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Note 16 - Restructuring
12 Months Ended
Jun. 30, 2016
Notes to Financial Statements  
Restructuring and Related Activities Disclosure [Text Block]
16. restructuring
 
The Company has undertaken a number of initiatives that have resulted in severance, restructuring, and related charges. A summary of charges by initiative is as follows (in thousands):
 
Year Ended June 30,
 
Involuntary Employee
Severance and
Benefit Costs
 
 
Other
 
 
Total
 
201
6
Restructuring Initiatives
  $ 1,046     $ 893     $ 1,939  
Prior Year Initiatives
    96       2,197       2,293  
Total expense
  $ 1,142     $ 3,090     $ 4,232  
                         
2015 Restructuring Initiatives
  $ 847     $ 2,319     $ 3,166  
Prior Year Initiatives
    11       266       277  
Total expense
  $ 858     $ 2,585     $ 3,443  
                         
2014 Restructuring Initiatives
  $ 1,528     $ 8,477     $ 10,005  
Prior Year Initiatives
    72       -       72  
Total expense
  $ 1,600     $ 8,477     $ 10,077  
 
 
201
6
Restructuring Initiatives
The Company continues to focus on our efforts to reduce cost and improve productivity across our businesses, particularly through headcount reductions, facility closures, and consolidations. The Company’s 2016 initiatives to date include the movement of manufacturing from a legacy Canadian facility into our newly acquired Northlake facility and a reduction of personnel in those locations impacted by the slowdown in the oil and gas market.
 
Restructuring expenses during fiscal year 2016 were $4.2 million primarily related to a $1.7 million non-cash charge from the sale of a vacant property and a $0.7 million non-cash charge to discontinue a product line at our Refrigeration Solutions group. Restructuring activities related to 2016 initiatives are substantially complete.
 
The Company anticipates further restructuring charges in 2017 based upon market conditions and cost reduction activities to improve our competitive advantage.
 
Activity in the reserves related to 2016 restructuring initiatives is as follows (in thousands):
 
 
 
Involuntary Employee
Severance and
Benefit Costs
 
 
Other
 
 
Total
 
Restructuring Liabilities at June 30, 2015
  $ -     $ -     $ -  
Additions
    991       304       1,295  
Payments
    (991 )     (272 )     (1,263 )
Restructuring Liabilities at June 30, 2016
  $ -     $ 32     $ 32  
 
Prior Year Initiatives
The Company previously announced the closure of our Food Service Equipment U.K. facility and entered into a distribution agreement with a U.K. based partner in order to reduce channel costs and enhance profitability, expand and strengthen our U.K. Food Service Equipment group’s presence for all of our brands.
 
Restructuring activities related to all prior year initiatives are substantially complete. The cumulative expense related to all activities making up this initiative is expected to be $5.7 million.
 
Activity in the reserves related to prior year restructuring initiatives is as follows (in thousands):
 
 
 
Involuntary Employee
Severance and
Benefit Costs
 
 
Other
 
 
Total
 
Restructuring Liabilities at June 30, 2015
  $ 78     $ 306     $ 384  
Additions
    152       344       496  
Payments
    (193 )     (389 )     (582 )
Restructuring Liabilities at June 30, 2016
  $ 37     $ 261     $ 298  
 
The Company’s total restructuring expenses by segment are as follows (in thousands):
 
Year Ended June 30,
 
Involuntary Employee
Severance and
Benefit Costs
 
 
Other
 
 
Total
 
Fiscal Year 2016
 
 
 
 
 
 
 
 
 
 
 
 
Food Service Equipment
  $ 138     $ 2,841     $ 2,979  
Engineering Technologies
    160       -       160  
Engraving
    92       -       92  
Electronics
    624       217       841  
Corporate and Other
    128       32       160  
Total expense
  $ 1,142     $ 3,090     $ 4,232  
                         
Fiscal Year 2015
 
 
 
 
 
 
 
 
 
 
 
 
Food Service Equipment
  $ 215     $ 2,363     $ 2,578  
Engineering Technologies
    75       -       75  
Engraving
    220       -       220  
Electronics
    348       222       570  
Total expense
  $ 858     $ 2,585     $ 3,443  
                         
Fiscal Year 2014
 
 
 
 
 
 
 
 
 
 
 
 
Food Service Equipment
  $ 746     $ 8,408     $ 9,154  
Engraving
    667       21       688  
Electronics
    187       48       235  
Total expense
  $ 1,600     $ 8,477     $ 10,077