Document And Entity Information
Document And Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Sep. 06, 2019 | Dec. 30, 2018 | |
Document Information [Line Items] | |||
Entity Registrant Name | 1 800 FLOWERS COM INC | ||
Entity Central Index Key | 0001084869 | ||
Trading Symbol | flws | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Public Float | $ 266,120 | ||
Entity Shell Company | false | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Title of 12(b) Security | Common Stock | ||
Common Class A [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding (in shares) | 36,005,088 | ||
Common Class B [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding (in shares) | 28,542,823 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Jul. 01, 2018 |
Assets | ||
Cash and cash equivalents | $ 172,923 | $ 147,240 |
Trade receivables, net | 12,374 | 12,935 |
Inventories | 92,361 | 88,825 |
Prepaid and other | 25,580 | 24,021 |
Total current assets | 303,238 | 273,021 |
Property, plant and equipment, net | 166,681 | 163,340 |
Goodwill | 62,590 | 62,590 |
Other intangibles, net | 59,615 | 59,823 |
Other assets | 14,316 | 12,115 |
Total assets | 606,440 | 570,889 |
Liabilities and Stockholders' Equity | ||
Accounts payable | 25,704 | 41,437 |
Accrued expenses | 96,793 | 73,299 |
Current maturities of long-term debt | 5,000 | 10,063 |
Total current liabilities | 127,497 | 124,799 |
Long-term debt | 91,973 | 92,267 |
Deferred tax liabilities | 28,898 | 26,200 |
Other liabilities | 15,361 | 12,719 |
Total liabilities | 263,729 | 255,985 |
Commitments and contingencies (Note 16) | ||
Stockholders' equity: | ||
Preferred stock, $.01 par value, 10,000,000 shares authorized, none issued | ||
Additional paid-in capital | 349,319 | 341,783 |
Retained earnings | 108,525 | 73,429 |
Accumulated other comprehensive loss | (269) | (200) |
Treasury stock, at cost, 17,209,093 and 15,978,790 Class A shares in 2019 and 2018, respectively, and 5,280,000 Class B shares in 2019 and 2018 | (115,732) | (100,966) |
Total stockholders’ equity | 342,711 | 314,904 |
Total liabilities and stockholders’ equity | 606,440 | 570,889 |
Common Class A [Member] | ||
Stockholders' equity: | ||
Common stock | 530 | 520 |
Common Class B [Member] | ||
Stockholders' equity: | ||
Common stock | $ 338 | $ 338 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2019 | Jul. 01, 2018 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common Class A [Member] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, issued (in shares) | 53,084,127 | 52,071,293 |
Treasury stock, shares (in shares) | 17,209,093 | 15,978,790 |
Common Class B [Member] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, issued (in shares) | 33,822,823 | 33,822,823 |
Treasury stock, shares (in shares) | 5,280,000 | 5,280,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Net revenues | $ 1,248,623 | $ 1,151,921 | $ 1,193,625 |
Cost of revenues | 722,502 | 662,896 | 673,344 |
Gross profit | 526,121 | 489,025 | 520,281 |
Operating expenses: | |||
Marketing and sales | 319,636 | 298,810 | 317,527 |
Technology and development | 43,758 | 39,258 | 38,903 |
General and administrative | 87,654 | 77,440 | 84,116 |
Depreciation and amortization | 29,965 | 32,469 | 33,376 |
Total operating expenses | 481,013 | 447,977 | 473,922 |
Operating income | 45,108 | 41,048 | 46,359 |
Interest expense, net | 2,769 | 3,631 | 5,821 |
Other income | 644 | 605 | 15,471 |
Income before income taxes | 42,983 | 38,022 | 56,009 |
Income tax expense (benefit) | 8,217 | (2,769) | 11,968 |
Net Income | $ 34,766 | $ 40,791 | $ 44,041 |
Basic net income per common share (in dollars per share) | $ 0.54 | $ 0.63 | $ 0.68 |
Diluted net income per common share (in dollars per share) | $ 0.52 | $ 0.61 | $ 0.65 |
Weighted average shares used in the calculation of net income per common share: | |||
Basic (in shares) | 64,342 | 64,666 | 65,191 |
Diluted (in shares) | 66,457 | 66,938 | 67,735 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Net income | $ 34,766 | $ 40,791 | $ 44,041 |
Other comprehensive loss (currency translation) | (69) | (13) | (41) |
Comprehensive income | $ 34,697 | $ 40,778 | $ 44,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member]Common Class A [Member] | Common Stock [Member]Common Class B [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] | Total |
Balance (in shares) at Jul. 02, 2016 | 48,846,449 | 35,263,004 | 18,869,025 | ||||
Balance at Jul. 02, 2016 | $ 488 | $ 353 | $ 331,349 | $ (11,403) | $ (146) | $ (78,055) | $ 242,586 |
Net income | 44,041 | 44,041 | |||||
Translation adjustment | (41) | (41) | |||||
Conversion of Class B stock into Class A stock (in shares) | 1,361,401,000 | ||||||
Conversion of Class B stock into Class A stock | $ 14 | ||||||
Conversion of Class B stock into Class A stock (in shares) | (1,361,401,000) | ||||||
Conversion of Class B stock into Class A stock | $ (14) | ||||||
Stock-based compensation (in shares) | 965,429 | ||||||
Stock-based compensation | $ 10 | 6,092 | 6,102 | ||||
Exercise of stock options (in shares) | 54,500 | ||||||
Exercise of stock options | $ 1 | 285 | 286 | ||||
Acquisition of Class A treasury stock (in shares) | 1,120,706 | ||||||
Acquisition of Class A treasury stock | $ (10,735) | (10,735) | |||||
Balance (in shares) at Jul. 02, 2017 | 51,227,779 | 33,901,603 | 19,989,731 | ||||
Balance at Jul. 02, 2017 | $ 513 | $ 339 | 337,726 | 32,638 | (187) | $ (88,790) | 282,239 |
Net income | 40,791 | 40,791 | |||||
Translation adjustment | (13) | (13) | |||||
Conversion of Class B stock into Class A stock (in shares) | 78,780,000 | ||||||
Conversion of Class B stock into Class A stock | $ 1 | ||||||
Conversion of Class B stock into Class A stock (in shares) | (78,780,000) | ||||||
Conversion of Class B stock into Class A stock | $ (1) | ||||||
Stock-based compensation (in shares) | 622,734 | ||||||
Stock-based compensation | $ 5 | 3,721 | 3,726 | ||||
Exercise of stock options (in shares) | 142,000 | ||||||
Exercise of stock options | $ 1 | 336 | $ 337 | ||||
Acquisition of Class A treasury stock (in shares) | 1,269,059 | 1,269,059 | |||||
Acquisition of Class A treasury stock | $ (12,176) | $ (12,176) | |||||
Balance (in shares) at Jul. 01, 2018 | 52,071,293 | 33,822,823 | 21,258,790 | ||||
Balance at Jul. 01, 2018 | $ 520 | $ 338 | 341,783 | 73,429 | (200) | $ (100,966) | 314,904 |
Net income | 34,766 | 34,766 | |||||
Translation adjustment | (69) | (69) | |||||
Stock-based compensation (in shares) | 411,600 | ||||||
Stock-based compensation | $ 4 | 6,306 | $ 6,310 | ||||
Exercise of stock options (in shares) | 601,234 | 601,234 | |||||
Exercise of stock options | $ 6 | 1,230 | $ 1,236 | ||||
Acquisition of Class A treasury stock (in shares) | 1,230,303 | 1,230,303 | |||||
Acquisition of Class A treasury stock | $ (14,766) | $ (14,766) | |||||
Other | 330 | 330 | |||||
Balance (in shares) at Jun. 30, 2019 | 53,084,127 | 33,822,823 | 22,489,093 | ||||
Balance at Jun. 30, 2019 | $ 530 | $ 338 | $ 349,319 | $ 108,525 | $ (269) | $ (115,732) | $ 342,711 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Operating activities: | |||
Net income | $ 34,766 | $ 40,791 | $ 44,041 |
Reconciliation of net income to net cash provided by operating activities, net of acquisitions/dispositions: | |||
Gain on sale of Fannie May | (14,607) | ||
Depreciation and amortization | 29,965 | 32,469 | 33,376 |
Amortization of deferred financing costs | 969 | 953 | 1,532 |
Deferred income taxes | 2,698 | (7,668) | (1,649) |
Bad debt expense | 1,383 | 1,068 | 1,158 |
Stock-based compensation | 6,310 | 3,726 | 6,102 |
Other non-cash items | (16) | 565 | 133 |
Changes in operating items: | |||
Trade receivables | (822) | 70 | (6,220) |
Inventories | (3,536) | (12,963) | (9,277) |
Prepaid and other | (2,313) | (6,286) | (2,609) |
Accounts payable and accrued expenses | 8,846 | 5,249 | 9,132 |
Other assets | (344) | (88) | (36) |
Other liabilities | 194 | 455 | (66) |
Net cash provided by operating activities | 78,100 | 58,341 | 61,010 |
Investing activities: | |||
Proceeds from sale of business | 111,955 | ||
Working capital adjustment related to sale of Fannie May | (8,500) | ||
Capital expenditures, net of non-cash expenditures | (32,560) | (33,306) | (33,653) |
Net cash provided by (used in) investing activities | (32,560) | (41,806) | 78,302 |
Financing activities: | |||
Acquisition of treasury stock | (14,766) | (12,176) | (10,735) |
Proceeds from exercise of employee stock options | 1,236 | 337 | 286 |
Proceeds from bank borrowings | 32,250 | 30,000 | 181,000 |
Repayment of notes payable and bank borrowings | (37,187) | (37,188) | (186,451) |
Debt issuance costs | (1,390) | (1,506) | |
Net cash used in financing activities | (19,857) | (19,027) | (17,406) |
Net change in cash and cash equivalents | 25,683 | (2,492) | 121,906 |
Cash and cash equivalents: | |||
Beginning of year | 147,240 | 149,732 | 27,826 |
End of year | $ 172,923 | $ 147,240 | $ 149,732 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | Supplemental Cash Flow Information: - Interest paid amounted to $4.7 $4.0 $4.4 June 30, 2019, July 1, 2018 July 2, 2017, - The Company paid income taxes of approximately $8.8 $5.2 $6.8 June 30, 2019, July 1, 2018, July 2, 2017, See accompanying Notes to Consolidated Financial Statements. |
Note 1 - Description of Busines
Note 1 - Description of Business | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | 1. 1 800 40 1 800 100% The Company’s Celebrations Ecosystem includes the following brands: 1 800 1 800 no 1 800 |
Note 2 - Significant Accounting
Note 2 - Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | 2. Basis of Presentation The consolidated financial statements include the accounts of 1 800 2019, 2018 2017, 1% Fiscal Year The Company’s fiscal year is a 52 53 June 30. 2019, 2018, 2017, June 30, 2019, July 1, 2018, July 2, 2017, 52 Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents consist of demand deposits with banks, highly liquid money market funds, United States government securities, overnight repurchase agreements and commercial paper with maturities of three Inventories Inventories are valued at the lower of cost or market using the first first Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Depreciation expense is computed using the straight-line method over the assets’ estimated useful lives. Amortization of leasehold improvements and capital leases is computed using the straight-line method over the shorter of the estimated useful lives and the initial lease terms. The Company capitalizes certain internal and external costs incurred to acquire or develop internal-use software. Capitalized software costs are amortized on a straight-line basis over the estimated useful life of the software. Orchards in production, consisting of direct labor and materials, supervision and other items, are capitalized as part of capital projects in progress – orchards until the orchards produce fruit in commercial quantities. Upon attaining commercial levels of production, the capital investments in these orchards are recorded as land improvements. Estimated useful lives are periodically reviewed, and where appropriate, changes are made prospectively. The Company’s property, plant and equipment are depreciated using the following estimated lives: Building and building improvements (years) 10-40 Leasehold improvements (years) 3-10 Furniture, fixtures and production equipment (years) 3-10 Software (years) 3-7 Orchards in production and land improvements (years) 15-35 Property, plant and equipment are reviewed for impairment whenever changes in circumstances or events may not Goodwill Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in each business combination, with the carrying value of the Company’s goodwill allocated to its reporting units, in accordance with the acquisition method of accounting. Goodwill is not fourth not may In applying the goodwill impairment test, the Company has the option to perform a qualitative test (also known as “Step 0” two 1” 2” 0 first not may not not” two The first 1” two no second 2” not 2 2, The Company generally estimates the fair value of a reporting unit using an equal weighting of the income and market approaches. The Company uses industry accepted valuation models and set criteria that are reviewed and approved by various levels of management and, in certain instances, the Company engages third first During fiscal year 2019, not 0 1 2018 2017, 0 not not” Other Intangibles, net Other intangibles consist of definite-lived intangible assets (such as investment in licenses, customer lists, and others) and indefinite-lived intangible assets (such as acquired trade names and trademarks). The cost of definite-lived intangible assets is amortized to reflect the pattern of economic benefits consumed, over the estimated periods benefited, ranging from 3 16 not Definite-lived intangibles are reviewed for impairment whenever changes in circumstances or events may not The Company tests indefinite-lived intangible assets for impairment at least annually, during the fourth may not 0” 0 not may not not” third During fiscal year 2019, not 0 2018 2017, 0 not not” Business Combinations The Company accounts for business combinations in accordance with ASC Topic 805, not 3 The Company capitalizes the costs of producing and distributing its catalogs. Starting in fiscal 2019, No. 2014 09 2018 2017. $2.8 $3.0 June 30, 2019 July 1, 2018 Investments Equity investments accounted for under the equity method The Company has certain investments in non-marketable equity instruments of private companies. The Company accounts for these investments using the equity method if they provide the Company the ability to exercise significant influence, but not 20% 50%, The Company’s equity method investment is comprised of an interest in Flores Online, a Sao Paulo, Brazil based Internet floral and gift retailer, that the Company originally acquired on May 31, 2012. 24.9% $0.5 June 30, 2019 $0.6 July 1, 2018, June 30, 2019, July 1, 2018 July 2, 2017 $0.1 December 31, 2017, 5% 5% $0.1 $0.2 December 31, 2017. Equity investments without a readily determinable fair value Investments in non-marketable equity instruments of private companies, where the Company does not $1.6 June 30, 2019 $1.7 July 1, 2018, $1.5 Equity investments with a readily determinable fair value The Company also holds certain trading securities associated with its Non-Qualified Deferred Compensation Plan (“NQDC Plan”). These investments are measured using quoted market prices at the reporting date and are included within the “Other assets” line item in the consolidated balance sheets (see Note 10 ) Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company maintains cash and cash equivalents with high quality financial institutions. Concentration of credit risk with respect to accounts receivable is limited due to the Company's large number of customers and their dispersion throughout the United States, and the fact that a substantial portion of receivables are related to balances owed by major credit card companies. Allowances relating to consumer, corporate and franchise accounts receivable ( $2.8 June 30, 2019 $2.4 July 1, 2018) Revenue Recognition Net revenue is measured based on the amount of consideration that we expect to receive, reduced by discounts and estimates for credits and returns (calculated based upon previous experience and management’s evaluation). Service and outbound shipping charged to customers are recognized at the time the related merchandise revenues are recognized and are included in net revenues. Inbound and outbound shipping and delivery costs are included in cost of revenues. Net revenues exclude sales and other similar taxes collected from customers. A description of our principal revenue generating activities is as follows: - E-commerce revenues - consumer products sold through our online and telephonic channels. Revenue is recognized when control of the merchandise is transferred to the customer, which generally occurs upon shipment. Payment is typically due prior to the date of shipment. - Retail revenues - consumer products sold through our retail stores. Revenue is recognized when control of the goods is transferred to the customer, at the point of sale, at which time payment is received. - Wholesale revenues - products sold to our wholesale customers for subsequent resale. Revenue is recognized when control of the goods is transferred to the customer, in accordance with the terms of the applicable agreement. Payment terms are typically 30 - BloomNet Services - membership fees as well as other service offerings to florists. Membership and other subscription-based fees are recognized monthly as earned. Services revenues related to orders sent through the floral network are variable, based on either the number of orders or the value of orders, and are recognized in the period in which the orders are delivered. The contracts within BloomNet Services are typically month-to-month and as a result no 30 Deferred R evenues Deferred revenues are recorded when the Company has received consideration (i.e., advance payment) before satisfying its performance obligations. As such, customer orders are recorded as deferred revenue prior to shipment or rendering of product or services. Deferred revenues primarily relate to e-commerce orders placed, but not Our total deferred revenue as of July 1, 2018 $13.5 $13.5 June 30, 2019. June 30, 2019 $17.3 Cost of Revenues Cost of revenues consists primarily of florist fulfillment costs (fees paid directly to florists), the cost of floral and non-floral merchandise sold from inventory or through third Marketing and Sales Marketing and sales expense consists primarily of advertising expenses, catalog costs, online portal and search expenses, retail store and fulfillment operations (other than costs included in cost of revenues), and customer service center expenses, as well as the operating expenses of the Company’s departments engaged in marketing, selling and merchandising activities. The Company expenses all advertising costs, with the exception of catalog costs (see Deferred Catalog Costs first $147.8 $138.2 $137.5 June 30, 2019, July 1, 2018 July 2, 2017, Technology and Development Technology and development expense consists primarily of payroll and operating expenses of the Company’s information technology group, costs associated with its websites, including hosting, content development and maintenance and support costs related to the Company’s order entry, customer service, fulfillment and database systems. Costs associated with the acquisition or development of software for internal use are capitalized if the software is expected to have a useful life beyond one three seven one Stock-Based Compensation The Company records compensation expense associated with restricted stock awards and other forms of equity compensation based upon the fair value of stock-based awards as measured at the grant date. The cost associated with share-based awards that are subject solely to time-based vesting requirements is recognized over the awards’ service period for the entire award on a straight-line basis. The cost associated with performance-based equity awards is recognized for each tranche over the service period, based on an assessment of the likelihood that the applicable performance goals will be achieved. Derivatives and H edging The Company does not not June 30, 2019 July 1, 2018. Income Taxes The Company uses the asset and liability method to account for income taxes. The Company has established deferred tax assets and liabilities for temporary differences between the financial reporting bases and the income tax bases of its assets and liabilities at enacted tax rates expected to be in effect when such assets or liabilities are realized or settled. The Company recognizes as a deferred tax asset, the tax benefits associated with losses related to operations. Realization of these deferred tax assets assumes that we will be able to generate sufficient future taxable income so that these assets will be realized. The factors that the Company considers in assessing the likelihood of realization include the forecast of future taxable income and available tax planning strategies that could be implemented to realize the deferred tax assets. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not 50% not” Net Income Per Share Basic net income per common share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted-average number of common and dilutive common equivalent shares (consisting primarily of employee stock options and unvested restricted stock awards) outstanding during the period . Recently Issued Accounting Pronouncements - Adopted Revenue from Contracts with Customers. May 2014, No. 2014 09, 606” The Company adopted this ASC effective July 2, 2018 $0.3 $1.9 $0.8 $0.8 10 not not 2019. 2019 10 $1.8 June 30, 2019) not 15 Financial Instruments – Recognition and Measurement. January 2016, No. 2016 01, No. 2018 03, February 2018. no not no July 2, 2018. not Statement of Cash Flows. June 2016, 2016 15, 230 2016 15 July 2, 2018. not Business Combinations – Definition of a Business. January 2017, No. 2017 01, 805 2017 01 July 2, 2018. not Nonfinancial Assets – Derecognition. February 2017, No. 2017 05, 2017 05 July 2, 2018. not Stock Compensation – Modification Accounting. May 2017, No. 2017 09, 718 not July 2, 2018. not Cloud Computing Arrangements – Implementation Costs August 2018, No. 2018 15, 350 40 not July 2, 2018. not Recently Issued Accounting Pronouncements – Not Leases. February 2016, No. 2016 02, 842 We will adopt the new standard beginning with the first June 28, 2020. not not not not not 12 We are finalizing the impact of the standard to our accounting policies, processes, disclosures, and internal control over financial reporting and have implemented necessary upgrades to our existing lease system. The Company currently anticipates a material impact to its Consolidated Balance Sheets, but expects no $80.7 $78.7 Financial Instruments – Measurement of Credit Losses. June 2016, No. 2016 13, 326 2016 13 2016 13 July 4, 2021, Goodwill – Impairment Test January 2017, No. 2017 04, 350 2 2017 04, July 4, 2021, not U.S. Tax Reform On December 22, 2017, 35% 21%. June, 28% 2018, 21% Shortly after the Tax Act was enacted, the SEC staff issued Staff Accounting Bulletin No. 118, 118” 118 no one may 740. 118 second 2019, no Reclassifications Certain balances in the prior fiscal years have been reclassified to conform to the presentation in the current fiscal year. |
Note 3 - Net Income Per Common
Note 3 - Net Income Per Common Share from Continuing Operations | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 3 The following table sets forth the computation of basic and diluted net income per common share from continuing operations: Years Ended June 30, 2019 July 1, 2018 July 2, 2017 (in thousands, except per share data) Numerator: Net income $ 34,766 $ 40,791 $ 44,041 Denominator: Weighted average shares outstanding 64,342 64,666 65,191 Effect of dilutive securities: Employee stock options 1,404 1,580 1,519 Employee restricted stock awards 711 692 1,025 Total effect of dilutive securities 2,115 2,272 2,544 Adjusted weighted-average shares and assumed conversions 66,457 66,938 67,735 Net income per common share from continuing operations attributable to 1-800-FLOWERS.COM, Inc. Basic $ 0.54 $ 0.63 $ 0.68 Diluted $ 0.52 $ 0.61 $ 0.65 |
Note 4 - Dispositions
Note 4 - Dispositions | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Note 4. On March 15, 2017, May May May”) $115.0 May 30, 2017, August 2017, $8.5 first 2018. $14.6 fourth 2017. The Company and Ferrero also entered into a transition services agreement whereby the Company provided certain post-closing services to Ferrero and Fannie May 20 May, May Operating results of Fannie May May 30, 2017, 2017, May $85.6 not |
Note 5 - Inventory
Note 5 - Inventory | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 5. The Company’s inventory, stated at cost, which is not June 30, 2019 July 1, 2018 (in thousands) Finished goods $ 36,820 $ 33,930 Work-in-process 17,535 17,575 Raw materials 38,006 37,320 Total inventory $ 92,361 $ 88,825 |
Note 6 - Goodwill and Intangibl
Note 6 - Goodwill and Intangible Assets | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 6. The following table presents goodwill by segment and the related change in the net carrying amount: Consumer Floral BloomNet Wire Service Gourmet Foods & Gift Baskets Total (in thousands) Balance at July 2, 2017 $ 17,441 $ - $ 45,149 $ 62,590 Balance at July 1, 2018 $ 17,441 $ - $ 45,149 $ 62,590 Balance at June 30, 2019 $ 17,441 $ - $ 45,149 $ 62,590 There were no June 30, 2019, July 1, 2018 July 2, 2017. The Company’s other intangible assets consist of the following: June 30, 2019 July 1, 2018 Amortization Period Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net (in years) (in thousands) Intangible assets with determinable lives Investment in licenses 14-16 $ 7,420 $ 6,148 $ 1,272 $ 7,420 $ 6,042 $ 1,378 Customer lists 3-10 12,184 9,798 2,386 12,184 9,354 2,830 Other 5-14 2,946 2,280 666 2,946 2,172 774 Total intangible assets with determinable lives 22,550 18,226 4,324 22,550 17,568 4,982 Trademarks with indefinite lives 55,291 - 55,291 54,841 - 54,841 Total identifiable intangible assets $ 77,841 $ 18,226 $ 59,615 $ 77,391 $ 17,568 $ 59,823 Intangible assets with determinable lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not No June 30, 2019, July 1, 2018 July 2, 2017. The amortization of intangible assets for the years ended June 30, 2019, July 1, 2018 July 2, 2017 $0.7 $1.4 $1.4 2020 $0.6 2021 $0.6 2022 $0.5 2023 $0.5 2024 $0.5 $1.6 |
Note 7 - Property, Plant and Eq
Note 7 - Property, Plant and Equipment | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 7. June 30, 2019 July 1, 2018 (in thousands) Land $ 30,789 $ 30,789 Orchards in production and land improvements 11,339 10,962 Building and building improvements 59,236 58,450 Leasehold improvements 13,861 12,997 Production equipment and furniture and fixtures 61,415 53,066 Computer and telecommunication equipment 53,694 46,925 Software 132,078 115,944 Capital projects in progress - orchards 9,902 10,789 Property, plant and equipment, gross 372,314 339,922 Accumulated depreciation and amortization (205,633 ) (176,582 ) Property, plant and equipment, net $ 166,681 $ 163,340 Depreciation expense for the years ended June 30, 2019, July 1, 2018 July 2, 2017 $29.3 $31.1 $32.0 |
Note 8 - Accrued Expenses
Note 8 - Accrued Expenses | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block] | 8. Accrued expenses consisted of the following: June 30, 2019 July 1, 2018 (in thousands) Payroll and employee benefits $ 28,585 $ 12,992 Deferred revenue 17,305 13,524 Accrued marketing expenses 14,423 12,472 Accrued florist payout 8,038 6,890 Other 28,442 27,421 Accrued Expenses $ 96,793 $ 73,299 |
Note 9 - Long-term Debt
Note 9 - Long-term Debt | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 9. The Company’s current and long-term debt consists of the following: June 30 , 2019 July 1, 2018 (in thousands) Revolver (1) $ - $ - Term Loan (1) 100,000 104,938 Deferred financing costs (3,027 ) (2,608 ) Total debt 96,973 102,330 Less: current debt 5,000 10,063 Long-term debt $ 91,973 $ 92,267 ( 1 May 31, 2019, “2019 2019 December 23, 2016 ( “2016 $97 $100 29 May 31, 2024, 25 19 September 29, 2019, 5.0% first eight 10.0% 11 $62.5 $200 $100 January 1 August 1, may For each borrowing under the 2019 may 1 0.5% 1% 2 2019 June 30, 2019. 2019 Future principal payments under the Term Loan are as follows: $5.0 2020, $5.0 2021, $10.0 2022, $10.0 2023 $70.0 2024. |
Note 10 - Fair Value Measuremen
Note 10 - Fair Value Measurements | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 10. Cash and cash equivalents, trade and other receivables, prepaids, accounts payable and accrued expenses are reflected in the consolidated balance sheets at carrying value, which approximates fair value due to the short-term nature of these instruments. Although no may may not may Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants at the measurement date. The authoritative guidance for fair value measurements establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 3 three Level 1 Valuations based on quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. Level 2 Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not Level 3 Valuations based on inputs that are supported by little or no The following table presents by level, within the fair value hierarchy, financial assets and liabilities measured at fair value on a recurring basis: Carrying Value Fair Value Measurements Assets (Liabilities) Level 1 Level 2 Level 3 (in thousands) Assets (liabilities) as of June 30, 2019: Trading securities held in a “rabbi trust” (1) $ 11,816 $ 11,816 $ - $ - $ 11,816 $ 11,816 $ - $ - Assets (liabilities) as of July 1, 2018: Trading securities held in a “rabbi trust” (1) $ 9,368 $ 9,368 $ - $ - $ 9,368 $ 9,368 $ - $ - ( 1 The Company has established a Non-qualified Deferred Compensation Plan (the “NQDC Plan”) for certain members of senior management. Deferred compensation plan assets are invested in mutual funds held in a “rabbi trust,” which is restricted for payment to participants of the NQDC Plan. Trading securities held in the rabbi trust are measured using quoted market prices at the reporting date and are included in the “Other assets” line item, with the corresponding liability included in the “Other liabilities” line item in the consolidated balance sheets. |
Note 11 - Income Taxes
Note 11 - Income Taxes | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 11. Significant components of the income tax provision are as follows: Years ended June 30, 2019 July 1, 2018 July 2, 2017 (in thousands) Current provision: Federal $ 2,809 $ 3,385 $ 11,859 State 2,710 1,514 1,758 Foreign - - - Current income tax expense 5,519 4,899 13,617 Deferred provision (benefit): Federal 3,138 (9,331 ) (1,563 ) State (427 ) 1,648 (90 ) Foreign (13 ) 15 4 Deferred income tax expense (benefit) 2,698 (7,668 ) (1,649 ) Income tax expense (benefit) $ 8,217 $ (2,769 ) $ 11,968 A reconciliation of the U.S. federal statutory tax rate to the Company’s effective tax rate is as follows: Years ended June 30, 2019 July 1, 2018 July 2, 2017 Tax at U.S. statutory rates 21.0 % 28.0 % 35.0 % State income taxes, net of federal tax benefit 4.4 5.7 2.3 Valuation allowance change (0.3 ) 2.6 14.9 Non-deductible compensation 0.7 - - Excess tax benefit from stock-based compensation (4.4 ) (1.6 ) (1.6 ) Domestic production deduction - (2.0 ) (2.1 ) Tax credits (1.8 ) (2.5 ) (1.7 ) Tax Act impact on deferred tax balance (1) - (32.0 ) - Return to provision (1.0 ) (5.8 ) - Tax effect of Fannie May disposition - - (25.3 ) Other, net 0.5 0.3 (0.1 ) Effective tax rate 19.1 % (7.3 )% 21.4 % ( 1 On December 22, 2017, 35% 21%. 28% July 1, 2018, 21% June 30, 2019. July 1, 2018, $12.2 Shortly after the Tax Act was enacted, the SEC Staff issued Staff Accounting Bulletin 118, 118” 118 may second 2019, no Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The significant components of the Company's deferred income tax assets (liabilities) are as follows: Years ended June 30, 2019 July 1, 2018 (in thousands) Deferred income tax assets: Loss and credit carryforwards $ 10,955 $ 11,286 Accrued expenses and reserves 3,866 3,871 Stock-based compensation 1,798 1,344 Deferred compensation 2,150 1,711 Gross deferred income tax assets 18,769 18,212 Less: Valuation allowance (9,872 ) (9,972 ) Deferred tax assets, net 8,897 8,240 Deferred income tax liabilities: Other intangibles (14,664 ) (14,983 ) Tax in excess of book depreciation (23,131 ) (19,457 ) Deferred tax liabilities (37,795 ) (34,440 ) Net deferred income tax liabilities $ (28,898 ) $ (26,200 ) not not not June 30, 2019, $27.8 not 2022. $3.3 not 2034. The Company files income tax returns in the U.S. federal jurisdiction, various state jurisdictions, and various foreign countries. The Company is currently undergoing its U.S. federal examination for fiscal 2017, 2018 2015. 2014 The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. At June 30, 2019, $0.9 $0.2 twelve |
Note 12 - Capital Stock
Note 12 - Capital Stock | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Capital Stock Disclosure [Text Block] | 12. Holders of Class A common stock generally have the same rights as the holders of Class B common stock, except that holders of Class A common stock have one 10 may may one one one 2018, 78,780 none 2019. The Company has a stock repurchase plan through which purchases can be made from time to time in the open market and through privately negotiated transactions, subject to general market conditions. The repurchase program is financed utilizing available cash. In October 2016, $25 August 2017, $30.0 June 27, 2019 $30.0 $14.8 1,230,303 $12.2 1,269,059 $10.7 1,120,706 June 30, 2019, July 1, 2018 July 2, 2017, June 30, 2019, $30.0 The Company has stock options and restricted stock awards outstanding to participants under the 1 800 2003 October 22, 2009, October 28, 2011 September 14, 2016) ( |
Note 13 - Stock Based Compensat
Note 13 - Stock Based Compensation | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | 13. The Plan is administered by the Compensation Committee or such other Board committee (or the entire Board) as may June 30, 2019, 4.5 1999 The amounts of stock-based compensation expense recognized within operating income ( 1 Years Ended June 30, 2019 July 1, 2018 July 2, 2017 (2) (in thousand s ) Stock options $ 315 $ 429 $ 446 Restricted stock awards 5,995 3,297 5,248 Total 6,310 3,726 5,694 Deferred income tax benefit 1,578 961 2,213 Stock-based compensation expense, net $ 4,732 $ 2,765 $ 3,481 Stock based compensation expense is recorded within the following line items of operating expenses: Years Ended June 30, 2019 July 1, 2018 July 2, 2017 (2) (in thousands) Marketing and sales $ 2,725 $ 989 $ 1,624 Technology and development 411 198 315 General and administrative 3,174 2,539 3,755 Total $ 6,310 $ 3,726 $ 5,694 ( 1 Stock-based compensation expense has not Note 15 ( 2 Excludes approximately $0.4 May, May Stock Options The Company did not 2019, 2018 2017. June 30, 2019: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in years) (in thousands) Outstanding beginning of period 1,968,234 $ 2.35 Granted - $ - Exercised (601,234 ) $ 2.06 Forfeited/Expired (2,000 ) $ 2.22 Outstanding end of period 1,365,000 $ 2.48 2.1 $ 22,388 Exercisable at June 30, 2019 1,235,000 $ 2.43 2.0 $ 20,312 The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of fiscal 2018 June 30, 2019. June 30, 2019, July 1, 2018 July 2, 2017 $7.8 $1.1 $0.5 The following table summarizes information about stock options outstanding at June 30, 2019: Options Outstanding Options Exercisable Exercise Price Options Outstanding Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price Options Exercisable Weighted- Average Exercise Price (in years) $ 1.79 330,000 1.3 $ 1.79 330,000 $ 1.79 $ 2.44 25,000 0.4 $ 2.44 25,000 $ 2.44 $ 2.63 1,000,000 2.3 $ 2.63 875,000 $ 2.63 $ 10.20 10,000 5.8 $ 10.20 5,000 $ 10.20 1,365,000 2.1 $ 2.48 1,235,000 $ 2.43 As of June 30, 2019, not $0.1 0.4 Restricted Stock The Company grants shares of Common Stock to its employees that are subject to restrictions on transfer and risk of forfeiture until fulfillment of applicable service conditions and, in certain cases, holding periods (Restricted Stock). The following table summarizes the activity of non-vested restricted stock during the year ended June 30, 2019: Shares Weighted Average Grant Date Fair Value Non-vested – beginning of period 962,273 $ 7.72 Granted 953,066 $ 12.74 Vested (411,600 ) $ 7.91 Forfeited (65,147 ) $ 11.62 Non-vested - end of period 1,438,592 $ 10.81 The fair value of non-vested shares is determined based on the closing stock price on the grant date. As of June 30, 2019, $9.7 1.6 |
Note 14 - Employee Retirement P
Note 14 - Employee Retirement Plans | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 14. The Company has a 401 21 one may 401 not may $0.9 $0.0 $0.0 2019, 2018, 2017, The Company also has a nonqualified supplemental deferred compensation plan for certain executives pursuant to Section 409A 1% 100% December 31, 2016, 50% $2,500. January 1, 2017, June 30, 2019, July 1, 2018, $11.8 $9.4 July 2, 2017 $0.1 $0.7 $0.8 $1.0 June 30, 2019, July 1, 2018 July 2, 2017, |
Note 15 - Business Segments
Note 15 - Business Segments | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 15. The Company’s management reviews the results of the Company’s operations by the following three • 1 800 • BloomNet Wire Service, and • Gourmet Foods & Gift Baskets Segment performance is measured based on contribution margin, which includes only the direct controllable revenue and operating expenses of the segments. As such, management’s measure of profitability for these segments does not not Years ended Net revenues June 30, 2019 July 1, 2018 July 2, 2017 (in thousands) Net revenues: 1-800-Flowers.com Consumer Floral $ 497,765 $ 457,460 $ 437,132 BloomNet Wire Service 102,876 89,569 87,700 Gourmet Foods & Gift Baskets 648,418 605,523 670,677 Corporate 1,105 1,114 1,102 Intercompany eliminations (1,541 ) (1,745 ) (2,986 ) Total net revenues $ 1,248,623 $ 1,151,921 $ 1,193,625 Years ended Operating Income from Continuing Operations June 30, 2019 July 1, 2018 July 2, 2017 (in thousands) Segment Contribution Margin: 1-800-Flowers.com Consumer Floral $ 49,653 $ 50,808 $ 51,860 BloomNet Wire Service 34,705 31,683 32,383 Gourmet Foods & Gift Baskets 82,319 70,927 77,312 Segment Contribution Margin Subtotal 166,677 153,418 161,555 Corporate (a) (91,604 ) (79,901 ) (81,820 ) Depreciation and amortization (29,965 ) (32,469 ) (33,376 ) Operating income $ 45,108 $ 41,048 $ 46,359 (a) Corporate expenses consist of the Company’s enterprise shared service cost centers, and include, among other items, Information Technology, Human Resources, Accounting and Finance, Legal, Executive and Customer Service Center functions, as well as Stock-Based Compensation. In order to leverage the Company’s infrastructure, these functions are operated under a centralized management platform, providing support services throughout the organization. The costs of these functions, other than those of the Customer Service Center, which are allocated directly to the above categories based upon usage, are included within corporate expenses as they are not The following tables represent a disaggregation of revenue from contracts with customers, by channel: Years Ended June 30, 2019 July 1, 2018 July 2, 2017 Consumer Floral BloomNet Wire Service Gourmet Food & Gift Baskets Consolidated Consumer Floral BloomNet Wire Service Gourmet Food & Gift Baskets Consolidated Consumer Floral BloomNet Wire Service Gourmet Food & Gift Baskets Consolidated (in thousands) Net revenues E-commerce $ 489,463 $ - $ 508,897 $ 998,360 $ 448,943 $ - $ 472,905 $ 921,848 $ 427,831 $ - $ 468,931 $ 896,762 Retail 4,706 - 45,862 50,568 4,743 - 46,860 51,603 4,769 - 76,321 81,090 Wholesale - 29,744 93,659 123,403 - 28,747 85,758 114,505 - 27,033 125,425 152,458 BloomNet services - 73,132 - 73,132 - 60,822 - 60,822 - 60,667 - 60,667 Other 3,596 - - 3,596 3,774 - - 3,774 4,532 - - 4,532 Corporate - - - 1,105 - - - 1,114 - - - 1,102 Eliminations - - - (1,541 ) - - - (1,745 ) - - - (2,986 ) Total n et revenues $ 497,765 $ 102,876 $ 648,418 $ 1,248,623 $ 457,460 $ 89,569 $ 605,523 $ 1,151,921 $ 437,132 $ 87,700 $ 670,677 $ 1,193,625 |
Note 16 - Commitments and Conti
Note 16 - Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 16. Leases The Company currently leases office, store facilities, and equipment under various leases through fiscal 2034. As of June 30, 2019, one Operating Leases (in thousands) 2020 $ 16,588 2021 13,490 2022 12,081 2023 9,957 2024 9,498 Thereafter 44,953 Total minimum lease payments $ 106,567 At June 30, 2019, $3.7 $20.0 $19.6 $28.7 June 30, 2019, July 1, 2018 July 2, 2017, Other Commitments The Company’s purchase commitments consist primarily of inventory, equipment and technology (hardware and software) purchase orders made in the ordinary course of business, most of which have terms less than one June 30, 2019, one $5.5 The Company had approximately $1.6 $1.8 June 30, 2019 July 1, 2018, Litigation There are various claims, lawsuits, and pending actions against the Company and its subsidiaries incident to the operations of its businesses. It is the opinion of management, after consultation with counsel, that the ultimate resolution of such claims, lawsuits and pending actions will not |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | 1 800 Schedule II - Valuation and Qualifying Accounts Additions Description Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts- Describe Deductions- Describe (a) Balance at End of Period Reserves and allowances deducted from asset accounts: Reserve for estimated doubtful accounts-accounts/notes receivable Year Ended June 30, 2019 $ 2,418,000 $ 1,383,000 $ - $ (1,024,000 ) $ 2,777,000 Year Ended July 1, 2018 $ 1,846,000 $ 1,068,000 $ - $ (496,000 ) $ 2,418,000 Year Ended July 2, 2017 $ 2,104,000 $ 1,158,000 $ - $ (1,416,000 ) $ 1,846,000 (a) Reduction in reserve due to write-off of accounts/notes receivable balances. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Basis of Presentation The consolidated financial statements include the accounts of 1 800 2019, 2018 2017, 1% |
Fiscal Period, Policy [Policy Text Block] | Fiscal Year The Company’s fiscal year is a 52 53 June 30. 2019, 2018, 2017, June 30, 2019, July 1, 2018, July 2, 2017, 52 |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and cash equivalents consist of demand deposits with banks, highly liquid money market funds, United States government securities, overnight repurchase agreements and commercial paper with maturities of three |
Inventory, Policy [Policy Text Block] | Inventories Inventories are valued at the lower of cost or market using the first first |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Depreciation expense is computed using the straight-line method over the assets’ estimated useful lives. Amortization of leasehold improvements and capital leases is computed using the straight-line method over the shorter of the estimated useful lives and the initial lease terms. The Company capitalizes certain internal and external costs incurred to acquire or develop internal-use software. Capitalized software costs are amortized on a straight-line basis over the estimated useful life of the software. Orchards in production, consisting of direct labor and materials, supervision and other items, are capitalized as part of capital projects in progress – orchards until the orchards produce fruit in commercial quantities. Upon attaining commercial levels of production, the capital investments in these orchards are recorded as land improvements. Estimated useful lives are periodically reviewed, and where appropriate, changes are made prospectively. The Company’s property, plant and equipment are depreciated using the following estimated lives: Building and building improvements (years) 10-40 Leasehold improvements (years) 3-10 Furniture, fixtures and production equipment (years) 3-10 Software (years) 3-7 Orchards in production and land improvements (years) 15-35 Property, plant and equipment are reviewed for impairment whenever changes in circumstances or events may not |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in each business combination, with the carrying value of the Company’s goodwill allocated to its reporting units, in accordance with the acquisition method of accounting. Goodwill is not fourth not may In applying the goodwill impairment test, the Company has the option to perform a qualitative test (also known as “Step 0” two 1” 2” 0 first not may not not” two The first 1” two no second 2” not 2 2, The Company generally estimates the fair value of a reporting unit using an equal weighting of the income and market approaches. The Company uses industry accepted valuation models and set criteria that are reviewed and approved by various levels of management and, in certain instances, the Company engages third first During fiscal year 2019, not 0 1 2018 2017, 0 not not” |
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | Other Intangibles, net Other intangibles consist of definite-lived intangible assets (such as investment in licenses, customer lists, and others) and indefinite-lived intangible assets (such as acquired trade names and trademarks). The cost of definite-lived intangible assets is amortized to reflect the pattern of economic benefits consumed, over the estimated periods benefited, ranging from 3 16 not Definite-lived intangibles are reviewed for impairment whenever changes in circumstances or events may not The Company tests indefinite-lived intangible assets for impairment at least annually, during the fourth may not 0” 0 not may not not” third During fiscal year 2019, not 0 2018 2017, 0 not not” |
Business Combinations Policy [Policy Text Block] | Business Combinations The Company accounts for business combinations in accordance with ASC Topic 805, not 3 |
Deferred Charges, Policy [Policy Text Block] | Deferred Catalog Costs The Company capitalizes the costs of producing and distributing its catalogs. Starting in fiscal 2019, No. 2014 09 2018 2017. $2.8 $3.0 June 30, 2019 July 1, 2018 |
Investment, Policy [Policy Text Block] | Investments Equity investments accounted for under the equity method The Company has certain investments in non-marketable equity instruments of private companies. The Company accounts for these investments using the equity method if they provide the Company the ability to exercise significant influence, but not 20% 50%, The Company’s equity method investment is comprised of an interest in Flores Online, a Sao Paulo, Brazil based Internet floral and gift retailer, that the Company originally acquired on May 31, 2012. 24.9% $0.5 June 30, 2019 $0.6 July 1, 2018, June 30, 2019, July 1, 2018 July 2, 2017 $0.1 December 31, 2017, 5% 5% $0.1 $0.2 December 31, 2017. Equity investments without a readily determinable fair value Investments in non-marketable equity instruments of private companies, where the Company does not $1.6 June 30, 2019 $1.7 July 1, 2018, $1.5 Equity investments with a readily determinable fair value The Company also holds certain trading securities associated with its Non-Qualified Deferred Compensation Plan (“NQDC Plan”). These investments are measured using quoted market prices at the reporting date and are included within the “Other assets” line item in the consolidated balance sheets (see Note 10 ) |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company maintains cash and cash equivalents with high quality financial institutions. Concentration of credit risk with respect to accounts receivable is limited due to the Company's large number of customers and their dispersion throughout the United States, and the fact that a substantial portion of receivables are related to balances owed by major credit card companies. Allowances relating to consumer, corporate and franchise accounts receivable ( $2.8 June 30, 2019 $2.4 July 1, 2018) |
Revenue [Policy Text Block] | Revenue Recognition Net revenue is measured based on the amount of consideration that we expect to receive, reduced by discounts and estimates for credits and returns (calculated based upon previous experience and management’s evaluation). Service and outbound shipping charged to customers are recognized at the time the related merchandise revenues are recognized and are included in net revenues. Inbound and outbound shipping and delivery costs are included in cost of revenues. Net revenues exclude sales and other similar taxes collected from customers. A description of our principal revenue generating activities is as follows: - E-commerce revenues - consumer products sold through our online and telephonic channels. Revenue is recognized when control of the merchandise is transferred to the customer, which generally occurs upon shipment. Payment is typically due prior to the date of shipment. - Retail revenues - consumer products sold through our retail stores. Revenue is recognized when control of the goods is transferred to the customer, at the point of sale, at which time payment is received. - Wholesale revenues - products sold to our wholesale customers for subsequent resale. Revenue is recognized when control of the goods is transferred to the customer, in accordance with the terms of the applicable agreement. Payment terms are typically 30 - BloomNet Services - membership fees as well as other service offerings to florists. Membership and other subscription-based fees are recognized monthly as earned. Services revenues related to orders sent through the floral network are variable, based on either the number of orders or the value of orders, and are recognized in the period in which the orders are delivered. The contracts within BloomNet Services are typically month-to-month and as a result no 30 Deferred R evenues Deferred revenues are recorded when the Company has received consideration (i.e., advance payment) before satisfying its performance obligations. As such, customer orders are recorded as deferred revenue prior to shipment or rendering of product or services. Deferred revenues primarily relate to e-commerce orders placed, but not Our total deferred revenue as of July 1, 2018 $13.5 $13.5 June 30, 2019. June 30, 2019 $17.3 |
Cost of Goods and Service [Policy Text Block] | Cost of Revenues Cost of revenues consists primarily of florist fulfillment costs (fees paid directly to florists), the cost of floral and non-floral merchandise sold from inventory or through third |
Selling, General and Administrative Expenses, Policy [Policy Text Block] | Marketing and Sales Marketing and sales expense consists primarily of advertising expenses, catalog costs, online portal and search expenses, retail store and fulfillment operations (other than costs included in cost of revenues), and customer service center expenses, as well as the operating expenses of the Company’s departments engaged in marketing, selling and merchandising activities. The Company expenses all advertising costs, with the exception of catalog costs (see Deferred Catalog Costs first $147.8 $138.2 $137.5 June 30, 2019, July 1, 2018 July 2, 2017, |
Research, Development, and Computer Software, Policy [Policy Text Block] | Technology and Development Technology and development expense consists primarily of payroll and operating expenses of the Company’s information technology group, costs associated with its websites, including hosting, content development and maintenance and support costs related to the Company’s order entry, customer service, fulfillment and database systems. Costs associated with the acquisition or development of software for internal use are capitalized if the software is expected to have a useful life beyond one three seven one |
Share-based Payment Arrangement [Policy Text Block] | Stock-Based Compensation The Company records compensation expense associated with restricted stock awards and other forms of equity compensation based upon the fair value of stock-based awards as measured at the grant date. The cost associated with share-based awards that are subject solely to time-based vesting requirements is recognized over the awards’ service period for the entire award on a straight-line basis. The cost associated with performance-based equity awards is recognized for each tranche over the service period, based on an assessment of the likelihood that the applicable performance goals will be achieved. |
Derivatives, Policy [Policy Text Block] | Derivatives and H edging The Company does not not June 30, 2019 July 1, 2018. |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company uses the asset and liability method to account for income taxes. The Company has established deferred tax assets and liabilities for temporary differences between the financial reporting bases and the income tax bases of its assets and liabilities at enacted tax rates expected to be in effect when such assets or liabilities are realized or settled. The Company recognizes as a deferred tax asset, the tax benefits associated with losses related to operations. Realization of these deferred tax assets assumes that we will be able to generate sufficient future taxable income so that these assets will be realized. The factors that the Company considers in assessing the likelihood of realization include the forecast of future taxable income and available tax planning strategies that could be implemented to realize the deferred tax assets. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not 50% not” |
Earnings Per Share, Policy [Policy Text Block] | Net Income Per Share Basic net income per common share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted-average number of common and dilutive common equivalent shares (consisting primarily of employee stock options and unvested restricted stock awards) outstanding during the period . |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements - Adopted Revenue from Contracts with Customers. May 2014, No. 2014 09, 606” The Company adopted this ASC effective July 2, 2018 $0.3 $1.9 $0.8 $0.8 10 not not 2019. 2019 10 $1.8 June 30, 2019) not 15 Financial Instruments – Recognition and Measurement. January 2016, No. 2016 01, No. 2018 03, February 2018. no not no July 2, 2018. not Statement of Cash Flows. June 2016, 2016 15, 230 2016 15 July 2, 2018. not Business Combinations – Definition of a Business. January 2017, No. 2017 01, 805 2017 01 July 2, 2018. not Nonfinancial Assets – Derecognition. February 2017, No. 2017 05, 2017 05 July 2, 2018. not Stock Compensation – Modification Accounting. May 2017, No. 2017 09, 718 not July 2, 2018. not Cloud Computing Arrangements – Implementation Costs August 2018, No. 2018 15, 350 40 not July 2, 2018. not Recently Issued Accounting Pronouncements – Not Leases. February 2016, No. 2016 02, 842 We will adopt the new standard beginning with the first June 28, 2020. not not not not not 12 We are finalizing the impact of the standard to our accounting policies, processes, disclosures, and internal control over financial reporting and have implemented necessary upgrades to our existing lease system. The Company currently anticipates a material impact to its Consolidated Balance Sheets, but expects no $80.7 $78.7 Financial Instruments – Measurement of Credit Losses. June 2016, No. 2016 13, 326 2016 13 2016 13 July 4, 2021, Goodwill – Impairment Test January 2017, No. 2017 04, 350 2 2017 04, July 4, 2021, not U.S. Tax Reform On December 22, 2017, 35% 21%. June, 28% 2018, 21% Shortly after the Tax Act was enacted, the SEC staff issued Staff Accounting Bulletin No. 118, 118” 118 no one may 740. 118 second 2019, no |
Reclassification, Policy [Policy Text Block] | Reclassifications Certain balances in the prior fiscal years have been reclassified to conform to the presentation in the current fiscal year. |
Note 2 - Significant Accounti_2
Note 2 - Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Property Plant and Equipment Estimated Useful Lives [Table Text Block] | Building and building improvements (years) 10-40 Leasehold improvements (years) 3-10 Furniture, fixtures and production equipment (years) 3-10 Software (years) 3-7 Orchards in production and land improvements (years) 15-35 |
Note 3 - Net Income Per Commo_2
Note 3 - Net Income Per Common Share from Continuing Operations (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Years Ended June 30, 2019 July 1, 2018 July 2, 2017 (in thousands, except per share data) Numerator: Net income $ 34,766 $ 40,791 $ 44,041 Denominator: Weighted average shares outstanding 64,342 64,666 65,191 Effect of dilutive securities: Employee stock options 1,404 1,580 1,519 Employee restricted stock awards 711 692 1,025 Total effect of dilutive securities 2,115 2,272 2,544 Adjusted weighted-average shares and assumed conversions 66,457 66,938 67,735 Net income per common share from continuing operations attributable to 1-800-FLOWERS.COM, Inc. Basic $ 0.54 $ 0.63 $ 0.68 Diluted $ 0.52 $ 0.61 $ 0.65 |
Note 5 - Inventory (Tables)
Note 5 - Inventory (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | June 30, 2019 July 1, 2018 (in thousands) Finished goods $ 36,820 $ 33,930 Work-in-process 17,535 17,575 Raw materials 38,006 37,320 Total inventory $ 92,361 $ 88,825 |
Note 6 - Goodwill and Intangi_2
Note 6 - Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | Consumer Floral BloomNet Wire Service Gourmet Foods & Gift Baskets Total (in thousands) Balance at July 2, 2017 $ 17,441 $ - $ 45,149 $ 62,590 Balance at July 1, 2018 $ 17,441 $ - $ 45,149 $ 62,590 Balance at June 30, 2019 $ 17,441 $ - $ 45,149 $ 62,590 |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Table Text Block] | June 30, 2019 July 1, 2018 Amortization Period Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net (in years) (in thousands) Intangible assets with determinable lives Investment in licenses 14-16 $ 7,420 $ 6,148 $ 1,272 $ 7,420 $ 6,042 $ 1,378 Customer lists 3-10 12,184 9,798 2,386 12,184 9,354 2,830 Other 5-14 2,946 2,280 666 2,946 2,172 774 Total intangible assets with determinable lives 22,550 18,226 4,324 22,550 17,568 4,982 Trademarks with indefinite lives 55,291 - 55,291 54,841 - 54,841 Total identifiable intangible assets $ 77,841 $ 18,226 $ 59,615 $ 77,391 $ 17,568 $ 59,823 |
Note 7 - Property, Plant and _2
Note 7 - Property, Plant and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | June 30, 2019 July 1, 2018 (in thousands) Land $ 30,789 $ 30,789 Orchards in production and land improvements 11,339 10,962 Building and building improvements 59,236 58,450 Leasehold improvements 13,861 12,997 Production equipment and furniture and fixtures 61,415 53,066 Computer and telecommunication equipment 53,694 46,925 Software 132,078 115,944 Capital projects in progress - orchards 9,902 10,789 Property, plant and equipment, gross 372,314 339,922 Accumulated depreciation and amortization (205,633 ) (176,582 ) Property, plant and equipment, net $ 166,681 $ 163,340 |
Note 8 - Accrued Expenses (Tabl
Note 8 - Accrued Expenses (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | June 30, 2019 July 1, 2018 (in thousands) Payroll and employee benefits $ 28,585 $ 12,992 Deferred revenue 17,305 13,524 Accrued marketing expenses 14,423 12,472 Accrued florist payout 8,038 6,890 Other 28,442 27,421 Accrued Expenses $ 96,793 $ 73,299 |
Note 9 - Long-term Debt (Tables
Note 9 - Long-term Debt (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | June 30 , 2019 July 1, 2018 (in thousands) Revolver (1) $ - $ - Term Loan (1) 100,000 104,938 Deferred financing costs (3,027 ) (2,608 ) Total debt 96,973 102,330 Less: current debt 5,000 10,063 Long-term debt $ 91,973 $ 92,267 |
Note 10 - Fair Value Measurem_2
Note 10 - Fair Value Measurements (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Carrying Value Fair Value Measurements Assets (Liabilities) Level 1 Level 2 Level 3 (in thousands) Assets (liabilities) as of June 30, 2019: Trading securities held in a “rabbi trust” (1) $ 11,816 $ 11,816 $ - $ - $ 11,816 $ 11,816 $ - $ - Assets (liabilities) as of July 1, 2018: Trading securities held in a “rabbi trust” (1) $ 9,368 $ 9,368 $ - $ - $ 9,368 $ 9,368 $ - $ - |
Note 11 - Income Taxes (Tables)
Note 11 - Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Years ended June 30, 2019 July 1, 2018 July 2, 2017 (in thousands) Current provision: Federal $ 2,809 $ 3,385 $ 11,859 State 2,710 1,514 1,758 Foreign - - - Current income tax expense 5,519 4,899 13,617 Deferred provision (benefit): Federal 3,138 (9,331 ) (1,563 ) State (427 ) 1,648 (90 ) Foreign (13 ) 15 4 Deferred income tax expense (benefit) 2,698 (7,668 ) (1,649 ) Income tax expense (benefit) $ 8,217 $ (2,769 ) $ 11,968 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Years ended June 30, 2019 July 1, 2018 July 2, 2017 Tax at U.S. statutory rates 21.0 % 28.0 % 35.0 % State income taxes, net of federal tax benefit 4.4 5.7 2.3 Valuation allowance change (0.3 ) 2.6 14.9 Non-deductible compensation 0.7 - - Excess tax benefit from stock-based compensation (4.4 ) (1.6 ) (1.6 ) Domestic production deduction - (2.0 ) (2.1 ) Tax credits (1.8 ) (2.5 ) (1.7 ) Tax Act impact on deferred tax balance (1) - (32.0 ) - Return to provision (1.0 ) (5.8 ) - Tax effect of Fannie May disposition - - (25.3 ) Other, net 0.5 0.3 (0.1 ) Effective tax rate 19.1 % (7.3 )% 21.4 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Years ended June 30, 2019 July 1, 2018 (in thousands) Deferred income tax assets: Loss and credit carryforwards $ 10,955 $ 11,286 Accrued expenses and reserves 3,866 3,871 Stock-based compensation 1,798 1,344 Deferred compensation 2,150 1,711 Gross deferred income tax assets 18,769 18,212 Less: Valuation allowance (9,872 ) (9,972 ) Deferred tax assets, net 8,897 8,240 Deferred income tax liabilities: Other intangibles (14,664 ) (14,983 ) Tax in excess of book depreciation (23,131 ) (19,457 ) Deferred tax liabilities (37,795 ) (34,440 ) Net deferred income tax liabilities $ (28,898 ) $ (26,200 ) |
Note 13 - Stock Based Compens_2
Note 13 - Stock Based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Share-based Payment Arrangement, Cost by Plan [Table Text Block] | Years Ended June 30, 2019 July 1, 2018 July 2, 2017 (2) (in thousand s ) Stock options $ 315 $ 429 $ 446 Restricted stock awards 5,995 3,297 5,248 Total 6,310 3,726 5,694 Deferred income tax benefit 1,578 961 2,213 Stock-based compensation expense, net $ 4,732 $ 2,765 $ 3,481 |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | Years Ended June 30, 2019 July 1, 2018 July 2, 2017 (2) (in thousands) Marketing and sales $ 2,725 $ 989 $ 1,624 Technology and development 411 198 315 General and administrative 3,174 2,539 3,755 Total $ 6,310 $ 3,726 $ 5,694 |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in years) (in thousands) Outstanding beginning of period 1,968,234 $ 2.35 Granted - $ - Exercised (601,234 ) $ 2.06 Forfeited/Expired (2,000 ) $ 2.22 Outstanding end of period 1,365,000 $ 2.48 2.1 $ 22,388 Exercisable at June 30, 2019 1,235,000 $ 2.43 2.0 $ 20,312 |
Share-based Payment Arrangement, Option, Exercise Price Range [Table Text Block] | Options Outstanding Options Exercisable Exercise Price Options Outstanding Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price Options Exercisable Weighted- Average Exercise Price (in years) $ 1.79 330,000 1.3 $ 1.79 330,000 $ 1.79 $ 2.44 25,000 0.4 $ 2.44 25,000 $ 2.44 $ 2.63 1,000,000 2.3 $ 2.63 875,000 $ 2.63 $ 10.20 10,000 5.8 $ 10.20 5,000 $ 10.20 1,365,000 2.1 $ 2.48 1,235,000 $ 2.43 |
Schedule of Nonvested Share Activity [Table Text Block] | Shares Weighted Average Grant Date Fair Value Non-vested – beginning of period 962,273 $ 7.72 Granted 953,066 $ 12.74 Vested (411,600 ) $ 7.91 Forfeited (65,147 ) $ 11.62 Non-vested - end of period 1,438,592 $ 10.81 |
Note 15 - Business Segments (Ta
Note 15 - Business Segments (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Years ended Net revenues June 30, 2019 July 1, 2018 July 2, 2017 (in thousands) Net revenues: 1-800-Flowers.com Consumer Floral $ 497,765 $ 457,460 $ 437,132 BloomNet Wire Service 102,876 89,569 87,700 Gourmet Foods & Gift Baskets 648,418 605,523 670,677 Corporate 1,105 1,114 1,102 Intercompany eliminations (1,541 ) (1,745 ) (2,986 ) Total net revenues $ 1,248,623 $ 1,151,921 $ 1,193,625 Years ended Operating Income from Continuing Operations June 30, 2019 July 1, 2018 July 2, 2017 (in thousands) Segment Contribution Margin: 1-800-Flowers.com Consumer Floral $ 49,653 $ 50,808 $ 51,860 BloomNet Wire Service 34,705 31,683 32,383 Gourmet Foods & Gift Baskets 82,319 70,927 77,312 Segment Contribution Margin Subtotal 166,677 153,418 161,555 Corporate (a) (91,604 ) (79,901 ) (81,820 ) Depreciation and amortization (29,965 ) (32,469 ) (33,376 ) Operating income $ 45,108 $ 41,048 $ 46,359 |
Disaggregation of Revenue [Table Text Block] | Years Ended June 30, 2019 July 1, 2018 July 2, 2017 Consumer Floral BloomNet Wire Service Gourmet Food & Gift Baskets Consolidated Consumer Floral BloomNet Wire Service Gourmet Food & Gift Baskets Consolidated Consumer Floral BloomNet Wire Service Gourmet Food & Gift Baskets Consolidated (in thousands) Net revenues E-commerce $ 489,463 $ - $ 508,897 $ 998,360 $ 448,943 $ - $ 472,905 $ 921,848 $ 427,831 $ - $ 468,931 $ 896,762 Retail 4,706 - 45,862 50,568 4,743 - 46,860 51,603 4,769 - 76,321 81,090 Wholesale - 29,744 93,659 123,403 - 28,747 85,758 114,505 - 27,033 125,425 152,458 BloomNet services - 73,132 - 73,132 - 60,822 - 60,822 - 60,667 - 60,667 Other 3,596 - - 3,596 3,774 - - 3,774 4,532 - - 4,532 Corporate - - - 1,105 - - - 1,114 - - - 1,102 Eliminations - - - (1,541 ) - - - (1,745 ) - - - (2,986 ) Total n et revenues $ 497,765 $ 102,876 $ 648,418 $ 1,248,623 $ 457,460 $ 89,569 $ 605,523 $ 1,151,921 $ 437,132 $ 87,700 $ 670,677 $ 1,193,625 |
Note 16 - Commitments and Con_2
Note 16 - Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Operating Leases (in thousands) 2020 $ 16,588 2021 13,490 2022 12,081 2023 9,957 2024 9,498 Thereafter 44,953 Total minimum lease payments $ 106,567 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | Additions Description Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts- Describe Deductions- Describe (a) Balance at End of Period Reserves and allowances deducted from asset accounts: Reserve for estimated doubtful accounts-accounts/notes receivable Year Ended June 30, 2019 $ 2,418,000 $ 1,383,000 $ - $ (1,024,000 ) $ 2,777,000 Year Ended July 1, 2018 $ 1,846,000 $ 1,068,000 $ - $ (496,000 ) $ 2,418,000 Year Ended July 2, 2017 $ 2,104,000 $ 1,158,000 $ - $ (1,416,000 ) $ 1,846,000 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Interest Paid, Including Capitalized Interest, Operating and Investing Activities, Total | $ 4.7 | $ 4 | $ 4.4 |
Income Taxes Paid, Net, Total | $ 8.8 | $ 5.2 | $ 6.8 |
Note 1 - Description of Busin_2
Note 1 - Description of Business (Details Textual) | 12 Months Ended |
Jun. 30, 2019 | |
Minimum Period Over Which Gifts Have Been Provided to Customers | 40 years |
Percentage of Satisfaction Guaranteed | 100.00% |
Note 2 - Significant Accounti_3
Note 2 - Significant Accounting Policies (Details Textual) - USD ($) $ in Millions | Jul. 02, 2018 | Dec. 31, 2017 | Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | Jul. 01, 2019 |
Prepaid Catalog Expenses Current | $ 2.8 | $ 3 | ||||
Cost Method Investments | 1.6 | 1.7 | ||||
Accounts Receivable, Allowance for Credit Loss, Current | 2.8 | 2.4 | ||||
Contract with Customer, Liability, Current | 17.3 | 13.5 | ||||
Contract with Customer, Liability, Revenue Recognized | 13.5 | |||||
Advertising Expense | $ 147.8 | $ 138.2 | $ 137.5 | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 28.00% | 35.00% | |||
Customer's Gift Card [Member] | ||||||
Contract with Customer, Liability, Current | $ 1.8 | |||||
Accounting Standards Update 2014-09 [Member] | ||||||
Cumulative Effect on Retained Earnings, Net of Tax, Total | $ 0.3 | |||||
Accounting Standards Update 2014-09 [Member] | Reduction of Accrued Expenses [Member] | ||||||
Cumulative Effect on Retained Earnings, Net of Tax, Total | 1.9 | |||||
Accounting Standards Update 2014-09 [Member] | Decrease in Prepaid Expense [Member] | ||||||
Cumulative Effect on Retained Earnings, Net of Tax, Total | (0.8) | |||||
Accounting Standards Update 2014-09 [Member] | Increase in Accrued Expenses [Member] | ||||||
Cumulative Effect on Retained Earnings, Net of Tax, Total | $ (0.8) | |||||
Accounting Standards Update 2016-02 [Member] | Subsequent Event [Member] | ||||||
Operating Lease, Liability, Total | $ 80.7 | |||||
Operating Lease, Right-of-Use Asset | $ 78.7 | |||||
Flores Online [Member] | ||||||
Equity Method Investment, Ownership Percentage | 24.90% | |||||
Equity Method Investments | $ 0.5 | $ 0.6 | ||||
Income (Loss) from Equity Method Investments, Total | 0.1 | 0.1 | $ 0.1 | |||
Isabella Flores [Member] | ||||||
Percentage of Equity Method Investment Transferred to a Cost Method Investment | 5.00% | |||||
Cost Method Investment, Ownership Percentage | 5.00% | |||||
Cost Method Investments | $ 0.1 | |||||
Isabella Flores [Member] | Other Income (Expense), Net [Member] | ||||||
Equity Method Investment, Other than Temporary Impairment | $ 0.2 | |||||
Euroflorist [Member] | ||||||
Cost Method Investments | $ 1.5 | |||||
Minimum [Member] | ||||||
Finite-Lived Intangible Asset, Useful Life | 3 years | |||||
Minimum [Member] | Software and Software Development Costs [Member] | ||||||
Property, Plant and Equipment, Useful Life | 3 years | |||||
Maximum [Member] | ||||||
Finite-Lived Intangible Asset, Useful Life | 16 years | |||||
Maximum [Member] | Software and Software Development Costs [Member] | ||||||
Property, Plant and Equipment, Useful Life | 7 years | |||||
International Sources [Member] | ||||||
Revenue Net Percent | 1.00% | 1.00% | 1.00% |
Note 2 - Significant Accounti_4
Note 2 - Significant Accounting Policies - Property, Plant and Equipment (Details) | 12 Months Ended |
Jun. 30, 2019 | |
Minimum [Member] | Building and Building Improvements [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 10 years |
Minimum [Member] | Leasehold Improvements [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 3 years |
Minimum [Member] | Furniture and Fixtures [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 3 years |
Minimum [Member] | Software and Software Development Costs [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 3 years |
Minimum [Member] | Orchards in Production and Land Improvements [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 15 years |
Maximum [Member] | Building and Building Improvements [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 40 years |
Maximum [Member] | Leasehold Improvements [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 10 years |
Maximum [Member] | Furniture and Fixtures [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 10 years |
Maximum [Member] | Software and Software Development Costs [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 7 years |
Maximum [Member] | Orchards in Production and Land Improvements [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 35 years |
Note 3 - Net Income Per Commo_3
Note 3 - Net Income Per Common Share from Continuing Operations - Computation of Basic and Diluted Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | Jul. 02, 2017 | |
Net income | $ 34,766 | $ 40,791 | $ 44,041 | $ 44,041 |
Weighted average shares outstanding (in shares) | 64,342 | 64,666 | 65,191 | |
Effect of dilutive securities (in shares) | 2,115 | 2,272 | 2,544 | |
Adjusted weighted-average shares and assumed conversions (in shares) | 66,457 | 66,938 | 67,735 | |
Basic (in dollars per share) | $ 0.54 | $ 0.63 | $ 0.68 | |
Diluted (in dollars per share) | $ 0.52 | $ 0.61 | $ 0.65 | |
Share-based Payment Arrangement, Option [Member] | ||||
Effect of dilutive securities (in shares) | 1,404 | 1,580 | 1,519 | |
Restricted Stock [Member] | ||||
Effect of dilutive securities (in shares) | 711 | 692 | 1,025 |
Note 4 - Dispositions (Details
Note 4 - Dispositions (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Aug. 31, 2018 | Jul. 02, 2017 | Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | Mar. 15, 2017 | |
Gain (Loss) on Disposition of Business | $ 14,607 | |||||
Fannie May [Member] | ||||||
Disposal Group, Including Discontinued Operation, Period of Post-closing Services | 1 year 240 days | |||||
Disposal Group, Including Discontinued Operation, Revenue | $ 85,600 | |||||
Fannie May [Member] | Other Nonoperating Income (Expense) [Member] | ||||||
Gain (Loss) on Disposition of Business | $ 14,600 | |||||
Fannie May [Member] | Ferrero [Member] | ||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 115,000 | |||||
Working Capital Adjustment in Disposition of Business | $ 8,500 |
Note 5 - Inventory - Summary of
Note 5 - Inventory - Summary of Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jul. 01, 2018 |
Finished goods | $ 36,820 | $ 33,930 |
Work-in-process | 17,535 | 17,575 |
Raw materials | 38,006 | 37,320 |
Total inventory | $ 92,361 | $ 88,825 |
Note 6 - Goodwill and Intangi_3
Note 6 - Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Goodwill and Intangible Asset Impairment, Total | $ 0 | $ 0 | $ 0 |
Amortization of Intangible Assets, Total | 700 | $ 1,400 | $ 1,400 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 600 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 600 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 500 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 500 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 500 | ||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | $ 1,600 |
Note 6 - Goodwill and Intangi_4
Note 6 - Goodwill and Intangible Assets - Goodwill by Segment (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 |
Goodwill | $ 62,590 | $ 62,590 | $ 62,590 |
Consumer Floral [Member] | |||
Goodwill | 17,441 | 17,441 | 17,441 |
BloomNet Wire Service [Member] | |||
Goodwill | |||
Gourmet Food and Gift Baskets [Member] | |||
Goodwill | $ 45,149 | $ 45,149 | $ 45,149 |
Note 6 - Goodwill and Intangi_5
Note 6 - Goodwill and Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jul. 01, 2018 | |
Intangible assets with determinable lives, gross | $ 22,550 | $ 22,550 |
Accumulated amortization | 18,226 | 17,568 |
Intangible assets with determinable lives, net | 4,324 | 4,982 |
Trademarks with indefinite lives, gross | 55,291 | 54,841 |
Total identifiable intangible assets, gross | 77,841 | 77,391 |
Total identifiable intangible assets, net | $ 59,615 | 59,823 |
Minimum [Member] | ||
Finite-lived intangible asset, useful life (Year) | 3 years | |
Maximum [Member] | ||
Finite-lived intangible asset, useful life (Year) | 16 years | |
Licensing Agreements [Member] | ||
Intangible assets with determinable lives, gross | $ 7,420 | 7,420 |
Accumulated amortization | 6,148 | 6,042 |
Intangible assets with determinable lives, net | $ 1,272 | 1,378 |
Licensing Agreements [Member] | Minimum [Member] | ||
Finite-lived intangible asset, useful life (Year) | 14 years | |
Licensing Agreements [Member] | Maximum [Member] | ||
Finite-lived intangible asset, useful life (Year) | 16 years | |
Customer Lists [Member] | ||
Intangible assets with determinable lives, gross | $ 12,184 | 12,184 |
Accumulated amortization | 9,798 | 9,354 |
Intangible assets with determinable lives, net | $ 2,386 | 2,830 |
Customer Lists [Member] | Minimum [Member] | ||
Finite-lived intangible asset, useful life (Year) | 3 years | |
Customer Lists [Member] | Maximum [Member] | ||
Finite-lived intangible asset, useful life (Year) | 10 years | |
Other Intangible Assets [Member] | ||
Intangible assets with determinable lives, gross | $ 2,946 | 2,946 |
Accumulated amortization | 2,280 | 2,172 |
Intangible assets with determinable lives, net | $ 666 | $ 774 |
Other Intangible Assets [Member] | Minimum [Member] | ||
Finite-lived intangible asset, useful life (Year) | 5 years | |
Other Intangible Assets [Member] | Maximum [Member] | ||
Finite-lived intangible asset, useful life (Year) | 14 years |
Note 7 - Property, Plant and _3
Note 7 - Property, Plant and Equipment (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Depreciation, Total | $ 29.3 | $ 31.1 | $ 32 |
Note 7 - Property, Plant and _4
Note 7 - Property, Plant and Equipment - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jul. 01, 2018 |
Property, plant, and equipment, gross | $ 372,314 | $ 339,922 |
Accumulated depreciation and amortization | (205,633) | (176,582) |
Property, plant and equipment, net | 166,681 | 163,340 |
Land [Member] | ||
Property, plant, and equipment, gross | 30,789 | 30,789 |
Orchards in Production and Land Improvements [Member] | ||
Property, plant, and equipment, gross | 11,339 | 10,962 |
Building and Building Improvements [Member] | ||
Property, plant, and equipment, gross | 59,236 | 58,450 |
Leasehold Improvements [Member] | ||
Property, plant, and equipment, gross | 13,861 | 12,997 |
Furniture and Fixtures [Member] | ||
Property, plant, and equipment, gross | 61,415 | 53,066 |
Computer and Telecommunication Equipment [Member] | ||
Property, plant, and equipment, gross | 53,694 | 46,925 |
Software and Software Development Costs [Member] | ||
Property, plant, and equipment, gross | 132,078 | 115,944 |
Capital Projects in Progress [Member] | ||
Property, plant, and equipment, gross | $ 9,902 | $ 10,789 |
Note 8 - Accrued Expenses - Acc
Note 8 - Accrued Expenses - Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jul. 01, 2018 |
Payroll and employee benefits | $ 28,585 | $ 12,992 |
Deferred revenue | 17,305 | 13,524 |
Accrued marketing expenses | 14,423 | 12,472 |
Accrued florist payout | 8,038 | 6,890 |
Other | 28,442 | 27,421 |
Accrued Expenses | $ 96,793 | $ 73,299 |
Note 9 - Long-term Debt (Detail
Note 9 - Long-term Debt (Details Textual) - USD ($) $ in Thousands | May 31, 2019 | Jun. 30, 2019 | May 30, 2019 | Jul. 01, 2018 | |
Credit Facility 2014 [Member] | Revolving Credit Facility [Member] | |||||
Proceeds from Lines of Credit, Total | $ 200,000 | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 100,000 | ||||
Term Loan [Member] | |||||
Long-term Debt, Total | [1] | $ 100,000 | $ 104,938 | ||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 5,000 | ||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 5,000 | ||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 10,000 | ||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 10,000 | ||||
Long-term Debt, Maturities, Repayments of Principal in Year Five | $ 70,000 | ||||
Term Loan [Member] | Credit Facility 2014 [Member] | |||||
Long-term Debt, Total | $ 100,000 | $ 97,000 | |||
Debt Instrument, Number of Installment Payments | 19 | ||||
Debt Instrument, Principal Payment Percentage In First Eight Payments | 5.00% | ||||
Debt Instrument, Principal Payment Percentage In Remaining Eleven Payments | 10.00% | ||||
Debt Instrument, Principal Payment Due Upon Maturity | $ 62,500 | ||||
Term Loan [Member] | Credit Facility 2014 [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate, Increase (Decrease) | (0.25%) | ||||
Term Loan [Member] | Credit Facility 2014 [Member] | Base Rate [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate, Increase (Decrease) | (0.25%) | ||||
Line of Credit and Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument, Base Rate, Basis Spread on Variable Rate | 1.00% | ||||
Line of Credit and Term Loan [Member] | Fed Funds Effective Rate Overnight Index Swap Rate [Member] | |||||
Debt Instrument, Base Rate, Basis Spread on Variable Rate | 0.50% | ||||
[1] | On May 31, 2019, the Company and certain of its U.S. subsidiaries (collectively, the "Subsidiary Guarantors") entered into a Second Amended and Restated Credit Agreement (the "2019 Credit Agreement") with JPMorgan Chase Bank, N.A. as administrative agent, and a group of lenders. The 2019 Credit Agreement amended and restated the Company's existing amended and restated credit agreement dated as of December 23, 2016 (the "2016 Credit Agreement") to, among other modifications: (i) increase the amount of the outstanding term loan ("Term Loan") from approximately $97 million to $100 million, (ii) extend the maturity date of the outstanding Term Loan and the revolving credit facility ("Revolver") by approximately 29 months to May 31, 2024, and (iii) decrease the applicable interest rate margins for LIBOR and base rate loans by 25 basis points. The Term Loan is payable in 19 quarterly installments of principal and interest beginning on September 29, 2019, with escalating principal payments, at the rate of 5.0% per annum for the first eight payments, and 10.0% per annum for the remaining 11 payments, with the remaining balance of $62.5 million due upon maturity. The Revolver, in the aggregate amount of $200 million, subject to seasonal reduction to an aggregate amount of $100 million for the period from January 1 through August 1, may be used for working capital and general corporate purposes, subject to certain restrictions. |
Note 9 - Debt - Summary of Curr
Note 9 - Debt - Summary of Current and Long-term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jul. 01, 2018 | |
Deferred financing costs | $ (3,027) | $ (2,608) | |
Debt instrument, carrying amount | 96,973 | 102,330 | |
Less: current debt | 5,000 | 10,063 | |
Long-term debt | 91,973 | 92,267 | |
Line of Credit [Member] | |||
Revolver | [1] | ||
Term Loan [Member] | |||
Term Loan | [1] | $ 100,000 | $ 104,938 |
[1] | On May 31, 2019, the Company and certain of its U.S. subsidiaries (collectively, the "Subsidiary Guarantors") entered into a Second Amended and Restated Credit Agreement (the "2019 Credit Agreement") with JPMorgan Chase Bank, N.A. as administrative agent, and a group of lenders. The 2019 Credit Agreement amended and restated the Company's existing amended and restated credit agreement dated as of December 23, 2016 (the "2016 Credit Agreement") to, among other modifications: (i) increase the amount of the outstanding term loan ("Term Loan") from approximately $97 million to $100 million, (ii) extend the maturity date of the outstanding Term Loan and the revolving credit facility ("Revolver") by approximately 29 months to May 31, 2024, and (iii) decrease the applicable interest rate margins for LIBOR and base rate loans by 25 basis points. The Term Loan is payable in 19 quarterly installments of principal and interest beginning on September 29, 2019, with escalating principal payments, at the rate of 5.0% per annum for the first eight payments, and 10.0% per annum for the remaining 11 payments, with the remaining balance of $62.5 million due upon maturity. The Revolver, in the aggregate amount of $200 million, subject to seasonal reduction to an aggregate amount of $100 million for the period from January 1 through August 1, may be used for working capital and general corporate purposes, subject to certain restrictions. |
Note 10 - Fair Value Measurem_3
Note 10 - Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jul. 01, 2018 | |
Trading securities held in a “rabbi trust” | [1] | $ 11,816 | $ 9,368 |
Assets (liabilities) measured at fair value | 11,816 | 9,368 | |
Fair Value, Inputs, Level 1 [Member] | |||
Trading securities held in a “rabbi trust” | [1] | 11,816 | 9,368 |
Assets (liabilities) measured at fair value | 11,816 | 9,368 | |
Fair Value, Inputs, Level 2 [Member] | |||
Trading securities held in a “rabbi trust” | [1] | ||
Assets (liabilities) measured at fair value | |||
Fair Value, Inputs, Level 3 [Member] | |||
Trading securities held in a “rabbi trust” | [1] | ||
Assets (liabilities) measured at fair value | |||
[1] | The Company has established a Non-qualified Deferred Compensation Plan (the "NQDC Plan") for certain members of senior management. Deferred compensation plan assets are invested in mutual funds held in a "rabbi trust," which is restricted for payment to participants of the NQDC Plan. Trading securities held in the rabbi trust are measured using quoted market prices at the reporting date and are included in the "Other assets" line item, with the corresponding liability included in the "Other liabilities" line item in the consolidated balance sheets. |
Note 11 - Income Taxes (Details
Note 11 - Income Taxes (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 28.00% | 35.00% |
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ (12.2) | ||
Deferred Tax Assets, Capital Loss Carryforwards | $ 27.8 | ||
Operating Loss Carryforwards, Total | $ 3.3 | ||
Income Tax Examination, Year under Examination | 2017 2018 | ||
Unrecognized Tax Benefits, Ending Balance | $ 0.9 | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 0.2 | ||
Domestic Tax Authority [Member] | |||
Open Tax Year | 2015 2016 2017 2018 | ||
Foreign Tax Authority [Member] | |||
Open Tax Year | 2014 2015 2016 2017 2018 |
Note 11 - Income Taxes - Income
Note 11 - Income Taxes - Income Tax Provision From Continuing Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Federal | $ 2,809 | $ 3,385 | $ 11,859 |
State | 2,710 | 1,514 | 1,758 |
Foreign | |||
Current income tax expense | 5,519 | 4,899 | 13,617 |
Federal | 3,138 | (9,331) | (1,563) |
State | (427) | 1,648 | (90) |
Foreign | (13) | 15 | 4 |
Deferred income tax expense (benefit) | 2,698 | (7,668) | (1,649) |
Income tax expense (benefit) | $ 8,217 | $ (2,769) | $ 11,968 |
Note 11 - Income Taxes - Effect
Note 11 - Income Taxes - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | |||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 28.00% | 35.00% | |
State income taxes, net of federal tax benefit | 4.40% | 5.70% | 2.30% | |
Valuation allowance change | (0.30%) | 2.60% | 14.90% | |
Non-deductible compensation | 0.70% | |||
Excess tax benefit from stock-based compensation | (4.40%) | (1.60%) | (1.60%) | |
Domestic production deduction | (2.00%) | (2.10%) | ||
Tax credits | (1.80%) | (2.50%) | (1.70%) | |
Tax Act impact on deferred tax balance (1) | [1] | (32.00%) | ||
Return to provision | (1.00%) | (5.80%) | ||
Tax effect of Fannie May disposition | (25.30%) | |||
Other, net | 0.50% | 0.30% | (0.10%) | |
Effective tax rate | 19.10% | (7.30%) | 21.40% | |
[1] | On December 22, 2017, the U.S. government enacted comprehensive tax legislation pursuant to the Tax Cuts and Jobs Act (the "Tax Act"), which significantly revised the ongoing U.S. corporate income tax law by lowering the U.S. federal corporate income tax rate from 35% to 21%. Due to the Company's fiscal year end, the lower income tax rate was phased in, resulting in a U.S. statutory federal rate of approximately 28% for the Company's fiscal year ended July 1, 2018, and 21% for the fiscal year ended June 30, 2019. Accordingly, for the fiscal year ended July 1, 2018, the Company recorded a deferred tax benefit of $12.2 million related to the change in deferred tax liabilities. Shortly after the Tax Act was enacted, the SEC Staff issued Staff Accounting Bulletin 118, "Income Tax Implications of the Tax Cuts and Jobs Act" ("SAB 118"), which provided guidance on accounting for the Tax Act’s impact. SAB 118 provided a measurement period during which a company acting in good faith may complete the accounting for the impacts of the Tax Act. We completed the assessment of the income tax effects of the Tax Act in the second quarter of fiscal 2019, with no adjustments recorded to the provisional amounts. |
Note 11 - Income Taxes - Deferr
Note 11 - Income Taxes - Deferred Income Tax Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jul. 01, 2018 |
Loss and credit carryforwards | $ 10,955 | $ 11,286 |
Accrued expenses and reserves | 3,866 | 3,871 |
Stock-based compensation | 1,798 | 1,344 |
Deferred compensation | 2,150 | 1,711 |
Gross deferred income tax assets | 18,769 | 18,212 |
Less: Valuation allowance | (9,872) | (9,972) |
Deferred tax assets, net | 8,897 | 8,240 |
Other intangibles | (14,664) | (14,983) |
Tax in excess of book depreciation | (23,131) | (19,457) |
Deferred tax liabilities | (37,795) | (34,440) |
Net deferred income tax liabilities | $ (28,898) | $ (26,200) |
Note 12 - Capital Stock (Detail
Note 12 - Capital Stock (Details Textual) $ in Thousands | 12 Months Ended | ||||||
Jun. 30, 2019USD ($)shares | Jul. 01, 2018USD ($)shares | Jul. 02, 2017USD ($) | Jul. 02, 2017USD ($)shares | Jun. 27, 2019USD ($) | Aug. 30, 2017USD ($) | Oct. 31, 2016USD ($) | |
Conversion Of Stock Shares Of Class A Common Stock Converted From A Share Of Class B Common Stock | 1 | ||||||
Stock Repurchase Program, Authorized Amount | $ | $ 30,000 | $ 30,000 | $ 30,000 | $ 25,000 | |||
Treasury Stock, Value, Acquired, Cost Method | $ | $ 14,766 | $ 12,176 | $ 10,735 | $ 10,700 | |||
Treasury Stock, Shares, Acquired | 1,230,303 | 1,269,059 | 1,120,706 | ||||
Common Class A [Member] | |||||||
Number of Voting Rights Per Share | 1 | ||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 0 | 78,780 | |||||
Common Class B [Member] | |||||||
Number of Voting Rights Per Share | 10 |
Note 13 - Stock Based Compens_3
Note 13 - Stock Based Compensation (Details Textual) - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 4,500 | ||
Share-based Payment Arrangement, Accelerated Cost | $ 0.4 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 7.8 | $ 1.1 | $ 0.5 |
Share-based Payment Arrangement, Option [Member] | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 0.1 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 146 days | ||
Restricted Stock [Member] | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 9.7 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 219 days |
Note 13 - Stock Based Compens_4
Note 13 - Stock Based Compensation - Stock-based Compensation Expense Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |||
Allocated share-based compensation expense | $ 6,310 | $ 3,726 | |||
Allocated share-based compensation expense | [1],[2] | $ 5,694 | |||
Deferred income tax benefit | 1,578 | 961 | 2,213 | [2] | |
Allocated share-based compensation expense, net | 4,732 | 2,765 | 3,481 | [2] | |
Share-based Payment Arrangement, Option [Member] | |||||
Allocated share-based compensation expense | 315 | 429 | |||
Allocated share-based compensation expense | [2] | 446 | |||
Restricted Stock [Member] | |||||
Allocated share-based compensation expense | $ 5,995 | $ 3,297 | |||
Allocated share-based compensation expense | [2] | $ 5,248 | |||
[1] | Excludes approximately $0.4 million of stock-based compensation expense recorded within the gain on the sale of Fannie May, resulting from the acceleration of vesting of shares for Fannie May personnel, upon closing of the disposition. | ||||
[2] | Excludes approximately $0.4 million of stock-based compensation expense recorded within the gain on the sale of Fannie May, resulting from the acceleration of vesting of shares for Fannie May personnel, upon closing of the disposition. |
Note 13 - Stock Based Compens_5
Note 13 - Stock Based Compensation - Allocation of Stock-based Compensation to Operating Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | ||
Allocated share-based compensation expense | $ 6,310 | $ 3,726 | ||
Allocated share-based compensation expense | [1],[2] | $ 5,694 | ||
Selling and Marketing Expense [Member] | ||||
Allocated share-based compensation expense | 2,725 | 989 | ||
Allocated share-based compensation expense | [1] | 1,624 | ||
Technology and Development [Member] | ||||
Allocated share-based compensation expense | 411 | 198 | ||
Allocated share-based compensation expense | [1] | 315 | ||
General and Administrative Expense [Member] | ||||
Allocated share-based compensation expense | $ 3,174 | $ 2,539 | ||
Allocated share-based compensation expense | [1] | $ 3,755 | ||
[1] | Excludes approximately $0.4 million of stock-based compensation expense recorded within the gain on the sale of Fannie May, resulting from the acceleration of vesting of shares for Fannie May personnel, upon closing of the disposition. | |||
[2] | Excludes approximately $0.4 million of stock-based compensation expense recorded within the gain on the sale of Fannie May, resulting from the acceleration of vesting of shares for Fannie May personnel, upon closing of the disposition. |
Note 13 - Stock Based Compens_6
Note 13 - Stock Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Outstanding (in shares) | 1,968,234 | ||
Outstanding, weighted average exercise price (in dollars per share) | $ 2.35 | ||
Granted, options (in shares) | 0 | 0 | 0 |
Granted, weighted average exercise price (in dollars per share) | |||
Exercised, options (in shares) | (601,234) | ||
Exercised, weighted average exercise price (in dollars per share) | $ 2.06 | ||
Forfeited, oprtions (in shares) | (2,000) | ||
Forfeited, weighted average exercise price (in dollars per share) | $ 2.22 | ||
Outstanding (in shares) | 1,365,000 | 1,968,234 | |
Outstanding, weighted average exercise price (in dollars per share) | $ 2.48 | $ 2.35 | |
Outstanding, weighted average remaining contractual term (Year) | 2 years 36 days | ||
Outstanding, aggregate intrinsic value | $ 22,388 | ||
Exercisable, options (in shares) | 1,235,000 | ||
Exercisable, weighted average exercise price (in dollars per share) | $ 2.43 | ||
Exercisable, weighted average remaining contractual term (Year) | 2 years | ||
Exercisable, aggregate intrinsic value | $ 20,312 |
Note 13 - Stock Based Compens_7
Note 13 - Stock Based Compensation - Stock Options Outstanding (Details) | 12 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Exercise price range, upper range limit (in dollars per share) | $ 1,365,000 |
Options outstanding (in shares) | shares | 2.1 |
Options outstanding, weighted-average remaining contractual life (Year) | 2 years 175 days |
Options outstanding, weighted-average exercise price (in dollars per share) | $ 1,235,000 |
Options exercisable (in shares) | shares | 2.43 |
Exercise Price Range 1 [Member] | |
Exercise price range, lower range limit (in dollars per share) | $ 1.79 |
Exercise price range, upper range limit (in dollars per share) | $ 330,000 |
Options outstanding (in shares) | shares | 1.3 |
Options outstanding, weighted-average remaining contractual life (Year) | 1 year 288 days |
Options outstanding, weighted-average exercise price (in dollars per share) | $ 330,000 |
Options exercisable (in shares) | shares | 1.79 |
Exercise Price Range 2 [Member] | |
Exercise price range, lower range limit (in dollars per share) | $ 2.44 |
Exercise price range, upper range limit (in dollars per share) | $ 25,000 |
Options outstanding (in shares) | shares | 0.4 |
Options outstanding, weighted-average remaining contractual life (Year) | 2 years 160 days |
Options outstanding, weighted-average exercise price (in dollars per share) | $ 25,000 |
Options exercisable (in shares) | shares | 2.44 |
Exercise Price Range 3 [Member] | |
Exercise price range, lower range limit (in dollars per share) | $ 2.63 |
Exercise price range, upper range limit (in dollars per share) | $ 1,000,000 |
Options outstanding (in shares) | shares | 2.3 |
Options outstanding, weighted-average remaining contractual life (Year) | 2 years 229 days |
Options outstanding, weighted-average exercise price (in dollars per share) | $ 875,000 |
Options exercisable (in shares) | shares | 2.63 |
Exercise Price Range 4 [Member] | |
Exercise price range, lower range limit (in dollars per share) | $ 10.20 |
Exercise price range, upper range limit (in dollars per share) | $ 10,000 |
Options outstanding (in shares) | shares | 5.8 |
Options outstanding, weighted-average remaining contractual life (Year) | 10 years 73 days |
Options outstanding, weighted-average exercise price (in dollars per share) | $ 5,000 |
Options exercisable (in shares) | shares | 10.2 |
Note 13 - Stock Based Compens_8
Note 13 - Stock Based Compensation - Non-vested Restricted Stock Activity (Details) - Restricted Stock [Member] | 12 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Non-vested – beginning of period (in shares) | shares | 962,273 |
Non-vested – beginning of period, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 7.72 |
Granted (in shares) | shares | 953,066 |
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 12.74 |
Vested (in shares) | shares | (411,600) |
Vested, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 7.91 |
Forfeited (in shares) | shares | (65,147) |
Forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 11.62 |
Non-vested - end of period (in shares) | shares | 1,438,592 |
Non-vested - end of period, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 10.81 |
Note 14 - Employee Retirement_2
Note 14 - Employee Retirement Plans (Details Textual) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Defined Contribution Plan Required Age Of Employees To Become Eligible To Participate | 21 years | |||
Defined Contribution Plan Number Of Months Of Service Must Be Completed To Participate | 30 days | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 900,000 | $ 0 | $ 0 | |
Defined Benefit Plan Participants Deferment Percentage Of Salary And Performance And Nonperformance Based Bonus | 1.00% | |||
Interest Expense [Member] | ||||
Deferred Compensation Arrangement With Individual Gain (Loss) On Investment | $ 700,000 | 800,000 | 1,000,000 | |
Deferred Compensation, Excluding Share-based Payments and Retirement Benefits [Member] | ||||
Defined Benefit Plan Percentage Of Employer Matching Contribution On Deferrals Made By Each Participant | 50.00% | |||
Deferred Compensation Arrangement with Individual, Recorded Liability | $ 11,800,000 | $ 9,400,000 | ||
Deferred Compensation, Excluding Share-based Payments and Retirement Benefits [Member] | Maximum [Member] | ||||
Defined Benefit Plan Participants Deferment Percentage Of Salary And Performance And Nonperformance Based Bonus | 100.00% | |||
Defined Benefit Plan Employer Matching Contribution Per Participant Amount | $ 2,500 | |||
Deferred Compensation Arrangement with Individual, Contributions by Employer | $ 100,000 |
Note 15 - Business Segments (De
Note 15 - Business Segments (Details Textual) | 12 Months Ended |
Jun. 30, 2019 | |
Number of Reportable Segments | 3 |
Note 15 - Business Segments - S
Note 15 - Business Segments - Segment Performance (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | ||
Net revenues | $ 1,248,623 | $ 1,151,921 | $ 1,193,625 | |
Depreciation and amortization | (29,965) | (32,469) | (33,376) | |
Operating income | 45,108 | 41,048 | 46,359 | |
Operating Segments [Member] | ||||
Contribution margin | 166,677 | 153,418 | 161,555 | |
Corporate, Non-Segment [Member] | ||||
Net revenues | 1,105 | 1,114 | 1,102 | |
Corporate | [1] | (91,604) | (79,901) | (81,820) |
Intersegment Eliminations [Member] | ||||
Net revenues | (1,541) | (1,745) | (2,986) | |
Consumer Floral [Member] | ||||
Net revenues | 497,765 | 457,460 | 437,132 | |
Consumer Floral [Member] | Operating Segments [Member] | ||||
Net revenues | 497,765 | 457,460 | 437,132 | |
Contribution margin | 49,653 | 50,808 | 51,860 | |
Consumer Floral [Member] | Corporate, Non-Segment [Member] | ||||
Net revenues | ||||
Consumer Floral [Member] | Intersegment Eliminations [Member] | ||||
Net revenues | ||||
BloomNet Wire Service [Member] | ||||
Net revenues | 102,876 | 89,569 | 87,700 | |
BloomNet Wire Service [Member] | Operating Segments [Member] | ||||
Net revenues | 102,876 | 89,569 | 87,700 | |
Contribution margin | 34,705 | 31,683 | 32,383 | |
BloomNet Wire Service [Member] | Corporate, Non-Segment [Member] | ||||
Net revenues | ||||
BloomNet Wire Service [Member] | Intersegment Eliminations [Member] | ||||
Net revenues | ||||
Gourmet Food and Gift Baskets [Member] | ||||
Net revenues | 648,418 | 605,523 | 670,677 | |
Gourmet Food and Gift Baskets [Member] | Operating Segments [Member] | ||||
Net revenues | 648,418 | 605,523 | 670,677 | |
Contribution margin | 82,319 | 70,927 | 77,312 | |
Gourmet Food and Gift Baskets [Member] | Corporate, Non-Segment [Member] | ||||
Net revenues | ||||
Gourmet Food and Gift Baskets [Member] | Intersegment Eliminations [Member] | ||||
Net revenues | ||||
[1] | Corporate expenses consist of the Company's enterprise shared service cost centers, and include, among other items, Information Technology, Human Resources, Accounting and Finance, Legal, Executive and Customer Service Center functions, as well as Stock-Based Compensation. In order to leverage the Company's infrastructure, these functions are operated under a centralized management platform, providing support services throughout the organization. The costs of these functions, other than those of the Customer Service Center, which are allocated directly to the above categories based upon usage, are included within corporate expenses as they are not directly allocable to a specific segment. |
Note 15 - Business Segments - D
Note 15 - Business Segments - Disaggregation of Revenue From Contracts With Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Net revenues | $ 1,248,623 | $ 1,151,921 | $ 1,193,625 |
Corporate, Non-Segment [Member] | |||
Net revenues | 1,105 | 1,114 | 1,102 |
Intersegment Eliminations [Member] | |||
Net revenues | (1,541) | (1,745) | (2,986) |
E-commerce [Member] | Operating Segments [Member] | |||
Net revenues | 998,360 | 921,848 | 896,762 |
Retail Sales Channel [Member] | Operating Segments [Member] | |||
Net revenues | 50,568 | 51,603 | 81,090 |
Wholesale [Member] | Operating Segments [Member] | |||
Net revenues | 123,403 | 114,505 | 152,458 |
Bloomnet Services [Member] | Operating Segments [Member] | |||
Net revenues | 73,132 | 60,822 | 60,667 |
Other [Member] | |||
Net revenues | 3,596 | 3,774 | 4,532 |
Consumer Floral [Member] | |||
Net revenues | 497,765 | 457,460 | 437,132 |
Consumer Floral [Member] | Operating Segments [Member] | |||
Net revenues | 497,765 | 457,460 | 437,132 |
Consumer Floral [Member] | Corporate, Non-Segment [Member] | |||
Net revenues | |||
Consumer Floral [Member] | Intersegment Eliminations [Member] | |||
Net revenues | |||
Consumer Floral [Member] | E-commerce [Member] | Operating Segments [Member] | |||
Net revenues | 489,463 | 448,943 | 427,831 |
Consumer Floral [Member] | Retail Sales Channel [Member] | Operating Segments [Member] | |||
Net revenues | 4,706 | 4,743 | 4,769 |
Consumer Floral [Member] | Wholesale [Member] | Operating Segments [Member] | |||
Net revenues | |||
Consumer Floral [Member] | Bloomnet Services [Member] | Operating Segments [Member] | |||
Net revenues | |||
Consumer Floral [Member] | Other [Member] | |||
Net revenues | 3,596 | 3,774 | 4,532 |
BloomNet Wire Service [Member] | |||
Net revenues | 102,876 | 89,569 | 87,700 |
BloomNet Wire Service [Member] | Operating Segments [Member] | |||
Net revenues | 102,876 | 89,569 | 87,700 |
BloomNet Wire Service [Member] | Corporate, Non-Segment [Member] | |||
Net revenues | |||
BloomNet Wire Service [Member] | Intersegment Eliminations [Member] | |||
Net revenues | |||
BloomNet Wire Service [Member] | E-commerce [Member] | Operating Segments [Member] | |||
Net revenues | |||
BloomNet Wire Service [Member] | Retail Sales Channel [Member] | Operating Segments [Member] | |||
Net revenues | |||
BloomNet Wire Service [Member] | Wholesale [Member] | Operating Segments [Member] | |||
Net revenues | 29,744 | 28,747 | 27,033 |
BloomNet Wire Service [Member] | Bloomnet Services [Member] | Operating Segments [Member] | |||
Net revenues | 73,132 | 60,822 | 60,667 |
BloomNet Wire Service [Member] | Other [Member] | |||
Net revenues | |||
Gourmet Food and Gift Baskets [Member] | |||
Net revenues | 648,418 | 605,523 | 670,677 |
Gourmet Food and Gift Baskets [Member] | Operating Segments [Member] | |||
Net revenues | 648,418 | 605,523 | 670,677 |
Gourmet Food and Gift Baskets [Member] | Corporate, Non-Segment [Member] | |||
Net revenues | |||
Gourmet Food and Gift Baskets [Member] | Intersegment Eliminations [Member] | |||
Net revenues | |||
Gourmet Food and Gift Baskets [Member] | E-commerce [Member] | Operating Segments [Member] | |||
Net revenues | 508,897 | 472,905 | 468,931 |
Gourmet Food and Gift Baskets [Member] | Retail Sales Channel [Member] | Operating Segments [Member] | |||
Net revenues | 45,862 | 46,860 | 76,321 |
Gourmet Food and Gift Baskets [Member] | Wholesale [Member] | Operating Segments [Member] | |||
Net revenues | 93,659 | 85,758 | 125,425 |
Gourmet Food and Gift Baskets [Member] | Bloomnet Services [Member] | Operating Segments [Member] | |||
Net revenues | |||
Gourmet Food and Gift Baskets [Member] | Other [Member] | |||
Net revenues |
Note 16 - Commitments and Con_3
Note 16 - Commitments and Contingencies (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | |
Operating Leases, Rent Expense, Net, Total | $ 20 | $ 19.6 | $ 28.7 |
Letter of Credit [Member] | |||
Debt Instrument, Unused Borrowing Capacity, Amount | 1.6 | $ 1.8 | |
Technology Infrastructure [Member] | |||
Long-term Purchase Commitment, Amount | 5.5 | ||
Land and Building [Member] | |||
Operating Leases, Future Minimum Payments Due, Future Minimum Sublease Rentals | $ 3.7 |
Note 16 - Commitments and Con_4
Note 16 - Commitments and Contingencies - Future Minimum Payments Under Non-cancelable Operating Leases (Details) $ in Thousands | Jun. 30, 2019USD ($) |
2020 | $ 16,588 |
2021 | 13,490 |
2022 | 12,081 |
2023 | 9,957 |
2024 | 9,498 |
Thereafter | 44,953 |
Total minimum lease payments | $ 106,567 |
Schedule II - Valuation and Q_3
Schedule II - Valuation and Qualifying Accounts - Valuation and Qualifying Accounts (Details) - USD ($) | 12 Months Ended | |||
Jun. 30, 2019 | Jul. 01, 2018 | Jul. 02, 2017 | ||
Balance at Beginning of Period | $ 2,418,000 | $ 1,846,000 | $ 2,104,000 | |
Charged to Costs and Expenses | 1,383,000 | 1,068,000 | 1,158,000 | |
Deductions- Describe | [1] | (1,024,000) | (496,000) | (1,416,000) |
Balance at End of Period | $ 2,777,000 | $ 2,418,000 | $ 1,846,000 | |
[1] | Reduction in reserve due to write-off of accounts/notes receivable balances. |