These profits are realized when the related inventory is sold. Lease expense for operating leases consists of both fixed and variable components. As a result of the sale, we recognized a pre-tax gain of $11.5 million in fiscal 2020. Selected Financial Data 27 Item 7. Many of these factors are beyond our ability to control or predict. &# Our employees were trained on these protocols prior to or upon returning to work. AND SUBSIDIARIES Impact on the Supply Chain. COVID-19 related issues will continue to introduce uncertainty into many markets. Most upholstery frames are hand-assembled and stitching is guided by hand. We selectively outsource the remaining 25% of our products, primarily from Asia. We believe we maintain good relationships with our suppliers. &# Our vertically integrated approach to business is one of our key competitive advantages. Our wholesale segment net sales accounted for the remaining 19.0%. &# We utilize independent carriers to ship our products. &# Our principal products are consumer goods that may be considered postponable purchases. We have seen negative effects on certain of these measures due to the COVID-19 pandemic. xa0; The residential home furnishings industry is highly competitive and fragmented. We may also fail to successfully select and secure design center locations. &# The other 25% is sourced primarily from Southeast Asia and China. This competition could materially adversely affect our future financial performance. &# xa0; We use and generate hazardous substances in our manufacturing and retail operations. This will effectively end the usefulness of LIBOR and end its publication. The ticker symbol change became effective on August 16, 2021. &# There is no expiration date on the repurchase authorization. &# We refreshed many of our product lines over the past several years. New offerings within home office, bedroom, living and dining room were launched. In addition, our outdoor product category offerings were enhanced during fiscal 2021. Our vertical integration is a competitive advantage for us. xa0; Gross margin was 57.4% compared with 54.8% a year ago. Compared to two years ago, our headcount is down 548 associates. xa0; 35 ETHAN ALLEN INTERIORS INC. xa0; Focus on Shareholder Returns. &# Over the past year, the following actions were taken pertaining to dividends. &# This included the special dividend paid in May 2021 totaling $19.0 million. We enter into operating leases in the normal course of business. Most lease arrangements provide us with the option to renew the leases at defined terms. xa0; Goodwill and Indefinite-Lived Intangible Assets. xa0; Similar to goodwill, we may elect to perform a qualitative assessment. These laws can be complicated and are difficult to apply to any business, including ours. Interest rate risk exists primarily through our borrowing activities. Preservation of principal is the primary goal of our cash and investment policy. We believe that our audits provide a reasonable basis for our opinions. &# We invest excess cash in money market accounts and short-term commercial paper. At June 30, 2021 and 2020, the allowance for doubtful accounts was immaterial. &# As of June 30, 2021 and 2020, we did not have any assets held for sale. &# We record these acquisitions using the acquisition method of accounting. There were no acquisitions during fiscal 2021. Forfeitures are estimated based primarily on historical experience. xa0; Assets
