COMMITMENTS AND CONTINGENCIES

9 Months Ended

Apr. 03, 2022

Commitments And Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

6. COMMITMENTS AND CONTINGENCIES

Purchase Commitments

In October 2021, the Company entered into a new supplier agreement to purchase marine outboard engines during fiscal 2022.  During the term of the agreement, the Company is committed to purchasing a minimum annual gross dollar value of $27.0 million in engines.

Legal Proceedings

The Company is subject to various litigation, claims and proceedings, which have arisen in the ordinary course of business. The Company accrues for litigation, claims and proceedings when a liability is both probable and the amount can be reasonably estimated.  

As of April 3, 2022, the Company’s accruals for litigation matters are not material. While these matters are subject to inherent uncertainties, management believes that current litigation, claims and proceedings, individually and in the aggregate, and after considering expected insurance reimbursements, are not likely to have a material adverse impact on the Company’s financial position, results of operations or cash flows.