SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 [FEE REQUIRED]
For the fiscal year ended JUNE 30, 1999
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 [NO FEE REQUIRED]
For the transition period from _____ to _____
Commission file number 0-5151
A) Full title of the plan:
SALARIED EMPLOYEES' SAVINGS PLAN 401(k)
B) Name of issuer of the securities held pursuant to the plan and the address
of its principal executive office:
FLEXSTEEL INDUSTRIES, INC., P.O. BOX 877, DUBUQUE, IA 52004-0877
THE PLAN. Pursuant to the requirements of the Securities Exchange
Act of 1934, the trustees (or other persons who administer the employee benefit
plan) have duly caused this annual report to be signed on its behalf by the
undersigned hereunto duly authorized.
Salaried Employees' Savings Plan 401(k)
---------------------------------------
(Name of Plan)
Date: September 2, 1999 /S/ R. J. KLOSTERMAN
----------------------------------------
R.J. Klosterman
VICE PRESIDENT OF FINANCE AND
PRINCIPAL FINANCIAL OFFICER
<PAGE>
INDEPENDENT AUDITORS' REPORT
Flexsteel Industries, Inc. Salaried Employees' Savings Plan 401(k):
We have audited the combining statements of financial position of
the Flexsteel Industries, Inc. Salaried Employees' Savings Plan 401(k) (the
"Plan") as of June 30, 1999 and 1998 and the related combining statements of
income and changes in plan equity for each of the three years in the period
ended June 30, 1999. These financial statements are the responsibility of the
Plan's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements present fairly, in all
material respects, the financial position of the Plan as of June 30, 1999 and
1998, and the results of its operations for each of the three years in the
period ended June 30, 1999 in conformity with generally accepted accounting
principles.
DELOITTE & TOUCHE LLP
Minneapolis, Minnesota
August 5, 1999
2
<PAGE>
FLEXSTEEL INDUSTRIES, INC.
SALARIED EMPLOYEES' SAVINGS PLAN 401(k)
COMBINING STATEMENTS OF FINANCIAL POSITION
JUNE 30, 1999
<TABLE>
<CAPTION>
Private
Flexsteel Market
Industries, Inc. Guaranteed Bond and Stock Money
Common Common Interest Mortgage Index Market
Stock Fund Stock Fund Account Account Fund Account
---------------- ---------- ----------- ---------- ---------- -------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Cash ...................................... $ 36,425
Employee Contributions Receivable ......... 4,361 $ 21,438 $ 19,782 $ 3,861 $ 11,660 $ 1,567
Company Contributions Receivable .......... 613 2,637 2,282 600 1,312 811
Investment in Flexsteel Industries, Inc.
Common Stock Fund - Par Value $1 Per
Share; at market 137,258 shares at $13.3130
each ...................................... 1,827,316
Investment in Common Stock Fund ........... 7,624,988
Investment in Private Market Bond and
Mortgage Account .......................... 1,119,406
Investment in Guaranteed Interest Account . 4,113,901
Investment in Stock Index Fund ............ 1,721,133
Investment in Money Market Account ........ 118,035
Investment in International Stock Account .
Investment in Small Company Stock Fund ....
========== ========== ========== ========== ========== ========
Total Assets .............................. $1,868,715 $7,649,063 $4,135,965 $1,123,867 $1,734,105 $120,413
========== ========== ========== ========== ========== ========
PLAN EQUITY
Total plan equity ......................... $1,868,715 $7,649,0633 $4,135,965 $1,123,867 $1,734,105 $120,413
========== ========== ========== ========== ========== ========
</TABLE>
[WIDE TABLE CONTINUED]
<TABLE>
<CAPTION>
International Small Company
Stock Account Stock Fund Total
------------- ---------- -----
<S> <C> <C> <C>
ASSETS
Cash ...................................... $ 36,425
Employee Contributions Receivable ......... $ 4,731 $ 7,318 74,718
Company Contributions Receivable .......... 743 930 9,928
Investment in Flexsteel Industries, Inc.
Common Stock Fund - Par Value $1 Per
Share; at market 137,258 shares at $13.3130
each ...................................... 1,827,316
Investment in Common Stock Fund ........... 7,624,988
Investment in Private Market Bond and
Mortgage Account .......................... 1,119,406
Investment in Guaranteed Interest Account . 4,113,901
Investment in Stock Index Fund ............ 1,721,133
Investment in Money Market Account ........ 118,035
Investment in International Stock Account . 1,034,484 1,034,484
Investment in Small Company Stock Fund .... 1,069,729 1,069,729
========== ========== ===========
Total Assets .............................. $1,039,958 $1,077,977 $18,750,063
========== ========== ===========
PLAN EQUITY
Total plan equity ......................... $1,039,958 $1,077,977 $18,750,063
========== ========== ===========
</TABLE>
See accompanying Notes to Financial Statements
3
<PAGE>
FLEXSTEEL INDUSTRIES, INC.
SALARIED EMPLOYEES' SAVINGS PLAN 401(k)
COMBINING STATEMENTS OF FINANCIAL POSITION
JUNE 30, 1998
<TABLE>
<CAPTION>
Flexsteel Private
Industries, Market
Inc. Common Guaranteed Bond and Stock
Common Stock Interest Mortgage Index
Stock Fund Fund Account Account Fund
----------- ------ ---------- -------- -----
<S> <C> <C> <C> <C> <C>
ASSETS
Cash .............................................. $ 13,355
Employee Contributions Receivable ................. 3,197 $ 21,897 $ 18,523 $ 4,998 $ 4,309
Company Contributions Receivable .................. 592 2,711 2,829 701 519
Investment in Flexsteel Industries, Inc.
Common Stock Fund - Par Value $1 Per
Share; at market 123,474 shares at $14.00 each .... 1,728,636
Investment in Common Stock Fund ................... 6,636,372
Investment in Private Market Bond and
Mortgage Account .................................. 1,000,662
Investment in Guaranteed Interest Account ......... 4,007,667
Investment in Stock Index Fund .................... 583,110
Investment in Money Market Account ................
Investment in International Stock Account .........
Investment in Small Company Stock Fund ............
---------- ---------- ---------- ---------- --------
Total Assets ...................................... $1,745,780 $6,660,980 $4,029,019 $1,006,361 $587,938
========== ========== ========== ========== ========
PLAN EQUITY
Total plan equity ................................. $1,745,780 $6,660,980 $4,029,019 $1,006,361 $587,938
========== ========== ========== ========== ========
</TABLE>
[WIDE TABLE CONTINUED]
<TABLE>
<CAPTION>
Money International Small
Market Stock Company
Account Account Stock Fund Total
------- ------------- ---------- -----------
<S> <C> <C> <C> <C>
ASSETS
Cash .............................................. $ 13,355
Employee Contributions Receivable ................. $ 1,148 $ 5,069 $ 10,292 69,433
Company Contributions Receivable .................. 185 757 1,337 9,631
Investment in Flexsteel Industries, Inc.
Common Stock Fund - Par Value $1 Per
Share; at market 123,474 shares at $14.00 each .... 1,728,636
Investment in Common Stock Fund ................... 6,636,372
Investment in Private Market Bond and
Mortgage Account .................................. 1,000,662
Investment in Guaranteed Interest Account ......... 4,007,667
Investment in Stock Index Fund .................... 583,110
Investment in Money Market Account ................ 109,498 109,498
Investment in International Stock Account ......... 916,273 916,273
Investment in Small Company Stock Fund ............ 1,184,815 1,184,815
-------- -------- ---------- -----------
Total Assets ...................................... $110,831 $922,099 $1,196,444 $16,259,452
======== ======== ========== ===========
PLAN EQUITY
Total plan equity ................................. $110,831 $922,099 $1,196,444 $16,259,452
======== ======== ========== ===========
</TABLE>
See accompanying Notes to Financial Statements
4
<PAGE>
FLEXSTEEL INDUSTRIES, INC.
SALARIED EMPLOYEES' SAVINGS PLAN 401(k)
COMBINING STATEMENTS OF INCOME AND CHANGES IN PLAN EQUITY
JUNE 30, 1999, 1998, and 1997
<TABLE>
<CAPTION>
Flexsteel Private
Industries, Market
Inc. Common Guaranteed Bond and Stock
Common Stock Interest Mortgage Index
Stock Fund Fund Account Account Fund
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
1999:
Net Investment Income
Cash Dividend on Flexsteel Common Stock ..... $ 63,821
Interest .................................... 29 $ 235,717 $ 26,518
----------- ----------- -----------
Total ................................... 63,850 235,717 26,518
Employee Contributions ...................... 88,578 $ 338,259 305,895 76,770 $ 145,092
Company Contributions ....................... 19,379 47,302 43,455 13,089 21,460
Net Appreciation in Fair Value of Investments (56,253) 1,181,099 240,162
Withdrawals ................................. (15,012) (213,061) (228,084) (52,332) (9,850)
Transfers (To) From Other Investment Programs 22,393 (365,516) (250,037) 53,461 749,303
----------- ----------- ----------- ----------- -----------
Increase (Decrease) in Plan Equity .......... 122,935 988,083 106,946 117,506 1,146,167
Plan Equity - Beginning of Year ............. 1,745,780 6,660,980 4,029,019 1,006,361 587,938
----------- ----------- ----------- ----------- -----------
Plan Equity - End of Year ................... $ 1,868,715 $ 7,649,063 $ 4,135,965 $ 1,123,867 $ 1,734,105
=========== =========== =========== =========== ===========
1998:
Net Investment Income
Cash Dividend on Flexsteel Common Stock ..... $ 62,239
Interest .................................... 716 $ 235,284 $ 93,900
----------- ----------- -----------
Total ................................... 62,955 235,284 93,900
Employee Contributions ...................... 68,483 $ 325,628 253,354 71,879 $ 34,391
Company Contributions ....................... 16,586 48,941 42,222 12,117 5,869
Net Appreciation in Fair Value of Investments 303,009 1,096,664 77,597
Withdrawals ................................. (215,928) (122,532) (197,877) (31,952) (4,011)
Transfers (To) From Other Investment Programs (56,313) 95,998 (510,192) (45,017) 355,489
----------- ----------- ----------- ----------- -----------
Increase (Decrease) in Plan Equity .......... 178,792 1,444,699 (177,209) 100,927 469,335
Plan Equity - Beginning of Year ............. 1,566,988 5,216,281 4,206,228 905,434 118,603
----------- ----------- ----------- ----------- -----------
Plan Equity - End of Year ................... $ 1,745,780 $ 6,660,980 $ 4,029,019 $ 1,006,361 $ 587,938
=========== =========== =========== =========== ===========
1997:
Net Investment Income
Cash Dividend on Flexsteel Common Stock ..... $ 60,267
Interest .................................... 294 $ 253,338 $ 78,880
----------- ----------- -----------
Total ................................... 60,561 253,338 78,880
Employee Contributions ...................... 75,753 $ 290,690 275,357 74,478 $ 4,460
Company Contributions ....................... 19,223 45,065 47,245 12,287 1,065
Net Appreciation in Fair Value of Investments (2,107) 1,165,085 33,352
Withdrawals ................................. (48,100) (131,062) (362,588) (28,604) (17,435)
Transfers (To) From Other Investment Programs (1,159) 50,529 (354,596) (65,967) 370
----------- ----------- ----------- ----------- -----------
Increase (Decrease) in Plan Equity .......... 104,171 1,420,307 (141,244) 71,074 21,812
Plan Equity - Beginning of Year ............. 1,462,817 3,795,974 4,347,472 834,360 96,791
----------- ----------- ----------- ----------- -----------
Plan Equity - End of Year ................... $ 1,566,988 $ 5,216,281 $ 4,206,228 $ 905,434 $ 118,603
=========== =========== =========== =========== ===========
</TABLE>
[WIDE TABLE CONTINUED]
<TABLE>
<CAPTION>
Money International Small
Market Stock Company
Account Account Stock Fund Total
----------- ----------- ----------- ------------
<S> <C> <C> <C> <C>
1999:
Net Investment Income
Cash Dividend on Flexsteel Common Stock ..... $ 63,821
Interest .................................... $ 7,607 269,871
----------- ------------
Total ................................... 7,607 333,692
Employee Contributions ...................... 18,892 $ 105,668 $ 141,244 1,220,398
Company Contributions ....................... 3,599 18,537 22,110 188,931
Net Appreciation in Fair Value of Investments 23,067 (65,953) 1,322,122
Withdrawals ................................. (21,085) (12,930) (22,178) (574,532)
Transfers (To) From Other Investment Programs 569 (16,483) (193,690)
----------- ----------- ----------- ------------
Increase (Decrease) in Plan Equity .......... 9582 117,859 (118,467) 2,490,611
Plan Equity - Beginning of Year ............. 110,831 922,099 1,196,444 16,259,452
----------- ----------- ----------- ------------
Plan Equity - End of Year ................... $ 120,413 $ 1,039,958 $ 1,077,977 $ 18,750,063
=========== =========== =========== ============
1998:
Net Investment Income
Cash Dividend on Flexsteel Common Stock ..... $ 62,239
Interest .................................... $ 7,640 337,540
----------- ------------
Total ................................... 7,640 399,779
Employee Contributions ...................... 13,457 $ 106,202 $ 163,555 1,036,949
Company Contributions ....................... 2,353 19,797 27,715 175,600
Net Appreciation in Fair Value of Investments 102,221 109,408 1,688,899
Withdrawals ................................. (16,185) (80,700) (130,823) (800,008)
Transfers (To) From Other Investment Programs (7,065) 91,950 75,150
----------- ----------- ----------- ------------
Increase (Decrease) in Plan Equity .......... 200 239,470 245,005 2,501,219
Plan Equity - Beginning of Year ............. 110,631 682,629 951,439 13,758,233
----------- ----------- ----------- ------------
Plan Equity - End of Year ................... $ 110,831 $ 922,099 $ 1,196,444 $ 16,259,452
=========== =========== =========== ============
1997:
Net Investment Income
Cash Dividend on Flexsteel Common Stock ..... $ 60,267
Interest .................................... $ 4,798 337,310
----------- ------------
Total ................................... 4,798 397,577
Employee Contributions ...................... 12,564 $ 92,263 $ 136,747 962,312
Company Contributions ....................... 1,969 17,193 24,053 168,100
Net Appreciation in Fair Value of Investments 122,790 125,363 1,444,483
Withdrawals ................................. (2,925) (10,577) (157,760) (759,051)
Transfers (To) From Other Investment Programs 23,241 147,688 199,894
----------- ----------- ----------- ------------
Increase (Decrease) in Plan Equity .......... 39,647 369,357 328,297 2,213,421
Plan Equity - Beginning of Year ............. 70,984 313,272 623,142 11,544,812
----------- ----------- ----------- ------------
Plan Equity - End of Year ................... $ 110,631 $ 682,629 $ 951,439 $ 13,758,233
=========== =========== =========== ============
</TABLE>
See accompanying Notes to Financial Statements
5
<PAGE>
FLEXSTEEL INDUSTRIES, INC.
SALARIED EMPLOYEES' SAVINGS PLAN 401(k)
NOTES TO FINANCIAL STATEMENTS
1) PLAN DESCRIPTION
The Flexsteel Industries, Inc. Salaried Employees' Savings Plan 401(k)
(the "Plan") was established effective July 1, 1985 by Flexsteel Industries,
Inc. (the "Company"). The Plan is available to certain salaried, salesmen and
office employees that have one year of eligible service and have reached the age
of twenty-one. Participation is voluntary.
The Plan allows eligible employees to elect to have from 1% to 14%
(salesmen are subject to a 4% maximum) of their basic pre-tax pay contributed to
the Plan. Employee contributions are subject to a maximum of $10,000 in calendar
year 1999 by law. The Company contributes an amount equal to 25% of the first 4%
of pay the employee contributes. Participant and Company basic contributions are
100% vested. The Company, at its option, may also contribute additional amounts
to be allocated amongst all participants based on the participants' pay; such
additional company contributions vest over 7 years (20% after 3 years, 40% after
4 years, 60% after 5 years, 80% after 6 years, and 100% after 7 years).
Plan participants direct their contributions to any of the
eight investment accounts available:
1) The FLEXSTEEL INDUSTRIES, INC. COMMON STOCK FUND, which
consists of the Company's common stock.
2) A COMMON STOCK FUND, which consists of common stock and other
equity securities, and also may include short-term money
market instruments, cash or cash equivalents.
3) A GUARANTEED INTEREST ACCOUNT, which is an insurance company
account that provides a guaranteed interest rate for a
five-year period.
4) A PRIVATE MARKET BOND AND MORTGAGE ACCOUNT, which is an
insurance company account that provides for competitive yield
debt securities.
5) A STOCK INDEX FUND, which is a pooled investment account
invested in the common stock of those firms included in the
Standard & Poor's 500 Stock Index.
6) A MONEY MARKET ACCOUNT, which is an insurance company account
primarily invested in commercial paper with maturities of one
year or less.
7) An INTERNATIONAL STOCK ACCOUNT, which invests in stocks of
companies in Western Europe and Asia.
8) A SMALL COMPANY STOCK FUND, which invests in stocks of
relatively smaller companies.
Assets of the Plan are held by a "Custodian," the Principal Mutual Life
Insurance Company, except for the Flexsteel Industries, Inc. Common Stock Fund
that is held by the American Trust & Savings Bank of Dubuque, Iowa (the
"Trustee"). The Plan is administered by a committee appointed by the Board of
Directors of the Company. Distributions are paid upon retirement, termination of
employment, death, disability, or in hardship cases. Non-vested contributions
revert to the Company upon termination of employment. Upon termination of the
Plan, participant accounts become fully vested and non-forfeitable.
At June 30, 1999 the Plan had 523 participants, of which there were 190
participants in the Flexsteel Industries, Inc. Common Stock Fund, 398
participants in the Common Stock Fund, 390 participants in the Guaranteed
Interest Accounts, 207 participants in the Private Market Bond and Mortgage
Account, 155 participants in the Stock Index Fund, 83 participants in the Money
Market Account, 229 participants in the International Stock Fund, and 255
participants in the Small Company Stock Fund.
2) SIGNIFICANT ACCOUNTING POLICIES
The Plan uses the accrual basis of accounting. Investments in common stock
are recorded at the market value based on market quotations. Other investments
are stated at market value as determined by the Trustee and Custodian based on
the market value of the funds and the participation in each fund. The cost of
investments sold is determined by the average cost method.
6
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
3) INCOME TAXES
The Plan has received a determination from the Internal Revenue Service
that the Plan is exempt from Federal income taxes. Participants are not taxed
currently on their contributions or on Company contributions to the Plan.
Distributions to participants generally are subject to Federal and State income
tax at the time of distribution; certain distributions may receive more
favorable tax treatment.
4) NET APPRECIATION (DEPRECIATION) IN FAIR VALUE OF INVESTMENTS
The unrealized appreciation (depreciation) in the investment accounts is
as follows:
<TABLE>
<CAPTION>
Market Net Appreciation
Cost Value (Depreciation)
----------- ----------- -----------
<S> <C> <C> <C>
Flexsteel Industries, Inc. Common Stock Fund
Balance, June 30, 1996 ............... $ 1,452,573 $ 1,441,832 $ (10,741)
Net change during year ............... 105,400 103,293 (2,107)
----------- ----------- -----------
Balance, June 30, 1997 ............... 1,557,973 1,545,125 (12,848)
Net change during year ............... (119,498) 183,511 303,009
----------- ----------- -----------
Balance, June 30, 1998 ............... 1,438,475 1,728,636 290,161
Net change during year ............... 154,933 98,680 (56,253)
----------- ----------- -----------
Balance, June 30, 1999 ............... $ 1,593,408 $ 1,827,316 $ 233,908
=========== =========== ===========
Common Stock Fund
Balance, June 30, 1996 ............... $ 1,849,157 3,776,198 1,927,041
Net change during year ............... 253,638 1,418,723 1,165,085
----------- ----------- -----------
Balance, June 30, 1997 ............... 2,102,795 5,194,921 3,092,126
Net change during year ............... 344,787 1,441,451 1,096,664
----------- ----------- -----------
Balance, June 30, 1998 ............... 2,447,582 6,636,372 4,188,790
Net change during year ............... (192,483) 988,616 1,181,099
----------- ----------- -----------
Balance, June 30, 1999 ............... $ 2,255,099 $ 7,624,988 $ 5,369,889
=========== =========== ===========
Stock Index Fund
Balance, June 30, 1996 ............... $ 59,342 96,452 37,110
Net change during year ............... (11,555) 21,797 33,352
----------- ----------- -----------
Balance, June 30, 1997 ............... 47,787 118,249 70,462
Net change during year ............... 387,264 464,861 77,597
----------- ----------- -----------
Balance, June 30, 1998 ............... 435,051 583,110 148,059
Net change during year ............... 897,862 1,138,023 240,162
----------- ----------- -----------
Balance, June 30, 1999 ............... $ 1,332,913 $ 1,721,133 $ 388,220
=========== =========== ===========
International Stock Account
Balance, June 30, 1996 ............... $ 267,047 $ 309,267 $ 42,220
Net change during year ............... 245,192 367,982 122,790
----------- ----------- -----------
Balance, June 30, 1997 ............... 512,239 677,249 165,010
Net change during year ............... 136,803 239,024 102,221
----------- ----------- -----------
Balance, June 30, 1998 ............... 649,042 916,273 267,231
Net change during year ............... 95,144 118,211 23,067
----------- ----------- -----------
Balance, June 30, 1999 ............... $ 744,186 $ 1,034,484 $ 290,298
=========== =========== ===========
Small Company Stock Fund
Balance, June 30, 1996 ............... $ 472,682 $ 615,575 $ 142,893
Net change during year ............... 200,801 326,164 125,363
----------- ----------- -----------
Balance, June 30, 1997 ............... 673,483 941,739 268,256
Net change during year ............... 133,668 243,076 109,408
----------- ----------- -----------
Balance, June 30, 1998 ............... 807,151 1,184,815 377,664
Net change during year ............... (49,133) (115,086) (65,953)
----------- ----------- -----------
Balance, June 30, 1999 ............... $ 758,018 $ 1,069,729 $ 311,711
=========== =========== ===========
</TABLE>
The cost of investments in the Guaranteed Interest Account, Private Market
Bond and Mortgage Account, and Money Market Account approximate market.
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
5) RELATED PARTY TRANSACTIONS
All administrative costs of the Plan are paid by the Company. Brokers'
commissions and fees, if any, incurred in connection with the segregated funds
are paid by the Plan.
The Plan had the following transactions in the Flexsteel Common Stock Fund
or in the Custodian's funds for the year ended June 30, 1999, 1998 and 1997
(shares in parentheses):
<TABLE>
<CAPTION>
COST OF
1999: PURCHASES SALES (1) SALES (1)
----------------- -------------- ----------
<S> <C> <C> <C>
FUND
Flexsteel Industries, Inc. Common Stock Fund $ 160,512(14,169) $ 4,998(385) $ 4,998
Common Stock Fund .......................... $ 386,095 $ 578,577 $ 578,577
Guaranteed Interest Account ................ $ 348,637 $ 478,121 $ 478,121
Private Market Bond and Mortgage Account ... $ 91,097 $ (1,129) $ (1,129)
Stock Index Fund ........................... $ 158,409 $(739,453) $(739,453)
Money Market Account ....................... $ 21,446 $ 20,516 $ 20,516
International Stock Account ................ $ 124,557 $ 29,413 $ 29,413
Small Company Stock Fund ................... $ 166,735 $ 215,868 $ 215,868
<CAPTION>
COST OF
1998: PURCHASES SALES (1) SALES (1)
----------------- -------------- ----------
<S> <C> <C> <C>
FUND
Flexsteel Industries, Inc. Common Stock Fund $ 47,231(3,769) $ 164,740(11,795) $ 164,740
Common Stock Fund .......................... $ 371,321 $ 26,534 $ 26,534
Guaranteed Interest Account ................ $ 295,631 $ 708,069 $ 708,069
Private Market Bond and Mortgage Account ... $ 83,209 $ 76,969 $ 76,969
Stock Index Fund ........................... $ 35,786 $(351,478) $(351,478)
Money Market Account ....................... $ 15,410 $ 23,251 $ 23,251
International Stock Account ................ $ 125,553 $ (11,250) $ (11,250)
Small Company Stock Fund ................... $ 189,341 $ 55,672 $ 55,672
<CAPTION>
COST OF
1997: PURCHASES SALES (1) SALES (1)
----------------- -------------- ----------
<S> <C> <C> <C>
FUND
Flexsteel Industries, Inc. Common Stock Fund $ 116,599(9,791) $ 11,969(1,000) $ 11,969
Common Stock Fund .......................... $ 334,171 $ 83,244 $ 83,244
Guaranteed Interest Account ................ $ 326,041 $ 711,660 $ 711,660
Private Market Bond and Mortgage Account ... $ 87,350 $ 94,571 $ 94,571
Stock Index Fund ........................... $ 5,510 $ 17,065 $ 17,065
Money Market Account ....................... $ 14,419 $ (20,316) $ (20,316)
International Stock Account ................ $ 108,080 $(137,111) $(137,111)
Small Company Stock Fund ................... $ 158,667 $ (42,134) $ (42,134)
</TABLE>
(1) Amount is net of transfers
8
EXHIBIT 1
CONSENT OF INDEPENDENT AUDITORS
Flexsteel Industries, Inc.:
We consent to the incorporation by reference in Registration Statement No.
33-1836 on Form S-8 as amended by Post-Effective Amendment No. 1 for the
Flexsteel Salaried Employees' Savings Plan 401(k) of our report dated August 5,
1999 appearing in the Annual Report on Form 11-K of the Flexsteel Salaried
Employees' Savings Plan 401(k) for the year ended June 30, 1999.
DELOITTE & TOUCHE LLP
Minneapolis, Minnesota
September 29, 1999
9
