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Note 12 - Restructuring and Other Impairment Activities | 6 Months Ended
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Dec. 31, 2021
Notes to Financial Statements |
Restructuring, Impairment, and Other Activities Disclosure [Text Block] |
(12) | Restructuring and Other Impairment Activities
Restructuring and other impairment charges, net of gains, were as follows (in thousands):
|  | Three months ended December 31, |  |  | Six months ended December 31, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
(Gain) loss on sale of property, plant and equipment(1) |  | $ | (3,913 | ) |  |  | 273 |  |  | $ | (3,913 | ) |  | $ | 273 |
Severance and other charges(2) |  |  | 280 |  |  |  | 150 |  |  |  | 535 |  |  |  | 150 |
Impairment of long-lived assets (3) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 623 |
Total Restructuring and other impairment charges, net of gains |  |  | (3,633 | ) |  |  | 423 |  |  |  | (3,378 | ) |  |  | 1,046 |
Inventory reserves and write-downs(4)(5) |  |  |  |  |  |  | 389 |  |  |  | - |  |  |  | 389 |
Total |  | $ | (3,633 | ) |  | $ | 812 |  |  | $ | (3,378 | ) |  | $ | 1,435 |
(1) | We completed the sale of our previously closed Atoka, Oklahoma distribution center to an independent third party in October 2021 and received $2.8 million in cash less $0.2 million in closing costs. As a result of the sale, the Company recognized a pre-tax gain of $2.0 million in the second quarter of fiscal 2022. In addition, in December 2021, we completed the sale of a property for $5.6 million in cash, which resulted in a pre-tax gain of $1.9 million. In the year ago second quarter, we sold a previously closed retail property and received $1.3 million in cash less $0.1 million in closing costs, resulting in a pre-tax loss of $0.3 million. All three 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 $0.3 million and $0.5 million of charges during the three and six months ended December 31, 2021, respectively. These charges primarily related to severance for terminated employees, including those at our recently sold Atoka, Oklahoma distribution center. In recent years, we have executed on many key initiatives to further optimize our manufacturing and logistics, including closing our Atoka, Oklahoma distribution center and consolidating its workflow into our Old Fort, North Carolina facility. These charges were recorded in the consolidated statement of comprehensive income within the line item Restructuring and other impairment charges, net of gains.
(3) | In the first quarter of fiscal 2021, we recorded a non-cash charge of $0.6 million 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.
(4) | Manufacturing overhead costs and inventory reserves and write-downs are reported within Cost of Sales in the consolidated statements of comprehensive income.
(5) | We recorded a non-cash charge of $0.4 million during the second quarter of fiscal 2021 to increase our finished goods inventory obsolescence reserve for certain slow moving and discontinued inventory items based on actual demand and the most current forecasted market conditions at that time. The non-cash inventory write-down was recorded in the consolidated statement of comprehensive income within the line item Cost of Sales.
Restructuring payments made by the Company during the first six months of fiscal 2022 were $0.6 million, which were primarily for severance, lease exit costs (ongoing monthly rent in exited space) and closing costs related to our Atoka, Oklahoma distribution center. As of December 31, 2021, remaining restructuring liabilities totaled $1.0 million and are primarily reported as a current liability in Accrued Compensation and Benefits on our consolidated balance sheets.

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- Definition The entire disclosure of costs incurred for restructuring including, but not limited to, exit and disposal activities, remediation, implementation, integration, asset impairment, and charges against earnings from the write-down of assets. + References No definition available. + Details
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