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Note 4 - Facility Relocation
 3 Months Ended
Jun. 30, 2017
Notes to Financial Statements  
Restructuring and Related Activities Disclosure [Text Block]
Note
4
– Facility Relocation
 
In
August 2016,
we announced that we planned to shut down both our Omaha and Traverse City Biological Indicator manufacturing facilities and relocate those operations to the new Bozeman building. The move of those
two
facilities, along with the current Bozeman operations, began in
March 2017
and is estimated to be completed by the end of our year ending
March 31, 2018.
We estimate that the total costs of the relocation will be
$2,100,000
(which is comprised primarily of facility moving expenses, retention bonuses for existing personnel and payroll costs for duplicative personnel during the transition period) of which
$725,000
was incurred during the year ended
March 31, 2017.
We incurred
$522,000
in relocation costs for the
three
months ended
June 30, 2017,
of which
$291,000
and
$231,000
are reflected in cost of revenues and general and administrative expense, respectively in the accompanying condensed consolidated statements of income. Facility relocation costs, which are associated with our Biological Indicators segment, are as follows for the
three
months ended
June 30, 2017:
 
     
  ● Retention bonuses for existing personnel of
$207,000
 
●
Duplicative employment costs of
$84,000
 
●
Moving costs of
$231,000
 
Facility relocation amounts accrued and paid for the
three
months ended
June 30, 2017
are as follows (in thousands):
 
Balance at March 31, 2017
   $
673
  
Facility relocation expense
    
522
  
Cash payments
    
(594
 )
Balance at June 30, 2017
   $
601
  
 
Subsequent to
June 30, 2017,
we completed the move from the Omaha facility and subsequently sold that building for
$1,116,000
(net of commission costs) which resulted in a gain of
$116,000.
The Omaha facility is presented on the accompanying condensed consolidated balance sheets as assets held for sale.