XML 31 R19.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Note 14 - Restructuring Costs | 6 Months Ended
--- | ---
Dec. 31, 2016
Notes to Financial Statements |
Restructuring and Related Activities Disclosure [Text Block] | NOTE 1 4 – RESTRUCTURING COSTS On September 22, 2016, the Company announced plans to close its lighting facility in Kansas City, Kansas. The decision was based upon the market shift away from fluorescent and other technologies and the rapid movement to LED lighting which is produced at other LSI facilities. The Company expects to continue to meet the demand for products containing fluorescent light sources as long as these products are commercially viable. All operations at the Kansas City facility ceased prior to December 31, 2016. Total restructuring costs related to the closure of the Kansas City facility are expected to be approximately $900,000. These costs primarily include employee-related costs (primarily severance), the impairment of manufacturing equipment, plant shut down costs , costs related to the preparation of the facility for sale, legal costs, and other related costs. In addition, there was also an inventory write-down of $400,000 recorded in the first quarter of fiscal 2017. The write-down was related to inventory that was previously realizable until the decision in the first quarter of fiscal 2017 to shut down the Kanas City plant due to the planned curtailment of the manufacturing of fluorescent light fixtures. The Company owns the facility in Kansas City and expects to realize a gain when the facility is sold. The facility is presented on the balance sheet as an asset held for sale. The Company also announced the consolidation of the Beaverton, Oregon facility into other LSI facilities. The light assembly of products in the Beaverton facility was moved to the Company’s Columbus, Ohio facility, and administration and engineering functions were moved to the Company’s Cincinnati, Ohio facility. This consolidation was completed September 30, 2016. As a result of this consolidation, restructuring charges of $362,000 were recorded in the first half of fiscal 2017, with the majority of this representing the costs related to the remaining period of the facility’s lease and severance costs for employees who formerly worked in the Beaverton facility. In November 2016, the Company announced the consolidation of the Woonsocket, Rhode Island manufacturing operation into its North Canton, Ohio operation. The manufacturing operations in Woonsocket ceased prior to December 31, 2016. The Company owns the facility in Woonsocket and expects to realize a gain when the facility is sold . The facility is presented on the balance sheet as an asset held for sale. Total restructuring costs related to the consolidation of the Woonsocket facility are expected to be approximately $300,000. These costs primarily include employee-related costs (severance), plant shut down costs, costs related to the preparation of the facility for sale, legal costs, and other related costs. The following table presents information about restructuring costs for the periods indicated:
|  | Three |  |  | Six Months |  |  | Total Expected |  |  | Total |
|  | Months Ended |  |  | Ended |  |  | to be Recognized |  |  | Fiscal 2017 |
(In thousands) |  | December 31, |  |  | December 31, |  |  | in Remainder of |  |  | Restructuring |
|  | 2016 |  |  | 2016 |  |  | Fiscal 2017 |  |  | Expenses |
Severance and other termination benefits |  | $ | 526 |  |  | $ | 691 |  |  | $ | 77 |  |  | $ | 768 |
Lease obligation |  |  | -- |  |  |  | 213 |  |  |  | -- |  |  |  | 213 |
Impairment of fixed assets and accelerated depreciation |  |  | 80 |  |  |  | 353 |  |  |  | -- |  |  |  | 353 |
Other |  |  | 91 |  |  |  | 96 |  |  |  | 132 |  |  |  | 228 |
Total |  | $ | 697 |  |  | $ | 1,353 |  |  | $ | 209 |  |  | $ | 1,562 |
Impairment and accelerated depreciation expense of $353,000 was recorded in the first half of fiscal 2017 related to machinery and equipment at the Kansas City and Beaverton facilities. There was no impairment expense related to the closure of the Woonsocket facility. Of the $353,000 of impairment and accelerated depreciation expense, $322,000 was recorded in the Lighting Segment and $31,000 was recorded in the Technology Segment. The fair value of the equipment evaluated for impairment was determined by comparing the future undiscounted cash flows to the carrying value of the assets. The future cash flows are from the remaining use of the assets as well as the cash flows expected to result from the future sale of the assets. The following table presents restructuring costs incurred by line item in the consolidated statement of operations in which the costs are included:
|  | Three Months Ended |  |  | Six Months Ended |
(In thousands) |  | December 31 |  |  | December 31 |
|  | 2016 |  |  | 2016 |
Cost of Goods Sold |  | $ | 640 |  |  | $ | 1,143 |
Operating Expenses |  |  | 57 |  |  |  | 210 |
Total |  | $ | 697 |  |  | $ | 1,353 |
The following table presents information about restructuring costs by segment for the periods indicated:
|  | Three |  |  | Six Months |  |  | Total Expected |  |  | Total |
|  | Months Ended |  |  | Ended |  |  | to be Recognized |  |  | Fiscal 2017 |
(In thousands) |  | December 31, |  |  | December 31, |  |  | In Remainder of |  |  | Restructuring |
|  | 2016 |  |  | 2016 |  |  | Fiscal 2017 |  |  | Expenses |
Lighting Segment |  | $ | 479 |  |  | $ | 770 |  |  | $ | 130 |  |  | $ | 900 |
Graphics Segment |  |  | 221 |  |  |  | 221 |  |  |  | 79 |  |  |  | 300 |
Technology Segment |  |  | (3 | ) |  |  | 251 |  |  |  | -- |  |  |  | 251 |
Corporate and Eliminations |  |  | -- |  |  |  | 111 |  |  |  | -- |  |  |  | 111 |
Total |  | $ | 697 |  |  | $ | 1,353 |  |  | $ | 209 |  |  | $ | 1,562 |
The above tables exclude the expected gain on the sale of the Kansas City and Woonsocket facilities. Additionally, the above tables do not include expense of $400,000 recorded during the first quarter of fiscal 2017 related to the write-down of inventory included as cost of sales as part of the Kansas City facility closure. The following table presents a roll forward of the beginning and ending liability balances related to the restructuring costs:
(In thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Balance as of June 30, 2016 |  |  | Restructuring Expense |  |  | Payments |  |  | Adjustments |  |  | Balance as of December 31, 2016 |
Severance and termination benefits |  | $ | -- |  |  | $ | 691 |  |  | $ | (306 | ) |  | $ | (3 | ) |  | $ | 382 |
Lease obligation |  |  | -- |  |  |  | 213 |  |  |  | (43 | ) |  |  | -- |  |  |  | 170 |
Other |  |  | -- |  |  |  | 96 |  |  |  | (90 | ) |  |  | -- |  |  |  | 6 |
Total |  | $ | -- |  |  | $ | 1,000 |  |  | $ | (439 | ) |  | $ | (3 | ) |  | $ | 558 |
The above table does not include fixed asset impairment and accelerated depreciation expense of $353,000 recorded in the first six months of fiscal 2017. Refer to Note 13 for information regarding additional severance expenses that are not included in the restructuring costs identified in this footnote.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 5.P.3) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140864-122747 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration