SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended JUNE 30, 1998
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from to
Commission file number 0-5151
A) Full title of the plan:
SALARIED EMPLOYEES' SAVINGS PLAN 401(k)
B) Name of issuer of the securities held pursuant to the plan and the address of
its principal executive office:
FLEXSTEEL INDUSTRIES, INC., P.O. BOX 877, DUBUQUE, IA 52004-0877
THE PLAN. Pursuant to the requirements of the Securities Exchange Act
of 1934, the trustees (or other persons who administer the employee benefit
plan) have duly caused this annual report to be signed on its behalf by the
undersigned hereunto duly authorized.
Salaried Employees' Savings Plan 401(k)
--------------------------------------------
(Name of Plan)
Date: September 16, 1998 /S/ R. J. KLOSTERMAN
--------------------------------------------
R.J. Klosterman
VICE PRESIDENT OF FINANCE AND
PRINCIPAL FINANCIAL OFFICER
INDEPENDENT AUDITORS' REPORT
Flexsteel Industries, Inc. Salaried Employees' Savings Plan 401(k):
We have audited the combining statements of financial position of the
Flexsteel Industries, Inc. Salaried Employees' Savings Plan 401(k) (the "Plan")
as of June 30, 1998 and 1997 and the related combining statements of income and
changes in plan equity for each of the three years in the period ended June 30,
1998. These financial statements are the responsibility of the Plan's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all
material respects, the financial position of the Plan as of June 30, 1998 and
1997, and the results of its operations for each of the three years in the
period ended June 30, 1998 in conformity with generally accepted accounting
principles.
DELOITTE & TOUCHE LLP
Minneapolis, Minnesota
August 6, 1998
2
FLEXSTEEL INDUSTRIES, INC.
SALARIED EMPLOYEES' SAVINGS PLAN 401(k)
COMBINING STATEMENTS OF FINANCIAL POSITION
JUNE 30, 1998
Flexsteel Private
Industries, Market
Inc. Common Guaranteed Bond and Stock Money International
Common Stock Interest Mortgage Index Market Stock
Stock Fund Fund Account Account Fund Account Account
---------- --------- --------- --------- ------- ------- -------------
ASSETS
Cash......................................... 13,355
Employee Contributions Receivable............ 3,197 21,897 18,523 4,998 4,309 1,148 5,069
Company Contributions Receivable............. 592 2,711 2,829 701 519 185 757
Investment in Flexsteel Industries, Inc.
Common Stock Fund - Par Value $1 Per
Share; at market 123,474 shares at $14.00
each......................................... 1,728,636
Investment in Common Stock Fund.............. 6,636,372
Investment in Private Market Bond &
Mortgage Account............................. 1,000,662
Investment in Guaranteed Interest Account.... 4,007,667
Investment in Stock Index Fund............... 583,110
Investment in Money Market Account........... 109,498
Investment in International Stock Account.... 916,273
Investment in Small Company Stock Fund.......
--------- --------- --------- --------- ------- ------- ---------
Total Assets................................. 1,745,780 6,660,980 4,029,019 1,006,361 587,938 110,831 922,099
========= ========= ========= ========= ======= ======= =========
PLAN EQUITY
Total plan equity............................ 1,745,780 6,660,980 4,029,019 1,006,361 587,938 110,831 922,099
========= ========= ========= ========= ======= ======= =========
[WIDE TABLE CONTINUED FROM ABOVE]
Small
Company
Stock Fund Total
---------- ---------
ASSETS
Cash......................................... 13,355
Employee Contributions Receivable............ 10,292 69,433
Company Contributions Receivable............. 1,337 9,631
Investment in Flexsteel Industries, Inc.
Common Stock Fund - Par Value $1 Per
Share; at market 123,474 shares at $14.00
each......................................... 1,728,636
Investment in Common Stock Fund.............. 6,636,372
Investment in Private Market Bond &
Mortgage Account............................. 1,000,662
Investment in Guaranteed Interest Account.... 4,007,667
Investment in Stock Index Fund............... 583,110
Investment in Money Market Account........... 109,498
Investment in International Stock Account.... 916,273
Investment in Small Company Stock Fund....... 1,184,815 1,184,815
--------- ----------
Total Assets................................. 1,196,444 16,259,452
========= ==========
PLAN EQUITY
Total plan equity............................ 1,196,444 16,259,452
========= ==========
See accompanying Notes to Financial Statements
3
FLEXSTEEL INDUSTRIES, INC.
SALARIED EMPLOYEES' SAVINGS PLAN 401(k)
COMBINING STATEMENTS OF FINANCIAL POSITION
JUNE 30, 1997
Flexsteel Private
Industries, Market
Inc. Common Guaranteed Bond and Stock Money International
Common Stock Interest Mortgage Index Market Stock
Stock Fund Fund Account Account Fund Account Account
---------- ---------- ---------- --------- -------- -------- -------------
ASSETS
Cash......................................... $ 17,307
Employee Contributions Receivable............ 3,490 $ 18,812 $ 18,382 $ 4,258 $ 329 $ 810 $ 4,643
Company Contributions Receivable............. 1,066 2,548 3,025 653 25 123 737
Investment in Flexsteel Industries, Inc.
Common Stock Fund- Par Value $1 Per
Share; at market 131,500 shares at $11.75
each......................................... 1,545,125
Investment in Common Stock Fund.............. 5,194,921
Investment in Private Market Bond &
Mortgage Account............................. 900,523
Investment in Guaranteed Interest Account.... 4,184,821
Investment in Stock Index Fund............... 118,249
Investment in Money Market Account........... 109,698
Investment in International Stock Account.... 677,249
Investment in Small Company Stock Fund.......
---------- ---------- ---------- --------- -------- -------- --------
Total Assets................................. $1,566,988 $5,216,281 $4,206,228 $ 905,434 $118,603 $110,631 $682,629
========== ========== ========== ========= ======== ======== ========
PLAN EQUITY
Total plan equity............................ $1,566,988 $5,216,281 $4,206,228 $ 905,434 $118,603 $110,631 $682,629
========== ========== ========== ========= ======== ======== ========
[WIDE TABLE CONTINUED FROM ABOVE)
Small
Company
Stock Fund Total
--------- -----------
ASSETS
Cash......................................... $ 17,307
Employee Contributions Receivable............ $ 8,450 59,174
Company Contributions Receivable............. 1,250 9,427
Investment in Flexsteel Industries, Inc.
Common Stock Fund- Par Value $1 Per
Share; at market 131,500 shares at $11.75
each......................................... 1,545,125
Investment in Common Stock Fund.............. 5,194,921
Investment in Private Market Bond &
Mortgage Account............................. 900,523
Investment in Guaranteed Interest Account.... 4,184,821
Investment in Stock Index Fund............... 118,249
Investment in Money Market Account........... 109,698
Investment in International Stock Account.... 677,249
Investment in Small Company Stock Fund....... 941,739 941,739
--------- -----------
Total Assets................................. $ 951,439 $13,758,233
========= ===========
PLAN EQUITY
Total plan equity............................ $ 951,439 $13,758,233
========= ===========
See accompanying Notes to Financial Statements
4
FLEXSTEEL INDUSTRIES, INC.
SALARIED EMPLOYEES' SAVINGS PLAN 401(k)
COMBINING STATEMENTS OF INCOME AND CHANGES IN PLAN EQUITY
JUNE 30, 1998, 1997 and 1996
Flexsteel Private
Industries, Market
Inc. Common Guaranteed Bond and Stock Money
Common Stock Interest Mortgage Index Market
Stock Fund Fund Account Account Fund Account
----------- ----------- ----------- ----------- ----------- -----------
1998:
Net Investment Income
Cash Dividend on Flexsteel Common Stock ..... $ 62,239
Interest .................................... 716 $ 235,284 $ 93,900 $ 7,640
----------- ----------- ----------- -----------
Total .................................... 62,955 235,284 93,900 7,640
Employee Contributions ...................... 68,483 $ 325,628 253,354 71,879 $ 34,391 13,457
Company Contributions ....................... $ 16,586 48,941 42,222 12,117 5,869 2,353
Net Appreciation in Fair Value of Investments 303,009 1,096,664 77,597
Withdrawals ................................. (215,928) (122,532) (197,877) (31,952) (4,011) (16,185)
Transfers (To) From Other Investment Programs (56,313) 95,998 (510,192) (45,017) 355,489 (7,065)
----------- ----------- ----------- ----------- ----------- -----------
Increase (Decrease) in Plan Equity .......... 178,792 1,444,699 (177,209) 100,927 469,335 200
Plan Equity - Beginning of Year ............. 1,566,988 5,216,281 4,206,228 905,434 118,603 110,631
----------- ----------- ----------- ----------- ----------- -----------
Plan Equity - End of Year ................... $ 1,745,780 $ 6,660,980 $ 4,029,019 $ 1,006,361 $ 587,938 $ 110,831
=========== =========== =========== =========== =========== ===========
1997:
Net Investment Income
Cash Dividend on Flexsteel Common Stock ..... $ 60,267
Interest .................................... 294 $ 253,338 $ 78,880 $ 4,798
----------- ----------- ----------- -----------
Total ..................................... 60,561 253,338 78,880 4,798
Employee Contributions ...................... 75,753 $ 290,690 275,357 74,478 $ 4,460 12,564
Company Contributions ....................... 19,223 45,065 47,245 12,287 1,065 1,969
Net Appreciation in Fair Value of Investments (2,107) 1,165,085 33,352
Withdrawals ................................. (48,100) (131,062) (362,588) (28,604) (17,435) (2,925)
Transfers (To) From Other Investment Programs (1,159) 50,529 (354,596) (65,967) 370 23,241
----------- ----------- ----------- ----------- ----------- -----------
Increase (Decrease) in Plan Equity .......... 104,171 1,420,307 (141,244) 71,074 21,812 39,647
Plan Equity - Beginning of Year ............. 1,462,817 3,795,974 4,347,472 834,360 96,791 70,984
----------- ----------- ----------- ----------- ----------- -----------
Plan Equity - End of Year ................... $ 1,566,988 $ 5,216,281 $ 4,206,228 $ 905,434 $ 118,603 $ 110,631
=========== =========== =========== =========== =========== ===========
1996:
Net Investment Income
Cash Dividend on Flexsteel Common Stock ..... $ 55,375
Interest .................................... 334 $ 273,600 $ 42,443 $ 3,317
----------- ----------- ----------- -----------
Total ..................................... 55,709 273,600 42,443 3,317
Employee Contributions ...................... 86,646 $ 256,401 321,675 89,823 $ 7,306 11,386
Company Contributions ....................... 18,303 40,007 54,506 15,211 1,697 1,947
Net Appreciation in Fair Value of Investments 176,968 819,100 19,021
Withdrawals ................................. (103,805) (71,648) (487,454) (41,370) (3,426) (4,090)
Transfers (To) From Other Investment Programs 83,543 2,146 (263,304) (57,574) 1,845 (758)
----------- ----------- ----------- ----------- ----------- -----------
Increase (Decrease) in Plan Equity .......... 317,364 1,044,006 (100,977) 48,533 26,443 11,802
Plan Equity - Beginning of Year ............. 1,145,453 2,749,968 4,448,449 785,827 70,348 59,182
----------- ----------- ----------- ----------- ----------- -----------
Plan Equity - End of Year ................... $ 1,462,817 $ 3,795,974 $ 4,347,472 $ 834,360 $ 96,791 $ 70,984
=========== =========== =========== =========== =========== ===========
[WIDE TABLE CONTINUED FROM ABOVE]
International Small
Stock Company
Account Stock Fund Total
----------- ----------- -----------
1998:
Net Investment Income
Cash Dividend on Flexsteel Common Stock ..... $ 62,239
Interest .................................... 337,540
-----------
Total .................................... 399,779
Employee Contributions ...................... $ 106,202 $ 163,555 1,036,949
Company Contributions ....................... 19,797 27,715 175,600
Net Appreciation in Fair Value of Investments 102,221 109,408 1,688,899
Withdrawals ................................. (80,700) (130,823) (800,008)
Transfers (To) From Other Investment Programs 91,950 75,150
----------- ----------- -----------
Increase (Decrease) in Plan Equity .......... 239,470 245,005 2,501,219
Plan Equity - Beginning of Year ............. 682,629 951,439 13,758,233
----------- ----------- -----------
Plan Equity - End of Year ................... 922,099 1,196,444 16,259,452
=========== =========== ===========
1997:
Net Investment Income
Cash Dividend on Flexsteel Common Stock ..... $ 60,267
Interest .................................... 337,310
-----------
Total ..................................... 397,577
Employee Contributions ...................... $ 92,263 $ 136,747 962,312
Company Contributions ....................... 17,193 24,053 168,100
Net Appreciation in Fair Value of Investments 122,790 125,363 1,444,483
Withdrawals ................................. (10,577) (157,760) (759,051)
Transfers (To) From Other Investment Programs 147,688 199,894
----------- ----------- -----------
Increase (Decrease) in Plan Equity .......... 369,357 328,297 2,213,421
Plan Equity - Beginning of Year ............. 313,272 623,142 11,544,812
----------- ----------- -----------
Plan Equity - End of Year ................... $ 682,629 $ 951,439 $13,758,233
=========== =========== ===========
1996:
Net Investment Income
Cash Dividend on Flexsteel Common Stock ..... $ 55,375
Interest .................................... 319,694
-----------
Total ..................................... 375,069
Employee Contributions ...................... $ 65,272 $ 96,323 934,832
Company Contributions ....................... 12,687 17,299 161,657
Net Appreciation in Fair Value of Investments 38,056 106,732 1,159,877
Withdrawals ................................. (2,236) (8,995) (723,024)
Transfers (To) From Other Investment Programs 88,960 145,142
----------- ----------- -----------
Increase (Decrease) in Plan Equity .......... 202,739 356,501 1,908,411
Plan Equity - Beginning of Year ............. 110,533 266,641 9,636,401
----------- ----------- -----------
Plan Equity - End of Year ................... $ 313,272 $ 623,142 $11,544,812
=========== =========== ===========
See accompanying Notes to Financial Statements
5
FLEXSTEEL INDUSTRIES, INC.
SALARIED EMPLOYEES' SAVINGS PLAN 401(k)
NOTES TO FINANCIAL STATEMENTS
1) PLAN DESCRIPTION
The Flexsteel Industries, Inc. Salaried Employees' Savings Plan 401(k) (the
"Plan") was established effective July 1, 1985 by Flexsteel Industries, Inc.
(the "Company"). The Plan is available to certain salaried, salesmen and office
employees that have one year of eligible service and have reached the age of
twenty-one. Participation is voluntary.
The Plan allows eligible employees to elect to have from 1% to 14%
(salesmen are subject to a 4% maximum) of their basic pre-tax pay contributed to
the Plan. Employee contributions are subject to a maximum of $10,000 in calendar
year 1998 by law. The Company contributes an amount equal to 25% of the first 4%
of pay the employee contributes. Participant and Company basic contributions are
100% vested. The Company, at its option, may also contribute additional amounts
to be allocated amongst all participants based on the participants' pay; such
additional company contributions vest over 7 years (20% after 3 years, 40% after
4 years, 60% after 5 years, 80% after 6 years, and 100% after 7 years).
Plan participants direct their contributions to any of the eight
investment accounts available:
1) The FLEXSTEEL INDUSTRIES, INC. COMMON STOCK FUND, which consists
of the Company's common stock.
2) A COMMON STOCK FUND, which consists of common stock and other
equity securities, and also may include short-term money market
instruments, cash or cash equivalents.
3) A GUARANTEED INTEREST ACCOUNT, which is an insurance company
account that provides a guaranteed interest rate for a five-year
period.
4) A PRIVATE MARKET BOND AND MORTGAGE ACCOUNT, which is an insurance
company account that provides for competitive yield debt
securities.
5) A STOCK INDEX FUND, which is a pooled investment account invested
in the common stock of those firms included in the Standard &
Poor's 500 Stock Index.
6) A MONEY MARKET ACCOUNT, which is an insurance company account
primarily invested in commercial paper with maturities of one
year or less.
7) An INTERNATIONAL STOCK ACCOUNT, which invests in stocks of
companies in Western Europe and Asia.
8) A SMALL COMPANY STOCK FUND, which invests in stocks of relatively
smaller companies.
Assets of the Plan are held by a "Custodian," the Principal Mutual Life
Insurance Company, except for the Flexsteel Industries, Inc. Common Stock Fund
that is held by the American Trust & Savings Bank of Dubuque, Iowa (the
"Trustee"). The Plan is administered by a committee appointed by the Board of
Directors of the Company. Distributions are paid upon retirement, termination of
employment, death, disability, or in hardship cases. Non-vested contributions
revert to the Company upon termination of employment. Upon termination of the
Plan, participant accounts become fully vested and non-forfeitable.
At June 30, 1998 the Plan had 524 participants, of which there were 202
participants in the Flexsteel Industries, Inc. Common Stock Fund, 390
participants in the Common Stock Fund, 409 participants in the Guaranteed
Interest Accounts, 210 participants in the Private Market Bond and Mortgage
Account, 85 participants in the Stock Index Fund, 79 participants in the Money
Market Account, 225 participants in the International Stock Fund, and 258
participants in the Small Company Stock Fund.
2) SIGNIFICANT ACCOUNTING POLICIES
The Plan uses the accrual basis of accounting. Investments in common stock
are recorded at the market value based on market quotations. Other investments
are stated at market value as determined by the Trustee and Custodian based on
the market value of the funds and the participation in each fund. The cost of
investments sold is determined by the average cost method.
6
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
3) INCOME TAXES
The Plan has received a determination from the Internal Revenue Service
that the Plan is exempt from Federal income taxes. Participants are not taxed
currently on their contributions or on Company contributions to the Plan.
Distributions to participants generally are subject to Federal and State income
tax at the time of distribution; certain distributions may receive more
favorable tax treatment.
4) NET APPRECIATION (DEPRECIATION) IN FAIR VALUE OF INVESTMENTS
The unrealized appreciation (depreciation) in the investment accounts is as
follows
Market Net Appreciation
Cost Value (Depreciation)
----------- ----------- ----------------
Flexsteel Industries, Inc. Common Stock Fund
Balance, June 30, 1995 ............... $ 1,312,334 $ 1,124,625 $ (187,709)
Net change during year ............... 140,239 317,207 176,968
----------- ----------- -----------
Balance, June 30, 1996 ............... 1,452,573 1,441,832 (10,741)
Net change during year ............... 105,400 103,293 (2,107)
----------- ----------- -----------
Balance, June 30, 1997 ............... 1,557,973 1,545,125 (12,848)
Net change during year ............... (119,498) 183,511 303,009
----------- ----------- -----------
Balance, June 30, 1998 ............... $ 1,438,475 $ 1,728,636 $ 290,161
=========== =========== ===========
Common Stock Fund
Balance, June 30, 1995 .............. $ 1,621,117 $ 2,729,058 $ 1,107,941
Net change during year ............... 228,040 1,047,140 819,100
----------- ----------- -----------
Balance, June 30, 1996 ............... 1,849,157 3,776,198 1,927,041
Net change during year ............... 253,638 1,418,723 1,165,085
----------- ----------- -----------
Balance, June 30, 1997 ............... 2,102,795 5,194,921 3,092,126
Net change during year ............... 344,787 1,441,451 1,096,664
----------- ----------- -----------
Balance, June 30, 1998 ............... $ 2,447,582 $ 6,636,372 $ 4,188,790
=========== =========== ===========
Stock Index Fund
Balance, June 30, 1995 ............... $ 51,312 $ 69,401 $ 18,089
Net change during year ............... 8,030 27,051 19,021
----------- ----------- -----------
Balance, June 30, 1996 ............... 59,342 96,452 37,110
Net change during year ............... (11,555) 21,797 33,352
----------- ----------- -----------
Balance, June 30, 1997 ............... 47,787 118,249 70,462
Net change during year ............... 387,264 464,861 77,597
----------- ----------- -----------
Balance, June 30, 1998 .............. $ 435,051 $ 583,110 $ 148,059
=========== =========== ===========
International Stock Fund
Balance, June 30, 1995 ............... $ 102,463 $ 106,627 $ 4,164
Net change during year ............... 164,584 202,640 38,056
----------- ----------- -----------
Balance, June 30, 1996 ............... 267,047 309,267 42,220
Net change during year ............... 245,192 367,982 122,790
----------- ----------- -----------
Balance, June 30, 1997 ............... 512,239 677,249 165,010
Net change during year ............... 136,803 239,024 102,221
----------- ----------- -----------
Balance, June 30, 1998 ............... $ 649,042 $ 916,273 $ 267,231
=========== =========== ===========
Small Company Stock Fund
Balance, June 30, 1995 ............... $ 225,419 $ 261,580 $ 36,161
Net change during year ............... 247,263 353,995 106,732
----------- ----------- -----------
Balance, June 30, 1996 ............... 472,682 615,575 142,893
Net change during year ............... 200,801 326,164 125,363
----------- ----------- -----------
Balance, June 30, 1997 ............... 673,483 941,739 268,256
Net change during year ............... 133,668 243,076 109,408
----------- ----------- -----------
Balance, June 30, 1998 ............... $ 807,151 $ 1,184,815 $ 377,664
=========== =========== ===========
The cost of investments in the Guaranteed Interest Account, Private Market
Bond and Mortgage Account, and Money Market Account approximate market.
7
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
5) RELATED PARTY TRANSACTIONS
All administrative costs of the Plan are paid by the Company. Brokers'
commissions and fees, if any, incurred in connection with the segregated funds
are paid by the Plan.
The Plan had the following transactions in the Flexsteel Common Stock Fund
or in the Custodian's funds for the year ended June 30, 1998, 1997 and 1996
(shares in parentheses):
COST OF
1998: PURCHASES SALES (1) SALES (1)
----------------- ----------------- ---------------
FUND
Flexsteel Industries, Inc. Common Stock Fund $ 47,231(3,769) $ 164,740(11,795) $ 164,740
Common Stock Fund .......................... $ 371,321 $ 26,534 $ 26,534
Guaranteed Interest Account ................ $ 295,631 $ 708,069 $ 708,069
Private Market Bond and Mortgage Account ... $ 83,209 $ 76,969 $ 76,969
Stock Index Fund ........................... $ 35,786 $(351,478) $(351,478)
Money Market Account ....................... $ 15,410 $ 23,251 $ 23,251
International Stock Account ................ $ 125,553 $ (11,250) $ (11,250)
Small Company Stock Fund ................... $ 189,341 $ 55,672 $ 55,672
COST OF
1997: PURCHASES SALES (1) SALES (1)
----------------- ----------------- ---------------
FUND
Flexsteel Industries, Inc. Common Stock Fund $ 116,599(9,791) $ 11,969(1,000) $ 11,969
Common Stock Fund .......................... $ 334,171 $ 83,244 $ 83,244
Guaranteed Interest Account ................ $ 326,041 $ 711,660 $ 711,660
Private Market Bond and Mortgage Account ... $ 87,350 $ 94,571 $ 94,571
Stock Index Fund ........................... $ 5,510 $ 17,065 $ 17,065
Money Market Account ....................... $ 14,419 $ (20,316) $ (20,316)
International Stock Account ................ $ 108,080 $(137,111) $(137,111)
Small Company Stock Fund ................... $ 158,667 $ (42,134) $ (42,134)
COST OF
1996: PURCHASES SALES (1) SALES (1)
----------------- ----------------- ---------------
FUND
Flexsteel Industries, Inc. Common Stock Fund $ 229,258(20,686) $ 89,019(7,696) $ 89,019
Common Stock Fund .......................... $ 297,542 $ 70,935 $ 70,935
Guaranteed Interest Account ................ $ 392,830 $ 749,717 $ 749,717
Private Market Bond and Mortgage Account ... $ 108,147 $ 98,946 $ 98,946
Stock Index Fund ........................... $ 9,611 $ 1,581 $ 1,581
Money Market Account ....................... $ 13,284 $ 4,848 $ 4,848
International Stock Account ................ $ 77,860 $ (86,724) $ (86,724)
Small Company Stock Fund ................... $ 111,116 $(136,147) $(136,147)
(1) Amount is net of transfers
8
EXHIBIT 1
CONSENT OF INDEPENDENT AUDITORS
Flexsteel Industries, Inc.:
We consent to the incorporation by reference in Registration Statement No.
33-1836 on Form S-8 as amended by Post-Effective Amendment No. 1 for the
Flexsteel Salaried Employees' Savings Plan 401(k) of our report dated August 6,
1998 appearing in the Annual Report on Form 11-K of the Flexsteel Salaried
Employees' Savings Plan 401(k) for the year ended June 30, 1998.
DELOITTE & TOUCHE LLP
Minneapolis, Minnesota
September 25, 1998
