Restructuring, Impairment, and Other Activities Disclosure [Text Block] |
(13)
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Restructuring and Other Impairment Activities
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Restructuring and other impairment charges, net of gains, were as follows (in thousands):
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Three months ended
March 31,
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Nine months ended
March 31,
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2023
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2022
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2023
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2022
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Gain on sale-leaseback transaction(1)
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$ |
(655 |
) |
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$ |
- |
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$ |
(3,566 |
) |
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$ |
- |
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Gain on sale of property, plant and equipment(2)
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- |
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(1,518 |
) |
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- |
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(5,431 |
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Severance and other charges
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185 |
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55 |
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904 |
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590 |
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Total Restructuring and other impairment charges, net of gains
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$ |
(470 |
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$ |
(1,463 |
) |
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$ |
(2,662 |
) |
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$ |
(4,841 |
) |
(1)
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In August 2022, we sold and subsequently leased back a retail design center and recognized a net gain of $0.7 million and $3.6 million for the three and nine months ended March 31, 2023, respectively. The remaining deferred liability was $3.5 million as of March 31, 2023 and will be recognized over the remaining life of the lease. Refer to Note 6, Leases, for further discussion on the sale-leaseback transaction.
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(2)
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In March 2022, we sold a previously closed property to an independent third party for $2.6 million, which resulted in a pre-tax gain of $1.5 million. During the second quarter of fiscal 2022 we also completed the sale of our Atoka, Oklahoma distribution center for $2.8 million, less closing costs, and recognized a pre-tax gain of $2.0 million. In addition, in December 2021, we completed the sale of a property for $5.6 million, which resulted in a pre-tax gain of $1.9 million.
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Restructuring payments made by the Company during the first nine months of fiscal 2023 were $1.0 million, which were primarily for severance and lease payments due under a retail design center that was previously exited. Excluding the deferred liability of $3.5 million related to the sale-leaseback transaction, the remaining restructuring balance as of March 31, 2023 was $0.3 million, which is anticipated to be paid during the fourth quarter of fiscal 2023.
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