0000950170-23-057569 | 10-Q | XBRL Viewer

Assets Held For Sale

3 Months Ended

Sep. 30, 2023

3. ASSETS HELD FOR SALE

During the fiscal year 2020, the Company committed to a plan to sell assets located at the Company’s Starkville, Mississippi location as part of a restructuring plan. As of September 30, 2023, the Company continues to actively market the assets in Starkville, Mississippi. A summary of the assets held for sale as of September 30, 2023, 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 assets held for sale	$	5,309	$	(4,693	)	$	616

Earnings Per Share (Narrative) (Details) - $ / shares	3 Months Ended
Earnings Per Share (Narrative) (Details) - $ / shares	Sep. 30, 2023	Sep. 30, 2022
Earnings Per Share
Dividends declared per common share	$ 0.15	$ 0.15

Credit Arrangements	3 Months Ended
Sep. 30, 2023
Credit Arrangements [Abstract]
Credit Arrangements	5. CREDIT ARRANGEMENTS On September 8, 2021, the Company, as the 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 million which, upon issuance, would be deemed advances under the revolving line of credit. Proceeds of borrowings were used to refinance all indebtedness owed to a prior lender and for working capital purposes. The Company’s obligations under the Credit Agreement are secured by substantially all its assets, excluding real property. 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 to 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, 2023, management believes the Company was in compliance with all covenants. On April 18, 2022, the Company, as the borrower, entered into a first amendment to the September 8, 2021, Credit Agreement (“First Amendment to the Credit Agreement”), with the Lender and the lenders thereto. The amendment to the Credit Agreement changed the definition of the term ‘Payment Conditions’ and further defined default or event of default and the calculation of the Fixed Charge Coverage Ratio. Subject to certain conditions, borrowings under the Credit Agreement initially bore interest at LIBOR plus 1.25% or 1.50% per annum. On May 24, 2023, the Company entered into a second amendment to the Credit Agreement ("Second Amendment to the Credit Agreement") with the lender to transition the applicable interest rate from LIBOR to Secured Overnight Financing Rate ("SOFR"). Effective as of the date of the Second Amendment to the Credit Agreement, borrowings under the amended Credit agreement bear interest at SOFR plus 1.36% to 1.61%, or an effective interest rate of 6.68%, on September 30, 2023. As of September 30, 2023, there was $33.0 million outstanding under the Credit Agreement, exclusive of fees and letters of credit. Letters of credit outstanding with the Lender as of September 30, 2023, totaled $1.1 million.

Credit Arrangements

3 Months Ended

Sep. 30, 2023

Credit Arrangements [Abstract]

Credit Arrangements

5. CREDIT ARRANGEMENTS

On September 8, 2021, the Company, as the 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 million which, upon issuance, would be deemed advances under the revolving line of credit. Proceeds of borrowings were used to refinance all indebtedness owed to a prior lender and for working capital purposes. The Company’s obligations under the Credit Agreement are secured by substantially all its assets, excluding real property. 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 to 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, 2023, management believes the Company was in compliance with all covenants.

On April 18, 2022, the Company, as the borrower, entered into a first amendment to the September 8, 2021, Credit Agreement (“First Amendment to the Credit Agreement”), with the Lender and the lenders thereto. The amendment to the Credit Agreement changed the definition of the term ‘Payment Conditions’ and further defined default or event of default and the calculation of the Fixed Charge Coverage Ratio.

Subject to certain conditions, borrowings under the Credit Agreement initially bore interest at LIBOR plus 1.25% or 1.50% per annum. On May 24, 2023, the Company entered into a second amendment to the Credit Agreement ("Second Amendment to the Credit Agreement") with the lender to transition the applicable interest rate from LIBOR to Secured Overnight Financing Rate ("SOFR"). Effective as of the date of the Second Amendment to the Credit Agreement, borrowings under the amended Credit agreement bear interest at SOFR plus 1.36% to 1.61%, or an effective interest rate of 6.68%, on September 30, 2023.

As of September 30, 2023, there was $33.0 million outstanding under the Credit Agreement, exclusive of fees and letters of credit.

Letters of credit outstanding with the Lender as of September 30, 2023, totaled $1.1 million.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Inventories

3 Months Ended

Sep. 30, 2023

Inventories [Abstract]

Inventories

2. INVENTORIES

A comparison of inventories is as follows:


	September 30,		June 30,
(in thousands)	2023		2023
Raw materials	$	16,771	$	18,616
Work in process and finished parts		3,832		3,741
Finished goods		100,204		99,719
Total	$	120,807	$	122,076

Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions		1 Months Ended	3 Months Ended
	Oct. 24, 2022	Apr. 30, 2018	Dec. 31, 2022	Jul. 31, 2017	Aug. 31, 2016
Loss Contingencies [Line Items]
Environmental remediation			$ 2.8
Environmental Protection Agency (EPA) [Member]
Loss Contingencies [Line Items]
Estimated amount of possible loss				$ 5.5	$ 3.6
Settlement	$ 9.8
Estimated cost of remedial work		$ 3.6

Consolidated Statements Of Changes In Shareholders' Equity (Parenthetical) - $ / shares	Jun. 30, 2023	Jun. 30, 2022
Common stock, par value	$ 1
Total Par Value Of Common Shares [Member]
Common stock, par value	$ 1	$ 1

Leases

3 Months Ended

Sep. 30, 2023

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 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.

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.

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 ASC 842 guidance was July 1, 2022, the date the lessor made 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 ends on June 30, 2034, with options for two five-year extensions. Annual base rent under the lease is $3.2 million plus taxes, insurance and common area maintenance costs. As of September 30, 2023, the Company has not begun operations in the Mexicali facility. On May 3, 2023, the Company entered into a sublease with a third party for 105,000 square feet of the Mexicali facility with a term of 12 months. Annual rent net of broker's fees under the sublease is $1 million, plus a proportionate share of taxes, insurance, and common area maintenance. On October 2, 2023, the Company entered into a sublease with a third party for 339,413 square feet of the facility with an initial term of 12 months with four 6 month extensions. Annual rent net of broker's fees under the sublease is $2.2 million, plus a proportionate share of taxes, insurance, and common area maintenance.

At September 30, 2023, the Company determined that no impairment indicators exist with regard to the Mexicali lease given the current and expected sublease tenants and plans for future operations in the facility. At September 30, 2023, the right-of-use asset associated specifically with the Mexicali lease is $31.7 million and associated lease liability is $33.2 million. Sublease income net of broker's fees received from the sub-tenant is offset against operating lease expense in the Company’s Consolidated Statements of Income.

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


	Three Months Ended
	September 30,
(in thousands)	2023		2022
Operating lease expense	$	2,424	$	2,666
Variable lease expense		446		418
Total lease expense	$	2,870	$	3,084

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


	Three Months Ended
	September 30, 2023			September 30, 2022
(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows paid for operating leases	$	1,749		$	953

Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	—		$	34,811

Weighted-average remaining lease term (in years):
Operating leases		8.8			5.3

Weighted-average discount rate:
Operating leases		3.1	%		3.2	%

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


	September 30, 2023
Remaining payments in FY2024	$	7,092
FY2025		9,225
FY2026		9,008
FY2027		9,073
FY2028		9,009
Thereafter		37,040
Total future minimum lease payments	$	80,447
Less imputed interest		10,042
Lease liability	$	70,405

Income Taxes	3 Months Ended
Sep. 30, 2023
Income Taxes [Abstract]
Income Taxes	6. 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, 2023, and September 30, 2022, was 44.2% and (175.5%), respectively. For the three months ended September 30, 2023, the effective tax rate differs from the statutory tax rate of 21% due to nondeductible stock compensation, state taxes, and impact of foreign operations. For the three months ended September 30, 2022, the effective tax rate differs from the statutory tax rate of 21% due to nondeductible stock compensation, state taxes, and the impact associated with uncertain tax positions.

Income Taxes

3 Months Ended

Sep. 30, 2023

Income Taxes [Abstract]

Income Taxes

6. 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, 2023, and September 30, 2022, was 44.2% and (175.5%), respectively. For the three months ended September 30, 2023, the effective tax rate differs from the statutory tax rate of 21% due to nondeductible stock compensation, state taxes, and impact of foreign operations. For the three months ended September 30, 2022, the effective tax rate differs from the statutory tax rate of 21% due to nondeductible stock compensation, state taxes, and the impact associated with uncertain tax positions.

- 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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
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-Topic 235
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+ Details

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023
Consolidated Balance Sheets [Abstract]
Trade receivables, allowance for doubtful accounts	$ 2,530	$ 2,600
Common stock, par value	$ 1	$ 1
Common stock, authorized	15,000,000	15,000,000
Common stock, issued	8,344,000	8,292,000
Common stock, outstanding	5,203,000	5,174,000
Treasury stock, shares	3,141,000	3,118,000

Income Taxes (Narrative) (Details)	3 Months Ended
Income Taxes (Narrative) (Details)	Sep. 30, 2023	Sep. 30, 2022
Income Taxes [Abstract]
Effective Income Tax Rate, Continuing Operations	44.20%	(175.50%)
Effective federal statutory income tax rate	21.00%	21.00%

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, 2023 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested at the beginning of period, Shares \| shares	290
Granted, Shares \| shares	163
Vested, Shares \| shares	(75)
Forfeited, Shares \| shares	(17)
Unvested at the end of period, Shares \| shares	361
Unvested at the beginning of period, Weighted average fair value per share \| $ / shares	$ 20.65
Granted, Weighted average fair value per share \| $ / shares	18.91
Vested, Weighted average fair value per share \| $ / shares	12.15
Forfeited, Weighted average fair value per share \| $ / shares	14.16
Unvested at the end of period, Weighted average fair value \| $ / shares	$ 21.94
Time Based Vest [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested at the beginning of period, Shares \| shares	79
Granted, Shares \| shares	65
Unvested at the end of period, Shares \| shares	144
Unvested at the beginning of period, Weighted average fair value per share \| $ / shares	$ 24.56
Granted, Weighted average fair value per share \| $ / shares	18.91
Unvested at the end of period, Weighted average fair value \| $ / shares	$ 22.01
Performance Based Vest [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested at the beginning of period, Shares \| shares	211
Granted, Shares \| shares	98
Vested, Shares \| shares	(75)
Forfeited, Shares \| shares	(17)
Unvested at the end of period, Shares \| shares	217
Unvested at the beginning of period, Weighted average fair value per share \| $ / shares	$ 19.19
Granted, Weighted average fair value per share \| $ / shares	18.91
Vested, Weighted average fair value per share \| $ / shares	12.15
Forfeited, Weighted average fair value per share \| $ / shares	14.16
Unvested at the end of period, Weighted average fair value \| $ / shares	$ 21.89

Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
OPERATING ACTIVITIES:
Net income	$ 752	$ 289
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation	940	1,128
Deferred income taxes	94
Stock-based compensation expense	911	825
Change in provision for losses on accounts receivable	(70)	(10)
Loss on disposal of assets	34
Changes in operating assets and liabilities:
Trade receivables	6,687	7,230
Inventories	1,269	19,823
Other current assets	(2,791)	(8,169)
Other assets	(1,392)
Accounts payable - trade	(3,719)	(10,777)
Accrued liabilities	(4,510)	2,949
Other long-term liabilities	14	(294)
Net cash (used in) provided by operating activities	(1,781)	12,994
INVESTING ACTIVITIES:
Capital expenditures	(1,355)	(1,878)
Net cash (used in) investing activities	(1,355)	(1,878)
FINANCING ACTIVITIES:
Dividends paid	(879)	(867)
Treasury stock purchases	(455)	(403)
Proceeds from line of credit	101,365	88,058
Payments on line of credit	(96,640)	(95,768)
Shares withheld for tax payments on vested restricted shares	(647)	(349)
Net cash provided by (used in) financing activities	2,744	(9,329)
(Decrease) increase in cash and cash equivalents	(392)	1,787
Cash and cash equivalents at beginning of the period	3,365	2,184
Cash and cash equivalents at end of the period	2,973	3,971
SUPPLEMENTAL INFORMATION
Cash paid for amounts included in lease liabilities	1,749	953
Right-of-use assets exchanged for lease liabilities		34,811
Interest paid	546	306
Cash paid for income taxes, net	244	1,786
Capital expenditures in accounts payable	$ 287	$ 57

Commitments and Contingencies

3 Months Ended

Sep. 30, 2023

Commitments And Contingencies [Abstract]

Commitments And Contingencies

9. COMMITMENTS AND CONTINGENCIES

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 directed 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, was the estimated cost of remedial work. The Company believed that financial assurance was not required because it met 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.

Despite the Company’s position that it did not cause or contribute to the contamination, the Company reached a settlement with the EPA and the State of Indiana, which was filed as a consent decree in the U.S. District Court for the Northern District of Indiana on October 24, 2022. The consent decree required Flexsteel to pay $9.8 million in resolution of the matter. Flexsteel also reached agreements with its insurance carriers for partial reimbursement of the settlement. During the quarter ended December 31, 2022, the Company made full payment in accordance with the settlement agreement and as a result of insurance proceeds received, the Company recorded income of $2.8 million for the quarter ended December 31, 2022.

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.

Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Sep. 30, 2023	Jun. 30, 2020	Dec. 31, 2018	Jun. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options remain outstanding	202,000			202,000
Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period options are exercisable	10 years
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	$ 600
Total unrecognized stock-based compensation, expected period	1 year
Chief Financial Officer/Chief Operating Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized stock-based compensation related to unvested shares		$ 0
Long-Term Incentive Compensation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
PSU award description	For PSUs awarded for the three year performance period ending June 30, 2024 participants may earn the award based on a cumulative three year performance goal. For PSUs awarded for the three year performance periods ending June 30, 2025 and 2026, 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 based on a defined percentage growth as the performance metric for the performance periods ending June 30, 2024, 2025, and 2026.
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	$ 4,700
Total unrecognized stock-based compensation, expected period	2 years
Long-Term Incentive Compensation Plan [Member] \| 2024, 2025, and 2026 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period for performance awards, years	3 years
Long-Term Incentive Compensation Plan [Member] \| 2024, 2025, and 2026 [Member] \| Scenario, Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of award	33.00%
Stock Option Plan 2013 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future grants	0
Omnibus Stock Plan [Member] \| Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period	3 years
Stock-based Compensation Outside A Plan [Member] \| Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options issued under stock option plans			55,000,000
Weighted average exercise price of options	$ 21.96
Remaining life	5 years 2 months 12 days
Options remain outstanding	55,000,000
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		79,000
Weighted average exercise price of options	$ 9.97
Remaining life	6 years 6 months
Options remain outstanding	79,000
Minimum [Member] \| Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period	1 year
Maximum [Member] \| Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period	3 years

Stock-Based Compensation (Schedule Of Unvested Shares - PSUs And RSUs) (Details) - Restricted Shares And RSUs [Member] shares in Thousands	3 Months Ended
	Sep. 30, 2023 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested at the beginning of period, Shares \| shares	74
Vested, Shares \| shares	(2)
Unvested at the end of period, Shares \| shares	72
Unvested at the beginning of period, Weighted average fair value per share \| $ / shares	$ 21.67
Vested, Weighted average fair value per share \| $ / shares	33.7
Unvested at the end of period, Weighted average fair value \| $ / shares	$ 21.34

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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+ Details

Document And Entity Information - shares	3 Months Ended
Document And Entity Information - shares	Sep. 30, 2023	Nov. 01, 2023
Document And Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2023
Entity File Number	0-5151
Document Fiscal Year Focus	2023
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	52001-7004
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		5,201,510
Amendment Flag	false

Inventories (Comparison Of Inventories) (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023
Inventories [Abstract]
Raw materials	$ 16,771	$ 18,616
Work in process and finished parts	3,832	3,741
Finished goods	100,204	99,719
Total	$ 120,807	$ 122,076

Earnings Per Share (Schedule Of Earnings Per Share, Basic And Diluted) (Details) - shares shares in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Earnings Per Share
Basic shares	5,182	5,311
Stock options	81	58
Non-vested restricted stock units and restricted shares	112	98
Diluted shares	5,375	5,467
Anti-dilutive shares	154	173

Summary Of Significant Accounting Policies (Policies)	3 Months Ended
Summary Of Significant Accounting Policies (Policies)	Sep. 30, 2023
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 marketers of furniture products in the United States. Product offerings include a wide variety of furniture such as sofas, loveseats, chairs, reclining rocking chairs, swivel rockers, sofa beds, convertible bedding units, occasional tables, desks, dining tables and chairs, kitchen storage, bedroom furniture, and outdoor 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 direct sales force.
Basis Of Presentation	BASIS OF PRESENTATION – The unaudited Consolidated Financial Statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The information contained 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, 2023, are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2024. 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 in Note 1 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended June 30, 2023, appropriately represent, in all material respects, the current status of accounting policies.

Assets Held For Sale (Tables)

3 Months Ended

Sep. 30, 2023

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

Stock-Based Compensation (Summary Of Total Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Stock-Based Compensation [Abstract]
Total stock-based compensation expense	$ 911	$ 825

Leases (Narrative) (Details) $ in Thousands			3 Months Ended
Leases (Narrative) (Details) $ in Thousands	Oct. 02, 2023 USD ($) ft²	May 03, 2023 USD ($) ft²	Sep. 30, 2023 USD ($)	Jun. 30, 2023 USD ($)	Jul. 01, 2022	Aug. 20, 2021 ft²
Short-term Debt [Line Items]
Lessee, Operating Lease, Term of Contract					12 years
Lessee, Operating Lease, Option to Extend			options for two five-year extensions
Sublease area \| ft²		105,000
Sublease term		12 months
Sublease annual rent		$ 1,000
Operating lease right-of-use assets			$ 66,445	$ 68,294
Lease liability			70,405
Subsequent Event [Member]
Short-term Debt [Line Items]
Sublease area \| ft²	339,413
Sublease initial term	12 months
Sublease extensions	four 6 month extensions
Sublease annual rent	$ 2,200
Mexicali, Mexico [Member]
Short-term Debt [Line Items]
Area of Real Estate Property \| ft²						507,830
Annual base rent			3,200
Operating lease right-of-use assets			31,700
Lease liability			$ 33,200

Leases (Components Of Leases) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Leases [Abstract]
Operating lease expense	$ 2,424	$ 2,666
Variable lease expense	446	418
Total lease expense	$ 2,870	$ 3,084

Earnings Per Share

3 Months Ended

Sep. 30, 2023

Earnings Per Share

Earnings Per Share

8. 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 plans, and non-vested restricted stock units. The Company calculates the dilutive effect of outstanding options and restricted stock units 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)	2023		2022
Basic shares		5,182		5,311
Potential common shares:
Stock options		81		58
Non-vested restricted stock units and restricted shares		112		98
Diluted shares		5,375		5,467

Anti-dilutive shares		154		173

Cash dividends declared per common share were $0.15 for the three months ended September 30, 2023, and were $0.15 for the three months ended September 30, 2022.

Basis Of Presentation And Description Of Business	3 Months Ended
Basis Of Presentation And Description Of Business	Sep. 30, 2023
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 marketers of furniture products in the United States. Product offerings include a wide variety of furniture such as sofas, loveseats, chairs, reclining rocking chairs, swivel rockers, sofa beds, convertible bedding units, occasional tables, desks, dining tables and chairs, kitchen storage, bedroom furniture, and outdoor 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 direct sales force. BASIS OF PRESENTATION – The unaudited Consolidated Financial Statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The information contained 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, 2023, are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2024. 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 in Note 1 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended June 30, 2023, appropriately represent, in all material respects, the current status of accounting policies.

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023
CURRENT ASSETS:
Cash and cash equivalents	$ 2,973	$ 3,365
Trade receivables - less allowances: September 30, 2023, $2,530, June 30, 2023, $2,600	31,551	38,168
Inventories	120,807	122,076
Other	9,208	6,417
Assets held for sale	616	616
Total current assets	165,155	170,642
NONCURRENT ASSETS:
Property, plant and equipment, net	39,010	38,652
Operating lease right-of-use assets	66,445	68,294
Deferred income taxes	7,060	7,154
Other assets	7,200	5,808
TOTAL ASSETS	284,870	290,550
CURRENT LIABILITIES:
Accounts payable - trade	21,002	24,745
Current portion of operating lease liabilities	7,327	7,179
Accrued liabilities:
Payroll and related items	5,690	9,955
Insurance	1,890	1,920
Sales and advertising related items	5,056	5,358
Other	5,869	5,948
Total current liabilities	46,834	55,105
LONG-TERM LIABILITIES:
Operating lease liabilities, less current maturities	63,078	64,974
Line of credit	32,998	28,273
Other liabilities	593	577
Total liabilities	143,503	148,929
SHAREHOLDERS' EQUITY:
Common stock - $1 par value; authorized 15,000 shares; 8,344 shares issued and 5,203 outstanding as of September 30, 2023; 8,292 shares issued and 5,174outstanding as of June 30, 2023	8,344	8,292
Additional paid-in capital	36,817	36,605
Treasury stock, at cost; 3,141 shares, and 3,118 shares as of September 30, 2023, and June 30, 2023, respectively	(70,527)	(70,072)
Retained earnings	166,733	166,796
Total shareholders' equity	141,367	141,621
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 284,870	$ 290,550

Stock-Based Compensation (Tables)

3 Months Ended

Sep. 30, 2023

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

Summary Of Total Stock-Based Compensation Expense


	Three Months Ended
	September 30,
(in thousands)	2023		2022
Total stock-based compensation expense	$	911	$	825

Schedule Of Stock Option Plans


			Weighted
	Shares		Average
	(in thousands)		Exercise Price
Outstanding at June 30, 2023		202	$	20.98
Granted		—	$	—
Exercised		—	$	—
Canceled		—	$	—
Outstanding at September 30, 2023		202	$	20.98

Schedule Of Options Outstanding And Exercisable


		Options		Weighted Average
Range of		Outstanding		Remaining		Exercise
Prices		(in thousands)		Life (Years)		Price
$	9.97 - 15.14		97		6.4	$	12.64
	18.30 - 19.72		6		7.7		18.30
	21.96 - 27.57		57		3.6		24.18
	31.06 - 32.80		29		2.5		32.27
	43.09 - 47.45		13		3.0		45.28
$	9.97 - 47.45		202		4.9	$	20.98

Restricted Shares And RSUs [Member]

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

Schedule Of Unvested Shares - PSUs And RSUs


				Weighted Average
	Shares			Fair Value
	(in thousands)			Per Share
Unvested as of June 30, 2023		74		$	21.67
Vested		(2	)		33.70
Unvested as of September 30, 2023		72		$	21.34

Long-Term Incentive Compensation Plan [Member]

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

Schedule Of Unvested Shares - PSUs And RSUs


	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 of June 30, 2023		79	$	24.56		211		$	19.19		290		$	20.65
Granted		65		18.91		98			18.91		163			18.91
Vested		—		—		(75	)		12.15		(75	)		12.15
Forfeited		—		—		(17	)		14.16		(17	)		14.16
Unvested as of September 30, 2023		144	$	22.01		217		$	21.89		361		$	21.94

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Consolidated Statements Of Changes In Shareholders' Equity - USD ($) $ in Thousands	Total	Total Par Value Of Common Shares [Member]	Additional Paid-In Capital [Member]	Treasury Stock [Member]	Retained Earnings [Member]
Balance, beginning at Jun. 30, 2022	$ 131,560	$ 8,190	$ 34,467	$ (66,372)	$ 155,275
Stock-based compensation	825	8	817
Vesting of restricted stock units and restricted shares	(350)	28	(378)
Treasury stock purchases	(403)			(403)
Cash dividends declared	(833)				(833)
Net income	289				289
Balance, ending at Sep. 30, 2022	131,088	8,226	34,906	(66,775)	154,731
Balance, beginning at Jun. 30, 2023	141,621	8,292	36,605	(70,072)	166,796
Stock-based compensation	911	8	903
Vesting of restricted stock units and restricted shares	(647)	44	(691)
Treasury stock purchases	(455)			(455)
Cash dividends declared	(815)				(815)
Net income	752				752
Balance, ending at Sep. 30, 2023	$ 141,367	$ 8,344	$ 36,817	$ (70,527)	$ 166,733

- 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

Amount of equity (deficit) attributable to parent. Excludes temporary equity and equity attributable to noncontrolling interest.

+ References

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+ Details

Leases (Tables)

3 Months Ended

Sep. 30, 2023

Leases [Abstract]

Components Of Leases


	Three Months Ended
	September 30,
(in thousands)	2023		2022
Operating lease expense	$	2,424	$	2,666
Variable lease expense		446		418
Total lease expense	$	2,870	$	3,084

Other Information Related To Leases And Future Minimum Lease Payments


	Three Months Ended
	September 30, 2023			September 30, 2022
(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows paid for operating leases	$	1,749		$	953

Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	—		$	34,811

Weighted-average remaining lease term (in years):
Operating leases		8.8			5.3

Weighted-average discount rate:
Operating leases		3.1	%		3.2	%

Future Minimum Lease Payments


	September 30, 2023
Remaining payments in FY2024	$	7,092
FY2025		9,225
FY2026		9,008
FY2027		9,073
FY2028		9,009
Thereafter		37,040
Total future minimum lease payments	$	80,447
Less imputed interest		10,042
Lease liability	$	70,405

Earnings Per Share (Tables)

3 Months Ended

Sep. 30, 2023

Earnings Per Share

Schedule Of Earnings Per Share, Basic And Diluted


	Three Months Ended
	September 30,
(in thousands)	2023		2022
Basic shares		5,182		5,311
Potential common shares:
Stock options		81		58
Non-vested restricted stock units and restricted shares		112		98
Diluted shares		5,375		5,467

Anti-dilutive shares		154		173

Credit Arrangements (Narrative) (Details) $ in Millions		3 Months Ended
Credit Arrangements (Narrative) (Details) $ in Millions	Sep. 08, 2021 USD ($)	Sep. 30, 2023 USD ($)
Short-term Debt [Line Items]
Letters of credit outstanding		$ 1.1
Credit Agreement [Member] \| Wells Fargo Bank N.A. [Member]
Short-term Debt [Line Items]
Interest rate	1.50%
Basis spread on interest rate	1.25%
Effective interest rate		6.68%
Debt term	5 years
Fixed coverage ratio		1
Credit Agreement [Member] \| Wells Fargo Bank N.A. [Member] \| Maximum [Member]
Short-term Debt [Line Items]
Credit agreement capacity	$ 85.0
Credit Agreement [Member] \| Wells Fargo Bank N.A. [Member] \| SOFR [Member] \| Maximum [Member]
Short-term Debt [Line Items]
Basis spread on interest rate		1.61%
Credit Agreement [Member] \| Wells Fargo Bank N.A. [Member] \| SOFR [Member] \| Minimum [Member]
Short-term Debt [Line Items]
Basis spread on interest rate		1.36%
Credit Agreement [Member] \| Wells Fargo Bank N.A. [Member] \| Letter Of Credit [Member]
Short-term Debt [Line Items]
Credit agreement capacity	$ 5.0
Secured Credit Agreement [Member] \| Wells Fargo Bank N.A. [Member]
Short-term Debt [Line Items]
Line of credit outstanding		$ 33.0

Inventories (Tables)

3 Months Ended

Sep. 30, 2023

Inventories [Abstract]

Comparison Of Inventories


	September 30,		June 30,
(in thousands)	2023		2023
Raw materials	$	16,771	$	18,616
Work in process and finished parts		3,832		3,741
Finished goods		100,204		99,719
Total	$	120,807	$	122,076

Leases (Other Information Related To Leases And Future Minimum Lease Payments) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Leases [Abstract]
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid operating leases	$ 1,749	$ 953
Right-of-use assets obtained in exchange for lease liabilities: Operating leases		$ 34,811
Weighted-average remaining lease term (in years): Operating leases	8 years 9 months 18 days	5 years 3 months 18 days
Weighted-average discount rate: Operating leases	3.10%	3.20%

Leases (Future Minimum Lease Payments) (Details) $ in Thousands	Sep. 30, 2023 USD ($)
Leases [Abstract]
Remaining payments in FY2024	$ 7,092
FY2025	9,009
FY2026	9,225
FY2027	9,008
FY2028	9,073
Thereafter	37,040
Total future minimum lease payments	80,447
Less imputed interest	10,042
Lease liability	$ 70,405

Stock-Based Compensation (Schedule Of Options Outstanding And Exercisable) (Details) shares in Thousands	3 Months Ended
	Sep. 30, 2023 $ / 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	97
Weighted Average Remaining Life (Years)	6 years 4 months 24 days
Weighted Average, Exercise Price	$ 12.64
18.30 - 19.72 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	6
Weighted Average Remaining Life (Years)	7 years 8 months 12 days
Weighted Average, Exercise Price	$ 18.30
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	57
Weighted Average Remaining Life (Years)	3 years 7 months 6 days
Weighted Average, Exercise Price	$ 24.18
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	29
Weighted Average Remaining Life (Years)	2 years 6 months
Weighted Average, Exercise Price	$ 32.27
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	13
Weighted Average Remaining Life (Years)	3 years
Weighted Average, Exercise Price	$ 45.28
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	202
Weighted Average Remaining Life (Years)	4 years 10 months 24 days
Weighted Average, Exercise Price	$ 20.98

Assets Held For Sale (Summary Of Assets Held For Sale) (Details) - Disposal Group, Held-for-sale, Not Discontinued Operations [Member] $ in Thousands	Sep. 30, 2023 USD ($)
Long Lived Assets Held-for-sale [Line Items]
Cost	$ 5,309
Accumulated Depreciation	(4,693)
Net Book Value	616
Buildings & Building 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 & Land Improvements [Member] \| Starkville, Mississippi [Member]
Long Lived Assets Held-for-sale [Line Items]
Cost	694
Accumulated Depreciation	(439)
Net Book Value	$ 255

Consolidated Statements Of Income And Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Consolidated Statements Of Income And Comprehensive Income [Abstract]
Net sales	$ 94,603	$ 95,684
Cost of goods sold	76,193	80,335
Gross profit	18,410	15,349
Selling, general and administrative expenses	16,492	14,574
Other expense		347
Operating income	1,918	428
Interest expense	570	321
Other expense		2
Income before income taxes	1,348	105
Income tax provision (benefit)	596	(184)
Net income and comprehensive income	$ 752	$ 289
Weighted average number of common shares outstanding:
Basic	5,182	5,311
Diluted	5,375	5,467
Earnings per share of common stock:
Basic	$ 0.15	$ 0.05
Diluted	$ 0.14	$ 0.05

Stock-Based Compensation

3 Months Ended

Sep. 30, 2023

Stock-Based Compensation [Abstract]

Stock-Based Compensation

7. 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 expenses on the Consolidated Statements of Income and Comprehensive Income. Forfeitures are recognized as incurred.

The following table is a summary of total stock-based compensation expenses for the three months ended September 30, 2023.


	Three Months Ended
	September 30,
(in thousands)	2023		2022
Total stock-based compensation expense	$	911	$	825

On December 14, 2022, the Company’s shareholders approved the Flexsteel Industries, Inc. 2022 Equity Incentive Plan (“2022 Plan”).

The 2022 Plan replaced the Long-Term Incentive Compensation Plan (“LTIP”) and the 2013 Omnibus Stock Plan (collectively, the “Prior Plans”). No further awards will be made under either of the Prior Plans, but these Prior Plans will continue to govern awards previously granted under them.

(1)

2022 Equity Incentive Plan

The 2022 Plan is a long-term incentive plan pursuant to which awards may be granted to certain employees, independent contractors and directors of the Company, in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, performance units, performance shares or other stock-based awards. For periods beginning on or after July 1, 2023, restricted stock units ("RSUs") and performance stock units ("PSUs") granted to officers and key employees as part of long-term compensation programs are issued from the 2022 Plan. RSUs and PSUs awarded from the 2022 Plan are included in the Long-Term Incentive Compensation or Restricted Share and RSUs tables below.

(2)

Long-Term Incentive Compensation Plan

The LTIP provided for 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”). In conjunction with each grant of PSUs, the Committee granted RSUs under the 2013 Omnibus Stock Plan that vested at the end of three years.

(3)

2013 Omnibus Stock Plan

The 2013 Omnibus Stock Plan was for key employees, officers and directors and provided for the granting of incentive and nonqualified stock options, restricted stock, restricted stock units, stock appreciation rights, and performance units. No further stock units will be issued under this plan.

Long-Term Incentive Compensation

The table below sets forth, as of September 30, 2023, the number of unvested PSUs granted at the target performance level for the 2022-2024, 2023-2025, and 2024-2026 performance periods under the 2022 Plan and LTIP (as applicable) and the number of unvested RSUs granted in conjunction with the PSUs. For PSUs awarded for the three year performance period ending June 30, 2024 participants may earn the award based on a cumulative three year performance goal. For PSUs awarded for the three year performance periods ending June 30, 2025 and 2026, 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 based on a defined percentage growth as the performance metric for the performance periods ending June 30, 2024, 2025, and 2026.


	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 of June 30, 2023		79	$	24.56		211		$	19.19		290		$	20.65
Granted		65		18.91		98			18.91		163			18.91
Vested		—		—		(75	)		12.15		(75	)		12.15
Forfeited		—		—		(17	)		14.16		(17	)		14.16
Unvested as of September 30, 2023		144	$	22.01		217		$	21.89		361		$	21.94

Total unrecognized stock-based compensation related to the unvested PSUs at the target performance level and the related unvested RSUs was $4.7 million as of September 30, 2023, which is expected to be recognized over a weighted-average period of 2.0 years.

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, 2023, is as follows:


				Weighted Average
	Shares			Fair Value
	(in thousands)			Per Share
Unvested as of June 30, 2023		74		$	21.67
Vested		(2	)		33.70
Unvested as of September 30, 2023		72		$	21.34

Total unrecognized stock-based compensation related to unvested restricted shares and unvested RSUs (not granted in conjunction with the PSUs) was $0.6 million as of September 30, 2023, which is expected to be recognized over a weighted-average period of 1.0 year.

Options

A summary of the activity of the Company’s stock option plans as of September 30, 2023, is presented below:


			Weighted
	Shares		Average
	(in thousands)		Exercise Price
Outstanding at June 30, 2023		202	$	20.98
Granted		—	$	—
Exercised		—	$	—
Canceled		—	$	—
Outstanding at September 30, 2023		202	$	20.98

The following table summarizes information for options outstanding at September 30, 2023:


		Options		Weighted Average
Range of		Outstanding		Remaining		Exercise
Prices		(in thousands)		Life (Years)		Price
$	9.97 - 15.14		97		6.4	$	12.64
	18.30 - 19.72		6		7.7		18.30
	21.96 - 27.57		57		3.6		24.18
	31.06 - 32.80		29		2.5		32.27
	43.09 - 47.45		13		3.0		45.28
$	9.97 - 47.45		202		4.9	$	20.98

There is no unrecognized stock-based compensation expense related to these options as of September 30, 2023.

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. All 79,000 options remain outstanding as of September 30, 2023, with an exercise price of $9.97 and a remaining life of 6.5 years. There is no remaining unrecognized stock-based compensation expense related to these options.

During the quarter ended December 31, 2018, the Company awarded its Chief Executive Officer 55,000 options outside of any Company stock plans. All 55,000 options remain outstanding as of September 30, 2023, with an exercise price of $21.96 and a remaining life of 5.2 years. There is no remaining unrecognized stock-based compensation expense related to these options.

Stock-Based Compensation (Schedule Of Stock Option Plans) (Details) shares in Thousands	3 Months Ended
	Sep. 30, 2023 $ / shares shares
Stock-Based Compensation [Abstract]
Shares, Outstanding at beginning balance \| shares	202
Shares, Granted \| shares
Shares, Exercised \| shares
Shares, Outstanding at ending balance \| shares	202
Weighted Average Exercise Price, Outstanding at beginning balance \| $ / shares	$ 20.98
Weighted Average Exercise Price, Granted \| $ / shares
Weighted Average Exercise Price, Exercised \| $ / shares
Weighted Average Exercise Price, Outstanding at ending balance \| $ / shares	$ 20.98