Note 14 - Severance Costs

12 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Compensation and Employee Benefit Plans [Text Block]

NOTE

14

– SEVERANCE COSTS

The Company recorded severance charges of

$1,900,000,

523,000

and

$469,000

in fiscal

2018,

2017

and

2016,

respectively. This severance expense was related to reductions in staffing

not

related to plant restructuring. Included in fiscal

2018

severance expense is severance expense related to the departure of the Company’s Chief Executive Officer. See further discussion below.

The activity in the Company’s accrued severance liability was as follows for the

twelve

months ended

June 30, 2018

and

2017:

	Fiscal			Fiscal
	Year Ended			Year Ended
(In thousands)	June 30,			June 30,
	2018			2017
Balance at beginning of the period	$	235		$	39
Accrual of expense		1,900			523
Payments		(363	)		(313	)
Adjustments		—			(14	)
Balance at end of the period	$	1,772		$	235

On

April 23, 2018,

the Company’s Board of Directors announced the appointment of an interim Chief Executive Officer (CEO) and Chief Operating Officer in connection with the departure of Dennis Wells, the Company’s CEO. The

$1,772,000

severance liability represents the severance benefits Mr. Wells in entitled to receive under his employment agreement. Of the total

$1,772,000,

$640,000

has been classified as a current liability and will be paid out over the next

twelve

months. The remaining

$1,132,000

has been classified as a long-term liability.