Note L - Restructuring of Operations

9 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Restructuring, Impairment, and Other Activities Disclosure [Text Block]

L. Restructuring of Operations

In response to challenging global market conditions within the Company’s oil and gas, global pleasure craft and commercial marine markets, the Company undertook a series of restructuring actions starting in late fiscal

2015,

and continuing into the current fiscal quarter.

In

March

2017,

the Company formally commenced the exit from its India manufacturing operations by announcing the closure of its India factory. Exit activities include the involuntary termination of its factory employees, termination of leased facilities, and sale and/or disposal of certain plant equipment. As a result of these activities, an asset impairment charge of

$87

is included in the statement of operations.

During the quarter, restructuring activities initiated in prior quarters continued. Such activities primarily involved the reduction of its workforce in its U.S., Belgian, and Italian manufacturing operations under a combination of voluntary and involuntary separation programs. These actions resulted in the elimination of

156

full-time employees in the manufacturing segment since

June

2015.

The restructuring expense for the quarter and for the

three

quarters ended

March

31,

2017

were

$293

and

$1,367,

respectively, and for the quarter and

three

quarters ended

March

25,

2016

were

$272

and

$787,

respectively. Accumulated costs to date under these programs are

$5,451.

The Company continues to evaluate restructuring actions as part of its cost reduction efforts and additional charges are expected to be incurred through the end of

December

2017.

The following is a roll-forward of restructuring activity:

Accrued restructuring liability, June 30, 2016	$	801
Additions during the year		1,367
Payments and adjustments		(1,629	)
Accrued restructuring liability, March 31, 2017	$	539

Other operating income included in the fiscal

2016

results pertain to the gain on sale of

one

of the Company’s distribution entities. The sale of this business was part of the Company’s initiative to focus its resources on core manufacturing and product development aimed at improving profitability.