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Note 15 - Restructuring Costs | 12 Months Ended
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Jun. 30, 2020
Notes to Financial Statements |
Restructuring and Related Activities Disclosure [Text Block] | NOTE 1 5 – RESTRUCTURING COSTS In fiscal 2019, the Company closed 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 moved the light assembly to its Cincinnati, Ohio facility. The restructuring charges consist primarily of transportation costs to move inventory to Cincinnati, the impairment of equipment, costs to restore the leased facility, and severance benefits. As of June 30, 2019, the Company incurred restructuring costs of $0.1 million related to the closure of the Hawthorne facility. The Company also incurred $0.1 million of expense to write-down inventory which is a re-valuation of the previous estimate and which is not included in the tables below. Also occurring in fiscal 2019, the Company announced plans to close its lighting manufacturing facility in New Windsor, New York. The closure was 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 moved production to its other existing facilities in the second half of fiscal 2019. The closure allowed the Company to improve utilization of existing manufacturing capacity and will generate annual savings of approximately $4.0 million. The sale of the facility is listed as an asset held for sale as of June 30, 2019. As of June 30, 2019, the Company incurred restructuring costs of $1.7 million related to the closure of the New Windsor facility. The Company also incurred $1.1 million of expense in fiscal 2019 to write-down inventory which is not included in the tables below. The sale of the New Windsor facility occurred during the first quarter of fiscal 2020. The net proceeds were $12.3 million resulting in a gain of $4.8 million. In addition, in the third quarter of fiscal 2020, the Company sold its North Canton, Ohio facility. The net proceeds were $7.7 million resulting in a net gain of $3.7 million. The Company relocated the production at the North Canton facility to smaller, leased facility in Akron, Ohio during the fourth quarter of fiscal 2020. The Company also incurred $0.6 million of expense to write-down inventory which is not includes in the tables below. Other restructuring costs incurred in 2020 relate to the realignment of the Company's manufacturing footprint at its Houston, Texas facility. The realignment occurred as the result of the movement of equipment related to the closure of the New Windsor facility along with preparations to receive additional equipment resulting from the relocation of the North Canton facility. The following table presents information about restructuring (gains) costs recorded in fiscal years 2020 and 2019:
(In thousands) |  | 2020 |  |  | 2019 |
Severance benefits |  | $ | - |  |  | $ | 537 |
Impairment of fixed assets and accelerated depreciation |  |  | 59 |  |  |  | 427 |
Gain on sale of facility |  |  | (8,562 | ) |  |  | - |
Exit costs |  |  | 636 |  |  |  | 842 |
Manufacturing realignment costs |  |  | 276 |  |  |  | - |
Total |  | $ | (7,591 | ) |  | $ | 1,806 |
The following table presents restructuring (gains) costs incurred by line item in the consolidated statement of operations in which the costs are included:
(In thousands) |  | 2020 |  |  | 2019 |
Cost of goods sold |  | $ | 980 |  |  | $ | 1,441 |
Operating expenses |  |  | (8,571 | ) |  |  | 365 |
Total |  | $ | (7,591 | ) |  | $ | 1,806 |
The following table presents information about restructuring (gains) costs by segment for the periods indicated:
(In thousands) |  | 2020 |  |  | 2019 |
Lighting Segment |  | $ | (4,674 | ) |  | $ | 1,757 |
Graphics Segment |  |  | (2,940 | ) |  |  | - |
Corporate and Eliminations |  |  | 23 |  |  |  | 49 |
Total |  | $ | (7,591 | ) |  | $ | 1,806 |
The following table presents a roll forward of the beginning and ending liability balances related to the restructuring costs:
|  | Balance as of |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Balance as of |
|  | June 30, |  |  | Restructuring |  |  |  |  |  |  |  |  |  |  | June 30, |
(In thousands) |  | 2019 |  |  | Expense |  |  | Payments |  |  | Adjustments |  |  | 2020 |
Severance and termination benefits |  | $ | 236 |  |  | $ | - |  |  | $ | (209 | ) |  | $ | - |  |  | $ | 27 |
Other restructuring costs |  |  | - |  |  |  | 912 |  |  |  | (912 | ) |  |  | - |  |  |  | - |
Total |  | $ | 236 |  |  | $ | 912 |  |  | $ | (1,121 | ) |  | $ | - |  |  | $ | 27 |
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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