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Note 18 - Restructuring

3 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

18)

Restructuring

The Company has undertaken cost reduction and facility consolidation initiatives that have resulted in severance, restructuring, and related charges.

2020 Restructuring Initiatives

The Company continues to focus our efforts to reduce cost and improve productivity across our businesses, particularly through headcount reductions, facility closures, and consolidations. Restructuring expenses primarily related to headcount reductions and facility rationalization within our Engraving segment. Thus far, during fiscal year 2020, we have also incurred restructuring expenses related to third party assistance with analysis and implementation of these activities.

Prior Year Restructuring Initiatives

During the fiscal year 2019, the Company initiated restructuring programs related to: (1) employee headcount reductions as the Company realigned management functions (2) the exit of unprofitable Engraving businesses, and (3) initiatives intended to improve profitability, streamline production, and enhance capacity to support future growth in the Electronics and Engraving segments.

A summary of charges by initiative is as follows (in thousands):

		*Three Months Ended*
		*September 30, 2019*
Fiscal 2020		*Involuntary Employee Severance and Benefit Costs*				*Other*				*Total*
Current year initiatives		$	1,000			$	479			$	1,479
Prior year initiatives			-				-			$	-
		$	1,000			$	479			$	1,479

		*Three Months Ended*
		*September 30, 2018*
Fiscal 2019		*Involuntary Employee Severance and Benefit Costs*				*Other*				*Total*
Current year initiatives		$	-			$	350			$	350
Prior year initiatives			85				12				97
		$	85			$	362			$	447

Activity in the reserve related to the initiatives is as follows (in thousands):

Current Year Initiatives		*Involuntary Employee Severance and Benefit Costs*				*Other*				Total
Restructuring liabilities at June 30, 2019		$	-			$	-			$	-
Additions and adjustments			1,000				479				1,479
Payments			(1,000	)			(479	)			(1,479	)
Restructuring liabilities at September 30, 2019		$	-			$	-			$	-

Prior Year Initiatives		*Involuntary Employee Severance and Benefit Costs*				*Other*				*Total*
Restructuring liabilities at June 30, 2019		$	147			$	5			$	152
Additions and adjustments			-				-				-
Payments			(122	)			-				(122	)
Restructuring liabilities at September 30, 2019		$	25			$	5			$	30

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

		*Three Months Ended*
		*September 30, 2019*
		*Involuntary Employee Severance and Benefit Costs*				*Other*				*Total*
Engraving		$	559			$	479			$	1,038
Food Service Equipment			91				-				91
Corporate			350				-				350
		$	1,000			$	479			$	1,479

		*Three Months Ended*
		*September 30, 2018*
		*Involuntary Employee Severance and Benefit Costs*				*Other*				*Total*
Engraving		$	17			$	-			$	17
Electronics			-				12				12
Engineering Technologies			47				-				47
Food Service Equipment			21				-				21
Corporate			-				350				350
		$	85			$	362			$	447

Restructuring expense is expected to be approximately $1.9 million for the remainder of fiscal year 2020.