Note L - Restructuring of Operations

9 Months Ended

Mar. 26, 2021

Notes to Financial Statements

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

L. Restructuring of Operations

The Company has implemented various restructuring programs in response to unfavorable macroeconomic trends in certain of the Company’s markets since the fourth quarter of fiscal 2015. These programs primarily involved the reduction of workforce in several of the Company’s manufacturing locations, under a combination of voluntary and involuntary programs. In its European operations, the Company also implemented actions to reorganize for productivity.

These actions resulted in restructuring charges of $251 and $777 in the quarter and three quarters ended March 26, 2021, respectively, and restructuring charges of $532 and $1,717 for the quarter and three quarters ended March 27, 2020.

Restructuring activities since June 2015 have resulted in the elimination of 249 full-time employees in the manufacturing segment. Accumulated costs to date under these programs within the manufacturing segment through March 26, 2021 were $13,182.

During the second quarter of fiscal 2020, a marine propulsion development program, for which the Company had provided development and production services, was terminated. The cost of exiting the contract consisted of a noncash write-off of assets and liabilities relating to the program amounting to $2,185, and a cash settlement to satisfy supplier commitments associated with the program amounting to $1,000. The Company classified the total contract exit cost of $3,185 as a restructuring charge, within the manufacturing segment, in the three quarters ended March 27, 2020.

The following is a roll-forward of restructuring activity:         

Accrued restructuring liability, June 30, 2020	$	84
Additions		777
Payments, adjustments and write-offs during the year		(646	)
Accrued restructuring liability, March 26, 2021	$	215