2 & & & & TABLE OF CONTENTS & TWIN DISC, INC. - 25 & Item 9B. Other Information. 26 & & & & PART III. & & & & & & & This information is also available from the Company upon request. John H. Batten, Chief Executive Officer. Mr. Batten joined Twin Disc in 1996 as an Application Engineer. & However, there is consensus that the impact will be adverse. The $5.8 million GILTI inclusion and deemed taxes decreased the rate by 2.8%. The PPP Loan to the Company is administered by BMO. The PPP Loan has a two-year term and bears interest at a rate of 1.0% per annum. Monthly principal and interest payments are deferred for six months. Inventory & Inventories are valued at the lower of cost or net realizable value. This assumption drives its planning for volumes, mix, and pricing. We conducted our audit in accordance with the standards of the PCAOB. We believe that our audits provide a reasonable basis for our opinion. & Gains and losses from foreign currency transactions are included in earnings. The use of financial instruments for trading purposes is prohibited. The Company uses derivative financial instruments to manage certain financial risks. See Note E, Goodwill and Other Intangibles, for additional information. & b) The Company is not able to deduct any of the goodwill for tax purposes. & The magnitude and duration is unknown. The tax impact of this charge is to increase the income tax (benefit) by $1,199. & Other: & Other long-term debt pertains mainly to a financing arrangement in Europe. As of June 30, 2020 and 2019, 315,000 shares remain authorized for purchase. & The Company has two reportable segments: manufacturing and distribution.& There were 37,950 unvested RSUs outstanding at June 30, 2020 and June 30, 2019. In the case of Directors, benefits are based on years of service on the Board. The U.S. plans have a long-term return assumption of 6.10%. The weighted average long-term return across all plans is 5.89%. & Federal NOLs generated in fiscal 2020 of $7,655 have an indefinite carryover period. This could result in a significant change to the unrecognized tax benefits. Incorporated by reference to Exhibit 10.3 of the Company's Form 8-K dated July 3, 2018). Twin Disc International, S.P.R.L. (a Belgian corporation) & & 2. All of the above subsidiaries are included in the consolidated financial statements. & &
