XML 29 R18.htm IDEA: XBRL DOCUMENT
v3.22.1

Note 12 - Restructuring and Other Impairment Activities | 9 Months Ended
--- | ---
Mar. 31, 2022
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 March 31, |  |  | Nine months ended March 31, |
|  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
Gain on sales of property, plant and equipment(1) |  | $ | (1,518 | ) |  | $ | (1,443 | ) |  | $ | (5,431 | ) |  | $ | (1,170 | )
Lease exit costs(2) |  |  | - |  |  |  | 1,406 |  |  |  | - |  |  |  | 1,406 |
Severance and other charges(3) |  |  | 55 |  |  |  | 630 |  |  |  | 590 |  |  |  | 780 |
Impairment of long-lived assets (4) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 623 |
Total Restructuring and other impairment charges, net of gains |  |  | (1,463 | ) |  |  | 593 |  |  |  | (4,841 | ) |  |  | 1,639 |
Inventory reserves and write-downs(5) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 389 |
Total |  | $ | (1,463 | ) |  | $ | 593 |  |  | $ | (4,841 | ) |  | $ | 2,028 |
(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) | 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.
(4) | 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.
(5) | We recorded a non-cash charge of $0.4 million during fiscal 2021 to increase our inventory obsolescence reserve for certain slow moving and discontinued finished goods inventory items based on actual demand and the most current forecasted market conditions at that time. The non-cash inventory charge 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 nine months of fiscal 2022 were $1.1 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 March 31, 2022, remaining restructuring liabilities totaled $0.5 million and are primarily reported as a current liability in Accrued Compensation and Benefits and Accounts Payable and Accrued Expenses on our consolidated balance sheets.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_RestructuringImpairmentAndOtherActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration