Lancaster Colony (LANC) 10-Q 1 Feb 24 2024 Q2 Quarterly report Financial data

Cover

Cover - shares shares in Thousands	6 Months Ended
	Dec. 31, 2023	Jan. 12, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 31, 2023
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		27,521
Amendment Flag	false
Document Fiscal Period Focus	Q2
Entity Central Index Key	0000057515
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--06-30

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Current Assets:
Cash and equivalents	$ 133,848	$ 88,473
Receivables	100,188	114,967
Inventories:
Raw materials	47,336	40,761
Finished goods	110,856	117,504
Total inventories	158,192	158,265
Other current assets	13,171	12,758
Total current assets	405,399	374,463
Property, Plant and Equipment:
Property, plant and equipment-gross	879,747	853,709
Less accumulated depreciation	389,356	371,503
Property, plant and equipment-net	490,391	482,206
Other Assets:
Goodwill	208,371	208,371
Other intangible assets-net	4,576	4,840
Operating lease right-of-use assets	20,976	24,743
Other noncurrent assets	19,212	18,371
Total	1,148,925	1,112,994
Current Liabilities:
Accounts payable	104,114	111,758
Accrued liabilities	59,262	56,994
Total current liabilities	163,376	168,752
Noncurrent Operating Lease Liabilities	13,323	16,967
Other Noncurrent Liabilities	15,723	17,683
Deferred Income Taxes	48,177	47,325
Commitments and Contingencies
Shareholders' Equity:
Preferred stock-authorized 3,050,000 shares; outstanding-none
Common stock-authorized 75,000,000 shares; outstanding-December-27,521,158 shares; June-27,527,550 shares	149,290	143,870
Retained earnings	1,551,143	1,503,963
Accumulated other comprehensive loss	(9,214)	(9,365)
Common stock in treasury, at cost	(782,893)	(776,201)
Total shareholders' equity	908,326	862,267
Total	$ 1,148,925	$ 1,112,994

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - shares	Dec. 31, 2023	Jun. 30, 2023
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	27,521,158	27,527,550

Condensed Consolidated Statemen

Condensed Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Income Statement [Abstract]
Net Sales	$ 485,916	$ 477,394	$ 947,488	$ 902,931
Cost of Sales	364,448	375,292	717,298	701,774
Gross Profit	121,468	102,102	230,190	201,157
Selling, General and Administrative Expenses	55,714	50,775	107,661	100,532
Operating Income	65,754	51,327	122,529	100,625
Other, Net	1,425	478	2,282	208
Income Before Income Taxes	67,179	51,805	124,811	100,833
Taxes Based on Income	15,695	11,832	29,376	23,268
Net Income	$ 51,484	$ 39,973	$ 95,435	$ 77,565
Net Income Per Common Share:
Basic (in dollars per share)	$ 1.87	$ 1.45	$ 3.47	$ 2.82
Diluted (in dollars per share)	$ 1.87	$ 1.45	$ 3.47	$ 2.81
Weighted Average Common Shares Outstanding:
Basic (in shares)	27,425	27,471	27,437	27,460
Diluted (in shares)	27,440	27,493	27,457	27,476

Condensed Consolidated Statem_2

Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Statement of Comprehensive Income [Abstract]
Net Income	$ 51,484	$ 39,973	$ 95,435	$ 77,565
Defined Benefit Pension and Postretirement Benefit Plans:
Amortization of loss, before tax	143	171	287	340
Amortization of prior service credit, before tax	(45)	(46)	(90)	(91)
Total Other Comprehensive Income, Before Tax	98	125	197	249
Tax Attributes of Items in Other Comprehensive Income:
Amortization of loss, tax	(33)	(40)	(67)	(80)
Amortization of prior service credit, tax	10	10	21	21
Total Tax Expense	(23)	(30)	(46)	(59)
Other Comprehensive Income, Net of Tax	75	95	151	190
Comprehensive Income	$ 51,559	$ 40,068	$ 95,586	$ 77,755

Condensed Consolidated Statem_3

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Cash Flows From Operating Activities:
Net income	$ 95,435	$ 77,565
Impacts of noncash items:
Depreciation and amortization	27,525	23,012
Deferred income taxes and other changes	2,272	1,854
Stock-based compensation expense	5,423	5,264
Pension plan activity	96	(330)
Changes in operating assets and liabilities:
Receivables	14,779	8,577
Inventories	73	5,289
Other current assets	(413)	(517)
Accounts payable and accrued liabilities	(3,667)	19,726
Net cash provided by operating activities	141,523	140,440
Cash Flows From Investing Activities:
Payments for property additions	(37,136)	(56,486)
Proceeds from sale of property	0	1,159
Other-net	(3,080)	(449)
Net cash used in investing activities	(40,216)	(55,776)
Cash Flows From Financing Activities:
Payment of dividends	(48,255)	(45,529)
Purchase of treasury stock	(6,692)	(209)
Tax withholdings for stock-based compensation	(3)	(2,418)
Principal payments for finance leases	(982)	(1,304)
Net cash used in financing activities	(55,932)	(49,460)
Net change in cash and equivalents	45,375	35,204
Cash and equivalents at beginning of year	88,473	60,283
Cash and equivalents at end of period	133,848	95,487
Supplemental Disclosure of Operating Cash Flows:
Net cash payments for income taxes	$ 14,278	$ 22,977

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, 2022		27,520,000
Balance at Jun. 30, 2022	$ 844,687	$ 137,814	$ 1,485,045	$ (11,172)	$ (767,000)
Net income	37,592		37,592
Net pension and postretirement benefit gains, net of tax effect	95			95
Cash dividends - common stock	(22,067)		(22,067)
Purchase of treasury stock (in shares)		0
Purchase of treasury stock	(84)				(84)
Stock-based plans (in shares)		34,000
Stock-based plans	(617)	$ (617)
Stock-based compensation expense	2,465	$ 2,465
Balance (in shares) at Sep. 30, 2022		27,554,000
Balance at Sep. 30, 2022	862,071	$ 139,662	1,500,570	(11,077)	(767,084)
Balance (in shares) at Jun. 30, 2022		27,520,000
Balance at Jun. 30, 2022	844,687	$ 137,814	1,485,045	(11,172)	(767,000)
Net income	77,565
Net pension and postretirement benefit gains, net of tax effect	190
Balance (in shares) at Dec. 31, 2022		27,571,000
Balance at Dec. 31, 2022	879,550	$ 140,660	1,517,081	(10,982)	(767,209)
Balance (in shares) at Sep. 30, 2022		27,554,000
Balance at Sep. 30, 2022	862,071	$ 139,662	1,500,570	(11,077)	(767,084)
Net income	39,973		39,973
Net pension and postretirement benefit gains, net of tax effect	95			95
Cash dividends - common stock	(23,462)		(23,462)
Purchase of treasury stock (in shares)		(1,000)
Purchase of treasury stock	(125)				(125)
Stock-based plans (in shares)		18,000
Stock-based plans	(1,801)	$ (1,801)
Stock-based compensation expense	2,799	$ 2,799
Balance (in shares) at Dec. 31, 2022		27,571,000
Balance at Dec. 31, 2022	$ 879,550	$ 140,660	1,517,081	(10,982)	(767,209)
Balance (in shares) at Jun. 30, 2023	27,527,550	27,528,000
Balance at Jun. 30, 2023	$ 862,267	$ 143,870	1,503,963	(9,365)	(776,201)
Net income	43,951		43,951
Net pension and postretirement benefit gains, net of tax effect	76			76
Cash dividends - common stock	(23,445)		(23,445)
Purchase of treasury stock (in shares)		(40,000)
Purchase of treasury stock	(6,650)				(6,650)
Stock-based plans (in shares)		29,000
Stock-based plans	0	$ 0
Stock-based compensation expense	2,569	$ 2,569
Balance (in shares) at Sep. 30, 2023		27,517,000
Balance at Sep. 30, 2023	$ 878,768	$ 146,439	1,524,469	(9,289)	(782,851)
Balance (in shares) at Jun. 30, 2023	27,527,550	27,528,000
Balance at Jun. 30, 2023	$ 862,267	$ 143,870	1,503,963	(9,365)	(776,201)
Net income	95,435
Net pension and postretirement benefit gains, net of tax effect	$ 151
Balance (in shares) at Dec. 31, 2023	27,521,158	27,521,000
Balance at Dec. 31, 2023	$ 908,326	$ 149,290	1,551,143	(9,214)	(782,893)
Balance (in shares) at Sep. 30, 2023		27,517,000
Balance at Sep. 30, 2023	878,768	$ 146,439	1,524,469	(9,289)	(782,851)
Net income	51,484		51,484
Net pension and postretirement benefit gains, net of tax effect	75			75
Cash dividends - common stock	(24,810)		(24,810)
Purchase of treasury stock (in shares)		0
Purchase of treasury stock	(42)				(42)
Stock-based plans (in shares)		4,000
Stock-based plans	(3)	$ (3)
Stock-based compensation expense	$ 2,854	$ 2,854
Balance (in shares) at Dec. 31, 2023	27,521,158	27,521,000
Balance at Dec. 31, 2023	$ 908,326	$ 149,290	$ 1,551,143	$ (9,214)	$ (782,893)

Condensed Consolidated Statem_5

Condensed Consolidated Statements Of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022
Statement of Stockholders' Equity [Abstract]
Tax effect included in net pension and postretirement benefit gains	$ 23	$ 23	$ 30	$ 29
Common stock, dividends per share (in dollars per share)	$ 0.90	$ 0.85	$ 0.85	$ 0.80

Summary Of Significant Accounti

Summary Of Significant Accounting Policies	6 Months Ended
	Dec. 31, 2023
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 2023 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, 2024 refers to fiscal 2024, which is the period from July 1, 2023 to June 30, 2024. 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: December 31, 2023 2022 Construction in progress in Accounts Payable $ 6,408 $ 15,062 Accrued Compensation and Employee Benefits Accrued compensation and employee benefits included in Accrued Liabilities was $20.1 million and $26.3 million at December 31, 2023 and June 30, 2023, 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 Six Months Ended 2023 2022 2023 2022 Net income $ 51,484 $ 39,973 $ 95,435 $ 77,565 Net income available to participating securities (157) (118) (292) (232) Net income available to common shareholders $ 51,327 $ 39,855 $ 95,143 $ 77,333 Weighted average common shares outstanding – basic 27,425 27,471 27,437 27,460 Incremental share effect from: Nonparticipating restricted stock 3 2 3 3 Stock-settled stock appreciation rights (1) 7 18 9 9 Performance units 5 2 8 4 Weighted average common shares outstanding – diluted 27,440 27,493 27,457 27,476 Net income per common share – basic $ 1.87 $ 1.45 $ 3.47 $ 2.82 Net income per common share – diluted $ 1.87 $ 1.45 $ 3.47 $ 2.81 (1) Excludes the impact of the following weighted average stock-settled stock appreciation rights outstanding with an antidilutive effect: 0.1 million for the three months ended December 31, 2023 and 2022; and 0.1 million and 0.2 million for the six months ended December 31, 2023 and 2022, respectively. Accumulated Other Comprehensive Loss The following table presents the amounts reclassified out of accumulated other comprehensive loss by component: Three Months Ended Six Months Ended 2023 2022 2023 2022 Accumulated other comprehensive loss at beginning of period $ (9,289) $ (11,077) $ (9,365) $ (11,172) Defined Benefit Pension Plan Items: Amortization of unrecognized net loss 158 182 317 363 Postretirement Benefit Plan Items: Amortization of unrecognized net gain (15) (11) (30) (23) Amortization of prior service credit (45) (46) (90) (91) Total other comprehensive income, before tax 98 125 197 249 Total tax expense (23) (30) (46) (59) Other comprehensive income, net of tax 75 95 151 190 Accumulated other comprehensive loss at end of period $ (9,214) $ (10,982) $ (9,214) $ (10,982) Significant Accounting Policies There were no changes to our Significant Accounting Policies from those disclosed in our 2023 Annual Report on Form 10-K. Recent Accounting Standards In November 2023, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance related to the disclosure requirements for reportable segments. The new guidance requires enhanced disclosures about significant segment expenses. Additionally, all current annual disclosures about a reportable segment’s profit or loss and assets will also be required in interim periods. The new guidance also requires disclosure of the title and position of the Chief Operating Decision Maker (“CODM”) and explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. The amendments should be applied retrospectively to all prior periods presented in the financial statements. This guidance will be effective for our annual disclosures in fiscal 2025 and for our interim-period disclosures in fiscal 2026. As the guidance only relates to disclosures, there will be no impact on our financial position or results of operations. In December 2023, the FASB issued new accounting guidance related to the disclosure requirements for income taxes. The new guidance requires annual disclosures in the rate reconciliation table to be presented using both percentages and reporting currency amounts, and this table must include disclosure of specific categories. Additional information will also be required for reconciling items that meet a quantitative threshold. The new guidance also requires enhanced disclosures of income taxes paid, including the amount of income taxes paid disaggregated by federal, state and foreign taxes and the amount of income taxes paid disaggregated by individual jurisdictions that exceed a quantitative threshold. The amendments should be applied on a prospective basis, but retrospective application is permitted. This guidance will be effective for our annual disclosures in fiscal 2026. As the guidance only relates to disclosures, there will be no impact on our financial position or results of operations.

Long-Term Debt

Long-Term Debt	6 Months Ended
	Dec. 31, 2023
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt At December 31, 2023 and June 30, 2023, 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 SOFR or an alternate base rate defined in the Facility. 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 December 31, 2023 and June 30, 2023, we had no borrowings outstanding under the Facility. At December 31, 2023 and June 30, 2023, we had $2.2 million and $2.8 million, respectively, of standby letters of credit outstanding, which reduced the amount available for borrowing under the Facility. We paid no interest for the three and six months ended December 31, 2023 and 2022.

Commitments And Contingencies

Commitments And Contingencies	6 Months Ended
	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments And Contingencies	Commitments and Contingencies At December 31, 2023, 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 is not expected to have a material effect on our consolidated financial statements. We have a lease commitment with fixed cash payments totaling $42.8 million for a warehouse lease that had not commenced as of December 31, 2023. In accordance with accounting guidance for leases, this commitment is properly excluded from the Condensed Consolidated Balance Sheet as of December 31, 2023. A right-of-use asset and lease liability will be recorded based on the present value of the lease payments when the lease commences.

Goodwill And Other Intangible A

Goodwill And Other Intangible Assets	6 Months Ended
	Dec. 31, 2023
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 December 31, 2023 and June 30, 2023. The following table summarizes our identifiable other intangible assets: December 31, June 30, Tradenames (20 to 30-year life) Gross carrying value $ 4,100 $ 4,100 Accumulated amortization (307) (181) Net carrying value $ 3,793 $ 3,919 Customer Relationships (10-year life) Gross carrying value $ 287 $ 287 Accumulated amortization (205) (190) Net carrying value $ 82 $ 97 Technology / Know-how (10-year life) Gross carrying value $ 2,450 $ 2,450 Accumulated amortization (1,749) (1,626) Net carrying value $ 701 $ 824 Total net carrying value $ 4,576 $ 4,840 Amortization expense for our other intangible assets, which is reflected in Selling, General and Administrative Expenses, was as follows: Three Months Ended Six Months Ended 2023 2022 2023 2022 Amortization expense $ 132 $ 628 $ 264 $ 1,257 Total annual amortization expense for each of the next five years is estimated to be as follows: 2025 $ 527 2026 $ 527 2027 $ 343 2028 $ 251 2029 $ 251

Income Taxes

Income Taxes	6 Months Ended
	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Accrued federal income taxes of $9.0 million and accrued state and local income taxes of $1.2 million were included in Accrued Liabilities at December 31, 2023. Prepaid federal income taxes of $3.3 million and prepaid state and local income taxes of $0.8 million were included in Other Current Assets at June 30, 2023.

Business Segment Information

Business Segment Information	6 Months Ended
	Dec. 31, 2023
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 and garlic breads. 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 national chain restaurant accounts. We also manufacture and sell various branded Foodservice products to distributors. 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 December 31, 2023 is generally consistent with that of June 30, 2023. We evaluate our Retail and Foodservice segments based on net sales and operating income which follow: Three Months Ended Six Months Ended 2023 2022 2023 2022 Net Sales Retail $ 263,992 $ 258,763 $ 506,176 $ 481,979 Foodservice 221,924 218,631 441,312 420,952 Total $ 485,916 $ 477,394 $ 947,488 $ 902,931 Operating Income Retail $ 59,521 $ 49,352 $ 112,645 $ 92,252 Foodservice 27,145 26,696 53,778 58,625 Corporate Expenses (20,912) (24,721) (43,894) (50,252) Total $ 65,754 $ 51,327 $ 122,529 $ 100,625 The following table sets forth net sales disaggregated by class of similar products for the Retail and Foodservice segments: Three Months Ended Six Months Ended 2023 2022 2023 2022 Retail Shelf-stable dressings, sauces and croutons $ 95,168 $ 94,711 $ 193,749 $ 185,749 Frozen breads 121,696 117,424 201,326 190,282 Refrigerated dressings, dips and other 47,128 46,628 111,101 105,948 Total Retail net sales $ 263,992 $ 258,763 $ 506,176 $ 481,979 Foodservice Dressings and sauces $ 162,730 $ 160,855 $ 328,001 $ 311,915 Frozen breads and other 59,194 57,776 113,311 109,037 Total Foodservice net sales $ 221,924 $ 218,631 $ 441,312 $ 420,952 Total net sales $ 485,916 $ 477,394 $ 947,488 $ 902,931 The following table provides an additional disaggregation of Foodservice net sales by type of customer: Three Months Ended Six Months Ended 2023 2022 2023 2022 Foodservice National accounts $ 170,884 $ 171,814 $ 342,470 $ 332,006 Branded and other 51,040 46,817 98,842 88,946 Total Foodservice net sales $ 221,924 $ 218,631 $ 441,312 $ 420,952

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Dec. 31, 2023
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 2023 Annual Report on Form 10-K. Our stock-settled stock appreciation rights (“SSSARs”) compensation expense was $0.3 million and $0.7 million for the three months ended December 31, 2023 and 2022, respectively. Year-to-date SSSARs compensation expense was $0.6 million for the current-year period compared to $1.4 million for the prior-year period. At December 31, 2023, there was $0.2 million of unrecognized compensation expense related to SSSARs that we will recognize over the three months ending March 31, 2024. Our restricted stock compensation expense was $1.5 million for the three months ended December 31, 2023 and 2022. Year-to-date restricted stock compensation expense was $2.7 million for the current-year period compared to $2.8 million for the prior-year period. At December 31, 2023, there was $8.2 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 $1.0 million and $0.6 million for the three months ended December 31, 2023 and 2022, respectively. Year-to-date performance units compensation expense was $2.1 million for the current-year period compared to $1.1 million for the prior-year period. At December 31, 2023, there was $6.5 million of unrecognized compensation expense related to performance units that we will recognize over a weighted-average period of 2 years.

Summary Of Significant Accoun_2

Summary Of Significant Accounting Policies (Policy)	6 Months Ended
	Dec. 31, 2023
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 2023 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, 2024 refers to fiscal 2024, which is the period from July 1, 2023 to June 30, 2024.
Property, Plant And Equipment	Property, Plant and Equipment
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 In November 2023, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance related to the disclosure requirements for reportable segments. The new guidance requires enhanced disclosures about significant segment expenses. Additionally, all current annual disclosures about a reportable segment’s profit or loss and assets will also be required in interim periods. The new guidance also requires disclosure of the title and position of the Chief Operating Decision Maker (“CODM”) and explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. The amendments should be applied retrospectively to all prior periods presented in the financial statements. This guidance will be effective for our annual disclosures in fiscal 2025 and for our interim-period disclosures in fiscal 2026. As the guidance only relates to disclosures, there will be no impact on our financial position or results of operations. In December 2023, the FASB issued new accounting guidance related to the disclosure requirements for income taxes. The new guidance requires annual disclosures in the rate reconciliation table to be presented using both percentages and reporting currency amounts, and this table must include disclosure of specific categories. Additional information will also be required for reconciling items that meet a quantitative threshold. The new guidance also requires enhanced disclosures of income taxes paid, including the amount of income taxes paid disaggregated by federal, state and foreign taxes and the amount of income taxes paid disaggregated by individual jurisdictions that exceed a quantitative threshold. The amendments should be applied on a prospective basis, but retrospective application is permitted. This guidance will be effective for our annual disclosures in fiscal 2026. As the guidance only relates to disclosures, there will be no impact on our financial position or results of operations.

Summary Of Significant Accoun_3

Summary Of Significant Accounting Policies (Tables)	6 Months Ended
	Dec. 31, 2023
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: December 31, 2023 2022 Construction in progress in Accounts Payable $ 6,408 $ 15,062
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 Six Months Ended 2023 2022 2023 2022 Net income $ 51,484 $ 39,973 $ 95,435 $ 77,565 Net income available to participating securities (157) (118) (292) (232) Net income available to common shareholders $ 51,327 $ 39,855 $ 95,143 $ 77,333 Weighted average common shares outstanding – basic 27,425 27,471 27,437 27,460 Incremental share effect from: Nonparticipating restricted stock 3 2 3 3 Stock-settled stock appreciation rights (1) 7 18 9 9 Performance units 5 2 8 4 Weighted average common shares outstanding – diluted 27,440 27,493 27,457 27,476 Net income per common share – basic $ 1.87 $ 1.45 $ 3.47 $ 2.82 Net income per common share – diluted $ 1.87 $ 1.45 $ 3.47 $ 2.81 (1) Excludes the impact of the following weighted average stock-settled stock appreciation rights outstanding with an antidilutive effect: 0.1 million for the three months ended December 31, 2023 and 2022; and 0.1 million and 0.2 million for the six months ended December 31, 2023 and 2022, respectively.
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 Six Months Ended 2023 2022 2023 2022 Accumulated other comprehensive loss at beginning of period $ (9,289) $ (11,077) $ (9,365) $ (11,172) Defined Benefit Pension Plan Items: Amortization of unrecognized net loss 158 182 317 363 Postretirement Benefit Plan Items: Amortization of unrecognized net gain (15) (11) (30) (23) Amortization of prior service credit (45) (46) (90) (91) Total other comprehensive income, before tax 98 125 197 249 Total tax expense (23) (30) (46) (59) Other comprehensive income, net of tax 75 95 151 190 Accumulated other comprehensive loss at end of period $ (9,214) $ (10,982) $ (9,214) $ (10,982)

Goodwill And Other Intangible_2

Goodwill And Other Intangible Assets (Tables)	6 Months Ended
	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Summary Of Other Intangible Assets	The following table summarizes our identifiable other intangible assets: December 31, June 30, Tradenames (20 to 30-year life) Gross carrying value $ 4,100 $ 4,100 Accumulated amortization (307) (181) Net carrying value $ 3,793 $ 3,919 Customer Relationships (10-year life) Gross carrying value $ 287 $ 287 Accumulated amortization (205) (190) Net carrying value $ 82 $ 97 Technology / Know-how (10-year life) Gross carrying value $ 2,450 $ 2,450 Accumulated amortization (1,749) (1,626) Net carrying value $ 701 $ 824 Total net carrying value $ 4,576 $ 4,840
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 Six Months Ended 2023 2022 2023 2022 Amortization expense $ 132 $ 628 $ 264 $ 1,257
Estimated Annual Amortization Expense	Total annual amortization expense for each of the next five years is estimated to be as follows: 2025 $ 527 2026 $ 527 2027 $ 343 2028 $ 251 2029 $ 251

Business Segment Information (T

Business Segment Information (Tables)	6 Months Ended
	Dec. 31, 2023
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 Six Months Ended 2023 2022 2023 2022 Net Sales Retail $ 263,992 $ 258,763 $ 506,176 $ 481,979 Foodservice 221,924 218,631 441,312 420,952 Total $ 485,916 $ 477,394 $ 947,488 $ 902,931 Operating Income Retail $ 59,521 $ 49,352 $ 112,645 $ 92,252 Foodservice 27,145 26,696 53,778 58,625 Corporate Expenses (20,912) (24,721) (43,894) (50,252) Total $ 65,754 $ 51,327 $ 122,529 $ 100,625
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 Six Months Ended 2023 2022 2023 2022 Retail Shelf-stable dressings, sauces and croutons $ 95,168 $ 94,711 $ 193,749 $ 185,749 Frozen breads 121,696 117,424 201,326 190,282 Refrigerated dressings, dips and other 47,128 46,628 111,101 105,948 Total Retail net sales $ 263,992 $ 258,763 $ 506,176 $ 481,979 Foodservice Dressings and sauces $ 162,730 $ 160,855 $ 328,001 $ 311,915 Frozen breads and other 59,194 57,776 113,311 109,037 Total Foodservice net sales $ 221,924 $ 218,631 $ 441,312 $ 420,952 Total net sales $ 485,916 $ 477,394 $ 947,488 $ 902,931
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 Six Months Ended 2023 2022 2023 2022 Foodservice National accounts $ 170,884 $ 171,814 $ 342,470 $ 332,006 Branded and other 51,040 46,817 98,842 88,946 Total Foodservice net sales $ 221,924 $ 218,631 $ 441,312 $ 420,952

Summary Of Significant Accoun_4

Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Millions	Dec. 31, 2023	Jun. 30, 2023
Accounting Policies [Abstract]
Accrued compensation and employee benefits	$ 20.1	$ 26.3

Summary Of Significant Accoun_5

Summary Of Significant Accounting Policies (Schedule Of Construction In Progress In Accounts Payable) (Details) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Construction in progress in Accounts Payable	$ 6,408	$ 15,062

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				6 Months Ended
	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Net income	$ 51,484	$ 43,951	$ 39,973	$ 37,592	$ 95,435	$ 77,565
Net income available to participating securities	(157)		(118)		(292)	(232)
Net income available to common shareholders	$ 51,327		$ 39,855		$ 95,143	$ 77,333
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average common shares outstanding - basic (in shares)	27,425		27,471		27,437	27,460
Weighted average common shares outstanding - diluted (in shares)	27,440		27,493		27,457	27,476
Net income per common share – basic	$ 1.87		$ 1.45		$ 3.47	$ 2.82
Net income per common share – diluted	$ 1.87		$ 1.45		$ 3.47	$ 2.81
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		2		3	3
Stock Settled Stock Appreciation Rights SARS [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Incremental share effect from stock-settled stock appreciation rights (in shares)	7		18		9	9
Weighted average number of antidilutive securities (in rights outstanding)	100		100		100	200
Performance Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Incremental share effect from awards with forfeitable dividends (in shares)	5		2		8	4

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				6 Months Ended
	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2023	Dec. 31, 2022
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Accumulated other comprehensive loss at beginning of period	$ (9,289)	$ (9,365)	$ (11,077)	$ (11,172)	$ (9,365)	$ (11,172)
Total other comprehensive income, before tax	98		125		197	249
Total tax expense	(23)	(23)	(30)	(29)	(46)	(59)
Other comprehensive income, net of tax	75	76	95	95	151	190
Accumulated other comprehensive loss at end of period	(9,214)	$ (9,289)	(10,982)	$ (11,077)	(9,214)	(10,982)
Defined Benefit Pension Plan [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amortization of unrecognized net (gain) loss	158		182		317	363
Postretirement Benefit Plan [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amortization of unrecognized net (gain) loss	(15)		(11)		(30)	(23)
Amortization of prior service credit	$ (45)		$ (46)		$ (90)	$ (91)

Long-Term Debt (Narrative) (Det

Long-Term Debt (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Jun. 30, 2023
Debt Disclosure [Abstract]
Maximum borrowing capacity	$ 150,000,000		$ 150,000,000		$ 150,000,000
Maximum borrowing capacity on obtaining consent of the issuing bank	225,000,000		$ 225,000,000		225,000,000
Line of credit facility, expiration date			Mar. 19, 2025
Minimum interest coverage ratio			250%
Maximum leverage ratio			350%
Line of credit facility, amount outstanding	0		$ 0		0
Standby letters of credit, amount outstanding	2,200,000		2,200,000		$ 2,800,000
Interest paid	$ 0	$ 0	$ 0	$ 0

Commitments And Contingencies (

Commitments And Contingencies (Narrative) (Details) $ in Millions	Dec. 31, 2023 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Commitment for lease not yet commenced	$ 42.8

Goodwill And Other Intangible_3

Goodwill And Other Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Goodwill [Line Items]
Goodwill	$ 208,371	$ 208,371
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	Dec. 31, 2023	Jun. 30, 2023
Finite-Lived Intangible Assets [Line Items]
Net carrying value	$ 4,576	$ 4,840
Tradenames (20 to 30-year life) [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying value	4,100	4,100
Accumulated amortization	(307)	(181)
Net carrying value	3,793	3,919
Customer Relationships (10-year life) [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying value	287	287
Accumulated amortization	(205)	(190)
Net carrying value	$ 82	97
Finite-lived other intangible assets useful life (in years)	10 years
Technology / Know-how (10-year life) [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying value	$ 2,450	2,450
Accumulated amortization	(1,749)	(1,626)
Net carrying value	$ 701	$ 824
Finite-lived other intangible assets useful life (in years)	10 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
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

Goodwill And Other Intangible_5

Goodwill And Other Intangible Assets (Schedule Of Amortization Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 132	$ 628	$ 264	$ 1,257

Goodwill And Other Intangible_6

Goodwill And Other Intangible Assets (Estimated Annual Amortization Expense) (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2025	$ 527
2026	527
2027	343
2028	251
2029	$ 251

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details) - USD ($) $ in Millions	Dec. 31, 2023	Jun. 30, 2023
Federal [Member]
Income Tax Authority [Line Items]
Prepaid income taxes		$ 3.3
Accrued income taxes	$ 9
State and Local [Member]
Income Tax Authority [Line Items]
Prepaid income taxes		$ 0.8
Accrued income taxes	$ 1.2

Business Segment Information (S

Business Segment Information (Summary Of Financial Information Attributable To Reportable Segments) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Segment Reporting Information [Line Items]
Net Sales	$ 485,916	$ 477,394	$ 947,488	$ 902,931
Operating Income	65,754	51,327	122,529	100,625
Retail [Member]
Segment Reporting Information [Line Items]
Net Sales	263,992	258,763	506,176	481,979
Operating Income	59,521	49,352	112,645	92,252
Foodservice [Member]
Segment Reporting Information [Line Items]
Net Sales	221,924	218,631	441,312	420,952
Operating Income	27,145	26,696	53,778	58,625
Corporate [Member]
Segment Reporting Information [Line Items]
Operating Income	$ (20,912)	$ (24,721)	$ (43,894)	$ (50,252)

Business Segment Information (D

Business Segment Information (Disaggregation Of Net Sales By Class Of Similar Products) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Total net sales	$ 485,916	$ 477,394	$ 947,488	$ 902,931
Retail [Member]
Disaggregation of Revenue [Line Items]
Total net sales	263,992	258,763	506,176	481,979
Foodservice [Member]
Disaggregation of Revenue [Line Items]
Total net sales	221,924	218,631	441,312	420,952
Shelf-stable dressings, sauces and croutons [Member] | Retail [Member]
Disaggregation of Revenue [Line Items]
Total net sales	95,168	94,711	193,749	185,749
Frozen breads [Member] | Retail [Member]
Disaggregation of Revenue [Line Items]
Total net sales	121,696	117,424	201,326	190,282
Refrigerated dressings, dips and other [Member] | Retail [Member]
Disaggregation of Revenue [Line Items]
Total net sales	47,128	46,628	111,101	105,948
Dressings and sauces [Member] | Foodservice [Member]
Disaggregation of Revenue [Line Items]
Total net sales	162,730	160,855	328,001	311,915
Frozen breads and other [Member] | Foodservice [Member]
Disaggregation of Revenue [Line Items]
Total net sales	$ 59,194	$ 57,776	$ 113,311	$ 109,037

Business Segment Information _2

Business Segment Information (Disaggregation Of Foodservice Net Sales By Type Of Customer) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Total net sales	$ 485,916	$ 477,394	$ 947,488	$ 902,931
Foodservice [Member]
Disaggregation of Revenue [Line Items]
Total net sales	221,924	218,631	441,312	420,952
Foodservice [Member] | National accounts [Member]
Disaggregation of Revenue [Line Items]
Total net sales	170,884	171,814	342,470	332,006
Foodservice [Member] | Branded and other [Member]
Disaggregation of Revenue [Line Items]
Total net sales	$ 51,040	$ 46,817	$ 98,842	$ 88,946

Stock-Based Compensation (Narra

Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Stock Settled Stock Appreciation Rights SARS [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 0.3	$ 0.7	$ 0.6	$ 1.4
Unrecognized compensation expense	0.2		0.2
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	1.5	1.5	2.7	2.8
Unrecognized compensation expense	8.2		$ 8.2
Weighted-average period over which remaining compensation expense will be recognized (in years)			2 years
Performance Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	1	$ 0.6	$ 2.1	$ 1.1
Unrecognized compensation expense	$ 6.5		$ 6.5
Weighted-average period over which remaining compensation expense will be recognized (in years)			2 years