Document And Entity Information
Document And Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jul. 31, 2016 | Dec. 31, 2015 | |
Document Information [Line Items] | |||
Entity Registrant Name | ETHAN ALLEN INTERIORS INC | ||
Entity Central Index Key | 896,156 | ||
Trading Symbol | eth | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Common Stock, Shares Outstanding (in shares) | 27,747,128 | ||
Entity Public Float | $ 703,752 | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Common Class A [Member] | ||
Shareholders' equity: | ||
Class A common stock, par value $0.01; 150,000,000 shares authorized; 48,921,544 shares issued at June 30, 2016 and 48,884,5866 shares issued at June 30, 2015 | $ 489,000 | $ 489,000 |
Common Class B [Member] | ||
Shareholders' equity: | ||
Class A common stock, par value $0.01; 150,000,000 shares authorized; 48,921,544 shares issued at June 30, 2016 and 48,884,5866 shares issued at June 30, 2015 | ||
Cash and cash equivalents | 52,659,000 | 76,182,000 |
Marketable securities | 0 | 2,198,000 |
Accounts receivable, less allowance for doubtful accounts of $1,639 at June 30, 2016 and $1,386 at June 30, 2015 | 9,467,000 | 12,547,000 |
Inventories | 162,323,000 | 151,916,000 |
Prepaid expenses and other current assets | 23,755,000 | 27,831,000 |
Total current assets | 248,204,000 | 270,674,000 |
Property, plant and equipment, net | 273,615,000 | 277,035,000 |
Goodwill and other intangible assets | 45,128,000 | 45,128,000 |
Restricted cash and investments | 7,820,000 | 8,010,000 |
Other assets | 2,642,000 | 5,130,000 |
Total assets | 577,409,000 | 605,977,000 |
Current maturities of long-term debt | 3,001,000 | 3,034,000 |
Customer Deposits | 60,958,000 | 67,970,000 |
Accounts payable | 15,437,000 | 18,946,000 |
Accrued compensation and benefits | 22,067,000 | 26,896,000 |
Accrued expenses and other current liabilities | 21,884,000 | 23,816,000 |
Total current liabilities | 123,347,000 | 140,662,000 |
Long-term debt | 38,837,000 | 73,203,000 |
Other long-term liabilities | 23,023,000 | 21,577,000 |
Total liabilities | 185,207,000 | 235,442,000 |
Additional paid-in-capital | 374,972,000 | 370,914,000 |
Less: Treasury stock (at cost), 21,175,416 shares at June 30, 2016 and 20,477,617 shares at June 30, 2015 | (624,932) | (605,586) |
Retained earnings | 646,315,000 | 607,079,000 |
Accumulated other comprehensive income | (4,846,000) | (2,638,000) |
Total Ethan Allen Interiors Inc. shareholders' equity | 391,998,000 | 370,258,000 |
Noncontrolling interests | 204,000 | 277,000 |
Total shareholders' equity | 392,202,000 | 370,535,000 |
Total liabilities and shareholders' equity | $ 577,409,000 | $ 605,977,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Common Class A [Member] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 48,921,544 | 48,884,586 |
Common Class B [Member] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 600,000 | 600,000 |
Common stock, shares issued (in shares) | 0 | 0 |
Accounts receivable, allowance for doubtful accounts | $ 1,639 | $ 1,386 |
Treasury stock, shares (in shares) | 21,175,416 | 20,477,617 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net sales | $ 794,202 | $ 754,600 | $ 746,659 |
Cost of sales | 351,966 | 343,437 | 340,163 |
Gross profit | 442,236 | 411,163 | 406,496 |
Selling, general and administrative expenses | 353,057 | 345,229 | 336,860 |
Operating income | 89,179 | 65,934 | 69,636 |
Interest and other income (expense) | 395 | (3,333) | 276 |
Interest and other related financing costs | 1,618 | 5,918 | 7,510 |
Income before income taxes | 87,956 | 56,683 | 62,402 |
Income tax expense | 31,319 | 19,541 | 19,471 |
Net income | $ 56,637 | $ 37,142 | $ 42,931 |
Net income per basic share (in dollars per share) | $ 2.02 | $ 1.29 | $ 1.48 |
Basic weighted average common shares (in shares) | 28,072 | 28,874 | 28,918 |
Net income per diluted share (in dollars per share) | $ 2 | $ 1.27 | $ 1.47 |
Diluted weighted average common shares (in shares) | 28,324 | 29,182 | 29,276 |
Dividends declared per common share (in dollars per share) | $ 0.62 | $ 0.50 | $ 0.40 |
Comprehensive income: | |||
Net income | $ 56,637 | $ 37,142 | $ 42,931 |
Other comprehensive income | |||
Curency translation adjustment | (2,208) | (3,308) | (77) |
Other | 27 | 78 | 105 |
Other comprehensive income (loss) | (2,181) | (3,230) | 28 |
Comprehensive income | $ 54,456 | $ 33,912 | $ 42,959 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Operating activities: | |||
Net income | $ 56,637 | $ 37,142 | $ 42,931 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 19,353 | 19,142 | 17,930 |
Compensation expense related to share-based payment awards | 2,356 | 1,236 | 1,325 |
Provision (benefit) for deferred income taxes | 671 | 3,923 | (3,032) |
Restructuring and impairment charge | 784 | ||
Loss (gain) on disposal of property, plant and equipment | (2,267) | 4,180 | 2,093 |
Other | (1,295) | 3,606 | 415 |
Change in operating assets and liabilities, net of effects of acquired businesses: | |||
Accounts receivable | 2,926 | (559) | (149) |
Inventories | (9,982) | (5,036) | (9,019) |
Prepaid and other current assets | 5,113 | (9,628) | 4,269 |
Customer Deposits | (7,275) | 7,517 | 586 |
Accounts payable | (3,509) | (5,349) | 1,300 |
Accrued expenses and other current liabilities | (6,550) | (2,113) | 969 |
Other assets and liabilities | 2,191 | 261 | 271 |
Net cash provided by operating activities | 58,369 | 55,106 | 59,889 |
Investing activities: | |||
Proceeds from the disposal of property, plant & equipment | 8,073 | 9,103 | 3,381 |
Change in restricted cash and investments | 190 | 497 | 6,926 |
Capital expenditures | (22,967) | (19,787) | (19,305) |
Acquisitions (net of cash acquired) | (165) | (1,991) | |
Purchases of marketable securities | (18,268) | ||
Sales of marketable securities | 2,150 | 15,430 | 14,883 |
Other investing activities | 193 | 176 | 325 |
Net cash provided by (used in) investing activities | (12,526) | 3,428 | (12,058) |
Financing activities: | |||
Borrowings from revolving credit and term loan facilities | 75,000 | ||
Payments on long-term debt and capital lease obligations | (34,840) | (133,710) | (480) |
Purchases and retirements of company stock | (19,346) | (17,552) | |
Payment of cash dividends | (16,646) | (13,348) | (11,297) |
Other financing activities, net | 1,718 | (1,353) | 525 |
Net cash used in financing activities | (69,114) | (90,963) | (11,252) |
Effect of exchange rate changes on cash | (252) | (565) | (4) |
Net increase (decrease) in cash & cash equivalents | (23,523) | (32,994) | 36,575 |
Cash & cash equivalents - beginning of year | 76,182 | 109,176 | 72,601 |
Cash & cash equivalents - end of year | 52,659 | 76,182 | 109,176 |
Supplemental cash flow information: | |||
Income taxes paid | 29,003 | 18,250 | 20,928 |
Interest paid | 1,352 | 7,181 | 7,085 |
Non-cash capital lease obligations incurred | $ 1,700 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Total |
Balance at Jun. 30, 2013 | $ 486,000 | $ 363,938,000 | $ (584,041,000) | $ 684,000 | $ 553,083,000 | $ 207,000 | $ 334,357,000 |
Stock issued on share-based awards | 357,000 | 357,000 | |||||
Compensation expense associated with share-based awards | 1,325,000 | 1,325,000 | |||||
Tax benefit associated with exercise of share based awards | 113,000 | 113,000 | |||||
Dividends declared on common stock | (11,619,000) | (11,619,000) | |||||
Capital distribution | (25,000) | (25,000) | |||||
Comprehensive income (loss) | (42,000) | 42,931,000 | 70,000 | 42,959,000 | |||
Balance at Jun. 30, 2014 | 486,000 | 365,733,000 | (584,041,000) | 642,000 | 584,395,000 | 252,000 | 367,467,000 |
Stock issued on share-based awards | 3,000 | 4,117,000 | 4,120,000 | ||||
Compensation expense associated with share-based awards | 1,236,000 | 1,236,000 | |||||
Tax benefit associated with exercise of share based awards | (172,000) | (172,000) | |||||
Dividends declared on common stock | (14,458,000) | (14,458,000) | |||||
Capital distribution | (25,000) | (25,000) | |||||
Comprehensive income (loss) | (3,280,000) | 37,142,000 | 50,000 | 33,912,000 | |||
Balance at Jun. 30, 2015 | 489,000 | 370,914,000 | (605,586,000) | (2,638,000) | 607,079,000 | 277,000 | 370,535,000 |
Purchase/retirement of company stock | (21,545,000) | (21,545,000) | |||||
Stock issued on share-based awards | 734,000 | 734,000 | |||||
Compensation expense associated with share-based awards | 2,356,000 | 2,356,000 | |||||
Tax benefit associated with exercise of share based awards | 968,000 | 968,000 | |||||
Dividends declared on common stock | (17,401,000) | (17,401,000) | |||||
Capital distribution | (100,000) | (100,000) | |||||
Comprehensive income (loss) | (2,208,000) | 56,637,000 | 27,000 | 54,456,000 | |||
Balance at Jun. 30, 2016 | 489,000 | 374,972,000 | (624,932,000) | (4,846,000) | 646,315,000 | 204,000 | 392,202,000 |
Purchase/retirement of company stock | $ (19,346,000) | $ (19,346,000) |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | (1) Summary of Significant Accounting Policies Basis of Presentation The following is a summary of significant accounting policies of Ethan Allen Interiors Inc., and its wholly-owned subsidiaries (collectively "We," "Us," "Our," "Ethan Allen" or the "Company"). All significant intercompany accounts and transactions have been eliminated in the consolidated financial statements. Our consolidated financial statements also include the accounts of an entity in which we are a majority shareholder with the power to direct the activites that most significantly impact the entity’s performance. Noncontrolling interest amounts in the entity are immaterial and included in the Consolidated Statement of Comprehensive Income within interest and other income, net. On April 7, 2015 the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs. The new standard classifies debt issuance costs as a deduction from the debt liability, consistent with debt discounts. Prior to the issuance of ASU 2015-03, these costs were classified as assets. We adopted the provisions of ASU 2015-03 beginning in July 2015 and prior period amounts have been reclassified to conform to the current period presentation. As of June 30, 2015, $0.3 million of debt issuance costs were reclassified in the consolidated balance sheet from other noncurrent assets to current portion of long-term debt and $1.0 million was reclassified from other noncurrent assets to long-term debt, less current portion. The adoption of ASU 2015-03 did not impact our consolidated statements of comprehensive income, or our consolidated statements of cash flows. Nature of Operations We are a leading manufacturer and retailer of quality home furnishings and accents, offering complimentary interior design service to our clients and sell a full range of furniture products and decorative accents. We sell our products through one of the country’s largest home furnishing retail networks and at June 30, 2016 there were a total of 296 retail design centers, of which 143 are Company operated and 153 are independently operated. Nearly all of our Company operated retail design centers are located in the United States, with the remaining Company operated design centers located in Canada. The majority of the independently operated design centers are in Asia, with the remaining independently operated design centers located throughout the United States, the Middle East and Europe. We have nine manufacturing facilities, one of which includes a separate sawmill operation, located throughout the United States, and one plant each in Mexico and Honduras. Use of Estimates We prepare our consolidated financial statements in conformity with accounting principles generally accepted in the United States, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Because of the inherent uncertainty involved in making those estimates, actual results could differ from those estimates. Areas in which significant estimates have been made include, but are not limited to, revenue recognition, the allowance for doubtful accounts receivable, inventory obsolescence, tax valuation allowances, useful lives for property, plant and equipment and definite lived intangible assets, goodwill and indefinite lived intangible asset impairment analyses, the evaluation of uncertain tax positions and the fair value of assets acquired and liabilities assumed in business combinations. ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES Reclassifications C ertain reclassifications have been made to prior years’ financial statements in order to conform to the current year’s presentation. These changes were made for disclosure purposes only and did not have any impact on previously reported results. Cash Equivalents Cash and short-term, highly liquid investments with original maturities of three months or less are considered cash and cash equivalents. We invest excess cash in money market accounts, short-term commercial paper, and U.S. Treasury Bills. Inventories Inventories are stated at the lower of cost (first-in, first-out) or market. Cost is determined based solely on those charges incurred in the acquisition and production of the related inventory (i.e. material, labor and manufacturing overhead costs). Marketable Securities The Company’s investments are classified at the time of purchase as either available-for-sale or held-to-maturity, and reassessed as of each balance sheet date. Our marketable securities consist of available-for-sale securities, and are marked-to-market based on prices provided by our investment advisors, with unrealized gains and temporary unrealized losses reported as a component of other comprehensive income net of tax, until realized. When realized, the Company recognizes gains and losses on the sales of the securities on a specific identification method and includes the realized gains or losses in other income, net, in the consolidated statements of operations. The Company includes interest, dividends, and amortization of premium or discount on securities classified as available-for-sale in other income, net in the consolidated statements of operations. We also evaluate our available-for-sale securities to determine whether a decline in fair value of a security below the amortized cost basis is other than temporary. Should the decline be considered other than temporary, we write down the cost of the security and include the loss in earnings. In making this determination we consider such factors as the reason for and significance of the decline, current economic conditions, the length of time for which there has been an unrealized loss, the time to maturity, and other relevant information. Available-for-sale securities are classified as either short-term or long-term based on management’s intention of when to sell the securities. Property, Plant and Equipment Property, plant and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation of plant and equipment is provided over the estimated useful lives of the respective assets on a straight-line basis. Estimated useful lives of the respective assets typically range from twenty to forty years for buildings and improvements and from three to twenty years for machinery and equipment. Leasehold improvements are amortized based on the underlying lease term, or the asset’s estimated useful life, whichever is shorter. Operating Leases We record expense for operating leases by recognizing the minimum lease payments on a straight-line basis, beginning on the date that the lessee takes possession or control of the property. A number of our operating lease agreements contain provisions for tenant improvement allowances, rent holidays, rent concessions, and/or rent escalations. Incentive payments received from landlords are recorded as deferred lease incentives and are amortized over the underlying lease term on a straight-line basis as a reduction of rent expense. When the terms of an operating lease provide for periods of free rent, rent concessions, and/or rent escalations, we establish a deferred rent liability for the difference between the scheduled rent payment and the straight-line rent expense recognized. This deferred rent liability is also amortized over the underlying lease term on a straight-line basis as a reduction of rent expense. ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES Retail Design Center Acquisitions We account for the acquisition of retail design centers and related assets with the purchase method. Accounting for these transactions as purchase business combinations requires the allocation of purchase price paid to the assets acquired and liabilities assumed based on their fair values as of the date of the acquisition. The amount paid in excess of the fair value of net assets acquired is accounted for as goodwill. Goodwill and Other Intangible Assets Our intangible assets are comprised primarily of goodwill, which represents the excess of cost over the fair value of net assets acquired, and trademarks. We determined these assets have indefinite useful lives, and are therefore not amortized. Impairment of Long-Lived Assets and Goodwill Goodwill and other indefinite-lived intangible assets are evaluated for impairment on an annual basis during the fourth quarter of each fiscal year, and between annual tests whenever events or circumstances indicate that the carrying value of the goodwill or other intangible asset may exceed its fair value. When testing goodwill for impairment, we may assess qualitative factors for some or all of our reporting units to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount, including goodwill. Alternatively, we may bypass this qualitative assessment for some or all of our reporting units and determine whether the carrying value exceeds the fair value using a quantitative assessment as described below. The recoverability of long-lived assets are evaluated for impairment by determining whether the carrying value will be recovered through the expected undiscounted future cash flows resulting from the use of the asset. In the event the sum of the expected undiscounted future cash flows is less than the carrying value of the asset, an impairment loss equal to the excess of the asset’s carrying value over its fair value is recorded. The long-term nature of these assets requires the estimation of cash inflows and outflows several years into the future and only takes into consideration technological advances known at the time of the impairment test. To evaluate goodwill using a quantitative assessment, the Company determines the current fair value of the reporting units using a combination of “Market” and “Income” approaches. In the Market approach, the “Guideline Company” method is used, which focuses on comparing the Company’s risk profile and growth prospects to reasonably similar publicly traded companies. Key assumptions used for the Guideline Company method are total invested capital (“TIC”) multiples for revenues and operating cash flows, as well as consideration of control premiums. The TIC multiples are determined based on public furniture companies within our peer group, and if appropriate, recent comparable transactions are considered. Control premiums are determined using recent comparable transactions in the open market. Under the Income approach, a discounted cash flow method is used, which includes a terminal value, and is based on external analyst financial projection estimates, as well as internal financial projection estimates prepared by management. The long-term terminal growth rate assumptions reflect our current long-term view of the market in which we compete. Discount rates use the weighted average cost of capital for companies within our peer group, adjusted for specific company risk premium factors. The fair value of our trade name, which is the Company’s only indefinite-lived intangible asset other than goodwill, is valued using the relief-from-royalty method. Significant factors used in trade name valuation are rates for royalties, future growth, and a discount factor. Royalty rates are determined using an average of recent comparable values. Future growth rates are based on the Company’s perception of the long-term values in the market in which we compete, and the discount rate is determined using the weighted average cost of capital for companies within our peer group, adjusted for specific company risk premium factors. ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES Financial Instruments Because of their short-term nature, the carrying value of our cash and cash equivalents, receivables and payables, short-term debt and customer deposit liabilities approximates fair value. Substantially all of our long-term debt at both June 30, 2016 and 2015 consists of our term loan and revolving credit facility. The estimated fair value is equal to the carrying value on those dates. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance must be established for deferred tax assets when it is more likely than not that the assets will not be realized. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. Most of the unrecognized tax benefits, if recognized, would be recorded as a benefit to income tax expense. The liability associated with an unrecognized tax benefit is classified as a long-term liability except for the amount for which a cash payment is expected to be made or tax positions settled within one year. We recognize interest and penalties related to income tax matters as a component of income tax expense. Revenue Recognition Revenue is recognized when all of the following have occurred: persuasive evidence of a sales arrangement exists (e.g. a wholesale purchase order or retail sales invoice); the sales arrangement specifies a fixed or determinable sales price; title and risk of ownership has passed to the customer; no specific performance obligations remain; product is shipped or services are provided to the customer; collectability is reasonably assured. As such, revenue recognition generally occurs upon the shipment of goods to independent retailers or, in the case of Ethan Allen operated retail design centers, upon delivery to the customer. If shipping is billed to customers, this is included in revenue. Recorded sales provide for estimated returns and allowances. We permit our customers to return defective products and incorrect shipments, and terms we offer are standard for the industry. Shipping and Handling Costs Our practice has been to sell our products at the same delivered cost to all retailers nationwide, regardless of shipping point. Costs incurred by the Company to deliver finished goods are expensed and recorded in selling, general and administrative expenses. Shipping and handling costs amounted to $71.7 million in fiscal year 2016, $67.3 million for fiscal 2015 and $67.1 million in fiscal 2014. Advertising Costs Advertising costs are expensed when first aired or distributed. Our total advertising costs were $31.5 million in fiscal year 2016, $30.2 million in fiscal year 2015 and $29.5 million in fiscal year 2014. These amounts include advertising media expenses, outside and inside agency expenses, certain website related fees and photo and video production net of proceeds received by us under our agreement with the third-party financial institution responsible for administering our consumer finance programs. Prepaid advertising costs at June 30, 2016 totaled $2.0 million compared to $1.8 million at June 30, 2015. ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES Earnings Per Share We compute basic earnings per share by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated similarly, except that the weighted average outstanding shares are adjusted to include the effects of converting all potentially dilutive share-based awards issued under our employee stock plans (see Notes 9 and 10). Certain unvested share-based payment awards are participating securities because they contain rights to receive non-forfeitable dividends (if paid). The earnings available to participating securities under the two-class method of computing earnings per share is insignificant. Share-Based Compensation We estimate, as of the date of grant, the fair value of stock options awarded using the Black-Scholes option pricing model. Use of a valuation model requires management to make certain assumptions with respect to selected model inputs, including anticipated changes in the underlying stock price (i.e. expected volatility) and option exercise activity (i.e. expected life). Expected volatility is based on the historical volatility of our stock and other contributing factors. The expected life of options granted, which represents the period of time that the options are expected to be outstanding, is based, primarily, on historical data. We estimate, as of the date of grant, the fair value of restricted stock units awarded using a discounted cash flow model which requires management to make certain assumptions with respect to model inputs including anticipated future dividends not paid during the restriction period, and a discount for lack of marketability for a one-year holding period after vesting. Share-based compensation expense is included in the Consolidated Statements of Operations within selling, general and administrative expenses. Tax benefits associated with our share-based compensation arrangements are included in the Consolidated Statements of Operations within income tax expense. All shares of our common stock received in connection with the exercise of share-based awards have been recorded as treasury stock and result in a reduction in shareholders’ equity. Foreign Currency Translation The functional currency of each Company operated foreign location is the respective local currency. Assets and liabilities are translated into United States dollars using the current period-end exchange rate and income and expense amounts are translated using the average exchange rate for the period in which the transaction occurred. Resulting translation adjustments are reported as a component of accumulated other comprehensive income within shareholders’ equity. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (the “FASB”) issued ASU 2014-09, Revenue from Contracts with Customers In April 2015 the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU 2016-02, Leases In March 2016, the FASB issued Accounting Standards 2016-09, Improvements to Employee Share-Based Payment Accounting In July 2015, the FASB issued ASU No. 2015-11 , |
Note 2 - Business Acquisitions
Note 2 - Business Acquisitions | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | (2) Business Acquisitions From time to time the Company acquires design centers from its independent retailers in arms length transactions. There were no material acquisitions completed during the three fiscal years ended June 30, 2016, 2015 and 2014 respectively. |
Note 3 - Inventories
Note 3 - Inventories | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | (3) Inventories Inventories at June 30 are summarized as follows (in thousands): 2016 2015 Finished goods $ 129,627 $ 118,537 Work in process 9,497 10,537 Raw materials 27,554 25,943 Valuation allowance (4,355 ) (3,101 ) Inventories $ 162,323 $ 151,916 |
Note 4 - Property, Plant and Eq
Note 4 - Property, Plant and Equipment | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | (4) Property, Plant and Equipment Property, plant and equipment at June 30 are summarized as follows (in thousands): 2016 2015 Land and improvements $ 80,002 $ 82,806 Building and improvements 392,196 385,439 Machinery and equipment 126,066 126,667 Property, plant and equipment, gross 598,264 594,912 Less: accumulated depreciation and amortization (324,649 ) (317,877 ) Property, plant and equipment, net $ 273,615 $ 277,035 |
Note 5 - Goodwill and Other Int
Note 5 - Goodwill and Other Intangible Assets | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | (5) Goodwill and Other Intangible Assets At both June 30, 2016 and 2015, we had $25.4 million of goodwill, and $19.7 million of other indefinite-lived intangible assets consisting of Ethan Allen trade names, all of which is in our wholesale segment. In the fourth quarter of fiscal years 2016, 2015, and 2014, the Company performed qualitative assessments of the fair value of the wholesale reporting unit and concluded that the fair value of its goodwill exceeded its carrying value. In fiscal year 2011 the Company performed a quantitative assessment and determined the fair value of its wholesale reporting unit exceeded its carrying value by a substantial margin. The fair value of the trade name exceeded its carrying value by a substantial margin in fiscal years 2016, 2015 and 2014. To calculate fair value of these assets, management relies on estimates and assumptions which by their nature have varying degrees of uncertainty. Management therefore looks for third party transactions to provide the best possible support for the assumptions incorporated. Management considers several factors to be significant when estimating fair value including expected financial outlook of the business, changes in the Company’s stock price, the impact of changing market conditions on financial performance and expected future cash flows, and other factors. Deterioration in any of these factors may result in a lower fair value assessment, which could lead to impairment of the long-lived assets and goodwill of the Company. |
Note 6 - Borrowings
Note 6 - Borrowings | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | (6) Borrowings Total debt obligations at June 30 consist of the following (in thousands): 2016 2015 Term loan $ 16,167 $ 35,000 Revolver 25,000 40,000 Capital leases and other 671 1,237 Total debt 41,838 76,237 Less curent maturities 3,001 3,034 Total long-term debt $ 38,837 $ 73,203 In September 2005, we issued $200 million in ten-year senior unsecured notes due October 1, 2015 (the "Senior Notes"). The Company entered into a five year, $150 million senior secured revolving credit and term loan facility on October 21, 2014, as amended (the “Facility”). The Facility, which expires on October 21, 2019, provides a term loan of up to $35 million and a revolving credit line of up to $115 million, subject to borrowing base availability. During March 2015, we utilized $35 million of the term loan and $40 million of the revolving credit line, along with our available cash to fully redeem our Senior Notes. We incurred financing costs of $1.5 million under the Facility, which are being amortized by the interest method, over the remaining life of the Facility. At the Company’s option, revolving loans under the Facility bear interest, based on the average availability, at an annual rate of either (a) the London Interbank Offered rate (“LIBOR”) plus 1.5% to 1.75%, or (b) the higher of (i) the prime rate, (ii) the federal funds effective rate plus 0.50%, or (iii) LIBOR plus 1.0% plus in each case 0.5% to 0.75%. At June 30, 2016 the annual interest rate in effect on the revolving loan was 2.0%. At the Company’s option, term loans under the Facility bear interest, based on the Company’s rent adjusted leverage ratio, at an annual rate of either (a) LIBOR plus 1.75% to 2.25%, or (b) the higher of (i) the prime rate, (ii) the federal funds effective rate plus 0.50%, or (iii) LIBOR plus 1.0% plus in each case 0.75% to 1.25%. At June 30, 2016 the annual interest rate in effect on the term loan was 2.25%. The Company pays a commitment fee of 0.15% to 0.25% per annum on the unused portion of the Facility, and fees on issued letters of credit at an annual rate of 1.5% to 1.75% based on the average availability. Certain payments are restricted if the availability under the revolving credit line falls below 20% of the total revolving credit line, and the Company is subject to pro forma compliance with the fixed charge coverage ratio if applicable. Quarterly installments of principal on the term loan are payable based on a straight line 15-year amortization period, with the balance due at maturity. The Company does not expect to repay the revolving credit line portion of the Facility within the next year. The Facility is secured by all property owned, leased or operated by the Company in the United States and includes certain real property owned by the Company and contains customary covenants which may limit the Company’s ability to incur debt; engage in mergers and consolidations; make restricted payments (including dividends and share repurchases); sell certain assets; and make investments. The Company must maintain a minimum fixed charge coverage ratio of 1.1 to 1.0 at all times. If the outstanding term loans are less than $17.5 million and the fixed charge coverage ratio equals or exceeds 1.25 to 1.0, the fixed charge coverage ratio ceases to apply and thereafter is only triggered if average monthly availability is less than 15% of the amount of the revolving credit line. During November 2015, we made a $16.5 million prepayment on the term loan, bringing the outstanding term loan to $17.3 million, and the fixed charge coverage ratio ceased to apply. Our subsequent average availability exceeded 65.0%, such that the fixed charge coverage ratio did not apply. ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES The Company intends to use the Facility for working capital and general corporate purposes, including dividend payments and share repurchases, in addition to the refinancing of our Senior Notes which occurred in March 2015. At both June 30, 2016 and June 30, 2015, there was $0.2 million of standby letters of credit outstanding under the Facility. Total availability under the Facility was $89.8 million at June 30, 2016 and $74.8 million at June 30, 2015. The increase was due to $15.0 million payments we made on the revolving loan during fiscal 2016. At both June 30, 2016 and June 30, 2015, we were in compliance with all covenants of the Senior Notes and the credit facilities. The weighted-average interest rate applicable under our outstanding debt obligations for each of the last three fiscal years were as follows: Fiscal Year Ended June 30, 2016 2015 2014 Weighted-average interest rate 2.0 % 4.8 % 5.5 % Aggregate scheduled maturities of our debt obligations for each of the five fiscal years subsequent to June 30, 2016, and thereafter are as follows (in thousands): Fiscal Year Ended June 30 2017 3,303 2018 2,815 2019 2,396 2020 34,213 2021 - Subsequent to 2021 - Total scheduled debt payments $ 42,727 |
Note 7 - Leases
Note 7 - Leases | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Leases of Lessee Disclosure [Text Block] | (7) Leases We lease real property and equipment under various operating lease agreements expiring at various times through 2039. Leases covering retail design center locations and equipment may require, in addition to stated minimums, contingent rentals based on retail sales or equipment usage. Generally, the leases provide for renewal for various periods at stipulated rates. Future minimum lease payments under non-cancelable operating leases for each of the five fiscal years subsequent to June 30, 2016, and thereafter are shown in the table following. Also shown are minimum future rentals from subleases, which will partially offset lease payments in the aggregate (in thousands): Fiscal Year Ended June 30 Minimum Minimum Future Future Lease Sublease Payments Rentals 2017 $ 33,895 $ 1,990 2018 32,197 2,009 2019 28,517 1,460 2020 24,439 956 2021 22,081 767 Subsequent to 2021 74,291 766 Total $ 215,420 $ 7,948 ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES Total rent expense for each of the past three fiscal years ended June 30 was as follows (in thousands): 2016 2015 2014 Basic rentals under operating leases $ 31,692 $ 31,220 $ 31,168 Contingent rentals under operating leases 180 160 215 Basic and contingent rentals 31,872 31,380 31,383 Less: sublease rent (1,964 ) (3,062 ) (2,494 ) Total rent expense $ 29,908 $ 28,318 $ 28,889 Deferred rent credits and deferred lease incentives are reflected in the Consolidated Balance Sheets and are amortized over the respective underlying lease terms on a straight-line basis as a reduction of rent expense. The amounts for the past two fiscal years are as follows: 2016 2015 Deferred rent credits $ 13,003 $ 12,362 Deferred lease incentives $ 4,538 $ 3,762 |
Note 8 - Shareholders' Equity
Note 8 - Shareholders' Equity | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | (8) Shareholders' Equity Our authorized capital stock consists of (a) 150,000,000 shares of Class A Common Stock, par value $.01 per share, (b) 600,000 shares of Class B Common Stock, par value $.01 per share, and (c) 1,055,000 shares of Preferred Stock, par value $.01 per share, of which (i) 30,000 shares have been designated Series A Redeemable Convertible Preferred Stock, (ii) 30,000 shares have been designated Series B Redeemable Convertible Preferred Stock, (iii) 155,010 shares have been designated as Series C Junior Participating Preferred Stock, and (iv) the remaining 839,990 shares may be designated by the Board of Directors with such rights and preferences as they determine (all such preferred stock, collectively, the "Preferred Stock"). Shares of Class B Common Stock are convertible to shares of our Common Stock upon the occurrence of certain events or other specified conditions being met. As of June 30, 2016 and 2015, there were no shares of Preferred Stock or Class B Common Stock issued or outstanding. Share Repurchase Program On November 21, 2002, our Board of Directors approved a share repurchase program authorizing us to repurchase up to 2,000,000 shares of our common stock, from time to time, either directly or through agents, in the open market at prices and on terms satisfactory to us. Subsequent to that date, the Board of Directors increased the aggregate authorization under the repurchase program on several separate occasions, the last of which was on April 13, 2015 when the Board of Directors increased the aggregate authorization to approximately 3,000,000 shares. There is no expiration date on the repurchase authorization and the amount and timing of future share repurchases, if any, will be determined as market and business conditions warrant. As of June 30, 2016 we had a remaining Board authorization to repurchase 1.8 million shares. During the past three fiscal years, we repurchased the following shares of our common stock (trade date basis): 2016 2015 2014 Common shares repurchased 697,799 645,831 - Cost to repurchase common shares $ 19,346,104 $ 16,469,725 $ - Average price per share $ 27.72 $ 25.50 $ - For the fiscal years presented above, we funded our purchases of treasury stock with existing cash on hand and cash generated through current period operations. All of our common stock repurchases are recorded as treasury stock and result in a reduction of shareholders’ equity. |
Note 9 - Earnings Per Share
Note 9 - Earnings Per Share | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | (9) Earnings per Share The following table sets forth the calculation of weighted average shares for the fiscal years ended June 30 (in thousands): 2016 2015 2014 Weighted average shares of common stock outstanding for basic calculation 28,072 28,874 28,918 Effect of dilutive stock options and other share-based awards 252 308 358 Weighted average shares of common stock outstanding adjusted for dilution calculation 28,324 29,182 29,276 Certain restricted stock awards and the potential exercise of certain stock options were excluded from the respective diluted earnings per share calculation because their impact is anti-dilutive. In 2016, 2015 and 2014, stock options and share based awards of 460,155, 591,058 and 724,292, respectively, have been excluded. |
Note 10 - Share-based Compensat
Note 10 - Share-based Compensation | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | (10) Share-Based Compensation For the twelve months ended June 30, 2016, 2015, and 2014, share-based compensation expense totaled $2.4 million, $1.2 million, and $1.3 million respectively. These amounts have been included in the Consolidated Statements of Comprehensive Income within selling, general and administrative expenses. During the twelve months ended June 30, 2016, 2015, and 2014, we recognized related tax benefits associated with our share-based compensation arrangements totaling $0.8 million, $0.5 million and $0.5 million, respectively (before valuation allowances). Such amounts have been included in the Consolidated Statements of Comprehensive Income within income tax expense. At June 30, 2016, we had 1,341,207 shares of common stock available for future issuance pursuant to the 1992 Stock Option Plan (the “Plan”). The maximum number of shares of common stock reserved for issuance under the Plan is 6,487,867 shares. The Plan provides for the grant of non-compensatory stock options to eligible employees and non-employee directors. Stock options unde the Plan are non-qualified under section 422 of the Internal Revenue Code and allow for the purchase of shares of our common stock. The Plan also provides for the issuance of stock appreciation rights ("SARs") on issued options, however no SARs have been issued to date. The awarding of such options is determined by the Compensation Committee of the Board of Directors after consideration of recommendations proposed by the Chief Executive Officer. Options are generally granted with an exercise price equal to the market price of our common stock at the date of grant, vest ratably over a specified service period, and have a contractual term of 10 years. Equity awards can also include performance vesting conditions. Company policy further requires an additional one year holding period beyond the service vest date for certain executives. Beginning January 31, 2014, grants to employees included both company performance and service vesting conditions (as further described below). Grants to independent directors had a 3 year service vest condition. Following is a description of grants made under the Plan. ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES Stock Option Awards We estimate, as of the date of grant, the fair value of stock options awarded using the Black-Scholes option pricing model. Use of a valuation model requires management to make certain assumptions with respect to selected model inputs, including anticipated changes in the underlying stock price (i.e. expected volatility) and option exercise activity (i.e. expected life). Expected volatility is based on the historical volatility of our stock. The risk-free rate of return is based on the U.S. Treasury bill rate extrapolated to the term matching the expected life of the grant. The dividend yield is based on the annualized dividend rate at the grant date relative to the grant date stock price. The expected life of options granted, which represents the period of time that the options are expected to be outstanding, is based, primarily, on historical data. The weighted average assumptions used for fiscal years ended June 30 are noted in the following table: 2016 2015 2014 Volatility 48.1 % 52.9 % 56.3 % Risk-free rate of return 1.93 % 2.03 % 1.52 % Dividend yield 1.95 % 2.09 % 1.55 % Expected average life (years) 6.3 6.7 5.2 Options granted to employees beginning January 1, 2014 vest provided certain performance and service conditions are met (“Performance Options”). The performance conditions allow the potential vesting in three equal tranches, provided attainment of a minimum annual 5% growth in operating income (as defined in the agreement) for each of the ensuing three fiscal years. If the minimum annual growth is not achieved in any fiscal year, that tranche is forfeited, except that if a cumulative compound growth rate of 5% is achieved at the end of the three fiscal years, performance conditions for all three tranches will have been met. Service conditions require an additional period after performance conditions are met. Consequently, assuming both performance and service conditions are met, shares become exercisable between 3 and 5 years from grant date. At June 30, 2016, 196,000 Performance Options achieved the performance conditions, and consequently will vest ratably in three equal tranches on the grant date anniversary in years three, four and five provided service conditions are also met. The Company considers the remaining 130,000 Performance Options to be probable of achieving the respective performance conditions so they are being amortized to expense over their respective service periods. The Performance Options are reflected in the options tables presented below. All options were issued at the closing stock price on each grant date, and have a contractual term of 10 years. A summary of stock option activity occurring during the fiscal year ended June 30, 2016 is presented below. Weighted Weighted Average Average Remaining Exercise Contractual Aggregate Options Shares Price Term (yrs) Intrinsic Value Outstanding - June 30, 2015 994,888 $ 24.33 Granted 24,367 28.73 Exercised (36,958 ) 19.87 Canceled (forfeited/expired) (75,224 ) 30.85 Outstanding - June 30, 2016 907,073 24.08 5.1 $ 8,308,141 Exercisable - June 30, 2016 553,371 $ 22.93 3.1 $ 5,778,995 ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES All options granted during fiscal 2016 were to non-employee independent directors of the Company as compensation for their services. The weighted average grant-date fair value of options granted during fiscal 2016, 2015 and 2014 was $11.53, $11.30 and $11.42 respectively. The total intrinsic value of options exercised during 2016, 2015 and 2014 was $0.3 million, $4.5 million, and $0.2 million, respectively. As of June 30, 2016, there was $2.0 million of total unrecognized compensation cost related to nonvested options granted under the Plan. That cost is expected to be recognized over a weighted average period of 2.6 years. A summary of the nonvested shares as of June 30, 2016 and changes during the year then ended is presented below. Weighted Average Grant Date Options Shares Fair Value Nonvested June 30, 2015 454,574 $ 10.49 Granted 24,367 11.53 Vested (96,191 ) 7.59 Canceled (forfeited/expired) (29,048 ) 11.33 Nonvested at June 30, 2016 353,702 $ 11.28 Restricted Stock Awards No new restricted stock awards were granted during fiscal 2016. A summary of nonvested restricted share activity occurring during the fiscal year ended June 30, 2016 is presented below. Average Grant Date Restricted Awards Shares Fair Value Nonvested - June 30, 2015 21,000 $ 13.61 Granted - Vested (21,000 ) $ 13.61 Canceled (forfeited/expired) - Nonvested - June 30, 2016 - $ - As of June 30, 2016, there was no unrecognized compensation cost related to restricted shares granted under the Plan. The total fair value of restricted shares vested during the fiscal years ending June 30, 2016 and 2015 was $0.7 million and $0.8 million respectively. Stock Unit Awards We account for stock unit awards as equity-based awards because upon vesting, they will be settled in common shares. These awards, which contain time and other vesting conditions, may also contain performance conditions providing recipients a contingent right to receive shares of the Company's common stock ("Performance Units"), conditioned upon the Company's achievement of certain performance targets and goals, and subject to the terms of the agreements. For Performance Units, we expense as compensation cost the fair value of the shares as of the grant date, and amortize expense ratably over the total performance and time vest period, taking into account the probability that we will satisfy the performance goals. We estimate, as of the date of grant, the fair value of Performance Units with a discounted cash flow model, using as model inputs the risk-free rate of return as the discount rate, dividend yield for dividends not paid during the restriction period, and a discount for lack of marketability for a one-year post-vest holding period. The lack of marketability discount used is the present value of a future put option using Monte-Carlo and Black-Scholes pricing models. The weighted average assumptions used for the fiscal year ended June 30 is noted in the table following. No Performance based restricted stock unit awards were granted under the Plan prior to December 1, 2015. 2016 Volatility 33.3 % Risk-free rate of return 0.77 % Dividend yield 1.99 % Expected average life (years) 1.75 ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES For each grant of Performance Units, the amount of the grant that will be earned and paid will be determined by reference to the achievement of certain performance goals for each of two initial fiscal years (on a cumulative basis) and the three fiscal years (on a cumulative basis) applicable to such grant. A summary of stock unit activity occurring during the fiscal year ended June 30, 2016 is presented below. Weighted Average Grant Date Units Fair Value Non-vested units at June 30, 2015 126,000 $ 24.67 Granted 92,050 24.34 Vested - - Canceled (forfeited/expired) - - Non-vested units at June 30, 2016 218,050 24.53 As of June 30, 2016, there was $1.4 million of total unrecognized compensation cost related to nonvested units granted under the Plan based on our probability estimates. That cost is expected to be recognized over a weighted average period of 1.3 years. |
Note 11 - Income Taxes
Note 11 - Income Taxes | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | (11) Income Taxes Income tax expense (benefit) attributable to income from operations consists of the following for the fiscal years ended June 30 (in thousands): 2016 2015 2014 Current: Federal $ 27,660 $ 15,064 $ 20,693 State 2,898 489 1,900 Foreign 88 55 60 Total current 30,646 15,608 22,653 Deferred: Federal (237 ) 2,979 (941 ) State 207 759 (1,921 ) Foreign 703 195 (320 ) Total deferred 673 3,933 (3,182 ) Income Tax Expense (Benefit) $ 31,319 $ 19,541 $ 19,471 ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES The following is a reconciliation of expected income tax expense (benefit) (computed by applying the federal statutory income tax rate to income before taxes) to actual income tax expense (benefit) (in thousands): 2016 2015 2014 Expected Income Tax Expense $ 30,785 35.0 % $ 19,839 35.0 % $ 21,841 35.0 % State income taxes, net of federal income tax 2,514 2.9 % 1,597 2.8 % 2,209 3.5 % Valuation allowance 339 0.4 % 409 0.7 % (1,540 ) -2.5 % Section 199 Qualified Production Activities deduction (1,513 ) -1.7 % (998 ) -1.8 % (1,342 ) -2.2 % Unrecognized tax expense (benefit) (479 ) -0.5 % (641 ) -1.1 % (904 ) -1.4 % Other, net (327 ) -0.4 % (665 ) -1.2 % (793 ) -1.3 % Actual income tax expense (benefit) $ 31,319 35.6 % $ 19,541 34.5 % $ 19,471 31.2 % The deferred income tax asset and liability balances at June 30 (in thousands) include: 2016 2015 Deferred tax assets: Employee compensation accruals 4,343 4,555 Stock based compensation 2,665 2,639 Deferred rent credits 6,705 5,943 Net operating loss carryforwards 3,375 4,059 Goodwill 1,729 2,748 Other, net 2,659 3,241 Total deferred tax assets 21,476 23,185 Less: Valuation allowance (2,155 ) (1,816 ) Net deferred tax assets $ 19,321 $ 21,369 2016 2015 Deferred tax liabilities: Property, plant and equipment 654 1,358 Intangible assets other than goodwill 14,260 14,261 Commissions 3,478 3,999 Other, net - 149 Total deferred tax liability 18,392 19,767 Total net deferred tax asset $ 929 $ 1,602 The deferred tax balances are classified in the Consolidated Balance Sheets as follows at June 30 (in thousands): 2016 2015 Current assets $ 3,174 $ 2,301 Non-current assets 3,001 3,932 Current liabilities - - Non-current liabilities 5,246 4,631 Total net deferred tax asset $ 929 $ 1,602 Current deferred tax assets and liabilities and non-current deferred tax assets and liabilities have been presented net in the Consolidated Balance Sheets. ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES We evaluate our deferred taxes to determine if the “more likely than not” standard of evidence has not been met thereby supporting the need for a valuation allowance. A valuation allowance must be established for deferred tax assets when it is less than 50% likely that assets will be realized. At June 30 of 2016 and 2015, such an allowance was in place against the Belgian foreign tax assets, and at June 30, 2016 this valuation allowance was approximately $2.2 million. The Company’s deferred income tax assets at June 30, 2016 with respect to the net operating losses expire as follows (in thousands): Deferred Net Operating Income Loss Tax Assets Carryforwards United States (State), expiring between 2017 and 2032 $ 1,086 $ 24,130 Foreign, Expiring in 2034 2,289 6,809 Deferred U.S. federal income taxes are not provided for unremitted foreign earnings of our foreign subsidiaries because we expect those earnings will be permanently reinvested. Uncertain Tax Positions We recognize interest and penalties related to income tax matters as a component of income tax expense. If the $2.2 million of unrecognized tax benefits and related interest and penalties as of June 30, 2016 were recognized, approximately $1.4 million would be recorded as a benefit to income tax expense. A reconciliation of the beginning and ending amount of unrecognized tax benefits including related interest and penalties as of June 30, 2016 and 2015 is as follows (in thousands): 2016 2015 Beginning balance $ 3,117 $ 4,699 Additions for tax positions taken 776 568 Reductions for tax positions taken in prior years (1,530 ) (1,555 ) Settlements (193 ) (596 ) Ending balance $ 2,170 $ 3,117 It is reasonably possible that various issues relating to approximately $0.4 million of the total gross unrecognized tax benefits as of June 30, 2016 will be resolved within the next twelve months as exams are completed or statutes expire. If recognized, approximately $0.3 million of unrecognized tax benefits would reduce our tax expense in the period realized. However, actual results could differ from those currently anticipated. The Company conducts business globally and, as a result, the Company or one or more of its subsidiaries files income tax returns in the U.S., various state, and foreign jurisdictions. In the normal course of business, the Company is subject to examination by the taxing authorities in such major jurisdictions as the U.S. Canada, Mexico, Belgium and Honduras. As of June 30, 2016, the Company and certain subsidiaries are currently under audit from 2010 through 2015 in the U.S. While the amount of uncertain tax benefits with respect to the entities and years under audit may change within the next twelve months, it is not anticipated that any of the changes will be significant. |
Note 12 - Employee Retirement P
Note 12 - Employee Retirement Programs | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | (12) Employee Retirement Programs The Ethan Allen Retirement Savings Plan The Ethan Allen Retirement Savings Plan (the "Savings Plan") is a defined contribution plan, which is offered to substantially all of our employees who have completed three consecutive months of service regardless of hours worked. We may, at our discretion, make a matching contribution to the 401(k) portion of the Savings Plan on behalf of each participant. Total 401(k) Company match expense amounted to $3.4 million in 2016, $3.3 million in 2015, and $2.8 million in 2014. The contribution was made entirely in cash in 2016, 2015 and 2014. ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES Other Retirement Plans and Benefits Ethan Allen provides additional benefits to selected members of senior and middle management in the form of previously entered deferred compensation arrangements and a management cash bonus and other incentive programs. The total cost of these benefits was $3.6 million, $3.7 million, and $3.5 million in 2016, 2015 and 2014, respectively. |
Note 13 - Litigation
Note 13 - Litigation | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Legal Matters and Contingencies [Text Block] | (13) Litigation We are routinely party to various legal proceedings, including investigations or as a defendant in litigation, in the ordinary course of business. We are also subject to various federal, state and local environmental protection laws and regulations and are involved, from time to time, in investigations and proceedings regarding environmental matters. Such investigations and proceedings typically concern air emissions, water discharges, and/or management of solid and hazardous wastes. Under these laws, we and/or our subsidiaries are, or may be, required to remove or mitigate the effects on the environment of the disposal or release of certain hazardous materials. Regulations issued under the Clean Air Act Amendments of 1990 required the industry to reformulate certain furniture finishes or institute process changes to reduce emissions of volatile organic compounds. Compliance with many of these requirements has been facilitated through the introduction of high solids coating technology and alternative formulations. In addition, we have instituted a variety of technical and procedural controls, including reformulation of finishing materials to reduce toxicity, implementation of high velocity low pressure spray systems, development of storm water protection plans and controls, and further development of related inspection/audit teams, all of which have served to reduce emissions per unit of production. We remain committed to implementing new waste minimization programs and/or enhancing existing programs with the objective of (i) reducing the total volume of waste, (ii) limiting the liability associated with waste disposal, and (iii) continuously improving environmental and job safety programs on the factory floor which serve to minimize emissions and safety risks for employees. In order to reduce the use of hazardous materials in the manufacturing process, we will continue to evaluate the most appropriate, cost-effective control technologies for finishing operations and production methods. We believe that our facilities are in material compliance with all such applicable laws and regulations. Our currently anticipated capital expenditures for environmental control facility matters are not material. On a quarterly basis, we review our litigation activities and determine if an unfavorable outcome to us is considered “remote”, “reasonably possible” or “probable” as defined by U.S. GAAP. Where we determine an unfavorable outcome is probable and is reasonably estimable, we accrue for potential litigation losses. The liability we may ultimately incur with respect to such litigation matters, in the event of a negative outcome, may be in excess of amounts currently accrued, if any; however, we do not expect that the reasonably possible outcome of these litigation matters would, individually or in the aggregate, have a material adverse effect on our financial condition, results of operations or cash flows. Where we determine an unfavorable outcome is not probable or reasonably estimable, we do not accrue for any potential litigation loss. Although the outcome of the various claims and proceedings against us cannot be predicted with certainty, management believes that the likelihood is remote that any existing claims or proceedings, individually or in the aggregate, will have a material adverse effect on our financial position, results of operations or cash flows. |
Note 14 - Accumulated Other Com
Note 14 - Accumulated Other Comprehensive Income | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | (14) Accumulated Other Comprehensive Income The following table sets forth the activity in accumulated other comprehensive income for the fiscal year ended June 30, 2016 (in thousands): Foreign currency translation adjustments Balance June 30, 2015 $ (2,638 ) Changes before reclassifications (2,208 ) Amounts reclassified from accumulated other comprehensive income - Current period other comprehensive income (2,208 ) Balance June 30, 2016 $ (4,846 ) Foreign currency translation adjustments are the result of changes in foreign currency exchange rates related to our operations in Canada, Belgium, Honduras and Mexico, and exclude income taxes given that the earnings of non-U.S. subsidiaries are deemed to be reinvested for an indefinite period of time. |
Note 15 - Segment Information
Note 15 - Segment Information | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | (15) Segment Information Our operations are classified into two operating segments: wholesale and retail. These operating segments represent strategic business areas which, although they operate separately and provide their own distinctive services, enable us to more effectively offer our complete line of home furnishings and accents. The wholesale segment is principally involved in the development of the Ethan Allen brand, which encompasses the design, manufacture, domestic and offshore sourcing, sale and distribution of a full range of home furnishings and accents to a network of independently operated and Ethan Allen operated design centers as well as related marketing and brand awareness efforts. Wholesale revenue is generated upon the wholesale sale and shipment of our product to all retail design centers, including those operated by Ethan Allen. Wholesale profitability includes (i) the wholesale gross margin, which represents the difference between the wholesale sales price and the cost associated with manufacturing and/or sourcing the related product, and (ii) other operating costs associated with wholesale segment activities. The retail segment sells home furnishings and accents to consumers through a network of Company operated design centers. Retail revenue is generated upon the retail sale and delivery of our product to our customers. Retail profitability includes (i) the retail gross margin, which represents the difference between the retail sales price and the cost of goods purchased from the wholesale segment, and (ii) other operating costs associated with retail segment activities. Inter-segment eliminations result, primarily, from the wholesale sale of inventory to the retail segment, including the related profit margin. We evaluate performance of the respective segments based upon revenues and operating income. While the manner in which our home furnishings and accents are marketed and sold is consistent, the nature of the underlying recorded sales (i.e. wholesale versus retail) and the specific services that each operating segment provides (i.e. wholesale manufacturing, sourcing, and distribution versus retail selling) are different. Within each segment, we maintain revenue information according to each respective product line (i.e. case goods, upholstery, or home accents and other). A breakdown of wholesale sales by product line for each of the last three fiscal years ended June 30 is provided below: Fiscal Year Ended June 30, 2016 2015 2014 Case Goods 32 % 34 % 36 % Upholstered Products 51 % 48 % 48 % Home Accessories and Other 17 % 18 % 16 % 100 % 100 % 100 % ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES A breakdown of retail sales by product line for each of the last three fiscal years ended June 30 is provided below: Fiscal Year Ended June 30, 2016 2015 2014 Case Goods 30 % 32 % 33 % Upholstered Products 48 % 45 % 45 % Home Accents and Other 22 % 23 % 22 % 100 % 100 % 100 % Information for each of the last three fiscal years ended June 30 is provided below (in thousands): 2016 2015 2014 Net sales: Wholesale segment $ 491,467 $ 469,384 $ 453,607 Retail segment 626,511 579,713 580,739 Elimination of inter-company sales (323,776 ) (294,497 ) (287,687 ) Consolidated Total $ 794,202 $ 754,600 $ 746,659 Operating income (loss): Wholesale segment $ 74,412 $ 66,988 $ 57,816 Retail segment 16,450 1,726 10,515 Adjustment of inter-company profit (1) (1,683 ) (2,780 ) 1,305 Consolidated Total $ 89,179 $ 65,934 $ 69,636 Depreciation & Amortization: Wholesale segment $ 7,587 $ 8,044 $ 7,887 Retail segment 11,766 11,098 10,043 Consolidated Total $ 19,353 $ 19,142 $ 17,930 Capital expenditures: Wholesale segment $ 12,446 $ 9,427 $ 11,013 Retail segment 10,521 10,360 8,292 Acquisitions 165 1,991 - Consolidated Total $ 23,132 $ 21,778 $ 19,305 ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES June 30 June 30 June 30 2016 2015 2014 Total Assets: Wholesale segment $ 271,116 $ 295,949 $ 339,271 Retail segment 339,942 341,886 344,025 Inventory profit elimination (2) (33,649 ) (31,858 ) (28,862 ) Consolidated Total $ 577,409 $ 605,977 $ 654,434 (1) Represents the change in wholesale profit contained in Ethan Allen design center inventory at the end of the period. (2) The wholesale profit contained in the retail segment inventory that has not yet been realized. These profits are realized when the related inventory is sold. Our international net sales are comprised of our wholesale segment sales to independent retailers and our retail segment sales to consumers through the Company operated design centers. The number of international design centers, and the related net sales as a percent of our consolidated net sales is shown in the following table. Fiscal Year Ended June 30, 2016 2015 2014 Independent design centers 103 97 91 Company operated design centers 6 7 8 Total international design centers 109 104 99 Percentage of consolidated net sales 9.2 % 11.6 % 10.6 % |
Note 16 - Selected Quarterly Fi
Note 16 - Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Quarterly Financial Information [Text Block] | (16) Selected Quarterly Financial Data (Unaudited) Tabulated below is selected financial data for each quarter of the fiscal years ended June 30, 2016, 2015, and 2014 (in thousands, except per share data): Quarter Ended September 30 December 31 March 31 June 30 Fiscal 2016: Net Sales $ 190,391 $ 207,535 $ 190,583 $ 205,693 Gross profit 104,673 116,058 105,717 115,788 Net income 13,147 16,534 10,178 16,778 Earnings per basic share 0.46 0.58 0.37 0.60 Earnings per diluted share 0.46 0.58 0.36 0.60 Dividends declared per common share 0.14 0.14 0.17 0.17 Fiscal 2015: Net Sales $ 190,706 $ 197,067 $ 173,259 $ 193,568 Gross profit 104,803 106,074 94,110 106,176 Net income 11,879 10,038 2,536 12,689 Earnings per basic share 0.41 0.35 0.09 0.44 Earnings per diluted share 0.41 0.34 0.09 0.44 Dividends declared per common share 0.12 0.12 0.12 0.14 Fiscal 2014: Net Sales $ 181,659 $ 193,104 $ 173,061 $ 198,835 Gross profit 98,743 105,999 93,130 108,624 Net income 9,034 11,555 5,258 17,084 Earnings per basic share 0.31 0.40 0.18 0.59 Earnings per diluted share 0.31 0.39 0.18 0.58 Dividends declared per common share 0.10 0.10 0.10 0.10 |
Note 17 - Financial Instruments
Note 17 - Financial Instruments | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | (17) Financial Instruments We determine fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the Company. In addition, the fair value of liabilities includes consideration of non-performance risk including our own credit risk. Each fair value measurement is reported in one of the three levels, determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are: Level 1 – inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. Level 2 – inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. ETHAN ALLEN INTERIORS INC. AND SUBSIDIARIES The following section describes the valuation methodologies we use to measure different financial assets and liabilities at fair value. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents our assets and liabilities measured at fair value on a recurring basis at June 30, 2016 and June 30, 2015 (in thousands): June 30, 2016 Level 1 Level 2 Level 3 Balance Cash equivalents $ 60,479 $ - $ - $ 60,479 Available-for-sale securities - - - - Total $ 60,479 $ - $ - $ 60,479 June 30, 2015 Level 1 Level 2 Level 3 Balance Cash equivalents $ 84,192 $ - $ - $ 84,192 Available-for-sale securities - 2,198 - 2,198 Total $ 84,192 $ 2,198 $ - $ 86,390 Cash equivalents consist of money market accounts, and mutual funds in U.S. government and agency fixed income securities. We use quoted prices in active markets for identical assets or liabilities to determine fair value. There were no transfers between level 1 and level 2 during fiscal years 2016 or 2015. At June 30, 2016 and 2015, $7.8 million and $8.0 million, respectively, of cash equivalents were restricted and classified as a long-term asset. We did not hold any available-for-sale securities at June 30, 2016 as all municipal bonds matured and the proceeds were transferred to our operating cash accounts. As of June 30, 2015, available for sale securities consisted of $2.2 million in U.S. municipal bonds, with maturities of less than two years, and were rated A/A2 or better by S&P/Moody’s respectively. There were no material gross unrealized gains or losses on available-for-sale securities at June 30, 2016 or June 30, 2015. The contractual maturities of our available-for-sale investments as of June 30, 2015 were as follows (in thousands): June 30, 2015 Amortized Estimated Cost Cost Fair Value Due in one year or less $ 2,296 $ 2,155 $ 2,198 Due after one year through five years $ - $ - There were no proceeds from sales of investments available for sale in fiscal 2016 and $15.4 million during fiscal 2015, resulting in no material gain or loss in either period. There were no investments that have been in a continuous loss position for more than one year, and there have been no other-than-temporary impairments recognized. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis We measure certain assets, including our cost and equity method investments, at fair value on a nonrecurring basis. These assets are recognized at fair value when they are deemed to be other-than-temporarily impaired. During the year ended June 30, 2015, we determined that certain long-lived assets of our retail design centers in Belgium were impaired, and an impairment charge of $0.8 million was recorded at that time. |
Note 18 - Restricted Cash and I
Note 18 - Restricted Cash and Investments | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Restricted Assets Disclosure [Text Block] | (18) Restricted Cash and Investments At June 30, 2016 and 2015 we held $7.8 million and $8.0 million, respectively, of cash and investments in lieu of providing letters of credit for the benefit of the provider of our workmen’s compensation and other insurance liabilities. These restricted funds, which can be invested by us in money market mutual funds, and U.S. Treasuries and U.S. Government agency fixed income instruments with maturities of two years or less, cannot be withdrawn from our account without the prior written consent of the secured parties. These restricted funds are classified as long-term assets because they are not expected to be used within one year to fund operations. See also Note 17, “Financial Instruments”. |
Note 19 - Subsequent Events
Note 19 - Subsequent Events | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | (19) Subsequent Events None. |
Note 20 - Valuation and Qualify
Note 20 - Valuation and Qualifying Accounts | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | (20) Valuation and Qualifying Accounts The following table provides information regarding the Company’s sales discounts, sales returns and allowance for doubtful accounts (in thousands): Additions Balance at (Reductions) Adjustments Balance at Beginning Charged to and/or End of of Period Income Deductions Period Accounts Receivable: Sales discounts, sales returns and allowance for doubtful accounts: June 30, 2016 $ 1,386 $ 253 $ - $ 1,639 June 30, 2015 1,442 (56 ) - 1,386 June 30, 2014 $ 1,230 $ 212 $ - $ 1,442 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The following is a summary of significant accounting policies of Ethan Allen Interiors Inc., and its wholly-owned subsidiaries (collectively "We," "Us," "Our," "Ethan Allen" or the "Company"). All significant intercompany accounts and transactions have been eliminated in the consolidated financial statements. Our consolidated financial statements also include the accounts of an entity in which we are a majority shareholder with the power to direct the activites that most significantly impact the entity’s performance. Noncontrolling interest amounts in the entity are immaterial and included in the Consolidated Statement of Comprehensive Income within interest and other income, net. On April 7, 2015 the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs. The new standard classifies debt issuance costs as a deduction from the debt liability, consistent with debt discounts. Prior to the issuance of ASU 2015-03, these costs were classified as assets. We adopted the provisions of ASU 2015-03 beginning in July 2015 and prior period amounts have been reclassified to conform to the current period presentation. As of June 30, 2015, $0.3 million of debt issuance costs were reclassified in the consolidated balance sheet from other noncurrent assets to current portion of long-term debt and $1.0 million was reclassified from other noncurrent assets to long-term debt, less current portion. The adoption of ASU 2015-03 did not impact our consolidated statements of comprehensive income, or our consolidated statements of cash flows. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates We prepare our consolidated financial statements in conformity with accounting principles generally accepted in the United States, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Because of the inherent uncertainty involved in making those estimates, actual results could differ from those estimates. Areas in which significant estimates have been made include, but are not limited to, revenue recognition, the allowance for doubtful accounts receivable, inventory obsolescence, tax valuation allowances, useful lives for property, plant and equipment and definite lived intangible assets, goodwill and indefinite lived intangible asset impairment analyses, the evaluation of uncertain tax positions and the fair value of assets acquired and liabilities assumed in business combinations. |
Reclassification, Policy [Policy Text Block] | Reclassifications C ertain reclassifications have been made to prior years’ financial statements in order to conform to the current year’s presentation. These changes were made for disclosure purposes only and did not have any impact on previously reported results. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash Equivalents Cash and short-term, highly liquid investments with original maturities of three months or less are considered cash and cash equivalents. We invest excess cash in money market accounts, short-term commercial paper, and U.S. Treasury Bills. |
Inventory, Policy [Policy Text Block] | Inventories Inventories are stated at the lower of cost (first-in, first-out) or market. Cost is determined based solely on those charges incurred in the acquisition and production of the related inventory (i.e. material, labor and manufacturing overhead costs). |
Marketable Securities, Policy [Policy Text Block] | Marketable Securities The Company’s investments are classified at the time of purchase as either available-for-sale or held-to-maturity, and reassessed as of each balance sheet date. Our marketable securities consist of available-for-sale securities, and are marked-to-market based on prices provided by our investment advisors, with unrealized gains and temporary unrealized losses reported as a component of other comprehensive income net of tax, until realized. When realized, the Company recognizes gains and losses on the sales of the securities on a specific identification method and includes the realized gains or losses in other income, net, in the consolidated statements of operations. The Company includes interest, dividends, and amortization of premium or discount on securities classified as available-for-sale in other income, net in the consolidated statements of operations. We also evaluate our available-for-sale securities to determine whether a decline in fair value of a security below the amortized cost basis is other than temporary. Should the decline be considered other than temporary, we write down the cost of the security and include the loss in earnings. In making this determination we consider such factors as the reason for and significance of the decline, current economic conditions, the length of time for which there has been an unrealized loss, the time to maturity, and other relevant information. Available-for-sale securities are classified as either short-term or long-term based on management’s intention of when to sell the securities. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment Property, plant and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation of plant and equipment is provided over the estimated useful lives of the respective assets on a straight-line basis. Estimated useful lives of the respective assets typically range from twenty to forty years for buildings and improvements and from three to twenty years for machinery and equipment. Leasehold improvements are amortized based on the underlying lease term, or the asset’s estimated useful life, whichever is shorter. |
Lease, Policy [Policy Text Block] | Operating Leases We record expense for operating leases by recognizing the minimum lease payments on a straight-line basis, beginning on the date that the lessee takes possession or control of the property. A number of our operating lease agreements contain provisions for tenant improvement allowances, rent holidays, rent concessions, and/or rent escalations. Incentive payments received from landlords are recorded as deferred lease incentives and are amortized over the underlying lease term on a straight-line basis as a reduction of rent expense. When the terms of an operating lease provide for periods of free rent, rent concessions, and/or rent escalations, we establish a deferred rent liability for the difference between the scheduled rent payment and the straight-line rent expense recognized. This deferred rent liability is also amortized over the underlying lease term on a straight-line basis as a reduction of rent expense. |
Business Combinations Policy [Policy Text Block] | Retail Design Center Acquisitions We account for the acquisition of retail design centers and related assets with the purchase method. Accounting for these transactions as purchase business combinations requires the allocation of purchase price paid to the assets acquired and liabilities assumed based on their fair values as of the date of the acquisition. The amount paid in excess of the fair value of net assets acquired is accounted for as goodwill. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Other Intangible Assets Our intangible assets are comprised primarily of goodwill, which represents the excess of cost over the fair value of net assets acquired, and trademarks. We determined these assets have indefinite useful lives, and are therefore not amortized. |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets and Goodwill Goodwill and other indefinite-lived intangible assets are evaluated for impairment on an annual basis during the fourth quarter of each fiscal year, and between annual tests whenever events or circumstances indicate that the carrying value of the goodwill or other intangible asset may exceed its fair value. When testing goodwill for impairment, we may assess qualitative factors for some or all of our reporting units to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount, including goodwill. Alternatively, we may bypass this qualitative assessment for some or all of our reporting units and determine whether the carrying value exceeds the fair value using a quantitative assessment as described below. The recoverability of long-lived assets are evaluated for impairment by determining whether the carrying value will be recovered through the expected undiscounted future cash flows resulting from the use of the asset. In the event the sum of the expected undiscounted future cash flows is less than the carrying value of the asset, an impairment loss equal to the excess of the asset’s carrying value over its fair value is recorded. The long-term nature of these assets requires the estimation of cash inflows and outflows several years into the future and only takes into consideration technological advances known at the time of the impairment test. To evaluate goodwill using a quantitative assessment, the Company determines the current fair value of the reporting units using a combination of “Market” and “Income” approaches. In the Market approach, the “Guideline Company” method is used, which focuses on comparing the Company’s risk profile and growth prospects to reasonably similar publicly traded companies. Key assumptions used for the Guideline Company method are total invested capital (“TIC”) multiples for revenues and operating cash flows, as well as consideration of control premiums. The TIC multiples are determined based on public furniture companies within our peer group, and if appropriate, recent comparable transactions are considered. Control premiums are determined using recent comparable transactions in the open market. Under the Income approach, a discounted cash flow method is used, which includes a terminal value, and is based on external analyst financial projection estimates, as well as internal financial projection estimates prepared by management. The long-term terminal growth rate assumptions reflect our current long-term view of the market in which we compete. Discount rates use the weighted average cost of capital for companies within our peer group, adjusted for specific company risk premium factors. The fair value of our trade name, which is the Company’s only indefinite-lived intangible asset other than goodwill, is valued using the relief-from-royalty method. Significant factors used in trade name valuation are rates for royalties, future growth, and a discount factor. Royalty rates are determined using an average of recent comparable values. Future growth rates are based on the Company’s perception of the long-term values in the market in which we compete, and the discount rate is determined using the weighted average cost of capital for companies within our peer group, adjusted for specific company risk premium factors. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Financial Instruments Because of their short-term nature, the carrying value of our cash and cash equivalents, receivables and payables, short-term debt and customer deposit liabilities approximates fair value. Substantially all of our long-term debt at both June 30, 2016 and 2015 consists of our term loan and revolving credit facility. The estimated fair value is equal to the carrying value on those dates. |
Income Tax, Policy [Policy Text Block] | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance must be established for deferred tax assets when it is more likely than not that the assets will not be realized. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. Most of the unrecognized tax benefits, if recognized, would be recorded as a benefit to income tax expense. The liability associated with an unrecognized tax benefit is classified as a long-term liability except for the amount for which a cash payment is expected to be made or tax positions settled within one year. We recognize interest and penalties related to income tax matters as a component of income tax expense. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Revenue is recognized when all of the following have occurred: persuasive evidence of a sales arrangement exists (e.g. a wholesale purchase order or retail sales invoice); the sales arrangement specifies a fixed or determinable sales price; title and risk of ownership has passed to the customer; no specific performance obligations remain; product is shipped or services are provided to the customer; collectability is reasonably assured. As such, revenue recognition generally occurs upon the shipment of goods to independent retailers or, in the case of Ethan Allen operated retail design centers, upon delivery to the customer. If shipping is billed to customers, this is included in revenue. Recorded sales provide for estimated returns and allowances. We permit our customers to return defective products and incorrect shipments, and terms we offer are standard for the industry. |
Shipping and Handling Cost, Policy [Policy Text Block] | Shipping and Handling Costs Our practice has been to sell our products at the same delivered cost to all retailers nationwide, regardless of shipping point. Costs incurred by the Company to deliver finished goods are expensed and recorded in selling, general and administrative expenses. Shipping and handling costs amounted to $71.7 million in fiscal year 2016, $67.3 million for fiscal 2015 and $67.1 million in fiscal 2014. |
Advertising Costs, Policy [Policy Text Block] | Advertising Costs Advertising costs are expensed when first aired or distributed. Our total advertising costs were $31.5 million in fiscal year 2016, $30.2 million in fiscal year 2015 and $29.5 million in fiscal year 2014. These amounts include advertising media expenses, outside and inside agency expenses, certain website related fees and photo and video production net of proceeds received by us under our agreement with the third-party financial institution responsible for administering our consumer finance programs. Prepaid advertising costs at June 30, 2016 totaled $2.0 million compared to $1.8 million at June 30, 2015. |
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Share We compute basic earnings per share by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated similarly, except that the weighted average outstanding shares are adjusted to include the effects of converting all potentially dilutive share-based awards issued under our employee stock plans (see Notes 9 and 10). Certain unvested share-based payment awards are participating securities because they contain rights to receive non-forfeitable dividends (if paid). The earnings available to participating securities under the two-class method of computing earnings per share is insignificant. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Share-Based Compensation We estimate, as of the date of grant, the fair value of stock options awarded using the Black-Scholes option pricing model. Use of a valuation model requires management to make certain assumptions with respect to selected model inputs, including anticipated changes in the underlying stock price (i.e. expected volatility) and option exercise activity (i.e. expected life). Expected volatility is based on the historical volatility of our stock and other contributing factors. The expected life of options granted, which represents the period of time that the options are expected to be outstanding, is based, primarily, on historical data. We estimate, as of the date of grant, the fair value of restricted stock units awarded using a discounted cash flow model which requires management to make certain assumptions with respect to model inputs including anticipated future dividends not paid during the restriction period, and a discount for lack of marketability for a one-year holding period after vesting. Share-based compensation expense is included in the Consolidated Statements of Operations within selling, general and administrative expenses. Tax benefits associated with our share-based compensation arrangements are included in the Consolidated Statements of Operations within income tax expense. All shares of our common stock received in connection with the exercise of share-based awards have been recorded as treasury stock and result in a reduction in shareholders’ equity. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation The functional currency of each Company operated foreign location is the respective local currency. Assets and liabilities are translated into United States dollars using the current period-end exchange rate and income and expense amounts are translated using the average exchange rate for the period in which the transaction occurred. Resulting translation adjustments are reported as a component of accumulated other comprehensive income within shareholders’ equity. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (the “FASB”) issued ASU 2014-09, Revenue from Contracts with Customers In April 2015 the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU 2016-02, Leases In March 2016, the FASB issued Accounting Standards 2016-09, Improvements to Employee Share-Based Payment Accounting In July 2015, the FASB issued ASU No. 2015-11 , |
Note 3 - Inventories (Tables)
Note 3 - Inventories (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | 2016 2015 Finished goods $ 129,627 $ 118,537 Work in process 9,497 10,537 Raw materials 27,554 25,943 Valuation allowance (4,355 ) (3,101 ) Inventories $ 162,323 $ 151,916 |
Note 4 - Property, Plant and 29
Note 4 - Property, Plant and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | 2016 2015 Land and improvements $ 80,002 $ 82,806 Building and improvements 392,196 385,439 Machinery and equipment 126,066 126,667 Property, plant and equipment, gross 598,264 594,912 Less: accumulated depreciation and amortization (324,649 ) (317,877 ) Property, plant and equipment, net $ 273,615 $ 277,035 |
Note 6 - Borrowings (Tables)
Note 6 - Borrowings (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | 2016 2015 Term loan $ 16,167 $ 35,000 Revolver 25,000 40,000 Capital leases and other 671 1,237 Total debt 41,838 76,237 Less curent maturities 3,001 3,034 Total long-term debt $ 38,837 $ 73,203 |
Schedule of Long-term Debt Instruments [Table Text Block] | Fiscal Year Ended June 30, 2016 2015 2014 Weighted-average interest rate 2.0 % 4.8 % 5.5 % |
Schedule of Maturities of Long-term Debt [Table Text Block] | Fiscal Year Ended June 30 2017 3,303 2018 2,815 2019 2,396 2020 34,213 2021 - Subsequent to 2021 - Total scheduled debt payments $ 42,727 |
Note 7 - Leases (Tables)
Note 7 - Leases (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | Fiscal Year Ended June 30 Minimum Minimum Future Future Lease Sublease Payments Rentals 2017 $ 33,895 $ 1,990 2018 32,197 2,009 2019 28,517 1,460 2020 24,439 956 2021 22,081 767 Subsequent to 2021 74,291 766 Total $ 215,420 $ 7,948 |
Schedule of Rent Expense [Table Text Block] | 2016 2015 2014 Basic rentals under operating leases $ 31,692 $ 31,220 $ 31,168 Contingent rentals under operating leases 180 160 215 Basic and contingent rentals 31,872 31,380 31,383 Less: sublease rent (1,964 ) (3,062 ) (2,494 ) Total rent expense $ 29,908 $ 28,318 $ 28,889 |
Schedule of Deferred Rent Credits and Deferred Lease Incentives [ Table Text Block] | 2016 2015 Deferred rent credits $ 13,003 $ 12,362 Deferred lease incentives $ 4,538 $ 3,762 |
Note 8 - Shareholders' Equity (
Note 8 - Shareholders' Equity (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Stockholders Equity [Table Text Block] | 2016 2015 2014 Common shares repurchased 697,799 645,831 - Cost to repurchase common shares $ 19,346,104 $ 16,469,725 $ - Average price per share $ 27.72 $ 25.50 $ - |
Note 9 - Earnings Per Share (Ta
Note 9 - Earnings Per Share (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 2016 2015 2014 Weighted average shares of common stock outstanding for basic calculation 28,072 28,874 28,918 Effect of dilutive stock options and other share-based awards 252 308 358 Weighted average shares of common stock outstanding adjusted for dilution calculation 28,324 29,182 29,276 |
Note 10 - Share-based Compens34
Note 10 - Share-based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 2016 2015 2014 Volatility 48.1 % 52.9 % 56.3 % Risk-free rate of return 1.93 % 2.03 % 1.52 % Dividend yield 1.95 % 2.09 % 1.55 % Expected average life (years) 6.3 6.7 5.2 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Weighted Weighted Average Average Remaining Exercise Contractual Aggregate Options Shares Price Term (yrs) Intrinsic Value Outstanding - June 30, 2015 994,888 $ 24.33 Granted 24,367 28.73 Exercised (36,958 ) 19.87 Canceled (forfeited/expired) (75,224 ) 30.85 Outstanding - June 30, 2016 907,073 24.08 5.1 $ 8,308,141 Exercisable - June 30, 2016 553,371 $ 22.93 3.1 $ 5,778,995 |
Schedule of Nonvested Share Activity [Table Text Block] | Weighted Average Grant Date Options Shares Fair Value Nonvested June 30, 2015 454,574 $ 10.49 Granted 24,367 11.53 Vested (96,191 ) 7.59 Canceled (forfeited/expired) (29,048 ) 11.33 Nonvested at June 30, 2016 353,702 $ 11.28 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | Average Grant Date Restricted Awards Shares Fair Value Nonvested - June 30, 2015 21,000 $ 13.61 Granted - Vested (21,000 ) $ 13.61 Canceled (forfeited/expired) - Nonvested - June 30, 2016 - $ - |
Schedule of Share-based Payment Award, Restricted Stock Units, Valuation Assumptions [Table Text Block] | 2016 Volatility 33.3 % Risk-free rate of return 0.77 % Dividend yield 1.99 % Expected average life (years) 1.75 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Weighted Average Grant Date Units Fair Value Non-vested units at June 30, 2015 126,000 $ 24.67 Granted 92,050 24.34 Vested - - Canceled (forfeited/expired) - - Non-vested units at June 30, 2016 218,050 24.53 |
Note 11 - Income Taxes (Tables)
Note 11 - Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Other Assets [Member] | |
Notes Tables | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2016 2015 Current assets $ 3,174 $ 2,301 Non-current assets 3,001 3,932 Current liabilities - - Non-current liabilities 5,246 4,631 Total net deferred tax asset $ 929 $ 1,602 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 2016 2015 2014 Current: Federal $ 27,660 $ 15,064 $ 20,693 State 2,898 489 1,900 Foreign 88 55 60 Total current 30,646 15,608 22,653 Deferred: Federal (237 ) 2,979 (941 ) State 207 759 (1,921 ) Foreign 703 195 (320 ) Total deferred 673 3,933 (3,182 ) Income Tax Expense (Benefit) $ 31,319 $ 19,541 $ 19,471 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2016 2015 2014 Expected Income Tax Expense $ 30,785 35.0 % $ 19,839 35.0 % $ 21,841 35.0 % State income taxes, net of federal income tax 2,514 2.9 % 1,597 2.8 % 2,209 3.5 % Valuation allowance 339 0.4 % 409 0.7 % (1,540 ) -2.5 % Section 199 Qualified Production Activities deduction (1,513 ) -1.7 % (998 ) -1.8 % (1,342 ) -2.2 % Unrecognized tax expense (benefit) (479 ) -0.5 % (641 ) -1.1 % (904 ) -1.4 % Other, net (327 ) -0.4 % (665 ) -1.2 % (793 ) -1.3 % Actual income tax expense (benefit) $ 31,319 35.6 % $ 19,541 34.5 % $ 19,471 31.2 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2016 2015 Deferred tax assets: Employee compensation accruals 4,343 4,555 Stock based compensation 2,665 2,639 Deferred rent credits 6,705 5,943 Net operating loss carryforwards 3,375 4,059 Goodwill 1,729 2,748 Other, net 2,659 3,241 Total deferred tax assets 21,476 23,185 Less: Valuation allowance (2,155 ) (1,816 ) Net deferred tax assets $ 19,321 $ 21,369 2016 2015 Deferred tax liabilities: Property, plant and equipment 654 1,358 Intangible assets other than goodwill 14,260 14,261 Commissions 3,478 3,999 Other, net - 149 Total deferred tax liability 18,392 19,767 Total net deferred tax asset $ 929 $ 1,602 |
Schedule of Deferred Tax Assets Expiration with Respect to Net Operating Losses [Table Text Block] | Deferred Net Operating Income Loss Tax Assets Carryforwards United States (State), expiring between 2017 and 2032 $ 1,086 $ 24,130 Foreign, Expiring in 2034 2,289 6,809 |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | 2016 2015 Beginning balance $ 3,117 $ 4,699 Additions for tax positions taken 776 568 Reductions for tax positions taken in prior years (1,530 ) (1,555 ) Settlements (193 ) (596 ) Ending balance $ 2,170 $ 3,117 |
Note 14 - Accumulated Other C36
Note 14 - Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Foreign currency translation adjustments Balance June 30, 2015 $ (2,638 ) Changes before reclassifications (2,208 ) Amounts reclassified from accumulated other comprehensive income - Current period other comprehensive income (2,208 ) Balance June 30, 2016 $ (4,846 ) |
Note 15 - Segment Information (
Note 15 - Segment Information (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
International Design Centers [Member] | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Fiscal Year Ended June 30, 2016 2015 2014 Independent design centers 103 97 91 Company operated design centers 6 7 8 Total international design centers 109 104 99 Percentage of consolidated net sales 9.2 % 11.6 % 10.6 % |
Retail Segment [Member] | |
Notes Tables | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Fiscal Year Ended June 30, 2016 2015 2014 Case Goods 30 % 32 % 33 % Upholstered Products 48 % 45 % 45 % Home Accents and Other 22 % 23 % 22 % 100 % 100 % 100 % |
Wholesale Segment [Member] | |
Notes Tables | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Fiscal Year Ended June 30, 2016 2015 2014 Case Goods 32 % 34 % 36 % Upholstered Products 51 % 48 % 48 % Home Accessories and Other 17 % 18 % 16 % 100 % 100 % 100 % |
Total Assets [Member] | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | June 30 June 30 June 30 2016 2015 2014 Total Assets: Wholesale segment $ 271,116 $ 295,949 $ 339,271 Retail segment 339,942 341,886 344,025 Inventory profit elimination (2) (33,649 ) (31,858 ) (28,862 ) Consolidated Total $ 577,409 $ 605,977 $ 654,434 |
Income Statement Section One [Member] | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | 2016 2015 2014 Net sales: Wholesale segment $ 491,467 $ 469,384 $ 453,607 Retail segment 626,511 579,713 580,739 Elimination of inter-company sales (323,776 ) (294,497 ) (287,687 ) Consolidated Total $ 794,202 $ 754,600 $ 746,659 Operating income (loss): Wholesale segment $ 74,412 $ 66,988 $ 57,816 Retail segment 16,450 1,726 10,515 Adjustment of inter-company profit (1) (1,683 ) (2,780 ) 1,305 Consolidated Total $ 89,179 $ 65,934 $ 69,636 Depreciation & Amortization: Wholesale segment $ 7,587 $ 8,044 $ 7,887 Retail segment 11,766 11,098 10,043 Consolidated Total $ 19,353 $ 19,142 $ 17,930 Capital expenditures: Wholesale segment $ 12,446 $ 9,427 $ 11,013 Retail segment 10,521 10,360 8,292 Acquisitions 165 1,991 - Consolidated Total $ 23,132 $ 21,778 $ 19,305 |
Note 16 - Selected Quarterly 38
Note 16 - Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Quarterly Financial Information [Table Text Block] | Quarter Ended September 30 December 31 March 31 June 30 Fiscal 2016: Net Sales $ 190,391 $ 207,535 $ 190,583 $ 205,693 Gross profit 104,673 116,058 105,717 115,788 Net income 13,147 16,534 10,178 16,778 Earnings per basic share 0.46 0.58 0.37 0.60 Earnings per diluted share 0.46 0.58 0.36 0.60 Dividends declared per common share 0.14 0.14 0.17 0.17 Fiscal 2015: Net Sales $ 190,706 $ 197,067 $ 173,259 $ 193,568 Gross profit 104,803 106,074 94,110 106,176 Net income 11,879 10,038 2,536 12,689 Earnings per basic share 0.41 0.35 0.09 0.44 Earnings per diluted share 0.41 0.34 0.09 0.44 Dividends declared per common share 0.12 0.12 0.12 0.14 Fiscal 2014: Net Sales $ 181,659 $ 193,104 $ 173,061 $ 198,835 Gross profit 98,743 105,999 93,130 108,624 Net income 9,034 11,555 5,258 17,084 Earnings per basic share 0.31 0.40 0.18 0.59 Earnings per diluted share 0.31 0.39 0.18 0.58 Dividends declared per common share 0.10 0.10 0.10 0.10 |
Note 17 - Financial Instrumen39
Note 17 - Financial Instruments (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | June 30, 2016 Level 1 Level 2 Level 3 Balance Cash equivalents $ 60,479 $ - $ - $ 60,479 Available-for-sale securities - - - - Total $ 60,479 $ - $ - $ 60,479 June 30, 2015 Level 1 Level 2 Level 3 Balance Cash equivalents $ 84,192 $ - $ - $ 84,192 Available-for-sale securities - 2,198 - 2,198 Total $ 84,192 $ 2,198 $ - $ 86,390 |
Available-for-sale Securities [Table Text Block] | June 30, 2015 Amortized Estimated Cost Cost Fair Value Due in one year or less $ 2,296 $ 2,155 $ 2,198 Due after one year through five years $ - $ - |
Note 20 - Valuation and Quali40
Note 20 - Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Valuation Allowance for Impairment of Recognized Servicing Assets [Table Text Block] | Additions Balance at (Reductions) Adjustments Balance at Beginning Charged to and/or End of of Period Income Deductions Period Accounts Receivable: Sales discounts, sales returns and allowance for doubtful accounts: June 30, 2016 $ 1,386 $ 253 $ - $ 1,639 June 30, 2015 1,442 (56 ) - 1,386 June 30, 2014 $ 1,230 $ 212 $ - $ 1,442 |
Note 1 - Summary of Significa41
Note 1 - Summary of Significant Accounting Policies (Details Textual) $ in Millions | 12 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | |
Reclassification of Debt Issuance Costs From Other Non-current Assets to Current Portion of Long-term Debt [Member] | |||
Prior Period Reclassification Adjustment | $ 0.3 | ||
Reclassification From Other Non-current Assets to Long-term Debt Less Current Portion [Member] | |||
Prior Period Reclassification Adjustment | 1 | ||
Wholly Owned Properties [Member] | |||
Number of Stores | 143 | ||
Independently Operated Member] | |||
Number of Stores | 153 | ||
Separate Sawmill Operation [Member] | |||
Number of Manufacturing Facilities | 1 | ||
HONDURAS | |||
Number of Manufacturing Facilities | 1 | ||
MEXICO | |||
Number of Manufacturing Facilities | 1 | ||
Building and Building Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment, Useful Life | 20 years | ||
Building and Building Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment, Useful Life | 40 years | ||
Machinery and Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Machinery and Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment, Useful Life | 20 years | ||
Number of Stores | 296 | ||
Number of Manufacturing Facilities | 9 | ||
Shipping, Handling and Transportation Costs | $ 71.7 | 67.3 | $ 67.1 |
Advertising Expense | 31.5 | 30.2 | $ 29.5 |
Prepaid Advertising | $ 2 | $ 1.8 |
Note 3 - Inventories Summary (D
Note 3 - Inventories Summary (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Finished goods | $ 129,627,000 | $ 118,537,000 |
Work in process | 9,497,000 | 10,537,000 |
Raw materials | 27,554,000 | 25,943,000 |
Valuation allowance | (4,355,000) | (3,101,000) |
Inventories | $ 162,323,000 | $ 151,916,000 |
Note 4 - Property, Plant and 43
Note 4 - Property, Plant and Equipment Summary (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Land and improvements | $ 80,002,000 | $ 82,806,000 |
Building and improvements | 392,196,000 | 385,439,000 |
Machinery and equipment | 126,066,000 | 126,667,000 |
Property, plant and equipment, gross | 598,264,000 | 594,912,000 |
Less: accumulated depreciation and amortization | (324,649,000) | (317,877,000) |
Property, plant and equipment, net | $ 273,615,000 | $ 277,035,000 |
Note 5 - Goodwill and Other I44
Note 5 - Goodwill and Other Intangible Assets (Details Textual) - USD ($) $ in Millions | Jun. 30, 2016 | Jun. 30, 2015 |
Goodwill | $ 25.4 | $ 25.4 |
Other Indefinite-lived Intangible Assets | $ 19.7 | $ 19.7 |
Note 6 - Borrowings (Details Te
Note 6 - Borrowings (Details Textual) - USD ($) | Jan. 28, 2015 | Oct. 21, 2014 | Sep. 27, 2005 | Nov. 30, 2015 | Mar. 31, 2015 | Mar. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2015 |
Senior Notes [Member] | ||||||||||
Senior Notes | $ 200,000,000 | |||||||||
Debt Instrument, Term | 10 years | |||||||||
Term Loan [Member] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 35,000,000 | |||||||||
Proceeds from Issuance of Long-term Debt | $ 35,000,000 | |||||||||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Average Availability Option [Member] | Minimum [Member] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||||||||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Average Availability Option [Member] | Maximum [Member] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |||||||||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Average Availability Option B [Member] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||||||
Revolving Credit Facility [Member] | Federal Funds Effective Swap Rate [Member] | Average Availability Option B [Member] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||||||
Revolving Credit Facility [Member] | Additional Margin on Variable Rate Option [Member] | Minimum [Member] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||||||
Revolving Credit Facility [Member] | Additional Margin on Variable Rate Option [Member] | Maximum [Member] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |||||||||
Revolving Credit Facility [Member] | Minimum [Member] | ||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.15% | |||||||||
Revolving Credit Facility [Member] | Maximum [Member] | ||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | |||||||||
Revolving Credit Facility [Member] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 115,000,000 | |||||||||
Proceeds from Issuance of Long-term Debt | 40,000,000 | |||||||||
Line of Credit Facility, Interest Rate at Period End | 2.00% | |||||||||
Debt Instrument, Covenant, Percentage of Total Revolving Credit | 20.00% | |||||||||
Long-term Debt | $ 25,000,000 | $ 40,000,000 | ||||||||
Repayments of Long-term Debt | $ 15,000,000 | |||||||||
Letter of Credit [Member] | Minimum [Member] | ||||||||||
Line of Credit Facility, Interest Rate During Period | 1.50% | |||||||||
Letter of Credit [Member] | Maximum [Member] | ||||||||||
Line of Credit Facility, Interest Rate During Period | 1.75% | |||||||||
London Interbank Offered Rate (LIBOR) [Member] | Average Availability Option B [Member] | Term Loan [Member] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||||||
London Interbank Offered Rate (LIBOR) [Member] | Rent Adjusted Leverage Ratio Option [Member] | Minimum [Member] | Term Loan [Member] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |||||||||
London Interbank Offered Rate (LIBOR) [Member] | Rent Adjusted Leverage Ratio Option [Member] | Maximum [Member] | Term Loan [Member] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |||||||||
Federal Funds Effective Swap Rate [Member] | Rent Adjusted Leverage Ratio Option [Member] | Term Loan [Member] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||||||
Additional Margin on Variable Rate Option [Member] | Minimum [Member] | Term Loan [Member] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |||||||||
Additional Margin on Variable Rate Option [Member] | Maximum [Member] | Term Loan [Member] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |||||||||
Minimum Fixed Charge Coverage Ratio Thereafter [Member] | Term Loan [Member] | ||||||||||
Fixed Charge Coverage Ratio | 1.1 | |||||||||
Minimum Fixed Charge Coverage Ratio for Covenant to Cease to Apply [Member] | Term Loan [Member] | ||||||||||
Fixed Charge Coverage Ratio | 1.25 | |||||||||
Minimum Availability Needed to Avoid Re-Triggering Fixed Charge Coverage Ratio Covenant [Member] | Term Loan [Member] | ||||||||||
Debt Instrument, Covenant, Percentage of Total Revolving Credit | 15.00% | |||||||||
Term Loan [Member] | ||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 2.25% | |||||||||
Debt Instrument, Amortization Period | 15 years | |||||||||
Debt Covenant, Fixed Charge Coverage Ratio, Maximum Outstanding Term Loans | $ 17,500,000 | |||||||||
Repayments of Debt | $ 16,500,000 | |||||||||
Long-term Debt | $ 17,300,000 | |||||||||
Debt Instrument, Term | 5 years | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 150,000,000 | |||||||||
Debt Issuance Costs, Net | $ 1,500,000 | |||||||||
Long-term Debt | $ 41,838,000 | 76,237,000 | ||||||||
Line of Credit Facility, Average Availability | 65.00% | |||||||||
Letters of Credit Outstanding, Amount | 0.20 | $ 200,000 | ||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 89,800,000 | 74,800,000 | ||||||||
Repayments of Long-term Debt | $ 34,840,000 | $ 133,710,000 | $ 480,000 |
Note 6 - Total Debt Obligations
Note 6 - Total Debt Obligations (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Term Loan [Member] | ||
Long-term Debt | $ 16,167,000 | $ 35,000,000 |
Revolving Credit Facility [Member] | ||
Long-term Debt | 25,000,000 | 40,000,000 |
Long-term Debt | 41,838,000 | 76,237,000 |
Capital leases and other | 671,000 | 1,237,000 |
Less curent maturities | 3,001,000 | 3,034,000 |
Total long-term debt | $ 38,837,000 | $ 73,203,000 |
Note 6 - Weighted -average Inte
Note 6 - Weighted -average Interest Rate (Details) | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 |
Weighted-average interest rate | 2.00% | 4.80% | 5.50% |
Note 6 - Aggregate Scheduled Ma
Note 6 - Aggregate Scheduled Maturities of Debt (Details) $ in Thousands | Jun. 30, 2016USD ($) |
2,017 | $ 3,303 |
2,018 | 2,815 |
2,019 | 2,396 |
2,020 | 34,213 |
2,021 | |
Subsequent to 2021 | |
Total scheduled debt payments | $ 42,727 |
Note 7 - Future Minimum Lease P
Note 7 - Future Minimum Lease Payments Under Non-Cancelable Operating Leases (Details) $ in Thousands | Jun. 30, 2016USD ($) |
2,017 | $ 33,895 |
2,017 | 1,990 |
2,018 | 32,197 |
2,018 | 2,009 |
2,019 | 28,517 |
2,019 | 1,460 |
2,020 | 24,439 |
2,020 | 956 |
2,021 | 22,081 |
2,021 | 767 |
Subsequent to 2021 | 74,291 |
Subsequent to 2021 | 766 |
Total | 215,420 |
Total | $ 7,948 |
Note 7 - Summary of Rent Expens
Note 7 - Summary of Rent Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Basic rentals under operating leases | $ 31,692 | $ 31,220 | $ 31,168 |
Contingent rentals under operating leases | 180 | 160 | 215 |
Basic and contingent rentals | 31,872 | 31,380 | 31,383 |
Less: sublease rent | (1,964) | (3,062) | (2,494) |
Total rent expense | $ 29,908 | $ 28,318 | $ 28,889 |
Note 7 - Deferred Rent Credits
Note 7 - Deferred Rent Credits and Deferred Lease Incentives (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Deferred rent credits | $ 13,003 | $ 12,362 |
Deferred lease incentives | $ 4,538 | $ 3,762 |
Note 8 - Shareholders' Equity52
Note 8 - Shareholders' Equity (Details Textual) - $ / shares | Jun. 30, 2016 | Jun. 30, 2015 | Apr. 13, 2015 | Nov. 21, 2002 |
Common Class A [Member] | ||||
Common Stock, Shares Authorized | 150,000,000 | 150,000,000 | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | ||
Common Stock, Shares, Issued | 48,921,544 | 48,884,586 | ||
Common Class B [Member] | ||||
Common Stock, Shares Authorized | 600,000 | 600,000 | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | ||
Common Stock, Shares, Outstanding | 0 | 0 | ||
Common Stock, Shares, Issued | 0 | 0 | ||
Series A Preferred Stock [Member] | ||||
Preferred Stock, Shares Authorized | 30,000 | |||
Series B Preferred Stock [Member] | ||||
Preferred Stock, Shares Authorized | 30,000 | |||
Series C Preferred Stock [Member] | ||||
Preferred Stock, Shares Authorized | 155,010 | |||
Preferred Stock, Shares Authorized | 1,055,000 | |||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | |||
Preferred Stock, Capital Shares Reserved for Future Issuance | 839,990 | |||
Preferred Stock, Shares Outstanding | 0 | 0 | ||
Preferred Stock, Shares Issued | 0 | 0 | ||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 3,000,000 | 2,000,000 | ||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 1,800,000 |
Note 8 - Stock Retired and Repu
Note 8 - Stock Retired and Repurchased (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Common shares repurchased (in shares) | 697,799 | 645,831 | |
Cost to repurchase common shares | $ 19,346,104 | $ 16,469,725 | |
Average price per share (in dollars per share) | $ 27.72 | $ 25.50 |
Note 9 - Earnings Per Share (De
Note 9 - Earnings Per Share (Details Textual) - shares | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 460,155 | 591,058 | 724,292 |
Note 9 - Calculation of Weighte
Note 9 - Calculation of Weighted Average Shares (Details) - shares shares in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Weighted average shares of common stock outstanding for basic calculation (in shares) | 28,072 | 28,874 | 28,918 |
Effect of dilutive stock options and other share-based awards (in shares) | 252 | 308 | 358 |
Weighted average shares of common stock outstanding adjusted for dilution calculation (in shares) | 28,324 | 29,182 | 29,276 |
Note 10 - Share-based Compens56
Note 10 - Share-based Compensation (Details Textual) - USD ($) | 12 Months Ended | 287 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Nov. 30, 2015 | |
Restricted Stock [Member] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 700,000 | $ 800,000 | ||
Restricted Stock Units (RSUs) [Member] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 1,400,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 92,050 | 0 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 109 days | |||
Stock Appreciation Rights (SARs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | |||
Stock Option Plan 1992 [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 6,487,867 | |||
Stock Option Plan 1992 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,341,207 | |||
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 5 years | |||
Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 3 years | |||
Independent Directors [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 3 years | |||
Certain Executives Not Including Chief Executive Officer [Member] | ||||
Vesting Condition, Minimum Annual Growth in Operating Income | 5.00% | |||
Vesting Condition, Cumulative Compound Growth Rate | 5.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 196,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 130,000 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 2,000,000 | |||
Allocated Share-based Compensation Expense | 2,400,000 | 1,200,000 | $ 1,300,000 | |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 800,000 | $ 500,000 | $ 500,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 24,367 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Contractual Term | 10 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 3 years 36 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 907,073 | 994,888 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 11.53 | $ 11.30 | $ 11.42 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 300,000 | $ 4,500,000 | $ 200,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 219 days |
Note 10 - Share-based Payment A
Note 10 - Share-based Payment Award, Stock Options, Valuation Assumptions (Details) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Volatility | 48.10% | 52.90% | 56.30% |
Risk-free rate of return | 1.93% | 2.03% | 1.52% |
Dividend yield | 1.95% | 2.09% | 1.55% |
Expected average life (years) | 6 years 109 days | 6 years 255 days | 5 years 73 days |
Note 10 - Share-based Compens58
Note 10 - Share-based Compensation, Stock Options, Activity (Details) | 12 Months Ended |
Jun. 30, 2016USD ($)$ / sharesshares | |
Outstanding - June 30, 2015 (in shares) | shares | 994,888 |
Outstanding - June 30, 2015 (in dollars per share) | $ / shares | $ 24.33 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 24,367 |
Granted (in dollars per share) | $ / shares | $ 28.73 |
Exercised (in shares) | shares | (36,958) |
Exercised (in dollars per share) | $ / shares | $ 19.87 |
Canceled (forfeited/expired) (in shares) | shares | (75,224) |
Canceled (forfeited/expired) (in dollars per share) | $ / shares | $ 30.85 |
Outstanding - June 30, 2016 (in shares) | shares | 907,073 |
Outstanding - June 30, 2016 (in dollars per share) | $ / shares | $ 24.08 |
Outstanding - June 30, 2016 | 5 years 36 days |
Outstanding - June 30, 2016 | $ | $ 8,308,141 |
Exercisable - June 30, 2016 (in shares) | shares | 553,371 |
Exercisable - June 30, 2016 (in dollars per share) | $ / shares | $ 22.93 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 3 years 36 days |
Exercisable - June 30, 2016 | $ | $ 5,778,995 |
Note 10 - Nonvested Share Activ
Note 10 - Nonvested Share Activity (Details) - $ / shares | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Non-Vested [Member] | |||
Nonvested June 30, 2015 (in shares) | 454,574 | ||
Nonvested June 30, 2015 (in dollars per share) | $ 10.49 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 24,367 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 11.53 | ||
Vested (in shares) | (96,191) | ||
Vested (in dollars per share) | $ 7.59 | ||
Canceled (forfeited/expired) (in shares) | (29,048) | ||
Canceled (forfeited/expired) (in dollars per share) | $ 11.33 | ||
Nonvested at June 30, 2016 (in shares) | 353,702 | 454,574 | |
Nonvested at June 30, 2016 (in dollars per share) | $ 11.28 | $ 10.49 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 24,367 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 11.53 | $ 11.30 | $ 11.42 |
Canceled (forfeited/expired) (in shares) | (75,224) |
Note 10 - Nonvested Restricted
Note 10 - Nonvested Restricted Share Activity (Details) - Restricted Stock [Member] | 12 Months Ended |
Jun. 30, 2016$ / sharesshares | |
Nonvested - June 30, 2015 (in shares) | shares | 21,000 |
Nonvested - June 30, 2015 (in dollars per share) | $ / shares | $ 13.61 |
Vested (in shares) | shares | (21,000) |
Vested (in dollars per share) | $ / shares | $ 13.61 |
Nonvested - June 30, 2016 (in shares) | shares | |
Nonvested - June 30, 2016 (in dollars per share) | $ / shares |
Note 10 - Share-based Payment61
Note 10 - Share-based Payment Award, Restricted Stock Units, Valuation Assumptions (Details) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Restricted Stock Units (RSUs) [Member] | |||
Volatility | 33.30% | ||
Risk-free rate of return | 0.77% | ||
Dividend yield | 1.99% | ||
Expected average life (years) | 1 year 273 days | ||
Volatility | 48.10% | 52.90% | 56.30% |
Risk-free rate of return | 1.93% | 2.03% | 1.52% |
Dividend yield | 1.95% | 2.09% | 1.55% |
Expected average life (years) | 6 years 109 days | 6 years 255 days | 5 years 73 days |
Note 10 - Restricted Stock Unit
Note 10 - Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 12 Months Ended | 287 Months Ended |
Jun. 30, 2016 | Nov. 30, 2015 | |
Nonvested - June 30, 2015 (in shares) | 126,000 | |
Nonvested - June 30, 2015 (in dollars per share) | $ 24.67 | |
Granted (in shares) | 92,050 | 0 |
Granted (in dollars per share) | $ 24.34 | |
Vested (in shares) | ||
Vested (in dollars per share) | ||
Canceled (forfeited/expired) (in shares) | ||
Canceled (forfeited/expired) (in dollars per share) | ||
Nonvested - June 30, 2016 (in shares) | 218,050 | |
Nonvested - June 30, 2016 (in dollars per share) | $ 24.53 |
Note 11 - Income Taxes (Details
Note 11 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | Earliest Tax Year [Member] | ||
Income Tax Examination, Year under Examination | 2,010 | |
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | Latest Tax Year [Member] | ||
Income Tax Examination, Year under Examination | 2,015 | |
Deferred Tax Assets, Valuation Allowance | $ 2,155 | $ 1,816 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 2,200 | |
Other Tax Expense (Benefit) | (1,400) | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 400 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 300 |
Note 11 - Components of Income
Note 11 - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Current: | |||
Federal | $ 27,660 | $ 15,064 | $ 20,693 |
State | 2,898 | 489 | 1,900 |
Foreign | 88 | 55 | 60 |
Total current | 30,646 | 15,608 | 22,653 |
Deferred: | |||
Federal | (237) | 2,979 | (941) |
State | 207 | 759 | (1,921) |
Foreign | 703 | 195 | (320) |
Total deferred | 673 | 3,933 | (3,182) |
Income Tax Expense (Benefit) | $ 31,319 | $ 19,541 | $ 19,471 |
Note 11 - Effective Income Tax
Note 11 - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Expected Income Tax Expense | $ 30,785 | $ 19,839 | $ 21,841 |
Expected Income Tax Expense | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal income tax | $ 2,514 | $ 1,597 | $ 2,209 |
State income taxes, net of federal income tax | 2.90% | 2.80% | 3.50% |
Valuation allowance | $ 339 | $ 409 | $ (1,540) |
Valuation allowance | 0.40% | 0.70% | 2.50% |
Section 199 Qualified Production Activities deduction | $ (1,513) | $ (998) | $ (1,342) |
Section 199 Qualified Production Activities deduction | 1.70% | 1.80% | 2.20% |
Unrecognized tax expense (benefit) | $ (479) | $ (641) | $ (904) |
Unrecognized tax expense (benefit) | 0.50% | 1.10% | 1.40% |
Other, net | $ (327) | $ (665) | $ (793) |
Other, net | 0.40% | 1.20% | 1.30% |
Actual income tax expense (benefit) | $ 31,319 | $ 19,541 | $ 19,471 |
Actual income tax expense (benefit) | 35.60% | 34.50% | 31.20% |
Note 11 - Deferred Tax Assets a
Note 11 - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Deferred tax assets: | ||
Employee compensation accruals | $ 4,343 | $ 4,555 |
Stock based compensation | 2,665 | 2,639 |
Deferred rent credits | 6,705 | 5,943 |
Net operating loss carryforwards | 3,375 | 4,059 |
Goodwill | 1,729 | 2,748 |
Other, net | 2,659 | 3,241 |
Total deferred tax assets | 21,476 | 23,185 |
Less: Valuation allowance | (2,155) | (1,816) |
Net deferred tax assets | 19,321 | 21,369 |
Deferred tax liabilities: | ||
Property, plant and equipment | 654 | 1,358 |
Intangible assets other than goodwill | 14,260 | 14,261 |
Commissions | 3,478 | 3,999 |
Other, net | 149 | |
Total deferred tax liability | 18,392 | 19,767 |
Total net deferred tax asset | $ 929 | $ 1,602 |
Note 11 - Deferred Tax Assets67
Note 11 - Deferred Tax Assets and Liabilities, Balance Sheets Classification (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Current assets | $ 3,174 | $ 2,301 |
Non-current assets | 3,001 | 3,932 |
Current liabilities | ||
Non-current liabilities | 5,246 | 4,631 |
Total net deferred tax asset | $ 929 | $ 1,602 |
Note 11 - Deferred Tax Assets E
Note 11 - Deferred Tax Assets Expiration with Respect to Net Operating Losses (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Domestic Tax Authority [Member] | |
Deferred Income Tax Assets | $ 1,086 |
Net Operating Loss Carryforwards | 24,130 |
Foreign Tax Authority [Member] | |
Deferred Income Tax Assets | 2,289 |
Net Operating Loss Carryforwards | $ 6,809 |
Note 11 - Unrecognized Tax Bene
Note 11 - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Beginning balance | $ 3,117 | $ 4,699 |
Additions for tax positions taken | 776 | 568 |
Reductions for tax positions taken in prior years | (1,530) | (1,555) |
Settlements | (193) | (596) |
Ending balance | $ 2,170 | $ 3,117 |
Note 12 - Employee Retirement70
Note 12 - Employee Retirement Programs (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 3.4 | $ 3.3 | $ 2.8 |
Other Postretirement Benefit Expense | $ 3.6 | $ 3.7 | $ 3.5 |
Note 14 - Activity in Accumulat
Note 14 - Activity in Accumulated Other Comprehensive Income (Details) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |
Balance | $ (2,638,000) |
Changes before reclassifications | (2,208,000) |
Amounts reclassified from accumulated other comprehensive income | 0 |
Current period other comprehensive income | (2,208,000) |
Balance | (4,846,000) |
Balance | (2,638,000) |
Balance | $ (4,846,000) |
Note 15 - Segment Information72
Note 15 - Segment Information (Details Textual) | 12 Months Ended |
Jun. 30, 2016 | |
Number of Operating Segments | 2 |
Note 15 - Wholesale Sales by Pr
Note 15 - Wholesale Sales by Product Line (Details) - Wholesale Segment [Member] | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Case Goods [Member] | |||
Wholesale sales, percentage | 32.00% | 34.00% | 36.00% |
Upholstered Products [Member] | |||
Wholesale sales, percentage | 51.00% | 48.00% | 48.00% |
Home Accessories and Other [Member] | |||
Wholesale sales, percentage | 17.00% | 18.00% | 16.00% |
Wholesale sales, percentage | 100.00% | 100.00% | 100.00% |
Note 15 - Retail Sales by Produ
Note 15 - Retail Sales by Product Line (Details) - Retail Segment [Member] | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Case Goods [Member] | |||
Retail Sales, Percentage | 30.00% | 32.00% | 33.00% |
Upholstered Products [Member] | |||
Retail Sales, Percentage | 48.00% | 45.00% | 45.00% |
Home Accessories and Other [Member] | |||
Retail Sales, Percentage | 22.00% | 23.00% | 22.00% |
Retail Sales, Percentage | 100.00% | 100.00% | 100.00% |
Note 15 - Income by Segment (De
Note 15 - Income by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Wholesale Segment [Member] | Operating Segments [Member] | ||||||||||||||||
Net Sales | $ 491,467 | $ 469,384 | $ 453,607 | |||||||||||||
Operating Income | 74,412 | 66,988 | 57,816 | |||||||||||||
Wholesale Segment [Member] | ||||||||||||||||
Depreciation and Amortization | 7,587 | 8,044 | 7,887 | |||||||||||||
Capital Expenditures | 12,446 | 9,427 | 11,013 | |||||||||||||
Retail Segment [Member] | Operating Segments [Member] | ||||||||||||||||
Net Sales | 626,511 | 579,713 | 580,739 | |||||||||||||
Operating Income | 16,450 | 1,726 | 10,515 | |||||||||||||
Retail Segment [Member] | ||||||||||||||||
Depreciation and Amortization | 11,766 | 11,098 | 10,043 | |||||||||||||
Capital Expenditures | 10,521 | 10,360 | 8,292 | |||||||||||||
Acquisitions [Member] | ||||||||||||||||
Capital Expenditures | 165 | 1,991 | ||||||||||||||
Intersegment Eliminations [Member] | ||||||||||||||||
Net Sales | (323,776) | (294,497) | (287,687) | |||||||||||||
Operating Income | [1] | (1,683) | (2,780) | 1,305 | ||||||||||||
Net Sales | $ 205,693 | $ 190,583 | $ 207,535 | $ 190,391 | $ 193,568 | $ 173,259 | $ 197,067 | $ 190,706 | $ 198,835 | $ 173,061 | $ 193,104 | $ 181,659 | 794,202 | 754,600 | 746,659 | |
Operating Income | 89,179 | 65,934 | 69,636 | |||||||||||||
Depreciation and Amortization | 19,353 | 19,142 | 17,930 | |||||||||||||
Capital Expenditures | $ 23,132 | $ 21,778 | $ 19,305 | |||||||||||||
[1] | Represents the change in wholesale profit contained in the retail segment inventory at the end of the period. |
Note 15 - Assets by Segment (De
Note 15 - Assets by Segment (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Wholesale Segment [Member] | ||||
Assets | $ 271,116,000 | $ 295,949,000 | $ 339,271,000 | |
Retail Segment [Member] | ||||
Assets | 339,942,000 | 341,886,000 | 344,025,000 | |
Inventory Profit Elimination [Member] | ||||
Assets | [1] | (33,649,000) | (31,858,000) | (28,862,000) |
Assets | $ 577,409,000 | $ 605,977,000 | $ 654,434,000 | |
[1] | The wholesale profit contained in the retail segment inventory that has not yet been realized. These profits are realized when the related inventory is sold. |
Note 15 - International Design
Note 15 - International Design Centers (Details) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Independently Operated Member] | International Design Centers [Member] | |||
Number of stores | 103 | 97 | 91 |
Independently Operated Member] | |||
Number of stores | 153 | ||
International Design Centers [Member] | Company Operated Design Centers [Member] | |||
Number of stores | 6 | 7 | 8 |
International Design Centers [Member] | Sales Revenue, Net [Member] | |||
Percentage of consolidated net sales | 9.20% | 11.60% | 10.60% |
International Design Centers [Member] | |||
Number of stores | 109 | 104 | 99 |
Number of stores | 296 |
Note 16 - Selected Financial Da
Note 16 - Selected Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net sales | $ 205,693 | $ 190,583 | $ 207,535 | $ 190,391 | $ 193,568 | $ 173,259 | $ 197,067 | $ 190,706 | $ 198,835 | $ 173,061 | $ 193,104 | $ 181,659 | $ 794,202 | $ 754,600 | $ 746,659 |
Gross profit | 115,788 | 105,717 | 116,058 | 104,673 | 106,176 | 94,110 | 106,074 | 104,803 | 108,624 | 93,130 | 105,999 | 98,743 | 442,236 | 411,163 | 406,496 |
Net income | $ 16,778 | $ 10,178 | $ 16,534 | $ 13,147 | $ 12,689 | $ 2,536 | $ 10,038 | $ 11,879 | $ 17,084 | $ 5,258 | $ 11,555 | $ 9,034 | $ 56,637 | $ 37,142 | $ 42,931 |
Net income per basic share (in dollars per share) | $ 0.60 | $ 0.37 | $ 0.58 | $ 0.46 | $ 0.44 | $ 0.09 | $ 0.35 | $ 0.41 | $ 0.59 | $ 0.18 | $ 0.40 | $ 0.31 | $ 2.02 | $ 1.29 | $ 1.48 |
Net income per diluted share (in dollars per share) | 0.60 | 0.36 | 0.58 | 0.46 | 0.44 | 0.09 | 0.34 | 0.41 | 0.58 | 0.18 | 0.39 | 0.31 | 2 | 1.27 | 1.47 |
Dividends declared per common share (in dollars per share) | $ 0.17 | $ 0.17 | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.62 | $ 0.50 | $ 0.40 |
Note 17 - Financial Instrumen79
Note 17 - Financial Instruments (Details Textual) | 12 Months Ended | |
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | |
Restricted Cash and Investments, Noncurrent | $ 7,800,000 | $ 8,000,000 |
Municipal Debt Securities, at Carrying Value | 2,200,000 | |
Proceeds from Sale of Available-for-sale Securities | $ 0 | 15,400,000 |
Impairment of Long-Lived Assets to be Disposed of | $ 800,000 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 0 | |
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities | $ 0 |
Note 17 - Assets and Liabilitie
Note 17 - Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Fair Value, Inputs, Level 1 [Member] | ||
Cash equivalents | $ 60,479 | $ 84,192 |
Available-for-sale securities | ||
Total | 60,479 | 84,192 |
Total | 60,479 | 84,192 |
Fair Value, Inputs, Level 2 [Member] | ||
Cash equivalents | ||
Available-for-sale securities | 2,198 | |
Total | 2,198 | |
Total | 2,198 | |
Fair Value, Inputs, Level 3 [Member] | ||
Cash equivalents | ||
Available-for-sale securities | ||
Total | ||
Total | ||
Cash equivalents | 60,479 | 84,192 |
Available-for-sale securities | 2,198 | |
Total | 60,479 | 86,390 |
Total | $ 60,479 | $ 86,390 |
Note 17 - Contractual Maturitie
Note 17 - Contractual Maturities of Available-for-sale Investments (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Due in one year or less, Cost | $ 2,296 |
Due in one year or less, Amortized Cost | 2,155 |
Due in one year or less, Estimated Fair Value | 2,198 |
Due after one year through five years, Cost | |
Due after one year through five years, Estimated Fair Value |
Note 18 - Restricted Cash and82
Note 18 - Restricted Cash and Investments (Details Textual) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Restricted Cash and Investments, Noncurrent | $ 7,800,000 | $ 8,000,000 |
Note 20 - Valuation Allowance (
Note 20 - Valuation Allowance (Details) - Allowance for Promotions [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Balance | $ 1,386 | $ 1,442 | $ 1,230 |
Additions Charged to Income | 253 | (56) | 212 |
Adjustments and/or Deductions | |||
Balance | $ 1,639 | $ 1,386 | $ 1,442 |