Annual report pursuant to Section 13 and 15(d)

Note 10 - Restructuring and Other Impairment Activities - Schedule of Restructuring Reserve (Details)

v3.22.2.2
Note 10 - Restructuring and Other Impairment Activities - Schedule of Restructuring Reserve (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Gain on sales of property, plant and equipment [1] $ (5,431) $ (473)
Restructuring Charge (4,461) 2,411
Inventory write-downs and additional reserves(5) 0 585
Total (4,461) 3,050
Restructuring Reserve 1,084  
New Charges (Income) (4,461)  
Non-Cash 5,227  
(Payments) Receipts 9,057  
Restructuring Reserve 453 1,084
Non-Cash 5,227  
Lease Exit Costs [Member]    
Restructuring Charge [2] 0 1,537
Restructuring Reserve 645  
New Charges (Income) 0  
Non-Cash 0  
(Payments) Receipts (460)  
Restructuring Reserve 185 [3] 645
Non-Cash 0  
Employee Severance and Other Charges (Income) [Member]    
Restructuring Charge [4] 970 422
Restructuring Reserve 439  
New Charges (Income) 970  
Non-Cash 45  
(Payments) Receipts (1,096)  
Restructuring Reserve 268 439
Non-Cash 45  
Sale of Property, Plant and Equipment [Member]    
Restructuring Reserve 0  
New Charges (Income) (5,431)  
Non-Cash 5,182  
(Payments) Receipts 10,613  
Restructuring Reserve 0 0
Non-Cash 5,182  
Impairments of Long-lived Assets [Member]    
Restructuring Charge [5] 0 623
Optimization of Manufacturing and Logistics [Member]    
Restructuring Charge 0 302
Optimization of manufacturing and logistics(4) $ 0 $ 54
[1] 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. During the prior year period, we completed the sale of two previously closed properties to independent third parties. As a result of these sales, the Company recognized a pre-tax gain of $1.2 million. All of these transactions were recorded within the line item Restructuring and other impairment charges, net of gains in the consolidated statements of comprehensive income.
[2] We recorded restructuring charges of $1.4 million during fiscal 2021 which related to lease exit costs within the retail segment as a result of an early termination of a lease and the closing and subsequent exit of a retail design center.
[3] The previously recorded vacant space liability was reclassified from Accounts payable and accrued expenses and Other long-term liabilities to Operating lease right-of-use assets upon the adoption of ASU 2016-02, which requires all right-of-use assets to be measured net of any Topic 420 lease liabilities.
[4] We recorded charges of $0.1 million and $0.6 million during the three and nine months ended March 31, 2022, respectively. These charges primarily related to severance for terminated employees, including those at our previously sold Atoka, Oklahoma distribution center. In recent years, we have executed on many key initiatives to further optimize our manufacturing and logistics, including the closing and sale of our Atoka, Oklahoma distribution center and the consolidation of its workflow into our Old Fort, North Carolina distribution facility. These charges were recorded in the consolidated statement of comprehensive income within the line item Restructuring and other impairment charges, net of gains.
[5] We recorded a non-cash charge of $0.6 million during fiscal 2021 related to the impairment of long-lived assets held at a retail design center location. The asset group used for the impairment analysis was the individual retail design center, which represented the lowest level for which identifiable cash flows were available and largely independent of the cash flows of other groups of assets. We estimated future cash flows based on the design center-level historical results, current trends and operating and cash flow projections. The $0.6 million non-cash charge was recorded in the consolidated statement of comprehensive income within the line item Restructuring and other impairment charges, net of gains.