10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended August 26, 2018

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 1-4415

PARK ELECTROCHEMICAL CORP.

(Exact Name of Registrant as Specified in Its Charter)

New York	11-1734643
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

48 South Service Road, Melville, N.Y.	11747
(Address of Principal Executive Offices)	(Zip Code)

                  (631) 465-3600                    

(Registrant's Telephone Number, Including Area Code)

                  Not Applicable                    

(Former Name, Former Address and Former Fiscal Year,

if Changed Since Last Report)

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 [X] No [  ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [X] No [  ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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 [  ]   Accelerated Filer [X]   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 in Rule 12b-2 of the Exchange Act). Yes [  ] No [X]

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: 20,277,108 as of October 4, 2018.

PARK ELECTROCHEMICAL CORP. AND SUBSIDIARIES

TABLE OF CONTENTS

		Page Number
PART I.	FINANCIAL INFORMATION:
Item 1.	Financial Statements
	Condensed Consolidated Balance Sheets August 26, 2018 (Unaudited) and February 25, 2018	3
	Consolidated Statements of Operations 13 weeks and 26 weeks ended August 26, 2018 and August 27, 2017 (Unaudited)	4
	Consolidated Statements of Comprehensive Earnings 13 weeks and 26 weeks ended August 26, 2018 and August 27, 2017 (Unaudited)	5
	Condensed Consolidated Statements of Cash Flows 26 weeks ended August 26, 2018 and August 27, 2017 (Unaudited)	6
	Notes to Consolidated Financial Statements (Unaudited)	7
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	18
	Factors That May Affect Future Results	25
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	25
Item 4.	Controls and Procedures	26
PART II.	OTHER INFORMATION:
Item 1.	Legal Proceedings	27
Item 1A.	Risk Factors	27
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	27
Item 3.	Defaults Upon Senior Securities	27
Item 4.	Mine Safety Disclosures	27
Item 5.	Other Information	28
Item 6.	Exhibits	28
SIGNATURES		29
EXHIBIT INDEX		30

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PART I. FINANCIAL INFORMATION

Item I.     Financial Statements.

PARK ELECTROCHEMICAL CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands)

	August 26, 2018 (unaudited)			February 25, 2018*
ASSETS
Current assets:
Cash and cash equivalents	$	20,854		$	18,254
Marketable securities (Note 3)		87,456			89,977
Accounts receivable, less allowance for doubtful accounts of $32 and $32, respectively		5,878			6,961
Inventories (Note 4)		3,994			3,955
Prepaid expenses and other current assets		1,578			1,473
Current Assets - Discontinued Operations (Note 10)		22,624			20,648
Total current assets		142,384			141,268
Property, plant and equipment, net		9,111			9,805
Goodwill and other intangible assets		9,818			9,818
Other assets		377			370
Non-current Assets - Discontinued Operations (Note 10)		11,406			11,799
Total assets	$	173,096		$	173,060
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable		1,091			1,825
Accrued liabilities		1,108			1,022
Income taxes payable		1,467			1,456
Current Liabilities - Discontinued Operations (Note 10)		8,170			7,924
Total current liabilities		11,836			12,227
Non-current income taxes payable (Note 9)		18,594			20,364
Deferred income taxes (Note 9)		3,309			4,047
Other liabilities		314			314
Non-current Liabilities - Discontinued Operations (Note 10)		846			847
Total liabilities		34,899			37,799
Commitments and contingencies (Note 11)
Shareholders' equity (Note 8):
Common stock		2,096			2,096
Additional paid-in capital		169,304			169,011
Accumulated deficit		(19,278	)		(21,099	)
Accumulated other comprehensive earnings		222			131
		152,344			150,139
Less treasury stock, at cost		(14,147	)		(14,878	)
Total shareholders' equity		138,197			135,261
Total liabilities and shareholders' equity	$	173,096		$	173,060

*The balance sheet at February 25, 2018 has been derived from the audited financial statements at that date.

See Notes to Consolidated Financial Statements (Unaudited).

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PARK ELECTROCHEMICAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except per share amounts)

	13 Weeks Ended (Unaudited)						26 Weeks Ended (Unaudited)
	August 26,			August 27,			August 26,			August 27,
	2018			2017			2018			2017
Net sales	$	11,211		$	11,355		$	21,604		$	20,081
Cost of sales		8,066			8,147			15,607			14,576
Gross profit		3,145			3,208			5,997			5,505
Selling, general and administrative expenses		2,116			2,240			4,217			4,680
Earnings from continuing operations		1,029			968			1,780			825
Interest expense (Note 5)		-			603			-			1,113
Interest and other income		357			751			697			1,500
Earnings from continuing operations before income taxes		1,386			1,116			2,477			1,212
Income tax (benefit) provision (Note 9)		(438	)		257			(163	)		281
Net earnings from continuing operations		1,824			859			2,640			931
Earnings (Loss) from discontinued operations, net of tax (Note 10)		876			(339	)		3,228			983
Net Earnings	$	2,700		$	520		$	5,868		$	1,914
Earnings per share (Note 7):
Basic:
Continuing Operations	$	0.09		$	0.04		$	0.13		$	0.04
Discontinued Operations		0.04			(0.01	)		0.16			0.05
Basic earnings per share	$	0.13		$	0.03		$	0.29		$	0.09
Basic weighted average shares		20,253			20,236			20,248			20,236
Diluted:
Continuing Operations	$	0.09		$	0.04		$	0.13		$	0.04
Discontinued Operations		0.04			(0.01	)		0.16			0.05
Diluted earnings per share	$	0.13		$	0.03		$	0.29		$	0.09
Diluted weighted average shares		20,382			20,250			20,339			20,247
Dividends declared per share	$	0.10		$	0.10		$	0.20		$	0.20

See Notes to Consolidated Financial Statements (Unaudited).

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PARK ELECTROCHEMICAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS

(Amounts in thousands)

	13 Weeks Ended (Unaudited)						26 Weeks Ended (Unaudited)
	August 26,			August 27,			August 26,			August 27,
	2018			2017			2018			2017
Net earnings	$	2,700		$	520		$	5,868		$	1,914
Other comprehensive earnings (loss), net of tax:
Foreign currency translation		18			72			(1	)		41
Unrealized gains on marketable securities:
Unrealized holding gains arising during the period		-			21			-			24
Less: reclassification adjustment for gains included in net earnings		-			(27	)		-			(96	)
Unrealized losses on marketable securities:
Unrealized holding losses arising during the period		(1	)		-			(18	)		(117	)
Less: reclassification adjustment for losses included in net earnings		109			22			110			46
Other comprehensive earnings (loss)		126			88			91			(102	)
Total comprehensive earnings	$	2,826		$	608		$	5,959		$	1,812

See Notes to Consolidated Financial Statements (Unaudited).

5

PARK ELECTROCHEMICAL CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands) 

	26 Weeks Ended (Unaudited)
	August 26,			August 27,
	2018			2017
Cash flows from operating activities:
Net earnings from continuing operations	$	2,640		$	931
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		865			905
Stock-based compensation		400			475
Deferred income taxes		(738	)		(304	)
Amortization of bond premium		24			125
Changes in operating assets and liabilities		(1,554	)		(1,113	)
Net cash provided by operating activities - continuing operations		1,637			1,019
Net cash provided by operating activities - discontinued operations		1,845			483
Net cash provided by operating activities		3,482			1,502
Cash flows from investing activities:
Purchase of property, plant and equipment		(170	)		(365	)
Purchases of marketable securities		(7,411	)		(141,881	)
Proceeds from sales and maturities of marketable securities		10,080			74,205
Net cash provided by (used in) investing activities - continuing operations		2,499			(68,041	)
Net cash used in investing activities - discontinued operations		(23	)		(135	)
Net cash provided by (used in) investing activities		2,476			(68,176	)
Cash flows from financing activities:
Dividends paid		(4,048	)		(4,047	)
Proceeds from exercise of stock options		624			39
Payments of long-term debt		-			(1,750	)
Net cash used in financing activities - continuing operations		(3,424	)		(5,758	)
Net cash used in financing activities - discontinued operations		-			-
Net cash used in financing activities		(3,424	)		(5,758	)
Increase (decrease) in cash and cash equivalents before effect of exchange rate changes - continuing operations		712			(72,780	)
Increase in cash and cash equivalents before effect of exchange rate changes - discontinued operations		1,822			348
Increase (decrease) in cash and cash equivalents before effect of exchange rate changes		2,534			(72,432	)
Effect of exchange rate changes on cash and cash equivalents - continuing operations		(152	)		29
Effect of exchange rate changes on cash and cash equivalents - discontinued operations		218			156
Effect of exchange rate changes on cash and cash equivalents		66			185
Increase (decrease) in cash and cash equivalents		2,600			(72,247	)
Cash and cash equivalents, beginning of period		18,254			102,438
Cash and cash equivalents, end of period	$	20,854		$	30,191
Supplemental cash flow information:
Cash paid during the period for income taxes, net of refunds	$	2,332		$	1,534
Cash paid during the period for interest	$	-		$	1,007

See Notes to Consolidated Financial Statements (Unaudited).

6

PARK ELECTROCHEMICAL CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(Amounts in thousands, except share (unless otherwise stated), per share and option amounts)

1.  CONSOLIDATED FINANCIAL STATEMENTS

The Condensed Consolidated Balance Sheet as of August 26, 2018, the Consolidated Statements of Operations and the Consolidated Statements of Comprehensive Earnings for the 13 weeks and 26 weeks ended August 26, 2018 and August 27, 2017 and the Condensed Consolidated Statements of Cash Flows for the 26 weeks then ended have been prepared by Park Electrochemical Corp. (the “Company”), without audit. In the opinion of management, these unaudited consolidated financial statements contain all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position at August 26, 2018 and the results of operations and cash flows for all periods presented. The Consolidated Statements of Operations are not necessarily indicative of the results to be expected for the full fiscal year or any subsequent interim period.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 25, 2018. There have been no significant changes to such accounting policies during the 26 weeks ended August 26, 2018.

On July 25, 2018, the Company entered into a definitive agreement to sell its Electronics Business for $145,000 in cash. The Company expects this transaction to be completed in the fourth quarter of the 2019 fiscal year.

The Company has classified the operating results of its Electronics Business, together with certain costs related to the transaction, as discontinued operations, net of tax, in the Consolidated Statement of Operations, in accordance with Accounting Standards Codification (“ASC”) 205-20 Discontinued Operations.

2.  FAIR VALUE MEASUREMENTS

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date.

Fair value measurements are broken down into three levels based on the reliability of inputs as follows:

Level 1 inputs are quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates and yield curves observable at commonly quoted intervals or current market), and contractual prices for the underlying financial instrument, as well as other relevant economic measures.

Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.

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The fair value of the Company’s cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their carrying value due to their short-term nature. Due to the variable interest rates’ periodically adjusting with the current LIBOR, the carrying value of outstanding borrowings under the Company’s long-term debt approximates its fair value. (See Note 5). Certain assets and liabilities of the Company are required to be recorded at fair value on either a recurring or non-recurring basis. On a recurring basis, the Company records its marketable securities at fair value using Level 1 or Level 2 inputs. (See Note 3).

The Company’s non-financial assets measured at fair value on a non-recurring basis include goodwill and any long-lived assets written down to fair value. To measure the fair value of such assets, the Company uses Level 3 inputs consisting of techniques including an income approach and a market approach. The income approach is based on a discounted cash flow analysis and calculates the fair value by estimating the after-tax cash flows attributable to a reporting unit and then discounting the after-tax cash flows to a present value using a risk-adjusted discount rate. Assumptions used in the discounted cash flow analysis require the exercise of significant judgment, including judgment about appropriate discount rates, terminal values, growth rates and the amount and timing of expected future cash flows. There were no transfers between levels within the fair value hierarchy during the 26 weeks ended August 26, 2018 and August 27, 2017. With respect to goodwill, the Company first assesses qualitative factors to determine whether it is more likely than not that fair value is less than carrying value. If, based on that assessment, the Company believes it is more likely than not that fair value is less than carrying value, a goodwill impairment test is performed. There have been no changes in events or circumstances which required impairment charges to be recorded during the 13 or 26 weeks ended August 26, 2018.

3.  MARKETABLE SECURITIES

All marketable securities are classified as available-for-sale and are carried at fair value, with the unrealized gains and losses, net of tax, included in comprehensive earnings. Realized gains and losses, amortization of premiums and discounts, and interest and dividend income are included in interest and other income in the Consolidated Statements of Operations. The costs of securities sold are based on the specific identification method.

The following is a summary of available-for-sale securities:

	August 26, 2018
	Total		Level 1		Level 2		Level 3
U.S. Treasury and other government securities	$	76,442	$	76,442	$	-	$	-
U.S. corporate debt securities		11,014		11,014		-		-
Total marketable securities	$	87,456	$	87,456	$	-	$	-

	February 25, 2018
	Total		Level 1		Level 2		Level 3
U.S. Treasury and other government securities	$	78,361	$	78,361	$	-	$	-
U.S. corporate debt securities		11,616		11,616		-		-
Total marketable securities	$	89,977	$	89,977	$	-	$	-

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The following table shows the amortized cost basis of, and gross unrealized gains and losses on, the Company’s available-for-sale securities:

	Amortized Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses
August 26, 2018:
U.S. Treasury and other government securities	$	78,086	$	-	$	1,644
U.S. corporate debt securities		11,042		-		28
Total marketable securities	$	89,128	$	-	$	1,672
February 25, 2018:
U.S. Treasury and other government securities	$	80,116	$	-	$	1,755
U.S. corporate debt securities		11,675		-		59
Total marketable securities	$	91,791	$	-	$	1,814

The estimated fair values of such securities at August 26, 2018 by contractual maturity are shown below:

Due in one year or less	$	30,833
Due after one year through five years		56,623
	$	87,456

4.  INVENTORIES

Inventories from continuing operations are stated at the lower of cost (first-in, first-out method) or net realizable value. The Company writes down its inventory for estimated obsolescence or unmarketability based upon the age of the inventory and assumptions about future demand for the Company's products and market conditions.  Inventories from continuing operations consisted of the following:

	August 26,		February 25,
	2018		2018
Inventories:
Raw materials	$	2,570	$	2,824
Work-in-process		265		159
Finished goods		1,159		972
	$	3,994	$	3,955

5.  LONG-TERM DEBT

On January 15, 2016, the Company entered into a three-year revolving credit facility agreement (the “Credit Agreement”) with HSBC Bank USA, National Association (“HSBC Bank”). The Credit Agreement provided for loans up to $75,000 and letters of credit up to $2,000.

9

On January 3, 2018, in connection with the Company’s voluntary prepayment of the entire loan balance, the Company terminated the Credit Agreement. The prepayment was made with the Company’s cash and cash equivalents, marketable securities and restricted cash.

Interest expense recorded under the Credit Agreement was $0 during the 13-week and 26-week periods ended August 26, 2018 and $603 and $1,113 during the 13-week and 26-week periods ended August 27, 2017, respectively.

6.  STOCK-BASED COMPENSATION

As of August 26, 2018, the Company had a 2002 Stock Option Plan (the “Plan”), and no other stock-based compensation plan. The Plan was approved by the Company’s shareholders and provided for the grant of stock options to directors and key employees of the Company. All options granted under the Plan have exercise prices equal to the fair market value of the underlying common stock of the Company at the time of grant, which, pursuant to the terms of the Plan, is the reported closing price of the common stock on the New York Stock Exchange on the date preceding the date the option is granted. Options granted under the Plan become exercisable 25% one year after the date of grant, with an additional 25% exercisable each succeeding anniversary of the date of grant, and expire 10 years after the date of grant.

During the 26 weeks ended August 26, 2018, the Company granted options to purchase a total of 2,650 shares of common stock to certain of its employees. The future compensation expense to be recognized in earnings before income taxes was $10 and will be recorded on a straight-line basis over the requisite service period. The fair value of the granted options was $3.66 per share using the Black-Scholes option pricing model with the following assumptions: risk-free interest rate of 2.83%; expected volatility factor of 24.7%; expected dividend yield of 2.32%; and estimated option term of 5.2 years.

The risk-free interest rates were based on U.S. Treasury rates at the date of grant with maturity dates approximately equal to the estimated terms of the options at the date of the grant. Volatility factors were based on historical volatility of the Company’s common stock. The expected dividend yields were based on the regular quarterly cash dividend per share most recently declared by the Company and on the exercise price of the options granted during the 26 weeks ended August 26, 2018. The estimated term of the options was based on evaluations of the historical and expected future employee exercise behavior.

The Plan terminated on May 21, 2018, and authority to grant additional options under the Plan expired on that date. All options granted under the Plan will expire in April 2028 or earlier. The Board of Directors of the Company has adopted a 2018 Stock Option Plan which was approved by the shareholders of the Company at the Annual Meeting of Shareholders of the Company on July 24, 2018. No options have been granted under the 2018 Stock Option Plan.

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The following is a summary of option activity for the 26 weeks ended August 26, 2018:

	Outstanding Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)
Balance, February 25, 2018		885,554		$	17.55
Granted		2,650			17.75
Exercised		(35,537	)		17.55
Terminated or expired		(99,413	)		19.63
Balance, August 26, 2018		753,254		$	17.28		5.03
Vested and exercisable, August 26, 2018		628,548		$	18.01		4.66

7.     EARNINGS PER SHARE

Basic earnings per share are computed by dividing net earnings by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share are computed by dividing net earnings by the sum of (a) the weighted average number of shares of common stock outstanding during the period and (b) the potentially dilutive securities outstanding during the period. Stock options are the only potentially dilutive securities that have been issued by the Company; and the number of dilutive options is computed using the treasury stock method.

The following table sets forth the calculation of basic and diluted earnings per share:

	13 Weeks Ended					26 Weeks Ended
	August 26, 2018		August 27, 2017			August 26, 2018		August 27, 2017
Net earnings - continuing operations	$	1,824	$	859		$	2,640	$	931
Net earnings - discontinued operations	$	876	$	(339	)	$	3,228	$	983
Net earnings	$	2,700	$	520		$	5,868	$	1,914
Weighted average common shares outstanding for basic EPS		20,253		20,236			20,248		20,236
Net effect of dilutive options		129		14			91		11
Weighted average shares outstanding for diluted EPS		20,382		20,250			20,339		20,247
Basic earnings per share - continuing operations		0.09		0.04			0.13		0.04
Basic earnings per share - discontinued operations		0.04		(0.01	)		0.16		0.05
Basic earnings per share	$	0.13	$	0.03		$	0.29	$	0.09
Diluted earnings per share - continuing operations		0.09		0.04			0.13		0.04
Diluted earnings per share - discontinued operations		0.04		(0.01	)		0.16		0.05
Diluted earnings per share	$	0.13	$	0.03		$	0.29	$	0.09

Potentially dilutive securities, which were not included in the computation of diluted earnings per share because either the effect would have been anti-dilutive or the options’ exercise prices were greater than the average market price of the common stock, were 146,000 and 713,000 for the 13 weeks ended August 26, 2018 and August 27, 2017, respectively, and 345,000 and 793,000 for the 26 weeks ended August 26, 2018 and August 27, 2017, respectively.

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8.   SHAREHOLDERS’ EQUITY

During the 26 weeks ended August 26, 2018, the Company sold 35,537 shares of the Company’s treasury stock pursuant to the exercises of employee stock options and received proceeds of $624 from such exercises. The Company recognized stock-based compensation expense, net of tax benefits, of $400.

On January 8, 2015, the Company announced that its Board of Directors authorized the Company’s purchase, on the open market and in privately negotiated transactions, of up to 1,250,000 shares of its common stock, representing approximately 6% of the Company’s 20,945,634 total outstanding shares as of the close of business on January 7, 2015. This authorization superseded all prior Board of Directors’ authorizations to purchase shares of the Company’s common stock.

On March 10, 2016, the Company announced that its Board of Directors authorized the Company’s purchase, on the open market and in privately negotiated transactions, of up to 1,000,000 additional shares of its common stock, in addition to the unused prior authorization to purchase shares of the Company’s common stock announced on January 8, 2015. As a result, the Company is authorized to purchase up to a total of 1,531,412 shares of its common stock, representing approximately 7.6% of the Company’s 20,277,446 total outstanding shares as of the close of business on October 4, 2018.

The Company did not purchase any shares of its common stock during the 26 weeks ended August 26, 2018 or during the 26 weeks ended August 27, 2017.

9.   INCOME TAXES

The Company’s effective tax rates for the 13 weeks and 26 weeks ended August 26, 2018 were negative 31.6% and negative 6.6%, respectively, compared to 23.0% and 23.2%, respectively, for the 13 weeks and 26 weeks ended August 27, 2017. The negative effective tax rates were due to a tax benefit of $788 related to clarifying regulations pertaining to the Tax Cuts and Job Act enacted in December 2017.

The Company continuously evaluates the liquidity and capital requirements of its operations in the United States and of its foreign operations. As a result of such evaluations, the Company repatriated $6,250, $135,300 and $6,800 in cash from the Company’s subsidiary in Singapore in the 2019, 2018 and 2017 fiscal years, respectively.

10.  DISCONTINUED OPERATIONS

On July 25, 2018, the Company entered into a definitive agreement to sell its Electronics Business for $145,000 in cash.  The Company expects this transaction to be completed in the fourth quarter of the 2019 fiscal year.

The Company has classified the operating results of its Electronics Business, together with certain costs related to the transaction, as discontinued operations, net of tax, in the Consolidated Statement of Operations.

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The following table shows the summary operating results of the discontinued operations:

	13 Weeks Ended (Unaudited)					26 Weeks Ended (Unaudited)
	August 26,		August 27,			August 26,		August 27,
	2018		2017			2018		2017
Net sales	$	17,843	$	18,481		$	38,552	$	37,172
Cost of sales		13,884		14,512			28,937		29,178
Gross profit		3,959		3,969			9,615		7,994
Selling, general and administrative expenses		2,448		2,203			5,046		4,115
Restructuring charges		454		2,902			757		4,638
Earnings (loss) from discontinued operations before income taxes		1,057		(1,136	)		3,812		(759	)
Income tax (benefit) provision		181		(797	)		584		(1,742	)
Net earnings (loss) from discontinued operations	$	876	$	(339	)	$	3,228	$	983

13

The following table shows the summary assets and liabilities of the discontinued operations:

	August 26, 2018		February 25, 2018*
	(unaudited)
Carrying Amount of Major Classes of Assets Included as Part of Discontinued Operations:
Accounts Receivable, Net	$	13,081	$	12,801
Inventories		8,717		7,201
Fixed Assets, Net		6,190		6,727
Prepaid Expenses and Other Current Assets		826		646
Total Major Assets Included as Part of Discontinued Operations		28,814		27,375
Other Assets		5,216		5,072
Total Assets Included as Part of Discontinued Operations	$	34,030	$	32,447
Carrying Amount of Major Classes of Liabilities Included as Part of Discontinued Operations:
Accounts Payable	$	2,736	$	2,200
Accrued Liabilities		4,200		4,360
Deferred Income Taxes		618		618
Income Taxes Payable		1,234		1,364
Total Major Liabilities Included as Part of Discontinued Operations		8,788		8,542
Other Liabilities		228		229
Total Liabilities Included as Part of Discontinued Operations	$	9,016	$	8,771

* These amounts have not been audited, but are derived from the audited financial statements.

During the 2018 fiscal year, the Company consolidated its Nelco Products, Inc. Business Unit located in Fullerton, California and its Neltec, Inc. Business Unit located in Tempe, Arizona. The Company estimates the remaining pre-tax charge in connection with the consolidation to be approximately $1,020, which the Company expects to incur primarily during the fiscal year ending February 28, 2021.

The restructuring expenses were $117 and $169 during the 13-week and 26-week periods ended August 26, 2018, respectively, and $2,813 and $4,063 during the 13-week and 26-week periods ended August 27, 2017, respectively.

14

The following table sets forth the charges and accruals related to the consolidation:

	Accrual May 27, 2018		Current Period Charges		Cash Payments			Non-Cash Charges		Accrual August 26, 2018		Total Expense Accrued to Date		Total Expected Costs
Facility Lease Costs	$	1,965	$	51	$	(181	)	$	-	$	1,835	$	2,800	$	2,800
Severance Costs		-		-		-			-		-		1,081		1,081
Equipment Removal		-		-		-			-		-		-		700
Other		-		66		(66	)		-		-		717		919
Total Restructuring Charges	$	1,965	$	117	$	(247	)	$	-	$	1,835	$	4,598	$	5,500

The Company recorded additional restructuring charges of $77 and $208 during the 13-week and 26-week periods ended August 26, 2018, respectively, and $89 and $200 during the 13-week and 26-week periods ended August 27, 2017, respectively, related to the closure in the 2009 fiscal year of the Company’s New England Laminates Co., Inc. Business Unit located in Newburgh, New York. The New England Laminates Co., Inc. building in Newburgh, New York is held for sale. In the 2004 fiscal year, the Company reduced the book value of the building to zero, and the Company intends to sell it during the 2019 fiscal year.

11.   CONTINGENCIES

Litigation 

The Company is subject to a number of proceedings, lawsuits and other claims related to environmental, employment, product and other matters. The Company is required to assess the likelihood of any adverse judgments or outcomes in these matters as well as potential ranges of probable losses. A determination of the amount of reserves required, if any, for these contingencies is made after careful analysis of each individual issue. The required reserves may change in the future due to new developments in each matter or changes in approach, such as a change in settlement strategy in dealing with these matters. The Company believes that the ultimate disposition of such proceedings, lawsuits and claims will not have a material adverse effect on the Company’s liquidity, capital resources or business or its consolidated results of operations, cash flows or financial position.

Environmental Contingencies 

The Company and certain of its subsidiaries have been named by the Environmental Protection Agency (the “EPA”) or a comparable state agency under the Comprehensive Environmental Response, Compensation and Liability Act (the “Superfund Act”) or similar state law as potentially responsible parties in connection with alleged releases of hazardous substances at three sites.

Under the Superfund Act and similar state laws, all parties who may have contributed any waste to a hazardous waste disposal site or contaminated area identified by the EPA or comparable state agency may be jointly and severally liable for the cost of cleanup. Generally, these sites are locations at which numerous persons disposed of hazardous waste. In the case of the Company’s subsidiaries, generally the waste was removed from their manufacturing facilities and disposed at waste sites by various companies which contracted with the subsidiaries to provide waste disposal services. Neither the Company nor any of its subsidiaries have been accused of or charged with any wrongdoing or illegal acts in connection with any such sites. The Company believes it maintains an effective and comprehensive environmental compliance program.

The insurance carriers which provided general liability insurance coverage to the Company and its subsidiaries for the years during which the Company’s subsidiaries’ waste was disposed at these sites have in the past reimbursed the Company and its subsidiaries for 100% of their legal defense and remediation costs associated with two of these sites.

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The Company does not record environmental liabilities and related legal expenses for which the Company believes that it and its subsidiaries have general liability insurance coverage for the years during which the Company’s subsidiaries’ waste was disposed at two sites for which certain subsidiaries of the Company have been named as potentially responsible parties. Pursuant to such general liability insurance coverage, three insurance carriers reimburse the Company and its subsidiaries for 100% of the legal defense and remediation costs associated with the two sites.

Included in selling, general and administrative expenses are charges for actual expenditures and accruals, based on estimates, for certain environmental matters described above. The Company accrues estimated costs associated with known environmental matters, when such costs can be reasonably estimated and when the outcome appears probable. The Company believes that the ultimate disposition of known environmental matters will not have a material adverse effect on the Company’s results of operations, cash flows or financial position.

12.  ACCOUNTING PRONOUNCEMENTS

Recently Adopted

In November 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, to reduce the diversity that exists in the classification and presentation of changes in restricted cash in the statement of cash flows. The new standard is effective for fiscal years beginning after December 15, 2017 and the interim periods within those fiscal years. The Company has adopted the guidance effective February 26, 2018, the first day of the 2019 fiscal year, and the adoption of this guidance did not impact its consolidated results of operations, cash flows, financial position or disclosures.

In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, to reduce the diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The new standard is effective for fiscal years beginning after December 15, 2017 and the interim periods within those fiscal years. The Company has adopted the guidance effective February 26, 2018, the first day of the 2019 fiscal year, and the adoption of this guidance did not impact its consolidated results of operations, cash flows, financial position or disclosures.

In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, intended to improve the recognition and measurement of financial instruments, effective for public business entities for fiscal years beginning after December 15, 2017, and the interim periods within those fiscal years.  The Company has adopted the guidance effective February 26, 2018, the first day of the 2019 fiscal year, and the adoption of this guidance did not impact its consolidated results of operations, cash flows, financial position or disclosures.

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In May 2014, the FASB issued Accounting Standards Codification Topic 606, Revenue from Contracts with Customers, which supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. This guidance requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services, and expands the related disclosure requirements. The new standard was originally scheduled to be effective for fiscal years beginning after December 15, 2016, including interim reporting periods within those fiscal years. In August 2015, the FASB delayed the effective date of this guidance for one year. With the delay, the new standard is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years, with an option to adopt the standard on the originally scheduled effective date. The Company has adopted the guidance effective February 26, 2018, the first day of the 2019 fiscal year, and the adoption of this guidance did not impact its consolidated results of operations, cash flows, financial position or disclosures.

Recently Issued

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), intended to increase transparency and comparability among companies by requiring most leases to be included on the balance sheet and by expanding disclosure requirements, effective for public business entities for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years (i.e., January 1, 2019, for a calendar year entity). Early application is permitted for all public business entities and all nonpublic business entities upon issuance. The Company is currently evaluating the impact that this new guidance may have on its consolidated results of operations, cash flows, financial position and disclosures.

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Item 2.   Management's Discussion and Analysis of Financial Condition and Results of Operations.

General:

Park Electrochemical Corp. (“Park” or the “Company”) is a global advanced materials company which develops, manufactures, markets and sells advanced composite materials, primary and secondary structures and assemblies and low-volume tooling for the global aerospace markets and high-technology digital and RF/microwave printed circuit materials principally for the telecommunications and internet infrastructure, enterprise and military/aerospace markets. The Company’s manufacturing facilities are located in Kansas, Singapore, France, Arizona and California. The Company also maintains research and development facilities in Arizona, Kansas and Singapore.

On July 25, 2018, the Company announced that it had entered into a definitive agreement to sell its iconic Electronics Business, which includes manufacturing locations in Singapore, France, California and Arizona and R&D facilities in Singapore and Arizona, to AGC Inc., formerly Asahi Glass Co., Ltd., based in Tokyo, Japan, for $145.0 million in cash. Park will retain its Aerospace Business. Park’s Aerospace Business develops, manufactures, markets and sells advanced composite materials, primary and secondary structures and assemblies and low volume tooling for the global aerospace markets and includes Park’s principal aerospace manufacturing and development facility located in Newton, Kansas and its satellite aerospace manufacturing facility located in Singapore. See Note 10, “Discontinued Operations”, of the Notes to Consolidated Financial Statements elsewhere in this Report for additional information on the sale.

Financial Overview

The Company's total net sales from continuing operations in the 13 weeks and 26 weeks ended August 26, 2018 were $11.2 million and $21.6 million, respectively, compared to $11.4 million and $20.1 million in the 13 weeks and 26 weeks ended August 27, 2017, respectively.

The Company’s gross profit margins from continuing operations, measured as percentages of sales, were 28.1% and 27.8%, respectively, in the 13 weeks and 26 weeks ended August 26, 2018 compared to 28.3% and 27.4%, respectively, in the 13 weeks and 26 weeks ended August 27, 2017.

The Company’s earnings from continuing operations and net earnings from continuing operations were 6% and 112% higher, respectively, in the 13 weeks ended August 26, 2018 compared to the 13 weeks ended August 27, 2017 primarily as a result of higher net interest income due to the elimination of interest expense as a result of the voluntary prepayment of long-term debt and a lower tax provision compared to last year’s comparable period.

The Company’s earnings from continuing operations and net earnings from continuing operations were 116% and 184% higher, respectively, in the 26 weeks ended August 26, 2018 than in last fiscal year’s comparable period primarily as a result of higher sales, higher net interest income due to the elimination of interest expense as a result of the voluntary prepayment of long-term debt and a lower tax provision compared to last year’s comparable period.

The Company has a limited number of long-term contracts. Long-term contracts are primarily requirements based and do not guarantee quantities. Orders are typically received one to three months in advance of delivery.

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Results of Operations:

The following table sets forth the components of the consolidated statements of operations:

	13 Weeks Ended									26 Weeks Ended
	August 26,			August 27,			%			August 26,			August 27,		%
(amounts in thousands, except per share amounts)	2018			2017			Change			2018			2017		Change
Net sales	$	11,211		$	11,355			(1	)%	$	21,604		$	20,081		8	%
Cost of sales		8,066			8,147			(1	)%		15,607			14,576		7	%
Gross profit		3,145			3,208			(2	)%		5,997			5,505		9	%
Selling, general and administrative expenses		2,116			2,240			(6	)%		4,217			4,680		(10	)%
Restructuring charges		-			-			100	%		-			-		100	%
Earnings from continuing operations		1,029			968			6	%		1,780			825		116	%
Interest expense		-			603			(100	)%		-			1,113		(100	)%
Interest and other income		357			751			(52	)%		697			1,500		(54	)%
Earnings from continuing operations before income taxes		1,386			1,116			24	%		2,477			1,212		104	%
Income tax (benefit) provision		(438	)		257			(270	)%		(163	)		281		(158	)%
Net earnings from continuing operations	$	1,824		$	859			112	%	$	2,640		$	931		184	%
Earnings (Loss) from discontinued operations, net of tax		876			(339	)		(358	)%		3,228			983		228	%
Net Earnings	$	2,700		$	520			419	%	$	5,868		$	1,914		207	%
Earnings per share:
Basic:
Continuing Operations	$	0.09		$	0.04			125	%	$	0.13		$	0.04		225	%
Discontinued Operations		0.04			(0.01	)		(300	)%		0.16			0.05		220	%
Basic earnings (loss) per share	$	0.13		$	0.03			550	%	$	0.29		$	0.09		222	%
Diluted:
Continuing Operations	$	0.09		$	0.04		$	125	%	$	0.13		$	0.04		225	%
Discontinued Operations		0.04			(0.01	)		(300	)%		0.16			0.05		220	%
Diluted earnings (loss) per share	$	0.13		$	0.03			550	%	$	0.29		$	0.09		222	%

Net Sales

The Company’s total net sales from continuing operations worldwide in the 13 weeks ended August 26, 2018 decreased to $11.2 million from $11.4 million in the 13 weeks ended August 27, 2017. The Company’s total net sales from continuing operations worldwide in the 26 weeks ended August 26, 2018 increased to $21.6 million from $20.1 million in the 26 weeks ended August 27, 2017.

Gross Profit

The Company’s gross profit from continuing operations in the 13 weeks ended August 26, 2018 was lower than its gross profit from continuing operations in the prior year’s comparable period, and the gross profit from continuing operations as a percentage of sales for the Company’s worldwide operations in the 13 weeks ended August 26, 2018 decreased to 28.1% from 28.3% in the 13 weeks ended August 27, 2017. The Company’s gross profit from continuing operations in the 26 weeks ended August 26, 2018 was higher than its gross profit from continuing operations in the prior year’s comparable period, and the gross profit from continuing operations as a percentage of sales for the Company’s worldwide operations in the 26 weeks ended August 26, 2018 increased to 27.8% from 27.4% in the 26 weeks ended August 27, 2017. The lower gross profit margin from continuing operations for the 13 weeks ended August 26, 2018 compared to the 13 weeks ended August 27, 2017 was principally due to the lower sales in the 13 weeks ended August 26, 2018 compared to the 13 weeks ended August 27, 2017. The higher gross profit margin from continuing operations for the 26 weeks ended August 26, 2018 compared to the 26 weeks ended August 27, 2017 was principally a result of higher sales in the 26 weeks ended August 26, 2018 compared to the 26 weeks ended August 27, 2017.

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Selling, General and Administrative Expenses

Selling, general and administrative expenses from continuing operations decreased by $124,000 during the 13 weeks ended August 26, 2018, or by 6%, and decreased by $463,000 during the 26 weeks ended August 26, 2018, or by 10%, compared to last fiscal year's comparable periods, and these expenses, measured as percentages of sales from continuing operations, were 18.9% and 19.5%, respectively, in the 13 weeks and 26 weeks ended August 26, 2018 compared to 19.7% and 23.3%, respectively, in the 13 weeks and 26 weeks ended August 27, 2017. The decreases in such expenses during the 13 weeks and 26 weeks ended August 26, 2018 were primarily the result of lower payroll, tradeshow and stock option expenses.

Selling, general and administrative expenses from continuing operations included stock option expenses of $199,000 and $400,000, respectively, for the 13 weeks and 26 weeks ended August 26, 2018, compared to stock option expenses of $235,000 and $475,000, respectively, for the 13 weeks and 26 weeks ended August 27, 2017.

Earnings from Operations

For the reasons set forth above, the Company’s earnings from continuing operations were $1.0 million and $1.8 million, respectively, for the 13 weeks and 26 weeks ended August 26, 2018 compared to $1.0 million and $0.8 million, respectively, for the 13 weeks and 26 weeks ended August 27, 2017.

Interest Expense

Interest expense in the 13 weeks and 26 weeks ended August 27, 2017 related to the Company’s borrowings under the three-year revolving credit facility agreement that the Company entered into with HSBC Bank in the fourth quarter of the 2017 fiscal year. The agreement provided for an interest rate on the outstanding loan balance of LIBOR plus 1.15% to 2.65%. Other interest rate options were available to the Company under the agreement. On January 3, 2018, the Company voluntarily prepaid the remaining loan balance of $68.5 million. See “Liquidity and Capital Resources” elsewhere in this Item 2 and Note 5 of the Notes to Consolidated Financial Statements elsewhere in this Report for additional information.

Interest and Other Income

Interest and other income from continuing operations was $357,000 and $697,000, respectively, for the 13 weeks and 26 weeks ended August 26, 2018, compared to $751,000 and $1.5 million, respectively, for last fiscal year's comparable periods. Interest income decreased 52% and 54%, respectively, for the 13 weeks and 26 weeks ended August 26, 2018 primarily as a result of lower average balances of marketable securities held by the Company in the 13 weeks and 26 weeks ended August 26, 2018, compared to last fiscal year's comparable periods, partially offset by higher weighted average interest rates. During the 26 weeks ended August 26, 2018, the Company earned interest income principally from its investments, which consisted primarily of short-term instruments and money market funds.

Income Tax Provision

The Company's effective income tax rates from continuing operations for the 13 weeks and 26 weeks ended August 26, 2018 were negative 31.6% and negative 6.6%, respectively, compared to 23.0% and 23.2%, respectively, for the 13 weeks and 26 weeks ended August 27, 2017. The negative effective income tax rates in the 2019 fiscal year periods were due to a tax benefit of $788,000 related to clarifying regulations pertaining to the Tax Cuts and Jobs Act enacted in December 2017.

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Discontinued Operations

On July 25, 2018, the Company entered into a definitive agreement to sell its Electronics Business for $145.0 million in cash. The Company expects this transaction to be completed in the fourth quarter of the 2019 fiscal year.

The operating results of the Electronics Business are classified, together with certain costs related to the transaction, as discontinued operations, net of tax, in the Consolidated Statement of Operations.

The Company’s net earnings from discontinued operations were higher in the 13 weeks ended August 26, 2018 compared to the 13 weeks ended August 27, 2017 primarily as a result of lower restructuring charges, partially offset by lower sales, compared to last year’s comparable period. The Company’s net earnings from discontinued operations were higher in the 26-week period ended August 26, 2018 than in last fiscal year’s comparable period, primarily as a result of lower restructuring charges and higher sales, compared to last year’s comparable period, and a one-time litigation expense of $375,000 in the 26-week period ended August 27, 2017.

During the 2018 fiscal year, the Company consolidated its Nelco Products, Inc. Electronics Business Unit located in Fullerton, California and its Neltec, Inc. Electronics Business Unit located in Tempe, Arizona. The restructuring expenses were $117,000 and $169,000 during the 13-week and 26-week periods ended August 26, 2018, respectively, and $2.8 million and $4.1 million during the 13-week and 26-week periods ended August 27, 2017, respectively.

Net Earnings

For the reasons set forth above, the Company's net earnings from continuing operations for the 13 weeks and 26 weeks ended August 26, 2018 were $1.8 million and $2.6 million, respectively, compared to net earnings of $859,000 and $931,000, respectively, for the 13 weeks and 26 weeks ended August 27, 2017.

Basic and Diluted Earnings Per Share

In the 13 weeks and 26 weeks ended August 26, 2018, basic and diluted earnings per share were $0.09 and $0.13, respectively, including, in both such periods, the tax benefit described above. This compared to basic and diluted earnings per share of $0.04 and $0.05 in the 13 weeks and 26 weeks ended August 27, 2017, respectively. The net impact of the tax benefit described above increased basic and diluted earnings per share by $0.04 in each of the 13 weeks and 26 weeks ended August 26, 2018.

Liquidity and Capital Resources - Continuing Operations:

(amounts in thousands)	August 26,		February 25,
	2018		2018		Change
Cash and cash equivelants and marketable securities	$	108,310	$	108,231	$	79
Working capital		116,094		116,317		(223	)

	26 Weeks Ended
(amounts in thousands)	August 26,			August 27,
	2018			2017			Change
Net cash provided by operating activities	$	1,637		$	1,019		$	618
Net cash (used in) provided by investing activities		2,499			(68,041	)		70,540
Net cash used in financing activities		(3,424	)		(5,758	)		2,334

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Cash and Marketable Securities

Of the $108.3 million of cash and cash equivalents and marketable securities at August 26, 2018, $107.0 million was owned by certain of the Company’s wholly owned foreign subsidiaries.

The change in cash and cash equivalents, marketable securities and restricted cash at August 26, 2018 compared to February 25, 2018 was the result of cash used in operating activities and a number of additional factors. The significant changes in cash flows from operating activities were as follows:

● accounts receivable decreased by 16% at August 26, 2018 compared to February 25, 2018 primarily due to lower sales in the quarter ended August 26, 2018 than in the fourth quarter of the 2018 fiscal year;

● prepaid expenses increased by 7% at August 26, 2018 compared to February 25, 2018 primarily due to an increase in accrued interest on our marketable securities;

● accounts payable decreased by 40% at August 26, 2018 compared to February 25, 2018 primarily due to the timing of vendor payments and raw material purchases from suppliers;

● accrued liabilities increased by 8% at August 26, 2018 compared to February 25, 2018 primarily due to increases in payroll and shutdown accruals offset by lower professional fee accruals; and 

● income taxes payable decreased by 8% at August 26, 2018 compared to February 25, 2018 primarily due to income tax payments made during the 26 weeks ended August 26, 2018.

In addition, the Company paid $4.0 million in cash dividends in each of the 26-week periods ended August 26, 2018 and August 27, 2017. 

Working Capital

The decrease in working capital at August 26, 2018 compared to February 25, 2018 was due principally to the decrease in accounts receivable, partially offset by the decrease in accounts payable.

The Company's current ratio (the ratio of current assets to current liabilities) was 32.7 to 1.0 at August 26, 2018 compared to 28.0 to 1.0 at February 25, 2018.

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Cash Flows

During the 26 weeks ended August 26, 2018, the Company's net earnings, before depreciation and amortization, stock-based compensation, amortization of bond premium and changes in operating assets and liabilities, were $1.6 million. During the same 26 week period, the Company expended $170,000 for the purchase of property, plant and equipment, compared with $365,000 during the 26 weeks ended August 27, 2017. The Company paid $4.0 million in cash dividends in each of the 26-week periods ended August 26, 2018 and August 27, 2017.

Other Liquidity Factors

The Company believes its financial resources will be sufficient, through the 12 months following the filing of this Form 10-Q Quarterly Report and for the foreseeable future thereafter, to provide for continued investment in working capital and property, plant and equipment and for general corporate purposes. The Company’s financial resources are also available for purchases of the Company's common stock, appropriate acquisitions and other expansions of the Company's business.

The Company is not aware of any circumstances or events that are reasonably likely to occur that could materially affect its liquidity.

Liquidity and Capital Resources - Discontinued Operations:

(amounts in thousands)	August 26,		February 25,
	2018		2018		Change
Cash and cash equivalents and marketable securities	$	-	$	-	$	-
Working capital		14,454		12,724		1,730

	26 Weeks Ended
(amounts in thousands)	August 26,			August 27,
	2018			2017			Change
Net cash provided by operating activities	$	1,845		$	483		$	1,362
Net cash (used in) provided by investing activities		(23	)		(135	)		112
Net cash used in financing activities		-			-			-

Working Capital         

The increase in working capital at August 26, 2018 compared to February 25, 2018 was due principally to the increase in inventory levels.

The Company's current ratio (the ratio of current assets to current liabilities) was 2.8 to 1.0 at August 26, 2018 compared to 2.6 to 1.0 at February 25, 2018.

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Cash Flows

During the 26 weeks ended August 26, 2018, the Company's net earnings, before depreciation and amortization, stock-based compensation, amortization of bond premium and changes in operating assets and liabilities, were $1.8 million. During the same 26 week period, the Company expended $23,000 for the purchase of property, plant and equipment, compared with $135,000 during the 26 weeks ended August 27, 2017.

Contractual Obligations:

The Company's contractual obligations and other commercial commitments to make future payments under contracts, such as lease agreements, consist only of (i) operating lease commitments and (ii) commitments to purchase raw materials. The Company has no other long-term debt, capital lease obligations, unconditional purchase obligations or other long-term obligations, standby letters of credit, guarantees, standby repurchase obligations or other commercial commitments or contingent commitments, other than two standby letters of credit in the total amount of $980,000 to secure the Company's obligations under its workers' compensation insurance program.

Off-Balance Sheet Arrangements:

The Company's liquidity is not dependent on the use of, and the Company is not engaged in, any off-balance sheet financing arrangements, such as securitization of receivables or obtaining access to assets through special purpose entities.

Critical Accounting Policies and Estimates:

The foregoing Discussion and Analysis of Financial Condition and Results of Operations is based upon the Company's Consolidated Financial Statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these Consolidated Financial Statements requires the Company to make estimates, assumptions and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and the related disclosure of contingent liabilities as well as the reporting requirements of continuing and discontinued operations. On an ongoing basis, the Company evaluates its estimates, including those related to sales allowances, allowances for doubtful accounts, inventories, valuation of long-lived assets, income taxes, contingencies and litigation, and employee benefit programs. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

The Company’s critical accounting policies that are important to the Consolidated Financial Statements and that entail, to a significant extent, the use of estimates and assumptions and the application of management’s judgment are described in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, in the Company’s Annual Report on Form 10-K for the fiscal year ended February 25, 2018. There have been no significant changes to such accounting policies during the 2019 fiscal year second quarter.

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In May 2014, the FASB issued Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers, which supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. This guidance requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services, and expands the related disclosure requirements. The new standard was originally scheduled to be effective for fiscal years beginning after December 15, 2017, including interim reporting periods within those fiscal years. In August 2015, the FASB delayed the effective date of this guidance for one year. With the delay, the new standard is effective for fiscal years beginning after December 15, 2018 and the interim periods within those fiscal years, with an option to adopt the standard on the originally scheduled effective date. The Company has adopted the guidance effective February 26, 2018, the first day of the 2019 fiscal year, and the adoption of this guidance did not impact its consolidated results of operations, cash flows, financial position or disclosures.

Contingencies:

The Company is subject to a number of proceedings, lawsuits and other claims related to environmental, employment, product and other matters. The Company is required to assess the likelihood of any adverse judgments or outcomes in these matters as well as potential ranges of probable losses. A determination of the amount of reserves required, if any, for these contingencies is made after careful analysis of each individual issue. The required reserves may change in the future due to new developments in each matter or changes in approach, such as a change in settlement strategy in dealing with these matters.

Factors That May Affect Future Results.

Certain portions of this Report which do not relate to historical financial information may be deemed to constitute forward-looking statements that are subject to various factors which could cause actual results to differ materially from the Company’s expectations or from results which might be projected, forecasted, estimated or budgeted by the Company in forward-looking statements. Such factors include, but are not limited to, general conditions in the electronics and aerospace industries, the Company’s competitive position, the status of the Company’s relationships with its customers, economic conditions in international markets, the cost and availability of raw materials, transportation and utilities, and the various factors set forth under the caption “Factors That May Affect Future Results” in Item 1 and in Item 1A “Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended February 25, 2018.

Item 3.     Quantitative and Qualitative Disclosures About Market Risk.

The Company's market risk exposure at August 26, 2018 is consistent with, and not greater than, the types of market risk and amount of exposures presented in the Annual Report on Form 10-K for the fiscal year ended February 25, 2018.

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Item 4.     Controls and Procedures.

(a)     Disclosure Controls and Procedures.

The Company's management, with the participation of the Company's Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company's disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")) as of August 26, 2018, the end of the quarterly fiscal period covered by this quarterly report. Based on such evaluation, the Company's Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, the Company's disclosure controls and procedures were effective in recording, processing, summarizing and reporting, on a timely basis, information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act and were effective in ensuring that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

(b)     Changes in Internal Control Over Financial Reporting.

Except for the implementation of certain internal controls related to the presentation of discontinued operations, there has not been any change in the Company's internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter to which this report relates that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

26

PART II. OTHER INFORMATION

Item 1.          Legal Proceedings.

None.

Item 1A.       Risk Factors.

There have been no material changes in the risk factors as previously disclosed in the Company’s Form 10-K Annual Report for the fiscal year ended February 25, 2018.

Item 2.          Unregistered Sales of Equity Securities and Use of Proceeds.

The following table provides information with respect to shares of the Company's Common Stock acquired by the Company during each month included in the Company’s 2019 fiscal year second quarter ended August 26, 2018.

Period	Total Number of Shares (or Units) Purchased		Average Price Paid Per Share (or Unit)		Total Number of Shares (or Units) Purchased As Part of Publicly Announced Plans or Programs		Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
May 28 - June 26		0	$	-		0
June 27 - July 26		0	$	-		0
July 27 - August 26		0	$	-		0
Total		0	$	-		0	1,531,412 (a)
(a)	Aggregate number of shares available to be purchased by the  Company pursuant to share purchase authorizations announced on January 8, 2015 and March 10, 2016. Pursuant to such  authorizations, the Company is authorized to purchase its  shares from time to time on the open market or in  privately negotiated transactions.

Item 3.          Defaults Upon Senior Securities.

None.

Item 4.          Mine Safety Disclosures.

None.

27

Item 5.          Other Information.

None.

Item 6.          Exhibits.

31.1 Certification of principal executive officer pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a).

31.2 Certification of principal financial officer pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a).

32.1 Certification of principal executive officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2 Certification of principal financial officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101	The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended August 26, 2018, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets at August 26, 2018 (unaudited) and February 25, 2018; (ii) Consolidated Statements of Operations for the 13 weeks and 26 weeks ended August 26, 2018 and August 27, 2017 (unaudited); (iii) Consolidated Statements of Comprehensive Earnings for the 13 weeks and 26 weeks ended August 26, 2018 and August 27, 2017 (unaudited); and (iv) Condensed Consolidated Statements of Cash Flows for the 26 weeks ended August 26, 2018 and August 27, 2017 (unaudited). * +
	*     Filed electronically herewith.
	+     Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

28

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Park Electrochemical Corp.
	------------------------------
	(Registrant)
	/s/ Brian E. Shore
Date: October 5, 2018	-----------------------------------
	Brian E. Shore
	Chief Executive Officer
	(principal executive officer)
	/s/ P. Matthew Farabaugh
	-----------------------------------
Date: October 5, 2018	P. Matthew Farabaugh
	Senior Vice President and Chief Financial Officer
	(principal financial officer)
	(principal accounting officer)

29

EXHIBIT INDEX

Exhibit No. -----------	Name ----
31.1	Certification of principal executive officer pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a).
31.2	Certification of principal financial officer pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a).
32.1	Certification of principal executive officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of principal financial officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended August 26, 2018, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets at August 26, 2018 (unaudited) and February 25, 2018; (ii) Consolidated Statements of Operations for the 13 weeks and 26 weeks ended August 26, 2018 and August 27, 2017 (unaudited); (iii) Consolidated Statements of Comprehensive Earnings for the 13 weeks and 26 weeks ended August 26, 2018 and August 27, 2017 (unaudited); and (iv) Condensed Consolidated Statements of Cash Flows for the 26 weeks ended August 26, 2018 and August 27, 2017 (unaudited). * +
*	Filed electronically herewith.
+	Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

30

EX-31.1

EXHIBIT 31.1

Certification of Principal Executive Officer

Pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a)

I, Brian E. Shore, as Chief Executive Officer of Park Electrochemical Corp., certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended August 26, 2018 of Park Electrochemical Corp.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)	evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.	The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
	(a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
	(b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:      October 5, 2018

/s/           Brian E. Shore                                                       

Name:    Brian E. Shore

Title:      Chief Executive Officer  

EX-31.2

EXHIBIT 31.2

Certification of Principal Financial Officer

Pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a)

I, P. Matthew Farabaugh, as Senior Vice President and Chief Financial Officer of Park Electrochemical Corp., certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended August 26, 2018 of Park Electrochemical Corp.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:      October 5, 2018

/s/ P. Matthew Farabaugh                                                

Name:  P. Matthew Farabaugh

Title: Senior Vice President and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

Certification of Principal Executive Officer Pursuant to

18 U.S.C. Section 1350,

as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q of Park Electrochemical Corp. (the "Company") for the quarterly period ended August 26, 2018 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), Brian E. Shore, as Chief Executive Officer of the Company, hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his knowledge:

(1)       The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)       The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Brian E. Shore                                                    

Name: Brian E. Shore

Title: Chief Executive Officer

Date: October 5, 2018

EX-32.2

EXHIBIT 32.2

Certification of Principal Financial Officer Pursuant to

18 U.S.C. Section 1350,

as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q of Park Electrochemical Corp. (the "Company") for the quarterly period ended August 26, 2018 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), P. Matthew Farabaugh, as Vice President and Chief Financial Officer of the Company, hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his knowledge:

(1)       The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)       The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/          P. Matthew Farabaugh                                                          

Name:   P. Matthew Farabaugh

Title: Senior Vice President and Chief Financial Officer

Date:   October 5, 2018

XML

Document And Entity Information - shares	6 Months Ended
	Aug. 26, 2018	Oct. 04, 2018
Document Information [Line Items]
Entity Registrant Name	PARK ELECTROCHEMICAL CORP
Entity Central Index Key	0000076267
Trading Symbol	pke
Current Fiscal Year End Date	--03-03
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Common Stock, Shares Outstanding (in shares)		20,277,108
Document Type	10-Q
Document Period End Date	Aug. 26, 2018
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Emerging Growth Company	false
Entity Small Business	false

XML

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Aug. 26, 2018	Feb. 25, 2018	[1]
Current assets:
Cash and cash equivalents	$ 20,854	$ 18,254
Marketable securities (Note 3)	87,456	89,977
Accounts receivable, less allowance for doubtful accounts of $32 and $32, respectively	5,878	6,961
Inventories (Note 4)	3,994	3,955
Prepaid expenses and other current assets	1,578	1,473
Current Assets - Discontinued Operations (Note 10)	22,624	20,648
Total current assets	142,384	141,268
Property, plant and equipment, net	9,111	9,805
Goodwill and other intangible assets	9,818	9,818
Other assets	377	370
Non-current Assets - Discontinued Operations (Note 10)	11,406	11,799
Total assets	173,096	173,060
Current liabilities:
Accounts payable	1,091	1,825
Accrued liabilities	1,108	1,022
Income taxes payable	1,467	1,456
Current Liabilities - Discontinued Operations (Note 10)	8,170	7,924
Total current liabilities	11,836	12,227
Non-current income taxes payable (Note 9)	18,594	20,364
Deferred income taxes (Note 9)	3,309	4,047
Other liabilities	314	314
Non-current Liabilities - Discontinued Operations (Note 10)	846	847
Total liabilities	34,899	37,799
Commitments and contingencies (Note 11)
Shareholders' equity (Note 8):
Common stock	2,096	2,096
Additional paid-in capital	169,304	169,011
Accumulated deficit	(19,278)	(21,099)
Accumulated other comprehensive earnings	222	131
	152,344	150,139
Less treasury stock, at cost	(14,147)	(14,878)
Total shareholders' equity	138,197	135,261
Total liabilities and shareholders' equity	$ 173,096	$ 173,060

[1] The balance sheet at February 25, 2018 has been derived from the audited financial statements at that date.

XML

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands	Aug. 26, 2018	Feb. 25, 2018
Accounts receivable, allowance for doubtful accounts	$ 32	$ 32	[1]

[1] The balance sheet at February 25, 2018 has been derived from the audited financial statements at that date.

XML

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Aug. 26, 2018	Aug. 27, 2017	Aug. 26, 2018	Aug. 27, 2017
Net sales	$ 11,211,000	$ 11,355,000	$ 21,604,000	$ 20,081,000
Cost of sales	8,066,000	8,147,000	15,607,000	14,576,000
Gross profit	3,145,000	3,208,000	5,997,000	5,505,000
Selling, general and administrative expenses	2,116,000	2,240,000	4,217,000	4,680,000
Earnings from continuing operations	1,029,000	968,000	1,780,000	825,000
Interest expense (Note 5)	0	603,000	0	1,113,000
Interest and other income	357,000	751,000	697,000	1,500,000
Earnings from continuing operations before income taxes	1,386,000	1,116,000	2,477,000	1,212,000
Income tax (benefit) provision (Note 9)	(438,000)	257,000	(163,000)	281,000
Net earnings from continuing operations	1,824,000	859,000	2,640,000	931,000
Earnings (Loss) from discontinued operations, net of tax (Note 10)	876,000	(339,000)	3,228,000	983,000
Net Earnings	$ 2,700,000	$ 520,000	$ 5,868,000	$ 1,914,000
Basic:
Continuing Operations (in dollars per share)	$ 0.09	$ 0.04	$ 0.13	$ 0.04
Discontinued Operations (in dollars per share)	0.04	(0.01)	0.16	0.05
Basic earnings per share (in dollars per share)	$ 0.13	$ 0.03	$ 0.29	$ 0.09
Basic weighted average shares (in shares)	20,253	20,236	20,248	20,236
Diluted:
Continuing Operations (in dollars per share)	$ 0.09	$ 0.04	$ 0.13	$ 0.04
Discontinued Operations (in dollars per share)	0.04	(0.01)	0.16	0.05
Diluted earnings per share (in dollars per share)	$ 0.13	$ 0.03	$ 0.29	$ 0.09
Diluted weighted average shares (in shares)	20,382	20,250	20,339	20,247
Dividends declared per share (in dollars per share)	$ 0.10	$ 0.10	$ 0.20	$ 0.20

XML

Consolidated Statements of Comprehensive Earnings (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 26, 2018	Aug. 27, 2017	Aug. 26, 2018	Aug. 27, 2017
Net earnings	$ 2,700	$ 520	$ 5,868	$ 1,914
Other comprehensive earnings (loss), net of tax:
Foreign currency translation	18	72	(1)	41
Other comprehensive earnings (loss)	126	88	91	(102)
Total comprehensive earnings	2,826	608	5,959	1,812
Gains on Marketable Securities [Member]
Other comprehensive earnings (loss), net of tax:
Unrealized holding gains (losses) arising during the period		21		24
Less: reclassification adjustment for gains (losses) included in net earnings		(27)		(96)
Losses on Marketable Securities [Member]
Other comprehensive earnings (loss), net of tax:
Unrealized holding gains (losses) arising during the period	(1)		(18)	(117)
Less: reclassification adjustment for gains (losses) included in net earnings	$ 109	$ 22	$ 110	$ 46

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Aug. 26, 2018	Aug. 27, 2017
Cash flows from operating activities:
Net earnings from continuing operations	$ 2,640	$ 931
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	865	905
Stock-based compensation	400	475
Deferred income taxes	(738)	(304)
Amortization of bond premium	24	125
Changes in operating assets and liabilities	(1,554)	(1,113)
Net cash provided by operating activities - continuing operations	1,637	1,019
Net cash provided by operating activities - discontinued operations	1,845	483
Net cash provided by operating activities	3,482	1,502
Cash flows from investing activities:
Purchase of property, plant and equipment	(170)	(365)
Purchases of marketable securities	(7,411)	(141,881)
Proceeds from sales and maturities of marketable securities	10,080	74,205
Net cash provided by (used in) investing activities - continuing operations	2,499	(68,041)
Net cash used in investing activities - discontinued operations	(23)	(135)
Net cash provided by (used in) investing activities	2,476	(68,176)
Cash flows from financing activities:
Dividends paid	(4,048)	(4,047)
Proceeds from exercise of stock options	624	39
Payments of long-term debt		(1,750)
Net cash used in financing activities - continuing operations	(3,424)	(5,758)
Net cash used in financing activities - discontinued operations
Net cash used in financing activities	(3,424)	(5,758)
Increase (decrease) in cash and cash equivalents before effect of exchange rate changes - continuing operations	712	(72,780)
Increase in cash and cash equivalents before effect of exchange rate changes - discontinued operations	1,822	348
Increase (decrease) in cash and cash equivalents before effect of exchange rate changes	2,534	(72,432)
Effect of exchange rate changes on cash and cash equivalents - continuing operations	(152)	29
Effect of exchange rate changes on cash and cash equivalents - discontinued operations	218	156
Effect of exchange rate changes on cash and cash equivalents	66	185
Increase (decrease) in cash and cash equivalents	2,600	(72,247)
Cash and cash equivalents, beginning of period	18,254	102,438
Cash and cash equivalents, end of period	20,854	30,191
Supplemental cash flow information:
Cash paid during the period for income taxes, net of refunds	2,332	1,534
Cash paid during the period for interest		$ 1,007

XML

Note 1 - Consolidated Financial Statements

6 Months Ended

Aug. 26, 2018

Notes to Financial Statements

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

1.

  CONSOLIDATED FINANCIAL STATEMENTS

The Condensed Consolidated Balance Sheet as of

August 26, 2018,

the Consolidated Statements of Operations and the Consolidated Statements of Comprehensive Earnings for the

13

weeks and

26

weeks ended

August 26, 2018

and

August 27, 2017

and the Condensed Consolidated Statements of Cash Flows for the

26

weeks then ended have been prepared by Park Electrochemical Corp. (the “Company”), without audit. In the opinion of management, these unaudited consolidated financial statements contain all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position at

August 26, 2018

and the results of operations and cash flows for all periods presented. The Consolidated Statements of Operations are

not

necessarily indicative of the results to be expected for the full fiscal year or any subsequent interim period.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been condensed or omitted. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form

10

-K for the fiscal year ended

February 25, 2018.

There have been

no

significant changes to such accounting policies during the

26

weeks ended

August 26, 2018.

On

July 25, 2018,

the Company entered into a definitive agreement to sell its Electronics Business for

$145,000

in cash. The Company expects this transaction to be completed in the

fourth

quarter of the

2019

fiscal year.

The Company has classified the operating results of its Electronics Business, together with certain costs related to the transaction, as discontinued operations, net of tax, in the Consolidated Statement of Operations, in accordance with Accounting Standards Codification (“ASC”)

205

-

20

Discontinued Operations.

XML

Note 2 - Fair Value Measurements

6 Months Ended

Aug. 26, 2018

Notes to Financial Statements

Fair Value Disclosures [Text Block]

2

.  FAIR VALUE MEASUREMENTS

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (

i.e.

, the “exit price”) in an orderly transaction between market participants at the measurement date.

Fair value measurements are broken down into

three

levels based on the reliability of inputs as follows:

Level

1

inputs are quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level

2

inputs are inputs, other than quoted prices included within Level

1,

that are observable for the asset or liability, either directly or indirectly. Level

2

inputs include quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices that are observable for the asset or liability (

e.g.

, interest rates and yield curves observable at commonly quoted intervals or current market), and contractual prices for the underlying financial instrument, as well as other relevant economic measures.

Level

3

inputs are unobservable inputs for the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are

not

available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.

The fair value of the Company’s cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their carrying value due to their short-term nature. Due to the variable interest rates’ periodically adjusting with the current LIBOR, the carrying value of outstanding borrowings under the Company’s long-term debt approximates its fair value. (See Note

5

). Certain assets and liabilities of the Company are required to be recorded at fair value on either a recurring or non-recurring basis. On a recurring basis, the Company records its marketable securities at fair value using Level

1

or Level

2

inputs. (See Note

3

).

The Company’s non-financial assets measured at fair value on a non-recurring basis include goodwill and any long-lived assets written down to fair value. To measure the fair value of such assets, the Company uses Level

3

inputs consisting of techniques including an income approach and a market approach. The income approach is based on a discounted cash flow analysis and calculates the fair value by estimating the after-tax cash flows attributable to a reporting unit and then discounting the after-tax cash flows to a present value using a risk-adjusted discount rate. Assumptions used in the discounted cash flow analysis require the exercise of significant judgment, including judgment about appropriate discount rates, terminal values, growth rates and the amount and timing of expected future cash flows. There were

no

transfers between levels within the fair value hierarchy during the

26

weeks ended

August 26, 2018

and

August 27, 2017.

With respect to goodwill, the Company

first

assesses qualitative factors to determine whether it is more likely than

not

that fair value is less than carrying value. If, based on that assessment, the Company believes it is more likely than

not

that fair value is less than carrying value, a goodwill impairment test is performed. There have been

no

changes in events or circumstances which required impairment charges to be recorded during the

13

or

26

weeks ended

August 26, 2018.

XML

Note 3 - Marketable Securities

6 Months Ended

Aug. 26, 2018

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

3

. 

MARKETABLE SECURITIES

All marketable securities are classified as available-for-sale and are carried at fair value, with the unrealized gains and losses, net of tax, included in comprehensive earnings. Realized gains and losses, amortization of premiums and discounts, and interest and dividend income are included in interest and other income in the Consolidated Statements of Operations. The costs of securities sold are based on the specific identification method.

The following is a summary of available-for-sale securities:

	August 26, 2018
	Total		Level 1		Level 2		Level 3
U.S. Treasury and other government securities	$	76,442	$	76,442	$	-	$	-
U.S. corporate debt securities		11,014		11,014		-		-
Total marketable securities	$	87,456	$	87,456	$	-	$	-

	February 25, 2018
	Total		Level 1		Level 2		Level 3
U.S. Treasury and other government securities	$	78,361	$	78,361	$	-	$	-
U.S. corporate debt securities		11,616		11,616		-		-
Total marketable securities	$	89,977	$	89,977	$	-	$	-

The following table shows the amortized cost basis of, and gross unrealized gains and losses on, the Company’s available-for-sale securities:

	Amortized Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses
August 26, 2018:
U.S. Treasury and other government securities	$	78,086	$	-	$	1,644
U.S. corporate debt securities		11,042		-		28
Total marketable securities	$	89,128	$	-	$	1,672
February 25, 2018:
U.S. Treasury and other government securities	$	80,116	$	-	$	1,755
U.S. corporate debt securities		11,675		-		59
Total marketable securities	$	91,791	$	-	$	1,814

The estimated fair values of such securities at

August 26, 2018

by contractual maturity are shown below:

Due in one year or less	$	30,833
Due after one year through five years		56,623
	$	87,456

XML

Note 4 - Inventories

6 Months Ended

Aug. 26, 2018

Notes to Financial Statements

Inventory Disclosure [Text Block]

4

. 

INVENTORIES

Inventories from continuing operations are stated at the lower of cost (

first

-in,

first

-out method) or net realizable value. The Company writes down its inventory for estimated obsolescence or unmarketability based upon the age of the inventory and assumptions about future demand for the Company's products and market conditions.  Inventories from continuing operations consisted of the following:

	August 26,		February 25,
	2018		2018
Inventories:
Raw materials	$	2,570	$	2,824
Work-in-process		265		159
Finished goods		1,159		972
	$	3,994	$	3,955

XML

Note 5 - Long-term Debt

6 Months Ended

Aug. 26, 2018

Notes to Financial Statements

Debt Disclosure [Text Block]

5

. 

LONG-TERM DEBT

On

January 15, 2016,

the Company entered into a

three

-year revolving credit facility agreement (the “Credit Agreement”) with HSBC Bank USA, National Association (“HSBC Bank”). The Credit Agreement provided for loans up to

$75,000

and letters of credit up to

$2,000.

On

January 3, 2018,

in connection with the Company’s voluntary prepayment of the entire loan balance, the Company terminated the Credit Agreement. The prepayment was made with the Company’s cash and cash equivalents, marketable securities and restricted cash.

Interest expense recorded under the Credit Agreement was

$0

during the

13

-week and

26

-week periods ended

August 26, 2018

and

$603

and

$1,113

during the

13

-week and

26

-week periods ended

August 27, 2017,

respectively.

XML

Note 6 - Stock-based Compensation

6 Months Ended

Aug. 26, 2018

Notes to Financial Statements

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

6.

  STOCK-BASED COMPENSATION

As of

August 26, 2018,

the Company had a

2002

Stock Option Plan (the “Plan”), and

no

other stock-based compensation plan. The Plan was approved by the Company’s shareholders and provided for the grant of stock options to directors and key employees of the Company. All options granted under the Plan have exercise prices equal to the fair market value of the underlying common stock of the Company at the time of grant, which, pursuant to the terms of the Plan, is the reported closing price of the common stock on the New York Stock Exchange on the date preceding the date the option is granted. Options granted under the Plan become exercisable

25%

one

year after the date of grant, with an additional

25%

exercisable each succeeding anniversary of the date of grant, and expire

10

years after the date of grant.

During the

26

weeks ended

August 26, 2018,

the Company granted options to purchase a total of

2,650

shares of common stock to certain of its employees. The future compensation expense to be recognized in earnings before income taxes was

$10

and will be recorded on a straight-line basis over the requisite service period. The fair value of the granted options was

$3.66

per share using the Black-Scholes option pricing model with the following assumptions: risk-free interest rate of

2.83%;

expected volatility factor of

24.7%;

expected dividend yield of

2.32%;

and estimated option term of

5.2

years.

The risk-free interest rates were based on U.S. Treasury rates at the date of grant with maturity dates approximately equal to the estimated terms of the options at the date of the grant. Volatility factors were based on historical volatility of the Company’s common stock. The expected dividend yields were based on the regular quarterly cash dividend per share most recently declared by the Company and on the exercise price of the options granted during the

26

weeks ended

August 26, 2018.

The estimated term of the options was based on evaluations of the historical and expected future employee exercise behavior.

The Plan terminated on

May 21, 2018,

and authority to grant additional options under the Plan expired on that date. All options granted under the Plan will expire in

April 2028

or earlier. The Board of Directors of the Company has adopted a

2018

Stock Option Plan which was approved by the shareholders of the Company at the Annual Meeting of Shareholders of the Company on

July 24, 2018.

No

options have been granted under the

2018

Stock Option Plan.

The following is a summary of option activity for the

26

weeks ended

August 26, 2018:

	Outstanding Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)
Balance, February 25, 2018		885,554		$	17.55
Granted		2,650			17.75
Exercised		(35,537	)		17.55
Terminated or expired		(99,413	)		19.63
Balance, August 26, 2018		753,254		$	17.28		5.03
Vested and exercisable, August 26, 2018		628,548		$	18.01		4.66

XML

Note 7 - Earnings Per Share

6 Months Ended

Aug. 26, 2018

Notes to Financial Statements

Earnings Per Share [Text Block]

7

.     

EARNINGS PER SHARE

Basic earnings per share are computed by dividing net earnings by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share are computed by dividing net earnings by the sum of (a) the weighted average number of shares of common stock outstanding during the period and (b) the potentially dilutive securities outstanding during the period. Stock options are the only potentially dilutive securities that have been issued by the Company; and the number of dilutive options is computed using the treasury stock method.

The following table sets forth the calculation of basic and diluted earnings per share:

	13 Weeks Ended					26 Weeks Ended
	August 26, 2018		August 27, 2017			August 26, 2018		August 27, 2017
Net earnings - continuing operations	$	1,824	$	859		$	2,640	$	931
Net earnings - discontinued operations	$	876	$	(339	)	$	3,228	$	983
Net earnings	$	2,700	$	520		$	5,868	$	1,914
Weighted average common shares outstanding for basic EPS		20,253		20,236			20,248		20,236
Net effect of dilutive options		129		14			91		11
Weighted average shares outstanding for diluted EPS		20,382		20,250			20,339		20,247
Basic earnings per share - continuing operations		0.09		0.04			0.13		0.04
Basic earnings per share - discontinued operations		0.04		(0.01	)		0.16		0.05
Basic earnings per share	$	0.13	$	0.03		$	0.29	$	0.09
Diluted earnings per share - continuing operations		0.09		0.04			0.13		0.04
Diluted earnings per share - discontinued operations		0.04		(0.01	)		0.16		0.05
Diluted earnings per share	$	0.13	$	0.03		$	0.29	$	0.09

Potentially dilutive securities, which were

not

included in the computation of diluted earnings per share because either the effect would have been anti-dilutive or the options’ exercise prices were greater than the average market price of the common stock, were

146,000

and

713,000

for the

13

weeks ended

August 26, 2018

and

August 27, 2017,

respectively, and

345,000

and

793,000

for the

26

weeks ended

August 26, 2018

and

August 27, 2017,

respectively.

XML

Note 8 - Shareholders' Equity

6 Months Ended

Aug. 26, 2018

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

8

.

SHAREHOLDERS’ EQUITY

During the

26

weeks ended

August 26, 2018,

the Company sold

35,537

shares of the Company’s treasury stock pursuant to the exercises of employee stock options and received proceeds of

$624

 from such exercises. The Company recognized stock-based compensation expense, net of tax benefits, of

$400.

On

January 8, 2015,

the Company announced that its Board of Directors authorized the Company’s purchase, on the open market and in privately negotiated transactions, of up to

1,250,000

shares of its common stock, representing approximately

6%

of the Company’s

20,945,634

total outstanding shares as of the close of business on

January 7, 2015.

This authorization superseded all prior Board of Directors’ authorizations to purchase shares of the Company’s common stock.

On

March 10, 2016,

the Company announced that its Board of Directors authorized the Company’s purchase, on the open market and in privately negotiated transactions, of up to

1,000,000

additional shares of its common stock, in addition to the unused prior authorization to purchase shares of the Company’s common stock announced on

January 8, 2015.

As a result, the Company is authorized to purchase up to a total of

1,531,412

shares of its common stock, representing approximately

7.6%

of the Company’s

20,277,446

total outstanding shares as of the close of business on

October 4, 2018.

The Company did

not

purchase any shares of its common stock during the

26

weeks ended

August 26, 2018

or during the

26

weeks ended

August 27, 2017.

XML

Note 9 - Income Taxes

6 Months Ended

Aug. 26, 2018

Notes to Financial Statements

Income Tax Disclosure [Text Block]

9

.

INCOME TAXES

The Company’s effective tax rates for the

13

weeks and

26

weeks ended

August 26, 2018

were negative

31.6%

and negative

6.6%,

respectively, compared to

23.0%

and

23.2%,

respectively, for the

13

weeks and

26

weeks ended

August 27, 2017.

The negative effective tax rates were due to a tax benefit of

$788

related to clarifying regulations pertaining to the Tax Cuts and Job Act enacted in

December 2017.

The Company continuously evaluates the liquidity and capital requirements of its operations in the United States and of its foreign operations. As a result of such evaluations, the Company repatriated

$6,250,

$135,300

and

$6,800

in cash from the Company’s subsidiary in Singapore in the

2019,

2018

and

2017

fiscal years, respectively.

XML

Note 10 - Discontinued Operations

6 Months Ended

Aug. 26, 2018

Notes to Financial Statements

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

1

0

. 

DISCONTINUED OPERATIONS

On

July 25, 2018,

the Company entered into a definitive agreement to sell its Electronics Business for

$145,000

in cash.  The Company expects this transaction to be completed in the

fourth

quarter of the

2019

fiscal year.

The Company has classified the operating results of its Electronics Business, together with certain costs related to the transaction, as discontinued operations, net of tax, in the Consolidated Statement of Operations.

The following table shows the summary operating results of the discontinued operations:

	13 Weeks Ended (Unaudited)					26 Weeks Ended (Unaudited)
	August 26,		August 27,			August 26,		August 27,
	2018		2017			2018		2017
Net sales	$	17,843	$	18,481		$	38,552	$	37,172
Cost of sales		13,884		14,512			28,937		29,178
Gross profit		3,959		3,969			9,615		7,994
Selling, general and administrative expenses		2,448		2,203			5,046		4,115
Restructuring charges		454		2,902			757		4,638
Earnings (loss) from discontinued operations before income taxes		1,057		(1,136	)		3,812		(759	)
Income tax (benefit) provision		181		(797	)		584		(1,742	)
Net earnings (loss) from discontinued operations	$	876	$	(339	)	$	3,228	$	983

The following table shows the summary assets and liabilities of the discontinued operations:

	August 26, 2018		February 25, 2018*
	(unaudited)
Carrying Amount of Major Classes of Assets Included as Part of Discontinued Operations:
Accounts Receivable, Net	$	13,081	$	12,801
Inventories		8,717		7,201
Fixed Assets, Net		6,190		6,727
Prepaid Expenses and Other Current Assets		826		646
Total Major Assets Included as Part of Discontinued Operations		28,814		27,375
Other Assets		5,216		5,072
Total Assets Included as Part of Discontinued Operations	$	34,030	$	32,447
Carrying Amount of Major Classes of Liabilities Included as Part of Discontinued Operations:
Accounts Payable	$	2,736	$	2,200
Accrued Liabilities		4,200		4,360
Deferred Income Taxes		618		618
Income Taxes Payable		1,234		1,364
Total Major Liabilities Included as Part of Discontinued Operations		8,788		8,542
Other Liabilities		228		229
Total Liabilities Included as Part of Discontinued Operations	$	9,016	$	8,771

* These amounts have not been audited, but are derived from the audited financial statements.

During the

2018

fiscal year, the Company consolidated its Nelco Products, Inc. Business Unit located in Fullerton, California and its Neltec, Inc. Business Unit located in Tempe, Arizona. The Company estimates the remaining pre-tax charge in connection with the consolidation to be approximately

$1,020,

which the Company expects to incur primarily during the fiscal year ending

February 28, 2021.

The restructuring expenses were

$117

and

$169

 during the

13

-week and

26

-week periods ended

August 26, 2018,

respectively, and

$2,813

and

$4,063

during the

13

-week and

26

-week periods ended

August 27, 2017,

respectively.

The following table sets forth the charges and accruals related to the consolidation:

	Accrual May 27, 2018		Current Period Charges		Cash Payments			Non-Cash Charges		Accrual August 26, 2018		Total Expense Accrued to Date		Total Expected Costs
Facility Lease Costs	$	1,965	$	51	$	(181	)	$	-	$	1,835	$	2,800	$	2,800
Severance Costs		-		-		-			-		-		1,081		1,081
Equipment Removal		-		-		-			-		-		-		700
Other		-		66		(66	)		-		-		717		919
Total Restructuring Charges	$	1,965	$	117	$	(247	)	$	-	$	1,835	$	4,598	$	5,500

The Company recorded additional restructuring charges of

$77

and

$208

during the

13

-week and

26

-week periods ended

August 26, 2018,

respectively, and

$89

and

$200

during the

13

-week and

26

-week periods ended

August 27, 2017,

respectively, related to the closure in the

2009

fiscal year of the Company’s New England Laminates Co., Inc. Business Unit located in Newburgh, New York. The New England Laminates Co., Inc. building in Newburgh, New York is held for sale. In the

2004

fiscal year, the Company reduced the book value of the building to zero, and the Company intends to sell it during the

2019

fiscal year.

XML

Note 11 - Contingencies

6 Months Ended

Aug. 26, 2018

Notes to Financial Statements

Contingencies Disclosure [Text Block]

1

1

.

CONTINGENCIES

Litigation

 

The Company is subject to a number of proceedings, lawsuits and other claims related to environmental, employment, product and other matters. The Company is required to assess the likelihood of any adverse judgments or outcomes in these matters as well as potential ranges of probable losses. A determination of the amount of reserves required, if any, for these contingencies is made after careful analysis of each individual issue. The required reserves

may

change in the future due to new developments in each matter or changes in approach, such as a change in settlement strategy in dealing with these matters. The Company believes that the ultimate disposition of such proceedings, lawsuits and claims will

not

have a material adverse effect on the Company’s liquidity, capital resources or business or its consolidated results of operations, cash flows or financial position.

Environmental Contingencies

The Company and certain of its subsidiaries have been named by the Environmental Protection Agency (the “EPA”) or a comparable state agency under the Comprehensive Environmental Response, Compensation and Liability Act (the “Superfund Act”) or similar state law as potentially responsible parties in connection with alleged releases of hazardous substances at

three

sites.

Under the Superfund Act and similar state laws, all parties who

may

have contributed any waste to a hazardous waste disposal site or contaminated area identified by the EPA or comparable state agency

may

be jointly and severally liable for the cost of cleanup. Generally, these sites are locations at which numerous persons disposed of hazardous waste. In the case of the Company’s subsidiaries, generally the waste was removed from their manufacturing facilities and disposed at waste sites by various companies which contracted with the subsidiaries to provide waste disposal services. Neither the Company nor any of its subsidiaries have been accused of or charged with any wrongdoing or illegal acts in connection with any such sites. The Company believes it maintains an effective and comprehensive environmental compliance program.

The insurance carriers which provided general liability insurance coverage to the Company and its subsidiaries for the years during which the Company’s subsidiaries’ waste was disposed at these sites have in the past reimbursed the Company and its subsidiaries for

100%

of their legal defense and remediation costs associated with

two

of these sites.

The Company does

not

record environmental liabilities and related legal expenses for which the Company believes that it and its subsidiaries have general liability insurance coverage for the years during which the Company’s subsidiaries’ waste was disposed at

two

sites for which certain subsidiaries of the Company have been named as potentially responsible parties. Pursuant to such general liability insurance coverage,

three

insurance carriers reimburse the Company and its subsidiaries for

100%

of the legal defense and remediation costs associated with the

two

sites.

Included in selling, general and administrative expenses are charges for actual expenditures and accruals, based on estimates, for certain environmental matters described above. The Company accrues estimated costs associated with known environmental matters, when such costs can be reasonably estimated and when the outcome appears probable. The Company believes that the ultimate disposition of known environmental matters will

not

have a material adverse effect on the Company’s results of operations, cash flows or financial position.

XML

Note 12 - Accounting Pronouncements

6 Months Ended

Aug. 26, 2018

Notes to Financial Statements

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

1

2

. 

A

CCOUNT

I

NG

P

RONOUNCEMENTS

Recently

Adopted

In

November 2016,

the FASB issued Accounting Standards Update (“ASU”)

No.

2016

-

18,

Statement of Cash Flows (Topic

230

): Restricted Cash

, to reduce the diversity that exists in the classification and presentation of changes in restricted cash in the statement of cash flows. The new standard is effective for fiscal years beginning after

December 15, 2017

and the interim periods within those fiscal years. The Company has adopted the guidance effective

February 26, 2018,

the

first

day of the

2019

fiscal year, and the adoption of this guidance did

not

impact its consolidated results of operations, cash flows, financial position or disclosures.

In

August 2016,

the FASB issued ASU

No.

2016

-

15,

Statement of Cash Flows (Topic

230

)

:

Classification of Certain Cash Receipts and Cash Payments

, to reduce the diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The new standard is effective for fiscal years beginning after

December 15, 2017

and the interim periods within those fiscal years. The Company has adopted the guidance effective

February 26, 2018,

the

first

day of the

2019

fiscal year, and the adoption of this guidance did

not

impact its consolidated results of operations, cash flows, financial position or disclosures.

In

January 2016,

the FASB issued ASU

No.

2016

-

01,

Financial Instruments Overall (Subtopic

825

-

10

): Recognition and Measurement of Financial Assets and Financial Liabilities,

intended to improve the recognition and measurement of financial instruments, effective for public business entities for fiscal years beginning after

December 15, 2017, 

and the interim periods within those fiscal years.  The Company has adopted the guidance effective

February 26, 2018,

the

first

day of the

2019

fiscal year, and the adoption of this guidance did

not

impact its consolidated results of operations, cash flows, financial position or disclosures.

In

May 2014,

the FASB issued Accounting Standards Codification Topic

606,

Revenue from Contracts with Customers

, which supersedes the revenue recognition requirements in ASC Topic

605,

Revenue Recognition

, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. This guidance requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services, and expands the related disclosure requirements. The new standard was originally scheduled to be effective for fiscal years beginning after

December 15, 2016,

including interim reporting periods within those fiscal years. In

August 2015,

the FASB delayed the effective date of this guidance for

one

year. With the delay, the new standard is effective for fiscal years beginning after

December 15, 2017 

and interim periods within those fiscal years, with an option to adopt the standard on the originally scheduled effective date. The Company has adopted the guidance effective

February 26, 2018,

the

first

day of the

2019

fiscal year, and the adoption of this guidance did

not

impact its consolidated results of operations, cash flows, financial position or disclosures.

Recently Issued

In

February 2016,

the FASB issued ASU

No.

2016

-

02,

Leases (Topic

842

)

, intended to increase transparency and comparability among companies by requiring most leases to be included on the balance sheet and by expanding disclosure requirements, effective for public business entities for fiscal years beginning after

December 15, 2018 and 

interim periods within those fiscal years (

i.e.

,

January 1, 2019,

for a calendar year entity). Early application is permitted for all public business entities and all nonpublic business entities upon issuance. The Company is currently evaluating the impact that this new guidance

may

have on its consolidated results of operations, cash flows, financial position and disclosures.

XML

Note 3 - Marketable Securities (Tables)

6 Months Ended

Aug. 26, 2018

Notes Tables

Schedule of Fair Value of Separate Accounts by Major Category of Investment [Table Text Block]

	August 26, 2018
	Total		Level 1		Level 2		Level 3
U.S. Treasury and other government securities	$	76,442	$	76,442	$	-	$	-
U.S. corporate debt securities		11,014		11,014		-		-
Total marketable securities	$	87,456	$	87,456	$	-	$	-

	February 25, 2018
	Total		Level 1		Level 2		Level 3
U.S. Treasury and other government securities	$	78,361	$	78,361	$	-	$	-
U.S. corporate debt securities		11,616		11,616		-		-
Total marketable securities	$	89,977	$	89,977	$	-	$	-

Schedule of Unrealized Loss on Investments [Table Text Block]

	Amortized Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses
August 26, 2018:
U.S. Treasury and other government securities	$	78,086	$	-	$	1,644
U.S. corporate debt securities		11,042		-		28
Total marketable securities	$	89,128	$	-	$	1,672
February 25, 2018:
U.S. Treasury and other government securities	$	80,116	$	-	$	1,755
U.S. corporate debt securities		11,675		-		59
Total marketable securities	$	91,791	$	-	$	1,814

Investments Classified by Contractual Maturity Date [Table Text Block]

Due in one year or less	$	30,833
Due after one year through five years		56,623
	$	87,456

XML

Note 4 - Inventories (Tables)

6 Months Ended

Aug. 26, 2018

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	August 26,		February 25,
	2018		2018
Inventories:
Raw materials	$	2,570	$	2,824
Work-in-process		265		159
Finished goods		1,159		972
	$	3,994	$	3,955

XML

Note 6 - Stock-based Compensation (Tables)

6 Months Ended

Aug. 26, 2018

Notes Tables

Share-based Compensation, Stock Options, Activity [Table Text Block]

	Outstanding Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)
Balance, February 25, 2018		885,554		$	17.55
Granted		2,650			17.75
Exercised		(35,537	)		17.55
Terminated or expired		(99,413	)		19.63
Balance, August 26, 2018		753,254		$	17.28		5.03
Vested and exercisable, August 26, 2018		628,548		$	18.01		4.66

XML

Note 7 - Earnings Per Share (Tables)

6 Months Ended

Aug. 26, 2018

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	13 Weeks Ended					26 Weeks Ended
	August 26, 2018		August 27, 2017			August 26, 2018		August 27, 2017
Net earnings - continuing operations	$	1,824	$	859		$	2,640	$	931
Net earnings - discontinued operations	$	876	$	(339	)	$	3,228	$	983
Net earnings	$	2,700	$	520		$	5,868	$	1,914
Weighted average common shares outstanding for basic EPS		20,253		20,236			20,248		20,236
Net effect of dilutive options		129		14			91		11
Weighted average shares outstanding for diluted EPS		20,382		20,250			20,339		20,247
Basic earnings per share - continuing operations		0.09		0.04			0.13		0.04
Basic earnings per share - discontinued operations		0.04		(0.01	)		0.16		0.05
Basic earnings per share	$	0.13	$	0.03		$	0.29	$	0.09
Diluted earnings per share - continuing operations		0.09		0.04			0.13		0.04
Diluted earnings per share - discontinued operations		0.04		(0.01	)		0.16		0.05
Diluted earnings per share	$	0.13	$	0.03		$	0.29	$	0.09

XML

Note 10 - Discontinued Operations (Tables)

6 Months Ended

Aug. 26, 2018

Notes Tables

Disposal Groups, Including Discontinued Operations [Table Text Block]

	13 Weeks Ended (Unaudited)					26 Weeks Ended (Unaudited)
	August 26,		August 27,			August 26,		August 27,
	2018		2017			2018		2017
Net sales	$	17,843	$	18,481		$	38,552	$	37,172
Cost of sales		13,884		14,512			28,937		29,178
Gross profit		3,959		3,969			9,615		7,994
Selling, general and administrative expenses		2,448		2,203			5,046		4,115
Restructuring charges		454		2,902			757		4,638
Earnings (loss) from discontinued operations before income taxes		1,057		(1,136	)		3,812		(759	)
Income tax (benefit) provision		181		(797	)		584		(1,742	)
Net earnings (loss) from discontinued operations	$	876	$	(339	)	$	3,228	$	983

	August 26, 2018		February 25, 2018*
	(unaudited)
Carrying Amount of Major Classes of Assets Included as Part of Discontinued Operations:
Accounts Receivable, Net	$	13,081	$	12,801
Inventories		8,717		7,201
Fixed Assets, Net		6,190		6,727
Prepaid Expenses and Other Current Assets		826		646
Total Major Assets Included as Part of Discontinued Operations		28,814		27,375
Other Assets		5,216		5,072
Total Assets Included as Part of Discontinued Operations	$	34,030	$	32,447
Carrying Amount of Major Classes of Liabilities Included as Part of Discontinued Operations:
Accounts Payable	$	2,736	$	2,200
Accrued Liabilities		4,200		4,360
Deferred Income Taxes		618		618
Income Taxes Payable		1,234		1,364
Total Major Liabilities Included as Part of Discontinued Operations		8,788		8,542
Other Liabilities		228		229
Total Liabilities Included as Part of Discontinued Operations	$	9,016	$	8,771

* These amounts have not been audited, but are derived from the audited financial statements.

Restructuring and Related Costs [Table Text Block]

	Accrual May 27, 2018		Current Period Charges		Cash Payments			Non-Cash Charges		Accrual August 26, 2018		Total Expense Accrued to Date		Total Expected Costs
Facility Lease Costs	$	1,965	$	51	$	(181	)	$	-	$	1,835	$	2,800	$	2,800
Severance Costs		-		-		-			-		-		1,081		1,081
Equipment Removal		-		-		-			-		-		-		700
Other		-		66		(66	)		-		-		717		919
Total Restructuring Charges	$	1,965	$	117	$	(247	)	$	-	$	1,835	$	4,598	$	5,500

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Note 1 - Consolidated Financial Statements (Details Textual) $ in Millions	Jul. 25, 2018 USD ($)
Electronics Business [Member] | Discontinued Operations, Held-for-sale [Member]
Disposal Group, Including Discontinued Operation, Consideration	$ 145

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Note 3 - Marketable Securities - Summary of Available-for-sale Securities (Details) - USD ($) $ in Thousands	Aug. 26, 2018	Feb. 25, 2018
Available-for-sale securities	$ 87,456	$ 89,977
Fair Value, Inputs, Level 1 [Member]
Available-for-sale securities	87,456	89,977
Fair Value, Inputs, Level 2 [Member]
Available-for-sale securities
Fair Value, Inputs, Level 3 [Member]
Available-for-sale securities
US Treasury and Government [Member]
Available-for-sale securities	76,442	78,361
US Treasury and Government [Member] | Fair Value, Inputs, Level 1 [Member]
Available-for-sale securities	76,442	78,361
US Treasury and Government [Member] | Fair Value, Inputs, Level 2 [Member]
Available-for-sale securities
US Treasury and Government [Member] | Fair Value, Inputs, Level 3 [Member]
Available-for-sale securities
Debt Security, Corporate, US [Member]
Available-for-sale securities	11,014	11,616
Debt Security, Corporate, US [Member] | Fair Value, Inputs, Level 1 [Member]
Available-for-sale securities	11,014	11,616
Debt Security, Corporate, US [Member] | Fair Value, Inputs, Level 2 [Member]
Available-for-sale securities
Debt Security, Corporate, US [Member] | Fair Value, Inputs, Level 3 [Member]
Available-for-sale securities

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Note 3 - Marketable Securities - Summary of Unrealized Gains and Losses on Available-for-sale Securities (Details) - USD ($) $ in Thousands	Aug. 26, 2018	Feb. 25, 2018
Amortized cost basis	$ 89,128	$ 91,791
Gross unrealized gains
Gross unrealized losses	1,672	1,814
US Treasury and Government [Member]
Amortized cost basis	78,086	80,116
Gross unrealized gains
Gross unrealized losses	1,644	1,755
Debt Security, Corporate, US [Member]
Amortized cost basis	11,042	11,675
Gross unrealized gains
Gross unrealized losses	$ 28	$ 59

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Note 3 - Marketable Securities - Estimated Fair Value of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Aug. 26, 2018	Feb. 25, 2018
Due in one year or less	$ 30,833
Due after one year through five years	56,623
	$ 87,456	$ 89,977

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Note 4 - Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands	Aug. 26, 2018	Feb. 25, 2018
Inventories:
Raw materials	$ 2,570	$ 2,824
Work-in-process	265	159
Finished goods	1,159	972
	$ 3,994	$ 3,955	[1]

[1] The balance sheet at February 25, 2018 has been derived from the audited financial statements at that date.

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Note 5 - Long-term Debt (Details Textual) - USD ($)		3 Months Ended		6 Months Ended
	Jan. 15, 2016	Aug. 26, 2018	Aug. 27, 2017	Aug. 26, 2018	Aug. 27, 2017
Interest Expense, Total		$ 0	$ 603,000	$ 0	$ 1,113,000
HSBC Bank USA [Member] | Letter of Credit [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 2,000,000
HSBC Bank USA [Member] | Revolving Credit Facility [Member]
Debt Instrument, Term	3 years
Line of Credit Facility, Maximum Borrowing Capacity	$ 75,000,000

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Note 6 - Stock-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Aug. 26, 2018	Aug. 26, 2018	May 27, 2018	Aug. 26, 2018
Percentage of Stock Options, Exercisable One Year From Date of Grant		25.00%
Percentage of Stock Options Exercisable On Each Succeeding Year from Date of Grant		25.00%
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period		10 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			2,650	2,650
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options	$ 10	$ 10		$ 10
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value				$ 3.66
2018 Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	0
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate				2.83%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate				24.70%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate				2.32%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term				5 years 73 days

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Note 6 - Stock-based Compensation - Option Activity (Details) - $ / shares	3 Months Ended	6 Months Ended
	May 27, 2018	Aug. 26, 2018
Outstanding options (in shares)	885,554	885,554
Balance, weighted average exercise price (in dollars per share)	$ 17.55	$ 17.55
Outstanding options, granted (in shares)	2,650	2,650
Granted, weighted average exercise price (in dollars per share)	$ 17.75
Outstanding options, exercised (in shares)	(35,537)	(35,537)
Exercised, weighted average exercise price (in dollars per share)	$ 17.55
Outstanding options, terminated or expired (in shares)	(99,413)
Terminated or expired, weighted average exercise price (in dollars per share)	$ 19.63
Outstanding options (in shares)	753,254
Balance, weighted average exercise price (in dollars per share)	$ 17.28
Balance, weighted average remaining contractual term (Year)	5 years 10 days
Vested and exercisable (in shares)	628,548
Vested and exercisable, weighted average exercise price (in dollars per share)	$ 18.01
Vested and exercisable, weighted average remaining contractual term (Year)	4 years 240 days

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Note 7 - Earnings Per Share (Details Textual) - shares	3 Months Ended		6 Months Ended
	Aug. 26, 2018	Aug. 27, 2017	Aug. 26, 2018	Aug. 27, 2017
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	146,000	713,000	345,000	793,000

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Note 7 - Earnings Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 26, 2018	Aug. 27, 2017	Aug. 26, 2018	Aug. 27, 2017
Net earnings - continuing operations	$ 1,824	$ 859	$ 2,640	$ 931
Net earnings - discontinued operations	876	(339)	3,228	983
Net earnings	$ 2,700	$ 520	$ 5,868	$ 1,914
Weighted average common shares outstanding for basic EPS (in shares)	20,253	20,236	20,248	20,236
Net effect of dilutive options (in shares)	129	14	91	11
Weighted average shares outstanding for diluted EPS (in shares)	20,382	20,250	20,339	20,247
Basic earnings per share - continuing operations (in dollars per share)	$ 0.09	$ 0.04	$ 0.13	$ 0.04
Basic earnings per share - discontinued operations (in dollars per share)	0.04	(0.01)	0.16	0.05
Basic earnings per share (in dollars per share)	0.13	0.03	0.29	0.09
Diluted earnings per share - continuing operations (in dollars per share)	0.09	0.04	0.13	0.04
Diluted earnings per share - discontinued operations (in dollars per share)	0.04	(0.01)	0.16	0.05
Diluted earnings per share (in dollars per share)	$ 0.13	$ 0.03	$ 0.29	$ 0.09

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Note 8 - Shareholders' Equity (Details Textual) - USD ($) $ in Thousands		3 Months Ended	6 Months Ended
	Mar. 10, 2016	May 27, 2018	Aug. 26, 2018	Aug. 27, 2017	Oct. 04, 2017	Jan. 08, 2015	Jan. 07, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		35,537	35,537
Proceeds from Sale of Treasury Stock, Stock Options Exercised			$ 624
Stock Repurchase Program, Number of Shares Authorized to be Repurchased						1,250,000
Stock Repurchase Program, Percentage of Outstanding Shares Authorized to be Repurchased					7.60%		6.00%
Common Stock, Shares, Outstanding, Ending Balance					20,277,446		20,945,634
Stock Repurchase Program, Number of Additional Shares Authorized to be Repurchased	1,000,000
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased					1,531,412
Stock Repurchased During Period, Shares			0	0
Employee Stock Option [Member]
Allocated Share-based Compensation Expense, Net of Tax			$ 400

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Note 9 - Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Aug. 26, 2018	Aug. 27, 2017	Aug. 26, 2018	Aug. 27, 2017	Feb. 25, 2018	Feb. 26, 2017	Feb. 28, 2016
Effective Income Tax Rate Reconciliation, Percent, Total	(31.60%)	23.00%	(6.60%)	23.20%
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount			$ (788)
Foreign Earnings Repatriated			$ 6,250		$ 135,300	$ 6,800	$ 2,019

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Note 10 - Discontinued Operations (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 26, 2018	Aug. 27, 2017	Aug. 26, 2018	Aug. 27, 2017	Jul. 25, 2018	May 27, 2018
Consolidation of Nelco Products, Inc. and Neltec, Inc. [Member]
Restructuring and Related Cost, Expected Cost Remaining						$ 1,020
Restructuring Charges, Total	$ 117	$ 2,813	$ 169	$ 4,063
Consolidation of Nelco Products, Inc. and Neltec, Inc. [Member] | Facility Closing [Member]
Restructuring Charges, Total	$ 77	$ 89	$ 208	$ 200
Electronics Business [Member] | Discontinued Operations, Held-for-sale [Member]
Disposal Group, Including Discontinued Operation, Consideration					$ 145,000

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Note 10 - Discontinued Operations - Summary for Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 26, 2018	Aug. 27, 2017	Aug. 26, 2018	Aug. 27, 2017	Feb. 25, 2018
Net earnings (loss) from discontinued operations	$ 876	$ (339)	$ 3,228	$ 983
Electronics Business [Member] | Discontinued Operations, Held-for-sale [Member]
Net sales	17,843	18,481	38,552	37,172
Cost of sales	13,884	14,512	28,937	29,178
Gross profit	3,959	3,969	9,615	7,994
Selling, general and administrative expenses	2,448	2,203	5,046	4,115
Restructuring charges	454	2,902	757	4,638
Earnings (loss) from discontinued operations before income taxes	1,057	(1,136)	3,812	(759)
Income tax (benefit) provision	181	(797)	584	(1,742)
Net earnings (loss) from discontinued operations	876	$ (339)	3,228	$ 983
Accounts Receivable, Net	13,081		13,081		$ 12,801
Inventories	8,717		8,717		7,201
Fixed Assets, Net	6,190		6,190		6,727
Prepaid Expenses and Other Current Assets	826		826		646
Total Major Assets Included as Part of Discontinued Operations	28,814		28,814		27,375
Other Assets	5,216		5,216		5,072
Total Assets Included as Part of Discontinued Operations	34,030		34,030		32,447
Accounts Payable	2,736		2,736		2,200
Accrued Liabilities	4,200		4,200		4,360
Deferred Income Taxes	618		618		618
Income Taxes Payable	1,234		1,234		1,364
Total Major Liabilities Included as Part of Discontinued Operations	8,788		8,788		8,542
Other Liabilities	228		228		229
Total Liabilities Included as Part of Discontinued Operations	$ 9,016		$ 9,016		$ 8,771

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Note 10 - Discontinued Operations - Restructuring Charges (Details) - Consolidation of Nelco Products, Inc. and Neltec, Inc. [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 26, 2018	Aug. 27, 2017	Aug. 26, 2018	Aug. 27, 2017
Accrued, Beginning Balance	$ 1,965
Current Period Charges	117	$ 2,813	$ 169	$ 4,063
Cash Payments	(247)
Non-Cash Charges
Accrued, Ending Balance	1,835		1,835
Total Costs Accrued to Date	4,598		4,598
Total Expected Costs	5,500		5,500
Facility Lease Costs [Member]
Accrued, Beginning Balance	1,965
Current Period Charges	51
Cash Payments	(181)
Non-Cash Charges
Accrued, Ending Balance	1,835		1,835
Total Costs Accrued to Date	2,800		2,800
Total Expected Costs	2,800		2,800
Employee Severance [Member]
Accrued, Beginning Balance
Current Period Charges
Cash Payments
Non-Cash Charges
Accrued, Ending Balance
Total Costs Accrued to Date	1,081		1,081
Total Expected Costs	1,081		1,081
Equipment Removal [Member]
Accrued, Beginning Balance
Current Period Charges
Cash Payments
Non-Cash Charges
Accrued, Ending Balance
Total Costs Accrued to Date
Total Expected Costs	700		700
Other Restructuring [Member]
Accrued, Beginning Balance
Current Period Charges	66
Cash Payments	(66)
Non-Cash Charges
Accrued, Ending Balance
Total Costs Accrued to Date	717		717
Total Expected Costs	$ 919		$ 919

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Note 11 - Contingencies (Details Textual) $ in Thousands	3 Months Ended	6 Months Ended
	Aug. 26, 2018 USD ($)	Aug. 26, 2018	Aug. 27, 2017 USD ($)
Number of Sites of Company or Subsidiaries That Have Been Named for Potential Environmental Remediation Liability		3
Percentage of Legal Defense and Remediation Costs Associated with Sites Reimbursed by Insurance Carriers		100.00%
Number of Units Covered Under General Liability Insurance Coverage		2
Environmental Remediation Expense	$ 0
Accrual for Environmental Loss Contingencies, Ending Balance			$ 0