Risks and Uncertainties

9 Months Ended

Mar. 29, 2020

Risks and Uncertainties [Abstract]

COVID

18. COVID-19

In March 2020, the World Health Organization characterized the coronavirus outbreak ("COVID-19") a pandemic,

and the President of the United States declared the COVID-19 outbreak a national emergency. The rapid

spread of the virus and the continuously evolving responses to combat it have had an increasingly

negative impact on the global economy.

To protect the health, safety and well-being of its employees, customers, channel partners and the public, the Company continues to implement preventative measures while also seeking to meet the needs of its global customers as an essential supplier to their businesses. These measures include more frequent and deeper cleaning of facilities; using appropriate social distancing, and other preventative practices; working remotely when possible; restricting business travel; cancelling certain events; and restricting visitor access to facilities.

In response to the spread of COVID-19, uncertain economic conditions resulting in reduced demand and potential constraints on its supply chain, the Company reduced manufacturing activity at several of its manufacturing facilities and temporarily shut down others. As discussed in Note 16, the Company also took other actions to manage expenditures in this fluid business environment. The Company will continue to monitor the situation and adjust manufacturing and other operations as the situation warrants.

For the third quarter of fiscal 2020, the Company estimates the COVID-19 pandemic negatively impacted sales by approximately $40 million and income from operations by approximately $11 million.

The Company is monitoring the progression of the pandemic and its potential effect on its financial position, results of operations, and cash flows. While the ultimate health and economic impact of the COVID-19 pandemic is highly uncertain, the Company expects that its business operations and results of operations, including the Company's net revenues, earnings and cash flows, will be materially adversely impacted for at least the remainder of fiscal year 2020.