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, 2000
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)
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(Name of Plan)
Date: September 15, 2000 /s/ R. J. KLOSTERMAN
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R.J. Klosterman
VICE PRESIDENT OF FINANCE AND
PRINCIPAL FINANCIAL OFFICER
INDEPENDENT AUDITORS' REPORT
Flexsteel Industries, Inc.
Salaried Employees' Savings Plan 401(k)
Dubuque, Iowa
We have audited the accompanying statements of net assets available for benefits
of the Flexsteel Industries, Inc. Salaried Employees' Savings Plan 401(k) (the
Plan) as of June 30, 2000 and 1999 and the related statements of changes in net
assets available for benefits for each of the three years in the period ended
June 30, 2000. 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 auditing standards generally accepted
in the United States of America. 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 net assets available for benefits of the Plan as of June 30, 2000
and 1999 and the changes in net assets available for benefits for each of the
three years in the period ended June 30, 2000 in conformity with accounting
principles generally accepted in the United States of America.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedule of assets held
for investment purposes as of June 30, 2000 is presented for the purpose of
additional analysis and are not a required part of the basic financial
statements but is supplementary information required by the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974. The supplemental schedule is the
responsibility of the Plan's management. Such supplemental schedule has been
subjected to the auditing procedures applied in our audits of the basic
financial statements and, in our opinion, is fairly stated in all material
respects when considered in relation to the basic financial statements taken as
a whole.
DELOITTE & TOUCHE
September 15, 2000
Flexsteel Industries, Inc.
Salaried Employees' Savings Plan 401(k)
Statement of Net Assets Available for Benefits
June 30, 2000 and 1999
2000 1999
Assets
Cash $ 26,090 $ 36,425
Investments:
Flexsteel Industries, Inc. common stock 1,634,138 1,827,316
Mutual funds 18,020,757 16,801,676
Employer contributions receivable 14,250 9,928
Employee contributions receivable 100,119 74,718
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Net Assets Available for Benefits $ 19,795,354 $ 18,750,063
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Flexsteel Industries, Inc.
Salaried Employees' Savings Plan 401(k)
Statement of Changes in Net Assets Available For Benefits
June 30, 2000, 1999, and 1998
2000 1999 1998
Additions:
Employee contributions $ 1,344,575 $ 1,220,398 $ 1,036,949
Employer contributions 207,693 188,931 175,600
Investment income 608,545 333,692 399,779
Net appreciation in fair value of assets (624,363) 1,322,122 1,688,899
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1,543,551 3,065,143 3,301,227
Distributions (491,160) (574,532) (800,008)
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Net increase 1,045,291 2,490,611 2,501,219
Net assets available for benefits
at beginning if year 18,750,063 16,259,452 13,758,233
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Net assets available for benefits
at end of year $ 19,795,354 $ 18,750,063 $ 16,259,452
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See Notes to the Financial Statements.
3
FLEXSTEEL INDUSTRIES, INC.
SALARIED EMPLOYEES' SAVINGS PLAN 401(K)
NOTES TO THE 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%
(salespeople 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 2000 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 twelve
investment accounts available:
1) The FLEXSTEEL INDUSTRIES, INC. COMMON STOCK FUND, which
consists of the Company's common stock.
2) A GUARANTEED INTEREST ACCOUNT, which is an insurance company
account that provides a guaranteed interest rate for a
five-year period.
3) A MONEY MARKET ACCOUNT, which is an insurance company account
primarily invested in commercial paper with maturities of one
year or less.
4) A PRIVATE MARKET BOND AND MORTGAGE ACCOUNT, which is an
insurance company account that provides for competitive yield
debt securities.
5) A BOND EMPHASIS BALANCED ACCOUNT, which invests primarily in
other separate accounts made up of stocks, bonds,
convertibles, and cash. It usually maintains at least 50% of
assets in fixed-income securities.
6) A LARGE CAP 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.
7) A LARGE COMPANY GROWTH ACCOUNT, which primarily invests in
larger companies that management believes have an
above-average potential for earnings growth.
8) A U.S. 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.
9) A MID CAP STOCK INDEX FUND, which is a pooled investment
account invested in the common stock of those firms included
in the Standard & Poor's 400 Mid Cap Stock Index.
10) A SMALL COMPANY BLEND STOCK FUND, which invests in stocks of
smaller seasoned companies.
11) A SMALL COMPANY GROWTH STOCK FUND, which invests in stocks of
smaller developing companies.
12) An INTERNATIONAL STOCK ACCOUNT, which invests in stocks of
companies in Western Europe and Asia.
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. All administrative expenses are paid by 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.
4
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
At June 30, 2000 the Plan had 521 participants, of which there were 180
participants in the Flexsteel Industries, Inc. Common Stock Fund, 363
participants in the Guaranteed Interest Accounts, 377 participants in the Money
Market Account, 203 participants in the Private Market Bond and Mortgage
Account, 14 participants in the Bond Emphasis Balanced Account, 239 participants
in the Large Cap Stock Index Fund, 106 participants in the Large Company Growth
Fund, 370 participants in the U.S.Common Stock Fund, 32 participants in the Mid
Cap Stock Index Fund, 247 participants in the Small Company Blend Stock Fund, 89
participants in the Small Company Growth Stock Fund, and 261 participants in the
International 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.
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) INVESTMENTS
Investments that represent 5% or more of the Plan's net assets are as
follows:
June 30, 1999 June 30, 2000
Flexsteel Industries, Inc. Common Stock Fund
(137,258 and 133,399 shares respectevely) $ 1,827,316 $ 1,634,138
Guaranteed Interest 4,113,901 4,150,100
Bond & Mortgage 1,119,406 1,003,210
Large Cap Stock Index 1,721,133 2,073,823
US Stock Index 7,624,988 5,806,018
Small Co Blend 1,069,729 1,211,439
Small Co Growth 973,136
International Stock Index 1,034,484 1,413,129
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SUPPLEMENTAL SCHEDULES
FLEXSTEEL INDUSTRIES, INC. SALARIED EMPLOYEES' SAVINGS PLAN 401(k)
SCHEDULE H, PART IV, LINE 4I - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
YEAR ENDED JUNE 30, 2000
Flexsteel Industries $ 1,634,138
Guaranteed Interest 4,150,100
Money Market 271,532
Bond & Mortgage 1,003,210
Bond Emphasis 144,472
Large Cap Stock Index 2,073,823
Stock Index 735,874
US Stock Index 5,806,018
Mid Cap Stock Index 238,024
Small Co Blend 1,211,439
Small Co Growth 973,136
International Stock Index 1,413,129
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$ 19,654,895
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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 September
15, 2000 appearing in the Annual Report on Form 11-K of the Flexsteel Salaried
Employees' Savings Plan 401(k) for the year ended June 30, 2000.
DELOITTE & TOUCHE LLP
Minneapolis, Minnesota
September 27, 2000