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Note 15 - Restructuring Costs | 12 Months Ended
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Jun. 30, 2018
Notes to Financial Statements |
Restructuring and Related Activities Disclosure [Text Block] | NOTE 1 5 – 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 were $944,000 and were recorded in the lighting segment. These costs primarily included 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 $485,000 recorded in 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 owned the facility in Kansas City and realized a $1,361,000 gain when the facility was sold. There have been no restructuring charges in fiscal 2018. 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 $377,000 were recorded in fiscal 2017 in the lighting segment, 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. There have been no restructuring charges in fiscal 2018. 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 owned the facility in Woonsocket and realized a small gain when the facility was sold in September 2017. Total restructuring costs related to the consolidation of the Woonsocket facility were $452,000 in fiscal 2017 and were recorded in the Graphics Segment. 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. There have been no restructuring charges in fiscal 2018. The following table presents information about restructuring costs recorded in fiscal 2017:
|  | Total |
|  | Fiscal 2017 |
(In thousands) |  | Restructuring |
|  | Costs |
Severance and other termination benefits |  | $ | 811 |
Lease obligation |  |  | 213 |
Impairment of fixed assets and accelerated depreciation |  |  | 354 |
Gain on sale of facility |  |  | (1,361 | )
Other |  |  | 395 |
Total |  | $ | 412 |
Impairment and accelerated depreciation expense of $354,000 was recorded in fiscal 2017 related to machinery and equipment at the Kansas City and Beaverton facilities. This expense was recorded in the Lighting Segment. There was no impairment expense related to the closure of the Woonsocket facility. 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 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:
|  | Total |  |  | Total |
|  | Fiscal 2018 |  |  | Fiscal 2017 |
(In thousands) |  | Restructuring |  |  | Restructuring |
|  | Costs |  |  | Costs |
Cost of Goods Sold |  | $ | -- |  |  | $ | 1,503 |
Operating Expenses |  |  | -- |  |  |  | (1,091 | )
Total |  | $ | -- |  |  | $ | 412 |
The following table presents information about restructuring costs by segment for the periods indicated:
|  | Total |  |  | Total |
|  | Fiscal 2018 |  |  | Fiscal 2017 |
(In thousands) |  | Restructuring |  |  | Restructuring |
|  | Expenses |  |  | Expenses |
Lighting Segment |  | $ | -- |  |  | $ | (165 | )
Graphics Segment |  |  | -- |  |  |  | 452 |
Corporate and Eliminations |  |  | -- |  |  |  | 125 |
Total |  | $ | -- |  |  | $ | 412 |
The above tables include the gain on the sale of the Kansas City facility. Additionally, the above tables do not include expense of $485,000 recorded during fiscal 2017 related to the write-down of inventory included as cost of sales as part of the Kansas City facility closure. There were no restructuring charges for fiscal 2018. All previously announced restructuring projects were completed in fiscal 2017 and all restructuring charges were recorded in fiscal 2017. 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, 2017 |  |  | Restructuring Expense |  |  | Payments |  |  | Adjustments |  |  | Balance as of June 30, 2018 |
Severance and termination benefits |  | $ | -- |  |  | $ | -- |  |  | $ | -- |  |  | $ | -- |  |  | $ | -- |
Lease obligation |  |  | 85 |  |  |  | -- |  |  |  | (85 | ) |  |  | -- |  |  |  | -- |
Other |  |  | -- |  |  |  | -- |  |  |  | -- |  |  |  | -- |  |  |  | -- |
Total |  | $ | 85 |  |  | $ | -- |  |  | $ | (85 | ) |  | $ |  |  |  | $ | -- |
Refer to Note 14 for information regarding additional severance expenses that are not included in the restructuring costs identified in this footnote.

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- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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