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Note 17 - Restructuring
9 Months Ended
Mar. 31, 2016
Notes to Financial Statements  
Restructuring and Related Activities Disclosure [Text Block]
17)      Restructuring
 
The Company has undertaken cost reduction and facility consolidation initiatives that have resulted in severance, restructuring, and related charges. A summary of charges by initiative is as follows (in thousands):
 
 
 
Three Months Ended
 
 
Nine Months Ended
 
 
 
March 31, 2016
 
 
March 31, 2016
 
Fiscal 2016
 
Involuntary Employee Severance and Benefit Costs
 
 
Other
 
 
Total
 
 
Involuntary Employee Severance and Benefit Costs
 
 
Other
 
 
Total
 
Restructuring initiatives
  $ 236     $ 89     $ 325     $ 966     $ 256     $ 1,222  
Prior year initiatives
    -       66       66       59       2,106       2,165  
    $ 236     $ 155     $ 391     $ 1,025     $ 2,362     $ 3,387  
 
 
 
Three Months Ended
 
 
Nine Months Ended
 
 
 
March 31, 2015
 
 
March 31, 2015
 
Fiscal 2015
 
Involuntary Employee Severance and Benefit Costs
 
 
Other
 
 
Total
 
 
Involuntary Employee Severance and Benefit Costs
 
 
Other
 
 
Total
 
Restructuring initiatives
  $ 243     $ 155     $ 398     $ 576     $ 953     $ 1,529  
Prior year initiatives
    -       -       -       125       700       825  
    $ 243     $ 155     $ 398     $ 701     $ 1,653     $ 2,354  
 
2016 Restructuring Initiatives
 
The Company continues to focus on our efforts to reduce cost and improve productivity across our businesses, particularly through headcount reductions, facility closures, and consolidations. The Company’s 2016 initiatives to date include the movement of manufacturing from a legacy Canadian facility into our newly acquired Northlake facility and a reduction of personnel in those locations impacted by the slowdown in the oil and gas market.
 
 
 
Involuntary Employee Severance and Benefit Costs
 
 
Other
 
 
Total
 
Restructuring liabilities at July 1, 2015
  $ -     $ -     $ -  
Additions and adjustments
    968       344       1,312  
Payments
    (792 )     (344 )     (1,136 )
Restructuring liabilities at March 31, 2016
  $ 176     $ -     $ 176  
 
Prior Year Initiatives
 
The Company previously announced the closure of our Food Service Equipment U.K. facility and entered into a distribution agreement with a U.K. based partner in order to reduce channel costs and enhance profitability, expand and strengthen our U.K. Food Service Equipment group’s presence for all of our brands.
 
 
Activity in the reserve related to the prior year restructuring initiatives is as follows (in thousands):
 
 
 
Involuntary Employee Severance and Benefit Costs
 
 
Other
 
 
Total
 
Restructuring liabilities at July 1, 2015
  $ 82     $ 301     $ 383  
Additions and adjustments
    60       267       327  
Payments
    (137 )     (377 )     (514 )
Restructuring liabilities at March 31, 2016
  $ 5     $ 191     $ 196  
 
The Company’s total restructuring expenses by segment are as follows (in thousands):
 
 
 
Three Months Ended
 
 
Nine Months Ended
 
 
 
March 31, 2016
 
 
March 31, 2016
 
 
 
Involuntary Employee Severance and Benefit Costs
 
 
Other
 
 
Total
 
 
Involuntary Employee Severance and Benefit Costs
 
 
Other
 
 
Total
 
Food Service Equipment Group
  $ 77     $ 93     $ 170     $ 99     $ 2,197     $ 2,296  
Engraving Group
    -       -       -       35       -       35  
Engineering Technologies Group
    -       -       -       160       -       160  
Electronics Products Group
    159       56       215       603       159       762  
Corporate
    -       6       6       128       6       134  
    $ 236     $ 155     $ 391     $ 1,025     $ 2,362     $ 3,387  
 
 
 
 
Three Months Ended
 
 
Nine
Months Ended
 
 
 
March
31, 201
5
 
 
March
31, 201
5
 
 
 
Involuntary Employee Severance and Benefit Costs
 
 
Other
 
 
Total
 
 
Involuntary Employee Severance and Benefit Costs
 
 
Other
 
 
Total
 
Food Service Equipment Group
  $ 52     $ 134     $ 186     $ 219     $ 1,431     $ 1,650  
Engraving Group
    18       (3 )     15       79       -       79  
Engineering Technologies Group
    55       -       55       55       -       55  
Electronics Products Group
    118       24       142       348       222       570  
    $ 243     $ 155     $ 398     $ 701     $ 1,653     $ 2,354  
 
We incurred severance and other costs of $0.4 million and $3.4 million associated with these activities during the three and nine months ended March 31, 2016, respectively, which includes $0.5 million and $1.7 million, respectively, of non-cash expenses to reduce the net book value of a closed facility to its net realizable value. Restructuring expense is expected to be $3.7 million for fiscal year 2016, of which $3.4 million was incurred for the nine months ended March 31, 2016.