Note C - Inventories

12 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Inventory Disclosure [Text Block]

C. INVENTORIES

The major classes of inventories at June 30 were as follows:

	2024		2023
Finished parts	$	60,166	$	66,956
Work in process		23,096		23,374
Raw materials		47,222		41,600
	$	130,484	$	131,930

In the first quarter of fiscal year 2024, the Company entered into an agreement to sell most of its boat management system product line located at one of its subsidiaries in Italy. The sale amount was below cost and resulted in the Company recognizing an inventory write-down of $2.1 million. The Company also evaluated its other boat management system inventory, not associated with the sale. The evaluation resulted in the Company recognizing an additional inventory write-down of $1.6 million for inventory located in the U.S. These write-downs were partially offset by certain liabilities transferred to the buyer at the time of the sale. The sale was completed in the second quarter of fiscal year 2024.

Inventories stated on a LIFO basis represent approximately 31% and 33% of total inventories at June 30, 2024 and 2023, respectively. The approximate current cost of the LIFO inventories exceeded the LIFO cost by $30,680 and $30,646 at June 30, 2024 and 2023, respectively. Inventories were reduced during 2024 and 2023, resulting in a liquidation of LIFO inventory layers that were carried at a lower cost prevailing from a prior year, as compared with current costs in the current year (“LIFO decrement”). A LIFO decrement results in the erosion of layers created in earlier years, and, therefore, a LIFO layer is not created for years that have decrements. For the years ended June 30, 2024 and 2023, the effects of LIFO decrements decreased cost of goods sold by $1,553 and $3,685, respectively.

The Company had reserves for inventory obsolescence of $12,693 and $12,858 at June 30, 2024 and 2023, respectively.