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Note 17 - Restructuring
6 Months Ended
Dec. 31, 2015
Notes to Financial Statements  
Restructuring and Related Activities Disclosure [Text Block]
17)      Restructuring
 
The Company has undertaken cost reduction and facility consolidation initiatives that have resulted in severance, restructuring, and related charges. A summary of charges by initiative is as follows (in thousands):
 
 
 
Three Months Ended
December 31, 2015
 
 
Six Months Ended
December 31, 2015
 
Fiscal 2016
 
Involuntary Employee
Severance
and Benefit
Costs
 
 
Other
 
 
Total
 
 
Involuntary Employee
Severance
and Benefit
Costs
 
 
Other
 
 
Total
 
Restructuring initiatives
  $ 696     $ 107     $ 803     $ 730     $ 167     $ 897  
Prior year initiatives
    22       652       674       59       2,040       2,099  
    $ 718     $ 759     $ 1,477     $ 789     $ 2,207     $ 2,996  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
December 31, 2014
 
 
Six Months Ended
December 31, 2014
 
Fiscal 2015
 
Involuntary Employee
Severance
and Benefit
Costs
 
 
Other
 
 
Total
 
 
Involuntary Employee
Severance
and Benefit
Costs
 
 
Other
 
 
Total
 
Restructuring initiatives
  $ 299     $ 795     $ 1,094     $ 333     $ 798     $ 1,131  
Prior year initiatives
    -       -       -       125       700       825  
    $ 299     $ 795     $ 1,094     $ 458     $ 1,498     $ 1,956  
 
2016 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 have commenced at the specialty solutions division of the Food Service Equipment group, and at our Canadian based Electronics facility.
 
 
 
Involuntary Employee Severance and Benefit Costs
 
 
Other
 
 
Total
 
Restructuring liabilities at June 30, 2015
  $ -     $ -     $ -  
Additions and adjustments
    160       279       439  
Payments
    (160 )     (279 )     (439 )
Restructuring liabilities at December 31, 2015
  $ -     $ -     $ -  
 
Prior Year Initiatives
 
The Company previously announced closure of our Food Service Equipment U.K. facility and entered into a distribution agreement with a U.K. based partner to reduce channel costs and enhance profitability, expand and strengthen, our U.K. Food Service Equipment group’s presence for all of our brands.
 
 
 

 
 
 
Activity in the reserve related to the prior year restructuring initiatives is as follows (in thousands):
 
 
 
Involuntary Employee Severance and Benefit Costs
 
 
Other
 
 
Total
 
Restructuring liabilities at June 30, 2015
  $ 82     $ 301     $ 383  
Additions and adjustments
    503       309       812  
Payments
    (171 )     (399 )     (570 )
Restructuring liabilities at December 31, 2015
  $ 414     $ 211     $ 625  
 
The Company’s total restructuring expenses by segment are as follows (in thousands):
 
 
 
Three Months Ended
December 31, 2015
 
 
Six Months Ended
December 31, 2015
 
 
 
Involuntary Employee
Severance
and Benefit
Costs
 
 
Other
 
 
Total
 
 
Involuntary Employee
Severance
and Benefit
Costs
 
 
Other
 
 
Total
 
Food Service Equipment Group
  $ 22     $ 744     $ 766     $ 22     $ 2,104     $ 2,126  
Engraving Group
    33       -       33       35       -       35  
Engineering Technologies Group
    126       -       126       160       -       160  
Electronics Products Group
    409       15       424       444       103       547  
Hydraulics Group
    -       -       -       -       -       -  
Corporate
    128       -       128       128       -       128  
    $ 718     $ 759     $ 1,477     $ 789     $ 2,207     $ 2,996  
 
 
 
 
Three Months Ended
December 31, 2014
 
 
Six Months Ended
December 31, 2014
 
 
 
Involuntary Employee
Severance
and Benefit
Costs
 
 
Other
 
 
Total
 
 
Involuntary Employee
Severance
and Benefit
Costs
 
 
Other
 
 
Total
 
Food Service Equipment Group
  $ 53     $ 736     $ 789     $ 167     $ 1,297     $ 1,464  
Engraving Group
    27       -       27       61       3       64  
Electronics Products Group
    219       59       278       230       198       428  
    $ 299     $ 795     $ 1,094     $ 458     $ 1,498     $ 1,956  
 
We incurred severance and other costs of $1.5 million and $3.0 million associated with these activities during the three and six months ended December 31, 2015, respectively, which includes $0.5 million and $1.7 million, respectively, of non-cash expenses, to reduce the net book value of a closed facility to its net realizable value. Restructuring expense is expected to be $3.7 million for fiscal year 2016, of which $3.0 million was incurred for the period ended December 31, 2015.