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Note 7. Credit Facilities - Textuals (Details)
$ in Thousands, € in Millions
5 Months Ended 12 Months Ended
Jun. 30, 2023
USD ($)
Jun. 30, 2023
USD ($)
Jun. 30, 2023
EUR (€)
Jun. 30, 2022
USD ($)
Credit Facility, Availability to Borrow $ 106,100 $ 106,100    
Long-term Line of Credit 281,500 281,500   $ 180,600
Current portion of borrowings under credit facilities 46,454 46,454   35,580
Long-term debt under credit facilities, less current portion $ 235,000 $ 235,000   $ 145,000
Debt, Weighted Average Interest Rate 6.80% 6.80% 6.80% 2.70%
Financial Standby Letter of Credit        
Unused standby letters of credit $ 400 $ 400   $ 400
Primary Credit Facility        
Credit Facility, Maximum Borrowing Capacity 300,000 300,000    
Credit Facility, Availability to Borrow [1] 27,500 27,500    
Long-term Line of Credit [1] 272,100 272,100   171,400
Long-term debt under credit facilities, less current portion [2] 235,000 235,000   145,000
Adjusted Leverage Ratio, Indebtedness Reduction For Excess Cash $ 15,000 $ 15,000    
Adjusted Leverage Ratio Covenant 3.0 3.0 3.0  
Adjusted Leverage Ratio Covenant Material Acquisition   3.5    
Primary Credit Facility | Minimum        
Line of Credit Facility, Alternate Base Rate Loans Spread   0.00000    
Primary Credit Facility | Maximum        
Line of Credit Facility, Alternate Base Rate Loans Spread   0.00750    
Secondary Credit Facility        
Credit Facility, Maximum Borrowing Capacity $ 50,000 $ 50,000    
Credit Facility, Availability to Borrow [3] 50,000 50,000    
Current portion of borrowings under credit facilities [3] 0 0   0
Adjusted Leverage Ratio, Indebtedness Reduction For Excess Cash $ 15,000 $ 15,000    
Adjusted Leverage Ratio Covenant 3.0 3.0 3.0  
Adjusted Leverage Ratio Covenant Material Acquisition 3.5      
Line of Credit Facility, Alternate Base Rate Loans Spread 0.00750      
Thailand Overdraft Credit Facility        
Credit Facility, Maximum Borrowing Capacity $ 10,100 $ 10,100    
Credit Facility, Availability to Borrow [4],[5] 10,100 10,100    
Current portion of borrowings under credit facilities [4],[5] 0 0   0
China Revolving Credit Facility        
Credit Facility, Maximum Borrowing Capacity 7,500 7,500    
Credit Facility, Availability to Borrow [4],[6] 7,500 7,500    
Current portion of borrowings under credit facilities [4],[6] 0 0   0
Netherlands Revolving Credit Facility        
Credit Facility, Maximum Borrowing Capacity 10,000 10,000 € 9.2  
Credit Facility, Availability to Borrow [4],[7] 600 600    
Current portion of borrowings under credit facilities [4],[7] 9,400 9,400   9,200
Poland Revolving Credit Facility        
Credit Facility, Maximum Borrowing Capacity 5,400 5,400 € 5.0  
Credit Facility, Availability to Borrow [4],[8] 5,400 5,400    
Current portion of borrowings under credit facilities [4],[8] 0 0   0
Vietnam Credit Facility        
Credit Facility, Maximum Borrowing Capacity 5,000 5,000    
Credit Facility, Availability to Borrow [4],[9] 5,000 5,000    
Current portion of borrowings under credit facilities [4],[9] $ 0 $ 0   $ 0
[1]     The Company maintains a U.S. primary credit facility (the “primary credit facility”) among the Company, the lenders party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent, and Bank of America, N.A., as Documentation Agent, scheduled to mature May 4, 2027. The primary credit facility provides for $300 million in borrowings, with an option to increase the amount available for borrowing to $450 million at the Company’s request, subject to the consent of each lender participating in such increase. This facility is maintained for working capital and general corporate purposes of the Company. A commitment fee is payable on the unused portion of the credit facility which was immaterial to our operating results in fiscal years 2023, 2022, and 2021. The commitment fee on the unused portion of principal amount of the credit facility is payable at a rate that ranges from 10.0 to 25.0 basis points per annum as determined by the Company’s ratio of consolidated total indebtedness to adjusted consolidated EBITDA, as defined in the primary credit facility. Types of borrowings available on the primary credit facility include revolving loans, multi-currency term loans, and swingline loans.
    The interest rate on borrowings is dependent on the type of borrowings and will be one of the following options:
any Term Benchmark borrowing denominated in U.S. Dollars will utilize the Secured Overnight Financing Rate (“SOFR”), which is a rate per annum equal to the secured overnight financing rate for such business day published by the SOFR Administrator, the Federal Reserve Bank of New York, on the immediately succeeding business day, plus the Revolving Commitment Term Benchmark spread which can range from 100.0 to 175.0 basis points based on the Company’s ratio of consolidated total indebtedness to adjusted consolidated EBITDA;
any Term Benchmark borrowing denominated in Euros will utilize the Euro Interbank Offered Rate (“EURIBOR”) in effect two target days prior to the advance (adjusted upwards to reflect bank reserve costs) for such interest period as defined in the agreement, plus the Revolving Commitment Term Benchmark spread which can range from 100.0 to 175.0 basis points based on the Company’s ratio of consolidated total indebtedness to adjusted consolidated EBITDA; or
the Alternate Base Rate (“ABR”), which is defined as the highest of the fluctuating rate per annum equal to the higher of:
a.Prime Rate in the U.S. last quoted by the Wall Street Journal, and if this is ceased to be quoted, the highest bank prime loan rate or similar loan rate quoted by the Federal Reserve Board;
b.1/2 of 1% per annum above the Federal Funds Effective Rate (as defined under the primary credit facility); or
c.1% per annum above the Adjusted SOFR Rate (as defined under the primary credit facility);
plus the Revolving Commitment ABR spread which can range from 0.0 to 75.0 basis points based on the Company’s ratio of consolidated total indebtedness to adjusted consolidated EBITDA.
    The Company’s financial covenants under the primary credit facility require:
a ratio of consolidated total indebtedness minus unencumbered U.S. cash on hand in the United States in excess of $15 million to adjusted consolidated EBITDA, determined as of the end of each of its fiscal quarters for the then most recently ended four fiscal quarters, to not be greater than 3.0 to 1.0 provided, however, that for each fiscal quarter end during the four quarter period following a material permitted acquisition, as defined in the Credit Agreement, the Company will not permit this financial covenant to be greater than 3.5 to 1.0 for each such fiscal quarter end, and,
an interest coverage ratio, defined as that ratio of consolidated EBITDA for such period to cash interest expense for such period, for any period of four consecutive fiscal quarters, to not be less than 3.5 to 1.0.
    The Company had $0.4 million in letters of credit contingently committed against the primary credit facility at both June 30, 2023 and 2022.
[2] The amount of Long-term debt under credit facilities, less current maturities reflects the borrowings on the primary credit facility that the Company intends, and has the ability, to refinance for a period longer than twelve months. The primary credit facility matures on May 4, 2027.
[3] The Company entered into a 364-day multi-currency revolving credit facility agreement on February 3, 2023 (the “secondary credit facility”), which allows for borrowings up to $50 million, among the Company, as borrower, certain subsidiaries of the Company as guarantors, the lenders party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent and Bank of America, N.A., as Documentation Agent. The secondary credit facility has a maturity date of February 2, 2024. The proceeds of the loans are to be used for working capital and general corporate purposes of the Company. A commitment fee on the unused portion of principal amount of this secondary credit facility is payable at 30.0 basis points per annum and was immaterial to our operating results in fiscal year 2023.
The interest rate on borrowings is dependent on the type of borrowings and will be one of the following options:
any Term Benchmark borrowing denominated in U.S. Dollars will utilize the Secured Overnight Financing Rate (“SOFR”), which is a rate per annum equal to the secured overnight financing rate for such business day published by the SOFR Administrator, the Federal Reserve Bank of New York, on the immediately succeeding business day, plus a Revolving Commitment Term Benchmark spread of 175.0 basis points;
any Term Benchmark borrowing denominated in Euros will utilize the Euro Interbank Offered Rate (“EURIBOR”) in effect two target days prior to the advance (adjusted upwards to reflect bank reserve costs) for such interest period as defined in the agreement, plus a Revolving Commitment Term Benchmark spread of 175.0 basis points; or
the Alternate Base Rate (“ABR”), which is defined as the highest of the fluctuating rate per annum equal to the higher of:
a.Prime Rate in the U.S. last quoted by the Wall Street Journal, and if this is ceased to be quoted, the highest bank prime loan rate or similar loan rate quoted by the Federal Reserve Board;
b.1/2 of 1% per annum above the Federal Funds Effective Rate (as defined under the primary credit facility); or
c.1% per annum above the Adjusted SOFR Rate (as defined under the primary credit facility);
plus a Revolving Commitment ABR spread of 75.0 basis points.
The Company’s financial covenants under this secondary credit facility are the same as the financial covenants for its primary credit facility.
[4] The Company also maintains foreign credit facilities for working capital and general corporate purposes at specific foreign locations rather than utilizing funding from intercompany sources. These foreign credit facilities can be canceled at any time by either the bank or us and generally include renewal clauses. Interest on borrowing under these facilities is charged at a rate as defined under the respective foreign credit facility.
[5] The Company maintains a foreign credit facility for its operation in Thailand which allows for borrowings of up to $10.1 million.
[6] The Company entered into a foreign credit facility for its EMS operation in China during the current fiscal year which allows for borrowings up to $7.5 million that can be drawn in either U.S. dollars or China Renminbi.
[7] The Company also maintains an uncommitted revolving credit facility for our Netherlands subsidiary. The Netherlands credit facility allows for borrowings of up to 9.2 million Euro (approximately $10.0 million at June 30, 2023 exchange rates), which borrowings can be made in Euro, U.S. dollars, or other optional currency. Interest on borrowing under this facility is charged at a rate of interest dependent on the denomination of the currency borrowed.
[8] The Company entered into a foreign credit facility for its operation in Poland which allows for borrowings up to 5.0 million Euro (approximately $5.4 million equivalent).
[9] The Company entered into a foreign credit facility for its operation in Vietnam which allows for borrowings up to $5.0 million.