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, 2001
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 21, 2001 /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, 2001 and 2000 and the related statements of changes in net
assets available for benefits for each of the three years in the period ended
June 30, 2001. 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, 2001
and 2000 and the changes in net assets available for benefits for each of the
three years in the period ended June 30, 2001 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, 2001 is presented for the purpose of
additional analysis and is 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 LLP
September 14, 2001
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Flexsteel Industries, Inc.
Salaried Employees' Savings Plan 401(k)
Statements of Net Assets Available for Benefits
June 30, 2001 and 2000
2001 2000
------------- -------------
Assets
Cash $ 26,565 $ 26,090
Investments:
Flexsteel Industries, Inc. common stock 1,630,885 1,634,138
Mutual funds 17,549,504 18,020,757
Employer contributions receivable 14,276 14,250
Employee contributions receivable 100,872 100,119
------------ ------------
Net Assets Available for Benefits $ 19,322,102 $ 19,795,354
============ ============
Flexsteel Industries, Inc.
Salaried Employees' Savings Plan 401(k)
Statements of Changes in Net Assets Available For Benefits
Years Ended June 30, 2001, 2000, and 1999
2001 2000 1999
------------ ------------ ----------
Additions:
Employee contributions $ 1,501,871 $ 1,344,575 $ 1,220,398
Employer contributions 223,361 207,693 188,931
Investment (loss) income (524,182) 608,545 333,692
Net (depreciation) appreciation in
fair value of assets (1,209,391) (624,362) 1,322,122
----------- ----------- -----------
Total additions (8,341) 1,536,451 3,065,143
Distributions (464,911) (491,160) (574,532)
----------- ----------- -----------
Net (decrease) increase (473,252) 1,045,291 2,490,611
Net assets available for benefits
at beginning of year 19,795,354 18,750,063 16,259,452
----------- ----------- -----------
Net assets available for benefits
at end of year $19,322,102 $19,795,354 $18,750,063
=========== =========== ===========
See Notes to the Financial Statements.
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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 in 1985 by Flexsteel Industries, Inc. (the "Company").
The Plan is available to certain salaried, sales 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% (sales
personnel are subject to a 4% maximum) of their basic pre-tax pay contributed to
the Plan. Employee contributions are subject to a maximum of $10,500 in calendar
year 2001 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 growth of capital, earnings and dividends.
8) A LARGE COMPANY BLEND ACCOUNT, 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.
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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
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, 2001 June 30, 2000
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Flexsteel Industries, Inc. Common Stock Fund
(136,134 and 133,399 shares, respectively) $ 1,630,885 $ 1,634,138
Guaranteed Interest Account 4,324,412 4,150,100
Private Market Bond and Mortgage Account 1,384,135 1,003,210
Large Cap Stock Index Fund 1,742,834 2,073,823
U.S. Common Stock Fund 5,806,018
Large Company Blend Account 4,612,396
Small Company Blend Stock Fund 1,491,528 1,211,439
Small Company Growth Stock Fund 973,136
International Stock Account 1,074,698 1,413,129
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SUPPLEMENTAL SCHEDULE
FLEXSTEEL INDUSTRIES, INC. SALARIED EMPLOYEES' SAVINGS PLAN 401(k)
SCHEDULE H, PART IV, LINE 4I - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
JUNE 30, 2001
Flexsteel Industries Common Stock Fund $ 1,630,885
Guaranteed Interest Account 4,324,412
Money Market Account 543,263
Private Market Bond and Mortgage Account 1,384,135
Bond Emphasis Balanced Account 196,925
Large Cap Stock Index Fund 1,742,834
Large Company Growth Account 862,150
Large Company Blend Account 4,612,396
Mid Cap Stock Index Fund 589,012
Small Company Blend Stock Fund 1,491,528
Small Company Growth Stock Fund 728,151
International Stock Account 1,074,698
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$ 19,180,389
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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
14, 2001 appearing in the Annual Report on Form 11-K of the Flexsteel Salaried
Employees' Savings Plan 401(k) for the year ended June 30, 2001.
DELOITTE & TOUCHE LLP
Minneapolis, Minnesota
September 20, 2001