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Note 13 - Restructuring Costs | 9 Months Ended
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Mar. 31, 2019
Notes to Financial Statements |
Restructuring and Related Activities Disclosure [Text Block] | NOTE 1 3 – RESTRUCTURING COSTS On October 29, 2018, the Company announced plans to close its lighting manufacturing facility in New Windsor, New York. The closure is part of ongoing actions to align the Company’s supply chain to more cost effectively serve the changing requirements of the lighting market. The Company will move production to its other existing facilities. The closure will allow the Company to improve utilization of existing manufacturing capacity and will generate annual savings of approximately $4.0 million. The Company will record an estimated range of restructuring costs of $0.2 million to $0.6 million mostly next quarter and up until the time the facility is ultimately sold. Further, the Company has announced that it entered into a definitive agreement to sell the New Windsor, New York manufacturing facility for approximately $12 million in the fourth quarter which is expected to generate a book gain. The transfer of production is expected to be completed by June 30, 2019. As of March 31, 2019, the Company has incurred restructuring costs of $769,000 related to the closure of the New Windsor facility. The Company also incurred $919,000 of expense to write-down inventory which is not included in the tables below. In the first quarter of fiscal 2019, management approved the closure of its 12,000 square foot leased facility in Hawthorne, California. The facility was used as a warehouse and for light assembly of light fixtures. The Company has moved the light assembly to its Blue Ash, Ohio facility. The restructuring charges consist primarily of transportation costs to move inventory to Blue Ash, the impairment of equipment, costs to restore the leased facility, and severance benefits. As of March 31, 2019, the Company has incurred restructuring costs of $155,000 related to the closure of the Hawthorne facility. The Company also incurred $148,000 of expense to write-down inventory which is a re-valuation of the previous estimate and which is not included in the tables below. The following table presents information about restructuring costs for the periods indicated:
|  | Three |  |  | Nine Months |  |  | Three |  |  | Nine Months |
|  | Months Ended |  |  | Ended |  |  | Months Ended |  |  | Ended |
(In thousands) |  | March 31, |  |  | March 31, |  |  | March 31, |  |  | March 31, |
|  | 2019 |  |  | 2019 |  |  | 2018 |  |  | 2018 |
Severance and other termination benefits |  | $ | 263 |  |  | $ | 484 |  |  | $ | -- |  |  | $ | -- |
Facility repairs |  |  | 52 |  |  |  | 99 |  |  |  | -- |  |  |  | -- |
Impairment of fixed assets and accelerated depreciation |  |  | -- |  |  |  | 228 |  |  |  | -- |  |  |  | -- |
Other restructuring costs |  |  | 53 |  |  |  | 113 |  |  |  | -- |  |  |  | -- |
Total |  | $ | 368 |  |  | $ | 924 |  |  | $ | -- |  |  | $ | -- |
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 |  |  | Nine Months Ended |
(In thousands) |  | March 31 |  |  | March 31 |
|  | 2019 |  |  | 2019 |
Cost of Goods Sold |  |  | 261 |  |  |  | 792 |
Operating Expenses |  |  | 107 |  |  |  | 132 |
Total |  |  | 368 |  |  |  | 924 |
Additionally, the above tables do not include expense of $1,067,000 recorded during the nine months ended March 31, 2019 related to the write-down of inventory included as cost of sales as part of facility closures. 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, 2018 |  |  | Restructuring Expense |  |  | Payments |  |  | Adjustments |  |  | Balance as of March 31, 2019 |
Severance and termination benefits |  | $ | -- |  |  | $ | 484 |  |  | $ | (22 | ) |  | $ | -- |  |  | $ | 462 |
Facility Repairs |  |  | -- |  |  |  | 99 |  |  |  | (62 | ) |  |  | -- |  |  |  | 37 |
Other restructuring costs |  |  | -- |  |  |  | 113 |  |  |  | (74 | ) |  |  | -- |  |  |  | 39 |
Total |  | $ | -- |  |  | $ | 696 |  |  | $ | (158 | ) |  | $ | -- |  |  | $ | 538 |
The above table does not include fixed asset impairment and accelerated depreciation expense of $228,000 recorded in the first nine months of fiscal 2019. Refer to Note 12 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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