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Note 18 - Restructuring

9 Months Ended

Mar. 31, 2020

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*												*Nine Months Ended*
		*March 31, 2020*												*March 31, 2020*
Fiscal 2020		*Involuntary Employee Severance and Benefit Costs*				*Other*				*Total*				*Involuntary Employee Severance and Benefit Costs*				*Other*				*Total*
Restructuring initiatives		$413				$184				$597				$2,208				$529				$2,737
Prior year initiatives		-				(4		)		(4		)		-				55				55
		$	413			$	180			$	593			$	2,208			$	584			$	2,792

		*Three Months Ended*												*Nine Months Ended*
		*March 31, 2019*												*March 31, 2019*
Fiscal 2019		*Involuntary Employee Severance and Benefit Costs*				*Other*				*Total*				*Involuntary Employee Severance and Benefit Costs*				*Other*				*Total*
Restructuring initiatives		$	497			$	5			$	502			$	580			$	5			$	585
Prior year initiatives			47				-				47				130				111				241
		$	544			$	5			$	549			$	710			$	116			$	826

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			2,208				529				2,737
Payments			(2,208	)			(464	)			(2,672	)
Restructuring liabilities at March 31, 2020		$	-			$	65			$	65

Prior Year Initiatives		*Involuntary Employee Severance and Benefit Costs*				*Other*				*Total*
Restructuring liabilities at June 30, 2018		$	147			$	5			$	152
Additions and adjustments			-				56				56
Payments			(147	)			(61	)			(208	)
Restructuring liabilities at March 31, 2019		$	-			$	-			$	-

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

		*Three Months Ended*												*Nine Months Ended*
		*March 31, 2020*												*March 31, 2020*
		*Involuntary Employee Severance and Benefit Costs*				*Other*				*Total*				*Involuntary Employee Severance and Benefit Costs*				*Other*				*Total*
Electronics		$	67			$	69			$	136			$	67			$	128			$	195
Engraving			246				93				339				1,378				438				1,816
Engineering Technologies			15				-				15				15				-				15
Food Service Equipment			20				18				38				261				18				279
Corporate			65				-				65				487				-				487
		$	413			$	180			$	593			$	2,208			$	584			$	2,792

		*Three Months Ended*												*Nine Months Ended*
		*March 31, 2019*												*March 31, 2019*
		*Involuntary Employee Severance and Benefit Costs*				*Other*				*Total*				*Involuntary Employee Severance and Benefit Costs*				*Other*				*Total*
Electronics		$	296			$	5			$	301			$	297			$	17			$	314
Engraving			173				-				173				239				-				239
Engineering Technologies			-				-				-				17				99				116
Food Service Equipment			-				-				-				20				-				20
Corporate			75				-				75				137				-				137
		$	544			$	5			$	549			$	710			$	116			$	826

The Company expects to incur additional restructuring costs of approximately $1.5 million throughout the remainder of fiscal year 2020 primarily as a result of actions taken in response to the COVID-19 pandemic.