Note 1 - Basis of Presentation
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9 Months Ended |
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Mar. 31, 2013
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Business Description and Basis of Presentation [Text Block] |
(1)
Basis
of Presentation
Ethan
Allen Interiors Inc. ("Interiors") is a Delaware corporation
incorporated on May 25, 1989. The consolidated financial
statements include the accounts of Interiors, its wholly
owned subsidiary Ethan Allen Global, Inc. ("Global"), and
Global’s subsidiaries (collectively "We", "Us", "Our",
"Ethan Allen", or the "Company"). All intercompany accounts
and transactions have been eliminated in the consolidated
financial statements. All of Global’s capital stock is
owned by Interiors, which has no assets or operating results
other than those associated with its investment in
Global.
We
prepare our consolidated financial statements in conformity
with accounting principles generally accepted in the United
States, which requires management to make estimates and
assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and
liabilities at the date of the consolidated financial
statements and the reported amounts of revenues and expenses
during the reporting period. Due to the inherent uncertainty
involved in making those estimates, actual results could
differ from those estimates. Areas in which significant
estimates have been made include, but are not limited to,
revenue recognition, the allowance for doubtful accounts
receivable, inventory obsolescence, tax valuation allowances,
useful lives for property, plant and equipment and
definite-lived intangible assets, goodwill and
indefinite-lived intangible asset impairment analyses, the
evaluation of uncertain tax positions and the fair value of
assets acquired and liabilities assumed in business
combinations.
Our
consolidated financial statements include the accounts of a
business entity which began operating a new Ethan Allen
design center in Florida in fiscal 2012. Our consolidated
financial statements include the accounts of this entity
because we are a majority shareholder and have the power to
direct the activities that most significantly impact the
entity’s performance. Noncontrolling interest amounts
in the entity, which are immaterial, are included in the
Consolidated Statement of Comprehensive Income within
interest and other miscellaneous income, net.
For
the three and nine months ended March 31, 2013 and 2012, the
Company has presented selling, general and administrative
expenses as a single line on the Consolidated Statements of
Comprehensive Income, to remove information we believe is not
meaningful and to improve comparability with peer companies.
Selling expenses, general and administrative expenses, and
restructuring and impairment charges had previously been
presented separately.
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