NOTE

– RESTRUCTURING COSTS

In fiscal

2019,

the Company closed 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 moved the light assembly to its Cincinnati, Ohio facility. The restructuring charges consist primarily of transportation costs to move inventory to Cincinnati, the impairment of equipment, costs to restore the leased facility, and severance benefits. As of

June 30, 2019,

the Company incurred restructuring costs of

$0.1

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

$0.1

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

not

included in the tables below.

Also occurring in fiscal

2019,

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

second

half of fiscal

2019.

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

$4.0

million. 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 incurred restructuring costs of

$1.7

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

$1.1

million of expense in fiscal

2019

to write-down inventory which is

not

included in the tables below.

The sale of the New Windsor facility occurred during the

first

quarter of fiscal

2020.

The net proceeds were

$12.3

million resulting in a gain of

$4.8

million. In addition, in the

third

quarter of fiscal

2020,

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

$7.7

million resulting in a net gain of

$3.7

million. The Company relocated the production at the North Canton facility to smaller, leased facility in Akron, Ohio during the

fourth

quarter of fiscal

2020.

The Company also incurred

$0.6

million of expense to write-down inventory which is

not

includes in the tables below. Other restructuring costs incurred in

2020

relate to the realignment of the Company's manufacturing footprint at its Houston, Texas facility. 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 facility.

The following table presents information about restructuring (gains) costs recorded in fiscal years

2020

and

2019:

(In thousands)	2020			2019

Severance benefits	$	-		$	537
Impairment of fixed assets and accelerated depreciation		59			427
Gain on sale of facility		(8,562	)		-
Exit costs		636			842
Manufacturing realignment costs		276			-
Total	$	(7,591	)	$	1,806

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

(In thousands)	2020			2019

Cost of goods sold	$	980		$	1,441
Operating expenses		(8,571	)		365
Total	$	(7,591	)	$	1,806

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

(In thousands)	2020			2019

Lighting Segment	$	(4,674	)	$	1,757
Graphics Segment		(2,940	)		-
Corporate and Eliminations		23			49
Total	$	(7,591	)	$	1,806

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							June 30,
(In thousands)	2019		Expense		Payments			Adjustments		2020

Severance and termination benefits	$	236	$	-	$	(209	)	$	-	$	27
Other restructuring costs		-		912		(912	)		-		-
Total	$	236	$	912	$	(1,121	)	$	-	$	27

Refer to Note

for information regarding additional severance expenses that are

not

included in the restructuring costs identified in this footnote.