10-Q 1 lanc-20220331.htm 10-Q lanc-20220331
falseQ3000005751520226/3000000575152021-07-012022-03-3100000575152022-04-15xbrli:shares00000575152022-03-31iso4217:USD00000575152021-06-3000000575152022-01-012022-03-3100000575152021-01-012021-03-3100000575152020-07-012021-03-31iso4217:USDxbrli:shares00000575152020-06-3000000575152021-03-310000057515us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2021-06-300000057515us-gaap:RetainedEarningsMember2021-06-300000057515us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300000057515us-gaap:TreasuryStockCommonMember2021-06-300000057515us-gaap:RetainedEarningsMember2021-07-012021-09-3000000575152021-07-012021-09-300000057515us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300000057515us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2021-07-012021-09-300000057515us-gaap:TreasuryStockCommonMember2021-07-012021-09-300000057515us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2021-09-300000057515us-gaap:RetainedEarningsMember2021-09-300000057515us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300000057515us-gaap:TreasuryStockCommonMember2021-09-3000000575152021-09-300000057515us-gaap:RetainedEarningsMember2021-10-012021-12-3100000575152021-10-012021-12-310000057515us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-10-012021-12-310000057515us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2021-10-012021-12-310000057515us-gaap:TreasuryStockCommonMember2021-10-012021-12-310000057515us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2021-12-310000057515us-gaap:RetainedEarningsMember2021-12-310000057515us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310000057515us-gaap:TreasuryStockCommonMember2021-12-3100000575152021-12-310000057515us-gaap:RetainedEarningsMember2022-01-012022-03-310000057515us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310000057515us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2022-01-012022-03-310000057515us-gaap:TreasuryStockCommonMember2022-01-012022-03-310000057515us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2022-03-310000057515us-gaap:RetainedEarningsMember2022-03-310000057515us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310000057515us-gaap:TreasuryStockCommonMember2022-03-310000057515us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2020-06-300000057515us-gaap:RetainedEarningsMember2020-06-300000057515us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300000057515us-gaap:TreasuryStockCommonMember2020-06-300000057515us-gaap:RetainedEarningsMember2020-07-012020-09-3000000575152020-07-012020-09-300000057515us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-300000057515us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2020-07-012020-09-300000057515us-gaap:TreasuryStockCommonMember2020-07-012020-09-300000057515us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2020-09-300000057515us-gaap:RetainedEarningsMember2020-09-300000057515us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-300000057515us-gaap:TreasuryStockCommonMember2020-09-3000000575152020-09-300000057515us-gaap:RetainedEarningsMember2020-10-012020-12-3100000575152020-10-012020-12-310000057515us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-10-012020-12-310000057515us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2020-10-012020-12-310000057515us-gaap:TreasuryStockCommonMember2020-10-012020-12-310000057515us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2020-12-310000057515us-gaap:RetainedEarningsMember2020-12-310000057515us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310000057515us-gaap:TreasuryStockCommonMember2020-12-3100000575152020-12-310000057515us-gaap:RetainedEarningsMember2021-01-012021-03-310000057515us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310000057515us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2021-01-012021-03-310000057515us-gaap:TreasuryStockCommonMember2021-01-012021-03-310000057515us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2021-03-310000057515us-gaap:RetainedEarningsMember2021-03-310000057515us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310000057515us-gaap:TreasuryStockCommonMember2021-03-310000057515lanc:DirectorRestrictedStockMember2022-01-012022-03-310000057515lanc:DirectorRestrictedStockMember2021-01-012021-03-310000057515lanc:DirectorRestrictedStockMember2021-07-012022-03-310000057515lanc:DirectorRestrictedStockMember2020-07-012021-03-310000057515us-gaap:PerformanceSharesMember2022-01-012022-03-310000057515us-gaap:PerformanceSharesMember2021-01-012021-03-310000057515us-gaap:PerformanceSharesMember2021-07-012022-03-310000057515us-gaap:PerformanceSharesMember2020-07-012021-03-310000057515us-gaap:PensionPlansDefinedBenefitMember2022-01-012022-03-310000057515us-gaap:PensionPlansDefinedBenefitMember2021-01-012021-03-310000057515us-gaap:PensionPlansDefinedBenefitMember2021-07-012022-03-310000057515us-gaap:PensionPlansDefinedBenefitMember2020-07-012021-03-310000057515us-gaap:DefinedBenefitPostretirementLifeInsuranceMember2022-01-012022-03-310000057515us-gaap:DefinedBenefitPostretirementLifeInsuranceMember2021-01-012021-03-310000057515us-gaap:DefinedBenefitPostretirementLifeInsuranceMember2021-07-012022-03-310000057515us-gaap:DefinedBenefitPostretirementLifeInsuranceMember2020-07-012021-03-310000057515lanc:BantamBagelsMemberus-gaap:FairValueInputsLevel1Member2022-03-310000057515lanc:BantamBagelsMemberus-gaap:FairValueInputsLevel2Member2022-03-310000057515lanc:BantamBagelsMemberus-gaap:FairValueInputsLevel3Member2022-03-310000057515lanc:BantamBagelsMember2022-03-310000057515lanc:BantamBagelsMemberus-gaap:FairValueInputsLevel1Member2021-06-300000057515lanc:BantamBagelsMemberus-gaap:FairValueInputsLevel2Member2021-06-300000057515lanc:BantamBagelsMemberus-gaap:FairValueInputsLevel3Member2021-06-300000057515lanc:BantamBagelsMember2021-06-300000057515lanc:BantamBagelsMember2018-10-190000057515lanc:FoodserviceMemberlanc:BantamBagelsMember2022-01-012022-03-310000057515lanc:BantamBagelsMember2021-10-012021-12-310000057515lanc:FoodserviceMemberlanc:BantamBagelsMember2021-10-012021-12-310000057515lanc:RetailSegmentMemberlanc:BantamBagelsMember2021-10-012021-12-310000057515lanc:FoodserviceMemberlanc:BantamBagelsMember2020-07-012020-09-300000057515lanc:BantamBagelsMember2021-07-012022-03-310000057515lanc:BantamBagelsMember2021-12-310000057515lanc:BantamBagelsMember2020-12-310000057515lanc:BantamBagelsMember2020-06-300000057515lanc:BantamBagelsMember2022-01-012022-03-310000057515lanc:BantamBagelsMember2021-01-012021-03-310000057515lanc:BantamBagelsMember2020-07-012021-03-310000057515lanc:BantamBagelsMember2021-03-31xbrli:pure0000057515lanc:RetailSegmentMember2022-03-310000057515lanc:RetailSegmentMember2021-06-300000057515lanc:FoodserviceMember2021-06-300000057515lanc:FoodserviceMember2022-03-310000057515srt:MinimumMemberus-gaap:TradeNamesMember2021-07-012022-03-310000057515srt:MaximumMemberus-gaap:TradeNamesMember2021-07-012022-03-310000057515us-gaap:TradeNamesMember2022-03-310000057515us-gaap:TradeNamesMember2021-06-300000057515us-gaap:CustomerRelationshipsMembersrt:MinimumMember2021-07-012022-03-310000057515us-gaap:CustomerRelationshipsMembersrt:MaximumMember2021-07-012022-03-310000057515us-gaap:CustomerRelationshipsMember2022-03-310000057515us-gaap:CustomerRelationshipsMember2021-06-300000057515us-gaap:TradeSecretsMember2021-07-012022-03-310000057515us-gaap:TradeSecretsMember2022-03-310000057515us-gaap:TradeSecretsMember2021-06-300000057515us-gaap:NoncompeteAgreementsMember2021-07-012022-03-310000057515us-gaap:NoncompeteAgreementsMember2022-03-310000057515us-gaap:NoncompeteAgreementsMember2021-06-300000057515us-gaap:DomesticCountryMember2022-03-310000057515us-gaap:DomesticCountryMember2021-06-300000057515us-gaap:StateAndLocalJurisdictionMember2022-03-310000057515us-gaap:StateAndLocalJurisdictionMember2021-06-300000057515lanc:RetailSegmentMember2022-01-012022-03-310000057515lanc:RetailSegmentMember2021-01-012021-03-310000057515lanc:RetailSegmentMember2021-07-012022-03-310000057515lanc:RetailSegmentMember2020-07-012021-03-310000057515lanc:FoodserviceMember2022-01-012022-03-310000057515lanc:FoodserviceMember2021-01-012021-03-310000057515lanc:FoodserviceMember2021-07-012022-03-310000057515lanc:FoodserviceMember2020-07-012021-03-310000057515lanc:NonallocatedIndirectCostsMember2022-01-012022-03-310000057515lanc:NonallocatedIndirectCostsMember2021-01-012021-03-310000057515lanc:NonallocatedIndirectCostsMember2021-07-012022-03-310000057515lanc:NonallocatedIndirectCostsMember2020-07-012021-03-310000057515us-gaap:CorporateMember2022-01-012022-03-310000057515us-gaap:CorporateMember2021-01-012021-03-310000057515us-gaap:CorporateMember2021-07-012022-03-310000057515us-gaap:CorporateMember2020-07-012021-03-310000057515lanc:ShelfStableDressingsSaucesAndCroutonsMemberlanc:RetailSegmentMember2022-01-012022-03-310000057515lanc:ShelfStableDressingsSaucesAndCroutonsMemberlanc:RetailSegmentMember2021-01-012021-03-310000057515lanc:ShelfStableDressingsSaucesAndCroutonsMemberlanc:RetailSegmentMember2021-07-012022-03-310000057515lanc:ShelfStableDressingsSaucesAndCroutonsMemberlanc:RetailSegmentMember2020-07-012021-03-310000057515lanc:RetailSegmentMemberlanc:FrozenBreadsMember2022-01-012022-03-310000057515lanc:RetailSegmentMemberlanc:FrozenBreadsMember2021-01-012021-03-310000057515lanc:RetailSegmentMemberlanc:FrozenBreadsMember2021-07-012022-03-310000057515lanc:RetailSegmentMemberlanc:FrozenBreadsMember2020-07-012021-03-310000057515lanc:RetailSegmentMemberlanc:RefrigeratedDressingsDipsAndOtherMember2022-01-012022-03-310000057515lanc:RetailSegmentMemberlanc:RefrigeratedDressingsDipsAndOtherMember2021-01-012021-03-310000057515lanc:RetailSegmentMemberlanc:RefrigeratedDressingsDipsAndOtherMember2021-07-012022-03-310000057515lanc:RetailSegmentMemberlanc:RefrigeratedDressingsDipsAndOtherMember2020-07-012021-03-310000057515lanc:FoodserviceMemberlanc:DressingsAndSaucesMember2022-01-012022-03-310000057515lanc:FoodserviceMemberlanc:DressingsAndSaucesMember2021-01-012021-03-310000057515lanc:FoodserviceMemberlanc:DressingsAndSaucesMember2021-07-012022-03-310000057515lanc:FoodserviceMemberlanc:DressingsAndSaucesMember2020-07-012021-03-310000057515lanc:FoodserviceMemberlanc:FrozenBreadsAndOtherMember2022-01-012022-03-310000057515lanc:FoodserviceMemberlanc:FrozenBreadsAndOtherMember2021-01-012021-03-310000057515lanc:FoodserviceMemberlanc:FrozenBreadsAndOtherMember2021-07-012022-03-310000057515lanc:FoodserviceMemberlanc:FrozenBreadsAndOtherMember2020-07-012021-03-310000057515lanc:FoodserviceMemberlanc:OtherRollProductsMember2022-01-012022-03-310000057515lanc:FoodserviceMemberlanc:OtherRollProductsMember2021-01-012021-03-310000057515lanc:FoodserviceMemberlanc:OtherRollProductsMember2021-07-012022-03-310000057515lanc:FoodserviceMemberlanc:OtherRollProductsMember2020-07-012021-03-310000057515lanc:FoodserviceMemberlanc:NationalAccountsMember2022-01-012022-03-310000057515lanc:FoodserviceMemberlanc:NationalAccountsMember2021-01-012021-03-310000057515lanc:FoodserviceMemberlanc:NationalAccountsMember2021-07-012022-03-310000057515lanc:FoodserviceMemberlanc:NationalAccountsMember2020-07-012021-03-310000057515lanc:FoodserviceMemberlanc:BrandedAndOtherMember2022-01-012022-03-310000057515lanc:FoodserviceMemberlanc:BrandedAndOtherMember2021-01-012021-03-310000057515lanc:FoodserviceMemberlanc:BrandedAndOtherMember2021-07-012022-03-310000057515lanc:FoodserviceMemberlanc:BrandedAndOtherMember2020-07-012021-03-310000057515lanc:FoodserviceMemberlanc:OtherRollProductsMember2022-01-012022-03-310000057515lanc:FoodserviceMemberlanc:OtherRollProductsMember2021-01-012021-03-310000057515lanc:FoodserviceMemberlanc:OtherRollProductsMember2021-07-012022-03-310000057515lanc:FoodserviceMemberlanc:OtherRollProductsMember2020-07-012021-03-310000057515us-gaap:StockAppreciationRightsSARSMember2021-01-012021-03-310000057515us-gaap:StockAppreciationRightsSARSMember2022-01-012022-03-310000057515us-gaap:StockAppreciationRightsSARSMember2021-07-012022-03-310000057515us-gaap:StockAppreciationRightsSARSMember2020-07-012021-03-310000057515us-gaap:StockAppreciationRightsSARSMember2022-03-310000057515us-gaap:RestrictedStockMember2022-01-012022-03-310000057515us-gaap:RestrictedStockMember2021-01-012021-03-310000057515us-gaap:RestrictedStockMember2021-07-012022-03-310000057515us-gaap:RestrictedStockMember2020-07-012021-03-310000057515us-gaap:RestrictedStockMember2022-03-310000057515us-gaap:PerformanceSharesMember2022-03-31


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form
10-Q
 
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2022
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                     to                    
Commission file number 000-04065 
Lancaster Colony Corporation
(Exact name of registrant as specified in its charter)
 
Ohio13-1955943
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
380 Polaris ParkwaySuite 400
WestervilleOhio43082
(Address of principal executive offices)(Zip Code)
 
(614)
224-7141
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, without par valueLANCNASDAQ Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý    No  ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ý    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer ýAccelerated filer 
Non-accelerated filer Smaller reporting company 
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ¨
Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act).    Yes      No  ý
As of April 15, 2022, there were approximately 27,522,000 shares of Common Stock, without par value, outstanding.




LANCASTER COLONY CORPORATION AND SUBSIDIARIES
TABLE OF CONTENTS
 
Item 1.
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 2.
Item 6.

2



PART I – FINANCIAL INFORMATION
 
Item 1. Condensed Consolidated Financial Statements
LANCASTER COLONY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(Amounts in thousands, except share data)March 31,
2022
June 30,
2021
ASSETS
Current Assets:
Cash and equivalents$67,085 $188,055 
Receivables110,131 97,897 
Inventories:
Raw materials61,165 48,895 
Finished goods104,857 72,980 
Total inventories166,022 121,875 
Other current assets18,341 15,654 
Total current assets361,579 423,481 
Property, Plant and Equipment:
Land, buildings and improvements311,280 252,174 
Machinery and equipment463,661 424,015 
Total cost774,941 676,189 
Less accumulated depreciation336,652 311,567 
Property, plant and equipment-net438,289 364,622 
Other Assets:
Goodwill208,371 208,371 
Other intangible assets-net41,969 58,766 
Operating lease right-of-use assets29,879 22,455 
Other noncurrent assets23,537 23,590 
Total$1,103,624 $1,101,285 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable$127,361 $110,338 
Accrued liabilities52,116 63,585 
Total current liabilities179,477 173,923 
Noncurrent Operating Lease Liabilities23,111 17,228 
Other Noncurrent Liabilities22,564 28,285 
Deferred Income Taxes39,850 38,702 
Commitments and Contingencies
Shareholders’ Equity:
Preferred stock-authorized 3,050,000 shares; outstanding-none
Common stock-authorized 75,000,000 shares; outstanding-March-27,523,562 shares; June-27,531,040 shares
135,645 128,617 
Retained earnings1,478,026 1,482,220 
Accumulated other comprehensive loss(8,127)(8,253)
Common stock in treasury, at cost(766,922)(759,437)
Total shareholders’ equity838,622 843,147 
Total$1,103,624 $1,101,285 
See accompanying notes to condensed consolidated financial statements.
3



LANCASTER COLONY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
 
Three Months Ended 
March 31,
Nine Months Ended 
March 31,
(Amounts in thousands, except per share data)2022202120222021
Net Sales$403,494 $357,249 $1,223,977 $1,081,501 
Cost of Sales335,162 266,699 966,676 791,452 
Gross Profit68,332 90,550 257,301 290,049 
Selling, General and Administrative Expenses54,526 53,162 157,920 149,607 
Change in Contingent Consideration(1,300) (3,470)(5,687)
Restructuring and Impairment Charges22,723  24,651 1,195 
Operating (Loss) Income(7,617)37,388 78,200 144,934 
Other, Net119 (44)250 (67)
(Loss) Income Before Income Taxes(7,498)37,344 78,450 144,867 
Taxes Based on (Loss) Income(3,015)8,447 17,908 34,261 
Net (Loss) Income$(4,483)$28,897 $60,542 $110,606 
Net (Loss) Income Per Common Share:
Basic$(0.17)$1.05 $2.20 $4.02 
Diluted$(0.17)$1.05 $2.20 $4.01 
Weighted Average Common Shares Outstanding:
Basic27,442 27,483 27,448 27,474 
Diluted27,442 27,526 27,478 27,513 
See accompanying notes to condensed consolidated financial statements.

4



LANCASTER COLONY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
 
Three Months Ended 
March 31,
Nine Months Ended 
March 31,
(Amounts in thousands)2022202120222021
Net (Loss) Income$(4,483)$28,897 $60,542 $110,606 
Other Comprehensive Income:
Defined Benefit Pension and Postretirement Benefit Plans:
Amortization of loss, before tax101 167 301 503 
Amortization of prior service credit, before tax(45)(45)(136)(136)
Total Other Comprehensive Income, Before Tax56 122 165 367 
Tax Attributes of Items in Other Comprehensive Income:
Amortization of loss, tax(24)(39)(71)(117)
Amortization of prior service credit, tax11 11 32 32 
Total Tax Expense(13)(28)(39)(85)
Other Comprehensive Income, Net of Tax43 94 126 282 
Comprehensive (Loss) Income$(4,440)$28,991 $60,668 $110,888 
See accompanying notes to condensed consolidated financial statements.

5



LANCASTER COLONY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
 
Nine Months Ended 
March 31,
(Amounts in thousands)20222021
Cash Flows From Operating Activities:
Net income$60,542 $110,606 
Adjustments to reconcile net income to net cash provided by operating activities:
Impacts of noncash items:
Depreciation and amortization34,417 32,569 
Change in contingent consideration(3,470)(5,687)
Deferred income taxes and other changes1,587 4,305 
Stock-based compensation expense7,384 5,234 
Restructuring and impairment charges24,435 1,195 
Pension plan activity(411)(118)
Changes in operating assets and liabilities:
Receivables(12,234)(11,273)
Inventories(44,147)(17,998)
Other current assets(4,240)(2,968)
Accounts payable and accrued liabilities(5,212)22,834 
Net cash provided by operating activities58,651 138,699 
Cash Flows From Investing Activities:
Payments for property additions(104,888)(55,601)
Other-net(177)(561)
Net cash used in investing activities(105,065)(56,162)
Cash Flows From Financing Activities:
Payment of dividends(64,736)(60,576)
Purchase of treasury stock(7,485)(4,623)
Tax withholdings for stock-based compensation(356)(3,110)
Other-net(1,979)(1,380)
Net cash used in financing activities(74,556)(69,689)
Net change in cash and equivalents(120,970)12,848 
Cash and equivalents at beginning of year188,055 198,273 
Cash and equivalents at end of period$67,085 $211,121 
Supplemental Disclosure of Operating Cash Flows:
Net cash payments for income taxes$18,775 $29,855 
See accompanying notes to condensed consolidated financial statements.

6



LANCASTER COLONY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(UNAUDITED)

Nine Months Ended March 31, 2022
(Amounts in thousands,
except per share data)
Common Stock
Outstanding
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Treasury
Stock
Total
Shareholders’
Equity
SharesAmount    
Balance, June 30, 202127,531 $128,617 $1,482,220 $(8,253)$(759,437)$843,147 
Net income30,655 30,655 
Net pension and postretirement benefit gains, net of $13 tax effect
42 42 
Cash dividends - common stock ($0.75 per share)
(20,675)(20,675)
Purchase of treasury stock(30)(5,329)(5,329)
Stock-based plans29 (59)(59)
Stock-based compensation expense2,274 2,274 
Balance, September 30, 202127,530 $130,832 $1,492,200 $(8,211)$(764,766)$850,055 
Net income34,370 34,370 
Net pension and postretirement benefit gains, net of $13 tax effect
41 41 
Cash dividends - common stock ($0.80 per share)
(22,035)(22,035)
Purchase of treasury stock (9)(9)
Stock-based plans4 (2)(2)
Stock-based compensation expense2,589 2,589 
Balance, December 31, 202127,534 $133,419 $1,504,535 $(8,170)$(764,775)$865,009 
Net loss(4,483)(4,483)
Net pension and postretirement benefit gains, net of $13 tax effect
43 43 
Cash dividends - common stock ($0.80 per share)
(22,026)(22,026)
Purchase of treasury stock(14)(2,147)(2,147)
Stock-based plans4 (295)(295)
Stock-based compensation expense2,521 2,521 
Balance, March 31, 202227,524 $135,645 $1,478,026 $(8,127)$(766,922)$838,622 
See accompanying notes to condensed consolidated financial statements.
7



LANCASTER COLONY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (continued)
(UNAUDITED)

Nine Months Ended March 31, 2021
(Amounts in thousands,
except per share data)
Common Stock
Outstanding
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Treasury
Stock
Total
Shareholders’
Equity
SharesAmount    
Balance, June 30, 202027,524 $125,153 $1,421,121 $(12,070)$(750,904)$783,300 
Net income37,079 37,079 
Net pension and postretirement benefit gains, net of $29 tax effect
94 94 
Cash dividends - common stock ($0.70 per share)
(19,270)(19,270)
Purchase of treasury stock (15)(15)
Stock-based plans16 (1,854)(1,854)
Stock-based compensation expense1,772 1,772 
Balance, September 30, 202027,540 $125,071 $1,438,930 $(11,976)$(750,919)$801,106 
Net income44,630 44,630 
Net pension and postretirement benefit gains, net of $28 tax effect
94 94 
Cash dividends - common stock ($0.75 per share)
(20,655)(20,655)
Purchase of treasury stock (4)(4)
Stock-based plans7 (581)(581)
Stock-based compensation expense1,770 1,770 
Balance, December 31, 202027,547 $126,260 $1,462,905 $(11,882)$(750,923)$826,360 
Net income28,897 28,897 
Net pension and postretirement benefit gains, net of $28 tax effect
94 94 
Cash dividends - common stock ($0.75 per share)
(20,651)(20,651)
Purchase of treasury stock(26)(4,604)(4,604)
Stock-based plans24 (675)(675)
Stock-based compensation expense1,692 1,692 
Balance, March 31, 202127,545 $127,277 $1,471,151 $(11,788)$(755,527)$831,113 
See accompanying notes to condensed consolidated financial statements.
8


LANCASTER COLONY CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Tabular amounts in thousands, except per share data)

Note 1 – Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements include the accounts of Lancaster Colony Corporation and our wholly-owned subsidiaries, collectively referred to as “we,” “us,” “our,” “registrant” or the “Company” and have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and SEC Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In our opinion, the interim condensed consolidated financial statements reflect all adjustments necessary for a fair presentation of the results of operations and financial position for such periods. All such adjustments reflected in the interim condensed consolidated financial statements are considered to be of a normal recurring nature. Intercompany transactions and accounts have been eliminated in consolidation. The results of operations for any interim period are not necessarily indicative of results for the full year. Accordingly, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in our 2021 Annual Report on Form 10-K. Unless otherwise noted, the term “year” and references to a particular year pertain to our fiscal year, which begins on July 1 and ends on June 30; for example, 2022 refers to fiscal 2022, which is the period from July 1, 2021 to June 30, 2022.
Deferred Software Costs
We capitalize certain costs related to hosting arrangements that are service contracts (cloud computing arrangements). Capitalized costs are included in Other Current Assets or Other Noncurrent Assets and are amortized on a straight-line basis over the estimated useful life. For the nine months ended March 31, 2022 and 2021, we capitalized $1.6 million and $3.2 million, respectively, of deferred software costs related to cloud computing arrangements.
Property, Plant and Equipment
Property, plant and equipment are recorded at cost, except for those acquired as part of a business combination, which are recorded at fair value at the time of purchase. We use the straight-line method of computing depreciation for financial reporting purposes based on the estimated useful lives of the corresponding assets. Purchases of property, plant and equipment included in Accounts Payable and excluded from the property additions and the change in accounts payable in the Condensed Consolidated Statements of Cash Flows were as follows: 
 March 31,
 20222021
Construction in progress in Accounts Payable$21,256 $3,791 
In the three months ended March 31, 2022, we recorded an impairment charge of $6.8 million for certain property, plant and equipment related to the Bantam Bagels, LLC (“Bantam”) business. This charge resulted from our decision to explore strategic alternatives for this business, which triggered impairment testing, and represents the excess of the carrying value over the fair value. The fair value was based on estimated selling prices for these assets, which represents a Level 3 measurement within the fair value hierarchy. The impairment charge is reflected in Restructuring and Impairment Charges and was not allocated to our two reportable segments due to its unusual nature.
Accrued Compensation and Employee Benefits
Accrued compensation and employee benefits included in Accrued Liabilities was $18.6 million and $32.5 million at March 31, 2022 and June 30, 2021, respectively.
Current Operating Lease Liabilities
Current operating lease liabilities included in Accrued Liabilities were $9.4 million and $6.9 million at March 31, 2022 and June 30, 2021, respectively.
9


LANCASTER COLONY CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Tabular amounts in thousands, except per share data)

Earnings Per Share
Earnings per share (“EPS”) is computed based on the weighted average number of shares of common stock and common stock equivalents (restricted stock, stock-settled stock appreciation rights and performance units) outstanding during each period. Unvested shares of restricted stock granted to employees are considered participating securities since employees receive nonforfeitable dividends prior to vesting and, therefore, are included in the earnings allocation in computing EPS under the two-class method. Basic EPS excludes dilution and is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing income available to common shareholders by the diluted weighted average number of common shares outstanding during the period, which includes the dilutive potential common shares associated with nonparticipating restricted stock, stock-settled stock appreciation rights and performance units.

Basic and diluted net income per common share were calculated as follows:
Three Months Ended 
March 31,
Nine Months Ended 
March 31,
 2022202120222021
Net (loss) income$(4,483)$28,897 $60,542 $110,606 
Net income available to participating securities(52)(56)(168)(223)
Net (loss) income available to common shareholders$(4,535)$28,841 $60,374 $110,383 
Weighted average common shares outstanding – basic27,442 27,483 27,448 27,474 
Incremental share effect from:
Nonparticipating restricted stock 2 3 2 
Stock-settled stock appreciation rights 41 26 37 
Performance units  1  
Weighted average common shares outstanding – diluted27,442 27,526 27,478 27,513 
Net (loss) income per common share – basic$(0.17)$1.05 $2.20 $4.02 
Net (loss) income per common share – diluted$(0.17)$1.05 $2.20 $4.01 
Accumulated Other Comprehensive Loss
The following table presents the amounts reclassified out of accumulated other comprehensive loss by component:
Three Months Ended 
March 31,
Nine Months Ended 
March 31,
2022202120222021
Accumulated other comprehensive loss at beginning of period$(8,170)$(11,882)$(8,253)$(12,070)
Defined Benefit Pension Plan Items:
Amortization of unrecognized net loss107 172 321 518 
Postretirement Benefit Plan Items:
Amortization of unrecognized net gain(6)(5)(20)(15)
Amortization of prior service credit(45)(45)(136)(136)
Total other comprehensive income, before tax56 122 165 367 
Total tax expense(13)(28)(39)(85)
Other comprehensive income, net of tax43 94 126 282 
Accumulated other comprehensive loss at end of period$(8,127)$(11,788)$(8,127)$(11,788)
10


LANCASTER COLONY CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Tabular amounts in thousands, except per share data)

Significant Accounting Policies
There were no changes to our Significant Accounting Policies from those disclosed in our 2021 Annual Report on Form 10-K.
Recent Accounting Standards
There are no recently issued or adopted accounting standards that will impact our consolidated financial statements.

Note 2 – Fair Value
Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. GAAP sets forth a three-level fair value hierarchy, which prioritizes the inputs used in measuring fair value. The three levels are as follows:
Level 1 – defined as observable inputs, such as quoted market prices in active markets.
Level 2 – defined as inputs other than quoted prices in active markets that are either directly or indirectly observable.
Level 3 – defined as unobservable inputs in which little or no market data exists, therefore, requiring an entity to develop its own assumptions.
Our financial assets and liabilities subject to the three-level fair value hierarchy consist principally of cash and equivalents, accounts receivable, accounts payable, contingent consideration payable and defined benefit pension plan assets. The estimated fair value of cash and equivalents, accounts receivable and accounts payable approximates their carrying value. Impairment charges for property, plant and equipment and intangible assets resulted from nonrecurring fair value measurements. See further discussion in Note 1 and Note 5.
Our contingent consideration, which resulted from the earn-out associated with our acquisition of Bantam, is measured at fair value on a recurring basis and is included in Other Noncurrent Liabilities. The following table summarizes our contingent consideration:
Fair Value Measurements at March 31, 2022
Level 1Level 2Level 3Total
Contingent consideration - Bantam$ $ $ $ 
Fair Value Measurements at June 30, 2021
Level 1Level 2Level 3Total
Contingent consideration - Bantam$ $ $3,470 $3,470 
Bantam Contingent Consideration
This contingent consideration resulted from the earn-out associated with our October 19, 2018 acquisition of Bantam. In general, the terms of the acquisition specify the sellers will receive an earn-out based upon a pre-determined multiple of the defined adjusted EBITDA of Bantam for the twelve months ending December 31, 2023. The initial fair value of the contingent consideration was determined to be $8.0 million. The fair value is measured on a recurring basis using a Monte Carlo simulation that randomly changes revenue growth, forecasted adjusted EBITDA and other uncertain variables to estimate an expected value. We record the present value of this amount by applying a discount rate. As this fair value measurement is based on significant inputs not observable in the market, it represents a Level 3 measurement within the fair value hierarchy.
Our fair value measurement at March 31, 2022 resulted in a $1.3 million reduction in the fair value of Bantam’s contingent consideration based on changes in Bantam’s forecasted adjusted EBITDA for the twelve months ending December 31, 2023. The changes in forecasted adjusted EBITDA primarily reflected lower projected sales levels for Bantam’s Foodservice business. This adjustment was recorded in our Foodservice segment.
Our fair value measurement at December 31, 2021 resulted in a $2.2 million reduction in the fair value of Bantam’s contingent consideration based on changes in Bantam’s forecasted adjusted EBITDA for the twelve months ending December 31, 2023, as well as a refinement to the estimated probabilities applied to our forecast scenarios. The changes in forecasted adjusted EBITDA primarily reflected lower projected sales levels for Bantam’s Retail business while the changes in estimated probabilities reflected a lower likelihood of attaining certain Foodservice business. We recorded $1.3 million of this adjustment in our Foodservice segment and $0.9 million in our Retail segment.
11


LANCASTER COLONY CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Tabular amounts in thousands, except per share data)

Our fair value measurement at September 30, 2020 resulted in a $5.7 million reduction in the fair value of Bantam’s contingent consideration based on changes in Bantam’s forecasted adjusted EBITDA for the twelve months ending December 31, 2023. The changes in forecasted adjusted EBITDA primarily reflected the impact of a SKU rationalization by a Foodservice customer resulting in the loss of sales to that customer after November 30, 2020. This adjustment was recorded in our Foodservice segment.
The following table represents our Level 3 fair value measurements using significant other unobservable inputs for Bantam’s contingent consideration:
Three Months Ended 
March 31,
Nine Months Ended 
March 31,
2022202120222021
Contingent consideration at beginning of period$1,300 $3,470 $3,470 $9,157 
Change in contingent consideration included in operating income(1,300) (3,470)(5,687)
Contingent consideration at end of period$ $3,470 $ $3,470 
Note 3 – Long-Term Debt
At March 31, 2022 and June 30, 2021, we had an unsecured credit facility (“Facility”) under which we could borrow, on a revolving credit basis, up to a maximum of $150 million at any one time, with potential to expand the total credit availability to $225 million based on consent of the issuing banks and certain other conditions. The Facility expires on March 19, 2025, and all outstanding amounts are then due and payable. Interest is variable based upon formulas tied to LIBOR or an alternate base rate defined in the Facility. In the event that LIBOR becomes unavailable or is no longer deemed an appropriate reference rate, the Facility allows for the use of a benchmark replacement rate. We must also pay facility fees that are tied to our then-applicable consolidated leverage ratio. Loans may be used for general corporate purposes. Due to the nature of its terms, when we have outstanding borrowings under the Facility, they will be classified as long-term debt.
The Facility contains certain restrictive covenants, including limitations on indebtedness, asset sales and acquisitions. There are two principal financial covenants: an interest expense test that requires us to maintain an interest coverage ratio not less than 2.5 to 1 at the end of each fiscal quarter; and an indebtedness test that requires us to maintain a consolidated leverage ratio not greater than 3.5 to 1, subject to certain exceptions. The interest coverage ratio is calculated by dividing Consolidated EBIT by Consolidated Interest Expense, and the leverage ratio is calculated by dividing Consolidated Net Debt by Consolidated EBITDA. All financial terms used in the covenant calculations are defined more specifically in the Facility.
At March 31, 2022 and June 30, 2021, we had no borrowings outstanding under the Facility. At March 31, 2022 and June 30, 2021, we had $2.8 million of standby letters of credit outstanding, which reduced the amount available for borrowing under the Facility. We paid no interest for the three and nine months ended March 31, 2022 and 2021.
Note 4 – Commitments and Contingencies
At March 31, 2022, we were a party to various claims and litigation matters arising in the ordinary course of business. Such matters did not have a material effect on the current-year results of operations and, in our opinion, their ultimate disposition will not have a material effect on our consolidated financial statements.
We have a significant remaining commitment of approximately $46 million related to a capacity expansion project at our dressing and sauce facility in Horse Cave, Kentucky.
Our acquisition of Bantam included a provision for contingent consideration for the earn-out associated with this transaction. See further discussion in Note 2.
12


LANCASTER COLONY CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Tabular amounts in thousands, except per share data)

Note 5 – Goodwill and Other Intangible Assets
Goodwill attributable to the Retail and Foodservice segments was $157.4 million and $51.0 million, respectively, at March 31, 2022 and June 30, 2021.
The following table summarizes our identifiable other intangible assets:
March 31,
2022
June 30,
2021
Tradenames (20 to 30-year life)
Gross carrying value$50,321 $62,531 
Accumulated amortization(12,350)(12,421)
Net carrying value$37,971 $50,110 
Customer Relationships (2 to 15-year life)
Gross carrying value$14,207 $17,507 
Accumulated amortization(12,496)(12,912)
Net carrying value$1,711 $4,595 
Technology / Know-how (10-year life)
Gross carrying value$6,350 $8,020 
Accumulated amortization(4,063)(3,973)
Net carrying value$2,287 $4,047 
Non-compete Agreements (5-year life)
Gross carrying value$191 $191 
Accumulated amortization(191)(177)
Net carrying value$ $14 
Total net carrying value$41,969 $58,766 
In the three months ended March 31, 2022, we recorded an impairment charge of $12.3 million to write off the net carrying value of Bantam’s tradename, customer relationships and technology / know-how intangible assets based on our decision to explore strategic alternatives for this business. The impairment charge represents the excess of the carrying value over the fair value of estimated discounted cash flows for the remaining useful life of the intangible assets. The impairment charge is reflected in Restructuring and Impairment Charges and was not allocated to our two reportable segments due to its unusual nature.
In the three months ended December 31, 2021, we recorded an impairment charge of $0.9 million related to Bantam’s Retail customer relationships intangible asset, which reflects lower projected cash flows for Bantam’s Retail business. The impairment charge represents the excess of the carrying value over the fair value of estimated discounted cash flows for the remaining useful life of the intangible asset. The impairment charge is reflected in Restructuring and Impairment Charges and was recorded in our Retail segment.
In the three months ended September 30, 2020, we recorded impairment charges of $1.2 million related to certain tradename and technology / know-how intangible assets for Bantam, which reflected the impact of a SKU rationalization by a Foodservice customer resulting in the loss of sales to that customer after November 30, 2020. The impairment charges represent the excess of the carrying value over the fair value of estimated discounted cash flows for the remaining useful lives of the intangible assets. The impairment charges are reflected in Restructuring and Impairment Charges and were recorded in our Foodservice segment. We also reduced the remaining useful life for Bantam’s Foodservice customer relationship and have recorded accelerated amortization expense.
As the fair value measurements used above were based on significant inputs not observable in the market, they represent Level 3 measurements within the fair value hierarchy.
13


LANCASTER COLONY CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Tabular amounts in thousands, except per share data)

Amortization expense for our other intangible assets, which is reflected in Selling, General and Administrative Expenses, was as follows:
Three Months Ended 
March 31,
Nine Months Ended 
March 31,
 2022202120222021
Amortization expense$1,161 $1,203 $3,562 $4,052 
Total annual amortization expense for each of the next five years is estimated to be as follows:
2023$3,105 
2024$3,105 
2025$2,845 
2026$2,215 
2027$2,044 
Note 6 – Income Taxes
Prepaid federal income taxes of $6.5 million and $5.1 million were included in Other Current Assets at March 31, 2022 and June 30, 2021, respectively. Prepaid state and local income taxes of $1.7 million and $1.1 million were included in Other Current Assets at March 31, 2022 and June 30, 2021, respectively.
Note 7 – Business Segment Information
Our financial results are presented as two reportable segments: Retail and Foodservice. Costs that are directly attributable to either Retail or Foodservice are charged directly to the appropriate segment. Costs that are deemed to be indirect, excluding corporate expenses and other unusual significant transactions, are allocated to the two reportable segments using a reasonable methodology that is consistently applied.
Retail - The vast majority of the products we sell in the Retail segment are sold through sales personnel, food brokers and distributors in the United States. We have placement of products in grocery produce departments through our refrigerated salad dressings, vegetable dips and fruit dips. Our flatbread products and sprouted grain bakery products are generally placed in the specialty bakery/deli section of the grocery store. We also have products typically marketed in the shelf-stable section of the grocery store, which include salad dressings, slaw dressing, sauces and croutons. Within the frozen food section of the grocery store, we sell yeast rolls, garlic breads and mini stuffed bagels.
Foodservice - The vast majority of the products we sell in the Foodservice segment are sold through sales personnel, food brokers and distributors in the United States. Most of the products we sell in the Foodservice segment are custom-formulated and include salad dressings, sandwich and dipping sauces, frozen breads and yeast rolls. The majority of our Foodservice sales are products sold under private label to restaurants. We also manufacture and sell various branded Foodservice products to distributors. Finally, within this segment, we sold other roll products under a temporary supply agreement resulting from the acquisition of Omni Baking Company LLC. The temporary supply agreement was terminated effective October 31, 2020.
As many of our products are similar between our two segments, our procurement, manufacturing, warehousing and distribution activities are substantially integrated across our operations in order to maximize efficiency and productivity. Consequently, we do not prepare, and our Chief Operating Decision Maker does not review, separate balance sheets for the reportable segments. As such, our external reporting does not include the presentation of identifiable assets by reportable segment. The composition of our identifiable assets at March 31, 2022 is generally consistent with that of June 30, 2021. However, due to the decrease in cash and equivalents, the amount of Corporate assets has decreased as compared to June 30, 2021.
14


LANCASTER COLONY CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Tabular amounts in thousands, except per share data)

We evaluate our Retail and Foodservice segments based on net sales and operating income which follow:
 Three Months Ended 
March 31,
Nine Months Ended 
March 31,
 2022202120222021
Net Sales
Retail$213,128 $198,358 $682,102 $614,653 
Foodservice190,366 158,891 541,875 466,848 
Total$403,494 $357,249 $1,223,977 $1,081,501 
Operating Income
Retail$22,213 $41,179 $119,997 $144,557 
Foodservice18,556 21,088 52,690 66,845 
Nonallocated Restructuring and Impairment Charges (1)
(22,723) (23,749) 
Corporate Expenses(25,663)(24,879)(70,738)(66,468)
Total$(7,617)$37,388 $78,200 $144,934 
(1)Reflects restructuring and impairment charges related to the Bantam business and a facility closure, which were not allocated to our two reportable segments due to their unusual nature.
The following table sets forth net sales disaggregated by class of similar products for the Retail and Foodservice segments:
 Three Months Ended 
March 31,
Nine Months Ended 
March 31,
 2022202120222021
Retail
Shelf-stable dressings, sauces and croutons$94,578 $75,773 $272,439 $199,292 
Frozen breads73,328 73,628 258,426 250,157 
Refrigerated dressings, dips and other45,222 48,957 151,237 165,204 
Total Retail net sales$213,128 $198,358 $682,102 $614,653 
Foodservice
Dressings and sauces$143,156 $120,925 $403,953 $347,101 
Frozen breads and other47,210 37,966 137,922 116,040 
Other roll products   3,707 
Total Foodservice net sales$190,366 $158,891 $541,875 $466,848 
Total net sales$403,494 $357,249 $1,223,977 $1,081,501 
The following table provides an additional disaggregation of Foodservice net sales by type of customer:
 Three Months Ended 
March 31,
Nine Months Ended 
March 31,
 2022202120222021
Foodservice
National accounts$146,959 $124,323 $414,840 $359,228 
Branded and other43,407 34,568 127,035 103,913 
Other roll products   3,707 
Total Foodservice net sales$190,366 $158,891 $541,875 $466,848 
15


LANCASTER COLONY CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Tabular amounts in thousands, except per share data)

Note 8 – Stock-Based Compensation
There have been no changes to our stock-based compensation plan as disclosed in our 2021 Annual Report on Form 10-K. However, as permitted under this plan, we made an initial grant of performance units in August 2021. These performance units have either a market condition or a performance condition and will vest 3 years after the grant date. Dividend equivalents earned during the vesting period will be paid at the time the awards vest.
Our stock-settled stock appreciation rights (“SSSARs”) compensation expense was $0.9 million for the three months ended March 31, 2022 and 2021. Year-to-date SSSARs compensation expense was $2.9 million for the current-year period compared to $2.6 million for the prior-year period. At March 31, 2022, there was $3.9 million of unrecognized compensation expense related to SSSARs that we will recognize over a weighted-average period of 2 years.
Our restricted stock compensation expense was $1.3 million and $0.8 million for the three months ended March 31, 2022 and 2021, respectively. Year-to-date restricted stock compensation expense was $3.7 million for the current-year period compared to $2.6 million for the prior-year period. At March 31, 2022, there was $7.3 million of unrecognized compensation expense related to restricted stock that we will recognize over a weighted-average period of 2 years.
Our performance units compensation expense was $0.3 million for the three months ended March 31, 2022. Year-to-date performance units compensation expense was $0.8 million for the current-year period. At March 31, 2022, there was $2.9 million of unrecognized compensation expense related to performance units that we will recognize over a weighted-average period of 2 years.
16



Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Our fiscal year begins on July 1 and ends on June 30. Unless otherwise noted, references to “year” pertain to our fiscal year; for example, 2022 refers to fiscal 2022, which is the period from July 1, 2021 to June 30, 2022.
The following discussion should be read in conjunction with our condensed consolidated financial statements and the notes thereto, all included elsewhere in this report, and our 2021 Annual Report on Form 10-K. The forward-looking statements in this section and other parts of this report involve risks, uncertainties and other factors, including statements regarding our plans, objectives, goals, strategies, and financial performance. Our actual results could differ materially from the results anticipated in these forward-looking statements due to these factors. For more information, see the section below entitled “Forward-Looking Statements.”
OVERVIEW
Business Overview
Lancaster Colony Corporation is a manufacturer and marketer of specialty food products for the retail and foodservice channels.
Our financial results are presented as two reportable segments: Retail and Foodservice. Costs that are directly attributable to either Retail or Foodservice are charged directly to the appropriate segment. Costs that are deemed to be indirect, excluding corporate expenses and other unusual significant transactions, are allocated to the two reportable segments using a reasonable methodology that is consistently applied.