Flexsteel Industries (FLXS) 10-Q 31 Oct 19 2020 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Sep. 30, 2019	Oct. 29, 2019
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Entity Registrant Name	FLEXSTEEL INDUSTRIES INC
Entity Central Index Key	0000037472
Current Fiscal Year End Date	--06-30
Entity Filer Category	Accelerated Filer
Title of 12(b) Security	Common Stock
Trading Symbol	FLXS
Security Exchange Name	NASDAQ
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		7,941,762

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
ASSETS
Cash and cash equivalents	$ 36,236	$ 22,247
Trade receivables - less allowances: September 30, 2019, $418; June 30, 2019, $250	36,325	38,157
Inventories	93,568	93,659
Other	4,432	11,904
Total current assets	170,561	165,967
NONCURRENT ASSETS:
Property, plant and equipment, net	76,486	79,238
Operating lease right-of-use assets	11,516
Deferred income taxes	7,577	7,564
Other assets	1,332	1,518
TOTAL ASSETS	267,472	254,287
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable - trade	14,506	18,414
Current portion of operating lease liabilities	4,373
Accrued liabilities:
Payroll and related items	4,335	4,428
Insurance	4,443	4,554
Restructuring costs	2,619	6,203
Advertising	3,118	3,497
Environmental remediation	3,600	3,600
Other	7,774	7,068
Total current liabilities	44,768	47,764
LONG-TERM LIABILITIES:
Operating lease liabilities, less current maturities	7,483
Other liabilities	698	1,096
Total liabilities	52,949	48,860
SHAREHOLDERS' EQUITY:
Common stock - $1 par value; authorized 15,000,000 shares; outstanding September 30, 2019, 7,941,762 shares; outstanding June 30, 2019, 7,902,708 shares	7,942	7,903
Additional paid-in capital	28,822	27,512
Retained earnings	177,759	170,004
Accumulated other comprehensive (loss) income		8
Total shareholders' equity	214,523	205,427
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 267,472	$ 254,287

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Consolidated Balance Sheets [Abstract]
Trade receivables, allowance for doubtful accounts	$ 418	$ 250
Common stock, par value	$ 1	$ 1
Common stock, authorized	15,000,000	15,000,000
Common stock, outstanding	7,941,762	7,902,708

Consolidated Statements Of Inco

Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Consolidated Statements Of Income [Abstract]
Net sales	$ 100,348	$ 113,487
Cost of goods sold	(83,127)	(91,696)
Gross margin	17,221	21,791
Selling, general and administrative	(17,475)	(20,196)
Restructuring expense	(6,004)
Gain on sale of facility	18,941
Operating income	12,683	1,595
Other income (expense)	86	181
Income before income taxes	12,769	1,776
Income tax provision	(3,218)	(480)
Net income	$ 9,551	$ 1,296
Weighted average number of common shares outstanding:
Basic	7,928	7,875
Diluted	8,190	7,921
Earnings per share of common stock
Basic	$ 1.20	$ 0.16
Diluted	$ 1.17	$ 0.16

Consolidated Statements Of Comp

Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Consolidated Statements Of Comprehensive Income [Abstract]
Net income	$ 9,551	$ 1,296
Other comprehensive income:
Unrealized gains (losses) on securities	(13)	18
Reclassification of realized gains (loss) on securities to other income	2	5
Other comprehensive (loss) income before taxes	(11)	23
Income tax benefit (expense) related to securities gain (loss)	3	(6)
Other comprehensive (loss) gain, net of tax	(8)	17
Comprehensive income	$ 9,543	$ 1,313

Consolidated Statements Of Chan

Consolidated Statements Of Changes In Shareholders' Equity - USD ($) $ in Thousands	Total Par Value Of Common Shares [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive (Loss) Income [Member]	Total
Balance, period start at Jun. 30, 2018		$ 26,321	$ 209,553	$ (2,044)	$ 241,698
Balance, shares at Jun. 30, 2018	7,868,000
Issuance of common stock:
Stock options exercised, net		41			44
Stock options exercised, net, shares	3,000
Unrealized gain (loss) on available for sale investments, net of tax				17	17
Long-term incentive compensation		(115)			(108)
Long-term incentive compensation, shares	7,000
Stock-based compensation		440			446
Stock-based compensation, shares	6,000
Cash dividends declared			(1,734)		(1,734)
Net income			1,296		1,296
Balance, period end at Sep. 30, 2018		26,687	209,115	(2,027)	241,659
Balance, shares at Sep. 30, 2018	7,884,000
Balance, period start at Jun. 30, 2018		26,321	209,553	(2,044)	$ 241,698
Balance, shares at Jun. 30, 2018	7,868,000
Issuance of common stock:
Stock options exercised, net, shares					5,000
Balance, period end at Jun. 30, 2019		27,512	170,004	8	$ 205,427
Balance, shares at Jun. 30, 2019	7,903,000				7,902,708
Issuance of common stock:
Unrealized gain (loss) on available for sale investments, net of tax				$ (8)	$ (8)
Long-term incentive compensation		109			109
Stock-based compensation		1,201			1,240
Stock-based compensation, shares	39,000
Cash dividends declared			(1,754)		(1,754)
Net income			9,551		9,551
Balance, period end at Sep. 30, 2019		$ 28,822	177,759		$ 214,523
Balance, shares at Sep. 30, 2019	7,942,000				7,941,762
Adoption of ASU 2016-02 | Accounting Standards Update 2016-02 [Member]			$ (42)		$ (42)

Consolidated Statements Of Cash

Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
OPERATING ACTIVITIES:
Net income	$ 9,551	$ 1,296
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	2,484	1,903
Deferred income taxes	(13)	(376)
Stock-based compensation expense	1,416	549
Change in provision for losses on accounts receivable	(238)
Gain on disposition of capital assets	(18,941)	(33)
Changes in operating assets and liabilities:
Trade receivables	2,070	(2,325)
Inventories	91	5,919
Other current assets	7,468	(2)
Other assets	176
Accounts payable - trade	(3,809)	2,361
Accrued liabilities	(3,173)	563
Other long-term liabilities	(401)	43
Net cash (used in) provided by operating activities	(3,319)	9,898
INVESTING ACTIVITIES:
Purchases of investments	(646)	(10,016)
Proceeds from sales of investments	646	8,015
Proceeds from sale of capital assets	19,625	33
Capital expenditures	(512)	(10,434)
Net cash provided by (used in) investing activities	19,113	(12,402)
FINANCING ACTIVITIES:
Dividends paid	(1,738)	(1,729)
Proceeds from issuance of common stock		43
Shares issued to employees, net of shares withheld	(67)	(211)
Net cash used in financing activities	(1,805)	(1,897)
Increase (decrease) in cash and cash equivalents	13,989	(4,401)
Cash and cash equivalents at beginning of period	22,247	27,750
Cash and cash equivalents at end of period	36,236	23,349
SUPPLEMENTAL INFORMATION
Income taxes paid (refunded), net	(4,746)
Capital expenditures in accounts payable	$ 142	$ 4,006

Basis Of Presentation And Descr

Basis Of Presentation And Description Of Business	3 Months Ended
	Sep. 30, 2019
Basis Of Presentation And Description Of Business [Abstract]
Basis Of Presentation And Description Of Business	1. BASIS OF PRESENTATION AND DESCRIPTION OF BUSINESS  BASIS OF PRESENTATION – The consolidated financial statements included herein have been prepared by Flexsteel Industries, Inc. and Subsidiaries (the “Company” or “Flexsteel”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The information furnished in the consolidated financial statements includes normal recurring adjustments and reflects all adjustments, which are, in the opinion of management, necessary for a fair presentation of such consolidated financial statements. Operating results for the three months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2020. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States of America have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. Except to the extent updated or described below, the significant accounting policies set forth in Note 1 to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended June 30, 2019, appropriately represent, in all material respects, the current status of accounting policies and are incorporated by reference.  DESCRIPTION OF BUSINESS – Flexsteel Industries, Inc. and Subsidiaries (the “Company”) was incorporated in 1929 and is one of the oldest and largest manufacturers, importers and marketers of residential and contract upholstered and wooden furniture products in the United States. Over the generations the Company has built a committed retail and consumer following based on its patented, guaranteed-for-life Blue Steel Spring TM – the all-riveted, high-carbon, steel-banded seating platform that gives upholstered and leather furniture the strength and comfort to last a lifetime. With offerings for use in home, healthcare, and recreational seating, the Company distributes its furniture throughout the United States and Canada through the Company’s sales force and various independent representatives.  RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS – On July 1, 2019, the Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) (“ASC 842”) and the related amendments. ASC 842 requires lessees to (i) recognize a right of use asset and a lease liability that is measured at the present value of the remaining lease payments, on the consolidated balance sheets, (ii) recognize a single lease cost, calculated over the lease term on a straight-line basis and (iii) classify lease related cash payments within operating and financing activities.  The Company adopted ASC 842 utilizing the optional transition method, which allows guidance to be initially applied at the adoption date with a cumulative-effect adjustment to the opening balance of retained earnings. The Company elected the package of practical expedients, which allows the Company to forgo reassessing prior conclusions on lease definition, classification and initial direct costs related to existing leases as of the adoption date. The Company has made an accounting policy election to not to recognize short-term leases on the consolidated balance sheets and all non-lease components, such as common area maintenance, were excluded .

Leases

Leases	3 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Leases	2. LEASES  Effective July 1, 2019, the Company adopted ASC 842, which resulted in a recognition of right-of-use (“ROU”) assets and lease liabilities on the Company’s consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities reflect the obligation to make lease payments arising from the lease. At any given time during the lease term, the lease liability represents the present value of the remaining lease payments and the ROU asset is measured at the amount of the lease liability, adjusted for pre-paid rent, unamortized initial direct costs and the remaining balance of lease incentives received. Both the lease ROU asset and liability are reduced to zero at the end of the lease term.  The Company leases distribution centers and warehouses, manufacturing facilities, showrooms and office space. At the lease inception date, the Company determines if an arrangement is, or contains a lease. Some of our leases include options to renew at similar terms. The Company assess es these options to determine if the Company is reasonably certain of exercising these options based on relevant economic and financial factors. Options that meet these criteria are included in the l e ase term at the lease commencement date. The Company does not record leases with a term of 12 months or less on the Company’s consolidated balance sheets.  For purposes of measuring the Company’s ROU asset and lease liability, the discount rate utilized by the Company was based on the average interest rates effective for the Company’s two $10.0 million line s of credit. Some of the Company’s leases contain variable rent payments, including common area maintenance and utilities. Due to the variable nature of these costs, they are not included in the measurement of the ROU asset and lease liability.    The components of the Company’s leases reflected on the Company’s consolidated statements of income were as follows:       Three Months Ended  September 30,  (in thousands) 2019  Operating lease expense $ 1,173  Variable lease expense 65  Total lease expense $ 1,238  Other information related to leases were as follows:       Three Months Ended  September 30,  2019  (in thousands)  Cash paid for amounts included in the measurement of lease liabilities:  Operating cash flows from operating leases 646   Right-of-use assets obtained in exchange for lease liabilities:  Operating leases —   Weighted-average remaining lease term (in years):  Operating leases 1.9   Weighted-average discount rate:  Operating leases 3.5%   Fiscal year  (in thousands)  2020 (remainder of fiscal year) $ 3,846  2021 3,990  2022 2,229  2023 1,283  2024 1,330  Thereafter —  Total future minimum lease payments $ 12,678  Less – Discount 822  Lease liability $ 11,856   Future minimum lease payments under non-cancellable operating l eases based on accounting standards applicable as of June 30, 2019 were as follows :       Fiscal year  (in thousands)  2020 $ 4,617  2021 3,990  2022 2,229  2023 1,283  2024 1,330  Thereafter —  Total future minimum lease payments $ 13,449

Inventories

Inventories	3 Months Ended
	Sep. 30, 2019
Inventories [Abstract]
Inventories	3. INVENTORIES  A comparison of inventories is as follows:       September 30, June 30,  (in thousands) 2019 2019  Raw materials $ 13,517 $ 14,182  Work in process and finished parts 7,747 6,408  Finished goods 72,304 73,069  Total $ 93,568 $ 93,659

Accrued Restructuring

Accrued Restructuring	3 Months Ended
	Sep. 30, 2019
Accrued Restructuring [Abstract]
Accrued Restructuring	4. ACCRUED RESTRUCTURING  On May 15, 2019, the Company announced its plans to exit the Commercial Office and custom-designed Hospitality product lines which represent approximately 7% of its revenue, and subsequently permanently closed its Riverside, California manufacturing facility. On September 26, 2019, the Company closed on the sale of the Riverside property resulting in net proceeds to the Company of $19.6 million after customary closing costs, prorations, and sales commissions and the Company recorded a gain of gain of $18.9 million. These actions were initial outcomes driven from customer and product line profitability and footprint utilization analyses completed in the fourth quarter of fiscal 2019 .  On June 18, 2019, the Company announced it completed the analysis and planning process and set forth the comprehensive transformation program to be executed over the next two years, which includes previously announced restructuring activities. The transformation program includes activities such as business simplification, process improvement, exiting of non-core businesses, facility closures, and reductions in work force over the next two years. The activities are designed to increase organizational effectiveness, gain manufacturing efficiencies and provide cost savings that can be invested in growing the business.  As a result of these planned actions, the Company expects to incur pre-tax restructuring and related expenses of approximately $48.0 to $53.0 million over this two -year timeframe of which $36.0 to $40.0 million will be cash and $12.0 to $13.0 million non-cash. In addition, the Company plans to list several properties for sale when the footprint optimization is completed. When sold, the Company expects to generate $45.0 to $55.0 million in proceeds dependent upon market conditions at time of sale. Total cumulative restructuring and related costs incurred as of September 30, 2019 were $23.9 million.  The c omponents of accrued restructuring costs are as follows:       Accrued Accrued  Restructuring Restructuring  June 30, September 30,  (in thousands) 2019 Cost Incurred Expenses Paid Non-Cash 2019  One-time employee termination benefits $ 1,731 $ 346 $ (1,238) $ — $ 839  Contract termination costs 249 — (82) — 167  Other associated costs 4,223 5,658 (7,422) (846) 1,613  Total $ 6,203 $ 6,004 $ (8,742) $ (846) $ 2,619

Credit Arrangements

Credit Arrangements	3 Months Ended
	Sep. 30, 2019
Credit Arrangements [Abstract]
Credit Arrangements	5. CREDIT ARRANGEMENTS  The Company maintains an unsecured credit agreement that provides short-term working capital financing up to $ 10.0 million with interest of LIBOR plus 1% ( 3.02% at September 30, 2019 ), including up to $ 4.0 million of letters of credit. Letters of credit outstanding at September 30, 2019 totaled $1.3 million. Other than the outstanding letters of credit, the Company did not utilize borrowing availability under the credit facility, leaving borrowing availability of $8.7 million as of September 30, 2019 . The credit agreement expires June 30, 2020. At September 30, 2019 , the Company was in compliance with all of the financial covenants contained in the credit agreement.  The Company maintains an additional unsecured $10.0 million line of credit, with interest at prime minus 2% ( 3.00% at September 30, 2019 ). No amount was outstanding on the line of credit at September 30, 2019 . This line of credit matures December 31, 2019.   

Income Taxes

Income Taxes	3 Months Ended
	Sep. 30, 2019
Income Taxes [Abstract]
Income Taxes	6. INCOME TAXES  The provision for income taxes for the interim periods is based on an estimate of the Company’s annual effective tax rate adjusted to reflect the impact of discrete items. Management judgment is required in projecting ordinary income to estimate the Company’s annual effective tax rate. The Company’s effective tax rate for the quarters ended September 30, 2019 and 2018 were 25.2% and 27.0% , respectively.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Sep. 30, 2019
Stock-Based Compensation [Abstract]
Stock-Based Compensation	7. STOCK-BASED COMPENSATION  The Company has two stock-based compensation methods available when determining employee compensation.  (1) Long-Term Incentive Compensation Plans  Long-Term Incentive Compensation Plan  The Long-Term Incentive Compensation Plan provides for shares of common stock to be awarded to officers and key employees based on performance targets set by the Compensation Committee of the Board of Directors (the “Committee”). The Company’s shareholders previously approved 700,000 shares to be issued under the plan. As of September 30, 2019 , 102,183 shares have been issued. The Committee selected fully-diluted earnings per share and total shareholder return as the performance goal for the three -year performance periods July 1, 2017 – June 30, 2020 (2018-2020) and July 1, 2018 – June 30, 2021 (2019-2021) . For the July 1, 2019 – June 30, 2022 (2020-2022) three -year performance period, the Committee selected Adjusted Earnings Before Interest and Tax with a defined percentage growth in fiscal year 2021 and 2022 . Stock awards will be issued to participants as soon as practicable following the end of the performance periods subject to verification of results and C ommittee approval. The compensation cost related to the number of shares to be granted under each performance period is fixed on the grant date, which is the date the performance period begins.  During the quarter ended September 30, 2019, the Company increased the provision in the amount of $0.1 million . During the quarter ended September 30, 2018, the Company recorded no plan expense. If the target performance goals for 2018-2020, 2019-2021 and 2020-2022 plans would be achieved, the total amount of compensation cost recognized over the requisite performance periods would be $ 0 . 8 million, $0.5 million and $0.3 million, respectively.  (2) Stock Plans  Omnibus Stock Plan  The Omnibus Stock Plan is for key employees, officers and directors and provides for the granting of incentive and nonqualified stock options, restricted stock, restricted stock units, stock appreciation rights and performance units. The Company’s shareholders previously approved 700,000 shares to be issued under the plan.  Under the Omnibus Stock Plan, options are granted at an exercise price equal to the fair market value of the underlying common stock at the date of grant and exercisable for up to 10 years. It is the Company’s policy to issue new shares upon exercise of stock options. The Company accepts shares of the Company’s common stock as payment for the exercise price of options. Shares received as payment are retired upon receipt. During the quarter ended September 30, 2019, the Company issued options for 30,000 common shares to its Chief Executive Officer, in lieu of a cash bonus, which was expensed in the prior year. During the quarter ended September 30, 2018, the Company issued options for 36,095 common shares and recorded expense of $0.3 million related to stock option grants.  Under the Omnibus Stock Plan, the Company issued 5,425 and 2,590 shares to non-executive directors as compensation and recorded expense of $0.1 million during the quarters ended September 30, 2019 and 2018, respectively .  During the quarter ended September 30, 2019, the Company recorded $0.8 million in restructuring expense for grants of an aggregate 167,760 restricted stock units and 10,382 restricted stock shares under the plan to executives as per their notification of award letters dated July 1, 2019 . These restricted stock units and restricted stock shares were granted by the Compensation Committee to serve as a retention incentive for the executives during the restructuring. The restricted stock units vest over an 18 -month period. The Company also recorded $0.1 million compensation expense for grants of an aggregate 43,929 restricted stock units under the plan to executives as per their notification of award letters dated July 19, 2019.  During the quarter ended September 30, 2019, the Company recorded $0.1 million compensation expense related to 30,000 restricted stock units, 30,000 options and 3,186 restricted stock shares which were awarded to its Chief Executive Officer as per a notification of award letter s dated December 28, 2018.  During the quarter ended September 30, 2018, the Company recorded $0.2 million compensation expense for grants of an aggregate 39,666 restricted stock units under the plan to four executive officers as per their notification of award letters dated July 1, 2018.  At September 30, 2019, 184,030 shares were available for future grants under the plan.  2006 and 2009 Stock Option Plans  The 2006 and 2009 Stock Option Plans are for key employees, officers and directors and provide for granting incentive and nonqualified stock options. Under the plans, options were granted at an exercise price equal to the fair market value of the underlying common stock at the date of grant and exercisable for up to 10 years. All options were exercisable when granted. No additional options can be granted under the 2006 and 2009 Stock Option Plans.  (3) Outside a Plan  During the quarter ended December 31, 2018, the Company awarded its Chief Executive Officer 55,000 options outside any Company stock plan. The Company recorded $20 thousand compensation expense related to this grant during the quarter ended September 30, 2019.  (4) Summary  A summary of the status of the Company’s stock option plans as of September 30, 2019 , June 30, 2019 and 2018 and the changes during the periods then ended is presented below:       Weighted  Shares Average  (in thousands) Exercise Price  Outstanding at June 30, 2018 166 $ 30.65  Granted 100 26.89  Exercised (5) 15.50  Cancelled (36) 36.59  Outstanding at June 30, 2019 225 $ 28.37  Granted 30 15.14  Cancelled (12) 32.99  Outstanding at September 30, 2019 243 $ 26.50  The following table summarizes information for options outstanding at September 30, 2019 :       Options Weighted Average  Range of Outstanding Remaining Exercise  Prices (in thousands) Life (Years) Price  $ 8.55 - 15.14 44 7.3 $ 14.11  17.23 - 19.77 23 2.4 18.81  20.50 - 27.57 93 7.2 24.16  31.06 - 32.80 49 7.0 32.27  43.09 - 47.45 34 7.0 45.34  $ 8.55 - 47.45 243 6.3 $ 26.50

Earnings Per Share

Earnings Per Share	3 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Earnings Per Share	8. EARNINGS PER SHARE  Basic earnings per share (EPS) of common stock are based on the weighted-average number of common shares outstanding during each period. Diluted earnings per share of common stock include the dilutive effect of potential common shares outstanding. The Company’s potential common shares outstanding are stock options, shares associated with the Long-Term Incentive Compensation Plan and non-vested shares. The Company calculates the dilutive effect of outstanding options using the treasury stock method. Anti-dilutive shares are not included in the computation of diluted EPS when their exercise price is greater than the average closing market price of the common shares. The Company calculates the dilutive effect of shares related to the Long-Term Incentive Compensation Plan and non-vested shares based on the number of shares, if any, that would be issuable if the end of the fiscal period were the end of the contingency period.  For the quarter ended September 30, 2018, net income as reported for each respective period is divided by the fully diluted weighted-average number of shares outstanding:       Three Months Ended  September 30,  (in thousands) 2019 2018  Basic shares 7,928 7,875  Potential common shares:  Stock options 4 40  Non-vested shares 258 6  262 46  Diluted shares 8,190 7,921   Anti-dilutive shares 254 52  Cash dividends declared per common share were $0.22 and $0.22 for the quarters ended September 30, 2019 and 2018.

Litigation

Litigation	3 Months Ended
	Sep. 30, 2019
Litigation [Abstract]
Litigation	9. LITIGATION Environmental Matters – In March 2016, the Company received a General Notice Letter for the Lane Street Groundwater Superfund Site (the “Lane Street Site”) located in Elkhart, Indiana from the U.S. Environmental Protection Agency (EPA). In April 2016, the EPA issued their proposed clean-up plan for groundwater pollution and request for public comment. The Company responded to the request for public comment in May 2016. The EPA issued a Record of Decision selecting a remedy in August 2016 and estimated total costs to remediate of $3.6 million. In July 2017, the EPA issued a Special Notice Letter to the Company demanding that the Company perform the remedy selected and pay for the remediation cost and past response costs of $5.5 million. On October 12, 2017, the Company, after consultation with its insurance carriers, offered an amount, fully reimbursable by insurance coverage, to the EPA to resolve this matter. On November 6, 2017, the settlement offer extended on October 12, 2017 was rejected.  In April 2018, the EPA issued a Unilateral Administrative Order for Remedial Design and Remedial Action (the “Order”) against the Company. The Order was issued under Section 106(a) of the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), 42 U.S.C. §9606(a). The Order directs the Company to perform remedial design and remedial action for the Lane Street Site. The Order was to be effective May 29, 2018. To ensure completion of the remediation work, the EPA required the Company to secure financial assurance in the initial amount of $3.6 million, which as noted above, is the estimated cost of remedial work. The Company believes that financial assurance is not required because it meets the relevant financial test criteria as provided in the Order. In May 2018, the EPA agreed to suspend enforcement of the Order so that the Company could conduct environmental testing upgradient to its former manufacturing location pursuant to an Administrative Order on Consent (AOC). On July 5, 2018, the EPA proposed a draft AOC, to which the Company provided revisions. During the latter part of 2018, Flexsteel submitted to the EPA its proposed work plan for the upgradient testing to be conducted pursuant to the draft AOC. The EPA provided comments on that documentation on December 4, 2018. On January 23, 2019, Flexsteel submitted responses to the EPA’s comments and revised work plan documents. On April 24, 2019, the Company signed the finalized AOC with the EPA to conduct the upgradient investigation. The Company reflected a $3.6 million liability in the consolidated financial results for the fiscal year ended June 30, 2018. Despite the Company’s position that it did not cause nor contribute to the contamination, the Company continues to reflect this liability in the consolidated financials for the quarter ended September 30, 2019 in accordance with FASB issued Asset Retirement and Environmental Obligations (ASC 410-30) . The Company continues to evaluate the Order, its legal options and insurance coverages to assert its defense and recovery of current and future expenses related to this matter.  Employment Matters – The lawsuit entitled Juan Hernandez, et al. v. Flexsteel Industries, Inc . (“ Hernandez I ”), was filed on February 21, 2019 in the Superior Court for the County of Riverside by former employees Juan Hernandez and Richard Diaz (together, “Plaintiffs”). On April 29, 2019, Plaintiffs filed a second similarly titled lawsuit in the Superior Court for the County of Riverside (“ Hernandez II ”). Hernandez II is brought by the same attorneys as Hernandez I and features a single cause of action for civil penalties under the Private Attorneys General Act (“PAGA”). Flexsteel agreed to resolve both Hernandez I and Hernandez II in principle and on a class-wide basis for $0.5 million. That settlement will serve to resolve the claims of the two Plaintiffs, as well as the approximately 270 remaining members of the class unless an individual class member asks to be excluded. At present, the material terms of the settlement are captured in a Memorandum of Agreement, which will be supplemented in the next 30-to-90 days with a long-form Stipulation of Settlement. Flexsteel anticipates that obtaining final approval of the parties’ settlement from the court will take at least six months and potentially longer, such that any settlement payments will not be made until calendar year 2020. The settlement amount of $0.5 million, has been accrued in other current liabilities during the fiscal year ended June 30, 2019 and continues to reflect this liability in the consolidated financials for the quarter ended September 30, 2019.  Other Proceedings – From time to time, the Company is subject to various other legal proceedings, including lawsuits, which arise out of, and are incidental to, the conduct of the Company’s business. The Company does not consider any of such other proceedings that are currently pending, individually or in the aggregate, to be material to its business or likely to result in a material effect on its consolidated operating results, financial condition, or cash flows.

Basis Of Presentation And Des_2

Basis Of Presentation And Description Of Business (Policies)	3 Months Ended
	Sep. 30, 2019
Basis Of Presentation And Description Of Business [Abstract]
Basis Of Presentation	BASIS OF PRESENTATION – The consolidated financial statements included herein have been prepared by Flexsteel Industries, Inc. and Subsidiaries (the “Company” or “Flexsteel”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The information furnished in the consolidated financial statements includes normal recurring adjustments and reflects all adjustments, which are, in the opinion of management, necessary for a fair presentation of such consolidated financial statements. Operating results for the three months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2020. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States of America have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. Except to the extent updated or described below, the significant accounting policies set forth in Note 1 to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended June 30, 2019, appropriately represent, in all material respects, the current status of accounting policies and are incorporated by reference.
Recently Adopted Accounting Pronouncements	RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS – On July 1, 2019, the Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) (“ASC 842”) and the related amendments. ASC 842 requires lessees to (i) recognize a right of use asset and a lease liability that is measured at the present value of the remaining lease payments, on the consolidated balance sheets, (ii) recognize a single lease cost, calculated over the lease term on a straight-line basis and (iii) classify lease related cash payments within operating and financing activities.  The Company adopted ASC 842 utilizing the optional transition method, which allows guidance to be initially applied at the adoption date with a cumulative-effect adjustment to the opening balance of retained earnings. The Company elected the package of practical expedients, which allows the Company to forgo reassessing prior conclusions on lease definition, classification and initial direct costs related to existing leases as of the adoption date. The Company has made an accounting policy election to not to recognize short-term leases on the consolidated balance sheets and all non-lease components, such as common area maintenance, were excluded .

Leases (Table)

Leases (Table)	3 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Components Of Leases	   Three Months Ended  September 30,  (in thousands) 2019  Operating lease expense $ 1,173  Variable lease expense 65  Total lease expense $ 1,238 
Other Lease Information	   Three Months Ended  September 30,  2019  (in thousands)  Cash paid for amounts included in the measurement of lease liabilities:  Operating cash flows from operating leases 646   Right-of-use assets obtained in exchange for lease liabilities:  Operating leases —   Weighted-average remaining lease term (in years):  Operating leases 1.9   Weighted-average discount rate:  Operating leases 3.5%   Fiscal year  (in thousands)  2020 (remainder of fiscal year) $ 3,846  2021 3,990  2022 2,229  2023 1,283  2024 1,330  Thereafter —  Total future minimum lease payments $ 12,678  Less – Discount 822  Lease liability $ 11,856 
Future Minimum Lease Payments	   Fiscal year  (in thousands)  2020 $ 4,617  2021 3,990  2022 2,229  2023 1,283  2024 1,330  Thereafter —  Total future minimum lease payments $ 13,449 

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Sep. 30, 2019
Inventories [Abstract]
Comparison Of Inventories	   September 30, June 30,  (in thousands) 2019 2019  Raw materials $ 13,517 $ 14,182  Work in process and finished parts 7,747 6,408  Finished goods 72,304 73,069  Total $ 93,568 $ 93,659 

Accrued Restructuring (Table)

Accrued Restructuring (Table)	3 Months Ended
	Sep. 30, 2019
Accrued Restructuring [Abstract]
Components Of Restructuring Costs	   Accrued Accrued  Restructuring Restructuring  June 30, September 30,  (in thousands) 2019 Cost Incurred Expenses Paid Non-Cash 2019  One-time employee termination benefits $ 1,731 $ 346 $ (1,238) $ — $ 839  Contract termination costs 249 — (82) — 167  Other associated costs 4,223 5,658 (7,422) (846) 1,613  Total $ 6,203 $ 6,004 $ (8,742) $ (846) $ 2,619 

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Sep. 30, 2019
Stock-Based Compensation [Abstract]
Schedule Of Stock Option Plans	   Weighted  Shares Average  (in thousands) Exercise Price  Outstanding at June 30, 2018 166 $ 30.65  Granted 100 26.89  Exercised (5) 15.50  Cancelled (36) 36.59  Outstanding at June 30, 2019 225 $ 28.37  Granted 30 15.14  Cancelled (12) 32.99  Outstanding at September 30, 2019 243 $ 26.50 
Schedule Of Options Outstanding And Exercisable	   Options Weighted Average  Range of Outstanding Remaining Exercise  Prices (in thousands) Life (Years) Price  $ 8.55 - 15.14 44 7.3 $ 14.11  17.23 - 19.77 23 2.4 18.81  20.50 - 27.57 93 7.2 24.16  31.06 - 32.80 49 7.0 32.27  43.09 - 47.45 34 7.0 45.34  $ 8.55 - 47.45 243 6.3 $ 26.50 

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Schedule Of Earnings Per Share, Basic And Diluted	   Three Months Ended  September 30,  (in thousands) 2019 2018  Basic shares 7,928 7,875  Potential common shares:  Stock options 4 40  Non-vested shares 258 6  262 46  Diluted shares 8,190 7,921   Anti-dilutive shares 254 52 

Leases (Narrative) (Details)

Leases (Narrative) (Details) $ in Millions	Sep. 30, 2019USD ($)
Unsecured Short-Term Agreement [Member]
Short-term Debt [Line Items]
Credit agreement capacity	$ 10

Leases (Components Of Leases) (

Leases (Components Of Leases) (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2019USD ($)
Leases [Abstract]
Operating lease expense	$ 1,173
Variable lease expense	65
Total lease expense	$ 1,238

Leases (Other Lease Information

Leases (Other Lease Information) (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2019USD ($)
Leases [Abstract]
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases	$ 646
Weighted-average remaining lease term (in years): Operating leases	1 year 10 months 24 days
Weighted-average discount rate: Operating leases	3.50%
2020 (remainder of fiscal year)	$ 3,846
2021	3,990
2022	2,229
2023	1,283
2024	1,330
Total future minimum lease payments	12,678
Less - Discount	822
Lease liability	$ 11,856

Leases (Future Minimum Lease Pa

Leases (Future Minimum Lease Payments) (Details) $ in Thousands	Jun. 30, 2019USD ($)
Leases [Abstract]
2020	$ 4,617
2021	3,990
2022	2,229
2023	1,283
2024	1,330
Total future minimum lease payments	$ 13,449

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Inventories [Abstract]
Raw materials	$ 13,517	$ 14,182
Work in process and finished parts	7,747	6,408
Finished goods	72,304	73,069
Total inventories	$ 93,568	$ 93,659

Accrued Restructuring (Narrativ

Accrued Restructuring (Narrative) (Details) - USD ($) $ in Thousands	Sep. 26, 2019	May 15, 2019	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019
Restructuring Cost and Reserve [Line Items]
Proceeds from sale of building			$ 18,941
Expected restructuring costs			2,619		$ 6,203
Restructuring Charges			6,004
Gain on disposition of capital assets			$ (18,941)	$ (33)
Exit The Commercial Office And Custom-Designed Hospitality Product Lines [Member]
Restructuring Cost and Reserve [Line Items]
Percent of revenue related to restructuring plan		7.00%
Period of transformation program execution			2 years
Restructuring Charges			$ 23,900
Minimum [Member] | Exit The Commercial Office And Custom-Designed Hospitality Product Lines [Member]
Restructuring Cost and Reserve [Line Items]
Expected restructuring costs					48,000
Expected restructuring costs, Cash					36,000
Expected restructuring costs, Non-cash					12,000
Expected generation of cash					45,000
Maximum [Member] | Exit The Commercial Office And Custom-Designed Hospitality Product Lines [Member]
Restructuring Cost and Reserve [Line Items]
Expected restructuring costs					53,000
Expected restructuring costs, Cash					40,000
Expected restructuring costs, Non-cash					13,000
Expected generation of cash					$ 55,000
Manufacturing Facility [Member]
Restructuring Cost and Reserve [Line Items]
Proceeds from sale of building	$ 19,600

Accrued Restructuring (Componen

Accrued Restructuring (Components Of Restructuring Costs) (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2019USD ($)
Restructuring Cost and Reserve [Line Items]
Accrued Restructuring	$ 6,203
Costs Incurred	6,004
Expenses Paid	(8,742)
Non-Cash	(846)
Accrued Restructuring	2,619
One-time Employee Termination Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Accrued Restructuring	1,731
Costs Incurred	346
Expenses Paid	(1,238)
Accrued Restructuring	839
Contract Termination Costs [Member]
Restructuring Cost and Reserve [Line Items]
Accrued Restructuring	249
Expenses Paid	(82)
Accrued Restructuring	167
Other Associated Costs [Member]
Restructuring Cost and Reserve [Line Items]
Accrued Restructuring	4,223
Costs Incurred	5,658
Expenses Paid	(7,422)
Non-Cash	(846)
Accrued Restructuring	$ 1,613

Credit Arrangements (Details)

Credit Arrangements (Details)	Sep. 30, 2019USD ($)
Letter Of Credit [Member]
Short-term Debt [Line Items]
Credit agreement capacity	$ 4,000,000
Line of credit outstanding	1,300,000
Remaining borrowing amount available	8,700,000
Unsecured Short-Term Agreement [Member]
Short-term Debt [Line Items]
Credit agreement capacity	10,000,000
Line of credit outstanding	0
Unsecured Short-Term Agreement [Member] | Libor Plus 1 [Member]
Short-term Debt [Line Items]
Credit agreement capacity	$ 10,000,000
Interest rate	1.00%
Interest rate	3.02%
Unsecured Short-Term Agreement [Member] | Prime Minus 2 [Member]
Short-term Debt [Line Items]
Credit agreement capacity	$ 10,000,000
Interest rate	2.00%
Interest rate	3.00%

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Income Taxes [Abstract]
Effective income tax rate	25.20%	27.00%

Stock-Based Compensation (Narra

Stock-Based Compensation (Narrative) (Details) - USD ($)	3 Months Ended
	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018
Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	$ 20,000
Options issued under stock option plans		55,000
Long-Term Management Incentive Compensation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares approved to be issued under plan	700,000
Shares issued	102,183
Compensation cost	$ 100,000		$ 0
Long-Term Management Incentive Compensation Plan [Member] | 2018-2020 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	800,000
Long-Term Management Incentive Compensation Plan [Member] | 2019-2021 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	500,000
Long-Term Management Incentive Compensation Plan [Member] | 2020-2022 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	$ 300,000
Long-Term Management Incentive Compensation Plan [Member] | 2017-2021 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period	3 years
Long-Term Management Incentive Compensation Plan [Member] | 2019-2022 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period	3 years
Stock Option Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period options are excercisable	10 years
Shares available for future grants	0
New Omnibus Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares approved to be issued under plan	700,000
Compensation cost			$ 300,000
Period options are excercisable	10 years
Options issued under stock option plans			36,095
Shares available for future grants	184,030
New Omnibus Stock Plan [Member] | Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	$ 100,000
Options issued under stock option plans	30,000
New Omnibus Stock Plan [Member] | Chief Executive Officer [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued	30,000
New Omnibus Stock Plan [Member] | Chief Executive Officer [Member] | Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued	30,000
New Omnibus Stock Plan [Member] | Chief Executive Officer [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued	3,186
New Omnibus Stock Plan [Member] | Non-Executive Officers [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued	5,425		2,590
Compensation cost	$ 100,000		$ 100,000
New Omnibus Stock Plan [Member] | Seven Executives [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	$ 800,000
New Omnibus Stock Plan [Member] | Seven Executives [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued	167,760
New Omnibus Stock Plan [Member] | Seven Executives [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued	10,382
New Omnibus Stock Plan [Member] | Nine Executives [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	$ 100,000
New Omnibus Stock Plan [Member] | Nine Executives [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period	18 months
Shares issued	43,929
New Omnibus Stock Plan [Member] | Four Executives [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued	39,666
Compensation cost	$ 200,000

Stock-Based Compensation (Sched

Stock-Based Compensation (Schedule Of Stock Option Plans) (Details) - $ / shares shares in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019
Stock-Based Compensation [Abstract]
Shares, Outstanding	225	166
Shares, Granted	30	100
Shares, Exercised		(5)
Shares, Cancelled	(12)	(36)
Shares, Outstanding	243	225
Weighted Average Exercise Price, Outstanding	$ 28.37	$ 30.65
Weighted Average Exercise Price, Granted	15.14	26.89
Weighted Average Exercise Price, Exercised		15.50
Weighted Average Exercise Price, Cancelled	32.99	36.59
Weighted Average Exercise Price, Outstanding	$ 26.50	$ 28.37

Stock-Based Compensation (Sch_2

Stock-Based Compensation (Schedule Of Options Outstanding And Exercisable) (Details) shares in Thousands	3 Months Ended
	Sep. 30, 2019$ / sharesshares
8.55 - 15.44 [Member]
Share-Based Compensation, Shares Authorized Under Stock Option Plans, Exercise Price Range [Line Items]
Range of Price Lower	$ 8.55
Range of Price Upper	$ 15.14
Options Outstanding | shares	44
Weighted Average Remaining Life, Years	7 years 3 months 18 days
Weighted Average, Exercise Price	$ 14.11
17.23 - 19.77 [Member]
Share-Based Compensation, Shares Authorized Under Stock Option Plans, Exercise Price Range [Line Items]
Range of Price Lower	17.23
Range of Price Upper	$ 19.77
Options Outstanding | shares	23
Weighted Average Remaining Life, Years	2 years 4 months 24 days
Weighted Average, Exercise Price	$ 18.81
20.50 - 27.57 [Member]
Share-Based Compensation, Shares Authorized Under Stock Option Plans, Exercise Price Range [Line Items]
Range of Price Lower	20.50
Range of Price Upper	$ 27.57
Options Outstanding | shares	93
Weighted Average Remaining Life, Years	7 years 2 months 12 days
Weighted Average, Exercise Price	$ 24.16
31.06 - 32.80 [Member]
Share-Based Compensation, Shares Authorized Under Stock Option Plans, Exercise Price Range [Line Items]
Range of Price Lower	31.06
Range of Price Upper	$ 32.80
Options Outstanding | shares	49
Weighted Average Remaining Life, Years	7 years
Weighted Average, Exercise Price	$ 32.27
43.09 - 47.45 [Member]
Share-Based Compensation, Shares Authorized Under Stock Option Plans, Exercise Price Range [Line Items]
Range of Price Lower	43.09
Range of Price Upper	$ 47.45
Options Outstanding | shares	34
Weighted Average Remaining Life, Years	7 years
Weighted Average, Exercise Price	$ 45.34
8.55 - 47.45 [Member]
Share-Based Compensation, Shares Authorized Under Stock Option Plans, Exercise Price Range [Line Items]
Range of Price Lower	8.55
Range of Price Upper	$ 47.45
Options Outstanding | shares	243
Weighted Average Remaining Life, Years	6 years 3 months 18 days
Weighted Average, Exercise Price	$ 26.50

Earnings Per Share (Narrative)

Earnings Per Share (Narrative) (Details) - $ / shares	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Earnings Per Share [Abstract]
Dividends declared per common share	$ 0.22	$ 0.22

Earnings Per Share (Schedule Of

Earnings Per Share (Schedule Of Earnings Per Share, Basic And Diluted) (Details) - shares shares in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Earnings Per Share [Abstract]
Basic shares	7,928	7,875
Stock options	4	40
Non-vested shares	258	6
Potential common shares, total	262	46
Diluted	8,190	7,921
Anti-dilutive shares	254	52

Litigation (Details)

Litigation (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2019	Jul. 31, 2017	Aug. 31, 2016
Loss Contingencies [Line Items]
Estimated amount of possible loss				$ 5,500	$ 3,600
Environmental remediation		$ 3,600
Environmental remediation liability	$ 3,600		$ 3,600
Other current liabilities	7,068		$ 7,774
Employment Matters [Member]
Loss Contingencies [Line Items]
Other current liabilities	500
Amount awarded to other party	$ 500