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Note 15 - Restructuring

12 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

1

5

. 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):

		Involuntary Employee
		Severance and
Year Ended June 30,		Benefit Costs				Other				Total
201 8 Restructuring Initiatives		$	2,668			$	3,825			$	6,493
Prior Year Initiatives			224				877				1,101
Total expense		$	2,892			$	4,702			$	7,594
2017 Restructuring Initiatives		$	1,863			$	3,590			$	5,453
Prior Year Initiatives			-				372				372
Total expense		$	1,863			$	3,962			$	5,825
2016 Restructuring Initiatives		$	1,046			$	893			$	1,939
Prior Year Initiatives			96				2,197				2,293
Total expense		$	1,142			$	3,090			$	4,232

2018

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. During the fiscal year ended

June 30, 2018,

we incurred restructuring expenses from

2018

initiatives related to

three

restructuring programs that are intended to improve profitability, streamline production and enhance capacity to support future growth: (

1

) the realignment of management functions at the Food Service Equipment Group level; (

2

) headcount reduction and plant realignment with regard to the standard products businesses within Food Service Equipment; and (

3

) the exit of an unprofitable Engraving business in Brazil.

		Involuntary Employee Severance and Benefit Costs				Other				Total
Restructuring liabilities at June 30, 2017		$	-			$	-			$	-
Additions and adjustments			2,838				3,149				5,987
Payments			(2,676	)			(3,124	)			(5,800	)
Restructuring liabilities at June 30, 2018		$	162			$	25			$	187

2017

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

2017

initiatives are from

three

primary areas. First, Engineering Technologies incurred

$3.6

million of expense related to manufacturing footprint optimization at the Enginetics, Huber Heights, Ohio facility which allowed us to close its East Lake, Ohio facility. We vacated and sublet the East Lake facility for approximately the same aggregate lease costs for which we are obligated under the lease. Second, we spent

$1.2

million to gain organizational efficiencies within the Food Service Equipment segment. Finally, we spent

$0.5

million to move our Electronics facility in China due to government directives related to all businesses in the area where our facility was located.

The Company anticipates further restructuring charges in

2019

based upon market conditions and cost reduction activities to improve our competitive advantage.

Activity in the reserves related to

2017

restructuring initiatives is as follows (in thousands):

		Involuntary Employee
		Severance and
		Benefit Costs				Other				Total
Restructuring Liabilities at June 30, 2017		$	506			$	801			$	1,307
Additions and adjustments			532				1,044				1,576
Payments			(745	)			(1,845	)			(2,590	)
Restructuring Liabilities at June 30, 2018		$	293			$	-			$	293

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, 2016		$	74			$	256			$	330
Additions			1,927				3,742				5,669
Payments			(1,495	)			(2,760	)			(4,255	)
Restructuring Liabilities at June 30, 2017		$	506			$	1,238			$	1,744

The Company’s total restructuring expenses by segment are as follows (in thousands):

		Involuntary Employee
		Severance and
Year Ended June 30,		Benefit Costs				Other				Total
Fiscal Year 2018
Food Service Equipment		$	962			$	3,203			$	4,165
Engineering Technologies			224				874				1,098
Engraving			1,199				489				1,688
Electronics			215				84				299
Corporate and Other			292				52				344
Total expense		$	2,892			$	4,702			$	7,594
Fiscal Year 2017
Food Service Equipment		$	1,101			$	85			$	1,186
Engineering Technologies			809				3,070				3,879
Engraving			6				-				6
Electronics			11				488				499
Corporate and Other			(64	)			319				255
Total expense		$	1,863			$	3,962			$	5,825
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

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- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-URI http://asc.fasb.org/topic&trid=2175745

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