property, plant and equipment, net		746		545

Lease Liabilities
Operating lease liabilities	Accrued liabilites	$	1,936	$	1,933
Operating lease liabilities	Lease obligations		13,253		12,197
Finance lease liabilities	Accrued liabilites		167		104
Finance lease liabilities	Lease obligations		597		449

Note G - Pension and Other Postretirement Benefit Plans (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 27, 2019	Dec. 28, 2018	Dec. 27, 2019	Dec. 28, 2018
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, after Tax	$ 548	$ 478	$ 1,105	$ 949
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, Tax	169	$ 146	338	$ 292
Pension Plan [Member]
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year	$ 1,936		1,936
Defined Benefit Plan, Plan Assets, Contributions by Employer			$ 785

Note O - Derivative Financial Instruments (Details Textual) $ in Thousands	6 Months Ended
	Dec. 27, 2019 USD ($)	Sep. 27, 2019 USD ($)	Jun. 30, 2019 USD ($)	Dec. 28, 2018 USD ($)	Sep. 28, 2018 USD ($)	Jun. 30, 2018 USD ($)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance	$ 169,485	$ 173,363	$ 182,818	$ 181,844	$ 178,460	$ 143,616
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months	144
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance	$ (506)	$ (652)	$ (509)
Interest Rate Swap [Member]
Derivative, Number of Instruments Held, Total	1
Foreign Exchange Forward [Member]
Derivative, Number of Instruments Held, Total	0		0

Note C - Warranty - Warranty (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 27, 2019	Dec. 28, 2018	Dec. 27, 2019	Dec. 28, 2018
Reserve balance	$ 7,107	$ 4,667	$ 3,736	$ 4,407
Current period expense and adjustments	681	128	6,129	1,414
Payments or credits to customers	(2,035)	(926)	(4,067)	(1,946)
Translation	22	(26)	(23)	(32)
Reserve balance	$ 5,775	$ 3,843	$ 5,775	$ 3,843

Note J - Long-term Debt - Long-term Debt (Details) - USD ($) $ in Thousands	Dec. 27, 2019	Jun. 30, 2019
Long-term debt	$ 52,512	$ 42,491
Less: current maturities	(2,000)	(2,000)
Total long-term debt	50,512	40,491
Revolving Loan [Member]
Long-term debt	33,229	22,666
Term Loan [Member]
Long-term debt	19,000	19,500
Other Long-Term Debt [Member]
Long-term debt	$ 283	$ 325

Note N - Lease Liabilities - Other Information Related to Leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 27, 2019	Dec. 28, 2018	Dec. 27, 2019	Dec. 28, 2018
Operating cash flows from operating leases	$ 805	$ 850	$ 1,584	$ 1,725
Operating cash flows from finance leases	38	1	68	2
Financing cash flows from finance leases	13		25
Right-of-use-assets obtained in exchange for lease obligations: Operating leases	2,073	125	2,424	12,252
Right-of-use-assets obtained in exchange for lease obligations: Finance leases	$ 53		$ 277
Weighted average remaining lease term (years): Operating leases (Year)	11 years	11 years 73 days	11 years	11 years 73 days
Weighted average remaining lease term (years): Finance lease (Year)	4 years 146 days	3 years 182 days	4 years 146 days	3 years 182 days
Weighted average discount rate: Operating leases	7.40%	7.70%	7.40%	7.70%
Weighted average discount rate: Finance leases	6.90%	4.00%	6.90%	4.00%

Note D - Contingencies

6 Months Ended

Dec. 27, 2019

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

D .	Contingencies

The Company is involved in litigation of which the ultimate outcome and liability to the Company, if any, is

not

presently determinable. Management believes that final disposition of such litigation will

not

have a material impact on the Company’s results of operations, financial position or cash flows.

Note E - Business Segments (Details Textual)	6 Months Ended
Note E - Business Segments (Details Textual)	Dec. 27, 2019
Number of Reportable Segments	2

Note N - Lease Liabilities - Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 27, 2019	Jun. 30, 2019
Operating lease liabilities	$ 13,850	$ 12,646
Property, Plant and Equipment, Net [Member]
Operating lease right-of-use assets	15,180	14,138
Finance lease right-of-use assets	746	545
Accrued Liabilities [Member]
Operating lease liabilities	1,936	1,933
Finance lease liabilities	167	104
Lease Obligation [Member]
Operating lease liabilities	13,253	12,197
Finance lease liabilities	$ 597	$ 449

Note L - Restructuring of Operations (Tables)

6 Months Ended

Dec. 27, 2019

Notes Tables

Restructuring and Related Costs [Table Text Block]

Accrued restructuring liability, June 30, 2019	$	-
Additions related to workforce reduction		1,184
Additions related to program termination		3,185
Payments, adjustments and write-offs during the year		(2,710	)
Accrued restructuring liability, December 27, 2019	$	1,659

Note F - Stock-based Compensation

6 Months Ended

Dec. 27, 2019

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

F .	Stock-Based Compensation

Performance Stock Awards (“PSA”)

During the

first

half of fiscal

2020

and

2019,

the Company granted a target number of

131.7

and

42.3

PSAs, respectively, to various employees of the Company, including executive officers. The fiscal

2020

PSAs will vest if the Company achieves performance-based target objectives relating to average return on invested capital, average annual sales and average annual Earnings Per Share (“EPS”) (as defined in the PSA Grant Agreement), in the cumulative

three

fiscal year period ending

June 30, 2022.

These PSAs are subject to adjustment if the Company’s return on invested capital, net sales, and EPS for the period falls below or exceeds the specified target objective, and the maximum number of performance shares that can be awarded if the target objective is exceeded is

184.8.

Based upon actual results to date, the Company is currently accruing compensation expense for these PSAs.

The fiscal

2019

PSAs will vest if the Company achieves performance-based target objectives relating to average return on invested capital, average annual sales and average annual EPS (as defined in the PSA Grant Agreement), in the cumulative

three

fiscal year period ending

June 30, 2021.

67.0.

Based upon actual results to date, the Company is currently accruing compensation expense for the average annual sales component for these PSAs. The Company is

not

accruing compensation expense for the average return on invested capital and average annual EPS components for these PSAs.

There were

214.0

and

188.0

unvested PSAs outstanding at

December 27, 2019

and

December 28, 2018,

respectively. The fair value of the PSAs (on the date of grant) is expensed over the performance period for the shares that are expected to ultimately vest. Compensation expense of (

$52

) and

$242

was recognized for the quarters ended

December 27, 2019

and

December 28, 2018,

respectively, related to PSAs. Compensation expense of

$20

and

$788

was recognized for the

two

quarters ended

December 27, 2019

and

December 28, 2018,

respectively, related to PSAs. The weighted average grant date fair value of the unvested awards at

December 27, 2019

was

$15.24.

December 27, 2019,

the Company had

$2,355

of unrecognized compensation expense related to the unvested shares that would vest if the specified target objective was achieved for the fiscal

2020,

2019

and

2018

awards. The total fair value of PSAs vested as of

December 27, 2019

and

December 28, 2018

was

$0.

Restricted Stock Awards (“RS”)

The Company has unvested RS awards outstanding that will vest if certain service conditions are fulfilled. The fair value of the RS grants is recorded as compensation expense over the vesting period, which is generally

years. During the

first

half of fiscal

2020

and

2019,

the Company granted

180.4

and

35.6

service based restricted shares, respectively, to employees and non-employee directors. There were

231.4

and

185.3

unvested shares outstanding at

December 27, 2019

and

December 28, 2018,

respectively. A total of

20.5

and

2.8

shares of restricted stock were forfeited during the

two

quarters ended

December 27, 2019

and

December 28, 2018,

respectively. Compensation expense of

$218

and

$266

was recognized for the quarters ended

December 27, 2019

and

December 28, 2018,

respectively. Compensation expense of

$524

and

$516

was recognized for the

two

quarters ended

December 27, 2019

and

December 28, 2018,

respectively. The total fair value of restricted stock grants vested as of

December 27, 2019

and

December 28, 2018

was

$1,241

and

$2,102,

respectively. As of

December 27, 2019,

the Company had

$1,982

of unrecognized compensation expense related to restricted stock which will be recognized over the next

three

years.

Restricted Stock

Unit

Awards (“RS

”)

Under the

2018

Long Term Incentive Plan, the Company has been authorized to issue RSUs. The RSUs entitle the employee to shares of common stock of the Company if the employee remains employed by the Company through a specified date, generally

three

years from the date of grant. During the

first

half of fiscal

2019,

the Company granted

38.0

RSUs to various employees of the Company, including executive officers. The fair value of the RSUs (on the date of grant) is recorded as compensation expense over the vesting period. There were

38.0

unvested RSUs outstanding at

December 27, 2019

and at

December 28, 2018.

Compensation expense of

$81

and

$82

was recognized for the quarters ended

December 27, 2019

and

December 28, 2018,

respectively. Compensation expense of

$163

and

$136

was recognized for the

two

quarters ended

December 27, 2019

and

December 28, 2018,

respectively. The weighted average grant date fair value of the unvested awards at

December 27, 2019

was

$25.77.

As of

December 27, 2019,

the Company had

$516

of unrecognized compensation expense related to restricted stock which will be recognized over the next

two

years.

Note G - Pension and Other Postretirement Benefit Plans - Net Funded Status of Pension and Postretirement Plans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 27, 2019	Dec. 28, 2018	Dec. 27, 2019	Dec. 28, 2018
Pension Plan [Member]
Service cost	$ 194	$ 251	$ 406	$ 497
Interest cost	889	1,083	1,794	2,175
Expected return on plan assets	1,240	1,333	2,488	2,664
Amortization of transition obligation	(9)	(9)	(17)	(17)
Amortization of prior service cost	(4)	1	(7)	2
Amortization of actuarial net loss	784	678	1,568	1,355
Net periodic benefit cost	632	689	1,290	1,382
Other Postretirement Benefits Plan [Member]
Service cost	4	5	9	9
Interest cost	55	76	110	152
Amortization of prior service cost	(69)		(138)
Amortization of actuarial net loss		(69)		(137)
Net periodic benefit cost	$ (10)	$ 12	$ (19)	$ 24