Lancaster Colony (LANC) 10-Q 3 Nov 21 2022 Q1 Quarterly report Financial data

Cover

Cover - shares shares in Thousands	3 Months Ended
	Sep. 30, 2021	Oct. 15, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Document Transition Report	false
Entity File Number	000-04065
Entity Registrant Name	Lancaster Colony Corporation
Entity Incorporation, State or Country Code	OH
Entity Tax Identification Number	13-1955943
Entity Address, Address Line One	380 Polaris Parkway
Entity Address, Address Line Two	Suite 400
Entity Address, City or Town	Westerville
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	43082
City Area Code	(614)
Local Phone Number	224-7141
Title of 12(b) Security	Common Stock, without par value
Trading Symbol	LANC
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		27,530
Amendment Flag	false
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000057515
Document Fiscal Year Focus	2022
Current Fiscal Year End Date	--06-30

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2021
Current Assets:
Cash and equivalents	$ 130,089	$ 188,055
Receivables	108,365	97,897
Inventories:
Raw materials	48,077	48,895
Finished goods	110,292	72,980
Total inventories	158,369	121,875
Other current assets	13,033	15,654
Total current assets	409,856	423,481
Property, Plant and Equipment:
Land, buildings and improvements	270,972	252,174
Machinery and equipment	442,262	424,015
Total cost	713,234	676,189
Less accumulated depreciation	321,198	311,567
Property, plant and equipment-net	392,036	364,622
Other Assets:
Goodwill	208,371	208,371
Other intangible assets-net	57,625	58,766
Operating lease right-of-use assets	24,157	22,455
Other noncurrent assets	23,091	23,590
Total	1,115,136	1,101,285
Current Liabilities:
Accounts payable	127,753	110,338
Accrued liabilities	52,034	63,585
Total current liabilities	179,787	173,923
Noncurrent Operating Lease Liabilities	18,353	17,228
Other Noncurrent Liabilities	27,495	28,285
Deferred Income Taxes	39,446	38,702
Commitments and Contingencies
Shareholders' Equity:
Preferred stock-authorized 3,050,000 shares; outstanding-none
Common stock-authorized 75,000,000 shares; outstanding-September-27,529,867 shares; June-27,531,040 shares	130,832	128,617
Retained earnings	1,492,200	1,482,220
Accumulated other comprehensive loss	(8,211)	(8,253)
Common stock in treasury, at cost	(764,766)	(759,437)
Total shareholders' equity	850,055	843,147
Total	$ 1,115,136	$ 1,101,285

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - shares	Sep. 30, 2021	Jun. 30, 2021
Statement of Financial Position [Abstract]
Preferred stock, shares authorized	3,050,000	3,050,000
Preferred stock, shares outstanding	0	0
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares outstanding	27,529,867	27,531,040

Condensed Consolidated Statemen

Condensed Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Income Statement [Abstract]
Net Sales	$ 392,056	$ 349,237
Cost of Sales	299,689	256,583
Gross Profit	92,367	92,654
Selling, General and Administrative Expenses	51,856	48,198
Change in Contingent Consideration	0	(5,687)
Impairment Charges	0	1,195
Operating Income	40,511	48,948
Other, Net	20	4
Income Before Income Taxes	40,531	48,952
Taxes Based on Income	9,876	11,873
Net Income	$ 30,655	$ 37,079
Net Income Per Common Share:
Basic and diluted (in dollars per share)	$ 1.11	$ 1.35
Weighted Average Common Shares Outstanding:
Basic (in shares)	27,459	27,461
Diluted (in shares)	27,515	27,495

Condensed Consolidated Statem_2

Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Statement of Comprehensive Income [Abstract]
Net Income	$ 30,655	$ 37,079
Defined Benefit Pension and Postretirement Benefit Plans:
Amortization of loss, before tax	100	168
Amortization of prior service credit, before tax	(45)	(45)
Total Other Comprehensive Income, Before Tax	55	123
Tax Attributes of Items in Other Comprehensive Income:
Amortization of loss, tax	(23)	(39)
Amortization of prior service credit, tax	10	10
Total Tax Expense	(13)	(29)
Other Comprehensive Income, Net of Tax	42	94
Comprehensive Income	$ 30,697	$ 37,173

Condensed Consolidated Statem_3

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash Flows From Operating Activities:
Net income	$ 30,655	$ 37,079
Impacts of noncash items:
Depreciation and amortization	11,262	10,409
Change in contingent consideration	0	(5,687)
Deferred income taxes and other changes	800	3,179
Stock-based compensation expense	2,274	1,772
Impairment Charges	0	1,195
Pension plan activity	(137)	(57)
Changes in operating assets and liabilities:
Receivables	(10,468)	(10,389)
Inventories	(36,494)	(25,514)
Other current assets	2,238	(626)
Accounts payable and accrued liabilities	(1,302)	12,282
Net cash (used in) provided by operating activities	(1,172)	23,643
Cash Flows From Investing Activities:
Payments for property additions	(30,227)	(14,411)
Other-net	134	(137)
Net cash used in investing activities	(30,093)	(14,548)
Cash Flows From Financing Activities:
Payment of dividends	(20,675)	(19,270)
Purchase of treasury stock	(5,329)	(15)
Tax withholdings for stock-based compensation	(59)	(1,854)
Other-net	(638)	(141)
Net cash used in financing activities	(26,701)	(21,280)
Net change in cash and equivalents	(57,966)	(12,185)
Cash and equivalents at beginning of year	188,055	198,273
Cash and equivalents at end of period	130,089	186,088
Supplemental Disclosure of Operating Cash Flows:
Net cash payments for income taxes	$ 15	$ 1,617

Condensed Consolidated Statem_4

Condensed Consolidated Statements Of Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock Outstanding [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Loss [Member]	Treasury Stock [Member]
Balance (in shares) at Jun. 30, 2020		27,524,000
Balance at Jun. 30, 2020	$ 783,300	$ 125,153	$ 1,421,121	$ (12,070)	$ (750,904)
Net income	37,079		37,079
Net pension and postretirement benefit gains, net of tax effect	94			94
Cash dividends - common stock	(19,270)		(19,270)
Purchase of treasury stock (in shares)		0
Purchase of treasury stock	(15)				(15)
Stock-based plans (in shares)		16,000
Stock-based plans	(1,854)	$ (1,854)
Stock-based compensation expense	1,772	$ 1,772
Balance (in shares) at Sep. 30, 2020		27,540,000
Balance at Sep. 30, 2020	$ 801,106	$ 125,071	1,438,930	(11,976)	(750,919)
Balance (in shares) at Jun. 30, 2021	27,531,040	27,531,000
Balance at Jun. 30, 2021	$ 843,147	$ 128,617	1,482,220	(8,253)	(759,437)
Net income	30,655		30,655
Net pension and postretirement benefit gains, net of tax effect	42			42
Cash dividends - common stock	(20,675)		(20,675)
Purchase of treasury stock (in shares)		(30,000)
Purchase of treasury stock	(5,329)				(5,329)
Stock-based plans (in shares)		29,000
Stock-based plans	(59)	$ (59)
Stock-based compensation expense	$ 2,274	$ 2,274
Balance (in shares) at Sep. 30, 2021	27,529,867	27,530,000
Balance at Sep. 30, 2021	$ 850,055	$ 130,832	$ 1,492,200	$ (8,211)	$ (764,766)

Condensed Consolidated Statem_5

Condensed Consolidated Statements Of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Statement of Stockholders' Equity [Abstract]
Tax effect included in net pension and postretirement benefit gains	$ 13	$ 29
Common stock, dividends per share (in dollars per share)	$ 0.75	$ 0.70

Summary Of Significant Accounti

Summary Of Significant Accounting Policies	3 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Summary Of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Lancaster Colony Corporation and our wholly-owned subsidiaries, collectively referred to as “we,” “us,” “our,” “registrant” or the “Company” and 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. Intercompany transactions and accounts have been eliminated in consolidation. The results of operations for any interim period are not necessarily indicative of results for the full year. Accordingly, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in our 2021 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, 2022 refers to fiscal 2022, which is the period from July 1, 2021 to June 30, 2022. Deferred Software Costs We capitalize certain costs related to hosting arrangements that are service contracts (cloud computing arrangements). Capitalized costs are included in Other Current Assets or Other Noncurrent Assets and are amortized on a straight-line basis over the estimated useful life. For the three months ended September 30, 2021 and 2020, we capitalized $0.3 million and $1.6 million, respectively, of deferred software costs related to cloud computing arrangements. Property, Plant and Equipment Property, plant and equipment are recorded at cost, except for those acquired as part of a business combination, which are recorded at fair value at the time of purchase. We use the straight-line method of computing depreciation for financial reporting purposes based on the estimated useful lives of the corresponding assets. 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: September 30, 2021 2020 Construction in progress in Accounts Payable $ 22,685 $ 3,556 Accrued Compensation and Employee Benefits Accrued compensation and employee benefits included in Accrued Liabilities was $18.2 million and $32.5 million at September 30, 2021 and June 30, 2021, 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, stock-settled stock appreciation rights and performance units) 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, stock-settled stock appreciation rights and performance units. Basic and diluted net income per common share were calculated as follows: Three Months Ended 2021 2020 Net income $ 30,655 $ 37,079 Net income available to participating securities (87) (79) Net income available to common shareholders $ 30,568 $ 37,000 Weighted average common shares outstanding – basic 27,459 27,461 Incremental share effect from: Nonparticipating restricted stock 3 3 Stock-settled stock appreciation rights 49 31 Performance units 4 — Weighted average common shares outstanding – diluted 27,515 27,495 Net income per common share – basic and diluted $ 1.11 $ 1.35 Accumulated Other Comprehensive Loss The following table presents the amounts reclassified out of accumulated other comprehensive loss by component: Three Months Ended 2021 2020 Accumulated other comprehensive loss at beginning of period $ (8,253) $ (12,070) Defined Benefit Pension Plan Items: Amortization of unrecognized net loss 107 173 Postretirement Benefit Plan Items: Amortization of unrecognized net gain (7) (5) Amortization of prior service credit (45) (45) Total other comprehensive income, before tax 55 123 Total tax expense (13) (29) Other comprehensive income, net of tax 42 94 Accumulated other comprehensive loss at end of period $ (8,211) $ (11,976) Significant Accounting Policies There were no changes to our Significant Accounting Policies from those disclosed in our 2021 Annual Report on Form 10-K. Recent Accounting Standards There are no recently issued or adopted accounting standards that will impact our consolidated financial statements.

Fair Value

Fair Value	3 Months Ended
	Sep. 30, 2021
Fair Value Disclosures [Abstract]
Fair Value	Fair Value Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. GAAP sets forth a three-level fair value hierarchy, which prioritizes the inputs used in measuring fair value. The three levels are as follows: Level 1 – defined as observable inputs, such as quoted market prices in active markets. Level 2 – defined as inputs other than quoted prices in active markets that are either directly or indirectly observable. Level 3 – defined as unobservable inputs in which little or no market data exists, therefore, requiring an entity to develop its own assumptions. Our financial assets and liabilities subject to the three-level fair value hierarchy consist principally of cash and equivalents, accounts receivable, accounts payable, contingent consideration payable and defined benefit pension plan assets. The estimated fair value of cash and equivalents, accounts receivable and accounts payable approximates their carrying value. Our contingent consideration, which resulted from the earn-out associated with our acquisition of Bantam Bagels, LLC (“Bantam”), is measured at fair value on a recurring basis and is included in Other Noncurrent Liabilities on the Condensed Consolidated Balance Sheets. The following table summarizes our contingent consideration: Fair Value Measurements at September 30, 2021 Level 1 Level 2 Level 3 Total Contingent consideration - Bantam $ — $ — $ 3,470 $ 3,470 Fair Value Measurements at June 30, 2021 Level 1 Level 2 Level 3 Total Contingent consideration - Bantam $ — $ — $ 3,470 $ 3,470 Bantam Contingent Consideration This contingent consideration resulted from the earn-out associated with our October 19, 2018 acquisition of Bantam. In general, the terms of the acquisition specify the sellers will receive an earn-out based upon a pre-determined multiple of the defined adjusted EBITDA of Bantam for the twelve months ending December 31, 2023. The initial fair value of the contingent consideration was determined to be $8.0 million. The fair value is measured on a recurring basis using a Monte Carlo simulation that randomly changes revenue growth, forecasted adjusted EBITDA and other uncertain variables to estimate an expected value. We record the present value of this amount by applying a discount rate. As this fair value measurement is based on significant inputs not observable in the market, it represents a Level 3 measurement within the fair value hierarchy. Our fair value measurement at September 30, 2020 resulted in a $5.7 million reduction in the fair value of Bantam’s contingent consideration based on changes in Bantam’s forecasted adjusted EBITDA for the twelve months ending December 31, 2023. The changes in forecasted adjusted EBITDA primarily reflected the impact of a SKU rationalization by a Foodservice customer resulting in the loss of sales to that customer after November 30, 2020. This adjustment was recorded in our Foodservice segment. The following table represents our Level 3 fair value measurements using significant other unobservable inputs for Bantam’s contingent consideration: Three Months Ended 2021 2020 Contingent consideration at beginning of period $ 3,470 $ 9,157 Change in contingent consideration included in operating income — (5,687) Contingent consideration at end of period $ 3,470 $ 3,470

Long-Term Debt

Long-Term Debt	3 Months Ended
	Sep. 30, 2021
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term DebtAt September 30, 2021 and June 30, 2021, we had an unsecured credit facility (“Facility”) under which we could borrow, on a revolving credit basis, up to a maximum of $150 million at any one time, with potential to expand the total credit availability to $225 million based on consent of the issuing banks and certain other conditions. The Facility expires on March 19, 2025, and all outstanding amounts are then due and payable. Interest is variable based upon formulas tied to LIBOR or an alternate base rate defined in the Facility. In the event that LIBOR becomes unavailable or is no longer deemed an appropriate reference rate, the Facility allows for the use of a benchmark replacement rate. We must also pay facility fees that are tied to our then-applicable consolidated leverage ratio. Loans may be used for general corporate purposes. Due to the nature of its terms, when we have outstanding borrowings under the Facility, they will be classified as long-term debt. The Facility contains certain restrictive covenants, including limitations on indebtedness, asset sales and acquisitions. There are two principal financial covenants: an interest expense test that requires us to maintain an interest coverage ratio not less than 2.5 to 1 at the end of each fiscal quarter; and an indebtedness test that requires us to maintain a consolidated leverage ratio not greater than 3.5 to 1, subject to certain exceptions. The interest coverage ratio is calculated by dividing Consolidated EBIT by Consolidated Interest Expense, and the leverage ratio is calculated by dividing Consolidated Net Debt by Consolidated EBITDA. All financial terms used in the covenant calculations are defined more specifically in the Facility. At September 30, 2021 and June 30, 2021, we had no borrowings outstanding under the Facility. At September 30, 2021 and June 30, 2021, we had $2.8 million of standby letters of credit outstanding, which reduced the amount available for borrowing under the Facility. We paid no interest for the three months ended September 30, 2021 and 2020.

Commitments And Contingencies

Commitments And Contingencies	3 Months Ended
	Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments And Contingencies	Commitments and Contingencies At September 30, 2021, we were a party to various claims and litigation matters arising in the ordinary course of business. Such matters did not have a material effect on the current-year results of operations and, in our opinion, their ultimate disposition will not have a material effect on our consolidated financial statements. We have a significant remaining commitment of approximately $78 million related to a capacity expansion project at our dressing and sauce facility in Horse Cave, Kentucky. Our acquisition of Bantam included a provision for contingent consideration for the earn-out associated with this transaction. See further discussion in Note 2.

Goodwill And Other Intangible A

Goodwill And Other Intangible Assets	3 Months Ended
	Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill And Other Intangible Assets	Goodwill and Other Intangible Assets Goodwill attributable to the Retail and Foodservice segments was $157.4 million and $51.0 million, respectively, at September 30, 2021 and June 30, 2021. The following table summarizes our identifiable other intangible assets: September 30, June 30, Tradenames (20 to 30-year life) Gross carrying value $ 62,531 $ 62,531 Accumulated amortization (13,064) (12,421) Net carrying value $ 49,467 $ 50,110 Customer Relationships (2 to 15-year life) Gross carrying value $ 17,007 $ 17,507 Accumulated amortization (12,763) (12,912) Net carrying value $ 4,244 $ 4,595 Technology / Know-how (10-year life) Gross carrying value $ 8,020 $ 8,020 Accumulated amortization (4,111) (3,973) Net carrying value $ 3,909 $ 4,047 Non-compete Agreements (5-year life) Gross carrying value $ 191 $ 191 Accumulated amortization (186) (177) Net carrying value $ 5 $ 14 Total net carrying value $ 57,625 $ 58,766 In the three months ended September 30, 2020, we recorded impairment charges of $1.2 million related to certain tradename and technology / know-how intangible assets for Bantam, which reflect the impact of a SKU rationalization by a Foodservice customer resulting in the loss of sales to that customer after November 30, 2020. The impairment charges represent the excess of the carrying value over the fair value of estimated discounted cash flows for the remaining useful lives of the intangible assets. The impairment charges are reflected in Impairment Charges in the Condensed Consolidated Statements of Income and were recorded in our Foodservice segment. We also reduced the remaining useful life for Bantam’s Foodservice customer relationship and have recorded accelerated amortization expense. Amortization expense for our other intangible assets, which is reflected in Selling, General and Administrative Expenses, was as follows: Three Months Ended 2021 2020 Amortization expense $ 1,141 $ 1,341 Total annual amortization expense for each of the next five years is estimated to be as follows: 2023 $ 4,180 2024 $ 4,180 2025 $ 3,920 2026 $ 3,290 2027 $ 3,119

Income Taxes

Income Taxes	3 Months Ended
	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesAccrued federal income taxes of $2.3 million and accrued state and local income taxes of $0.6 million were included in Accrued Liabilities at September 30, 2021. Prepaid federal income taxes of $5.1 million and prepaid state and local income taxes of $1.1 million were included in Other Current Assets at June 30, 2021.

Business Segment Information

Business Segment Information	3 Months Ended
	Sep. 30, 2021
Segment Reporting [Abstract]
Business Segment Information	Business Segment Information Our financial results are presented as two reportable segments: Retail and Foodservice. Costs that are directly attributable to either Retail or Foodservice are charged directly to the appropriate segment. Costs that are deemed to be indirect, excluding corporate expenses and other unusual significant transactions, are allocated to the two reportable segments using a reasonable methodology that is consistently applied. Retail - The vast majority of the products we sell in the Retail segment are sold through sales personnel, food brokers and distributors in the United States. We have placement of products in grocery produce departments through our refrigerated salad dressings, vegetable dips and fruit dips. Our flatbread products and sprouted grain bakery products are generally placed in the specialty bakery/deli section of the grocery store. We also have products typically marketed in the shelf-stable section of the grocery store, which include salad dressings, slaw dressing, sauces and croutons. Within the frozen food section of the grocery store, we sell yeast rolls, garlic breads and mini stuffed bagels. Foodservice - The vast majority of the products we sell in the Foodservice segment are sold through sales personnel, food brokers and distributors in the United States. Most of the products we sell in the Foodservice segment are custom-formulated and include salad dressings, sandwich and dipping sauces, frozen breads and yeast rolls. The majority of our Foodservice sales are products sold under private label to restaurants. We also manufacture and sell various branded Foodservice products to distributors. Finally, within this segment, we sold other roll products under a temporary supply agreement resulting from the acquisition of Omni Baking Company LLC. The temporary supply agreement was terminated effective October 31, 2020. As many of our products are similar between our two segments, our procurement, manufacturing, warehousing and distribution activities are substantially integrated across our operations in order to maximize efficiency and productivity. Consequently, we do not prepare, and our Chief Operating Decision Maker does not review, separate balance sheets for the reportable segments. As such, our external reporting does not include the presentation of identifiable assets by reportable segment. The composition of our identifiable assets at September 30, 2021 is generally consistent with that of June 30, 2021. We evaluate our Retail and Foodservice segments based on net sales and operating income which follow: Three Months Ended 2021 2020 Net Sales Retail $ 223,889 $ 193,725 Foodservice 168,167 155,512 Total $ 392,056 $ 349,237 Operating Income Retail $ 48,178 $ 42,658 Foodservice 15,825 27,421 Corporate Expenses (23,492) (21,131) Total $ 40,511 $ 48,948 The following table sets forth net sales disaggregated by class of similar products for the Retail and Foodservice segments: Three Months Ended 2021 2020 Retail Shelf-stable dressings, sauces and croutons $ 90,527 $ 58,944 Frozen breads 74,719 72,843 Refrigerated dressings, dips and other 58,643 61,938 Total Retail net sales $ 223,889 $ 193,725 Foodservice Dressings and sauces $ 124,759 $ 114,951 Frozen breads and other 43,408 37,792 Other roll products — 2,769 Total Foodservice net sales $ 168,167 $ 155,512 Total net sales $ 392,056 $ 349,237 The following table provides an additional disaggregation of Foodservice net sales by type of customer: Three Months Ended 2021 2020 Foodservice National accounts $ 126,128 $ 118,078 Branded and other 42,039 34,665 Other roll products — 2,769 Total Foodservice net sales $ 168,167 $ 155,512

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Sep. 30, 2021
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation There have been no changes to our stock-based compensation plan as disclosed in our 2021 Annual Report on Form 10-K. However, as permitted under this plan, we made an initial grant of performance units in August 2021. These performance units have either a market condition or a performance condition and will vest 3 years after the grant date. Dividend equivalents earned during the vesting period will be paid at the time the awards vest. Our stock-settled stock appreciation rights (“SSSARs”) compensation expense was $1.0 million and $0.9 million for the three months ended September 30, 2021 and 2020, respectively. At September 30, 2021, there was $5.7 million of unrecognized compensation expense related to SSSARs that we will recognize over a weighted-average period of 2 years. Our restricted stock compensation expense was $1.1 million and $0.9 million for the three months ended September 30, 2021 and 2020, respectively. At September 30, 2021, there was $8.9 million of unrecognized compensation expense related to restricted stock that we will recognize over a weighted-average period of 2 years. Our performance units compensation expense was $0.2 million for the three months ended September 30, 2021. At September 30, 2021, there was $3.5 million of unrecognized compensation expense related to performance units that we will recognize over a weighted-average period of 3 years.

Summary Of Significant Accoun_2

Summary Of Significant Accounting Policies (Policy)	3 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Basis Of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Lancaster Colony Corporation and our wholly-owned subsidiaries, collectively referred to as “we,” “us,” “our,” “registrant” or the “Company” and 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. Intercompany transactions and accounts have been eliminated in consolidation. The results of operations for any interim period are not necessarily indicative of results for the full year. Accordingly, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in our 2021 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, 2022 refers to fiscal 2022, which is the period from July 1, 2021 to June 30, 2022.
Deferred Software Costs	Deferred Software CostsWe capitalize certain costs related to hosting arrangements that are service contracts (cloud computing arrangements). Capitalized costs are included in Other Current Assets or Other Noncurrent Assets and are amortized on a straight-line basis over the estimated useful life.
Property, Plant And Equipment	Property, Plant and EquipmentProperty, plant and equipment are recorded at cost, except for those acquired as part of a business combination, which are recorded at fair value at the time of purchase. We use the straight-line method of computing depreciation for financial reporting purposes based on the estimated useful lives of the corresponding assets.
Earnings Per Share	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, stock-settled stock appreciation rights and performance units) 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, stock-settled stock appreciation rights and performance units.
Recent Accounting Standards	Recent Accounting Standards There are no recently issued or adopted accounting standards that will impact our consolidated financial statements.

Summary Of Significant Accoun_3

Summary Of Significant Accounting Policies (Tables)	3 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Schedule Of Construction In Progress In Accounts Payable	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: September 30, 2021 2020 Construction in progress in Accounts Payable $ 22,685 $ 3,556
Schedule Of Basic And Diluted Net Income Per Common Share Calculations	Basic and diluted net income per common share were calculated as follows: Three Months Ended 2021 2020 Net income $ 30,655 $ 37,079 Net income available to participating securities (87) (79) Net income available to common shareholders $ 30,568 $ 37,000 Weighted average common shares outstanding – basic 27,459 27,461 Incremental share effect from: Nonparticipating restricted stock 3 3 Stock-settled stock appreciation rights 49 31 Performance units 4 — Weighted average common shares outstanding – diluted 27,515 27,495 Net income per common share – basic and diluted $ 1.11 $ 1.35
Schedule Of Amounts Reclassified Out Of Accumulated Other Comprehensive Loss	The following table presents the amounts reclassified out of accumulated other comprehensive loss by component: Three Months Ended 2021 2020 Accumulated other comprehensive loss at beginning of period $ (8,253) $ (12,070) Defined Benefit Pension Plan Items: Amortization of unrecognized net loss 107 173 Postretirement Benefit Plan Items: Amortization of unrecognized net gain (7) (5) Amortization of prior service credit (45) (45) Total other comprehensive income, before tax 55 123 Total tax expense (13) (29) Other comprehensive income, net of tax 42 94 Accumulated other comprehensive loss at end of period $ (8,211) $ (11,976)

Fair Value (Tables)

Fair Value (Tables)	3 Months Ended
	Sep. 30, 2021
Business Acquisition [Line Items]
Schedule Of Contingent Consideration Measured At Fair Value On A Recurring Basis	Our contingent consideration, which resulted from the earn-out associated with our acquisition of Bantam Bagels, LLC (“Bantam”), is measured at fair value on a recurring basis and is included in Other Noncurrent Liabilities on the Condensed Consolidated Balance Sheets. The following table summarizes our contingent consideration: Fair Value Measurements at September 30, 2021 Level 1 Level 2 Level 3 Total Contingent consideration - Bantam $ — $ — $ 3,470 $ 3,470 Fair Value Measurements at June 30, 2021 Level 1 Level 2 Level 3 Total Contingent consideration - Bantam $ — $ — $ 3,470 $ 3,470
Bantam Bagels [Member]
Business Acquisition [Line Items]
Schedule Of Level 3 Fair Value Measurements Using Significant Other Unobservable Inputs For Contingent Consideration	The following table represents our Level 3 fair value measurements using significant other unobservable inputs for Bantam’s contingent consideration: Three Months Ended 2021 2020 Contingent consideration at beginning of period $ 3,470 $ 9,157 Change in contingent consideration included in operating income — (5,687) Contingent consideration at end of period $ 3,470 $ 3,470

Goodwill And Other Intangible_2

Goodwill And Other Intangible Assets (Tables)	3 Months Ended
	Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Summary Of Other Intangible Assets	The following table summarizes our identifiable other intangible assets: September 30, June 30, Tradenames (20 to 30-year life) Gross carrying value $ 62,531 $ 62,531 Accumulated amortization (13,064) (12,421) Net carrying value $ 49,467 $ 50,110 Customer Relationships (2 to 15-year life) Gross carrying value $ 17,007 $ 17,507 Accumulated amortization (12,763) (12,912) Net carrying value $ 4,244 $ 4,595 Technology / Know-how (10-year life) Gross carrying value $ 8,020 $ 8,020 Accumulated amortization (4,111) (3,973) Net carrying value $ 3,909 $ 4,047 Non-compete Agreements (5-year life) Gross carrying value $ 191 $ 191 Accumulated amortization (186) (177) Net carrying value $ 5 $ 14 Total net carrying value $ 57,625 $ 58,766
Schedule Of Amortization Expense	Amortization expense for our other intangible assets, which is reflected in Selling, General and Administrative Expenses, was as follows: Three Months Ended 2021 2020 Amortization expense $ 1,141 $ 1,341
Estimated Annual Amortization Expense	Total annual amortization expense for each of the next five years is estimated to be as follows: 2023 $ 4,180 2024 $ 4,180 2025 $ 3,920 2026 $ 3,290 2027 $ 3,119

Business Segment Information (T

Business Segment Information (Tables)	3 Months Ended
	Sep. 30, 2021
Segment Reporting [Abstract]
Summary Of Financial Information Attributable To Reportable Segments	We evaluate our Retail and Foodservice segments based on net sales and operating income which follow: Three Months Ended 2021 2020 Net Sales Retail $ 223,889 $ 193,725 Foodservice 168,167 155,512 Total $ 392,056 $ 349,237 Operating Income Retail $ 48,178 $ 42,658 Foodservice 15,825 27,421 Corporate Expenses (23,492) (21,131) Total $ 40,511 $ 48,948
Disaggregation Of Net Sales By Class Of Similar Products	The following table sets forth net sales disaggregated by class of similar products for the Retail and Foodservice segments: Three Months Ended 2021 2020 Retail Shelf-stable dressings, sauces and croutons $ 90,527 $ 58,944 Frozen breads 74,719 72,843 Refrigerated dressings, dips and other 58,643 61,938 Total Retail net sales $ 223,889 $ 193,725 Foodservice Dressings and sauces $ 124,759 $ 114,951 Frozen breads and other 43,408 37,792 Other roll products — 2,769 Total Foodservice net sales $ 168,167 $ 155,512 Total net sales $ 392,056 $ 349,237
Disaggregation Of Foodservice Net Sales By Type Of Customer	The following table provides an additional disaggregation of Foodservice net sales by type of customer: Three Months Ended 2021 2020 Foodservice National accounts $ 126,128 $ 118,078 Branded and other 42,039 34,665 Other roll products — 2,769 Total Foodservice net sales $ 168,167 $ 155,512

Summary Of Significant Accoun_4

Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2021
Accounting Policies [Abstract]
Amount capitalized for deferred software costs related to cloud computing arrangements	$ 0.3	$ 1.6
Accrued compensation and employee benefits	$ 18.2		$ 32.5

Summary Of Significant Accoun_5

Summary Of Significant Accounting Policies (Schedule Of Construction In Progress In Accounts Payable) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Accounting Policies [Abstract]
Construction in progress in Accounts Payable	$ 22,685	$ 3,556

Summary Of Significant Accoun_6

Summary Of Significant Accounting Policies (Schedule Of Basic And Diluted Net Income Per Common Share Calculations) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Accounting Policies [Abstract]
Net income	$ 30,655	$ 37,079
Net income available to participating securities	(87)	(79)
Net income available to common shareholders	$ 30,568	$ 37,000
Weighted average common shares outstanding - basic (in shares)	27,459	27,461
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Incremental share effect from stock-settled stock appreciation rights (in shares)	49	31
Diluted (in shares)	27,515	27,495
Net income per common share - basic and diluted (in dollars per share)	$ 1.11	$ 1.35
Nonparticipating restricted stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Incremental share effect from awards with forfeitable dividends (in shares)	3	3
Performance units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Incremental share effect from awards with forfeitable dividends (in shares)	4	0

Summary Of Significant Accoun_7

Summary Of Significant Accounting Policies (Schedule Of Amounts Reclassified Out Of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Accumulated other comprehensive loss at beginning of period	$ (8,253)	$ (12,070)
Total other comprehensive income, before tax	55	123
Total tax expense	(13)	(29)
Other comprehensive income, net of tax	42	94
Accumulated other comprehensive loss at end of period	(8,211)	(11,976)
Defined Benefit Pension Plan [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amortization of unrecognized net (gain) loss	107	173
Postretirement Benefit Plan [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amortization of unrecognized net (gain) loss	(7)	(5)
Amortization of prior service credit	$ (45)	$ (45)

Fair Value (Narrative) (Details

Fair Value (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2021	Oct. 19, 2018
Business Acquisition [Line Items]
Decrease in the fair value of contingent consideration	$ 0	$ 5,687
Bantam Bagels [Member]
Business Acquisition [Line Items]
Fair value of contingent consideration	3,470		$ 3,470	$ 8,000
Decrease in the fair value of contingent consideration	$ 0	$ 5,687

Fair Value (Schedule Of Conting

Fair Value (Schedule Of Contingent Consideration Measured At Fair Value On A Recurring Basis) (Details) - Bantam Bagels [Member] - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2021	Oct. 19, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration	$ 3,470	$ 3,470	$ 8,000
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration	0	0
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration	0	0
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration	$ 3,470	$ 3,470

Fair Value (Schedule Of Level 3

Fair Value (Schedule Of Level 3 Fair Value Measurements Using Significant Other Unobservable Inputs For Contingent Consideration) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Business Acquisition [Line Items]
Change in contingent consideration included in operating income	$ 0	$ (5,687)
Bantam Bagels [Member]
Business Acquisition [Line Items]
Contingent consideration at beginning of period	3,470	9,157
Change in contingent consideration included in operating income	0	(5,687)
Contingent consideration at end of period	$ 3,470	$ 3,470

Long-Term Debt (Narrative) (Det

Long-Term Debt (Narrative) (Details) - USD ($)	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2021
Debt Disclosure [Abstract]
Maximum borrowing capacity	$ 150,000,000		$ 150,000,000
Maximum borrowing capacity on obtaining consent of the issuing bank	$ 225,000,000		225,000,000
Line of credit facility, expiration date	Mar. 19, 2025
Minimum interest coverage ratio	250.00%
Maximum leverage ratio	350.00%
Line of credit facility, amount outstanding	$ 0		0
Standby letters of credit, amount outstanding	2,800,000		$ 2,800,000
Interest paid	$ 0	$ 0

Commitments And Contingencies (

Commitments And Contingencies (Narrative) (Details) $ in Millions	Sep. 30, 2021USD ($)
Commitments and Contingencies Disclosure [Abstract]
Commitment related to a capacity expansion project	$ 78

Goodwill And Other Intangible_3

Goodwill And Other Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2021
Goodwill [Line Items]
Goodwill	$ 208,371		$ 208,371
Impairment of intangible assets	0	$ 1,195
Retail [Member]
Goodwill [Line Items]
Goodwill	157,400		157,400
Foodservice [Member]
Goodwill [Line Items]
Goodwill	$ 51,000		$ 51,000

Goodwill And Other Intangible_4

Goodwill And Other Intangible Assets (Summary Of Other Intangible Assets) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2021	Jun. 30, 2021
Finite-Lived Intangible Assets [Line Items]
Net carrying value	$ 57,625	$ 58,766
Tradenames (20 to 30-year life) [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying value	62,531	62,531
Accumulated amortization	(13,064)	(12,421)
Net carrying value	49,467	50,110
Customer Relationships (2 to 15-year life) [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying value	17,007	17,507
Accumulated amortization	(12,763)	(12,912)
Net carrying value	4,244	4,595
Technology / Know-how (10-year life) [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying value	8,020	8,020
Accumulated amortization	(4,111)	(3,973)
Net carrying value	$ 3,909	4,047
Finite-lived other intangible assets useful life (in years)	10 years
Non-compete Agreements (5-year life) [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying value	$ 191	191
Accumulated amortization	(186)	(177)
Net carrying value	$ 5	$ 14
Finite-lived other intangible assets useful life (in years)	5 years
Minimum [Member] | Tradenames (20 to 30-year life) [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived other intangible assets useful life (in years)	20 years
Minimum [Member] | Customer Relationships (2 to 15-year life) [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived other intangible assets useful life (in years)	2 years
Maximum [Member] | Tradenames (20 to 30-year life) [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived other intangible assets useful life (in years)	30 years
Maximum [Member] | Customer Relationships (2 to 15-year life) [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived other intangible assets useful life (in years)	15 years

Goodwill And Other Intangible_5

Goodwill And Other Intangible Assets (Schedule Of Amortization Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 1,141	$ 1,341

Goodwill And Other Intangible_6

Goodwill And Other Intangible Assets (Estimated Annual Amortization Expense) (Details) $ in Thousands	Sep. 30, 2021USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2023	$ 4,180
2024	4,180
2025	3,920
2026	3,290
2027	$ 3,119

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details) - USD ($) $ in Millions	Sep. 30, 2021	Jun. 30, 2021
Federal [Member]
Income Tax Authority [Line Items]
Accrued income taxes	$ 2.3
Prepaid income taxes		$ 5.1
State and Local [Member]
Income Tax Authority [Line Items]
Accrued income taxes	$ 0.6
Prepaid income taxes		$ 1.1

Business Segment Information (S

Business Segment Information (Summary Of Financial Information Attributable To Reportable Segments) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Segment Reporting Information [Line Items]
Net Sales	$ 392,056	$ 349,237
Operating Income	40,511	48,948
Retail [Member]
Segment Reporting Information [Line Items]
Net Sales	223,889	193,725
Operating Income	48,178	42,658
Foodservice [Member]
Segment Reporting Information [Line Items]
Net Sales	168,167	155,512
Operating Income	15,825	27,421
Corporate [Member]
Segment Reporting Information [Line Items]
Operating Income	$ (23,492)	$ (21,131)

Business Segment Information (D

Business Segment Information (Disaggregation Of Net Sales By Class Of Similar Products) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Total net sales	$ 392,056	$ 349,237
Retail [Member]
Disaggregation of Revenue [Line Items]
Total net sales	223,889	193,725
Foodservice [Member]
Disaggregation of Revenue [Line Items]
Total net sales	168,167	155,512
Shelf-stable dressings, sauces and croutons [Member] | Retail [Member]
Disaggregation of Revenue [Line Items]
Total net sales	90,527	58,944
Frozen breads [Member] | Retail [Member]
Disaggregation of Revenue [Line Items]
Total net sales	74,719	72,843
Refrigerated dressings, dips and other [Member] | Retail [Member]
Disaggregation of Revenue [Line Items]
Total net sales	58,643	61,938
Dressings and sauces [Member] | Foodservice [Member]
Disaggregation of Revenue [Line Items]
Total net sales	124,759	114,951
Frozen breads and other [Member] | Foodservice [Member]
Disaggregation of Revenue [Line Items]
Total net sales	43,408	37,792
Other roll products [Member] | Foodservice [Member]
Disaggregation of Revenue [Line Items]
Total net sales	$ 0	$ 2,769

Business Segment Information _2

Business Segment Information (Disaggregation Of Foodservice Net Sales By Type Of Customer) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Total net sales	$ 392,056	$ 349,237
Foodservice [Member]
Disaggregation of Revenue [Line Items]
Total net sales	168,167	155,512
Foodservice [Member] | National accounts [Member]
Disaggregation of Revenue [Line Items]
Total net sales	126,128	118,078
Foodservice [Member] | Branded and other [Member]
Disaggregation of Revenue [Line Items]
Total net sales	42,039	34,665
Foodservice [Member] | Other roll products [Member]
Disaggregation of Revenue [Line Items]
Total net sales	$ 0	$ 2,769

Stock-Based Compensation (Narra

Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Performance Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	3 years
Compensation expense	$ 0.2
Unrecognized compensation expense	$ 3.5
Weighted-average period over which remaining compensation expense will be recognized (in years)	3 years
Stock Settled Stock Appreciation Rights SARS [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 1	$ 0.9
Unrecognized compensation expense	$ 5.7
Weighted-average period over which remaining compensation expense will be recognized (in years)	2 years
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 1.1	$ 0.9
Unrecognized compensation expense	$ 8.9
Weighted-average period over which remaining compensation expense will be recognized (in years)	2 years