Note 17 - Restructuring

3 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

17)      Restructuring

The Company has undertaken a number of initiatives that have resulted in severance, restructuring, and related charges.

2023 Restructuring Initiatives

The Company continues to focus its efforts to reduce cost and improve productivity across its businesses, particularly through headcount reductions, facility closures, and consolidations. Restructuring expenses primarily related to headcount reductions and other cost saving initiatives. The Company expects the 2023 restructuring activities to be completed by fiscal year 2024. 

Prior Year Restructuring Initiatives 

Restructuring expenses primarily related to headcount reductions and facility rationalization within our Specialty Solutions segment. The Company also incurred restructuring expenses related to third party assistance with analysis and implementation of these activities. The Company expects the prior year restructuring activities to be completed by fiscal year 2023.

A summary of charges by initiative is as follows (in thousands):

	Three Months Ended
	September 30, 2022
Fiscal Year 2023	Involuntary Employee Severance and Benefit Costs		Other		Total
Current year initiatives	$	94	$	43	$	137
Prior year initiatives		251		194		445
	$	345	$	237	$	582

	Three Months Ended
	September 30, 2021
Fiscal Year 2022	Involuntary Employee Severance and Benefit Costs		Other		Total
Current year initiatives	$	375	$	65	$	440
Prior year initiatives		-		-		-
	$	375	$	65	$	440

Activity in the reserve related to the initiatives is as follows (in thousands):

Current Year Initiatives	Involuntary Employee Severance and Benefit Costs			Other			Total
Restructuring liabilities at June 30, 2022	$	-		$	-		$	-
Additions and adjustments		94			43			137
Payments		(94	)		(43	)		(137	)
Restructuring liabilities at September 30, 2022	$	-		$	-		$	-

Prior Year Initiatives	Involuntary Employee Severance and Benefit Costs			Other			Total
Restructuring liabilities at June 30, 2022	$	1,045		$	695		$	1,740
Additions and adjustments		251			194			445
Payments		(1,042	)		(469	)		(1,511	)
Restructuring liabilities at September 30, 2022	$	254		$	420		$	674

Prior Year Initiatives	Involuntary Employee Severance and Benefit Costs			Other			Total
Restructuring liabilities at June 30, 2021	$	39		$	10		$	49
Additions and adjustments		375			65			440
Payments		(414	)		(75	)		(489	)
Restructuring liabilities at September 30, 2021	$	-		$	-		$	-

The Company’s total restructuring expenses by segment are as follows (in thousands):

	Three Months Ended
	September 30, 2022
	Involuntary Employee Severance and Benefit Costs		Other		Total
Electronics	$	131	$	123	$	254
Engraving		214		114		328
	$	345	$	237	$	582

	Three Months Ended
	September 30, 2021
	Involuntary Employee Severance and Benefit Costs		Other		Total
Engraving	$	284	$	65	$	349
Engineering Technologies		91		-		91
	$	375	$	65	$	440

Restructuring expense is expected to be approximately $1.0 million for the remainder of fiscal year 2023.