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Significant Accounting Policies (Policies)
 9 Months Ended
Mar. 31, 2019
Accounting Policies [Abstract]  
Consolidation, Policy [Policy Text Block]
Consolidation:
 
A summary of the Company’s significant accounting policies is included in Note
1
to the audited consolidated financial statements of the Company’s fiscal
2018
Annual Report on Form
10
-K. Significant changes to our accounting policies as a result of adopting ASU-
2014
-
09
“Revenue from Contracts with Customers” (Topic
606
) are discussed below.
Revenue from Contract with Customer [Policy Text Block]
Revenue Recognition:
 
The Company recognizes revenue when it satisfies the performance obligation in its customer contracts or purchase orders. Most of the Company’s products have a single performance obligation which is satisfied at a point in time when control is transferred to the customer. Control is generally transferred at time of shipment when title and risk of ownership passes to the customer. For customer contracts with multiple performance obligations, the Company allocates the transaction price and any discounts to each performance obligation based on relative standalone selling prices. Payment terms are typically within
30
to
90
days from the shipping date, depending on our terms with the customer. The Company offers standard warranties that do
not
represent separate performance obligations.
 
Installation is a separate performance obligation, except for our digital signage products. For digital signage products, installation is
not
a separate performance obligation as the product and installation is the combined item promised in digital signage contracts. The Company is
not
always responsible for installation of products it sells and has
no
post-installation responsibilities other than standard warranties.
 
A number of the Company's products are highly customized. As a result, these customized products do
not
have an alternative use. For these products, the Company has a legal right to payment for performance to date and generally does
not
accept returns on these items. The measurement of performance is based upon cost plus a reasonable profit margin for work completed. Because there is
no
alternative use and there is a legal right to payment, the Company transfers control of the item as the item is being produced and therefore, recognizes revenue over time. The customized product types are as follows:
 
 
●
Customer specific branded print graphics
 
●
Electrical components based on customer specifications
 
●
Digital signage and related media content
 
The Company also offers installation services. Installation revenue is recognized over time as our customer simultaneously receives and consumes the benefits provided through the installation process.
 
For these customized products and installation services, revenue is recognized using a cost-based input method: recognizing revenue and gross profit as work is performed based on the relationship between the actual cost incurred and the total estimated cost for the contract.
 
Disaggregation of Revenue
 
The Company disaggregates the revenue from contracts with customers by the timing of revenue recognition because the Company believes it best depicts the nature, amount, and timing of our revenue and cash flows. The table presents a reconciliation of the disaggregation by reportable segments.
 
   
Three Months Ended
    
Nine Months Ended
  
(
In thousands)
  
March 31, 2019
    
March 31, 2019
  
   
Lighting
Segment
    
Graphics
Segment
    
Lighting
Segment
    
Graphics
Segment
  
Timing of revenue recognition
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Products and services transferred at a point in time
   $
46,364
     $
10,339
     $
157,931
     $
42,790
  
Products and services transferred over time
    
6,421
      
9,708
      
19,940
      
26,669
  
    $
52,785
     $
20,047
     $
177,871
     $
69,459
  
                                 
Type of Product and Services
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Current technology products
   $
46,195
     $
4,427
     $
153,771
     $
9,178
  
Legacy products
    
6,133
      
11,160
      
22,156
      
45,346
  
Turnkey services and other
    
457
      
4,460
      
1,944
      
14,935
  
    $
52,785
     $
20,047
     $
177,871
     $
69,459
  
 
New technology products include LED lighting and controls, electronic circuit boards, and digital signage solutions. Legacy products include lighting fixtures utilizing light sources other than LED technology and printed
two
and
three
dimensional graphic products. Turnkey services and other includes installation services along with shipping and handling charges.
 
Practical Expedients and Exemptions
 
 
●
The Company’s contracts with customers have an expected duration of
one
year or less, as such the Company applies the practical expedient to expense sales commissions as incurred, and have omitted disclosures on the amount of remaining performance obligations.
 
●
Shipping costs that are
not
material in context of the delivery of products are expensed as incurred.
 
●
The Company’s accounts receivable balance represents the Company’s unconditional right to receive payment from its customers with contracts. Payments are generally due within
30
to
90
days of completion of the performance obligation and invoicing, therefore, payments do
not
contain significant financing components.
 
●
The Company collects sales tax and other taxes concurrent with revenue-producing activities which are excluded from revenue. Shipping and handling costs are treated as fulfillment activities and included in cost of products and services sold on the Consolidated Statements of Operations.
Foreign Currency Transactions and Translations Policy [Policy Text Block]
Foreign
Exchange
:
 
Assets and liabilities of foreign operations are translated using period end exchange rates. Revenue and expenses are translated using average exchange rates during each period reported.
New Accounting Pronouncements, Policy [Policy Text Block]
New Accounting Pronouncements:
 
On
July 1, 2018,
the Company adopted ASU
2014
-
09.
“Revenue from Contracts with Customers,” (Topic
606
) using the modified retrospective adoption method which requires a cumulative effect adjustment to the opening balance of retained earnings. This approach was applied to contracts that were
not
completed as of
June 30, 2018.
Results for reporting periods beginning
July 1, 2018
are presented under Topic
606,
while prior period amounts are
not
adjusted and continue to be reported under the accounting standards in effect for the prior period. The Company recorded a net increase to beginning retained earnings of
$591,000
on
July 1, 2018
due to the cumulative impact of adopting Topic
606,
as described below.
 
(
In thousands)
  
Balance as of
June 30, 2018
    
Adjustments
    
Opening Balance as
of July 1, 2018
  
Assets:
                        
Accounts receivable, net
   $
50,609
     $
4,935
     $
55,544
  
Inventories, net
   $
50,994
     $
(4,167
)
   $
46,827
  
Other long-term assets, net
   $
9,786
     $
(177
)
   $
9,609
  
Shareholders' Equity:
  
 
 
 
  
 
 
 
  
 
 
 
Retained earnings
   $
15,124
     $
591
     $
15,715
  
 
In
February 2016,
the Financial Accounting Standards Board issued ASU
2016
-
02,
“Leases.” The amended guidance requires an entity to recognize assets and liabilities that arise from leases. The amended guidance is effective for financial statements issued for fiscal years and interim periods within those years, beginning after
December 15, 2018,
or the Company’s fiscal year
2020,
with early adoption permitted. The Company has an implementation team tasked with reviewing our lease obligations and determining the impact of the new standard to its financial statements. The Company will continue to evaluate the new standard’s impact to its financial statements.  
Subsequent Events, Policy [Policy Text Block]
Subsequent Events:
 
The Company has evaluated subsequent events for potential recognition and disclosure through the date the consolidated financial statements were filed.
No
items were identified during this evaluation that required adjustment to or disclosure in the accompanying financial statements other than noted below.
 
In
April 2019,
the Company announced that it entered into a definitive agreement to sell its manufacturing facility in New Windsor, New York. Under the terms of the agreement, the Company will receive approximately
$12
million of gross proceeds related to the sale and expects to report a gain between
$3
million to
$5.5
million. The transaction is expected to close on or before
June 30, 2019
subject to the final approval from the New Windsor town officials.
 
On
April 9, 2019,
Howard E. Japlon, Executive Vice President, Human Resources & General Counsel of LSI, notified LSI of his resignation from his position with LSI to pursue opportunities in the Chicago, Illinois area. Also, effective
April 12, 2019
Jeffrey Croskey, Chief Commercial Officer, resigned from his position with LSI to pursue other opportunities.
Reclassification, Policy [Policy Text Block]
Reclassifications:
 
Certain prior year amounts have been reclassified to conform to the current year presentation within the cash flows from operating activities section and cash flows from financing activities section of the statement of cash flows. These reclassifications have
no
impact on net income or earnings per share.