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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Jun. 30, 2018	Aug. 17, 2018	Dec. 31, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	TUESDAY MORNING CORP/DE
Entity Central Index Key	0000878726
Document Type	10-K
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Trading Symbol	TUES
Current Fiscal Year End Date	--06-30
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		45,917,531
Entity Public Float			$ 101,965,702

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017
Current assets:
Cash and cash equivalents	$ 9,510	$ 6,263
Inventories	234,365	221,906
Prepaid expenses	6,301	6,367
Other current assets	1,206	1,982
Total Current Assets	251,382	236,518
Property and equipment, net	121,117	118,397
Deferred financing costs	671	986
Other assets	3,086	2,252
Total Assets	376,256	358,153
Current liabilities:
Accounts payable	88,912	67,326
Accrued liabilities	41,765	44,260
Income taxes payable	66	11
Total Current Liabilities	130,743	111,597
Borrowings under revolving credit facility	38,480	30,500
Deferred rent	22,883	13,883
Asset retirement obligation — non-current	3,100	2,307
Other liabilities — non-current	796	1,027
Total Liabilities	196,002	159,314
Commitments and contingencies
Stockholders’ equity:
Preferred stock, par value $0.01 per share, authorized 10,000,000 shares; none issued or outstanding
Common stock, par value $0.01 per share, authorized 100,000,000 shares; 47,648,958 shares issued and 45,865,297 shares outstanding at June 30, 2018 and 46,904,295 shares issued and 45,120,634 shares outstanding at June 30, 2017	469	469
Additional paid-in capital	237,957	234,604
Retained deficit	(51,360)	(29,422)
Less: 1,783,661 common shares in treasury, at cost, at June 30, 2018, 1,783,661 common shares in treasury at cost at June 30, 2017	(6,812)	(6,812)
Total Stockholders’ Equity	180,254	198,839
Total Liabilities and Stockholders’ Equity	$ 376,256	$ 358,153

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
Net sales	$ 230,473	$ 223,296	$ 333,807	$ 218,756	$ 223,642	$ 203,001	$ 328,137	$ 211,885	$ 1,006,332	$ 966,665	$ 956,396
Cost of sales									665,358	645,920	614,594
Gross profit	77,036	80,303	105,685	77,950	70,268	67,156	105,982	77,339	340,974	320,745	341,802
Selling, general and administrative expenses									361,924	353,025	339,398
Operating income/(loss)	(9,443)	(7,789)	8,276	(11,994)	(17,129)	(14,678)	8,767	(9,240)	(20,950)	(32,280)	2,404
Other income/(expense):
Interest expense									(2,061)	(1,485)	(1,068)
Other income, net									934	1,420	2,640
Income/(loss) before income taxes									(22,077)	(32,345)	3,976
Income tax provision/(benefit)									(139)	197	263
Net income/(loss)	$ (10,296)	$ (8,080)	$ 8,692	$ (12,254)	$ (17,321)	$ (14,796)	$ 8,430	$ (8,855)	$ (21,938)	$ (32,542)	$ 3,713
Net income/(loss) per common share:
Basic	$ (0.23)	$ (0.18)	$ 0.19	$ (0.28)	$ (0.39)	$ (0.34)	$ 0.19	$ (0.20)	$ (0.50)	$ (0.74)	$ 0.08
Diluted	$ (0.23)	$ (0.18)	$ 0.19	$ (0.28)	$ (0.39)	$ (0.34)	$ 0.19	$ (0.20)	$ (0.50)	$ (0.74)	$ 0.08
Weighted average number of common shares:
Basic									44,282	43,943	43,705
Diluted									44,282	43,943	43,736

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained (Deficit) Earnings	Treasury Stock
Balance at Jun. 30, 2015	$ 220,289	$ 458	$ 227,085	$ (593)	$ (6,661)
Balance (in shares) at Jun. 30, 2015		44,069,000
Net income (loss)	3,713			3,713
Shares issued or canceled in connection with employee stock incentive plans and related tax effect	5	$ 5
Shares issued or canceled in connection with employee stock incentive plans and related tax effect (in shares)		505,000
Shares issued in connection with exercises of employee stock options (in shares)		5,000
Purchase of treasury stock	(128)				(128)
Purchase of treasury stock (in shares)		(18,000)
Share-based compensation expense	3,403		3,403
Balance at Jun. 30, 2016	227,282	$ 463	230,488	3,120	(6,789)
Balance (in shares) at Jun. 30, 2016		44,561,000
Net income (loss)	(32,542)			(32,542)
Shares issued or canceled in connection with employee stock incentive plans and related tax effect	6	$ 6
Shares issued or canceled in connection with employee stock incentive plans and related tax effect (in shares)		558,000
Shares issued in connection with exercises of employee stock options	2		2
Shares issued in connection with exercises of employee stock options (in shares)		6,000
Purchase of treasury stock	(23)				(23)
Purchase of treasury stock (in shares)		(4,000)
Share-based compensation expense	4,114		4,114
Balance at Jun. 30, 2017	$ 198,839	$ 469	234,604	(29,422)	(6,812)
Balance (in shares) at Jun. 30, 2017	45,120,634	45,121,000
Net income (loss)	$ (21,938)			(21,938)
Shares issued or canceled in connection with employee stock incentive plans and related tax effect (in shares)		741,000
Shares issued in connection with exercises of employee stock options	4		4
Shares issued in connection with exercises of employee stock options (in shares)		3,000
Share-based compensation expense	3,349		3,349
Balance at Jun. 30, 2018	$ 180,254	$ 469	$ 237,957	$ (51,360)	$ (6,812)
Balance (in shares) at Jun. 30, 2018	45,865,297	45,865,000

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net income/(loss)	$ (21,938)	$ (32,542)	$ 3,713
Adjustments to reconcile net income/(loss) to net cash provided by operating activities:
Depreciation and amortization	25,671	21,349	16,010
Amortization of financing costs	315	326	462
Loss on disposal of assets	82	79	700
Gain on sale-leaseback transaction	(371)	(741)	(2,515)
Share-based compensation	3,433	4,184	3,115
Deferred income taxes	(565)	31	11
Construction allowances from landlords	8,568	2,566
Change in operating assets and liabilities:
Inventories	(12,543)	20,339	(32,043)
Prepaid and other current assets	559	(1,138)	633
Accounts payable	22,612	(16,337)	6,611
Accrued liabilities	(362)	(2,047)	6,653
Deferred rent	1,280	4,964	2,805
Income taxes payable	62	19	(10)
Other liabilities—non-current	368	(648)	2,268
Net cash provided by operating activities	27,171	404	8,413
Cash flows from investing activities:
Capital expenditures	(30,764)	(41,682)	(45,545)
Proceeds from sale-leaseback transaction			8,797
Purchase of intellectual property	(42)	(5)	(1,318)
Proceeds from sale of assets	83	127	41
Net cash used in investing activities	(30,723)	(41,560)	(38,025)
Cash flows from financing activities:
Proceeds under revolving credit facility	195,500	176,500
Repayments under revolving credit facility	(187,520)	(146,000)
Change in cash overdraft	(1,026)	2,810
Proceeds from the exercise of employee stock options	4	8	5
Payments on capital leases	(159)	(26)
Purchase of treasury stock		(23)	(128)
Payment of financing costs			(903)
Net cash provided by/(used in) financing activities	6,799	33,269	(1,026)
Net increase/(decrease) in cash and cash equivalents	3,247	(7,887)	(30,638)
Cash and cash equivalents, beginning of period	6,263	14,150	44,788
Cash and cash equivalents, end of period	9,510	6,263	14,150
Supplemental cash flow information:
Interest paid	1,615	1,113	541
Income taxes paid	$ 285	310	$ 256
Capital lease obligation incurred		$ 817

Nature of Operations and Summary of Significant Accounting Policies

12 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Nature of Operations and Summary of Significant Accounting Policies

(1) NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Throughout these notes, Tuesday Morning Corporation is referred to as “Tuesday Morning,” “we” or “the Company”.

Tuesday Morning is a leading off-price retailer, specializing in name-brand, high-quality products for the home, including upscale textiles, furnishings, housewares, gourmet food, toys and seasonal décor at prices generally below those charged by boutique, specialty and department stores, catalogs and on‑line retailers in the United States. We operated 726 discount retail stores in 40 states as of June 30, 2018 (731 and 751 stores at June 30, 2017 and 2016, respectively). We distribute periodic circulars and direct mail that keep customers familiar with Tuesday Morning.

(a)

Basis of Presentation—The accompanying consolidated financial statements include the accounts of Tuesday Morning Corporation, a Delaware corporation, and its wholly‑owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. We operate our business as a single operating segment. Certain reclassifications were made to prior period amounts to conform to the current period presentation. None of the reclassifications affected our net income/(loss) in any period. We do not present a separate statement of comprehensive income, as we have no material other comprehensive income items. Our fiscal year ended on June 30, 2018, which we refer to as fiscal 2018.

(b)

Use of Estimates—The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of net sales and expenses during the reporting period. Actual results could differ from those estimates.

(c)

Cash and Cash Equivalents—Cash and cash equivalents include credit card receivables and all highly liquid instruments with original maturities of three months or less. Cash equivalents are carried at cost, which approximates fair value. At June 30, 2018 and 2017, credit card receivables from third party consumer credit card providers were $7.9 million and $4.9 million, respectively. Such receivables are generally collected within one week of the balance sheet date.

(d)

Inventories—Inventories, consisting of finished goods, are stated at the lower of cost or market using the retail inventory method for store inventory and the specific identification method for warehouse inventory. We have a perpetual inventory system that tracks on hand inventory and inventory sold at a SKU level. Inventory is relieved and cost of sales is recorded based on the current cost of the item sold. Buying, distribution, freight and certain other costs are capitalized as part of inventory and are charged to cost of sales as the related inventory is sold. We charged $109.1 million, $108.2 million, and $83.7 million, of such capitalized inventory costs to cost of sales for the fiscal years ended June 30, 2018, 2017, and 2016, respectively. We have capitalized $32.5 million and $33.9 million of such costs in inventory at June 30, 2018 and 2017, respectively.

Stores conduct annual physical inventories, staggered during the second half of the fiscal year. We make adjustments to our financial statements based on the results of the physical inventories. During periods in which no physical inventories occur, we utilize an estimate for recording shrinkage reserves, based on historical trends of physical inventory results. These shrinkage reserves may require a favorable or unfavorable adjustment to actual results to the extent our subsequent physical inventories yield a different result.

We review our inventory during and at the end of each quarter to ensure that all necessary pricing actions are taken to adequately value our inventory at the lower of cost or market by recording permanent markdowns to our on hand inventory. Management believes these markdowns result in the appropriate prices necessary to stimulate demand for the merchandise. Actual recorded permanent markdowns could differ materially from management’s initial estimates based on future customer demand or economic conditions.

(e)	Property and Equipment—Property and equipment are stated at cost. Buildings, furniture, fixtures, leasehold improvements, capital leases and equipment are depreciated on a straight‑line basis over the estimated useful lives of the assets as follows:

Estimated Useful Lives

Buildings		30 years
Furniture and fixtures		3 to 7 years
Leasehold improvements		Shorter of useful life or lease term
Equipment		5 to 10 years
Assets under capital lease		Shorter of useful life or lease term
Software		3 to 10 years

Upon sale or retirement of an asset, the related cost and accumulated depreciation are removed from our balance sheet and any gain or loss is recognized in the statement of operations. Expenditures for maintenance, minor renewals and repairs are expensed as incurred, while major replacements and improvements are capitalized. For both the fiscal years ended June 30, 2018 and June 30, 2017, we disposed of assets with a net book value of approximately $0.1 million, primarily related to our store closing and relocation program. Gains or losses related to the sale or other disposal of such assets in these periods were presented in other income/(expense) on our Consolidated Statement of Operations.

(f)	Deferred Financing Costs—Deferred financing costs represent costs paid in connection with obtaining bank and other long‑term financing. These costs are amortized over the term of the related financing using the effective interest method.

(g)

Income Taxes—Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using statutory tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date of enactment. Valuation allowances are established against deferred tax assets when it is more likely than not that the realization of those deferred tax assets will not occur. Valuation allowances are released when positive evidence becomes available that future taxable income is sufficient to utilize the underlying deferred tax assets.

We file our annual federal income tax return on a consolidated basis. Furthermore, we recognize uncertain tax positions when we have determined it is more likely than not that a tax position will be sustained upon examination. However, new information may become available, or applicable laws or regulations may change, thereby resulting in a favorable or unfavorable adjustment to amounts recorded.

Our results of operations included the estimated impact of the enactment of the Tax Cuts and Jobs Act of 2017 (“TCJA”), which was signed into law on December 22, 2017. The TCJA makes significant and complex changes to U.S. tax law including, but not limited to, (i) reducing the U.S. federal corporate tax rate from 35% to 21%; (ii) eliminating the corporate alternative minimum tax (“AMT”) and providing a refund mechanism for existing AMT credits; (iii) creating a new limitation on the deductibility of interest expense; (iv) changing rules related to uses and limitation of net operating loss carryforwards created in tax years beginning after December 31, 2017; and (v) significant acceleration of depreciation expense. As a result of the adoption of the TCJA upon enactment during fiscal year 2018, the blended statutory federal tax rate for the year was 27.2%. We continue to assess our accounting for the tax effects of enactment of the TCJA. Final calculations will be completed within the one year measurement period ending December 22, 2018, as required under the rules issued by the SEC. We currently expect the effect of the tax law change to have a nominal impact on our annual effective tax rate, given our cumulative loss position and the related valuation allowance on our deferred tax assets. The future impacts of the TCJA may differ due to, among other things, changes in interpretations, assumptions made, the issuance of additional guidance, and actions we may take as a result of the TCJA.

In the second fiscal quarter of 2018, we applied the provisions of the newly enacted TCJA, resulting in an approximate $0.5 million income tax benefit connected with future refunds of AMT credits no longer requiring a valuation allowance. In the third fiscal quarter of 2018, we recognized a $0.1 million additional benefit related to AMT credits. Applying the provisions of TCJA, including the remeasurement of our deferred taxes at the new corporate tax rate, had a material impact on our gross deferred taxes; however, the impact was mitigated as substantially all of our net deferred tax assets have corresponding valuation allowances.

(h)

Self-Insurance Reserves—We use a combination of insurance and self‑insurance plans to provide for the potential liabilities associated with workers’ compensation, general liability, property insurance, director and officers’ liability insurance, vehicle liability and employee health care benefits. Our stop loss limits per claim are $500,000 for workers’ compensation, $250,000 for general liability, and $150,000 for medical. Liabilities associated with the risks that are retained by us are estimated, in part, by historical claims experience, severity factors and the use of loss development factors.

The insurance liabilities we record are primarily influenced by the frequency and severity of claims, and include a reserve for claims incurred but not yet reported. Our estimated reserves may be materially different from our future actual claim costs, and, when required adjustments to our estimate reserves are identified, the liability will be adjusted accordingly in that period. Our self‑insurance reserves for workers’ compensation, general liability and medical were $10.1 million and $1.8 million and $0.9 million, respectively, at June 30, 2018 and $8.6 million, $2.5 million, and $1.1 million, respectively, at June 30, 2017.

We recognize insurance expenses based on the date of an occurrence of a loss including the actual and estimated ultimate costs of our claims. Claims are paid from our reserves and our current period insurance expense is adjusted for the difference in prior period recorded reserves and actual payments as well as changes in estimated reserves. Current period insurance expenses also include the amortization of our premiums paid to our insurance carriers. Expenses for workers’ compensation, general liability and medical insurance were $5.3 million, $2.9 million and $6.4 million, respectively, for the fiscal year ended June 30, 2018, $4.8 million, $3.4 million and $7.7 million, respectively, for the fiscal year ended June 30, 2017, and $3.4 million, $4.0 million and $7.3 million, respectively, for the fiscal year ended June 30, 2016.

(i)

Revenue Recognition—Sales are recorded at the point of sale and conveyance of merchandise to customers. Sales are net of returns and exclude sales tax. We maintain a reserve for estimated returns. We use historical customer return behavior to estimate our reserve requirements. Gift cards are sold to customers in our stores and we issue gift cards for merchandise returns in our stores. Revenue from sales of gift cards and issuances of merchandise credits is recognized when the gift card is redeemed by the customer, or if the likelihood of the gift card being redeemed by the customer is remote (gift card breakage). The gift card breakage rate is determined based upon historical redemption patterns. An estimate of the rate of gift card breakage is applied over the period of estimated performance (36 months as of the end of fiscal 2018) and the breakage amounts are included in net sales in the Consolidated Statement of Operations. We recorded $0.6 million, $0.9 million and $0.6 million of gift card breakage in fiscal years 2018, 2017 and 2016 respectively.

(j)

Advertising—Costs for direct mail, television, radio, newspaper, digital and other media are expensed as the advertised events take place. Advertising expenses for the fiscal years ended June 30, 2018, 2017, and 2016 were $27.2 million, $29.0 million, and $28.9 million, respectively. We do not receive consideration from vendors to support our advertising expenditures. As of June 30, 2018, prepaid advertising was approximately $60,000 compared to $149,000 at June 30, 2017.

(k)	Financial Instruments—The fair value of financial instruments is determined by reference to various market data and other valuation techniques as appropriate. The only financial instrument we carry is our revolving credit facility. See Note 3.

(l)	Share‑Based Compensation—The fair value of each stock option granted during the fiscal years ended June 30, 2018, 2017 and 2016 was estimated at the date of grant using a Black‑Scholes option pricing model.

The risk‑free interest rate is the constant maturity risk free interest rate for U.S. Treasury instruments with terms consistent with the expected lives of the awards. The expected term of an option is based on our historical review of employee exercise behavior based on the employee class (executive or non‑executive) and based on our consideration of the remaining contractual term if limited exercise activity existed for a certain employee class. The expected volatility is based on both the historical volatility of our stock based on our historical stock prices and implied volatility of our traded stock options. The expected dividend yield is based on our expectation of not paying dividends on our common stock for the foreseeable future.

These inputs were as follows:

	Fiscal Years Ended June 30,
	2018		2017		2016
Weighted average risk-free interest rate	1.7 - 2.5%		0.6 - 1.9%		1.0 - 1.9%
Expected life of options (years)	3.8 - 4.9		3.0 - 5.5		2.9 - 5.6
Expected stock volatility	60.0 - 63.3%		52.7 - 61.0%		46.4 - 56.1%
Expected dividend yield		0.0%		0.0%		0.0%

(m)

Net Income/(Loss) Per Common Share—Basic net income/(loss) per common share for the fiscal years ended June 30, 2018, 2017, and 2016, was calculated by dividing net income/(loss) by the weighted average number of common shares outstanding for each period. Diluted net income/(loss) per common share for the fiscal years ended June 30, 2018, 2017, and 2016, was calculated by dividing net income by the weighted average number of common shares including the impact of dilutive common stock equivalents. See Note 9.

(n)

Impairment of Long‑Lived Assets and Long‑Lived Assets to Be Disposed Of — Long‑lived assets, principally property and equipment and leasehold improvements, are reviewed for impairment when circumstances indicate the carrying amount of an asset may not be recoverable. For assets that are to be held and used, an impairment is recognized when the estimated undiscounted cash flows associated with the asset or group of assets is less than their carrying amount. If impairment exists, an adjustment is recorded to write the asset down to its fair value, and a loss is recorded as the difference between the carrying amount and fair value. Fair values are determined based on quoted market values, discounted cash flows or internal appraisals, as applicable. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. Impairment of long‑lived assets has not had a material impact on our financial position, results of operations or liquidity for the periods presented.

(o)

Intellectual Property — Our intellectual property primarily consists of indefinite lived trademarks. We evaluate annually whether the trademarks continue to have an indefinite life. Trademarks and other intellectual property are reviewed for impairment annually in the fourth quarter, and may be reviewed more frequently if indicators of impairment are present.

As of June 30, 2018, the carrying value of the intellectual property, which included indefinite lived trademarks, was $1.2 million and no impairment was identified or recorded.

(p)

Cease use Liability — Amounts in “Accrued liabilities” and “Other liabilities – non-current” in the Consolidated Balance Sheets include the current and long-term portions, respectively, of accruals for the net present value of future minimum lease payments, net of estimated sublease income, attributable to closed stores with remaining lease obligations. The cease use liability was $77,000 at June 30, 2018, and was all classified as short-term. The short-term and long-term cease use liabilities were $1.0 and $0.5 million at June 30, 2017, respectively. Expenses related to store closings are included in “Selling, general and administrative expenses” in the Consolidated Statements of Operations.

(q)

Sale-leaseback — During the fourth quarter of 2016, we entered into a sale-leaseback transaction to sell two buildings and land utilized in our Dallas distribution center operations, which we did not consider part of our long-term distribution network, and leased back these facilities through December 2017. We subsequently exercised our option to extend the related lease through March 2018, which was accounted for as an operating lease and has now expired. We had no continuing involvement with the properties sold other than a normal leaseback.

The consideration received for the sale, as reduced by closing and transaction costs, was $8.8 million, and the net book value of properties sold was $5.2 million, resulting in a $3.6 million gain. The gain recognized in fiscal year 2016 was $2.5 million, which included the portion of the gain in excess of the present value of the minimum lease payments for the leaseback, and was included in “Other income” in our Consolidated Statement of Operations. During fiscal 2017, we recognized $0.7 million of the gain. During fiscal 2018, we recognized the remaining $0.4 million of the gain.

(r)

Asset Retirement Obligations — We account for asset retirement obligations (“ARO”) in accordance with ASC 410, Asset Retirement and Environmental Obligations, which requires the recognition of a liability for the fair value of a legally required asset retirement obligation when incurred if the liability’s fair value can be reasonably estimated. Our ARO liabilities are associated with the disposal and retirement of leasehold improvements and removal of installed equipment, resulting from contractual obligations, at the end of a lease to restore a facility to a condition specified in the lease agreement.

We record the net present value of the ARO liability and also record a related capital asset, in an equal amount, for leases which contractually result in an asset retirement obligation. The estimated ARO liability is based on a number of assumptions, including costs to return facilities back to specified conditions, inflation rates and discount rates. Accretion expense related to the ARO liability is recognized as operating expense in our Consolidated Statements of Operations. The capitalized asset is depreciated on a straight-line basis over the useful life of the related leasehold improvements. Upon ARO fulfillment, any difference between the actual retirement expense incurred and the recorded estimated ARO liability is recognized as an operating gain or loss in our Consolidated Statements of Operations. Our ARO liability, which totaled $3.2 million at June 30, 2018, was comprised of a $0.1 million short-term portion included in accrued liabilities and $3.1 million long-term portion included in “Other liabilities—non-current” on our Consolidated Balance Sheet at June 30, 2018. At June 30, 2017, our ARO liability, which totaled $2.5 million, was comprised of a $0.2 million short-term portion included accrued liabilities and $2.3 million long term portion included in “Other liabilities – non-current” on our Consolidated Balance Sheet at June 30, 2017.

(s)

Capital lease – During fiscal 2017, we entered into a 5-year capital lease maturing on January 31, 2022 for equipment and software. At June 30, 2018, the capital lease asset balance was $0.6 million, the current lease liability was $0.2 million and the long-term lease liability was $0.4 million. The capital lease is amortized on a straight-line basis. During fiscal year 2018, the capital lease amortization was $0.2 million. At June 30, 2017, the capital lease asset balance was $0.8 million, the current lease liability was $0.1 million and the long-term lease liability was $0.6 million. During fiscal year 2017, the capital asset amortization was less than $0.1 million.

(t)

Legal Proceedings — The Company was a defendant in a purported class action lawsuit, Jerry Castillo v. Tuesday Morning Inc., which was filed on December 28, 2017 in the United States District Court, Middle District of Florida. The case was brought under the Fair Labor Standards Act and included allegations that the Company violated various wage and hour labor laws. Relief was sought on behalf of current and former Company employees. The lawsuit sought to recover damages, penalties and attorneys’ fees as a result of the alleged violations. The matter settled for an amount not material to the Company and the Court approved the settlement on July 9, 2018.

The Company was also a defendant in a purported class action lawsuit, Hector Velarde, on behalf of himself and all other similar situated, Pltf. vs. Tuesday Morning, Inc., which was filed on February 26, 2018 in state court and was pending in the United States District Court, Central District of California. The case was brought under the Unruh Civil Rights Act, California Code § 51 ci seq. (“Unruh Act”), the California Disabled persons Act, California Civil Code § 54 et seq. (“CDPA”), and Cal. Civ. Code § 55 et seq. and included allegations that the Company violated various public access laws. The lawsuit sought to recover damages, penalties and attorneys' fees as a result of the alleged violations. The matter settled for an amount not material to the Company and the Court approved the settlement on July 11, 2018.

(u)

Recent Accounting Pronouncements — In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, “Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118),” which allows the Company to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. Since the TCJA was passed late in the fourth calendar quarter of 2017, and ongoing guidance and accounting interpretation is expected over the next twelve months, management considers the deferred tax re-measurements and other items to be incomplete due to the forthcoming guidance and the ongoing analysis of final year-end data and tax positions. The Company expects to complete its analysis within the measurement period in accordance with SAB 118.

In August 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which provides guidance on eight specific cash flow issues in regard to how cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those years. The amendments in ASU 2016-15 should be adopted on a retrospective basis unless it is impracticable to apply, in which case the amendments should be applied prospectively as of the earliest date practicable. The Company currently expects to adopt this standard in the first quarter of fiscal 2019 and is evaluating the impact that this standard will have on its consolidated financial statements and disclosures.

In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”) to reduce the complexity of certain aspects of the accounting for employee share-based payment transactions. ASU 2016-09 involves changes in several aspects of the accounting for share-based payment transactions, including the accounting for the income tax consequences of share-based awards. For public companies, ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The Company adopted ASU 2016-09 in the first quarter of fiscal 2018 and elected to continue to estimate forfeitures expected to occur to determine the amount of share based compensation cost to recognize in each period, as permitted by ASU 2016-09. In addition, the adoption of this standard prospectively changes the dilutive earnings per share calculation by removing excess tax benefits and deficiencies from the computation. The adoption of this standard did not materially impact our consolidated financial statements and disclosures.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which is intended to improve financial reporting in connection with leasing transactions. ASU 2016-02 will require entities (“lessees”) that lease assets with lease terms of more than twelve months to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Under ASU 2016-02, a right-of-use asset and lease obligation will be recorded for all leases, whether operating or finance, while the income statement will reflect lease expense for operating leases and amortization/interest expense for finance leases. Accounting by entities that own the assets leased by lessees (“lessors”) will remain largely unchanged from current GAAP. In addition, ASU 2016-02 requires disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. For public companies, ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. A modified retrospective approach is required for all leases existing or entered into after the beginning of the earliest comparative period in the financial statements. The Company currently expects to adopt this standard in the first quarter of fiscal 2020. While the Company is currently evaluating the provisions of ASU 2016-02 to assess the impact on the Company’s consolidated financial statements and disclosures, the primary effect of adopting the new standard will be to record assets and obligations for current operating leases.

In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory (“ASU 2015-11”), which changes the measurement principle for inventory from the lower of cost or market to the lower of cost or net realizable value, except for companies using the Retail Inventory Method which will continue to use existing impairment models. ASU 2015-11 defines net realizable value as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The new guidance was required to be applied on a prospective basis and was effective for fiscal years beginning after December 15, 2016, and interim periods within those years. The Company adopted ASU 2015-11 in the first quarter of fiscal 2018. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements and disclosures.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), an updated standard on revenue recognition, and has since modified the standard with additional ASUs. The new guidance provides enhancements to the quality and consistency of how revenue is reported while also improving comparability in the financial statements of companies reporting using IFRS and GAAP. The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration, or payment, to which the company expects to be entitled in exchange for those goods or services. In July 2015, the FASB deferred the effective date of ASU 2014-09. Accordingly, this standard is effective for reporting periods beginning after December 15, 2017, including interim periods within that year. The Company has substantially concluded its assessment of the new revenue standard and will adopt this standard in the first quarter of fiscal 2019 using the modified retrospective method. The Company currently expects that this standard will not have a material impact on its consolidated financial statements but will require additional disclosures.

Income Taxes

12 Months Ended

Jun. 30, 2018

Income Tax Disclosure [Abstract]

Income Taxes

(5) INCOME TAXES

Income tax provision/(benefit) consisted of (in thousands):

	Current			Deferred			Total
Fiscal Year Ended June 30, 2018
Federal	$	—		$	(568	)	$	(568	)
State and local		426			3			429
Total	$	426		$	(565	)	$	(139	)
Fiscal Year Ended June 30, 2017
Federal	$	—		$	27		$	27
State and local		166			4			170
Total	$	166		$	31		$	197
Fiscal Year Ended June 30, 2016
Federal	$	(147	)	$	186		$	39
State and local		399			(175	)		224
Total	$	252		$	11		$	263

A reconciliation between income taxes computed at the blended statutory federal income tax rate of 27.2% in fiscal 2018 (see Note 1) and the statutory federal income tax rate of 34% in fiscal 2017 and 2016, and income taxes recognized in the Consolidated Statements of Operations was as follows (in thousands):

	Fiscal Year Ended
	June 30,
	2018			2017			2016
Federal income tax provision/(benefit) computed at statutory rate	$	(6,005	)	$	(10,997	)	$	1,351
State income taxes, net of related federal tax benefit		314			106			157
Increase/(decrease) in federal valuation allowance		5,182			10,076			(668	)
Federal tax credits		(200	)		68			(670	)
Stock option expiration/deficiencies		586			938			—
Federal tax rate change		(19	)		—			—
Other, net		3			6			93
Provision for income taxes	$	(139	)	$	197		$	263

Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities for the fiscal years ended June 30, 2018, 2017 and 2016, all of which are classified as non-current in our Consolidated Balance Sheets, were comprised of the following (in thousands):

	June 30,
	2018			2017			2016
Deferred tax assets:
Other payroll and benefits	$	580		$	681		$	1,482
Inventory reserves		266			195			268
Self-insurance reserves		3,389			4,517			4,611
Share-based compensation		2,104			3,564			3,807
Other current assets		2,441			2,829			2,250
Deferred rent		5,705			5,068			2,266
Net operating loss and tax credits		26,040			25,610			18,497
Other noncurrent assets		—			537			1,121
Total gross deferred tax assets	$	40,525		$	43,001		$	34,302
Deferred tax liabilities:
Inventory costs	$	5,518		$	9,468		$	8,199
Prepaid supplies		1,582			2,392			2,506
Property and equipment		9,215			4,033			7,616
Total gross deferred tax liabilities		16,315			15,893			18,321
Valuation allowance		(23,688	)		(27,150	)		(15,992	)
Net deferred tax asset/(liability)	$	522		$	(42	)	$	(11	)

During fiscal 2013, we established a valuation allowance related to deferred tax assets. In assessing whether a deferred tax asset would be realized, we considered whether it is more likely than not that some portion or all of the deferred tax assets would not be realized. We considered the reversal of existing taxable temporary differences, projected future taxable income, tax planning strategies and loss carry back potential in making this assessment. In evaluating the likelihood that sufficient future earnings would be available in the near future to realize the deferred tax assets, we considered our cumulative losses over three years including the then-current year. Based on the foregoing, we concluded that a valuation allowance was necessary, and based on our results since fiscal 2013, we have continued to conclude that a full valuation allowance is necessary. In fiscal 2018, as a result of the TCJA enactment, the federal component of deferred taxes was remeasured at 21%, the tax rate at which they are expected to turn in future years. The valuation allowance offsetting these deferred taxes was reduced accordingly. The valuation allowance previously recorded against our AMT credits of $571,000 was removed to reflect that they will be refunded pursuant to the TCJA beginning in our fiscal year 2020. Further, federal deferred tax liabilities related to the amortization of trademarks for tax purposes, which are not considered for purposes of the valuation allowance computation, were reduced by $19,000 during the year, resulting in a tax benefit of that amount. In fiscal 2018, the deferred tax asset valuation allowance decreased $3.5 million. At the end of fiscal 2018, net deferred tax assets totaled $24.2 million, with an offsetting valuation allowance of $23.7 million.

We have federal net operating loss carryforwards of $89.3 million. These losses can only be carried forward and utilized to offset future taxable income, but will expire in fiscal years 2033 through 2038 if not utilized before then. Additionally, we have tax effected state net operating loss carryforwards of $4.8 million, which will expire throughout the years 2018 through 2038, if not utilized before then.

Accounting for Uncertainty in Income Taxes. The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years before fiscal 2014. The Internal Revenue Service has concluded an examination of the Company for years ending on or before June 30, 2010.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

Balance at June 30, 2015	$	147
Additions for tax positions of prior years		—
Reductions for lapse of statute of limitations		—
Balance at June 30, 2016	$	147
Additions for tax positions of prior years		—
Reductions for lapse of statute of limitations		—
Balance at June 30, 2017	$	147
Additions for tax positions of prior years		—
Reductions for lapse of statute of limitations		—
Balance at June 30, 2018	$	147

The balance of taxes, interest, and penalties at June 30, 2018, that if recognized, would affect the effective tax rate is $294,000. We classify and recognize interest and penalties accrued related to unrecognized tax benefits in income tax expense. During the fiscal years ended June 30, 2018, 2017 and 2016, we recognized $7,000, $9,000, and $16,000 in interest, respectively. No interest or penalties were paid in the tax years ended June 30, 2018, 2017 and 2016.

We do not anticipate that the total amount of unrecognized tax benefits will significantly increase or decrease the effective tax rate within 12 months of June 30, 2018.

Share-Based Incentive Plans

12 Months Ended

Jun. 30, 2018

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Share-Based Incentive Plans

(6) SHARE‑BASED INCENTIVE PLANS

Stock Option Awards. We have established the Tuesday Morning Corporation 2008 Long-Term Equity Incentive Plan (the “2008 Plan”) and the Tuesday Morning Corporation 2014 Long-Term Incentive Plan, as amended (the “2014 Plan”), which allow for the granting of stock options to directors, officers and key employees of the Company, and certain other key individuals who perform services for us and our subsidiaries. Equity awards may no longer be granted under the 2008 Plan, but equity awards granted under the 2008 Plan are still outstanding.

On September 16, 2014, our Board of Directors adopted the Tuesday Morning Corporation 2014 Long-Term Incentive Plan (the “2014 Plan”), and the 2014 Plan was approved by our stockholders at the 2014 annual meeting of stockholders on November 12, 2014. The 2014 Plan became effective on September 16, 2014, and the maximum number of shares reserved for issuance under the 2014 Plan, as amended, is 6.1 million shares plus any awards under the 2008 Plan (i) that were outstanding on September 16, 2014, and, on or after September 16, 2014, are forfeited, expired or are cancelled, and (ii) any shares subject to such awards that, on or after September 16, 2014 are used to satisfy the exercise price or tax withholding obligations with respect to such awards. Our Board of Directors also approved the termination of the Company’s ability to grant new awards under the 2008 Plan, effective upon the date of stockholder approval of the 2014 Plan, and no new awards will be made under the 2008 Plan. On September 22, 2016, our Board of Directors adopted amendments to the 2014 Plan, which were approved at the 2016 Annual Meeting of Stockholders, to increase the number of shares of our common stock available for issuance under the 2014 Plan and to make additional amendments to the 2014 Plan to, among other things, remove liberal share recycling, reduce the number of shares exempt from minimum vesting, and eliminate discretion to accelerate vesting upon a change in control. On August 22, 2017, our Board of Directors adopted a Second Amendment to the 2014 Plan that modified the minimum vesting provisions as they apply to non-employee directors.

The 2014 Plan provides for the granting of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, dividend equivalent rights, and other awards which may be granted singly, in combination, or in tandem, and which may be paid in cash, shares of common stock, or a combination of cash and shares of common stock. Under the 2014 Plan, stock options may not vest earlier than one year after the date of grant. “Full Value Awards” (i.e., restricted stock or restricted stock units) that constitute performance awards must vest no earlier than one year after the date of grant and Full Value Awards that constituted “Tenure Awards” (i.e., awards that vest upon passage of time) may not vest earlier than over the three-year period commencing on the date of grant (other than awards to non-employee directors which may not vest earlier than one year from the date of grant). The Compensation Committee of our Board of Directors may grant only stock options or Full Value Awards with vesting conditions that are more favorable than the foregoing restrictions with respect to up to 5% of the shares of common stock authorized under the 2014 Plan (referred to in the 2014 Plan as “exempt shares”).

On November 16, 2016, our stockholders approved amendments to the 2014 Plan to increase the number of shares of the Company’s common stock available for issuance under the 2014 Plan by 2,500,000 shares and to make additional amendments to the 2014 Plan, including (i) reducing the percentage of shares exempt from the minimum vesting requirements under the 2014 Plan, (ii) adding a clawback policy, (iii) generally eliminating the discretion of the Board of Directors to accelerate the vesting of outstanding and unvested awards upon a change of control and (iv) providing that certain shares surrendered in payment of the exercise price of awards or withheld for tax withholding would count against the shares available under the 2014 Plan.

Stock options were awarded with a strike price at a fair market value equal to the closing price of our common stock on the date of the grant under the 2008 Plan and the 2014 Plan.

Options granted under the 2008 Plan and the 2014 Plan typically vest over periods of one to four years and expire ten years from the date of grant. Options granted under the 2008 Plan and the 2014 Plan may have certain performance requirements in addition to service terms. If the performance conditions are not satisfied, the options are forfeited. The exercise prices of stock options outstanding on June 30, 2018, range between $1.24 per share and $20.91 per share. The 2008 Plan terminated as to new awards as of September 16, 2014. There were 3.1 million shares available for grant under the 2014 Plan at June 30, 2018.

Following is a summary of transactions relating to the 2008 Plan and 2014 Plan options for the fiscal years ended June 30, 2018, 2017, and 2016 (share amounts and aggregate intrinsic value in thousands):

	Number of Shares			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Options Outstanding at June 30, 2015		1,838		$	13.37		8.25	$	1,384
Granted during year		2,500			6.48
Exercised during the year		(5	)		1.24
Forfeited or expired during year		(1,121	)		11.81
Options Outstanding at June 30, 2016		3,212			8.57		7.61		2,111
Granted during year		1,564			6.11
Exercised during the year		(6	)		1.24
Forfeited or expired during year		(1,254	)		9.88
Options Outstanding at June 30, 2017		3,516			7.02		7.86		2
Granted during year		621			2.46
Exercised during the year		(3	)		1.24
Forfeited or expired during year		(177	)		7.21
Options Outstanding at June 30, 2018		3,957			6.30		7.21		475
Exercisable at June 30, 2018		1,478		$	7.93		5.49	$	22

The weighted average grant date fair value of stock options granted during the fiscal years ended June 30, 2018, 2017, and 2016, was $2.46 per share, $2.55 per share, and $2.75 per share, respectively. The intrinsic value of vested unexercised options at June 30, 2018 is $22,000.

There were options to purchase 3,000, 6,208 and 4,667 shares of our common stock, which were exercised during the fiscal years ended June 30, 2018, 2017 and 2016, respectively. The aggregate intrinsic value of stock options exercised was $3,700, $20,100, and $27,000 during the fiscal years ended June 30, 2018, 2017, and 2016, respectively. At June 30, 2018, we had $6.0 million of total unrecognized share‑based compensation expense related to stock options that is expected to be recognized over a weighted average period of 1.9 years.

The following table summarizes information about stock options outstanding at June 30, 2018:

	Options Outstanding					Options Exercisable
Range of Exercise Prices	Number Outstanding		Weighted Average Remaining Contractual Life (Years)	Weighted Average Exercise Price Per Share		Number Exercisable		Weighted Average Exercise Price Per Share
$1.24 - $2.45		632,358	9.16	$	2.30		22,928	$	2.07
$3.12 - $5.59		238,098	7.28	4.47			104,283	4.81
$5.64 - $5.64		690,414	7.59	5.64			197,454	5.64
$5.88 - $5.89		305,508	7.35	5.89			10,000	5.88
$5.95 - $5.95		462,825	7.03	5.95			462,825	5.95
$6.29 - $6.58		25,948	7.44	6.54			14,641	6.51
$6.71 - $6.71		913,950	8.17	6.71			104,302	6.71
$7.90 - $8.55		397,013	4.01	8.08			290,711	8.14
$10.46 - $19.36		283,597	3.40	15.18			265,580	14.96
$20.91 - $20.91		7,532	6.37	20.91			5,649	20.91
		3,957,243	7.21	$	6.30		1,478,373	$	7.93

Restricted Stock Awards—The 2008 Plan and the 2014 Plan authorize the grant of restricted stock awards to directors, officers, key employees and certain other key individuals who perform services for us and our subsidiaries. Equity awards may no longer be granted under the 2008 Plan, but restricted stock awards granted under the 2008 Plan are still outstanding. Restricted stock awards are not transferable, but bear certain rights of common stock ownership including voting and dividend rights. Shares are valued at the fair market value of our common stock at the date of award. Shares may be subject to certain performance requirements. If the performance requirements are not met, the restricted shares are forfeited. Under the 2008 Plan and the 2014 Plan, as of June 30, 2018, there were 1,433,269 shares of restricted stock outstanding with award vesting periods, both performance-based and service-based, of one to four years and a weighted average grant date fair value of $3.95 per share.

The following table summarizes information about restricted stock awards outstanding for the fiscal years ended June 30, 2018, 2017, and 2016 (share amounts in thousands):

	Number of Shares			Weighted- Average Fair Value at Date of Grant
Outstanding at June 30, 2015		432		$	16.95
Granted during year		869			6.98
Vested during year		(175	)		12.52
Forfeited during year		(364	)		12.65
Outstanding at June 30, 2016		762		$	8.65
Granted during year		941			5.80
Vested during year		(230	)		8.38
Forfeited during year		(383	)		7.73
Outstanding at June 30, 2017		1,090		$	6.57
Granted during year		981			2.44
Vested during year		(398	)		6.81
Forfeited during year		(240	)		4.94
Outstanding at June 30, 2018		1,433		$	3.95

Performance-Based Restricted Stock Awards and Performance-Based Stock Option Awards. As of June 30, 2018, there were 1,643,918 unvested performance-based restricted stock awards and performance-based stock options outstanding under the 2014 Plan, which are included in the respective stock option and restricted stock tables above.

Share-based compensation costs: We recognized share‑based compensation costs as follows (in thousands):

	Fiscal Years Ended June 30,
	2018			2017			2016
Amortization of share-based compensation during the period	$	3,349		$	4,114		$	3,403
Amounts capitalized in inventory		(1,280	)		(1,497	)		(1,724	)
Amount recognized and charged to cost of sales		1,364			1,567			1,436
Amounts charged against income for the period before tax	$	3,433		$	4,184		$	3,115

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2018	Jun. 30, 2017
Stockholders’ equity:
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	47,648,958	46,904,295
Common stock, shares outstanding	45,865,297	45,120,634
Treasury stock, shares	1,783,661	1,783,661

Debt	12 Months Ended
Debt	Jun. 30, 2018
Debt Disclosure [Abstract]
Debt	(3) DEBT On August 18, 2015, we entered into a new credit agreement providing for an asset-based, five-year senior secured revolving credit facility in the amount of up to $180.0 million which matures on August 18, 2020 (the “Revolving Credit Facility”), and which replaced our previous revolving credit facility. The availability of funds under the Revolving Credit Facility is limited to the lesser of a calculated borrowing base and the lenders’ aggregate commitments under the Revolving Credit Facility. Our indebtedness under the Revolving Credit Facility is secured by a lien on substantially all of our assets. The Revolving Credit Facility contains certain restrictive covenants, which affect, among others, our ability to incur liens or incur additional indebtedness, change the nature of our business, sell assets or merge or consolidate with any other entity, or make investments or acquisitions unless they meet certain requirements. The Revolving Credit Facility requires that we satisfy a fixed charge coverage ratio at any time that our availability is less than the greater of 10% of our calculated borrowing base or $12.5 million. Our Revolving Credit Facility may, in some instances, limit our ability to pay cash dividends and repurchase our common stock. In order for the borrower under the Revolving Credit Facility, our subsidiary, to make a restricted payment to us for the payment of a dividend or a repurchase of shares, we must, among other things, maintain availability of 20% of the lesser of our calculated borrowing base or our lenders’ aggregate commitments under the Revolving Credit Facility on a pro forma basis for a specified period prior to and immediately following the restricted payment. As of June 30, 2018, we were in compliance with all of the Revolving Credit Facility covenants. At June 30, 2018, we had $38.5 million outstanding under the Revolving Credit Facility, $9.5 million of outstanding letters of credit and availability of $60.5 million. Letters of credit under the Revolving Credit Facility are primarily for self-insurance purposes. We incur commitment fees of up to 0.25% on the unused portion of the Revolving Credit Facility, payable quarterly. Any borrowing under the Revolving Credit Facility incurs interest at LIBOR or the prime rate, plus an applicable margin, at our election (except with respect to swing loans, which incur interest solely at the prime rate plus the applicable margin), subject to a floor of the one month LIBOR plus an applicable margin in the case of loans based on the prime rate. Interest expense for fiscal year 2018 from the Revolving Credit Facility of $2.1 million was comprised of interest of $1.3 million, commitment fees of $0.4 million, and the amortization of financing fees of $0.4 million. Interest expense from the Revolving Credit Facility of $1.5 million for fiscal year 2017 was comprised of interest of $0.7 million, commitment fees of $0.4 million, and amortization of financing fees of $0.4 million. The fair value of the Company's debt approximated its carrying amount as of June 30, 2018. See Note 11 for additional discussion on dividend restrictions under the Revolving Credit Facility.