Note 12 - Facility Closure

9 Months Ended

Mar. 31, 2018

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

Note

12:

  Facility Closure

This footnote was previously reported as a “subsequent event” in the fiscal

2018

second

quarter

10

-Q report.

The Company decided in

January 2018

to vacate its facility in Mt. Airy, North Carolina, and move current operations to a smaller building. While

no

definitive date for this move has been set yet, the Company anticipates that the move will happen within the next

12

months. The Company incurred a

$4.1

million impairment charge in fiscal

2016,

when the majority of the plant’s operations were relocated to the Company’s Brazilian production facility. As of

December 31, 2017,

the carrying value of the building is

$2.0

million, and the Company believes that the current fair value exceeds the carrying value. During the current quarter, the Company sold the inventory and equipment related to

one

of the product lines impacted by this decision. This sale resulted in a

$0.1

million increase in income before tax.