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 2014 Annual Report on Form 10-K. Prior-year results reflect the classification of the sold candle manufacturing and marketing operations as discontinued operations. 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, 2015 refers to fiscal 2015, which is the period from July 1, 2014 to June 30, 2015.

Property, Plant and Equipment

Property, plant and equipment are stated at cost less accumulated depreciation, except for those acquired as part of a business combination, which are stated at fair value at the time of purchase. 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:



	March 31,
	2015		2014
Construction in progress in accounts payable	$	489	$	1,465

Accrued Distribution

Accrued distribution costs included in accrued liabilities were $6.1 million and $6.4 million at March 31, 2015 and June 30, 2014, respectively.

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 income per common share from continuing operations were calculated as follows:



	Three Months Ended March 31,						Nine Months Ended March 31,
	2015			2014			2015			2014
Income from continuing operations	$	20,403		$	18,900		$	76,118		$	80,085
Income from continuing operations available to participating securities	(26		)	(21		)	(109		)	(139		)
Income from continuing operations available to common shareholders	$	20,377		$	18,879		$	76,009		$	79,946

Weighted average common shares outstanding – basic	27,303			27,261			27,294			27,258
Incremental share effect from:
Nonparticipating restricted stock	2			2			3			3
Stock-settled stock appreciation rights	25			34			26			42
Weighted average common shares outstanding – diluted	27,330			27,297			27,323			27,303

Income per common share from continuing operations – basic and diluted	$	0.75		$	0.69		$	2.78		$	2.93

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 March 31,						Nine Months Ended March 31,
	2015			2014			2015			2014
Accumulated other comprehensive loss at beginning of period	$	(7,936	)	$	(8,256	)	$	(8,061	)	$	(8,391	)
Defined Benefit Pension Plan Items:
Amortization of unrecognized net loss ⁽¹⁾	107			115			321			345
Postretirement Benefit Plan Items:
Amortization of unrecognized net gain ⁽¹⁾	(7		)	(6		)	(21		)	(20		)
Amortization of prior service asset ⁽¹⁾	(1		)	(1		)	(3		)	(3		)
Total other comprehensive income, before tax	99			108			297			322
Total tax expense	(37		)	(40		)	(110		)	(119		)
Other comprehensive income, net of tax	62			68			187			203
Accumulated other comprehensive loss at end of period	$	(7,874	)	$	(8,188	)	$	(7,874	)	$	(8,188	)

(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 2014 Annual Report on Form 10-K.

Recently Issued Accounting Standards

In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers” (“ASU 14-09”) which creates a comprehensive set of guidelines for the recognition of revenue under the principle: “Recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” The requirements of ASU 14-09 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2016 and will require either retrospective application to each prior period presented or retrospective application with the cumulative effect of initially applying the standard recognized at the date of adoption. We are currently evaluating the impact this ASU will have on our financial position and results of operations.