0000037472-21-000028 | 10-Q | XBRL Viewer

Three Months Ended

September 30,

(in thousands)

Total stock-based compensation expense

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Restructuring (Roll Forward of Accrued Restructuring Costs) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Restructuring Cost and Reserve [Line Items]
Accrual, Beginning balance	$ 1,522
Costs incurred	152	$ 1,381
Expenses paid	(282)
Accrual, Ending balance	1,392
One-time Employee Termination Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Accrual, Beginning balance	1,502
Costs incurred		179
Expenses paid	(130)
Accrual, Ending balance	1,372
Other Associated Costs [Member]
Restructuring Cost and Reserve [Line Items]
Accrual, Beginning balance	20
Costs incurred	152	$ 1,202
Expenses paid	(152)
Accrual, Ending balance	$ 20

Restructuring (Summary Of Restructuring Costs) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Restructuring Cost and Reserve [Line Items]
Restructuring costs	$ 152	$ 1,381
Operating Expenses [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring costs	152	1,381
One-time Employee Termination Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring costs		179
Other Associated Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring costs	$ 152	$ 1,202

Earnings Per Share (Schedule Of Earnings Per Share, Basic And Diluted) (Details) - shares shares in Thousands	3 Months Ended
	Sep. 30, 2021	Mar. 31, 2021	Sep. 30, 2020
Earnings Per Share [Abstract]
Basic shares	6,834	6,834	7,702
Stock options		163	72
Non-vested restricted stock units and restricted shares		93	134
Potential common shares, total		256	206
Diluted shares	7,090	7,090	7,908
Anti-dilutive shares		16	200

Leases (Narrative) (Details) $ in Millions	Sep. 28, 2021 USD ($) ft²	Aug. 20, 2021 USD ($) ft²
Mexicali, Mexico [Member]
Short-term Debt [Line Items]
Area of Real Estate Property \| ft²		507,830
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract		12 years
Lessee, Operating Lease, Lease Not yet Commenced, Renewal Term		5 years
Base rent under the lease \| $		$ 3.1
Greencastle, PA [Member]
Short-term Debt [Line Items]
Area of Real Estate Property \| ft²	241,920
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract	125 months
Lessee, Operating Lease, Lease Not yet Commenced, Renewal Term	5 years
Base rent under the lease \| $	$ 1.8

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2021	Jun. 30, 2018
CURRENT ASSETS:
Cash and cash equivalents	$ 3,995	$ 1,342
Trade receivables - less allowances: September 30, 2021, $3,360, June 30, 2021, $3,240	48,246	55,986
Inventories	193,700	161,125
Other	10,868	9,421
Assets held for sale	616	666
Total current assets	257,425	228,540
NONCURRENT ASSETS:
Property, plant and equipment, net	39,159	39,783
Operating lease right-of-use assets	25,915	27,057
Other assets	1,391	1,399
TOTAL ASSETS	323,890	296,779
CURRENT LIABILITIES:
Accounts payable - trade	44,948	67,773
Current portion of operating lease liabilities	5,664	5,833
Accrued liabilities:
Payroll and related items	6,357	7,662
Insurance	2,935	3,062
Restructuring costs	1,392	1,522
Advertising	5,001	5,196
Environmental remediation	3,570	3,570
Other	6,103	5,133
Total current liabilities	75,970	99,751
LONG-TERM LIABILITIES:
Operating lease liabilities, less current maturities	23,412	24,317
Line of Cedit	53,053	3,500
Other liabilities	1,184	1,243
Total liabilities	153,619	128,811	$ 3,600
SHAREHOLDERS' EQUITY:
Common stock - $1 par value; authorized 15,000 shares; 8,143 shares issued and 6,810 outstanding as of September 30, 2021; 8,133 shares issued and 6,848 outstanding as of June 30, 2021	8,143	8,133
Additional paid-in capital	34,917	34,015
Treasury stock, at cost; 1,333 shares and 1,284 shares as of September 30, 2021, and June 2021, respectively	(33,235)	(31,320)
Retained earnings	160,446	157,140
Total shareholders' equity	170,271	167,968
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 323,890	$ 296,779

Earnings Per Share

3 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

Earnings Per Share

9. 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 restricted stock units and restricted shares. The Company calculates the dilutive effect of outstanding options, restricted stock

units and restricted shares using the treasury stock method. Anti-dilutive options 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.



	Three Months Ended
	September 30,
(in thousands)	2021		2020
Basic shares		6,834		7,702
Potential common shares:
Stock options		163		72
Non-vested restricted stock units and restricted shares		93		134
		256		206
Diluted shares		7,090		7,908

Anti-dilutive shares		16		200

Cash dividends declared per common share were $0.15 and $0.15 for the three months ended September 30, 2021, and September 30, 2020, respectively.

Income Taxes (Narrative) (Details)	3 Months Ended
Income Taxes (Narrative) (Details)	Sep. 30, 2021	Sep. 30, 2020
Income Taxes [Abstract]
Effective Income Tax Rate, Continuing Operations	23.20%	51.30%

Inventories

3 Months Ended

Sep. 30, 2021

Inventories [Abstract]

Inventories

2. INVENTORIES

A comparison of inventories is as follows:



	September 30,		June 30,
(in thousands)	2021		2021
Raw materials	$	26,460	$	22,500
Work in process and finished parts		7,267		6,234
Finished goods		159,973		132,391
Total	$	193,700	$	161,125

Consolidated Statements Of Changes In Shareholders' Equity (Parenthetical) - $ / shares	Sep. 30, 2021	Sep. 30, 2020
Common stock, par value	$ 1
Total Par Value Of Common Shares [Member]
Common stock, par value	$ 1	$ 1

Leases (Components Of Leases) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Leases [Abstract]
Operating lease expense	$ 1,389	$ 1,074
Variable lease expense	75	69
Total lease expense	$ 1,464	$ 1,143

Stock-Based Compensation (Narrative) (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2021 USD ($) item	Jun. 30, 2020 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of plans \| item	2
Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized stock-based compensation, expected period	1 year 6 months
Total unrecognized stock-based compensation expense related to options	$ 120
Restricted Shares And RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized stock-based compensation related to unvested shares	$ 700
Total unrecognized stock-based compensation, expected period	1 year 6 months
Long-Term Incentive Compensation Plan [Member] \| Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized stock-based compensation related to unvested shares	$ 3,850
Total unrecognized stock-based compensation, expected period	1 year 8 months 12 days
Stock Option Plans [Member] \| Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period options are exercisable	10 years
Stock-based Compensation Outside A Plan [Member] \| Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized stock-based compensation related to unvested shares	$ 40
Total unrecognized stock-based compensation, expected period	1 year 6 months
Stock-based Compensation Outside A Plan [Member] \| Chief Financial Officer/Chief Operating Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options issued under stock option plans \| shares		79,000
Minimum [Member] \| Restricted Shares And RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period	1 year
Maximum [Member] \| Restricted Shares And RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period	3 years

Assets Held For Sale

3 Months Ended

Sep. 30, 2021

Assets Held For Sale [Abstract]

Assets Held For Sale

3. ASSETS HELD FOR SALE

During fiscal year 2020, the Company committed to a plan to sell assets located at the Company’s Harrison, Arkansas; Dubuque, Iowa; and Starkville, Mississippi locations as part of the Company’s restructuring plan, see Note 5 Restructuring. A summary of the assets held for sale as of September 30, 2021, is included in the table below.



				Accumulated		Net Book
Location	Asset Category	Cost		Depreciation		Value
(in thousands)
Starkville, Mississippi	Building & building improvements		4,615		(4,254)		361
	Land & land improvements		694		(439)		255
	Total Starkville		5,309		(4,693)		616

	Total assets held for sale	$	5,309	$	(4,693)	$	616

On September 10, 2021, the Company closed on the sale of the Harrison property resulting in net proceeds to the Company of $1.5 million after customary closing costs, prorations, and sales commissions and the Company recorded a pre-tax gain of $1.4 million which is reflected in the (gain) on disposal of assets due to restructuring in the Company’s Consolidated Statements of Income.

Stock-Based Compensation (Tables)

3 Months Ended

Sep. 30, 2021

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary Of Total Stock-Based Compensation Expense

Schedule Of Stock Option Plans



		Weighted
	Shares	Average
	(in thousands)	Exercise Price
Outstanding at June 30, 2021	232	$	21.91
Granted	—		—
Exercised	—		—
Cancelled	(7)		45.18
Outstanding at September 30, 2021	225	$	21.22

Schedule Of Options Outstanding And Exercisable



		Options	Weighted Average
Range of		Outstanding	Remaining	Exercise
Prices		(in thousands)	Life (Years)	Price
$	9.97 - 15.14	104	7.8	$	12.72
	18.30 - 19.72	15	4.8		19.11
	21.96 - 27.57	58	5.6		24.21
	31.06 - 32.80	32	4.7		32.30
	43.09 - 47.45	16	5.0		45.42
$	9.97 - 47.45	225	6.4	$	21.22

Restricted Shares And RSUs [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule Of Unvested Shares



		Weighted Average
	Shares	Fair Value
	(in thousands)	Per Share
Unvested as of June 20, 2021	56	$	26.81
Granted	3		42.50
Vested	(15)		27.46
Forfeited	(1)		19.77
Unvested as of September 30, 2021	43	$	27.82

Long-Term Incentive Compensation Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule Of Unvested Shares


	Time Based Vest (RSUs)			Performance Based Vest (PSUs)			Total
		Weighted Average			Weighted Average			Weighted Average
		Fair Value			Fair Value			Fair Value
(shares in thousands)	Shares	Per Share		Shares	Per Share		Shares	Per Share
Unvested as June 30, 2021	107	$	13.89	142	$	13.36	249	$	13.59
Granted	27		42.50	40		42.50	67		42.50
Forfeited	—		—	—		—	—		—
Unvested as of September 30, 2021	134	$	19.63	182	$	19.80	316	$	19.73

Restructuring (Tables)

3 Months Ended

Sep. 30, 2021

Restructuring [Abstract]

Summary Of Restructuring Costs



	Three Months Ended
(in thousands)	September 30, 2021		September 30, 2020
One-time employee termination benefits		—		179
Other associated costs		152		1,202
Total restructuring and related expenses	$	152	$	1,381
Reported as:
Operating expenses	$	152	$	1,381

Components Of Restructuring Costs



	One-time
	Employee		Other
	Termination		Associated
(in thousands)	Benefits		Costs		Total
Accrual balance at June 30, 2021	$	1,502	$	20	$	1,522
Costs incurred		—		152		152
Expenses paid		(130)		(152)		(282)
Accrual balance at September 30, 2021	$	1,372	$	20	$	1,392

Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
OPERATING ACTIVITIES:
Net income	$ 4,353	$ 3,879
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation	1,327	1,360
Deferred income taxes		2,111
Stock-based compensation expense	1,162	954
Change in provision for losses on accounts receivable	120	(25)
(Gain) on disposal of assets	(1,400)	(637)
Changes in operating assets and liabilities:
Trade receivables	7,620	(7,542)
Inventories	(32,574)	(5,173)
Other current assets	(1,449)	(2,293)
Other assets	8	13
Accounts payable - trade	(22,706)	1,054
Accrued liabilities	(726)	3,870
Other long-term liabilities	(50)	243
Net cash (used in) operating activities	(44,315)	(2,186)
INVESTING ACTIVITIES:
Purchases of investments		(8)
Proceeds from sales of investments		8
Proceeds from sale of capital assets	1,450	679
Capital expenditures	(821)	(360)
Net cash provided by investing activities	629	319
FINANCING ACTIVITIES:
Dividends paid	(1,050)	(454)
Treasury stock purchases	(1,915)	(9,000)
Proceeds from lines of credit	74,565
Payments on lines of credit	(25,013)
Shares withheld for tax payments on vested shares	(248)	(329)
Net cash provided by (used in) financing activities	46,339	(9,783)
Increase (decrease) in cash and cash equivalents	2,653	(11,650)
Cash and cash equivalents at beginning of period	1,342	48,197
Cash and cash equivalents at end of period	3,995	36,547
SUPPLEMENTAL INFORMATION
Cash paid for amounts included in lease liabilities	1,074	1,035
Right-of-use assets exchanged for lease liabilities		2,741
Interest paid	157
Income taxes paid (refunded), net	741	$ (388)
Capital expenditures in accounts payable	$ (119)

Assets Held For Sale (Narrative) (Details) - USD ($) $ in Thousands		3 Months Ended
	Sep. 10, 2021	Sep. 30, 2021	Sep. 30, 2020
Long Lived Assets Held-for-sale [Line Items]
(Gain) on disposal of assets		$ 1,400	$ 637
Harrison, Arkansas [Member]
Long Lived Assets Held-for-sale [Line Items]
Proceeds from Sale of Property Held-for-sale	$ 1,500
(Gain) on disposal of assets	$ 1,400

Leases (Other Lease Information) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Leases [Abstract]
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases	$ 1,074	$ 1,035
Right-of-use assets obtained in exchange for lease liabilities: Operating leases		$ 2,741
Weighted-average remaining lease term (in years): Operating leases	3 years 9 months 18 days	1 year 7 months 6 days
Weighted-average discount rate: Operating leases	2.90%	3.30%

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Sep. 30, 2021	Jun. 30, 2021
Consolidated Balance Sheets [Abstract]
Trade receivables, allowance for doubtful accounts	$ 3,360	$ 3,240
Common stock, par value	$ 1	$ 1
Common stock, authorized	15,000	15,000
Common stock, issued	8,143	8,133
Common stock, outstanding	6,810	6,848
Treasury stock, shares	1,333	1,284

Assets Held For Sale (Summary Of Assets Held For Sale) (Details) - Disposal Group, Held-for-sale, Not Discontinued Operations [Member] $ in Thousands	Sep. 30, 2021 USD ($)
Long Lived Assets Held-for-sale [Line Items]
Cost	$ 5,309
Accumulated Depreciation	(4,693)
Net Book Value	616
Starkville, Mississippi [Member]
Long Lived Assets Held-for-sale [Line Items]
Cost	5,309
Accumulated Depreciation	(4,693)
Net Book Value	616
Buildings and improvements [Member] \| Starkville, Mississippi [Member]
Long Lived Assets Held-for-sale [Line Items]
Cost	4,615
Accumulated Depreciation	(4,254)
Net Book Value	361
Land and Land Improvements [Member] \| Starkville, Mississippi [Member]
Long Lived Assets Held-for-sale [Line Items]
Cost	694
Accumulated Depreciation	(439)
Net Book Value	$ 255

Earnings Per Share (Tables)

3 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

Schedule Of Earnings Per Share, Basic And Diluted



	Three Months Ended
	September 30,
(in thousands)	2021		2020
Basic shares		6,834		7,702
Potential common shares:
Stock options		163		72
Non-vested restricted stock units and restricted shares		93		134
		256		206
Diluted shares		7,090		7,908

Anti-dilutive shares		16		200

Earnings Per Share (Narrative) (Details) - $ / shares	3 Months Ended
Earnings Per Share (Narrative) (Details) - $ / shares	Sep. 30, 2021	Sep. 30, 2020
Earnings Per Share [Abstract]
Dividends declared per common share	$ 0.15	$ 0.15

Stock-Based Compensation (Schedule Of Stock Option Plans) (Details) shares in Thousands	3 Months Ended
	Sep. 30, 2021 $ / shares shares
Stock-Based Compensation [Abstract]
Shares, Outstanding at beginning balance \| shares	232
Shares, Cancelled \| shares	(7)
Shares, Outstanding at ending balance \| shares	225
Weighted Average Exercise Price, Outstanding at beginning balance \| $ / shares	$ 21.91
Weighted Average Exercise Price, Cancelled \| $ / shares	45.18
Weighted Average Exercise Price, Outstanding at ending balance \| $ / shares	$ 21.22

Leases

3 Months Ended

Sep. 30, 2021

Leases [Abstract]

Leases

4. LEASES

The Company accounts for its leases in accordance with ASU No. 2016-02, Leases (Topic 842) (“ASC 842”). ASC 842 requires lessees to (i) recognize a right of use asset (“ROU asset”) and a lease liability that is measured at the present value of the remaining lease payments on the Consolidated Balance Sheets, (ii) recognize a single lease cost, calculated over the lease term on a straight-line basis and (iii) classify lease related cash payments within operating and financing activities. The Company has made an accounting policy election to not recognize short-term leases on the Consolidated Balance Sheets and all non-lease components, such as common area maintenance, were excluded. At any given time during the lease term, the lease liability represents the present value of the remaining lease payments, and the ROU asset is measured as the amount of the lease liability, adjusted for pre-paid rent, unamortized initial direct costs and the remaining balance of lease incentives received. Both the lease ROU asset and liability are reduced to zero at the end of the lease term.

The Company leases distribution centers and warehouses, manufacturing facilities, showrooms, and office space. At the lease inception date, the Company determines if an arrangement is, or contains a lease. Some of the Company’s leases include options to renew at similar terms. The Company assesses these options to determine if the Company is reasonably certain of exercising these options based on relevant economic and financial factors. Options that meet these criteria are included in the lease term at the lease commencement date.

On August 20, 2021, Flexsteel entered into a lease agreement for the construction of a 507,830 square foot manufacturing facility in Mexicali, Mexico. The lease commencement date under ASC842 guidance will be April 1, 2022, the date the lessor makes the building available for use by the Company for purposes of completing any leasehold improvements required by the Company prior to beginning operations. The 12-year lease term begins on June 1, 2022, and ends on May 31, 2034, with options for two five-year extensions. Annual base rent under the lease is $3.1 million plus taxes, insurance, and common area maintenance costs.

On September 28, 2021, Flexsteel entered into a Warehousing Agreement, a component of which meets the definition of a lease under ASC842. The lease component includes a 241,920 square foot facility in Greencastle, Pennsylvania, and all improvements and equipment necessary to operate the facility. The lease commencement date is October 1, 2021, the date the building became available for use by the Company. The 125-month lease term began on October 1, 2021, and ends on February 28, 2034, with an option for a 5-year extension. Annual base rent under the lease is $1.8 million plus taxes, insurance, utilities, and common area maintenance costs.

For purposes of measuring the Company’s ROU asset and lease liability, the discount rate utilized by the Company was based on the average interest rates effective for the Company’s line of credit. Some of the Company’s leases contain variable rent payments, including common area maintenance and utilities. Due to the variable nature of these costs, they are not included in the measurement of the ROU asset and lease liability.

The components of the Company’s leases reflected on the Company’s Consolidated Statements of Income were as follows:



	Three Months Ended
(in thousands)	September 30, 2021		September 30, 2020
Operating lease expense	$	1,389	$	1,074
Variable lease expense		75		69
Total lease expense	$	1,464	$	1,143

Other information related to leases and future minimum lease payments under non-cancellable operating leases were as follows:



	Three Months Ended
	September 30, 2021		September 30, 2020
(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,074	$	1,035

Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	—	$	2,741

Weighted-average remaining lease term (in years):
Operating leases		3.8		1.6

Weighted-average discount rate:
Operating leases		2.9%		3.3%

Future minimum lease payments under non-cancellable operating leases were as follows:


	Three Months Ended
	September 30, 2021		September 30, 2020
(in thousands)
Within one year	$	6,591	$	4,601
After one year and within two years		5,517		4,327
After two years and within three years		4,563		3,159
After three years and within four years		2,620		2,189
After four years and within five years		2,469		200
After five years		11,273		—
Total future minimum lease payments	$	33,033	$	14,476
Less – Discount		3,957		809
Lease liability	$	29,076	$	13,667

Basis of Presentation and Description of Business (Policies)	3 Months Ended
	Sep. 30, 2021
Basis of Presentation and Description of Business [Abstract]
Description Of Business	DESCRIPTION OF BUSINESS – Flexsteel Industries, Inc. and Subsidiaries (the “Company” or “Flexsteel” or “Our”) is one of the largest manufacturers, importers and online marketers of furniture products in the United States. Product offerings include a wide variety of furniture such as sofas, loveseats, chairs, reclining and rocker-reclining chairs, swivel rockers, sofa beds, convertible bedding units, occasional tables, desks, dining tables and chairs and bedroom furniture. A featured component in most of the upholstered furniture is a unique steel drop-in seat spring from which the name “Flexsteel” is derived. The Company distributes its products throughout the United States through its e-commerce channel and dealer sales force.
COVID-19	COVID-19 - In March 2020, a novel strain of coronavirus (“COVID-19”) was declared a global pandemic by the World Health Organization. This pandemic has negatively affected the U.S. and global economies, disrupted global supply chains and financial markets, led to significant travel and transportation restrictions, including mandatory business closures and orders to shelter in place. The Company’s business operations and financial performance for fiscal year 2020 were impacted by COVID-19. During the year ended June 30, 2021, the Company saw improvement in our business conditions as retailers reopened and orders increased, however, we continued to see supply chain challenges faced by the furniture industry due to the limited availability of ocean containers and significant increases in ocean container rates, limited availability and inflationary pressures in key materials, and labor shortages both in Asia and the United States. These supply chain issues have continued during the three months ended September 30, 2021. The COVID-19 pandemic remains fluid and the extent of the impact to our business may be significant, however, we are unable to predict the extent or nature of these impacts at this time.
Basis Of Presentation	BASIS OF PRESENTATION – The Consolidated Financial Statements included herein have been prepared by 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 months ended September 30, 2021, are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2022. 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, 2021, appropriately represent, in all material respects, the current status of accounting policies and are incorporated by reference.
Recently Adopted Accounting Pronouncements	RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS – In December 2019, the FASB issued ASU 2019-12 “Income Taxes Simplifying the Accounting for Income Taxes (Topic 740)” as part of its initiative to reduce complexity in the accounting standards. The amendments in ASU 2019-12 eliminate certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also clarifies and simplifies other aspects of the accounting for income taxes. The amendments in this guidance were effective for fiscal years beginning after December 15, 2020, with early adoption permitted. Effective July 1, 2021, the Company adopted Topic 740 and there was no impact to the Company’s financial statements.

Assets Held For Sale (Tables)

3 Months Ended

Sep. 30, 2021

Assets Held For Sale [Abstract]

Summary Of Assets Held For Sale



				Accumulated		Net Book
Location	Asset Category	Cost		Depreciation		Value
(in thousands)
Starkville, Mississippi	Building & building improvements		4,615		(4,254)		361
	Land & land improvements		694		(439)		255
	Total Starkville		5,309		(4,693)		616

	Total assets held for sale	$	5,309	$	(4,693)	$	616

Consolidated Statements Of Changes In Shareholders' Equity - USD ($) $ in Thousands	Total Par Value Of Common Shares [Member]	Additional Paid-In Capital [Member]	Treasury Stock [Member]	Retained Earnings [Member]	Total
Stockholders' Equity Attributable to Parent, Beginning Balance at Jun. 30, 2020	$ 8,008	$ 31,748	$ (1,563)	$ 137,312	$ 175,505
Stock-based compensation	2	954			956
Vesting of restricted stock units and restricted shares	55	(387)			(332)
Treasury stock purchases			(9,000)		(9,000)
Cash dividends declared				(383)	(383)
Net income				3,879	3,879
Stockholders' Equity Attributable to Parent, Ending Balance at Sep. 30, 2020	8,065	32,315	(10,563)	140,808	170,625
Stockholders' Equity Attributable to Parent, Beginning Balance at Jun. 30, 2021	8,133	34,015	(31,320)	157,140	167,968
Stock-based compensation	3	1,159			1,162
Vesting of restricted stock units and restricted shares	7	(257)			(250)
Treasury stock purchases			(1,915)		(1,915)
Cash dividends declared				(1,047)	(1,047)
Net income				4,353	4,353
Stockholders' Equity Attributable to Parent, Ending Balance at Sep. 30, 2021	$ 8,143	$ 34,917	$ (33,235)	$ 160,446	$ 170,271

- Definition

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

+ References

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+ Details

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References + Details

Inventories (Comparison Of Inventories) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2021
Inventories [Abstract]
Raw materials	$ 26,460	$ 22,500
Work in process and finished parts	7,267	6,234
Finished goods	159,973	132,391
Total	$ 193,700	$ 161,125

Document And Entity Information - shares	3 Months Ended
Document And Entity Information - shares	Sep. 30, 2021	Oct. 28, 2021
Document And Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2021
Entity File Number	0-5151
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Registrant Name	FLEXSTEEL INDUSTRIES, INC.
Entity Incorporation, State or Country Code	MN
Entity Tax Identification Number	42-0442319
Entity Address, Address Line One	385 BELL STREET
Entity Address, City or Town	DUBUQUE
Entity Address, State or Province	IA
Entity Address, Postal Zip Code	52001-0877
City Area Code	563
Local Phone Number	556-7730
Title of 12(b) Security	Common Stock
Trading Symbol	FLXS
Security Exchange Name	NASDAQ
Entity Central Index Key	0000037472
Current Fiscal Year End Date	--06-30
Entity Interactive Data Current	Yes
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		6,765,770
Amendment Flag	false

Litigation

3 Months Ended

Sep. 30, 2021

Litigation [Abstract]

Litigation

10. 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 April 24, 2019, the Company signed an AOC with the EPA to conduct the upgradient investigation. The Company negotiated site access to the upgradient property over a period of months in 2019, followed by completion of sampling activities on that property on September 28-29, 2019. Following multiple exchanges from November 2019 through early 2020, the Company submitted a final and supplemental report to the EPA regarding the results of the upgradient investigation on June 17, 2020. Through agreement with the EPA the statute of limitations for potential claims by the EPA was extended through November 30, 2021. The Company reflected a $3.6 million liability in the Consolidated Balance Sheets 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 Balance Sheets as of September 30, 2021, 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.

Inventories (Tables)

3 Months Ended

Sep. 30, 2021

Inventories [Abstract]

Comparison Of Inventories



	September 30,		June 30,
(in thousands)	2021		2021
Raw materials	$	26,460	$	22,500
Work in process and finished parts		7,267		6,234
Finished goods		159,973		132,391
Total	$	193,700	$	161,125

Basis of Presentation and Description of Business

3 Months Ended

Sep. 30, 2021

Basis of Presentation and Description of Business [Abstract]

Basis Of Presentation And Description Of Business

1. BASIS OF PRESENTATION AND DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS – Flexsteel Industries, Inc. and Subsidiaries (the “Company” or “Flexsteel” or “Our”) is one of the largest manufacturers, importers and online marketers of furniture products in the United States. Product offerings include a wide variety of furniture such as sofas, loveseats, chairs, reclining and rocker-reclining chairs, swivel rockers, sofa beds, convertible bedding units, occasional tables, desks, dining tables and chairs and bedroom furniture. A featured component in most of the upholstered furniture is a unique steel drop-in seat spring from which the name “Flexsteel” is derived. The Company distributes its products throughout the United States through its e-commerce channel and dealer sales force.

COVID-19 - In March 2020, a novel strain of coronavirus (“COVID-19”) was declared a global pandemic by the World Health Organization. This pandemic has negatively affected the U.S. and global economies, disrupted global supply chains and financial markets, led to significant travel and transportation restrictions, including mandatory business closures and orders to shelter in place. The Company’s business operations and financial performance for fiscal year 2020 were impacted by COVID-19. During the year ended June 30, 2021, the Company saw improvement in our business conditions as retailers reopened and orders increased, however, we continued to see supply chain challenges faced by the furniture industry due to the limited availability of ocean containers and significant increases in ocean container rates, limited availability and inflationary pressures in key materials, and labor shortages both in Asia and the United States. These supply chain issues have continued during the three months ended September 30, 2021. The COVID-19 pandemic remains fluid and the extent of the impact to our business may be significant, however, we are unable to predict the extent or nature of these impacts at this time.

BASIS OF PRESENTATION – The Consolidated Financial Statements included herein have been prepared by 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 months ended September 30, 2021, are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2022. 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, 2021, appropriately represent, in all material respects, the current status of accounting policies and are incorporated by reference.

RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS – In December 2019, the FASB issued ASU 2019-12 “Income Taxes Simplifying the Accounting for Income Taxes (Topic 740)” as part of its initiative to reduce complexity in the accounting standards. The amendments in ASU 2019-12 eliminate certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also clarifies and simplifies other aspects of the accounting for income taxes. The amendments in this guidance were effective for fiscal years beginning after December 15, 2020, with early adoption permitted. Effective July 1, 2021, the Company adopted Topic 740 and there was no impact to the Company’s financial statements.

Credit Arrangements (Narrative) (Details) - USD ($)			3 Months Ended
Credit Arrangements (Narrative) (Details) - USD ($)	Sep. 08, 2021	Aug. 28, 2020	Sep. 30, 2021
Wells Fargo Bank N.A. [Member]
Short-term Debt [Line Items]
Debt term	5 years
Letters of credit outstanding			$ 1,200,000
Secured Credit Agreement [Member]
Short-term Debt [Line Items]
Credit agreement capacity		$ 25,000,000.0
Line of credit outstanding			$ 53,100,000
Debt term			2 years
Letters of credit outstanding	$ 1,200,000
Fixed coverage ratio	100.00%
Secured Credit Agreement [Member] \| Minimum [Member]
Short-term Debt [Line Items]
Interest rate under prime rate		3.00%
Secured Credit Agreement [Member] \| Libor Plus 1 [Member]
Short-term Debt [Line Items]
Basis spread on interest rate		1.50%
Interest rate at period end			1.58025%
Secured Credit Agreement [Member] \| Libor Plus 1 [Member] \| Minimum [Member]
Short-term Debt [Line Items]
Interest rate under prime rate	1.25%
Secured Credit Agreement [Member] \| Libor Plus 1 [Member] \| Maximum [Member]
Short-term Debt [Line Items]
Interest rate under prime rate	1.50%
Secured Credit Agreement [Member] \| Dubuque Bank and Trust Company [Member]
Short-term Debt [Line Items]
Line of credit outstanding			$ 0
Secured Credit Agreement [Member] \| Wells Fargo Bank N.A. [Member]
Short-term Debt [Line Items]
Credit agreement capacity	$ 85,000,000
Secured Credit Agreement [Member] \| Wells Fargo Bank N.A. [Member] \| Letter Of Credit [Member] \| Maximum [Member]
Short-term Debt [Line Items]
Minimum working capital required to be maintained under covenant	$ 5,000,000

Income Taxes	3 Months Ended
Income Taxes	Sep. 30, 2021
Income Taxes [Abstract]
Income Taxes	7. INCOME TAXES The provision for income taxes for the interim periods is based on an estimate of the Company’s annual effective tax rate adjusted to reflect the impact of discrete items. Management judgment is required in projecting ordinary income to estimate the Company’s annual effective tax rate. The Company’s effective tax rate for the quarters ended September 30, 2021, and September 30, 2020, were 23.2% and 51.3%, respectively.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Restructuring

3 Months Ended

Sep. 30, 2021

Restructuring [Abstract]

Restructuring

5. RESTRUCTURING

On May 15, 2019, the Company announced its plans to exit the Commercial Office and custom-designed Hospitality product lines. The changes were initial outcomes driven from customer and product line profitability and footprint utilization analyses in the fourth quarter of fiscal 2019.

On June 18, 2019, the Company announced it completed the analysis and planning process and set forth the comprehensive transformation program to be executed over a two-year period, which included the previously announced restructuring activities on May 15, 2019. The transformation program included activities such as business simplification, process improvement, exiting of non-core businesses, facility closures, and reductions in work force. The Company has substantially completed the portion of the restructuring activities related to the exit of the Commercial Office and custom-designed Hospitality product lines.

On April 28, 2020, the Company announced the exit of Vehicle Seating and the remainder of the Hospitality product lines, and subsequently closed its Dubuque, Iowa and Starkville, Mississippi manufacturing facilities. The remaining properties listed for sale as part of the footprint optimization are included in Note 3, Assets Held for Sale. The Company substantially completed the restructuring activities related to the exit of Vehicle Seating and the remainder of the Hospitality product lines during fiscal 2021.

As a result of these planned actions, the Company anticipated incurring pre-tax restructuring and related expenses of approximately $56 to $58 million over this two-year timeframe. Total cumulative restructuring and related costs incurred as of September 30, 2021, was $58.8 million.

The following is a summary of restructuring costs:



	Three Months Ended
(in thousands)	September 30, 2021		September 30, 2020
One-time employee termination benefits		—		179
Other associated costs		152		1,202
Total restructuring and related expenses	$	152	$	1,381
Reported as:
Operating expenses	$	152	$	1,381

Other associated costs include legal and professional fees, stock-based compensation expense for retention restricted stock units in connection with the Company’s restructuring plan, and ongoing facilities and transition costs.

The rollforward of the accrued restructuring costs is as follows:



	One-time
	Employee		Other
	Termination		Associated
(in thousands)	Benefits		Costs		Total
Accrual balance at June 30, 2021	$	1,502	$	20	$	1,522
Costs incurred		—		152		152
Expenses paid		(130)		(152)		(282)
Accrual balance at September 30, 2021	$	1,372	$	20	$	1,392

Credit Arrangements

3 Months Ended

Sep. 30, 2021

Credit Arrangements [Abstract]

Credit Arrangements

6. CREDIT ARRANGEMENTS

On August 28, 2020, the Company entered into a two-year secured $25.0 million revolving line of credit with Dubuque Bank and Trust Company, with interest of 1.50% plus LIBOR, subject to a floor of 3.00%. The revolving line of credit was secured by essentially all the Company’s assets, excluding real property and required the Company maintain compliance with certain financial and non-financial covenants. There was no balance on this line of credit on September 30, 2021, and the line of credit was cancelled.

On September 8, 2021, the Company, as borrower, entered into a credit agreement (the “Credit Agreement”) with Wells Fargo Bank, National Association (the “Lender”) and the other lenders party thereto. The Credit Agreement has a five-year term and provides for up to an $85 million revolving line of credit. Subject to certain conditions, the Credit Agreement also provides for the issuance of letters of credit in an aggregate amount up to $5,000,000 which, upon issuance, would be deemed advances under the revolving line of credit. The Company’s $1.2 million of letters of credit previously issued by the Lender are being treated as outstanding under the Credit Agreement. Proceeds of borrowings were used to refinance all indebtedness owed to Dubuque Bank & Trust and for working capital purposes. The Company’s obligations under the Credit Agreement are secured by substantially all of its assets, excluding real property. Subject to certain conditions, borrowings under the Credit Agreement bear interest at LIBOR plus 1.25% or 1.50% per annum, or an effective interest rate of 1.58025% on September 30, 2021. If LIBOR becomes unavailable, the replacement rate will be determined pursuant to the terms of the Credit Agreement. The Credit Agreement contains customary representations, warranties and covenants, including a financial covenant to maintain a fixed coverage ratio of not less than 1.00:1.00. In addition, the Loan Agreement places restrictions on the Company’s ability to incur additional indebtedness, to create liens or other encumbrances, to sell or otherwise dispose of assets, and to merge or consolidate with other entities.

As of September 30, 2021, there was $53.1 million outstanding under the Credit Agreement, exclusive of fees and letters of credit.

Letters of credit outstanding at Wells Fargo Bank N.A. (“Wells”) as of September 30, 2021, totaled $1.2 million.

Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Consolidated Statements Of Income [Abstract]
Net sales	$ 137,689	$ 105,239
Cost of goods sold	114,279	82,424
Gross margin	23,410	22,815
Selling, general and administrative expenses	18,785	14,175
Restructuring expense	152	1,381
(Gain) on disposal of assets due to restructuring	(1,400)	(652)
Operating income	5,873	7,911
Interest expense	203
Other expense	2	49
Income before income taxes	5,668	7,960
Income tax provision	1,315	4,081
Net income	$ 4,353	$ 3,879
Weighted average number of common shares outstanding:
Basic	6,834	7,702
Diluted	7,090	7,908
Earnings per share of common stock
Basic	$ 0.64	$ 0.50
Diluted	$ 0.61	$ 0.49

Restructuring (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2021
Restructuring Cost and Reserve [Line Items]
Expected restructuring costs	$ 1,392		$ 1,522
Restructuring Charges	$ 152	$ 1,381
Commercial Office And Custom-Designed Hospitality Product Lines [Member]
Restructuring Cost and Reserve [Line Items]
Period of transformation program execution	2 years
Restructuring Charges	$ 58,800

Leases (Tables)

3 Months Ended

Sep. 30, 2021

Leases [Abstract]

Components Of Leases



	Three Months Ended
(in thousands)	September 30, 2021		September 30, 2020
Operating lease expense	$	1,389	$	1,074
Variable lease expense		75		69
Total lease expense	$	1,464	$	1,143

Other Lease Information



	Three Months Ended
	September 30, 2021		September 30, 2020
(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,074	$	1,035

Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	—	$	2,741

Weighted-average remaining lease term (in years):
Operating leases		3.8		1.6

Weighted-average discount rate:
Operating leases		2.9%		3.3%

Future minimum lease payments under non-cancellable operating leases


	Three Months Ended
	September 30, 2021		September 30, 2020
(in thousands)
Within one year	$	6,591	$	4,601
After one year and within two years		5,517		4,327
After two years and within three years		4,563		3,159
After three years and within four years		2,620		2,189
After four years and within five years		2,469		200
After five years		11,273		—
Total future minimum lease payments	$	33,033	$	14,476
Less – Discount		3,957		809
Lease liability	$	29,076	$	13,667

Stock-Based Compensation (Schedule Of Options Outstanding And Exercisable) (Details) shares in Thousands	3 Months Ended
	Sep. 30, 2021 $ / shares shares
9.97 - 15.14 [Member]
Share-Based Compensation, Shares Authorized Under Stock Option Plans, Exercise Price Range [Line Items]
Range of Price Lower	$ 9.97
Range of Price Upper	$ 15.14
Options Outstanding \| shares	104
Weighted Average Remaining Life, Years	7 years 9 months 18 days
Weighted Average, Exercise Price	$ 12.72
19.72 - 18.30 [Member]
Share-Based Compensation, Shares Authorized Under Stock Option Plans, Exercise Price Range [Line Items]
Range of Price Lower	18.30
Range of Price Upper	$ 19.72
Options Outstanding \| shares	15
Weighted Average Remaining Life, Years	4 years 9 months 18 days
Weighted Average, Exercise Price	$ 19.11
21.96 - 27.57 [Member]
Share-Based Compensation, Shares Authorized Under Stock Option Plans, Exercise Price Range [Line Items]
Range of Price Lower	21.96
Range of Price Upper	$ 27.57
Options Outstanding \| shares	58
Weighted Average Remaining Life, Years	5 years 7 months 6 days
Weighted Average, Exercise Price	$ 24.21
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	32
Weighted Average Remaining Life, Years	4 years 8 months 12 days
Weighted Average, Exercise Price	$ 32.30
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	16
Weighted Average Remaining Life, Years	5 years
Weighted Average, Exercise Price	$ 45.42
9.97 - 47.45 [Member]
Share-Based Compensation, Shares Authorized Under Stock Option Plans, Exercise Price Range [Line Items]
Range of Price Lower	9.97
Range of Price Upper	$ 47.45
Options Outstanding \| shares	225
Weighted Average Remaining Life, Years	6 years 4 months 24 days
Weighted Average, Exercise Price	$ 21.22

Stock-Based Compensation (Summary Of Total Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Stock-Based Compensation [Abstract]
Total stock-based compensation expense	$ 1,162	$ 954

Leases (Future Minimum Lease Payments) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020
Leases [Abstract]
Within one year	$ 6,591	$ 4,601
After one year and within two years	5,517	4,327
After two years and within three years	4,563	3,159
After three years and within four years	2,620	2,189
After four years and within five years	2,469	200
After five years	11,273
Total future minimum lease payments	33,033	14,476
Less - Discount	3,957	809
Lease liability	$ 29,076	$ 13,667

Stock-Based Compensation

3 Months Ended

Sep. 30, 2021

Stock-Based Compensation [Abstract]

Stock-Based Compensation

8. STOCK-BASED COMPENSATION

The Company accounts for its stock-based compensation plans in accordance with ASC 718, Stock Compensation, which requires the Company to measure all share-based payments at grant date fair value and recognize the cost over the requisite service period. Restricted shares and restricted stock units (“RSUs”) generally vest over 1 to 3 years. Stock options are granted at an exercise price equal to the fair value of the Company’s common stock price at the grant date and are exercisable for up to 10 years upon vesting. Stock-based compensation is included in selling, general and administrative, and restructuring expenses on the Consolidated Statements of Income. The stock-based compensation expense included in restructuring expense were for retention RSUs in connection with the Company’s restructuring plan. Forfeitures are recognized as incurred.

The following table is a summary of total stock-based compensation expense for the three months ended September 30, 2021.

The Company has two stock-based compensation plans available for granting awards to employees and directors.

(1) Long-Term Incentive Compensation Plan (“LTIP”)

The LTIP provides for performance stock units (“PSUs”) to be awarded to officers and key employees based on performance goals set by the Compensation Committee of the Board of Directors (the “Committee”). For awards under the LTIP for the three-year period ending June 30, 2022, 2023, and 2024, participants may earn one-third of the award in each of the three years based on meeting performance goals for that year. The Committee selected Adjusted Earnings Before Interest and Tax with a defined percentage growth in fiscal years 2022, 2023, and 2024 as the performance metric. In conjunction with each grant of PSUs, the Committee grants RSUs under the 2013 Omnibus Stock Plan that vest at the end of three years.

The table below sets forth, as of September 30, 2021, the number of unvested PSUs granted at the target performance level for the 2020-2022, 2021-2023 and 2022-2024 performance periods under the LTIP and the number of unvested RSUs granted in conjunction with the PSUs:


	Time Based Vest (RSUs)			Performance Based Vest (PSUs)			Total
		Weighted Average			Weighted Average			Weighted Average
		Fair Value			Fair Value			Fair Value
(shares in thousands)	Shares	Per Share		Shares	Per Share		Shares	Per Share
Unvested as June 30, 2021	107	$	13.89	142	$	13.36	249	$	13.59
Granted	27		42.50	40		42.50	67		42.50
Forfeited	—		—	—		—	—		—
Unvested as of September 30, 2021	134	$	19.63	182	$	19.80	316	$	19.73

Total unrecognized stock-based compensation related to the unvested PSUs at the target performance level and the related unvested RSUs was $3.85 million as of September 30, 2021, which is expected to be recognized over a weighted average period of 1.7 years.

(2) 2013 Omnibus Stock Plan

The 2013 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.

Restricted shares and RSUs

A summary of the activity in the Company’s unvested restricted shares and unvested RSUs (not granted in conjunction with PSUs) during the three months ended September 30, 2021 is as follows:



		Weighted Average
	Shares	Fair Value
	(in thousands)	Per Share
Unvested as of June 20, 2021	56	$	26.81
Granted	3		42.50
Vested	(15)		27.46
Forfeited	(1)		19.77
Unvested as of September 30, 2021	43	$	27.82

Total unrecognized stock-based compensation related to unvested restricted shares and unvested RSUs (not granted in conjunction with the PSUs) was $0.7 million as of September 30, 2021, which is expected to be recognized over a weighted average period of 1.5 years.

Options

A summary of the activity of the Company’s stock option plans as of September 30, 2021, is presented below:



		Weighted
	Shares	Average
	(in thousands)	Exercise Price
Outstanding at June 30, 2021	232	$	21.91
Granted	—		—
Exercised	—		—
Cancelled	(7)		45.18
Outstanding at September 30, 2021	225	$	21.22

The following table summarizes information for options outstanding at September 30, 2021:



		Options	Weighted Average
Range of		Outstanding	Remaining	Exercise
Prices		(in thousands)	Life (Years)	Price
$	9.97 - 15.14	104	7.8	$	12.72
	18.30 - 19.72	15	4.8		19.11
	21.96 - 27.57	58	5.6		24.21
	31.06 - 32.80	32	4.7		32.30
	43.09 - 47.45	16	5.0		45.42
$	9.97 - 47.45	225	6.4	$	21.22

Total unrecognized stock-based compensation expense related to options was $0.12 million as of September 30, 2021, which is expected to be recognized over a weighted average period of 1.5 years.

Stock-based compensation granted outside a plan

During the quarter ended June 30, 2020, the Company awarded its Chief Financial Officer/Chief Operating Officer 79,000 options outside of any Company stock plans. Total unrecognized stock-based compensation expense related to options awarded outside a plan was $0.04 million as of September 30, 2021, which is expected to be recognized over a period of 1.5 years.

Stock-Based Compensation (Schedule Of Unvested Shares - Restricted Shares And RSUs) (Details) - Restricted Shares And RSUs [Member] shares in Thousands	3 Months Ended
	Sep. 30, 2021 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested at the beginning of period, Shares \| shares	56
Granted, Shares \| shares	3
Vested, Shares \| shares	(15)
Forfeited, Shares \| shares	(1)
Unvested at the end of period, Shares \| shares	43
Unvested at the beginning of period, Weighted average fair value per share \| $ / shares	$ 26.81
Granted, Weighted average fair value per share \| $ / shares	42.50
Vested, Weighted average fair value per share \| $ / shares	27.46
Forfeited, Weighted average fair value per share \| $ / shares	19.77
Unvested at the end of period, Weighted average fair value \| $ / shares	$ 27.82

Litigation (Narrative) (Details) - USD ($) $ in Millions	1 Months Ended
Litigation (Narrative) (Details) - USD ($) $ in Millions	Apr. 30, 2018	Jul. 31, 2017	Aug. 31, 2016
Litigation [Abstract]
Estimated amount of possible loss			$ 3.6
Environmental remediation	$ 3.6	$ 5.5

Stock-Based Compensation (Schedule Of Unvested Shares - Long-Term Incentive Compensation Plan RSUs) (Details) - Long-Term Incentive Compensation Plan [Member] shares in Thousands	3 Months Ended
	Sep. 30, 2021 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested at the beginning of period, Shares \| shares	249
Granted, Shares \| shares	67
Unvested at the end of period, Shares \| shares	316
Unvested at the beginning of period, Weighted average fair value per share \| $ / shares	$ 13.59
Granted, Weighted average fair value per share \| $ / shares	42.50
Unvested at the end of period, Weighted average fair value \| $ / shares	$ 19.73
Time Based Vest [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested at the beginning of period, Shares \| shares	107
Granted, Shares \| shares	27
Unvested at the end of period, Shares \| shares	134
Unvested at the beginning of period, Weighted average fair value per share \| $ / shares	$ 13.89
Granted, Weighted average fair value per share \| $ / shares	42.50
Unvested at the end of period, Weighted average fair value \| $ / shares	$ 19.63
Performance Based Vest [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested at the beginning of period, Shares \| shares	142
Granted, Shares \| shares	40
Unvested at the end of period, Shares \| shares	182
Unvested at the beginning of period, Weighted average fair value per share \| $ / shares	$ 13.36
Granted, Weighted average fair value per share \| $ / shares	42.50
Unvested at the end of period, Weighted average fair value \| $ / shares	$ 19.80