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Summary Of Significant Accounting Policies | 9 Months Ended
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Mar. 31, 2025
Accounting Policies [Abstract] |
Summary Of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Lancaster Colony Corporation and our wholly-owned subsidiaries, collectively referred to as “we,” “us,” “our,” “registrant” or the “Company” and have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and SEC Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In our opinion, the interim condensed consolidated financial statements reflect all adjustments necessary for a fair presentation of the results of operations and financial position for such periods. All such adjustments reflected in the interim condensed consolidated financial statements are considered to be of a normal recurring nature. Intercompany transactions and accounts have been eliminated in consolidation. The results of operations for any interim period are not necessarily indicative of results for the full year. Accordingly, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in our 2024 Annual Report on Form 10-K. Unless otherwise noted, the term “year” and references to a particular year pertain to our fiscal year, which begins on July 1 and ends on June 30; for example, 2025 refers to fiscal 2025, which is the period from July 1, 2024 to June 30, 2025. Subsequent Event On April 24, 2025, we committed to a plan to close our sauce and dressing production facility in Milpitas, California as part of our ongoing strategic initiative to better optimize our manufacturing network. Production at the facility is expected to conclude in the quarter ending September 30, 2025. We expect to record restructuring and impairment charges related to this closure of approximately $6 million in the quarter ending June 30, 2025. These charges will consist of impairment charges for personal property and operating lease right-of-use assets, one-time termination benefits, and other closing costs. The operations of this facility will not be classified as discontinued operations as the closure does not represent a strategic shift that would have a major effect on our operations or financial results. Property, Plant and Equipment Property, plant and equipment are recorded at cost, except for those acquired as part of a business combination, which are recorded at fair value at the time of purchase. We use the straight-line method of computing depreciation for financial reporting purposes based on the estimated useful lives of the corresponding assets. Purchases of property, plant and equipment included in Accounts Payable and excluded from the property additions and the change in accounts payable in the Condensed Consolidated Statements of Cash Flows were as follows:
| March 31,
| 2025 |  | 2024
Construction in progress in Accounts Payable | $ | 5,550 |  |  | $ | 4,144 |
In the three months ended March 31, 2024, we recorded an impairment charge of $6.2 million for certain property, plant and equipment related to Angelic Bakehouse (“Angelic”) and Flatout. This charge resulted from our decision to exit our perimeter-of-the-store bakery product lines, which triggered impairment testing, and represented the excess of the carrying value over the fair value. The fair value at March 31, 2024 was based on estimated selling prices for the real estate and manufacturing equipment at the Angelic sprouted grain bakery facility in Cudahy, Wisconsin and the Flatout flatbread facility in Saline, Michigan, which represented a Level 3 measurement within the fair value hierarchy. The impairment charge was reflected in Restructuring and Impairment Charges and was not allocated to our two reportable segments due to its unusual nature. Intangible Assets In the three months ended March 31, 2024, we recorded an impairment charge of $4.5 million to write off the net carrying value of the intangible assets related to Angelic and Flatout based on our decision to exit our perimeter-of-the-store bakery product lines. The impairment charge was reflected in Restructuring and Impairment Charges and was not allocated to our two reportable segments due to its unusual nature. Accrued Compensation and Employee Benefits Accrued compensation and employee benefits included in Accrued Liabilities was $28.4 million and $31.6 million at March 31, 2025 and June 30, 2024, respectively. Earnings Per Share Earnings per share (“EPS”) is computed based on the weighted average number of shares of common stock and common stock equivalents (restricted stock, stock-settled stock appreciation rights and performance units) outstanding during each period. Unvested shares of restricted stock granted to employees are considered participating securities since employees receive nonforfeitable dividends prior to vesting and, therefore, are included in the earnings allocation in computing EPS under the two-class method. Basic EPS excludes dilution and is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing income available to common shareholders by the diluted weighted average number of common shares outstanding during the period, which includes the dilutive potential common shares associated with nonparticipating restricted stock, stock-settled stock appreciation rights and performance units. Basic and diluted net income per common share were calculated as follows:
| Three Months Ended March 31, |  | Nine Months Ended March 31,
| 2025 |  | 2024 |  | 2025 |  | 2024
Net income | $ | 41,124 |  |  | $ | 28,350 |  |  | $ | 134,818 |  |  | $ | 123,785 |
Net income available to participating securities | (109) |  |  | (65) |  |  | (363) |  |  | (333) |
Net income available to common shareholders | $ | 41,015 |  |  | $ | 28,285 |  |  | $ | 134,455 |  |  | $ | 123,452 |
Weighted average common shares outstanding – basic | 27,482 |  |  | 27,436 |  |  | 27,473 |  |  | 27,437 |
Incremental share effect from: |  |  |  |  |  |  |
Nonparticipating restricted stock | 1 |  |  | 2 |  |  | 3 |  |  | 3 |
Stock-settled stock appreciation rights (1) | 2 |  |  | 4 |  |  | 2 |  |  | 7 |
Performance units | 11 |  |  | 9 |  |  | 12 |  |  | 8 |
Weighted average common shares outstanding – diluted | 27,496 |  |  | 27,451 |  |  | 27,490 |  |  | 27,455 |
Net income per common share – basic and diluted | $ | 1.49 |  |  | $ | 1.03 |  |  | $ | 4.89 |  |  | $ | 4.50 |
(1)Excludes the impact of 0.1 million weighted average stock-settled stock appreciation rights outstanding for the nine months ended March 31, 2024 because their effect was antidilutive. Accumulated Other Comprehensive Income (Loss) The following table presents the amounts reclassified out of accumulated other comprehensive income (loss) by component:
| Three Months Ended March 31, |  | Nine Months Ended March 31,
| 2025 |  | 2024 |  | 2025 |  | 2024
Accumulated other comprehensive income (loss) at beginning of period | $ | 1,010 |  |  | $ | (9,214) |  |  | $ | (8,640) |  |  | $ | (9,365) |
Defined Benefit Pension Plan Items: |  |  |  |  |  |  |
Net loss arising during the period | — |  |  | — |  |  | (1,549) |  |  | — |
Settlement charge (1) | — |  |  | — |  |  | 13,968 |  |  | — |
Amortization of unrecognized net loss (1) | — |  |  | 158 |  |  | 294 |  |  | 475 |
Postretirement Benefit Plan Items: |  |  |  |  |  |  |
Amortization of unrecognized net gain | (15) |  |  | (15) |  |  | (44) |  |  | (45) |
Amortization of prior service credit | (45) |  |  | (45) |  |  | (136) |  |  | (135) |
Total other comprehensive (loss) income, before tax | (60) |  |  | 98 |  |  | 12,533 |  |  | 295 |
Total tax benefit (expense) | 14 |  |  | (23) |  |  | (2,929) |  |  | (69) |
Other comprehensive (loss) income, net of tax | (46) |  |  | 75 |  |  | 9,604 |  |  | 226 |
Accumulated other comprehensive income (loss) at end of period | $ | 964 |  |  | $ | (9,139) |  |  | $ | 964 |  |  | $ | (9,139) |
(1)Included in the computation of net periodic benefit cost for our pension plans. See Note 9 for additional information. Significant Accounting Policies There were no changes to our Significant Accounting Policies from those disclosed in our 2024 Annual Report on Form 10-K. Recent Accounting Standards In November 2023, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance related to the disclosure requirements for reportable segments. The new guidance requires enhanced disclosures about significant segment expenses. Additionally, all current annual disclosures about a reportable segment’s profit or loss and assets will also be required in interim periods. The new guidance also requires disclosure of the title and position of the Chief Operating Decision Maker (“CODM”) and explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. The amendments should be applied retrospectively to all prior periods presented in the financial statements. This guidance will be effective for our annual disclosures in fiscal 2025 and for our interim-period disclosures in fiscal 2026. As the guidance only relates to disclosures, there will be no impact on our financial position or results of operations. In December 2023, the FASB issued new accounting guidance related to the disclosure requirements for income taxes. The new guidance requires annual disclosures in the rate reconciliation table to be presented using both percentages and reporting currency amounts, and this table must include disclosure of specific categories. Additional information will also be required for reconciling items that meet a quantitative threshold. The new guidance also requires enhanced disclosures of income taxes paid, including the amount of income taxes paid disaggregated by federal, state and foreign taxes and the amount of income taxes paid disaggregated by individual jurisdictions that exceed a quantitative threshold. The amendments should be applied on a prospective basis, but retrospective application is permitted. This guidance will be effective for our annual disclosures in fiscal 2026. As the guidance only relates to disclosures, there will be no impact on our financial position or results of operations. In November 2024, the FASB issued new accounting guidance requiring disclosure of disaggregated income statement expenses. For each relevant expense caption presented on the face of the income statement, the following expense components must be presented in a tabular format within the notes to the financial statements at each interim and annual reporting period: purchases of inventory, employee compensation, depreciation, intangible asset amortization and depletion expense. Certain amounts already required to be disclosed under current GAAP requirements must also be presented in the same disclosure as the new disaggregation requirements. The new guidance also requires disclosure of a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. Additionally, the total amount of selling expenses must be disclosed, and, in annual reporting periods, our definition of selling expenses must also be provided. The amendments should be applied either prospectively to financial statements issued for reporting periods after the effective date or retrospectively to any or all prior periods presented in the financial statements. This guidance will be effective for our annual disclosures in fiscal 2028 and for our interim-period disclosures in fiscal 2029. As the guidance only relates to disclosures, there will be no impact on our financial position or results of operations.

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