XML 27 R15.htm IDEA: XBRL DOCUMENT

Employee Stock Ownership Plan

3 Months Ended

Sep. 30, 2020

Employee Stock Ownership Plan [Abstract]

Note 8. Employee Stock Ownership Plan

The Company sponsors a leveraged employee stock ownership plan (the "ESOP") that covers all nonunion employees who work 1,000 or more hours per year and are employed on June 30. The Company makes annual contributions to the ESOP equal to the ESOP's debt service less dividends on unallocated shares received by the ESOP. All dividends on unallocated shares received by the ESOP are used to pay debt service. Dividends on allocated ESOP shares are recorded as a reduction of retained earnings. As the debt is repaid, shares are released and allocated to active employees, based on the proportion of debt service paid in the year. The Company accounts for its ESOP in accordance with FASB ASC 718-40. Accordingly, the shares purchased by the ESOP are reported as Unearned ESOP shares in the statement of financial position. As shares are released or committed-to-be-released, the Company reports compensation expense equal to the current average market price of the shares, and the shares become outstanding for earnings-per-share (EPS) computations. Effective June 30, 2020, the loan from the Company to the ESOP was paid in full and all shares have been allocated to participants accounts. ESOP compensation expense was $0 for the three months ended September 30, 2020 and $87,833 for the three month periods ended September 30, 2019. It is the Company’s intention to continue the program with an additional purchase of shares by the ESOP from the Company during fiscal 2021.

The ESOP shares as of September 30, 2020 and 2019 were as follows:

	September 30, 2020		September 30, 2019
Allocated shares		469,119		454,610
Committed-to-be-released shares		—		3,542
Unreleased shares		—		10,624

Total shares held by the ESOP		469,119		468,776

Fair value of unreleased shares	$	—	$	252,001

The Company may at times be required to repurchase shares at the ESOP participants’ request at the fair market value. During the three months ended September 30, 2020, the Company did not repurchase any shares. During the three months ended September 30, 2019, the Company repurchased 333 shares previously held in the ESOP for $8,291.

The ESOP allows for eligible participants to take whole share distributions from the plan on specific dates in accordance with the provision of the plan. There were no share distributions from the ESOP during the three months ended September 30, 2020 and 2019.