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Note 14 - Severance Costs
6 Months Ended
Dec. 31, 2014
Disclosure Text Block Supplement [Abstract]  
Compensation and Employee Benefit Plans [Text Block]

NOTE 14 – SEVERANCE COSTS


Pursuant to a management succession agreement entered into in fiscal 2004 as subsequently amended, the Company’s former Chief Executive Officer, Robert J. Ready, relinquished this title and related management responsibilities when the Company hired and appointed a new Chief Executive Officer in October 2014. While Mr. Ready remains on the Company’s Board of Directors, he is no longer Chairman of the Board. This agreement provides for 18 months of compensation to be paid to Mr. Ready, which resulted in a severance charge in the second quarter of fiscal 2015 of $800,000. Severance payments totaling $154,000 were made in the second quarter of fiscal 2015, leaving a severance liability of $646,000 as of December 31, 2014.


In January 2015, the Company initiated a reduction in force and expects to record estimated severance charges of $543,000 and facility exit charges of $33,000 in the third quarter of fiscal 2015. This reduction in force and employee retirements that occurred early in the third quarter of fiscal 2015 represent approximately 8.3% of the Company’s total salaried workforce and approximately $3.7 million of annual total compensation and benefit reductions.