Note 14 - Restructuring Costs

9 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

NOTE

1

4

– RESTRUCTURING COSTS

In the

first

quarter of fiscal

2020,

the Company sold its New Windsor, New York facility. The net proceeds from the sale were

$12.3

million resulting in a gain of

$4.8

million. Restructuring costs incurred in the

first

quarter of fiscal

2020

related to the closure of the New Windsor facility, which impacted both the Lighting and Graphics segment.

Restructuring costs incurred in the

second

quarter of fiscal

2020

related to the realignment of the Company’s manufacturing footprint at its Houston, Texas facility, which impacted the Graphics segment. The realignment occurred as the result of the movement of equipment related to the closure of the New Windsor facility along with preparations to receive additional equipment resulting from the relocation of the North Canton, Ohio facility.

In the

third

quarter of fiscal

2020,

the Company sold its North Canton, Ohio facility. The net proceeds from the sale were

$7.7

million resulting in a net gain of

$3.7

million. Restructuring charges incurred in the

third

quarter of fiscal

2020

related to the relocation of the North Canton facility, which impacted the Graphics Segment. The Company will relocate the production at the North Canton facility to a smaller, leased facility in Akron, Ohio during the

fourth

quarter of fiscal

2020.

The Company also incurred

$451,000

of expense to write-down inventory which is

not

included in the tables below.

Total restructuring costs were

$235,000

and

$744,000

for the

three

and

nine

months ended

March 31, 2020,

respectively.

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

	Three Months Ended					Nine Months Ended
	March 31					March 31
(In thousands)	2020			2019		2020			2019
Severance benefits	$	-		$	263	$	-		$	484
Impairment of fixed assets and accelerated depreciation		-			-		49			228
Facility repairs		-			52		-			99
Gain on sale of facility		(3,741	)		-		(8,562	)		-
Exit costs		235			53		419			113
Manufacturing realignment costs		-			-		276			-
Total	$	(3,506	)	$	368	$	(7,818	)	$	924

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

	Balance as of									Balance as of
	June 30,		Restructuring							March 31,
(In thousands)	2019		Expense		Payments			Adjustments		2020
Severance and termination benefits	$	236	$	-	$	(209	)	$	-	$	27
Other restructuring costs		-		695		(695	)		-	$	-
Total	$	236	$	695	$	(904	)	$	-	$	27