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Note 10 - Restructuring and Other Charges, Net of Gains
12 Months Ended
Jun. 30, 2024
Notes to Financial Statements  
Restructuring, Impairment, and Other Activities Disclosure [Text Block]

(11)

Restructuring and Other Charges, Net of Gains

 

Restructuring and other charges, net of gains, were as follows (in thousands):

 

   

Fiscal Year Ended June 30,

 
   

2024

   

2023

 

Gain on sale-leaseback transaction

  $ (2,620 )   $ (4,222 )

Orleans, Vermont flood

    2,243       -  

Gain on sale of property, plant and equipment

    -       (311 )

Severance and other charges

    300       813  

Total Restructuring and other charges, net of gains

  $ (77 )   $ (3,720 )

 

Activity within restructuring and other charges, net of gains is summarized in the table below (in thousands):

 

   

Balance

   

Fiscal 2024 Activity

   

Balance

 
   

June 30, 2023

   

Expense (Gain)

   

Non-Cash

   

Payments

   

Proceeds

   

June 30, 2024

 

Orleans, Vermont flood (1)

                                               

Inventory write-downs and overhead manufacturing costs

  $ -     $ 1,426     $ 1,426     $ -     $ -     $ -  

Repair and remediation costs

    -       2,416       -       (2,215 )     -       201 (1) 

Insurance recoveries and grant proceeds (2)

    -       (1,599 )     -       -       1,599       -  

Sub-total

  $ -     $ 2,243     $ 1,426     $ (2,215 )   $ 1,599     $ 201  
                                                 

Gain on sale-leaseback transaction

  $ 2,838     $ (2,620 )   $ -     $ -     $ -     $ 218 (3) 

Severance and other charges

    321       300       -       (403 )     -       218  

Total Restructuring and other charges, net of gains

  $ 3,159     $ (77 )   $ 1,426     $ (2,618 )   $ 1,599     $ 637  

 

(1)

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.

 

(2)

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.

 

(3)

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.