Restructuring, Impairment, and Other Activities Disclosure [Text Block] |
(11)
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Restructuring and Other Charges, Net of Gains
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Restructuring and other charges, net of gains, were as follows (in thousands):
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Fiscal Year Ended June 30,
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2024
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2023
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Gain on sale-leaseback transaction
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$ |
(2,620 |
) |
|
$ |
(4,222 |
) |
Orleans, Vermont flood
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|
2,243 |
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|
- |
|
Gain on sale of property, plant and equipment
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|
- |
|
|
|
(311 |
) |
Severance and other charges
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|
300 |
|
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|
813 |
|
Total Restructuring and other charges, net of gains
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|
$ |
(77 |
) |
|
$ |
(3,720 |
) |
Activity within restructuring and other charges, net of gains is summarized in the table below (in thousands):
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Balance
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Fiscal 2024 Activity
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Balance
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June 30, 2023
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Expense (Gain)
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Non-Cash
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Payments
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Proceeds
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June 30, 2024
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Orleans, Vermont flood (1)
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Inventory write-downs and overhead manufacturing costs
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$ |
- |
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|
$ |
1,426 |
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|
$ |
1,426 |
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|
$ |
- |
|
|
$ |
- |
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|
$ |
- |
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Repair and remediation costs
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|
- |
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2,416 |
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|
- |
|
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|
(2,215 |
) |
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- |
|
|
|
201 |
(1) |
Insurance recoveries and grant proceeds (2)
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|
|
- |
|
|
|
(1,599 |
) |
|
|
- |
|
|
|
- |
|
|
|
1,599 |
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|
|
- |
|
Sub-total
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|
$ |
- |
|
|
$ |
2,243 |
|
|
$ |
1,426 |
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|
$ |
(2,215 |
) |
|
$ |
1,599 |
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|
$ |
201 |
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Gain on sale-leaseback transaction
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|
$ |
2,838 |
|
|
$ |
(2,620 |
) |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
218 |
(3) |
Severance and other charges
|
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|
321 |
|
|
|
300 |
|
|
|
- |
|
|
|
(403 |
) |
|
|
- |
|
|
|
218 |
|
Total Restructuring and other charges, net of gains
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$ |
3,159 |
|
|
$ |
(77 |
) |
|
$ |
1,426 |
|
|
$ |
(2,618 |
) |
|
$ |
1,599 |
|
|
$ |
637 |
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(1)
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In July 2023 our wood furniture manufacturing operations located in Orleans, Vermont sustained damage from flooding. In addition to losses related to wood furniture inventory parts and state-of-the-art manufacturing equipment, the flooding also resulted in a temporary work stoppage for many of our Vermont employees and a delay of shipments. Losses incurred from the disposal of damaged inventory, inoperable machinery equipment from water damage, facility cleanup, and restoration, was $2.2 million, net of insurance recoveries and grant proceeds. The remaining amount of repair costs to be paid at June 30, 2024 is accrued for within Accounts payable and accrued expenses.
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(2)
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The Vermont Department of Economic Development awarded Ethan Allen a $0.5 million grant through its Business Emergency Gap Assistance Program. Additional insurance proceeds totaling $1.1 million were received during fiscal 2024 from existing insurance policies. All of these proceeds were used toward the cleanup and restoration efforts.
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(3)
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In August 2022 we sold and subsequently leased back a retail design center and recognized a net gain of $4.2 million for the year ended June 30, 2023. The remaining deferred liability of $0.2 million at June 30, 2024 will be recognized over the remaining life of the lease. Refer to Note 6, Leases, for further discussion on the sale-leaseback transaction.
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