Note

Restructuring and Relocation Costs

Cold Chain Packaging

March 2019,

we announced that we will consolidate certain corporate administrative functions being performed in our Markham, Canada offices into our existing Lakewood, Colorado offices, and will close our Markham, Canada offices during the year ending

March 31, 2020.

Certain affected employees were offered an opportunity to continue in the organization, while most were offered a severance package. Costs associated with the closure are associated to the Cold Chain Packaging Reporting unit, or to general corporate costs. We recorded severance as a contractual termination benefit and recognized the expense of the qualified restructuring cost during the year ended

March 31, 2019.

We will record a liability for lease termination costs consisting of the net present value of remaining lease obligations, net of estimated sublease rentals that could be reasonably obtained, at the date we cease using the property, and measure fair value using Level

inputs (unobservable inputs). All other costs, including relocation costs, other office closure costs, and

third

-party costs, are recognized in the period incurred.

During the year ended

March 31, 2019,

we recorded

$150

related to employee severance and other transition costs into cost of sales, selling, or general and administrative costs on our Consolidated Statements of Operations, and we recorded a corresponding liability in accrued salaries and payroll taxes on our Consolidated Balance Sheets. During the year ending

March 31, 2020,

we expect to incur additional restructuring costs of

$150

$220,

consisting of: between

$65

$100

of employee relocation costs,

$10

$20

third

-party costs, and

$75

$100

of lease termination and other office closure costs.

Sterilization and Disinfection Control

August 2016,

we announced that we planned to shut down both our Omaha and Traverse City 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 was completed as of

June 30, 2018.

The total cost of the relocation was

$1,584

(which is comprised primarily of facility moving expenses, retention bonuses for existing personnel and payroll costs for duplicative personnel during the transition period) and these costs pertain to the Sterilization and Disinfection Control Division.

Facility relocation amounts accrued and paid for the year ended

March 31, 2019

are as follows:

Balance at March 31, 2018	408
Facility Relocation Expense	17
Cash payments	(425	)
Balance at March 31, 2019	-

We completed the sale of our old Bozeman facility during the year ended

March 31, 2019,

for

$2,222

(net of commissions) resulting in a gain of

$288,

which is recorded in other (income) expense, net on our Consolidated Statements of Operations.