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Note 18 - Restructuring

6 Months Ended

Dec. 31, 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*												*Six Months Ended*
		*December 31, 2019*												*December 31, 2019*
Fiscal 2020		*Involuntary Employee Severance and Benefit Costs*				*Other*				*Total*				*Involuntary Employee Severance and Benefit Costs*				*Other*				*Total*
Restructuring initiatives		$	795			$	(134	)		$	661			$	1,795			$	345			$	2,140
Prior year initiatives			-				59			$	59				-				59			$	59
		$	795			$	(75	)		$	720			$	1,795			$	404			$	2,199

		*Three Months Ended*												*Six Months Ended*
		*December 31, 2018*												*December 31, 2018*
Fiscal 2019		*Involuntary Employee Severance and Benefit Costs*				*Other*				*Total*				*Involuntary Employee Severance and Benefit Costs*				*Other*				*Total*
Restructuring initiatives		$	297			$	(280	)		$	17			$	297			$	70			$	367
Prior year initiatives			40				120				160				125				132				257
		$	337			$	(160	)		$	177			$	422			$	202			$	624

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			1,795				345				2,140
Payments			(1,795	)			(345	)			(2,140	)
Restructuring liabilities at December 31, 2019		$	-			$	-			$	-

Prior Year Initiatives		*Involuntary Employee Severance and Benefit Costs*				*Other*				*Total*
Restructuring liabilities at June 30, 2018		$	147			$	5			$	152
Additions and adjustments			-				59				59
Payments			(147	)			(61	)			(208	)
Restructuring liabilities at December 31, 2018		$	-			$	3			$	3

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

		*Three Months Ended*												*Six Months Ended*
		*December 31, 2019*												*December 31, 2019*
		*Involuntary Employee Severance and Benefit Costs*				*Other*				*Total*				*Involuntary Employee Severance and Benefit Costs*				*Other*				*Total*
Engraving		$	572			$	(134	)		$	438			$	1,132			$	345			$	1,477
Electronics			-				59				59				-				59				59
Engineering Technologies			-				-				-				-				-				-
Food Service Equipment			150				-				150				241				-				241
Corporate			73				-				73				422				-				422
		$	795			$	(75	)		$	720			$	1,795			$	404			$	2,199

		*Three Months Ended*												*Six Months Ended*
		*December 31, 2018*												*December 31, 2018*
		*Involuntary Employee Severance and Benefit Costs*				*Other*				*Total*				*Involuntary Employee Severance and Benefit Costs*				*Other*				*Total*
Engraving		$	20			$	-			$	20			$	67			$	-			$	67
Electronics			-				-				-				-				12				12
Engineering Technologies			-				99				99				17				99				116
Food Service Equipment			255				91				346				276				91				367
Corporate			62				(350	)			(288	)			62				-				62
		$	337			$	(160	)		$	177			$	422			$	202			$	624

Restructuring expense is expected to be approximately $1.0 million for the remainder of fiscal year 2020.