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Note 9 - Derivative Financial Instruments
 12 Months Ended
Jun. 30, 2016
Notes to Financial Statements  
Derivative Instruments and Hedging Activities Disclosure [Text Block]
9. Derivative Financial Instruments
 
Interest Rate Swaps
 
In order to manage our interest rate exposure, we are party to $50.0 million of active floating to fixed rate swaps. These swaps convert our interest payments from LIBOR to a weighted average rate of 1.43% at June 30, 2016.
 
The fair value of the swaps recognized in accrued liabilities and in other comprehensive income (loss) at June 30, 2016 and 2015 is as follows (in thousands):
 
 
 
 
 
 
 
 
 
 
Fair Value at June 30,
 
Effective Date
 
Notional
Amount
 
 
Fixed
Interest Rate
 
Maturity
 
2016
 
 
2015
 
March 15, 2012
   $ 10,000       2.75 %
March 15, 2016
   $ -     $ (186 )
December 19, 2014
     20,000       1.18 %
December 19, 2017
     (201 )     (140 )
December 19, 2014
     5,000       1.20 %
December 19, 2017
     (52 )     (36 )
December 18, 2015
     15,000       1.46 %
December 19, 2018
     (325 )     (39 )
December 19, 2015
     10,000       2.01 %
December 19, 2019
     (460 )     (150 )
                      $ (1,038 )   $ (551 )
 
The Company reported no losses for the years ended June 30, 2016, 2015, and 2014, 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 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 consolidated statement of operations. At June 30, 2016 and 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 or losses on the related loans. The contracts have maturity dates ranging from 2017-2019, which correspond to the related intercompany loans. The notional amounts of these instruments, by currency, are as follows:
 
Currency
 
2016
 
 
2015
 
Euro
     2,476,683       10,134,797  
Pound Sterling
     593,799       1,730,542  
 
The table below presents the fair value of derivative financial instruments as well as their classification on the balance sheet at June 30, (in thousands):
 
 
Asset Derivatives
 
 
201
6
 
201
5
 
Derivative designated as
hedging instruments
Balance
Sheet
 
 
 
 
Balance
Sheet
 
 
 
 
 
Line Item
 
Fair Value
 
Line Item
 
Fair Value
 
Foreign exchange contracts
Other Assets
   $ 11  
Other Assets
   $ 844  
 
 
Liability Derivatives
 
 
2016
 
2015
 
Derivative designated as
hedging instruments
Balance
Sheet
 
 
 
 
Balance
Sheet
 
 
 
 
 
Line Item
 
Fair Value
 
Line Item
 
Fair Value
 
Interest rate swaps
Accrued Liabilities
   $ 1,038  
Accrued Liabilities
   $ 551  
Foreign exchange contracts
Accrued Liabilities
     94  
Accrued Liabilities
     193  
      $ 1,132       $ 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):
 
 
 
2016
 
 
2015
 
 
2014
 
Interest rate swaps
   $ (743 )   $ (533 )   $ (194 )
Foreign exchange contracts
     (267 )     (154 )     -  
    $ (1,010 )   $ (687 )   $ (194 )
 
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
Income (Loss) Components
 
2016
 
 
2015
 
 
2014
 
  
Affected line item
in the Statements
of Operations
Interest rate swaps
   $ 567     $ 1,034     $ 1,031    
Interest expense
Foreign exchange contracts
     112       -       -    
Cost of goods sold
    $ 679     $ 1,034     $ 1,031