Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and SEC Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In our opinion, the interim condensed consolidated financial statements reflect all adjustments necessary for a fair presentation of the results of operations and financial position for such periods. All such adjustments reflected in the interim condensed consolidated financial statements are considered to be of a normal recurring nature. The results of operations for any interim period are not necessarily indicative of results for the full year. Accordingly, these financial statements should be read in conjunction with the financial statements and notes thereto contained in our 2013 Annual Report on Form 10-K. Unless otherwise noted, the term “year” and references to a particular year pertain to our fiscal year, which begins on July 1 and ends on June 30; for example, 2014 refers to fiscal 2014, which is the period from July 1, 2013 to June 30, 2014.

Subsequent Events

On January 30, 2014, we sold effectively all of the net operating assets of our candle manufacturing and marketing operations for approximately $28 million in cash, subject to customary post-closing adjustments. Net proceeds from the sale, as subject to the customary post-closing adjustments, are expected to total approximately $27 million, exclusive of the tax benefit anticipated to be realized from the loss incurred. The transaction is expected to result in a pretax loss of approximately $43 to $45 million, which will be recorded in the quarter ended March 31, 2014. See Note 10 for net sales and operating income information related to the Glassware and Candles segment.

The assets and liabilities of our sold operations were as follows:



	December 31, 2013		June 30, 2013
Cash	$	1	$	1
Receivables	26,594		14,061
Inventory	30,974		41,342
Other current assets	422		573
Property, plant and equipment	20,996		21,621
Other noncurrent assets	1,157		980
Total Assets	$	80,144	$	78,578

Accounts payable	$	4,029	$	5,431
Accrued liabilities	2,900		2,685
Total Liabilities	$	6,929	$	8,116

Property, Plant and Equipment

Property, plant and equipment are stated at cost less accumulated depreciation. Purchases of property, plant and equipment included in accounts payable and excluded from the property additions and the change in accounts payable in the Condensed Consolidated Statements of Cash Flows were as follows:



	December 31,
	2013		2012
Construction in progress in accounts payable	$	70	$	3,393

Earnings Per Share

Earnings per share (“EPS”) is computed based on the weighted average number of shares of common stock and common stock equivalents (restricted stock and stock-settled stock appreciation rights) outstanding during each period. Unvested shares of restricted stock granted to employees are considered participating securities since employees receive nonforfeitable dividends prior to vesting and, therefore, are included in the earnings allocation in computing EPS under the two-class method. Basic EPS excludes dilution and is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing income available to common shareholders by the diluted weighted average number of common shares outstanding during the period, which includes the dilutive potential common shares associated with nonparticipating restricted stock and stock-settled stock appreciation rights.

Basic and diluted net income per common share were calculated as follows:



	Three Months Ended December 31,						Six Months Ended December 31,
	2013			2012			2013			2012
Net income	$	39,234		$	35,277		$	64,035		$	61,939
Net income available to participating securities	(53		)	(246		)	(87		)	(299		)
Net income available to common shareholders	$	39,181		$	35,031		$	63,948		$	61,640

Weighted average common shares outstanding – basic	27,244			27,243			27,256			27,236
Incremental share effect from:
Nonparticipating restricted stock	3			4			4			4
Stock-settled stock appreciation rights	52			26			46			28
Weighted average common shares outstanding – diluted	27,299			27,273			27,306			27,268

Net income per common share – basic	$	1.44		$	1.29		$	2.35		$	2.26
Net income per common share – diluted	$	1.44		$	1.28		$	2.34		$	2.26

Reclassifications Out of Accumulated Other Comprehensive Loss

The following table presents the amounts reclassified out of accumulated other comprehensive loss by component:



	Three Months Ended December 31,						Six Months Ended December 31,
	2013			2012			2013			2012
Accumulated other comprehensive loss at beginning of period	$	(8,324	)	$	(12,058	)	$	(8,391	)	$	(12,162	)
Defined Benefit Pension Plan Items:
Amortization of unrecognized net loss ⁽¹⁾	115			172			230			344
Postretirement Benefit Plan Items:
Amortization of unrecognized net gain ⁽¹⁾	(7		)	(5		)	(14		)	(10		)
Amortization of prior service asset ⁽¹⁾	(1		)	(1		)	(2		)	(2		)
Total other comprehensive income, before tax	107			166			214			332
Total tax expense	(39		)	(62		)	(79		)	(124		)
Other comprehensive income, net of tax	68			104			135			208
Accumulated other comprehensive loss at end of period	$	(8,256	)	$	(11,954	)	$	(8,256	)	$	(11,954	)

(1) Included in the computation of net periodic benefit income/cost. See Notes 7 and 8 for additional information.

Significant Accounting Policies

There were no changes to our Significant Accounting Policies from those disclosed in our 2013 Annual Report on Form 10-K.