NOTE

– RESTRUCTURING COSTS

October 29, 2018,

the Company announced plans to close its lighting manufacturing facility in New Windsor, New York. The closure was part of ongoing actions to align the Company’s supply chain to more cost effectively serve the changing requirements of the lighting market. The Company moved production to its other existing facilities in the

third

and

fourth

quarters of fiscal

2019

with the completion of the transfer in

May 2019.

The closure allowed the Company to improve utilization of existing manufacturing capacity and will generate annual savings of approximately

$4.0

million. Further, the Company previously announced that it entered into a definitive agreement to sell the New Windsor, New York manufacturing facility for approximately

$12

million. It is likely the formal sale of the facility will occur in the

first

quarter of fiscal

2020

which is expected to generate a book gain. The sale of the facility is listed as an asset held for sale as of

June 30, 2019.

As of

June 30, 2019,

the Company has incurred restructuring costs of

$1,650,000

related to the closure of the New Windsor, New York facility. The Company also incurred

$1,119,000

of expense in fiscal

2019

to write-down inventory which is

not

included in the tables below.

In the

first

quarter of fiscal

2019,

management approved the closure of its

12,000

square foot leased facility in Hawthorne, California. The facility was used as a warehouse and for light assembly of light fixtures. The Company has moved the light assembly to its Blue Ash, Ohio facility. The restructuring charges consist primarily of transportation costs to move inventory to Blue Ash, the impairment of equipment, costs to restore the leased facility, and severance benefits. As of

June

31,

2019,

the Company has incurred restructuring costs of

$156,000

related to the closure of the Hawthorne facility. The Company also incurred

$148,000

of expense to write-down inventory which is a re-valuation of the previous estimate and which is

not

included in the tables below.

The following table presents information about restructuring costs recorded in fiscal

2019:

	Total
	Fiscal 2019
(In thousands)	Restructuring
	Costs

Severance and other termination benefits	$	537
Lease obligation		99
Impairment of fixed assets and accelerated depreciation		427
Other		743
Total	$	1,806

The following table presents restructuring costs incurred by line item in the consolidated statement of operations in which the costs are included:

	Total		Total
	Fiscal 201 9		Fiscal 2018
(In thousands)	Restructuring		Restructuring
	Costs		Costs

Cost of Goods Sold	$	1,441	$	--
Operating Expenses		365		--
Total	$	1,806	$	--

The following table presents information about restructuring costs by segment for the periods indicated:

	Total		Total
	Fiscal 2019		Fiscal 2018
(In thousands)	Restructuring		Restructuring
	Expenses		Expenses

Lighting Segment	$	1,757	$	--
Graphics Segment		--		--
Corporate and Eliminations		49		--
Total	$	1,806	$	--

The following table presents a roll forward of the beginning and ending liability balances related to the restructuring costs:

(In thousands)
	Balance as of June 30, 2018		Restructuring Expense		Payments			Adjustments		Balance as of June 30, 2019

Severance and termination benefits	$	--	$	537	$	(301	)	$	--	$	236
Facility repairs		--		99		(99	)		--		--
Other restructuring costs		--		743		(743	)		--		--
Total	$	--	$	1,379	$	(1,143	)	$	--	$	236

Refer to Note

for information regarding additional severance expenses that are

not

included in the restructuring costs identified in this footnote.