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Note J - Business Segments and Foreign Operations | 12 Months Ended
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Jun. 30, 2021
Notes to Financial Statements |
Segment Reporting Disclosure [Text Block] | J. BUSINESS SEGMENTS AND FOREIGN OPERATIONS 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, energy and natural resources, government, and industrial markets. Net sales by product group is summarized as follows:
|  | 2021 |  |  | 2020 |
Industrial |  | $ | 23,454 |  |  | $ | 26,343 |
Land-based transmissions |  |  | 58,421 |  |  |  | 62,697 |
Marine and propulsion systems |  |  | 127,243 |  |  |  | 152,501 |
Other |  |  | 9,463 |  |  |  | 5,297 |
Total |  | $ | 218,581 |  |  | $ | 246,838 |
Industrial products include clutches, power take-offs and pump drives sold to the agriculture, recycling, construction and oil and gas markets. The land based transmission products include applications for oil field and natural gas, military and airport rescue and fire fighting. The marine and propulsion systems include marine transmission, azimuth drives, controls, surface drives, propellers and boat management systems for the global commercial marine, pleasure craft and patrol boat markets. Other includes non-Twin Disc manufactured product sold through Company-owned distribution entities. 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 earnings. Information about the Company's segments, before intercompany eliminations, is summarized as follows:
2021 |  | Manufacturing |  |  | Distribution |  |  | Total |
Net Sales |  | $ | 191,510 |  |  | $ | 100,221 |  |  | $ | 291,731 |
Intra-segment sales |  |  | 9,436 |  |  |  | 14,746 |  |  |  | 24,182 |
Inter-segment sales |  |  | 44,575 |  |  |  | 4,393 |  |  |  | 48,968 |
Interest income |  |  | 172 |  |  |  | 17 |  |  |  | 189 |
Interest expense |  |  | 2,449 |  |  |  | 1 |  |  |  | 2,450 |
Income taxes |  |  | (980 | ) |  |  | 189 |  |  |  | (791 | )
Depreciation and amortization |  |  | 10,455 |  |  |  | 412 |  |  |  | 10,867 |
Net income attributable to Twin Disc |  |  | 11,016 |  |  |  | 105 |  |  |  | 11,121 |
Assets |  |  | 364,379 |  |  |  | 46,956 |  |  |  | 411,335 |
Expenditures for segment assets |  |  | 3,500 |  |  |  | 188 |  |  |  | 3,688 |
2020 |  | Manufacturing |  |  | Distribution |  |  | Total |
Net Sales |  | $ | 227,565 |  |  | $ | 95,824 |  |  | $ | 323,389 |
Intra-segment sales |  |  | 14,230 |  |  |  | 12,889 |  |  |  | 27,119 |
Inter-segment sales |  |  | 43,854 |  |  |  | 5,578 |  |  |  | 49,432 |
Interest income |  |  | 346 |  |  |  | 22 |  |  |  | 368 |
Interest expense |  |  | 2,128 |  |  |  | - |  |  |  | 2,128 |
Income taxes |  |  | (2,027 | ) |  |  | 268 |  |  |  | (1,759 | )
Depreciation and amortization |  |  | 11,151 |  |  |  | 379 |  |  |  | 11,530 |
Net (loss) income attributable to Twin Disc |  |  | (31,603 | ) |  |  | 553 |  |  |  | (31,050 | )
Assets |  |  | 365,417 |  |  |  | 43,118 |  |  |  | 408,535 |
Expenditures for segment assets |  |  | 9,615 |  |  |  | 734 |  |  |  | 10,349 |
The following is a reconciliation of reportable segment net sales and net income (loss) to the Company’s consolidated totals:
|  | 2021 |  |  | 2020 |
Net sales: |  |  |  |  |  |  |  |
Total net sales from reportable segments |  | $ | 291,731 |  |  | $ | 323,389 |
Elimination of inter-company sales |  |  | (73,150 | ) |  |  | (76,551 | )
Total consolidated net sales |  | $ | 218,581 |  |  | $ | 246,838 |
Net income (loss) attributable to Twin Disc: |  |  |  |  |  |  |  |
Total net income (loss) from reportable segments |  | $ | 11,121 |  |  | $ | (31,050 | )
Other adjustments and corporate expenses |  |  | (40,840 | ) |  |  | (8,767 | )
Total consolidated net loss attributable to Twin Disc |  | $ | (29,719 | ) |  | $ | (39,817 | )
Corporate expenses pertain to certain costs that are not allocated to the reportable segments, primarily consisting of unallocated corporate overhead costs, including administrative functions and global functional expenses. Other significant items:
| Segment |  |  |  |  | Consolidated |
| Totals |  | Adjustments |  | Totals |
2021 |  |  |  |  |  |  |  |  |
Interest income | $ | 189 |  | $ | (170 | ) | $ | 19 |
Interest expense |  | 2,450 |  |  | (92 | ) |  | 2,358 |
Income taxes |  | (791 | ) |  | 20,471 |  |  | 19,680 |
Depreciation and amortization |  | 10,867 |  |  | 376 |  |  | 11,243 |
Assets |  | 411,335 |  |  | (135,922 | ) |  | 275,413 |
Expenditures for segment assets |  | 3,688 |  |  | 776 |  |  | 4,464 |
2020 |  |  |  |  |  |  |  |  |
Interest income | $ | 368 |  | $ | (290 | ) | $ | 78 |
Interest expense |  | 2,128 |  |  | (268 | ) |  | 1,860 |
Income taxes |  | (1,759 | ) |  | (2,410 | ) |  | (4,169 | )
Depreciation and amortization |  | 11,530 |  |  | 395 |  |  | 11,925 |
Assets |  | 408,535 |  |  | (114,408 | ) |  | 294,127 |
Expenditures for segment assets |  | 10,349 |  |  | 350 |  |  | 10,699 |
All adjustments represent inter-company eliminations and corporate amounts. Geographic information about the Company is summarized as follows:
|  | 2021 |  |  | 2020 |
Net sales |  |  |  |  |  |  |  |
United States |  | $ | 64,344 |  |  | $ | 83,771 |
Netherlands |  |  | 33,026 |  |  |  | 39,501 |
China |  |  | 25,790 |  |  |  | 26,354 |
Australia |  |  | 17,963 |  |  |  | 12,438 |
Italy |  |  | 16,041 |  |  |  | 11,802 |
Austria |  |  | 7,798 |  |  |  | 12,552 |
Other countries |  |  | 53,619 |  |  |  | 60,420 |
Total |  | $ | 218,581 |  |  | $ | 246,838 |
Net sales by geographic region are based on product shipment destination. Long-lived assets primarily pertain to property, plant and equipment and exclude goodwill, other intangibles, and deferred income taxes. They are summarized as follows:
Long-lived assets |  | 2021 |  |  | 2020 |
United States |  | $ | 34,629 |  |  | $ | 41,996 |
Netherlands |  |  | 12,447 |  |  |  | 12,659 |
Belgium |  |  | 8,575 |  |  |  | 8,363 |
Italy |  |  | 1,525 |  |  |  | 1,697 |
Switzerland |  |  | 503 |  |  |  | 6,804 |
Other countries |  |  | 5,776 |  |  |  | 5,205 |
Total |  | $ | 63,455 |  |  | $ | 76,724 |
There were no customers that accounted for 10% of consolidated net sales in fiscal 2021. The Company had one distributor customer, primarily of its manufacturing segment, that accounted for 10% of total Company sales for fiscal 2020. Disaggregated revenue: The following tables present details deemed most relevant to the users of the financial statements for the years ended June 30, 2021 and June 30, 2020. Net sales by product group for the year ended June 30, 2021 is summarized as follows:
|  |  |  |  |  |  |  |  |  | Elimination of |  |  |  |  |
|  | Manufacturing |  |  | Distribution |  |  | Intercompany Sales |  |  | Total |
Industrial |  | $ | 22,621 |  |  | $ | 5,494 |  |  | $ | (4,661 | ) |  | $ | 23,454 |
Land-based transmissions |  |  | 52,441 |  |  |  | 26,003 |  |  |  | (20,023 | ) |  |  | 58,421 |
Marine and propulsion systems |  |  | 116,371 |  |  |  | 59,276 |  |  |  | (48,404 | ) |  |  | 127,243 |
Other |  |  | 77 |  |  |  | 9,448 |  |  |  | (62 | ) |  |  | 9,463 |
Total |  | $ | 191,510 |  |  | $ | 100,221 |  |  | $ | (73,150 | ) |  | $ | 218,581 |
Net sales by product group for the year ended June 30, 2020 is summarized as follows:
|  |  |  |  |  |  |  |  |  | Elimination of |  |  |  |  |
|  | Manufacturing |  |  | Distribution |  |  | Intercompany Sales |  |  | Total |
Industrial |  | $ | 24,143 |  |  | $ | 5,634 |  |  | $ | (3,434 | ) |  | $ | 26,343 |
Land-based transmissions |  |  | 63,523 |  |  |  | 25,699 |  |  |  | (26,525 | ) |  |  | 62,697 |
Marine and propulsion systems |  |  | 139,833 |  |  |  | 59,212 |  |  |  | (46,544 | ) |  |  | 152,501 |
Other |  |  | 66 |  |  |  | 5,279 |  |  |  | (48 | ) |  |  | 5,297 |
Total |  | $ | 227,565 |  |  | $ | 95,824 |  |  | $ | (76,551 | ) |  | $ | 246,838 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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