View Filing Data

Document And Entity Information - shares	9 Months Ended
Document And Entity Information - shares	Mar. 31, 2019	Apr. 23, 2019
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Registrant Name	FLEXSTEEL INDUSTRIES INC
Entity Central Index Key	0000037472
Current Fiscal Year End Date	--06-30
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		7,894,178
Entity Emerging Growth Company	false
Entity Small Business	false
Trading Symbol	FLXS

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2019	Jun. 30, 2018
ASSETS
Cash and cash equivalents	$ 28,587	$ 27,750
Investments		15,951
Trade receivables - less allowances: March 31, 2019, $157; June 30, 2018, $1,100	40,128	41,253
Inventories	95,928	96,204
Other	15,230	8,476
Total current assets	179,873	189,634
NONCURRENT ASSETS:
Property, plant and equipment, net	83,001	90,725
Deferred income taxes	1,205	1,455
Other assets	1,336	2,479
TOTAL	265,415	284,293
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable - trade	16,480	17,228
Accrued liabilities:
Payroll and related items	4,536	5,459
Insurance	4,616	4,439
Accrued Advertising, Current	3,251	4,192
Accrued Environmental Loss Contingencies, Current	3,600	3,600
Other	5,274	6,011
Total current liabilities	37,757	40,929
LONG-TERM LIABILITIES:
Other liabilities	1,032	1,666
Total liabilities	38,789	42,595
SHAREHOLDERS' EQUITY:
Stockholders' Equity, Total	226,626	241,698
Common stock - $1 par value; authorized 15,000,000 shares; outstanding March 31, 2019, 7,894,178 shares; outstanding June 30, 2018, 7,868,298 shares	7,894	7,868
Additional paid-in capital	27,080	26,321
Retained earnings	191,657	209,553
Accumulated other comprehensive loss	(5)	(2,044)
TOTAL	$ 265,415	$ 284,293

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2019	Jun. 30, 2018
Consolidated Balance Sheets [Abstract]
Trade receivables, allowance for doubtful accounts	$ 157	$ 1,100
Common stock, par value	$ 1	$ 1
Common stock, authorized	15,000,000	15,000,000
Common stock, outstanding	7,894,178	7,868,298

Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Consolidated Statements Of Operations [Abstract]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 111,542	$ 126,861	$ 343,381	$ 376,087
Cost of Goods and Services Sold	(90,214)	(99,229)	(278,786)	(294,913)
Gross margin	21,328	27,632	64,595	81,174
Selling, general and administrative	(22,915)	(19,681)	(62,484)	(57,596)
Environmental Remediation Expense		3,600		3,600
ERP Impairment Expense	18,668		18,668
Gain on sale of facility				1,835
Operating income (loss)	(20,255)	4,351	(16,557)	21,813
Interest and other income	158	158	397	457
Income before income taxes	(20,097)	4,509	(16,160)	22,270
Income tax provision	4,545	(1,430)	3,470	(6,790)
Net income (loss)	$ (15,552)	$ 3,079	$ (12,690)	$ 15,480
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
Basic	7,892	7,853	7,884	7,844
Diluted	7,892	7,930	7,884	7,929
EARNINGS (LOSS) PER SHARE OF COMMON STOCK:
Basic	$ (1.97)	$ 0.39	$ (1.61)	$ 1.97
Diluted	$ (1.97)	$ 0.39	$ (1.61)	$ 1.95

Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Accumulated Other Comprehensive Income (Loss) [Abstract]
Net income	$ (15,552)	$ 3,079	$ (12,690)	$ 15,480
Unrealized (losses) gains on securities	157	(62)	240	(146)
Reclassification of realized gain to other income	(107)	38	(211)	113
Other Comprehensive Income (Loss) Before Taxes	50	(24)	29	(33)
Income tax benefit (expense) related to securities gains (losses)	(13)	6	(8)	11
Net unrealized (losses) gains on securities gains (losses)	37	(18)	21	(23)
Reclassification of realized gains (losses) on terminated pension	2,727		2,727
Income tax benefit (expense) related to minimum pension liability	(709)		(709)
Net realized gain on terminated pension	2,018		2,018
Other comprehensive (loss) income, net of tax	2,055	(18)	2,039	(22)
Comprehensive income	$ (13,497)	$ 3,061	$ (10,651)	$ 15,458

Consolidated Statements Of Changes In Shareholders' Equity - USD ($) $ in Thousands	Total Par Value Of Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total
Balance, period start at Jun. 30, 2017	$ 7,822	$ 26,186	$ 198,465	$ (1,713)	$ 230,760
Issuance of common stock:
Stock options exercised, net	5	71			76
Unrealized gain on available for sale investments, net of tax				(23)	(23)
Long-term incentive compensation	20	(298)			(278)
Stock-based compensation	8	628			636
Cash dividends declared			(5,181)		(5,181)
Net income			15,480		15,480
Balance, period end at Mar. 31, 2018	7,855	26,587	208,764	(1,736)	241,470
Balance, period start at Jun. 30, 2018	7,868	26,321	209,553	(2,044)	241,698
Issuance of common stock:
Stock options exercised, net	5	76			81
Unrealized gain on available for sale investments, net of tax				21	21
Long-term incentive compensation	7	(315)			(308)
Stock-based compensation	14	998			1,012
Terminated pension adjustment, net of tax				2,018	2,018
Cash dividends declared			(5,206)		(5,206)
Net income			(12,690)		(12,690)
Balance, period end at Mar. 31, 2019	$ 7,894	$ 27,080	$ 191,657	$ (5)	$ 226,626

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
OPERATING ACTIVITIES:
Net income (loss)	$ (12,690)	$ 15,480
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation	5,694	5,398
Deferred income taxes	242	(124)
Stock-based compensation expense	914	909
Provision for losses on accounts receivable	(110)	(110)
ERP Impairment	18,668
Other non-cash, net	2,455
Gain on disposition of capital assets	133	(1,794)
Changes in operating assets and liabilities:
Trade receivables	1,235	(2,820)
Inventories	275	(6,799)
Other current assets	(6,876)	(547)
Other assets	219	14
Accounts payable - trade	3,044	(420)
Accrued liabilities	(785)	4,915
Other long-term liabilities	117	187
Net cash provided by operating activities	12,535	14,289
INVESTING ACTIVITIES:
Purchases of investments	(12,981)	(30,196)
Proceeds from sales of investments	28,909	30,129
Proceeds from sale of capital assets	42	6,152
Capital expenditures	(20,603)	(20,149)
Net cash (used in) provided by investing activities	(4,633)	(14,064)
FINANCING ACTIVITIES:
Dividends paid	(6,935)	(5,018)
Proceeds from issuance of common stock	81	77
Shares withheld for employee tax obligations	(211)	(552)
Net cash used in financing activities	(7,065)	(5,493)
Increase (decrease) in cash and cash equivalents	837	(5,268)
Cash and cash equivalents at beginning of year	27,750	28,874
Cash and cash equivalents at end of year	28,587	23,606
SUPPLEMENTAL INFORMATION CASH PAID DURING THE PERIOD FOR:
Income taxes paid (refunded)	1,390	5,190
Capital Expenditures Incurred but Not yet Paid	$ 293	$ 2,770

Accounting Policies

9 Months Ended

Mar. 31, 2019

Disclosure Text Block [Abstract]

Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block]

BASIS OF PRESENTATION – The consolidated financial statements included herein have been prepared by Flexsteel Industries, Inc. and Subsidiaries (the “Company” or “Flexsteel”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The information furnished in the consolidated financial statements includes normal recurring adjustments and reflects all adjustments, which are, in the opinion of management, necessary for a fair presentation of such consolidated financial statements. Operating results for the three and nine months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2019. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States of America have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. Except to the extent updated or described below, the significant accounting policies set forth in Note 1 to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended June 30, 2018, appropriately represent, in all material respects, the current status of accounting policies and are incorporated by reference.

DESCRIPTION OF BUSINESS – Flexsteel Industries, Inc. and Subsidiaries (the “Company”) incorporated in 1929 celebrated its 125th anniversary of the Company’s founding in 1893 last year. Flexsteel Industries, Inc. is one of the oldest and largest manufacturers, importers and marketers of residential and contract upholstered and wooden furniture products in the United States. Over the generations the Company has built a committed retail and consumer following based on its patented, guaranteed-for-life Blue Steel SpringTM – the all-riveted, high-carbon, steel-banded seating platform that gives upholstered and leather furniture the strength and comfort to last a lifetime. With offerings for use in home, hotel, healthcare, recreational vehicle, marine and office, the Company distributes its furniture throughout the United States & Canada through the Company’s sales force and various independent representatives.

ADOPTED ACCOUNTING PRONOUNCEMENTS - In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606), which provides a framework for the recognition of revenue, with the objective that recognized revenues properly reflect amounts an entity is entitled to receive in exchange for goods and services. The guidance is effective for annual reporting periods beginning after December 15, 2017, the Company’s fiscal year 2019. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective method). The Company adopted the modified retrospective method on July 1, 2018. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements as revenue is recognized when product ownership and risk of loss is transferred to the customer, collectability is probable and the Company has no remaining performance obligations. Thus, the timing of revenue recognition is not impacted by the new standard.

The Company’s revenues result from the sale of goods and reflect the consideration to which the Company expects to be entitled. The Company records revenue based on a five-step model in accordance with Accounting Standards Codification ("ASC") 2014-09, Revenue from Contracts with Customers (Topic 606). For its customer contracts, typically purchase orders, the Company identifies the performance obligations (goods), determines the transaction price, allocates the contract transaction price to the performance obligations, and recognizes the revenue when the performance obligation is transferred to the customer. A good is transferred when the customer obtains control of that good and risk of loss transfers at that point in time.

Provisions for customer volume rebates, product returns, discounts and allowances are variable consideration and are recorded as a reduction of revenue in the same period the related sales are recorded. Such provisions are calculated based upon agreed percentages. Consideration given to customers for cooperative advertising is recognized as a reduction of revenue except to the extent there is a distinct good or service and evidence of the fair value of the advertising, in which case the expense is classified as selling, general and administrative expense (SG&A).

The Company has a limited lifetime warranty on all products. The Company does not offer the option to purchase warranties. The Company accounts for warranties under ASC Subtopic 460, Guarantees, and not as variable consideration related to revenue.

Occasionally the Company receives deposits from customers before it has transferred control of the product to customers, resulting in contract liabilities. These contract liabilities are reported within “Accounts payable - trade” in the consolidated balance sheets. As of June 30, 2018, the Company had $2.2 million of customer deposits. As of March 31, 2019, the Company had $1.9 million of customer deposits.

Upon adoption of ASC 606, the Company elected the following practical expedients and policy elections:

Costs for shipping and handling activities that occur before the customer obtains control of the product are accounted for as fulfillment activities. Accordingly, these expenses are recorded at the same time the Company recognizes revenue.

Incremental costs of obtaining a contract, specifically commissions, are recorded as an SG&A expense when incurred.

All taxes imposed on and concurrent with revenue-producing transactions and collected by the Company from a customer, including sales, use, excise, and franchise taxes are excluded from the measurement of the transaction price.

These accounting treatments are consistent with the Company’s policies prior to adoption of ASC 606. Therefore, there will be no impact to the consolidated financial statements.

Adoption of this standard did not result in significant changes to the Company’s accounting policies, business processes, systems or controls, or have a material impact on financial position, results from operations and cash flows or related disclosures. As such, prior period financial statements were not adjusted.

The following table disaggregates the Company’s net sales by product category for the quarter ended March 31, (in millions):

		2019		2018
Residential	$	93.8	$	105.3
Contract		17.7		21.6
Total	$	111.5	$	126.9

The following table disaggregates the Company’s net sales by product category for the nine months ended March 31, (in millions):

		2019		2018
Residential	$	289.3	$	317.9
Contract		54.1		58.2
Total	$	343.4	$	376.1

ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED – In February 2016, the FASB issued ASU 2016-02, Leases, which will require lessees to recognize most leases on their balance sheets related to the rights and obligations created by those leases and will expand disclosure requirements. The new guidance was issued to increase transparency and comparability among companies. In July 2018, the FASB approved an amendment to the new guidance that allows companies the option of using the effective date of the new standard as the initial application (at the beginning of the period in which it is adopted, rather than at the beginning of the earliest comparative period) and to recognize the effects of applying the new ASU as a cumulative effect adjustment to the opening balance sheet or retained earnings. Based on the effective dates, the Company expects to adopt the new guidance in the first quarter of fiscal 2020 using the new transition election to not restate comparative periods. The Company is still evaluating the impact to its consolidated financial statements and footnote disclosures. The Company expects to complete its analysis by the end of the fourth quarter of fiscal 2019.

Inventories

9 Months Ended

Mar. 31, 2019

Inventories [Abstract]

Inventories

2. INVENTORIES

A comparison of inventories is as follows:



(in thousands)	March 31,		June 30,
	2019		2018
Raw materials	$	13,040	$	13,335
Work in process and finished parts		7,112		7,195
Finished goods		75,776		75,674
Total	$	95,928	$	96,204

Property, Plant And Equipment

9 Months Ended

Mar. 31, 2019

Property, Plant and Equipment [Abstract]

Property, Plant And Equipment

PROPERTY, PLANT AND EQUIPMENT

In its third quarter results for fiscal 2019, the Company reported an $18.7 million impairment charge for the SAP ERP system work completed to date. Since the beginning of the ERP system project in late calendar year 2016, the Company had accumulated $27 million of capitalized expense associated with the development, configuration and preparation for implementation of the ERP system across the entire Company network and subsequent planned retirement of two legacy business information systems. On April 1, 2018, the Company implemented the ERP system on approximately 20% of its business by sales value. After significant disruption during this initial phase, analysis of root cause and corrective action activities, the Company stopped further implementation across the network and focused on stabilization of the new ERP system environment. Concurrently, the Company completed a thorough evaluation of the work completed to date, its usefulness in the context of future deployments and the potential for revised project scope. The analysis, which was completed during the third quarter of fiscal 2019, resulted in management’s determination that there was an impairment of $18.7 million of the ERP system assets due to incomplete or abandoned software components and capitalized amounts which are not recoverable. After the impairment determination, there remains a capitalized asset related to the ERP system of $7.2 million in net book value. This amount includes capabilities designed and configured for the ERP system either currently in use or developed for future implementation. Should the Company determine it does not intend to proceed with further roll out of the ERP system beyond the current implementation, $6.1 million in net book value of the remaining capitalized asset would be subject to potential impairment.

Fair Value Measurements

9 Months Ended

Mar. 31, 2019

Fair Value Measurements [Abstract]

Fair Value Disclosures [Text Block]

FAIR VALUE MEASUREMENTS

The Company’s cash and cash equivalents, investments, accounts receivable, other current assets, accounts payable and certain accrued liabilities are carried at amounts which reasonably approximate their fair value due to their short-term nature. GAAP on fair value measurement for certain financial assets and liabilities require that each asset and liability carried at fair value be classified into one of the following categories: Level 1: Quoted market prices in active markets for identical assets and liabilities; Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data; or Level 3: Unobservable inputs that are not corroborated by market data. The Company has not changed its valuation techniques in measuring the fair value of any financial assets and liabilities during the period.

During the nine months ended March 31, 2019, the Company purchased available-for-sale securities, U.S. Treasury bills and U.S. Agencies, which are recorded at fair market value. These securities are classified as “Investments” in the consolidated balance sheets. Unrealized gains or losses are recorded in “Accumulated other comprehensive loss” in the consolidated balance sheets. As of March 31, 2019, the Company had no investments recorded. As of June 30, 2018, the fair market value and book value of the investments were $16.0 million. These assets are classified as Level 1 in accordance with fair value measurements described above.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Credit Arrangements	9 Months Ended
Credit Arrangements	Mar. 31, 2019
Credit Arrangements [Abstract]
Credit Arrangements	5. CREDIT ARRANGEMENTS The Company maintains an unsecured credit agreement that provides short-term working capital financing up to $10.0 million with interest of LIBOR plus 1% (4.49% at March 31, 2019), including up to $4.0 million of letters of credit. Letters of credit outstanding at March 31, 2019 totaled $1.3 million. Other than the outstanding letters of credit, the Company did not utilize borrowing availability under the credit facility, leaving borrowing availability of $8.7 million as of March 31, 2019. The credit agreement expires June 30, 2019. At March 31, 2019, the Company was in compliance with all of the financial covenants contained in the credit agreement. The Company maintains an additional unsecured $10.0 million line of credit, with interest at prime minus 2% (3.5% at March 31, 2019). No amount was outstanding on the line of credit at March 31, 2019. This line of credit matures December 31, 2019.

Income Taxes

9 Months Ended

Mar. 31, 2019

Income Taxes [Abstract]

Income Taxes

INCOME TAXES

On December 22, 2017, the Tax Cuts and Jobs Act (“Tax Reform”), was enacted, which, among numerous provisions reduced the federal statutory corporate tax rate from 35% to 21%. Based on the provisions of the Tax Reform, the Company remeasured its deferred tax assets and liabilities and adjusted its estimated annual federal income tax rate to incorporate the lower corporate tax rate into the tax provision.

During the quarters ended March 31, 2019 and 2018, the effective tax rates were 22.6% and 31.7%, respectively.

During the nine months ended March 31, 2019 and 2018, the effective tax rates were 21.5% and 30.5%, respectively.

Stock-Based Compensation

9 Months Ended

Mar. 31, 2019

Stock-Based Compensation [Abstract]

Stock-Based Compensation

STOCK-BASED COMPENSATION

The Company has two stock-based compensation methods available when determining employee compensation.

(1)Long-Term Incentive Compensation Plans

Long-Term Incentive Compensation Plan

The Long-Term Incentive Compensation Plan provides for shares of common stock to be awarded to officers and key employees based on performance targets set by the Compensation Committee of the Board of Directors (the “Committee”). The Company’s shareholders previously approved 700,000 shares to be issued under the plan. As of March 31, 2019, 102,183 shares have been issued. The Committee selected fully-diluted earnings per share as the performance goal for the three-year performance periods July 1, 2016 – June 30, 2019 (2017-2019) and July 1, 2017 – June 30, 2020 (2018-2020), and July 1, 2018 – June 30, 2021 (2019-2021). The Committee also selected total shareholder return as a performance goal for the executive officers for the three-year performance periods 2017-2019, 2018-2020 and 2019-2021. Stock awards will be issued to participants as soon as practicable following the end of the performance periods subject to verification of results and Committee approval. The compensation cost related to the number of shares to be granted under each performance period is fixed on the grant date, which is the date the performance period begins.

During the quarter and nine months ended March 31, 2019, the Company reduced the provision due to underperformance in the amount of $0.2 million. During the quarter and nine months ended March 31, 2018, the Company recorded $0.2 million in plan expense. If the target performance goals for 2017-2019, 2018-2020 and 2019-2021 plans would be achieved, the total amount of compensation cost recognized over the requisite performance periods would be $0.8 million, $0.5 million and $0.3 million, respectively.

(2)Stock Plans

Omnibus Stock Plan

The Omnibus Stock Plan is for key employees, officers and directors and provides for the granting of incentive and nonqualified stock options, restricted stock, restricted stock units, stock appreciation rights and performance units. The Company’s shareholders previously approved 700,000 shares to be issued under the plan.

Under the Omnibus Stock Plan, options are granted at an exercise price equal to the fair market value of the underlying common stock at the date of grant and exercisable for up to 10 years. It is the Company’s policy to issue new shares upon exercise of stock options. The Company accepts shares of the Company’s common stock as payment for the exercise price of options. Shares received as payment are retired upon receipt. During the quarter ended March 31, 2019, the Company issued options for 34,087 common shares and recorded expense of $0.1 million related to stock option grants. The Company did not issue options or record expense for the quarter ended March 31, 2018.

During the nine months ended March 31, 2019 and 2018, the Company issued options for 100,392 and 21,439 common shares and recorded expense of $0.5 million and $0.2 million related to stock option grants, respectively.

Under the Omnibus Stock Plan, the Company issued 3,976 and 2,176 shares to non-executive directors as compensation and recorded expense of $0.1 million during the quarters ended March 31, 2019 and 2018, respectively. The Company issued 10,241 and 5,740 shares to non-executive directors as compensation and recorded expense of $0.3 million during the nine months ended March 31, 2019 and 2018, respectively.

During the three months ended March 31, 2019, the Company recorded compensation expense of ($0.1) million due to the cancellation of previously issued restricted stock units to executive officers whom are no longer with the Company. During the nine months ended March 31, 2019, the Company recorded $0.2 million compensation expense for grants of an aggregate 18,789 restricted stock units under the plan to two executive officers as per their notification of award letters dated July 1, 2018. In addition, the Company awarded 30,000 restricted stock units and 3,186 restricted stock shares to its Chief Executive Officer per notification of award letters dated December 28, 2018. The Company recorded $0.04 million compensation expense related to these grants to the Chief Executive Officer for the quarter and nine months ended March 31, 2019. The Company granted 4,169 restricted units as inducement grants to non-executive officers during the third quarter at a nominal expense. During the three and nine months ended March 31, 2018, the Company recorded $0.1 million and $0.2 million compensation expense for grants of an aggregate 6,280 restricted stock units under the plan to two executive officers as per their notification of award letters dated July 1, 2017.

At March 31, 2019, 384,794 shares were available for future grants under the plan.

2006 and 2009 Stock Option Plans

The 2006 and 2009 Stock Option Plans are for key employees, officers and directors and provide for granting incentive and nonqualified stock options. Under the plans, options were granted at an exercise price equal to the fair market value of the underlying common stock at the date of grant and exercisable for up to 10 years. All options were exercisable when granted. No additional options can be granted under the 2006 and 2009 Stock Option Plans.

(3) Outside a Plan

During the quarter ended December 31, 2018, the Company awarded its Chief Executive Officer 55,000 options outside any Company stock plan. The Company recorded $0.1 million compensation expense related to this grant during the quarter and nine months ended March 31, 2019.

(4)Summary

A summary of the status of the Company’s stock plans as of March 31, 2019, June 30, 2018 and 2017 and the changes during the periods then ended is presented below:



			Weighted		Aggregate
	Shares		Average		Intrinsic Value
	(in thousands)		Exercise Price		(in thousands)
Outstanding at June 30, 2017	187	$	27.21	$	5,039
Granted	21		45.21
Exercised	(21)		18.89
Canceled	(21)		26.77
Outstanding at June 30, 2018	166	$	30.65	$	1,841
Granted	100		26.89
Exercised	(5)		15.50
Canceled	(11)		37.14
Outstanding at March 31, 2019	250	$	29.18	$	329

The following table summarizes information for options outstanding and exercisable at March 31, 2019:




		Options	Weighted Average
	Range of	Outstanding	Remaining		Exercise
	Prices	(in thousands)	Life (Years)		Price
$	8.55 - 13.90	14	2.0	$	11.91
	17.23 - 19.77	25	3.0		18.82
	20.50 - 27.57	100	7.8		24.27
	31.06 - 32.80	62	7.7		32.29
	43.09 - 47.45	49	7.5		45.37
$	8.55 - 47.45	250	6.9	$	29.18

Earnings Per Share

9 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS PER SHARE

Basic earnings per share (EPS) of common stock are based on the weighted-average number of common shares outstanding during each period. Diluted earnings per share of common stock include the dilutive effect of potential common shares outstanding. The Company’s potential common shares outstanding are stock options, shares associated with the Long-Term Incentive Compensation Plan and non-vested shares. The Company calculates the dilutive effect of outstanding options using the treasury stock method. Anti-dilutive shares are not included in the computation of diluted EPS when their exercise price is greater than the average closing market price of the common shares. The Company calculates the dilutive effect of shares related to the Long-Term Incentive Compensation Plan and non-vested shares based on the number of shares, if any, that would be issuable if the end of the fiscal period were the end of the contingency period.

In computing EPS for the quarter and nine months ended March 31, 2019, there are no dilutive shares as the company reported a net loss. For the quarter and nine months ended March 31, 2018, net income as reported for each respective period is divided by the fully diluted weighted-average number of shares outstanding:



	Three Months Ended		Nine Months Ended
	March 31,		March 31,
(in thousands)	2019	2018	2019	2018

Basic shares	7,892	7,853	7,884	7,844

Potential common shares:
Stock options	-	57	-	67
Long-term incentive plan	-	15	-	15
Non-vested shares	-	5	-	3
	-	77	-	85

Diluted shares	7,892	7,930	7,884	7,929

Anti-dilutive shares	-	61	-	22

Cash dividends declared per common share were $0.22 and $0.66 for the quarters and nine months ended March 31, 2019 and 2018.

Litigation

9 Months Ended

Mar. 31, 2019

Litigation [Abstract]

Litigation

LITIGATION

Environmental Matters – In March 2016, the Company received a General Notice Letter for the Lane Street Groundwater Superfund Site (the “Lane Street Site”) located in Elkhart, Indiana from the U.S. Environmental Protection Agency (EPA). In April 2016, the EPA issued their proposed clean-up plan for groundwater pollution and request for public comment. The Company responded to the request for public comment in May 2016. The EPA issued a Record of Decision selecting a remedy in August 2016 and estimated total costs to remediate of $3.6 million. In July 2017, the EPA issued a Special Notice Letter to the Company demanding that the Company perform the remedy selected and pay for the remediation cost and past response costs of $5.5 million. On October 12, 2017, the Company, after consultation with its insurance carriers, offered an amount, fully reimbursable by insurance coverage, to the EPA to resolve this matter. On November 6, 2017, the settlement offer extended on October 12, 2017 was rejected.

In April 2018, the EPA issued a Unilateral Administrative Order for Remedial Design and Remedial Action (the “Order”) against the Company. The Order was issued under Section 106(a) of the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), 42 U.S.C. §9606(a). The Order directs the Company to perform remedial design and remedial action for the Lane Street Site. The Order was to be effective May 29, 2018. To ensure completion of the remediation work, the EPA required the Company to secure financial assurance in the initial amount of $3.6 million, which as noted above, is the estimated cost of remedial work. The Company believes that financial assurance is not required because it meets the relevant financial test criteria as provided in the Order. In May 2018, the EPA agreed to suspend enforcement of the Order so that the Company could conduct environmental testing upgradient to its former manufacturing location pursuant to an Administrative Order on Consent (AOC). On July 5, 2018, the EPA proposed a draft AOC, to which the Company provided revisions. During the latter part of 2018, Flexsteel submitted to the EPA its proposed work plan for the upgradient testing to be conducted pursuant to the draft AOC. The EPA provided comments on that documentation on December 4, 2018. On January 23, 2019, Flexsteel submitted responses to the EPA’s comments and revised work plan documents. On April 24, 2019, the Company signed the finalized AOC with the EPA to conduct the upgradient investigation. The Company reflected a $3.6 million liability in the consolidated financial results for the fiscal year ended June 30, 2018. Despite the Company’s position that it did not cause nor contribute to the contamination, the Company continues to reflect this liability in the consolidated financials for the quarter and nine months ended March 31, 2019 in accordance with FASB issued Asset Retirement and Environmental Obligations (ASC 410-30). The Company continues to evaluate the Order, its legal options and insurance coverages to assert its defense and recovery of current and future expenses related to this matter.

Other Proceedings – From time to time, the Company is subject to various other legal proceedings, including lawsuits, which arise out of, and are incidental to, the conduct of the Company’s business. The Company does not consider any of such other proceedings that are currently pending, individually or in the aggregate, to be material to its business or likely to result in a material effect on its consolidated operating results, financial condition, or cash flows.

Subsequent Event

9 Months Ended

Mar. 31, 2019

Subsequent Events [Abstract]

Subsequent Event

SUBSEQUENT EVENTS

As of May 2, 2019, there were no subsequent events, other than the item mentioned in Note 9.

Accounting Policies (Policies)

9 Months Ended

Mar. 31, 2019

Revenue Recognition, Policy [Policy Text Block]

Upon adoption of ASC 606, the Company elected the following practical expedients and policy elections:

Incremental costs of obtaining a contract, specifically commissions, are recorded as an SG&A expense when incurred.

These accounting treatments are consistent with the Company’s policies prior to adoption of ASC 606. Therefore, there will be no impact to the consolidated financial statements.

Accounting Standards Update 2016-02 [Member]

New Accounting Pronouncements, Policy

Accounting Standards Update 2014-09 [Member]

New Accounting Pronouncements, Policy

Accounting Pronouncement Rev Rec (Tables)

9 Months Ended

Mar. 31, 2019

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue [Table Text Block]

The following table disaggregates the Company’s net sales by product category for the quarter ended March 31, (in millions):

		2019		2018
Residential	$	93.8	$	105.3
Contract		17.7		21.6
Total	$	111.5	$	126.9

The following table disaggregates the Company’s net sales by product category for the nine months ended March 31, (in millions):

		2019		2018
Residential	$	289.3	$	317.9
Contract		54.1		58.2
Total	$	343.4	$	376.1

Inventories (Tables)

9 Months Ended

Mar. 31, 2019

Inventories [Abstract]

Comparison Of Inventories



(in thousands)	March 31,		June 30,
	2019		2018
Raw materials	$	13,040	$	13,335
Work in process and finished parts		7,112		7,195
Finished goods		75,776		75,674
Total	$	95,928	$	96,204

Stock-Based Compensation (Tables)

9 Months Ended

Mar. 31, 2019

Stock-Based Compensation [Abstract]

Schedule Of Stock Option Plans



			Weighted		Aggregate
	Shares		Average		Intrinsic Value
	(in thousands)		Exercise Price		(in thousands)
Outstanding at June 30, 2017	187	$	27.21	$	5,039
Granted	21		45.21
Exercised	(21)		18.89
Canceled	(21)		26.77
Outstanding at June 30, 2018	166	$	30.65	$	1,841
Granted	100		26.89
Exercised	(5)		15.50
Canceled	(11)		37.14
Outstanding at March 31, 2019	250	$	29.18	$	329

Earnings Per Share (Tables)

9 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted



	Three Months Ended		Nine Months Ended
	March 31,		March 31,
(in thousands)	2019	2018	2019	2018

Basic shares	7,892	7,853	7,884	7,844

Potential common shares:
Stock options	-	57	-	67
Long-term incentive plan	-	15	-	15
Non-vested shares	-	5	-	3
	-	77	-	85

Diluted shares	7,892	7,930	7,884	7,929

Anti-dilutive shares	-	61	-	22

Accounting Pronouncement Rev Rec (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Jun. 30, 2018
Revenue from Contract with Customer, Excluding Assessed Tax	$ 111,542	$ 126,861	$ 343,381	$ 376,087
Contract with Customer, Liability	1,900		1,900		$ 2,200
Residential [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	93,800	105,300	289,300	317,900
Contract[Member]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 17,700	$ 21,600	$ 54,100	$ 58,200

Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jun. 30, 2018
Inventories [Abstract]
Total inventories	$ 95,928	$ 96,204
Raw materials, net of reserves	13,040	13,335
Work in process and finished parts, net of reserves	7,112	7,195
Finished goods, net of reserves	$ 75,776	$ 75,674

Property, Plant And Equipment (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2019	Mar. 31, 2019	Mar. 31, 2018
Property, Plant and Equipment [Line Items]
Capitalized Computer Software, Gross	$ 27,000	$ 27,000
ERP Impairment Expense	18,668	18,668
Capitalized Computer Software, Net	7,200	7,200
Gain on sale of facility			$ 1,835
Potential Impairment [Member]
Property, Plant and Equipment [Line Items]
Capitalized Computer Software, Net	$ 6,100	$ 6,100

Fair Value Measurements (Details) $ in Thousands	Jun. 30, 2018 USD ($)
Fair Value Measurements [Abstract]
Investments	$ 15,951

Credit Arrangements (Details) $ in Millions	9 Months Ended
Credit Arrangements (Details) $ in Millions	Mar. 31, 2019 USD ($)
Line of Credit Facility [Line Items]
Credit agreement capacity	$ 10.0
Interest rate over LIBOR	1.00%
Libor Plus 1 [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate, Effective Percentage	4.49%
Prime Minus 2 [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate, Effective Percentage	3.50%
Letter Of Credit [Member]
Line of Credit Facility [Line Items]
Credit agreement capacity	$ 4.0
Line of Credit Facility, Amount Outstanding	1.3
Line of Credit Facility, Remaining Borrowing Capacity	8.7
Unsecured [Member]
Line of Credit Facility [Line Items]
Credit agreement capacity	$ 10.0
Interest rate under prime rate	2.00%

Stock-Based Compensation (Narrative) (Details) - USD ($)	3 Months Ended			9 Months Ended
	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	$ 100,000			$ 100,000
Options issued under stock option plans		55,000
Stock Option Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period options are excercisable				10 years
Shares available for future grants	0			0
Long-Term Management Incentive Compensation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares approved to be issued under plan	700,000			700,000
Shares issued				102,183
Compensation cost	$ (200,000)		$ 200,000	$ (200,000)	$ 200,000
Long-Term Management Incentive Compensation Plan [Member] \| 2017-2019 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost				800,000
Long-Term Management Incentive Compensation Plan [Member] \| 2018-2020 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost				500,000
Long-Term Management Incentive Compensation Plan [Member] \| 2019-2021Member
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost				$ 300,000
Omnibus Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares approved to be issued under plan	700,000			700,000
Compensation cost	$ 100,000			$ 500,000	$ 200,000
Period options are excercisable				10 years
Options issued under stock option plans	34,087			100,392	21,439
Shares available for future grants	384,794			384,794
Omnibus Stock Plan [Member] \| Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued	3,976		2,176	10,241	5,740
Compensation cost	$ 100,000		$ 100,000	$ 300,000	$ 300,000
Omnibus Stock Plan [Member] \| Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	$ 40,000			$ 40,000
Restricted Stock Unit				30,000
Omnibus Stock Plan [Member] \| Chief Executive Officer [Member] \| Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued				3,186
Omnibus Stock Plan [Member] \| Non-Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted Stock Unit	4,169
Omnibus Stock Plan [Member] \| Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued					6,280
Compensation cost	$ (100,000)			$ 200,000
Restricted Stock Unit Expense			$ 100,000		$ 200,000
Restricted Stock Unit				18,789

Stock-Based Compensation (Schedule Of Stock Option Plans) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended	12 Months Ended
	Mar. 31, 2019	Jun. 30, 2018	Jun. 30, 2017
Stock-Based Compensation [Abstract]
Shares, Outstanding	166	187
Shares, Granted	100	21
Shares, Exercised	(5)	(21)
Shares, Canceled	(11)	(21)
Shares, Outstanding	250	166
Weighted Average Exercise Price, Oustanding	$ 30.65	$ 27.21
Weighted Average Exercise Price, Granted	26.89	45.21
Weighted Average Exercise Price, Exercised	15.50	18.89
Weighted Average Exercise Price, Canceled	37.14	26.77
Weighted Average Exercise Price, Oustanding	$ 29.18	$ 30.65
Aggregate Intrinsic Value	$ 329	$ 1,841	$ 5,039

Stock-Based Compensation (Schedule Of Options Outstanding And Exercisable) (Details) shares in Thousands	9 Months Ended
	Mar. 31, 2019 $ / shares shares
8.55 - 13.90 [Member]
Share-Based Compensation, Shares Authorized Under Stock Option Plans, Exercise Price Range [Line Items]
Range of Price Lower	$ 8.55
Range of Price Upper	$ 13.90
Options Outstanding \| shares	14
Weighted Average Remaining Life, Years	2 years
Weighted Average Exercise Price	$ 11.91
17.23 - 19.77 [Member]
Share-Based Compensation, Shares Authorized Under Stock Option Plans, Exercise Price Range [Line Items]
Range of Price Lower	17.23
Range of Price Upper	$ 19.77
Options Outstanding \| shares	25
Weighted Average Remaining Life, Years	3 years
Weighted Average Exercise Price	$ 18.82
20.50 - 27.57 [Member]
Share-Based Compensation, Shares Authorized Under Stock Option Plans, Exercise Price Range [Line Items]
Range of Price Lower	20.50
Range of Price Upper	$ 27.57
Options Outstanding \| shares	100
Weighted Average Remaining Life, Years	7 years 9 months 18 days
Weighted Average Exercise Price	$ 24.27
31.06 - 32.80 [Member]
Share-Based Compensation, Shares Authorized Under Stock Option Plans, Exercise Price Range [Line Items]
Range of Price Lower	31.06
Range of Price Upper	$ 32.80
Options Outstanding \| shares	62
Weighted Average Remaining Life, Years	7 years 8 months 12 days
Weighted Average Exercise Price	$ 32.29
43.09 - 47.45 [Member]
Share-Based Compensation, Shares Authorized Under Stock Option Plans, Exercise Price Range [Line Items]
Range of Price Lower	43.09
Range of Price Upper	$ 47.45
Options Outstanding \| shares	49
Weighted Average Remaining Life, Years	7 years 6 months
Weighted Average Exercise Price	$ 45.37
8.55 - 47.45 [Member]
Share-Based Compensation, Shares Authorized Under Stock Option Plans, Exercise Price Range [Line Items]
Range of Price Lower	8.55
Range of Price Upper	$ 47.45
Options Outstanding \| shares	250
Weighted Average Remaining Life, Years	6 years 10 months 24 days
Weighted Average Exercise Price	$ 29.18

Income Taxes (Reconciliation Between The U.S. Federal Statutory Tax Rate And The Effective Tax Rate) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Income Taxes [Abstract]
Effective income tax rate	22.60%	31.70%	21.50%	30.50%
Income Tax Expense (Benefit)	$ (4,545)	$ 1,430	$ (3,470)	$ 6,790

Income Taxes (Primary Components Of Deferred Tax Assets And (Liabilities)) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jun. 30, 2018
Income Taxes [Abstract]
Long-term	$ 1,205	$ 1,455

Earnings Per Share (Details) - $ / shares shares in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Earnings Per Share [Abstract]
Basic	7,892	7,853	7,884	7,844
Stock options		57		67
Long-term incentive plan		15		15
Restricted shares		5		3
Potential common shares, total		77		85
Diluted	7,892	7,930	7,884	7,929
Anti-dilutive shares		61		22
Dividends declared per common share	$ 0.22	$ 0.22	$ 0.66	$ 0.66

Litigation (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
Litigation (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Mar. 31, 2018	Mar. 31, 2019	Jun. 30, 2018	Jul. 31, 2017	Aug. 31, 2016
Litigation [Abstract]
Loss Contingency, Estimate of Possible Loss					$ 5,500	$ 3,600
Environmental Remediation Expense	$ 3,600	$ 3,600
Accrued Environmental Loss Contingencies, Current			$ 3,600	$ 3,600