| Restructuring, Impairment, and Other Activities Disclosure [Text Block] |
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(13)
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Restructuring and Other Charges, Net of Gains
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Restructuring and other charges, net of gains were as follows (in thousands):
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Three months ended
September 30,
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2023
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2022
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Orleans, Vermont flood
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$ |
2,096 |
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$ |
- |
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Gain on sale-leaseback transaction
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(655 |
) |
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(2,257 |
) |
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Severance and other charges
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51 |
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261 |
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Total Restructuring and other charges, net of gains
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$ |
1,492 |
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$ |
(1,996 |
) |
Activity within restructuring and other charges, net of gains are summarized in the table below (in thousands):
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Balance
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Fiscal 2024 Activity
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Balance
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June 30, 2023
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Expenses/(Gain)
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Non-Cash
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Payments
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Receipts
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September 30, 2023
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Orleans, Vermont flood(1)
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Inventory write-downs and overhead manufacturing costs
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$ |
- |
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$ |
1,350 |
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$ |
1,350 |
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$ |
- |
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$ |
- |
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$ |
- |
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Repair and remediation costs
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- |
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2,206 |
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- |
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(1,166 |
) |
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- |
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1,040 |
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(1) |
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Insurance recoveries and grant proceeds
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- |
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(1,460 |
) |
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- |
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- |
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1,000 |
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(460 |
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(2) |
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Sub-total
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$ |
- |
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$ |
2,096 |
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$ |
1,350 |
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$ |
(1,166 |
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$ |
1,000 |
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$ |
580 |
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Gain on sale-leaseback transaction
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$ |
2,838 |
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$ |
(655 |
) |
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$ |
- |
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$ |
- |
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$ |
- |
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$ |
2,183 |
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(3) |
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Severance and other charges
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321 |
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51 |
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- |
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- |
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- |
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372 |
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Total Restructuring and other charges, net
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$ |
3,159 |
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$ |
1,492 |
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$ |
1,350 |
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$ |
(1,166 |
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$ |
1,000 |
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$ |
3,135 |
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(1)
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In July 2023, our wood furniture manufacturing operations located in Orleans, Vermont sustained damage from heavy flooding of the nearby Barton River. In addition to losses related to wood furniture inventory parts and state-of-the-art manufacturing equipment, the flooding also resulted in a temporary work stoppage for many Vermont associates and a disruption and delay of shipments. Losses incurred from the disposal of damaged inventory, inoperable machinery equipment from water damage, facility cleanup, and restoration, was $2.1 million, net of insurance recoveries and grant proceeds. The remaining amount of repair and remediation costs to be paid as of September 30, 2023 is accrued for within Accounts payable and accrued expenses.
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(2)
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The Vermont Department of Economic Development awarded Ethan Allen a $0.5 million grant through its Business Emergency Gap Assistance Program. These funds were used toward the cleanup and restoration efforts. Insurance proceeds received during the first quarter of fiscal 2024 totaled $0.5 million with an additional $0.46 million to be paid to Ethan Allen within the next three months, which is reflected within Prepaid expenses and other current assets.
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(3)
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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 for the three months ended September 30, 2023. The remaining deferred liability of $2.2 million as of September 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.
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