Quarterly report pursuant to Section 13 or 15(d)

Note 13 - Restructuring and Other Impairment Activities

v3.23.1
Note 13 - Restructuring and Other Impairment Activities
9 Months Ended
Mar. 31, 2023
Notes to Financial Statements  
Restructuring, Impairment, and Other Activities Disclosure [Text Block]

(13)

Restructuring and Other Impairment Activities

 

Restructuring and other impairment charges, net of gains, were as follows (in thousands):

 

   

Three months ended
March 31,

   

Nine months ended
March 31,

 
   

2023

   

2022

   

2023

   

2022

 

Gain on sale-leaseback transaction(1)

  $ (655 )   $ -     $ (3,566 )   $ -  

Gain on sale of property, plant and equipment(2)

    -       (1,518 )     -       (5,431 )

Severance and other charges

    185       55       904       590  

Total Restructuring and other impairment charges, net of gains

  $ (470 )   $ (1,463 )   $ (2,662 )   $ (4,841 )

 

(1)

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.

 

(2)

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.

 

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.