Note 9 - Facility Closure

12 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

9.

FACILITY

C

LOSURE

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

24

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

June 30, 2019,

the carrying value of the building is

$2.2

million, and based on comparable sale data sourced from the Company’s real estate broker the Company believes that the current fair value exceeds the carrying value. During fiscal

2018,

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 earnings before income tax.

In addition to the impairment loss recognized in fiscal

2016,

the Company incurred

$988,000

in related restructuring charges, representing severance compensation, equipment installation and freight costs, in fiscal

2017.