Note 4 - Facility Relocation

6 Months Ended

Sep. 30, 2017

Restructuring and Related Activities Disclosure [Text Block]

Note

- Facility Relocation

August 2016,

we announced that we plan

ned 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

June 30

, 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

$622,000

in relocation costs for the

six

months ended

September 30, 2017,

of which

$353,000

and

$269,000

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 Sterilization and Disinfection Control segment, are as follows for the

six

months ended

September 30, 2017:

●

Retention bonuses for existing perso

nnel of

$259,000

●

Duplica

tive employment costs of

$97,000

●

Moving costs of

$266,000

Facility relocation amoun

ts accrued and paid for the

six

months ended

September 30, 2017

are as follows (in thousands):

Balance at March 31, 2017	$	673
Facility relocation expense		622
Cash payments		(570	)
Balance at September 30, 2017	$	725

July

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

which is included in other expense, net in the accompanying condensed consolidated statements of net income for the

six

months ended

September 30, 2017.

July 2017,

we put our old Boze

man facility up for sale. The assets associated with this facility are presented on the accompanying condensed consolidated balance sheets as of

September 30, 2017

as assets held for sale.