XML 21 R10.htm IDEA: XBRL DOCUMENT
v3.23.4

Note 4 - Revenue Recognition | 3 Months Ended
--- | ---
Dec. 31, 2023
Notes to Financial Statements |
Revenue from Contract with Customer [Text Block] |
(4) | Revenue Recognition
Our reported revenue (net sales) consists substantially of product sales. We report product sales net of discounts and recognize them at the point in time when control transfers to the customer. For sales to our customers in our wholesale segment, control typically transfers when the product is shipped. The majority of our shipping agreements are freight-on-board shipping point and risk of loss transfers to our wholesale customer once the product is out of our control. Accordingly, revenue is recognized for product shipments on third-party carriers at the point in time that our product is loaded onto the third-party container or truck. For sales in our retail segment, control generally transfers upon delivery to the customer. We recognize the promised amount of consideration without adjusting for the effects of a significant financing component if the contract has a duration of one year or less. As our contracts typically are less than one year in length and do not have significant financing components, we have not adjusted consideration. Shipping and Handling. Our practice has been to sell our products at the same delivered cost to all retailers and customers nationwide, regardless of shipping point. Costs incurred by the Company to deliver finished goods are expensed and recorded in selling, general and administrative (“SG&A”) expenses. We recognize shipping and handling expense as fulfillment activities (rather than as a promised good or service) when the activities are performed even if those activities are performed after the control of the good has been transferred. Accordingly, we record the expenses for shipping and handling activities at the same time we recognize net sales. Sales Taxes. We exclude from the measurement of the transaction price all taxes imposed on and concurrent with a specific revenue-producing transaction and collected by the entity from a customer, including sales, use, excise, value-added, and franchise taxes (collectively referred to as sales taxes). Sales tax collected is not recognized as revenue but is included in Accounts payable and accrued expenses on the consolidated balance sheets as it is ultimately remitted to governmental authorities. Returns and Allowances. Estimated refunds for returns and allowances are based on our historical return patterns. We record these estimated sales refunds on a gross basis rather than on a net basis and have recorded an asset for product we expect to receive back from customers in Prepaid expenses and other current assets and a corresponding refund liability in Other current liabilities on our consolidated balance sheets. At December 31, 2023 and June 30, 2023, these amounts were immaterial. Allowance for Doubtful Accounts. Accounts receivable arise from the sale of products on trade credit terms and is presented net of allowance for doubtful accounts. We maintain an allowance for estimated losses resulting from the inability of our customers to make required payments. The allowance for doubtful accounts is based on a review of specifically identified accounts in addition to an overall aging analysis. At December 31, 2023 and June 30, 2023, the allowance for doubtful accounts was immaterial. Commissions. We capitalize commission fees paid to our associates as contract assets within Prepaid expenses and other current assets on our consolidated balance sheets. These prepaid commissions are subsequently recognized as a selling expense upon delivery (when we have transferred control of our product to our customer). At December 31, 2023, we had prepaid commissions of $10.3 million, which we expect to recognize to selling expense during the remainder of fiscal 2024 as Selling, general and administrative expenses within our consolidated statements of comprehensive income. Customer Deposits. We collect deposits from customers on a portion of the total purchase price at the time a written order is placed, but before we have transferred control of our product to our customers, resulting in contract liabilities. These customer deposits are reported as a current liability in Customer deposits on our consolidated balance sheets. As of December 31, 2023, we had customer deposits of $63.1 million. At June 30, 2023 we had customer deposits of $77.8 million, of which we recognized $71.9 million of revenue related to our contract liabilities during the six months ended December 31, 2023. Revenue recognized during the three months ended December 31, 2023 which was previously included in Customer deposits as of September 30, 2023 was $17.7 million, compared to $30.9 million of revenue recognized during the three months ended December 31, 2022, which was previously included in Customer deposits as of September 30, 2022. We expect that substantially all of the customer deposits as of December 31, 2023 will be recognized as revenue within the next twelve months as the performance obligations are satisfied. The following table disaggregates our net sales by product category by segment (in thousands):
|  | Three months ended December 31, 2023 |  |  | Three months ended December 31, 2022 |
|  | Wholesale |  |  | Retail |  |  | Eliminations(1) |  |  | Total |  |  | Wholesale |  |  | Retail |  |  | Eliminations(1) |  |  | Total |
Upholstery(2) |  | $ | 44,619 |  |  | $ | 66,919 |  |  | $ | (31,209 | ) |  | $ | 80,329 |  |  | $ | 53,661 |  |  | $ | 82,893 |  |  | $ | (38,921 | ) |  | $ | 97,633 |
Case goods(3) |  |  | 29,183 |  |  |  | 35,513 |  |  |  | (17,579 | ) |  |  | 47,117 |  |  |  | 35,803 |  |  |  | 45,890 |  |  |  | (20,958 | ) |  |  | 60,735 |
Accents(4) |  |  | 17,851 |  |  |  | 28,794 |  |  |  | (13,760 | ) |  |  | 32,885 |  |  |  | 18,215 |  |  |  | 34,150 |  |  |  | (14,970 | ) |  |  | 37,395 |
Other(5) |  |  | (1,026 | ) |  |  | 7,971 |  |  |  | - |  |  |  | 6,945 |  |  |  | (1,432 | ) |  |  | 8,830 |  |  |  | - |  |  |  | 7,398 |
Total |  | $ | 90,627 |  |  | $ | 139,197 |  |  | $ | (62,548 | ) |  | $ | 167,276 |  |  | $ | 106,247 |  |  | $ | 171,763 |  |  | $ | (74,849 | ) |  | $ | 203,161 |
|  | Six months ended December 31, 2023 |  |  | Six months ended December 31, 2022 |
|  | Wholesale |  |  | Retail |  |  | Eliminations(1) |  |  | Total |  |  | Wholesale |  |  | Retail |  |  | Eliminations(1) |  |  | Total |
Upholstery(2) |  | $ | 93,884 |  |  | $ | 132,112 |  |  | $ | (67,161 | ) |  | $ | 158,835 |  |  | $ | 112,283 |  |  | $ | 173,875 |  |  | $ | (82,486 | ) |  | $ | 203,672 |
Case goods(3) |  |  | 59,518 |  |  |  | 67,814 |  |  |  | (35,555 | ) |  |  | 91,777 |  |  |  | 73,973 |  |  |  | 95,144 |  |  |  | (44,416 | ) |  |  | 124,701 |
Accents(4) |  |  | 38,639 |  |  |  | 57,619 |  |  |  | (28,971 | ) |  |  | 67,287 |  |  |  | 37,836 |  |  |  | 68,355 |  |  |  | (31,726 | ) |  |  | 74,465 |
Other(5) |  |  | (1,984 | ) |  |  | 15,253 |  |  |  | - |  |  |  | 13,269 |  |  |  | (3,194 | ) |  |  | 18,047 |  |  |  | - |  |  |  | 14,853 |
Total |  | $ | 190,057 |  |  | $ | 272,798 |  |  | $ | (131,687 | ) |  | $ | 331,168 |  |  | $ | 220,898 |  |  | $ | 355,421 |  |  | $ | (158,628 | ) |  | $ | 417,691 |
| (1) | The Eliminations column in the tables above represents the elimination of all intercompany wholesale segment sales to the retail segment in each period presented.
| (2) | Upholstery includes fabric-covered items such as sleepers, recliners and other motion furniture, chairs, ottomans, custom pillows, sofas, loveseats, cut fabrics and leather.
| (3) | Case goods includes items such as beds, dressers, armoires, tables, chairs, buffets, entertainment units, home office furniture and wooden accents.
| (4) | Accents includes items such as window treatments and drapery hardware, wall décor, florals, lighting, clocks, mattresses, bedspreads, throws, pillows, decorative accents, area rugs, flooring, wall coverings and home and garden furnishings.
| (5) | Other includes product delivery sales, the Ethan Allen Hotel revenues, sales of third-party furniture protection plans and other miscellaneous product sales less prompt payment discounts, sales allowances and other incentives.

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 revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org//606/tableOfContent + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration