Ethan Allen Interiors Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Note 16 - Accumulated Other Comprehensive Loss

Note 16 - Accumulated Other Comprehensive Loss

12 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Comprehensive Income (Loss) Note [Text Block]

(16)

Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss consists of foreign currency translation adjustments and unrealized gains or losses on investments, net of tax. Foreign currency translation adjustments are the result of changes in foreign currency exchange rates related to our operations in Canada, Honduras and Mexico. Assets and liabilities are translated into U.S. dollars using the current period-end exchange rate and income and expense amounts are translated using the average exchange rate for the period in which the transaction occurred. Our investments as of June 30, 2023 consist of United States Treasury Bills with maturities of one year or less. As of June 30, 2022, our investments consisted of municipal bonds, commercial paper and certificates of deposit with maturities of one year or less. All unrealized gains and losses are included, net of tax, in Accumulated other comprehensive loss within the consolidated balance sheets.

The components of accumulated other comprehensive loss are as follows (in thousands):

	June 30,
	2023			2022
Accumulated foreign currency translation adjustments	$	(3,219	)	$	(6,397	)
Accumulated unrealized gains (losses) on investments, net of tax		434			(65	)
	$	(2,785	)	$	(6,462	)

The following table sets forth the activity in accumulated other comprehensive loss (in thousands):

	Fiscal Year Ended June 30,
	2023			2022
Beginning balance at July 1	$	(6,462	)	$	(5,931	)
Other comprehensive income (loss), net of tax		3,681			(532	)
Less amounts attributable to noncontrolling interests		(4	)		1
Ending balance at June 30	$	(2,785	)	$	(6,462	)