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Note 10 - Derivative Financial Instruments | 3 Months Ended
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Sep. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 10) Derivative Financial Instruments Interest Rate Swaps From time to time as dictated by market opportunities, the Company enters into interest rate swap agreements designed to manage exposure to interest rates on the Company’s variable rate indebtedness. The Company recognizes all derivatives on its balance sheet at fair value. The Company has designated its interest rate swap agreements, including those that are forward-dated, as cash flow hedges, and changes in the fair value of the swaps are recognized in other comprehensive income until the hedged items are recognized in earnings. Hedge ineffectiveness, if any, associated with the swaps will be reported by the Company in interest expense. The Company’s effective swap agreements convert the base borrowing rate on $35 million of debt due under our revolving credit agreement from a variable rate equal to LIBOR to a weighted average fixed rate of 1.63% at September 30, 2015. The fair value of the swaps recognized in accrued expenses and in other comprehensive income is as follows (in thousands, except percentages):
|  |  |  |  |  |  |  |  |  |  | Fair Value |
Effective Date |  | Notional Amount |  |  | Fixed Rate |  | Maturity |  | September 3 0, 2015 |  |  | June 30, 2 01 5 |
March 15, 2012 |  |  | 10,000 |  |  |  | 2.745 | % | March 15, 2016 |  | $ | (126 | ) |  | $ | (186 | )
December 19, 2014 |  |  | 20,000 |  |  |  | 1.180 | % | December 19, 2017 |  |  | (226 | ) |  |  | (140 | )
December 19, 2014 |  |  | 5,000 |  |  |  | 1.200 | % | December 19, 2017 |  |  | (57 | ) |  |  | (36 | )
December 19, 2015 |  |  | 10,000 |  |  |  | 2.005 | % | December 19, 2019 |  |  | (338 | ) |  |  | (150 | )
December 18, 2015 |  |  | 15,000 |  |  |  | 1.460 | % | December 19, 2018 |  |  | (227 | ) |  |  | (39 | )
|  |  |  |  |  |  |  |  |  |  | $ | (974 | ) |  | $ | (551 | )
The Company reported no losses for the three months ended September 30, 2015, as a result of hedge ineffectiveness. Future changes in these swap arrangements, including termination of the agreements, may result in a reclassification of any gain or loss reported in accumulated other comprehensive income (loss) into earnings as an adjustment to interest expense. Accumulated other comprehensive income (loss) related to these instruments is being amortized into interest expense concurrent with the hedged exposure. Foreign Exchange Contracts Forward foreign currency exchange contracts are used to limit the impact of currency fluctuations on certain anticipated foreign cash flows, such as foreign sales, foreign purchases of materials, and loan payments to and from subsidiaries. The Company enters into such contracts for hedging purposes only. For hedges of intercompany loan payments, the Company has not elected hedge accounting due to the general short-term nature and predictability of the transactions, and records derivative gains and losses directly to the statement of operations. At September 30, 2015 and June 30, 2015, the Company had outstanding forward contracts related to hedges of intercompany loans with net unrealized gain (losses) of $0.1 million and $0.7 million, respectively, which approximate the unrealized gains and losses on the related loans. The notional amounts of the Company’s forward contracts, by currency, are as follows:
|  | Notional Amount |
|  | (in native currency) |
Currency |  | September 30, 2015 |  |  | June 30, 2015 |
Euro |  |  | 4,270,320 |  |  |  | 10,134,797 |
British Pound Sterling |  |  | 120,491 |  |  |  | 1,730,542 |
The table below presents the fair value of derivative financial instruments as well as their classification on the balance sheet (in thousands):
| Asset Derivatives |
| September 3 0, 2015 |  | June 30, 2 01 5 |
Derivative designated as | Balance |  |  |  |  | Balance |  |  |  |
hedging instruments | Sheet |  |  |  |  | Sheet |  |  |  |
| Line Item |  | Fair Value |  | Line Item |  | Fair Value |
Foreign exchange contracts | Other Assets |  | $ | 200 |  | Other Assets |  | $ | 844 |
| Liability Derivatives |
| September 3 0, 2015 |  | June 30, 201 5 |
Derivative designated as | Balance |  |  |  |  | Balance |  |  |  |
hedging instruments | Sheet |  |  |  |  | Sheet |  |  |  |
| Line Item |  | Fair Value |  | Line Item |  | Fair Value |
Interest rate swaps | Accrued Liabilities |  | $ | 974 |  | Accrued Liabilities |  | $ | 551 |
Foreign exchange contracts | Accrued Liabilities |  |  | 80 |  | Accrued Liabilities |  |  | 193 |
|  |  | $ | 1,054 |  |  |  | $ | 744 |
The table below presents the amount of gain (loss) recognized in comprehensive income on our derivative financial instruments (effective portion) designated as hedging instruments and their classification within comprehensive income for the periods ended (in thousands):
|  | Three Months Ended |
|  | September 3 0, |
|  | 2015 |  |  | 2014 |
Interest rate swaps |  | $ | (552 | ) |  | $ | (2 | )
Foreign exchange contracts |  |  | 74 |  |  |  | - |
|  | $ | (478 | ) |  | $ | (2 | )
The table below presents the amount reclassified from accumulated other comprehensive income (loss) to Net Income for the periods ended (in thousands):
Details about Accumulated |  |  |  |  |  |  |  |  |
Other Comprehensive |  | Three Months Ended |  | Affected line item
Income (Loss) Components |  | September 3 0, |  | in the Statements
|  | 2015 |  |  | 2014 |  | of Operations
Interest rate swaps |  | $ | 128 |  |  | $ | 258 |  | Interest expense
Foreign exchange contracts |  |  | (8 | ) |  |  | - |  | Cost of Sales
|  | $ | 120 |  |  | $ | 258 |  |

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