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Note 16 - Restructuring
6 Months Ended
Dec. 31, 2017
Notes to Financial Statements  
Restructuring and Related Activities Disclosure [Text Block]
1
6
)
     
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
   
Six Months Ended
 
   
December 31, 2017
   
December 31, 2017
 
Fiscal 201
8
 
Involuntary
Employee
Severance and
Benefit Costs
   
 
 
 
 
Other
   
 
 
 
 
Total
   
Involuntary
Employee
Severance and
Benefit Costs
   
 
 
 
 
Other
   
 
 
 
 
Total
 
Restructuring initiatives
  $
228
    $
1,453
    $
1,681
    $
1,910
    $
2,000
    $
3,910
 
Prior year initiatives
   
113
     
172
     
285
     
155
     
905
     
1,060
 
    $
341
    $
1,625
    $
1,966
    $
2,065
    $
2,905
    $
4,970
 
 
   
Three Months Ended
   
Six Months Ended
 
   
December 31, 2016
   
December 31, 2016
 
Fiscal 2017
 
Involuntary
Employee
Severance and
Benefit Costs
   
 
 
 
 
Other
   
 
 
 
 
Total
   
Involuntary
Employee
Severance and
Benefit Costs
   
 
 
 
 
Other
   
 
 
 
 
Total
 
Restructuring initiatives
  $
1,117
    $
492
    $
1,609
    $
1,146
    $
828
    $
1,974
 
Prior year initiatives
   
-
     
55
     
55
     
-
     
84
     
84
 
    $
1,117
    $
547
    $
1,664
    $
1,146
    $
912
    $
2,058
 
 
201
8
Restructuring Initiatives
 
The Company continue
s to focus on our efforts to reduce cost and improve productivity across our businesses, particularly through headcount reductions, facility closures, and consolidations. During the
six
months ended
December 31, 2017,
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
   
2,082
     
2,002
     
4,084
 
Payments
   
(1,624
)    
(1,786
)    
(3,410
)
Restructuring liabilities at
December 31, 2017
  $
458
    $
216
    $
674
 
 
Prior Year Initiatives
 
The
prior year initiatives yet to be completed are primarily the finalization of the manufacturing footprint consolidation within our Enginetics business in the Engineering Technology segment.
 
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, 2017
  $
839
    $
906
    $
1,745
 
Additions and adjustments
   
155
     
906
     
1,061
 
Payments
   
(684
)    
(1,754
)    
(2,438
)
Restructuring liabilities at
December 31, 2017
  $
310
    $
58
    $
368
 
 
The Company
’s total restructuring expenses by segment are as follows (in thousands):
 
   
Three Months Ended
   
Six Months Ended
 
   
December 31, 2017
   
December 31, 2017
 
   
Involuntary
Employee
Severance and
Benefit Costs
   
 
 
 
Other
   
 
 
 
Total
   
Involuntary
Employee
Severance and
Benefit Costs
   
 
 
 
Other
   
 
 
 
Total
 
Food Service Equipment
  $
187
    $
1,135
    $
1,322
    $
748
    $
1,561
    $
2,309
 
Engraving
   
24
     
249
     
273
     
739
     
343
     
1,082
 
Engineering Technologies
   
113
     
156
     
269
     
154
     
880
     
1,034
 
Electronics
   
-
     
57
     
57
     
132
     
84
     
216
 
Corporate
   
17
     
28
     
45
     
292
     
37
     
329
 
    $
341
    $
1,625
    $
1,966
    $
2,065
    $
2,905
    $
4,970
 
 
   
Three Months Ended
   
Six Months Ended
 
   
December 31, 2016
   
December 31, 2016
 
   
Involuntary
Employee
Severance and
Benefit Costs
   
 
 
 
Other
   
 
 
 
Total
   
Involuntary
Employee
Severance and
Benefit Costs
   
 
 
 
Other
   
 
 
 
Total
 
Food Service Equipment
  $
1,117
    $
3
    $
1,120
    $
1,129
    $
78
    $
1,207
 
Engraving
   
-
     
-
     
-
     
6
     
-
     
6
 
Engineering Technologies
   
-
     
249
     
249
     
-
     
433
     
433
 
Electronics
   
-
     
272
     
272
     
11
     
370
     
381
 
Corporate
   
-
     
23
     
23
     
-
     
31
     
31
 
    $
1,117
    $
547
    $
1,664
    $
1,146
    $
912
    $
2,058
 
 
W
e incurred severance and other costs of
$2.0
million and
$1.7
million associated with these activities during the
three
months ended
December 31, 2017
and
2016,
respectively. We incurred severance and other costs of
$5.0
million and
$2.1
million associated with these activities during the
six
months ended
December 31, 2017
and
2016,
respectively. Restructuring expense is expected to be between
$4.0
million and
$5.0
million for the remainder of fiscal year
2018.