Annual report pursuant to Section 13 and 15(d)

Note 10 - Restructuring and Other Impairment Activities

v3.23.2
Note 10 - Restructuring and Other Impairment Activities
12 Months Ended
Jun. 30, 2023
Notes to Financial Statements  
Restructuring, Impairment, and Other Activities Disclosure [Text Block]

(10)

Restructuring and Other Impairment Activities

 

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

 

   

Fiscal Year Ended
June 30,

 
   

2023

   

2022

 

Gain on sale-leaseback transaction(1)

  $ (4,222 )   $ -  

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

    (311 )     (5,431 )

Severance and other charges

    813       970  

Total Restructuring and other impairment charges, net of gains

  $ (3,720 )   $ (4,461 )

 

(1)

In August 2022, we sold and subsequently leased back a retail design center and recognized a net gain of $4.2 million for the year ended June 30, 2023. The remaining deferred liability of $2.8 million as of June 30, 2023 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 April 2023, we sold a previously closed property to an independent third party for $1.8 million, which resulted in a pre-tax gain of $0.3 million. During the prior year period, we completed the sale of three previously closed properties to independent third parties for $11.0 million, less closing costs, in three separate transactions. As a result of these property sales, the Company recognized a pre-tax gain of $5.4 million.

 

The Company’s restructuring and other impairment activities are summarized in the table below (in thousands):

 

   

 

   

Fiscal 2023 Activity

   

 

 
   

Balance

June 30, 2022

   

New Charges (Income)

   

Non-Cash

   

(Payments) Receipts

   

Balance

June 30, 2023

 

Lease exit costs

  $ 185     $ -     $ -     $ (185 )   $ -  

Sale of property, plant and equipment

    -       (311 )     1,398       1,809       100  

Sale-leaseback transaction

    -       (4,222 )     1,043       8,103       2,838 (1) 

Severance and other charges

    268       813       -       (860 )     221  
                                         

Total Restructuring and other impairment activities

  $ 453     $ (3,720 )   $ 2,441     $ 8,867     $ 3,159  

 

(1)

The remaining balance of $2.8 million on the sale-leaseback transaction will be amortized to Restructuring and other impairment charges, net of gains over the term of the related lease. As of June 30, 2023, $2.6 million of the remaining balance of $2.8 million is reported within Other current liabilities (short-term) and $0.2 million in Other long-term liabilities (long-term).