Washington | 91-0849125 | |
(State or other jurisdiction of Incorporation or organization) | (I.R.S. Employer Identification No.) | |
N. 4424 Sullivan Road, Spokane Valley, Washington | 99216 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Name of each exchange on which registered | |
Common stock, no par value | The NASDAQ Stock Market LLC |
Large accelerated filer | ¨ | Accelerated filer | x | |||
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ | |||
Emerging growth company | ¨ |
Page No. | ||
PART I | ||
Item 1. | ||
Item 1A. | ||
Item 1B. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II | ||
Item 5. | ||
Item 6. | ||
Item 7. | ||
Item 7A. | ||
Item 8. | 31-56 | |
Item 9. | ||
Item 9A. | ||
Item 9B. | ||
PART III | ||
Item 10. | ||
Item 11. | ||
Item 12. | ||
Item 13. | ||
Item 14. | ||
PART IV | ||
Item 15. | ||
Item 1. | BUSINESS |
Percentage of Net Sales by Fiscal Year | |||||
2017 | 2016 | 2015 | |||
Customer A | 18% | 18% | 17% |
Name | Age | Positions Held |
Executive Officers | ||
Craig D. Gates | 58 | President and Chief Executive Officer |
Brett R. Larsen | 44 | Executive Vice President of Administration, Chief Financial Officer, and Treasurer |
Douglas G. Burkhardt | 59 | Executive Vice President of Worldwide Operations |
Philip S. Hochberg | 55 | Executive Vice President of Business Development |
Lawrence J. Bostwick | 65 | Vice President of Regulatory Affairs |
David H. Knaggs | 36 | Vice President of Quality |
Frank Crispigna III | 56 | Vice President of Materials |
Duane D. Mackleit | 49 | Vice President of Program Management |
Chad T. Orebaugh | 46 | Vice President of Engineering |
Item 1A. | RISK FACTORS |
• | difficulties in staffing, turnover and managing onshore and offshore operations; |
• | political and economic instability (including acts of terrorism, pandemics, civil unrest, forms of violence and outbreaks of war), which could impact our ability to ship, manufacture, and/or receive product; |
• | unexpected changes in regulatory requirements and laws; |
• | longer customer payment cycles and difficulty collecting accounts receivable; |
• | export duties, import controls and trade barriers (including quotas); |
• | governmental restrictions on the transfer of funds; |
• | burdens of complying with a wide variety of foreign laws and labor practices; |
• | our locations may be impacted by hurricanes, tornadoes, earthquakes, water shortages, tsunamis, floods, typhoons, fires, extreme weather conditions and other natural or man-made disasters. |
Item 1B. | UNRESOLVED STAFF COMMENTS |
Item 2. | PROPERTIES AS OF DATE OF FILING |
Location | Approx. Sq. Ft. | Type of Interest (Leased/Owned) | Description of Use | ||||
Corinth, Mississippi | 350,000 | Leased | Manufacturing and warehouse | ||||
El Paso, Texas | 80,000 | Leased | Shipping and warehouse | ||||
Fayetteville, Arkansas | 175,000 | Leased | Manufacturing and warehouse | ||||
Harrodsburg, Kentucky (1) | 22,000 | Owned | Manufacturing and warehouse | ||||
Louisville, Kentucky | 2,000 | Leased | Administration | ||||
Oakdale, Minnesota | 60,000 | Leased | Manufacturing and warehouse | ||||
Spokane Valley, Washington | 95,000 | Leased | Sales, research, administration and manufacturing | ||||
Spokane Valley, Washington | 36,000 | Leased | Manufacturing | ||||
Total USA | 820,000 | ||||||
Juarez, Mexico | 193,000 | Leased | Warehouse | ||||
Juarez, Mexico | 174,000 | Owned | Manufacturing | ||||
Juarez, Mexico | 115,000 | Owned | Manufacturing and warehouse | ||||
Juarez, Mexico | 103,000 | Owned | Manufacturing and warehouse | ||||
Juarez, Mexico | 72,000 | Leased | Manufacturing | ||||
Juarez, Mexico | 66,000 | Owned | Manufacturing and warehouse | ||||
Juarez, Mexico | 60,000 | Owned | Manufacturing and warehouse | ||||
Total Mexico | 783,000 | ||||||
Shanghai, China | 121,000 | Leased | Manufacturing and warehouse | ||||
Shanghai, China | 36,000 | Leased | Manufacturing | ||||
Total China | 157,000 | ||||||
Grand Total | 1,760,000 |
(1) | During fiscal year 2017, we closed the Harrodsburg, Kentucky location and transferred customer programs to other facilities in the USA. The facility is currently listed for sale. Additionally, the property is not yet actively marketed and sale of the building in less than one year is not probable at this time. As such, the property is appropriately being reported in Property, Plant, and Equipment. |
Item 3. | LEGAL PROCEEDINGS |
Item 4. | MINE SAFETY DISCLOSURES |
Item 5: | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES |
2017 | 2016 | ||||||||||||||
High | Low | High | Low | ||||||||||||
First Quarter | $ | 8.28 | $ | 7.23 | $ | 11.15 | $ | 9.75 | |||||||
Second Quarter | 8.18 | 7.08 | 10.39 | 7.50 | |||||||||||
Third Quarter | 8.20 | 7.08 | 8.47 | 6.09 | |||||||||||
Fourth Quarter | 8.00 | 6.69 | 8.97 | 6.99 |
6/30/2012 | 6/29/2013 | 6/28/2014 | 6/27/2015 | 7/2/2016 | 7/1/2017 | ||||||||||||
Key Tronic Corporation | 100.00 | 125.61 | 130.22 | 129.37 | 89.68 | 86.04 | |||||||||||
NASDAQ Composite | 100.00 | 117.69 | 155.50 | 177.19 | 173.36 | 221.11 | |||||||||||
NASDAQ Electronic Components | 100.00 | 108.97 | 149.17 | 164.19 | 178.10 | 251.18 |
Item 6: | SELECTED FINANCIAL DATA |
Fiscal Year Ended | |||||||||||||||||||
July 1, 2017 | July 2, 2016 | June 27, 2015 (3) | June 28, 2014(3) | June 29, 2013 | |||||||||||||||
Consolidated Statements of Operations Data: | |||||||||||||||||||
Net sales | $ | 467,797 | $ | 484,965 | $ | 433,997 | $ | 305,394 | $ | 361,033 | |||||||||
Gross profit | 38,300 | 38,825 | 33,305 | 26,854 | 34,512 | ||||||||||||||
Gross margin percentage | 8.2 | % | 8.0 | % | 7.7 | % | 8.8 | % | 9.6 | % | |||||||||
Operating income | 9,544 | 10,416 | 6,653 | 9,304 | 18,126 | ||||||||||||||
Operating margin percentage | 2.0 | % | 2.1 | % | 1.5 | % | 3.0 | % | 5.0 | % | |||||||||
Net income | 5,617 | 6,533 | 4,304 | 7,613 | 12,583 | ||||||||||||||
Earnings per share – diluted | 0.51 | 0.58 | 0.38 | 0.67 | 1.12 | ||||||||||||||
Consolidated Cash Flow Data: | |||||||||||||||||||
Cash flows provided by operations | 9,425 | 4,580 | 7,667 | 1,458 | 29,282 | ||||||||||||||
Capital expenditures | 9,307 | 13,277 | 8,808 | 7,763 | 3,470 | ||||||||||||||
Consolidated Balance Sheet Data: | |||||||||||||||||||
Net working capital (1) | 100,440 | 97,349 | 98,318 | 71,049 | 73,827 | ||||||||||||||
Total assets | 232,840 | 235,924 | 230,794 | 156,660 | 135,130 | ||||||||||||||
Long-term liabilities | 38,520 | 46,232 | 43,237 | 848 | 3,030 | ||||||||||||||
Shareholders’ equity | 116,567 | 105,582 | 100,768 | 103,645 | 94,160 | ||||||||||||||
Book value per share (2) | $ | 10.83 | $ | 9.84 | $ | 9.42 | $ | 9.83 | $ | 8.97 | |||||||||
Supplemental Data: | |||||||||||||||||||
Number of shares outstanding at year-end | 10,759,680 | 10,725,349 | 10,706,136 | 10,546,750 | 10,502,188 | ||||||||||||||
Number of employees at year-end | 5,038 | 4,947 | 4,866 | 3,343 | 2,584 | ||||||||||||||
Approximate square footage of operational facilities | 1,760,000 | 1,828,000 | 1,892,000 | 1,139,000 | 1,011,000 |
(1) | Net working capital is defined as total current assets less total current liabilities. Net working capital measures the portion of current assets that are financed by long term funds and is an indicator of short term financial management. |
(2) | Book value per share is defined as total shareholders’ equity divided by the number of shares outstanding at the end of the fiscal year. |
(3) | Reflects the acquisition of Ayrshire on September 3, 2014 in fiscal year 2015 and Sabre on July 1, 2013 in fiscal year 2014. |
Item 7: | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Fiscal Year Ended | |||||||||||||||||
July 1, 2017 | % of net sales | July 2, 2016 | % of net sales | $ change | % point change | ||||||||||||
Net sales | $ | 467,797 | 100.0% | $ | 484,965 | 100.0% | $ | (17,168 | ) | — | |||||||
Cost of sales | 429,497 | 91.8 | 446,140 | 92.0 | (16,643 | ) | (0.2) | ||||||||||
Gross profit | 38,300 | 8.2 | 38,825 | 8.0 | (525 | ) | 0.2 | ||||||||||
Operating expenses: | |||||||||||||||||
Research, development and engineering | 6,393 | 1.4 | 6,397 | 1.3 | (4 | ) | 0.1 | ||||||||||
Selling, general and administrative | 22,363 | 4.8 | 22,012 | 4.5 | 351 | 0.3 | |||||||||||
Total operating expenses | 28,756 | 6.2 | 28,409 | 5.8 | 347 | 0.4 | |||||||||||
Operating income | 9,544 | 2.0 | 10,416 | 2.1 | (872 | ) | (0.1) | ||||||||||
Interest expense, net | 2,288 | 0.4 | 2,265 | 0.5 | 23 | (0.1) | |||||||||||
Income before income taxes | 7,256 | 1.6 | 8,151 | 1.7 | (895 | ) | (0.1) | ||||||||||
Income tax provision | 1,639 | 0.4 | 1,618 | 0.3 | 21 | 0.1 | |||||||||||
Net income | $ | 5,617 | 1.2% | $ | 6,533 | 1.3% | $ | (916 | ) | (0.1) | |||||||
Effective income tax rate | 22.6 | % | 19.9 | % |
Fiscal Year Ended | |||
July 1, 2017 | July 2, 2016 | ||
Industrial | 40% | 39% | |
Consumer | 35 | 31 | |
Gaming | 9 | 7 | |
Communication | 8 | 13 | |
Printers | 5 | 6 | |
Computer and Peripheral | 2 | 1 | |
Transportation | 1 | 3 | |
Total | 100% | 100% |
• | Key Tronic Juarez, SA de CV owns five facilities and leases two facilities in Juarez, Mexico. These facilities include an SMT facility, an assembly and molding facility, a sheet metal fabrication facility, and assembly and storage facilities. This subsidiary is primarily used to support our U.S. operations. |
• | Key Tronic Computer Peripherals (Shanghai) Co., Ltd. leases two facilities with SMT, assembly, global purchasing and warehouse capabilities in Shanghai, China, which began operations in 1999. Its primary function is to provide EMS services for export. |
Fiscal Year Ended | |||||||||||||||||
July 2, 2016 | % of net sales | June 27, 2015 | % of net sales | $ change | % point change | ||||||||||||
Net sales | $ | 484,965 | 100.0% | $ | 433,997 | 100.0% | $ | 50,968 | — | ||||||||
Cost of sales | 446,140 | 92.0 | 400,692 | 92.3 | 45,448 | (0.3) | |||||||||||
Gross profit | 38,825 | 8.0 | 33,305 | 7.7 | 5,520 | 0.3 | |||||||||||
Operating expenses: | |||||||||||||||||
Research, development and engineering | 6,397 | 1.3 | 5,784 | 1.3 | 613 | — | |||||||||||
Selling, general and administrative | 22,012 | 4.5 | 20,868 | 4.8 | 1,144 | (0.3) | |||||||||||
Total operating expenses | 28,409 | 5.8 | 26,652 | 6.1 | 1,757 | (0.3) | |||||||||||
Operating income | 10,416 | 2.1 | 6,653 | 1.5 | 3,763 | 0.6 | |||||||||||
Interest expense, net | 2,265 | 0.5 | 1,353 | 0.3 | 912 | 0.2 | |||||||||||
Income before income taxes | 8,151 | 1.7 | 5,300 | 1.2 | 2,851 | 0.5 | |||||||||||
Income tax provision | 1,618 | 0.3 | 996 | 0.2 | 622 | 0.1 | |||||||||||
Net income | $ | 6,533 | 1.3% | $ | 4,304 | 1.0% | $ | 2,229 | 0.3 | ||||||||
Effective income tax rate | 19.9 | % | 18.8 | % |
Fiscal Year Ended | |||
July 2, 2016 | June 27, 2015 | ||
Industrial | 39% | 34% | |
Consumer | 31 | 28 | |
Communication | 13 | 16 | |
Gaming | 7 | 6 | |
Printers | 6 | 6 | |
Transportation | 3 | 8 | |
Computer and Peripheral | 1 | 2 | |
Total | 100% | 100% |
Total | 2018 | 2019 | 2020 | 2021 | 2022 | Thereafter | |||||||||||||||||||||
Term loans (1) | $ | 24,733 | $ | 5,871 | $ | 5,871 | $ | 12,120 | $ | 871 | $ | — | $ | — | |||||||||||||
Wells Fargo Bank N.A. revolving loan (2) | $ | 18,335 | $ | — | $ | — | $ | 18,335 | $ | — | $ | — | $ | — | |||||||||||||
Operating leases (3) | $ | 14,892 | $ | 6,747 | $ | 3,979 | $ | 1,873 | $ | 1,114 | $ | 325 | $ | 854 | |||||||||||||
Purchase orders (4) |
(1) | The terms of the Wells Fargo Bank N.A. term loans are discussed in the consolidated financial statements at Note 4, “Long-Term Debt.” Principal on the term loan is payable in equal quarterly installments of $1.25 million through June 15, 2019, with final installment of all remaining unpaid principal due on August 31, 2019. The equipment term loan is payable in equal quarterly payments of approximately $0.2 million which commenced on March 31, 2017 and will continue through the maturity of the equipment term loan on June 30, 2021. |
(2) | The terms of the Wells Fargo Bank N.A. revolving loan are discussed in the consolidated financial statements at Note 4, “Long-Term Debt.” As of July 1, 2017, we were in compliance with our loan covenants. Breaching these covenants could have resulted in a material impact on our operations or financial condition and could impact our ability to borrow under this facility in the future. |
(3) | We maintain vertically integrated manufacturing operations in the United States, Mexico and China. We lease some of our administrative and manufacturing facilities and equipment. A complete discussion of properties can be found in Part 1, Item 2 at “Properties.” Leases have proven to be an acceptable method for us to acquire new or replacement equipment and to maintain facilities with a minimum impact on our short term cash flows for operations. In addition, such operations are heavily dependent upon technically superior manufacturing equipment including molding machines in various tonnages, Surface Mount Technology (SMT) lines, sheet metal fabrication and stamping machines, clean rooms, and automated insertion, and test equipment for the various products we are capable of producing. |
(4) | As of July 1, 2017, we had open purchase order commitments for materials and other supplies of approximately $28.9 million. Included in the open purchase orders are various blanket orders for annual requirements. Actual needs under these blanket purchase orders fluctuate with our manufacturing levels and as such cannot be broken out between fiscal years. In addition, we have contracts with many of our customers that minimize our exposure to losses for material purchased within lead-times necessary to meet customer forecasts. Purchase orders generally can be cancelled without penalty within specified ranges that are determined in negotiations with our suppliers. These agreements depend in part on the type of materials purchased as well as the circumstances surrounding any requested cancellations. |
Item 7A: | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Item 8: | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
/s/ BDO USA, LLP |
Spokane, Washington |
September 8, 2017 |
July 1, 2017 | July 2, 2016 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 373 | $ | 1,018 | |||
Trade receivables, net of allowance for doubtful accounts of $84 and $135 | 65,193 | 61,678 | |||||
Inventories, net | 101,590 | 107,006 | |||||
Other | 11,037 | 11,757 | |||||
Total current assets | 178,193 | 181,459 | |||||
Property, plant and equipment, net | 30,496 | 27,925 | |||||
Other assets: | |||||||
Deferred income tax asset | 6,981 | 8,982 | |||||
Goodwill | 9,957 | 9,957 | |||||
Other intangible assets, net | 4,800 | 5,928 | |||||
Other | 2,413 | 1,673 | |||||
Total other assets | 24,151 | 26,540 | |||||
Total assets | $ | 232,840 | $ | 235,924 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 53,078 | $ | 58,967 | |||
Accrued compensation and vacation | 10,005 | 9,571 | |||||
Current portion of debt, net | 5,841 | 5,000 | |||||
Other | 8,829 | 10,572 | |||||
Total current liabilities | 77,753 | 84,110 | |||||
Long-term liabilities: | |||||||
Term loans | 18,773 | 21,250 | |||||
Revolving loan | 18,335 | 18,073 | |||||
Other long-term obligations | 1,412 | 6,909 | |||||
Total long-term liabilities | 38,520 | 46,232 | |||||
Total liabilities | 116,273 | 130,342 | |||||
Commitments and contingencies (Note 4 and 9) | |||||||
Shareholders’ equity: | |||||||
Common stock, no par value—shares authorized 25,000; issued and outstanding 10,760 and 10,725 shares, respectively | 45,797 | 45,227 | |||||
Retained earnings | 73,545 | 67,928 | |||||
Accumulated other comprehensive loss | (2,775 | ) | (7,573 | ) | |||
Total shareholders’ equity | 116,567 | 105,582 | |||||
Total liabilities and shareholders’ equity | $ | 232,840 | $ | 235,924 |
Fiscal Year Ended | |||||||||||
July 1, 2017 | July 2, 2016 | June 27, 2015 | |||||||||
Net sales | $ | 467,797 | $ | 484,965 | $ | 433,997 | |||||
Cost of sales | 429,497 | 446,140 | 400,692 | ||||||||
Gross profit | 38,300 | 38,825 | 33,305 | ||||||||
Research, development and engineering expenses | 6,393 | 6,397 | 5,784 | ||||||||
Selling, general and administrative expenses | 22,363 | 22,012 | 20,868 | ||||||||
Total operating expenses | 28,756 | 28,409 | 26,652 | ||||||||
Operating income | 9,544 | 10,416 | 6,653 | ||||||||
Interest expense, net | 2,288 | 2,265 | 1,353 | ||||||||
Income before income taxes | 7,256 | 8,151 | 5,300 | ||||||||
Income tax provision | 1,639 | 1,618 | 996 | ||||||||
Net income | $ | 5,617 | $ | 6,533 | $ | 4,304 | |||||
Net income per share — Basic | $ | 0.52 | $ | 0.61 | $ | 0.41 | |||||
Weighted average shares outstanding — Basic | 10,756 | 10,710 | 10,572 | ||||||||
Net income per share — Diluted | $ | 0.51 | $ | 0.58 | $ | 0.38 | |||||
Weighted average shares outstanding — Diluted | 10,917 | 11,278 | 11,286 |
Fiscal Year Ended | |||||||||||
July 1, 2017 | July 2, 2016 | June 27, 2015 | |||||||||
Comprehensive income (loss): | |||||||||||
Net income | $ | 5,617 | $ | 6,533 | $ | 4,304 | |||||
Other comprehensive income (loss): | |||||||||||
Unrealized gain (loss) on hedging instruments, net of tax | 4,798 | (2,810 | ) | (7,166 | ) | ||||||
Comprehensive income (loss) | $ | 10,415 | $ | 3,723 | $ | (2,862 | ) |
Fiscal Year Ended | |||||||||||
July 1, 2017 | July 2, 2016 | June 27, 2015 | |||||||||
Operating activities: | |||||||||||
Net income | $ | 5,617 | $ | 6,533 | $ | 4,304 | |||||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||||||
Depreciation and amortization | 7,232 | 6,162 | 5,910 | ||||||||
Amortization of deferred loan costs | 17 | — | — | ||||||||
Excess tax benefit from exercise of stock options | — | (402 | ) | (50 | ) | ||||||
Provision for obsolete inventory | 496 | 757 | 520 | ||||||||
Provision for warranty | 68 | 95 | 115 | ||||||||
(Recovery of) provision for doubtful accounts | (10 | ) | 38 | 97 | |||||||
Loss on disposal of assets | 101 | — | 70 | ||||||||
Share-based compensation expense | 692 | 764 | 732 | ||||||||
Deferred income taxes | (471 | ) | (1,313 | ) | (1,517 | ) | |||||
Changes in operating assets and liabilities, net of acquisition: | |||||||||||
Trade receivables | (3,505 | ) | 11,136 | (2,080 | ) | ||||||
Inventories | 4,920 | (16,169 | ) | (14,708 | ) | ||||||
Other assets | 636 | 1,739 | (4,249 | ) | |||||||
Accounts payable | (5,889 | ) | (2,561 | ) | 17,999 | ||||||
Accrued compensation and vacation | 434 | 104 | (283 | ) | |||||||
Other liabilities | (913 | ) | (2,303 | ) | 807 | ||||||
Cash provided by operating activities | 9,425 | 4,580 | 7,667 | ||||||||
Investing activities: | |||||||||||
Payment for acquisition, net of cash acquired | — | — | (47,964 | ) | |||||||
Purchases of property and equipment | (9,307 | ) | (13,277 | ) | (8,808 | ) | |||||
Proceeds from sale of fixed assets | 834 | 7,612 | 8,641 | ||||||||
Cash used in investing activities | (8,473 | ) | (5,665 | ) | (48,131 | ) | |||||
Financing activities: | |||||||||||
Payment of financing costs | (221 | ) | (113 | ) | (62 | ) | |||||
Proceeds from issuance of long term debt | 3,919 | — | 35,000 | ||||||||
Repayments of long term debt | (5,435 | ) | (5,000 | ) | (3,750 | ) | |||||
Borrowings under revolving credit agreement | 161,240 | 197,568 | 137,987 | ||||||||
Repayments of revolving credit agreement | (160,978 | ) | (191,126 | ) | (126,356 | ) | |||||
Proceeds from accounts receivable transfer agreement | — | — | 1,116 | ||||||||
Payments towards accounts receivable transfer agreement | — | — | (8,969 | ) | |||||||
Excess tax benefit from exercise of stock options | — | 402 | 50 | ||||||||
Proceeds from exercise of stock options | — | — | 17 | ||||||||
Tax withholding from exercise of share-based compensation | (122 | ) | — | — | |||||||
Cash (used in) provided by financing activities | (1,597 | ) | 1,731 | 35,033 | |||||||
Net (decrease) increase in cash and cash equivalents | (645 | ) | 646 | (5,431 | ) | ||||||
Cash and cash equivalents, beginning of period | 1,018 | 372 | 5,803 | ||||||||
Cash and cash equivalents, end of period | $ | 373 | $ | 1,018 | $ | 372 | |||||
Supplemental cash flow information: | |||||||||||
Interest payments | $ | 2,238 | $ | 2,308 | $ | 1,221 | |||||
Income tax payments, net of refunds | $ | 1,799 | $ | 813 | $ | 3,274 |
Shares | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | ||||||||||||||
Balances, June 28, 2014 | 10,547 | $ | 44,151 | $ | 57,091 | $ | 2,403 | $ | 103,645 | |||||||||
Net income | — | — | 4,304 | — | 4,304 | |||||||||||||
Unrealized loss on hedging instruments, net | — | — | — | (7,166 | ) | (7,166 | ) | |||||||||||
Exercise of stock options | 5 | 17 | — | — | 17 | |||||||||||||
Exercise of stock appreciation rights | 223 | — | — | — | — | |||||||||||||
Shares withheld for taxes | (69 | ) | (814 | ) | — | — | (814 | ) | ||||||||||
Share-based compensation | — | 732 | — | — | 732 | |||||||||||||
Excess tax benefit from share-based compensation | — | 50 | — | — | 50 | |||||||||||||
Balances, June 27, 2015 | 10,706 | $ | 44,136 | $ | 61,395 | $ | (4,763 | ) | $ | 100,768 | ||||||||
Net income | — | — | 6,533 | — | 6,533 | |||||||||||||
Unrealized loss on hedging instruments, net | — | — | — | (2,810 | ) | (2,810 | ) | |||||||||||
Exercise of stock appreciation rights | 28 | — | — | — | — | |||||||||||||
Shares withheld for taxes | (9 | ) | (75 | ) | — | — | (75 | ) | ||||||||||
Share-based compensation | — | 764 | — | — | 764 | |||||||||||||
Excess tax benefit from share-based compensation | — | 402 | — | — | 402 | |||||||||||||
Balances, July 2, 2016 | 10,725 | $ | 45,227 | $ | 67,928 | $ | (7,573 | ) | $ | 105,582 | ||||||||
Net income | — | — | 5,617 | — | 5,617 | |||||||||||||
Unrealized gain on hedging instruments, net | — | — | — | 4,798 | 4,798 | |||||||||||||
Exercise of stock appreciation rights | 49 | — | — | — | — | |||||||||||||
Shares withheld for taxes | (14 | ) | (122 | ) | — | — | (122 | ) | ||||||||||
Share-based compensation | — | 692 | — | — | 692 | |||||||||||||
Balances, July 1, 2017 | 10,760 | $ | 45,797 | $ | 73,545 | $ | (2,775 | ) | $ | 116,567 |
July 1, 2017 | July 2, 2016 | ||||||
Finished goods | $ | 12,244 | $ | 13,384 | |||
Work-in-process | 20,596 | 18,988 | |||||
Raw materials and supplies | 68,750 | 74,634 | |||||
$ | 101,590 | $ | 107,006 |
Life | July 1, 2017 | July 2, 2016 | |||||||
(in years) | (in thousands) | ||||||||
Land | — | $ | 2,940 | $ | 2,940 | ||||
Buildings and improvements | 3 to 30 | 23,158 | 23,737 | ||||||
Equipment | 1 to 10 | 57,848 | 53,095 | ||||||
Furniture and fixtures | 3 to 5 | 3,512 | 2,924 | ||||||
87,458 | 82,696 | ||||||||
Accumulated depreciation | (56,962 | ) | (54,771 | ) | |||||
$ | 30,496 | $ | 27,925 |
Fiscal Years Ending | Amount | ||
2018 | $ | 5,871 | |
2019 | 5,871 | ||
2020 | 30,455 | ||
2021 | 871 | ||
2022 | — | ||
Total debt | $ | 43,068 | |
Unamortized debt issuance costs | $ | (119 | ) |
Long-term debt, net of debt issuance costs | $ | 42,949 |
Fiscal Year Ended | |||||||||||
July 1, 2017 | July 2, 2016 | June 27, 2015 | |||||||||
(in thousands) | |||||||||||
Current income tax provision: | |||||||||||
United States | $ | 1,231 | $ | 1,014 | $ | 1,701 | |||||
Foreign | 1,206 | 1,960 | 975 | ||||||||
2,437 | 2,974 | 2,676 | |||||||||
Deferred income tax benefit: | |||||||||||
United States | (539 | ) | (1,285 | ) | (1,486 | ) | |||||
Foreign | (259 | ) | (71 | ) | (194 | ) | |||||
(798 | ) | (1,356 | ) | (1,680 | ) | ||||||
Total income tax provision | $ | 1,639 | $ | 1,618 | $ | 996 |
Fiscal Year Ended | |||||||||||
July 1, 2017 | July 2, 2016 | June 27, 2015 | |||||||||
(in thousands) | |||||||||||
Federal income tax provision at statutory rates | $ | 2,467 | $ | 2,771 | $ | 1,802 | |||||
State income taxes, net of federal tax effect | 175 | 250 | 133 | ||||||||
Foreign tax rate differences | (156 | ) | (442 | ) | (80 | ) | |||||
Effect of income tax credits | (738 | ) | (1,254 | ) | (1,085 | ) | |||||
Effect of repatriation of foreign earnings, net | 199 | (161 | ) | (80 | ) | ||||||
Other | (308 | ) | 454 | 124 | |||||||
Transaction costs | — | — | 182 | ||||||||
Income tax provision | $ | 1,639 | $ | 1,618 | $ | 996 |
Fiscal Year Ended | |||||||||||
July 1, 2017 | July 2, 2016 | June 27, 2015 | |||||||||
(in thousands) | |||||||||||
Domestic | $ | 3,553 | $ | 2,228 | $ | 3,395 | |||||
Foreign | 3,703 | 5,923 | 1,905 | ||||||||
Income before income taxes | $ | 7,256 | $ | 8,151 | $ | 5,300 |
July 1, 2017 | July 2, 2016 | ||||||
(in thousands) | |||||||
Deferred tax assets: | |||||||
Tax credit carryforwards, net | $ | 4,164 | $ | 4,056 | |||
Foreign subsidiaries - future tax credits | 840 | 840 | |||||
Inventory | 840 | 508 | |||||
Accruals | 4,020 | 4,270 | |||||
Mark-to-market adjustments | 1,443 | 4,043 | |||||
Other | 28 | 86 | |||||
Deferred income tax assets | $ | 11,335 | $ | 13,803 | |||
Deferred tax liabilities: | |||||||
Foreign subsidiaries – unremitted earnings | (2,288 | ) | (2,098 | ) | |||
Fixed assets | (456 | ) | (1,025 | ) | |||
Identifiable intangibles | (1,308 | ) | (1,613 | ) | |||
Other | (302 | ) | (85 | ) | |||
Deferred income tax liabilities | $ | (4,354 | ) | $ | (4,821 | ) | |
Net deferred income tax assets | $ | 6,981 | $ | 8,982 | |||
Balance sheet caption reported in: | |||||||
Long-term deferred income tax asset | $ | 6,981 | $ | 8,982 | |||
Net deferred income tax asset | $ | 6,981 | $ | 8,982 |
Fiscal Year Ended | |||||||||||
July 1, 2017 | July 2, 2016 | June 27, 2015 | |||||||||
(in thousands) | |||||||||||
Beginning Balance | $ | 3,760 | $ | 3,446 | $ | 3,072 | |||||
Additions based on tax positions related to the current year | 187 | 314 | 374 | ||||||||
Ending Balance | $ | 3,947 | $ | 3,760 | $ | 3,446 |
Fiscal Year Ended (in thousands, except per share information) | |||||||||||
July 1, 2017 | July 2, 2016 | June 27, 2015 | |||||||||
Net income | $ | 5,617 | $ | 6,533 | $ | 4,304 | |||||
Weighted average shares outstanding– basic | 10,756 | 10,710 | 10,572 | ||||||||
Effect of dilutive common stock awards | 161 | 568 | 714 | ||||||||
Weighted average shares outstanding – diluted | 10,917 | 11,278 | 11,286 | ||||||||
Earnings per share – basic | $ | 0.52 | $ | 0.61 | $ | 0.41 | |||||
Earnings per share – diluted | $ | 0.51 | $ | 0.58 | $ | 0.38 | |||||
Antidilutive SARs not included in diluted earnings per share | 892 | 442 | 208 |
Fiscal Year 2017 | |
October 28, 2016 | |
Expected dividend yield | —% |
Risk – free interest rate | 1.63% |
Expected volatility | 33.43% |
Expected life | 4.00 |
Fiscal Year 2017 | |
July 26, 2016 | |
Expected dividend yield | —% |
Risk – free interest rate | 0.93% |
Expected volatility | 36.13% |
Expected life | 4.00 |
Fiscal Year 2016 | |
July 29, 2015 | |
Expected dividend yield | —% |
Risk – free interest rate | 1.39% |
Expected volatility | 43.66% |
Expected life | 4.00 |
Fiscal Year 2015 | |
October 31, 2014 | |
Expected dividend yield | —% |
Risk – free interest rate | 1.39% |
Expected volatility | 45.67% |
Expected life | 4.00 |
SARs Available For Grant | SARs Outstanding | Aggregate Intrinsic Value (in thousands) | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (in years) | |||||||||||
Balances, June 28, 2014 | 69,002 | 1,065,928 | $ | 4,096 | $ | 7.01 | 1.8 | ||||||||
Shares authorized | 1,000,000 | — | |||||||||||||
SARs granted | (213,166 | ) | 213,166 | 8.22 | |||||||||||
SARs forfeited | — | — | — | ||||||||||||
Options/SARs exercised | — | (465,263 | ) | 1,877 | 5.84 | ||||||||||
Balances, June 27, 2015 | 855,836 | 813,831 | $ | 2,312 | $ | 7.99 | 2.5 | ||||||||
Shares authorized | — | ||||||||||||||
SARs granted | (248,166 | ) | 248,166 | 10.26 | |||||||||||
SARs forfeited | 26,999 | (26,999 | ) | 9.48 | |||||||||||
SARs exercised | — | (63,333 | ) | 165 | 4.56 | ||||||||||
Balances, July 2, 2016 | 634,669 | 971,665 | $ | 339 | $ | 8.75 | 2.4 | ||||||||
Shares authorized | — | ||||||||||||||
SARs granted | (252,500 | ) | 252,500 | 8.17 | |||||||||||
SARs forfeited | 12,166 | (12,166 | ) | 8.60 | |||||||||||
SARs exercised | — | (127,000 | ) | 385 | 4.77 | ||||||||||
Balances, July 1, 2017 | 394,335 | 1,084,999 | $ | — | $ | 9.09 | 2.3 | ||||||||
Exercisable at July 1, 2017 | 393,333 | $ | — | $ | 9.43 | 0.6 |
Range of Exercise Prices | Number Outstanding | Weighted Avg. Remaining Contractual Life (yrs.) | Weighted Avg. Exercise Price | Number Exercisable | Weighted Avg. Exercise Price | |||||||||||
$4.40 – $7.90 | 192,500 | 0.1 | $ | 7.44 | 192,500 | $ | 7.44 | |||||||||
7.91 – 9.91 | 458,333 | 3.3 | 8.19 | — | — | |||||||||||
9.92 – 11.34 | 434,166 | 2.2 | 10.76 | 200,833 | 11.34 | |||||||||||
$4.40 to $11.34 | 1,084,999 | 2.3 | $ | 9.09 | 393,333 | $ | 9.43 |
Fiscal Years Ending | Operating Leases | |||
2018 | $ | 6,747 | ||
2019 | 3,979 | |||
2020 | 1,873 | |||
2021 | 1,114 | |||
2022 | 325 | |||
Thereafter | 854 | |||
Total minimum lease payments | $ | 14,892 |
July 1, 2017 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total Fair Value | ||||||||||||
Financial Assets: | |||||||||||||||
Foreign currency forward contracts & swaps | $ | — | $ | 1,010 | $ | — | $ | 1,010 | |||||||
Financial Liabilities: | |||||||||||||||
Interest rate swaps | $ | — | $ | (103 | ) | $ | — | $ | (103 | ) | |||||
Foreign currency forward contracts & swaps | $ | — | $ | (5,112 | ) | $ | — | $ | (5,112 | ) | |||||
July 2, 2016 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total Fair Value | ||||||||||||
Financial Assets: | |||||||||||||||
Foreign currency forward contracts | — | 136 | — | $ | 136 | ||||||||||
Financial Liabilities: | |||||||||||||||
Interest rate swaps | $ | — | $ | (498 | ) | $ | — | $ | (498 | ) | |||||
Foreign currency forward contracts & swaps | $ | — | $ | (11,112 | ) | $ | — | $ | (11,112 | ) |
Quarter Ending | Notional Contracts and Swaps in MXN | Notional Contracts and Swaps in USD | Estimated Fair Value | |||||||||
September 30, 2017 | $ | 76,192 | $ | 5,395 | $ | (1,218 | ) | |||||
December 30, 2017 | $ | 88,558 | $ | 6,162 | $ | (1,370 | ) | |||||
March 31, 2018 | $ | 90,812 | $ | 5,713 | $ | (864 | ) | |||||
June 30, 2018 | $ | 95,500 | $ | 5,811 | $ | (774 | ) | |||||
September 29, 2018 | $ | 90,443 | $ | 5,301 | $ | (588 | ) | |||||
December 29, 2018 | $ | 125,328 | $ | 6,746 | $ | (298 | ) | |||||
March 30, 2019 | $ | 137,944 | $ | 6,979 | $ | 33 | ||||||
June 29, 2019 | $ | 142,947 | $ | 6,828 | $ | 350 | ||||||
September 28, 2019 | $ | 148,468 | $ | 6,740 | $ | 627 |
July 1, 2017 | July 2, 2016 | |||||||||
Derivatives Designated as Hedging Instruments | Balance Sheet Location | Fair Value | Fair Value | |||||||
Foreign currency forward contracts & swaps | Other long-term assets | $ | 1,010 | $ | 136 | |||||
Foreign currency forward contracts & swaps | Other current liabilities | $ | (4,226 | ) | $ | (4,670 | ) | |||
Foreign currency forward contracts & swaps | Other long-term liabilities | $ | (886 | ) | $ | (6,442 | ) | |||
Interest rate swaps | Other long-term assets | $ | — | $ | — | |||||
Interest rate swaps | Other current liabilities | $ | (81 | ) | $ | (264 | ) | |||
Interest rate swaps | Other long-term liabilities | $ | (22 | ) | $ | (234 | ) |
Derivatives Designated as Hedging Instruments | Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | AOCI Balance as of July 2, 2016 | Effective Portion Recorded In AOCI | Effective Portion Reclassified From AOCI Into Income | AOCI Balance as of July 1, 2017 | ||||||||||||
Forward contracts & swaps | Cost of sales | $ | (7,245 | ) | $ | (600 | ) | $ | 5,138 | $ | (2,707 | ) | |||||
Interest rate swap | Interest expense | (328 | ) | 14 | 246 | (68 | ) | ||||||||||
Total | $ | (7,573 | ) | $ | (586 | ) | $ | 5,384 | $ | (2,775 | ) |
Derivatives Designated as Hedging Instruments | Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | AOCI Balance as of June 27, 2015 | Effective Portion Recorded In AOCI | Effective Portion Reclassified From AOCI Into Income | AOCI Balance as of July 2, 2016 | ||||||||||||
Forward contracts & swaps | Cost of sales | $ | (4,487 | ) | $ | (6,939 | ) | $ | 4,181 | $ | (7,245 | ) | |||||
Interest rate swap | Interest expense | (276 | ) | (348 | ) | 296 | (328 | ) | |||||||||
Total | $ | (4,763 | ) | $ | (7,287 | ) | $ | 4,477 | $ | (7,573 | ) |
Derivatives Designated as Hedging Instruments | Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | AOCI Balance as of June 28, 2014 | Effective Portion Recorded In AOCI | Effective Portion Reclassified From AOCI Into Income | AOCI Balance as of June 27, 2015 | ||||||||||||
Forward contracts | Cost of sales | $ | 2,403 | $ | (7,208 | ) | $ | 318 | $ | (4,487 | ) | ||||||
Interest rate swap | Interest expense | — | (276 | ) | — | (276 | ) | ||||||||||
Total | $ | 2,403 | $ | (7,484 | ) | $ | 318 | $ | (4,763 | ) |
Fiscal Year Ended | |||||||||||
(in thousands) | |||||||||||
2017 | 2016 | 2015 | |||||||||
Geographic net sales: | |||||||||||
Domestic (U.S.) | $ | 361,886 | $ | 347,552 | $ | 301,891 | |||||
Foreign | 105,911 | 137,413 | 132,106 | ||||||||
Total | $ | 467,797 | $ | 484,965 | $ | 433,997 | |||||
Long-lived assets: | |||||||||||
United States | $ | 8,988 | $ | 11,406 | $ | 8,969 | |||||
Mexico | 20,878 | 15,756 | 17,156 | ||||||||
China | 630 | 763 | 849 | ||||||||
Total | $ | 30,496 | $ | 27,925 | $ | 26,974 |
Fiscal Year Ended | |||||
2017 | 2016 | 2015 | |||
United States | 77% | 72% | 70% | ||
Canada | 1 | 7 | 10 | ||
Other foreign countries (a) | 22 | 21 | 20 | ||
Total | 100% | 100% | 100% |
Percentage of Net Sales Fiscal Year | Percentage of Trade Accounts Receivable Fiscal Year | ||||||||
2017 | 2016 | 2015 | 2017 | 2016 | |||||
Customer A | 18% | 18% | 17% | 30% | 24% |
Fiscal Year Ended July 1, 2017 | |||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
(in thousands, except per share amounts) | |||||||||||||||
Net sales | $ | 117,135 | $ | 118,517 | $ | 113,601 | $ | 118,544 | |||||||
Gross profit | 9,709 | 9,612 | 9,139 | 9,840 | |||||||||||
Income before income taxes | 2,201 | 1,995 | 1,283 | 1,777 | |||||||||||
Net income | 1,792 | 1,528 | 961 | 1,336 | |||||||||||
Earnings per common share-basic | $ | 0.17 | $ | 0.14 | $ | 0.09 | $ | 0.12 | |||||||
Earnings per common share-diluted | $ | 0.16 | $ | 0.14 | $ | 0.09 | $ | 0.12 | |||||||
Weighted average shares outstanding | |||||||||||||||
Basic | 10,748 | 10,758 | 10,759 | 10,760 | |||||||||||
Diluted | 10,922 | 10,968 | 10,957 | 10,856 | |||||||||||
Fiscal Year Ended July 2, 2016 | |||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
(in thousands, except per share amounts) | |||||||||||||||
Net sales | $ | 126,209 | $ | 116,403 | $ | 118,448 | $ | 123,905 | |||||||
Gross profit | 8,919 | 9,110 | 9,955 | 10,841 | |||||||||||
Income before income taxes | 1,247 | 1,882 | 2,137 | 2,885 | |||||||||||
Net income | 817 | 1,787 | 1,783 | 2,146 | |||||||||||
Earnings per common share-basic | $ | 0.08 | $ | 0.17 | $ | 0.17 | $ | 0.20 | |||||||
Earnings per common share-diluted | $ | 0.07 | $ | 0.16 | $ | 0.16 | $ | 0.20 | |||||||
Weighted average shares outstanding | |||||||||||||||
Basic | 10,706 | 10,710 | 10,711 | 10,714 | |||||||||||
Diluted | 11,391 | 11,418 | 11,068 | 10,966 |
Estimated Fair Values | |||
At September 3, 2014 | |||
Purchase Price Paid | $ | 48,010 | |
Cash Acquired | (46 | ) | |
Purchase Price, Net of Cash Received | $ | 47,964 | |
Cash | $ | 46 | |
Accounts Receivable | 21,211 | ||
Inventories | 21,772 | ||
Other Current Assets | 1,013 | ||
Property, Plant and Equipment | 7,823 | ||
Favorable Leases | 2,941 | ||
Customer Relationships | 2,833 | ||
Non-Compete Agreements | 196 | ||
Goodwill | 8,217 | ||
Other Assets | 42 | ||
Accounts Payable | (11,070 | ) | |
Accrued Salaries and Wages | (2,188 | ) | |
Other Current Liabilities | (2,408 | ) | |
Deferred Tax Liability | (2,418 | ) | |
Fair Value of Assets Acquired | $ | 48,010 |
Fiscal Year Ended | ||||
(unaudited) | ||||
June 27, 2015 | ||||
Net sales | $ | 457,475 | ||
Net income | $ | 4,136 |
July 1, 2017 | |||||||||||||
Amortization Period in Years | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||
Other intangible assets: | |||||||||||||
Non-Compete Agreements | 3 - 5 | $ | 568 | $ | (483 | ) | $ | 85 | |||||
Customer Relationships | 10 | 4,803 | (1,590 | ) | 3,213 | ||||||||
Favorable Lease Agreements | 4 - 7 | 2,941 | (1,439 | ) | 1,502 | ||||||||
Total | $ | 8,312 | $ | (3,512 | ) | $ | 4,800 |
July 2, 2016 | |||||||||||||
Amortization Period in Years | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||
Other intangible assets: | |||||||||||||
Non-Compete Agreements | 3 - 5 | $ | 568 | $ | (343 | ) | $ | 225 | |||||
Customer Relationships | 10 | 4,803 | (1,110 | ) | 3,693 | ||||||||
Favorable Lease Agreements | 4 - 7 | 2,941 | (931 | ) | 2,010 | ||||||||
Total | $ | 8,312 | $ | (2,384 | ) | $ | 5,928 |
Fiscal Years Ending | Amount | |||
2018 | $ | 1,073 | ||
2019 | 818 | |||
2020 | 783 | |||
2021 | 784 | |||
2022 | 531 | |||
Thereafter | 811 | |||
Total amortization expense | $ | 4,800 |
Item 9: | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES |
Item 9A: | CONTROLS AND PROCEDURES |
Item 9B: | OTHER INFORMATION |
Item 10: | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
Item 11: | EXECUTIVE COMPENSATION |
Item 12: | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
Plan category | Number of securities to be issued upon exercise of outstanding options, warrants, and rights (a) | Weighted-average exercise price of outstanding options, warrants, and rights (b) | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a) (c) | ||||||
Equity compensation plans approved by security holders(1) | 1,084,999 | $ | 9.09 | 394,335 | |||||
Equity compensation plans not approved by security holders | — | $ | — | — | |||||
Total | 1,084,999 | $ | 9.09 | 394,335 |
(1) | Included are the 1,200,000 shares subject to the 2010 Plan, the issuance of which were approved by the shareholders at the 2010 Annual Meeting. During the 2015 Annual Meeting, an additional 1,000,000 shares were approved. As a result of the shareholder approval, the Company made the decision to amend the cash-settled SARs granted during fiscal year 2010 to stock-settled SARs effective October 21, 2011. |
Item 13: | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
Item 14: | PRINCIPAL ACCOUNTING FEES AND SERVICES |
Item 15: | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES |
Page in Form 10-K | |
FINANCIAL STATEMENTS | |
37-56 |
II. Consolidated Valuation and Qualifying Accounts | 64 |
Exhibit No. | Description |
3.1 | |
3.2 | |
10.1* | |
10.2* | |
10.3* | |
10.4* | |
10.5* |
10.6* | |
10.7* | |
10.8 | |
10.9 | |
10.10* |
10.11* | |
10.12* | |
10.13 | |
10.14 | |
10.15 | |
10.16 | |
10.17* | |
10.18* | |
10.19* | |
10.20 | |
10.21* | |
10.22* | |
10.23 | |
10.24* | |
10.25* |
10.26* | |
10.27 | |
10.28* | |
10.29* | |
10.30* | |
10.31* | |
10.32* | |
10.33 | |
10.34* | |
10.35 | |
10.36 | |
10.37* | |
10.38* | |
21 | |
23.1 | |
31.1 | |
31.2 | |
32.1 | |
32.2 | |
101.INS | XBRL Instance Document ** |
101.SCH | XBRL Taxonomy Extension Schema Document ** |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document ** |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document ** |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document ** |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document ** |
* | Management contract or compensatory plan or arrangement |
** | Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, or Section 18 of the Securities and Exchange Act of 1934, as amended and otherwise are not subject to liability under those sections. |
Fiscal Year Ended | |||||||||||
2017 | 2016 | 2015 | |||||||||
(in thousands) | |||||||||||
Allowance for Obsolete Inventory | |||||||||||
Balance at beginning of year | $ | 1,113 | $ | 417 | $ | 332 | |||||
Provisions | 496 | 757 | 520 | ||||||||
Dispositions | (303 | ) | (61 | ) | (435 | ) | |||||
Balance at end of year | $ | 1,306 | $ | 1,113 | $ | 417 | |||||
Allowance for Doubtful Accounts | |||||||||||
Balance at beginning of year | $ | 135 | $ | 97 | $ | — | |||||
Provisions | (10 | ) | 38 | 97 | |||||||
Write-offs | (41 | ) | — | — | |||||||
Balance at end of year | $ | 84 | $ | 135 | $ | 97 |
KEY TRONIC CORPORATION | ||
By: | /s/ Craig D. Gates | |
Craig D. Gates, President and Chief Executive Officer (Principal Executive Officer) |
/s/ Craig D. Gates | September 8, 2017 | |
Craig D. Gates | Date | |
Director and President and Chief Executive Officer (Principal Executive Officer) | ||
/s/ Brett R. Larsen | September 8, 2017 | |
Brett R. Larsen | Date | |
Executive Vice President of Administration, Chief Financial Officer and Treasurer (Principal Financial Officer) | ||
/s/ Ronald F. Klawitter | September 8, 2017 | |
Ronald F. Klawitter, Director | Date | |
/s/ James R. Bean | September 8, 2017 | |
James R. Bean, Director | Date | |
/s/ Yacov A. Shamash | September 8, 2017 | |
Yacov A. Shamash, Director | Date | |
/s/ Patrick Sweeney | September 8, 2017 | |
Patrick Sweeney, Director and Chairman of the Board | Date |
Subsidiaries of Registrant | |
1. | KT Services, Inc. |
100% owned subsidiary | |
Incorporated in the State of Washington | |
2. | Key Tronic Juarez, SA de CV |
100% owned subsidiary | |
Incorporated in Mexico | |
3. | Key Tronic China LTD |
100% owned subsidiary | |
Incorporated in the State of Washington | |
4. | Key Tronic Computer Peripherals (Shanghai) Co. LTD |
100% owned subsidiary | |
Incorporated in Republic of China | |
5. | CDR Manufacturing, Inc. |
100% owned subsidiary | |
Incorporated in the State of Kentucky | |
1. | I have reviewed this annual report on Form 10-K of Key Tronic Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)), and internal control over financial reporting (as defined in Exchange Act Rules 13a – 15(f) and 15d – 15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles, |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons fulfilling the equivalent functions); |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting |
Dated: | September 8, 2017 | |
/s/ Craig D. Gates | ||
Craig D. Gates | ||
President and Chief Executive Officer |
1. | I have reviewed this annual report on Form 10-K of Key Tronic Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)), and internal control over financial reporting (as defined in Exchange Act Rules 13a – 15(f) and 15d – 15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles, |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons fulfilling the equivalent functions); |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting |
Dated: | September 8, 2017 | |
/s/ Brett R. Larsen | ||
Brett R. Larsen | ||
Executive Vice President of Administration, Chief Financial Officer and Treasurer |
1. | The Form 10-K fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Form 10-K fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Dated: | September 8, 2017 | |
/s/ Craig D. Gates | ||
Craig D. Gates | ||
President and Chief Executive Officer |
1. | The Form 10-K fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Form 10-K fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Dated: | September 8, 2017 | |
/s/ Brett R. Larsen | ||
Brett R. Larsen | ||
Executive Vice President of Administration, Chief Financial Officer and Treasurer |
[=U?J&QG??_QTU^M^"?:M(2J-="4(S5M;6LA:!!;TF)[F&B&4(&VE>&'%"UL"32$7N? B!6F]L!"*A5R<@-!0I5K(A3U54,B%@A=>
M>%%P?KPG^W/RS3?/FKWVWC-[SU[[_8*'/;/6LY[UK&>MF?4YZZR9N;1J_NW?
M_LUBL5@LIUBFC.I:+!:+97=E"O/^]W__=_62X"Q)DB3I!09G29(D:8;)X/S?
M__W?%HO%8CG%,F54UV*Q6"R[*U,V!F=)TNG@/??'/_[QP;,7\_U8DD[/U'LN
M[]$O" >)QU)Q2DW5YJ&.E8/P4U^%1U'?P=K0/T
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M2#U&JMJ'H_0GVSMU7$76.]4O26?'X"R=(SV4+E.2?I/J\^YR1<3^),'YV4
MZ\G^*.W1CQI,8A0>6"_M)#CT^ 9PZFQB<)4DZOW[P@Q^L
M'GSPP=633SYY,$7[QN"\903?A&2",.K5YI1 >61]6P;!=ML(XWSW,K=E\&&_SW_^\X9F'9G!>0=RJ\9I,SA+DLXC
M@NQ;WO*6]5>^[>*7_[AGF4!^]]UW^Y/8.A\X(8G"5)Y\EWOO.=U;WWWKMZ
MTYO>M/[:MVWB!TL>>."!]3W27%D^S9_BUG(9G!?$X"Q).B^X)?'FFV]>_USV
M-N]I)C"#KZ][Z*&';GP 4-H&@_."&)PE2><%5YNW&6J_\I6OK&_W>.M;W[KS
M#Q?JXC(X+XC!69*TC[A5@E_BR_ O)]!&?PUD6<:<0KMUN>R+E/Z:U(LQ/OTUPO.Z'\!^8#QS3DD=GK,/,NZ9
MGW;=#YMEW#)6=5\P9LR/O-]DC+-L]A7+9ISKLNP[ZE"WOT?U-G0\!N<]D1=)
M#G1>%#F)\#OC6?O?]VO&D''@>7\M8#0OR]?C>9.^K?TUE75L
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M,OQ.E2E3V[]I7/J\P];?U3&IXT9[QQTO*0S..A'>
MB/*F-$?>M*9.-/WDT)_7$Q5_
=31NN)/)_;%FI[R#;R%XQ9
M'D<=S_[ZB+2;NEU=CL>4BN?9!NK5^5F.]GO?HH]-4)_I?9VUGWW9>NS4L>5O
M;8-Y](VZO5^']:>V2YO9QK[M4_HXUSXCSWM[=;U]F2K;Q+*C[9"6S. L%9Q(
M:G"(>H+-20SU!%A/5DRK)\MZ4F5Z#RK!L]-C<):FY6KS1S[RD?7]O-Q^P55G BRA
M=%NW7A"XN06"VRCXU@B".E>'>5\('O/#'=P&PFT?K/\B?'>S))UW!N&J:*9QA3#!D8";X,A5Q9__^9]?_=(O_=+J
M?>][W^JO_NJO;JR+'SU)B-Q4:L#<5+@B6 *?O6/>?0W]S;WK\-B>K_7^2BXFIZOV^+J^DF^OUG2-/[QS3]R^4 A
M_SCG5@YO>Y($@_."+"$X$S8Y2=4/\/$#(IS$^"_5'D9WA5!*/PCG!'/63^@E
ML'.+!%>]IV[_H&[N;>Z81SD,;?/57;/ CFAF7I]/#ZXQ_%^1YU7KM>A98N
M-H/S@IS'X,R5G4<>>61]-96K.Q2N+)_6!_CRJ7JN7+->PCI7A+GE@_L=Z=M1
M^\ 5X=%7T:7P#X&.=1",^:1_OA:/?SQ(V@_\HY77)[=Q\(%"/WPK74P&YP79
M]^#,U1O",+==< 6'<,@'^;@Z2U#=Y94<3GI\8(\3'\&8J]?<3L%)D*O8?+@P
M7PUW4EPMYA\ ?#"1;:)PY9HK5OV*,>OD)$Q?^"]AKFAQA
Z,)S83GW*9!J"9<$[+K!PT-SF?#VV?VC\%Y00S.DJ3C(HQQ&\?##S^\
M_J#A33?=M YG_ +\_BZTR>??/(EOP*KW6'
;Z.NI)JSY&;ZNVD^W),5:W;],Z1L]IDW9XSO2\
M'GH[?0Q9)OW99]R.P:T:];8,_B'(_ZKD'X@GT<
Document and Entity Information - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jul. 01, 2017 |
Sep. 06, 2017 |
Dec. 31, 2016 |
|
Document Documentand Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jul. 01, 2017 | ||
Document Fiscal Year Focus | 2017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ktcc | ||
Entity Registrant Name | KEY TRONIC CORP | ||
Entity Central Index Key | 0000719733 | ||
Current Fiscal Year End Date | --07-01 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 10,759,680 | ||
Entity Public Float | $ 79.8 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Jul. 01, 2017 |
Jul. 02, 2016 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Trade receivables, allowance for doubtful accounts | $ 84 | $ 135 |
Common stock - par value | $ 0 | $ 0 |
Common stock - shares authorized | 25,000,000 | 25,000,000 |
Common stock - issued | 10,760,000 | 10,725,000 |
Common stock - outstanding | 10,760,000 | 10,725,000 |
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jul. 01, 2017 |
Jul. 02, 2016 |
Jun. 27, 2015 |
|
Income Statement [Abstract] | |||
Net sales | $ 467,797 | $ 484,965 | $ 433,997 |
Cost of sales | 429,497 | 446,140 | 400,692 |
Gross profit | 38,300 | 38,825 | 33,305 |
Operating expenses | |||
Research, development and engineering expenses | 6,393 | 6,397 | 5,784 |
Selling, general and administrative expenses | 22,363 | 22,012 | 20,868 |
Total operating expenses | 28,756 | 28,409 | 26,652 |
Operating income | 9,544 | 10,416 | 6,653 |
Interest expense, net | 2,288 | 2,265 | 1,353 |
Income before income taxes | 7,256 | 8,151 | 5,300 |
Income tax provision | 1,639 | 1,618 | 996 |
Net income | $ 5,617 | $ 6,533 | $ 4,304 |
Earnings per share: | |||
Net income per share — Basic | $ 0.52 | $ 0.61 | $ 0.41 |
Weighted average shares outstanding– basic | 10,756 | 10,710 | 10,572 |
Net income per share — Diluted | $ 0.51 | $ 0.58 | $ 0.38 |
Weighted average shares outstanding — Diluted | 10,917 | 11,278 | 11,286 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jul. 01, 2017 |
Jul. 02, 2016 |
Jun. 27, 2015 |
|
Comprehensive income (loss): | |||
Net income | $ 5,617 | $ 6,533 | $ 4,304 |
Other comprehensive income (loss): | |||
Unrealized gain (loss) on hedging instruments, net of tax | 4,798 | (2,810) | (7,166) |
Comprehensive income (loss) | $ 10,415 | $ 3,723 | $ (2,862) |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jul. 01, 2017 |
Jul. 02, 2016 |
Jun. 27, 2015 |
|
Statement of Comprehensive Income [Abstract] | |||
Unrealized gain (loss) on foreign exchange contracts, tax | $ 2.5 | $ (1.4) | $ (3.7) |
SIGNIFICANT ACCOUNTING POLICIES |
12 Months Ended |
---|---|
Jul. 01, 2017 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Business Key Tronic Corporation and subsidiaries (the Company) is engaged in electronic manufacturing services (EMS) for original equipment manufacturers (OEMs) and also manufactures keyboards and other input devices. The Company’s headquarters are located in Spokane Valley, Washington with manufacturing operations in Oakdale, Minnesota; Fayetteville, Arkansas; Corinth, Mississippi; and foreign manufacturing operations in Juarez, Mexico; and Shanghai, China. Principles of Consolidation The consolidated financial statements include the Company and its wholly owned subsidiaries in the United States, Mexico and China. Intercompany balances and transactions have been eliminated during consolidation. Reclassifications Certain prior period reclassifications were made to conform with the current period presentation. These reclassifications had no effect on reported income, comprehensive income (loss), cash flows, total assets, or shareholders' equity as previously reported. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Estimates include the allowance for doubtful receivables, the provision for obsolete and non-saleable inventories, deferred tax assets and liabilities, uncertain tax positions, valuation of goodwill, impairment of long-lived assets, medical self-funded insurance liability, long-term incentive compensation accrual, the provision for warranty costs, the fair value of stock appreciation rights granted under the Company’s share-based compensation plan and purchase price allocation of acquired businesses. Due to uncertainties with respect to the assumptions and estimates, actual results could differ from those estimates. Cash and Cash Equivalents The Company considers investments with an original maturity of three months or less to be cash equivalents. Cash equivalents are carried at cost, which approximates fair value. The Company may have cash and cash equivalents at financial institutions that are in excess of federally insured limits from time to time. Allowance for Doubtful Accounts The Company evaluates the collectability of accounts receivable and records an allowance for doubtful accounts, which reduces the receivables to an amount that management reasonably estimates will be collected. A specific allowance is recorded against receivables considered to be impaired based on the Company’s knowledge of the financial condition of the customer. In determining the amount of the allowance, the Company considers several factors including the aging of the receivables, the current business environment and historical experience. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined principally using the first-in, first-out (FIFO) method. Customer orders are based upon forecasted quantities of product manufactured for shipment over defined periods. Raw material inventories are purchased to fulfill these customer requirements. Within these arrangements, customer demands for products frequently change, sometimes creating excess and obsolete inventories. The Company regularly reviews raw material inventories by customer for both excess and obsolete quantities. Wherever possible, the Company attempts to recover its full cost of excess and obsolete inventories from customers or, in some cases, through other markets. When it is determined that the Company’s carrying cost of such excess and obsolete inventories cannot be recovered in full, a charge is taken against income for the difference between the carrying cost and the estimated realizable amount. We also reserve for inventory related to specific customers covered by lead-time assurance agreements when those customers are experiencing financial difficulties or reimbursement is not reasonably assured. Property, Plant and Equipment Property, plant and equipment are carried at cost and depreciated using straight-line methods over the expected useful lives of the assets. Repairs and maintenance costs are expensed as incurred. Business Combinations The Company recognizes the assets acquired and liabilities assumed in business combinations on the basis of their fair values at the date of acquisition. We assess the fair value of assets, including intangible assets, using a variety of methods and each asset is measured at fair value from the perspective of a market participant. The method used to estimate the fair values of intangible assets incorporates significant assumptions regarding the estimates a market participant would make in order to evaluate an asset, including a market participant’s use of the asset and the appropriate discount rates for a market participant. Assets recorded from the perspective of a market participant that are determined to not have economic use for us are expensed immediately. Any excess purchase price over the fair value of the net tangible and intangible assets acquired is allocated to goodwill. Transaction costs and restructuring costs associated with a business combination are expensed as incurred. Impairment of Goodwill The Company records intangible assets that are acquired individually or with a group of other assets in the financial statements at acquisition. In accordance with ASC 350, Goodwill and Other Intangible Assets, goodwill is not amortized but is required to be reviewed for impairment at least annually or when events or circumstances indicate that carrying value may exceed fair value. The Company tests goodwill by first performing a qualitative analysis (“Step 0”) to determine if it is more likely than not that the fair value of the reporting unit is greater than its carrying value. If the Company determines that it is not more likely than not that the fair value of the reporting unit is greater than its carrying value, the Company calculates the fair value of the reporting unit and compares the fair value of the reporting unit to its carrying value (“Step 1”). If the carrying value of the reporting unit exceeds the fair value, goodwill is potentially impaired and the second step (“Step 2”) of the impairment test must be performed. In the second step, the Company compares the implied fair value of the goodwill, as defined by ASC 350, to the carrying amount to determine the impairment loss, if any. The Company performed its annual qualitative Step 0 analysis as of April 2, 2017 and determined a Step 1 analysis was necessary due to market conditions. Based on the results of the Step 1 analysis, the Company concluded that the fair value of the reporting unit was greater than the carrying value of the reporting unit based on a methodology that utilized both an income approach and a market approach. We considered valuation factors including the Company's market capitalization, future discounted cash flows and an estimated control premium based upon a review of comparable market transactions. Our consideration of discounted future cash included assumptions regarding growth rates and margins based on our historical trends. In addition, we applied a market discount rate calculated based upon an analysis of companies similar in size. The estimated fair value of the reporting unit exceeded the carrying value by approximately 20%. We will continue to monitor our market capitalization and impairment indicators. Impairment of Long-lived Assets The Company, using its best estimates based on reasonable and supportable assumptions and projections, reviews assets for impairment whenever events or changes in circumstances have indicated that the carrying amount of its assets might not be recoverable. Impaired assets are reported at the lower of cost or fair value. Accrued Warranty An accrual is made for expected warranty costs, with the related expense recognized in cost of goods sold. Management reviews the adequacy of this accrual quarterly based on historical analyses and anticipated product returns. Self-funded Insurance The Company self-funds its domestic employee health plans. The Company contracts with a separate administrative service company to supervise and administer the programs and act as its representative. The Company reduces its risk under this self-funded platform by purchasing stop-loss insurance coverage for high dollar individual claims. In addition, if the aggregate annual claims amount to more than 125 percent of expected claims for the plan year this insurance will also pay those claims amounts exceeding that level. The Company estimates its exposure for claims incurred but not paid at the end of each reporting period and uses historical claims data supplied by the Company’s broker to estimate its self-funded insurance liability. This liability is subject to a total limitation that varies based on employee enrollment and factors that are established at each annual contract renewal. Actual claims experience may differ from the Company’s estimates. Costs related to the administration of the plan and related claims are expensed as incurred. Revenue Recognition Sales revenue from manufacturing is recognized upon shipment of the manufactured product per contractual terms. Upon shipment, title transfers and the customer assumes risks and rewards of ownership of the product. The price to the buyer is fixed or determinable and recoverability is reasonably assured. Unless specifically stated in contractual terms, there are no formal customer acceptance requirements or further obligations related to the manufacturing services; if any such requirements exist, then sales revenue is recognized at the time when such requirements are completed and such obligations are fulfilled. Revenue is recorded net of estimated returns of manufactured product based on management’s analysis of historical returns. Revenues and associated costs from engineering design, development services and tooling, which are performed under contract of short term durations, are recognized only after the completed performance of the service. Revenue from engineering design, development services and tooling represented approximately 2.1 percent, 1.7 percent and 2.5 percent of total revenue in fiscal years 2017, 2016, and 2015, respectively. Shipping and Handling Fees The Company classifies costs associated with shipping and handling fees as a component of cost of goods sold. Customer billings related to shipping and handling fees are reported as revenue. Research, Development and Engineering Research, development and engineering expenses include unreimbursed EMS costs as well as design and engineering costs associated with the production of EMS programs. Research, development and engineering costs are expensed as incurred. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences and benefits attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis, as well as operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences and carryforwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities for a change in tax rates is recognized in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amount that is more likely than not to be realized. We utilize a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. We consider many factors when evaluating and estimating our tax positions and tax benefits, which may require periodic adjustments based on new assessments and changes in estimates and which may not accurately forecast actual outcomes. Our policy is to recognize interest and penalties related to the underpayment of income taxes as a component of income tax provision. To date, we have not incurred charges for interest or penalties in relation to the underpayment of income taxes. The tax years 1997 through the present remain open to examination by the major U.S. taxing jurisdictions to which we are subject. Refer to Note 6 for further discussions. Derivative Instruments and Hedging Activities The Company has entered into foreign currency forward contracts and an interest rate swap which are accounted for as cash flow hedges in accordance with ASC 815, Derivatives and Hedging. The effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive income (AOCI) and is reclassified into earnings in the same period in which the underlying hedged transaction affects earnings. The derivative’s effectiveness represents the change in fair value of the hedge that offsets the change in fair value of the hedged item. The Company uses derivatives to manage the variability of foreign currency fluctuations of expenses in our Mexico facilities and interest rate risk associated with certain borrowings under the Company’s debt arrangement. The foreign currency forward contracts and interest rate swaps have terms that are matched to the underlying transactions being hedged. As a result, these transactions fully offset the hedged risk and no ineffectiveness has been recorded. The Company’s foreign currency forward contracts and interest rate swaps potentially expose the Company to credit risk to the extent the counterparties may be unable to meet the terms of the agreement. The Company minimizes such risk by seeking high quality counterparties. The Company’s counterparties to the foreign currency forward contracts and interest rate swaps are major banking institutions. These institutions do not require collateral for the contracts, and the Company believes that the risk of the counterparties failing to meet their contractual obligations is remote. The Company does not enter into derivative instruments for trading or speculative purposes. Earnings Per Common Share Basic earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is computed by dividing net income by the combination of other potentially dilutive weighted average common shares and the weighted average number of common shares outstanding during the period using the treasury stock method. The computation assumes the proceeds from the exercise of stock options were used to repurchase common shares at the average market price during the period. The computation of diluted earnings per common share does not assume conversion, exercise, or contingent issuance of common stock equivalent shares that would have an anti-dilutive effect on earnings per share. Foreign Currency Transactions The functional currency of the Company’s subsidiaries in Mexico and China is the U.S. dollar. Realized foreign currency transaction gains and losses for local currency denominated assets and liabilities are included in cost of goods sold. Fair Value of Financial Instruments The carrying values of cash and cash equivalents, accounts receivable and current liabilities reflected on the balance sheets at July 1, 2017 and July 2, 2016, reasonably approximate their fair value. The Company had an outstanding balance on the line of credit of $18.3 million as of July 1, 2017 and $18.1 million as of July 2, 2016, with a carrying value that reasonably approximates the fair value. The Company had an outstanding balance on the term loan of $21.3 million as of July 1, 2017 and $26.3 million as of July 2, 2016, with a carrying value that reasonably approximates the fair value. The equipment term loan is estimated to be $3.5 million as of July 1, 2017, with a carrying value that reasonably approximates the fair value. As of July 2, 2016, the Company did not have a balance under the equipment term loan. Share-based Compensation The Company’s incentive plan may provide for equity and liability awards to employees in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, stock awards, stock units, performance shares, performance units, and other stock-based or cash-based awards. Compensation cost is recognized on a straight-line basis over the requisite employee service period, which is generally the vesting period, and is included in cost of goods sold, research, development and engineering, and selling, general, and administrative expenses. Share-based compensation is recognized only for those awards that are expected to vest, with forfeitures estimated at the date of grant based on historical experience and future expectations. Restructuring Periodically the Company may consolidate excess facilities in order to maximize efficiencies and reduce its costs. In connection with these activities, we recognize restructuring charges for employee termination costs, exit costs and long-lived asset impairment when applicable. The recognition of these restructuring charges require that we make certain judgments and estimates regarding the nature, timing and amount of costs associated with the planned exit activity. To the extent our actual results differ from our estimates and assumptions, we may be required to revise the estimates of future liabilities, requiring the recognition of additional restructuring charges or the reduction of liabilities already recognized. Such changes to previously estimated amounts may be material to the consolidated financial statements. At the end of each reporting period, we evaluate the remaining accrued balances to ensure that no excess accruals are retained and the utilization of the provisions are for their intended purpose in accordance with developed exit plans. Newly Adopted and Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2014-09 (ASU 2014-09), Revenue from Contracts with Customers. The guidance in this Update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under current guidance. This may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. Additionally, disclosures required for revenue recognition will include qualitative and quantitative information about contracts with customers, significant judgments and changes in judgments, and assets recognized from costs to obtain or fulfill a contract. Such disclosures are more extensive than what is required under existing GAAP. In August 2015, the FASB issued an amendment to defer the effective date of ASU 2014-09 for all entities by one year. This Update is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company has assessed that the impact of the new guidance will result in a change of the Company's revenue recognition model for electronics manufacturing services from "point in time" upon physical delivery to an "over time" model and believes this transition may have a material impact on the Company's consolidated financial statements upon adoption primarily as it will recognize an increase in contract assets for unbilled receivables with a corresponding reduction in finished goods and work-in-progress inventory. The Company has commenced implementation in accordance with the planned effective date and such efforts are ongoing. Companies have the option of using either a full or modified retrospective approach in applying this standard. The Company has not yet concluded upon its selection of the transition method. In July 2015, the FASB issued final guidance that simplifies the subsequent measurement of inventory for which cost is determined by methods other than last-in first-out (“LIFO”) and the retail inventory method. For inventory within the scope of the new guidance, entities will be required to compare the cost of inventory to only one measure, its net realizable value, and not the three measures required by the existing guidance. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The new guidance should not change how entities initially measure the cost of inventory. The guidance will be effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. The Company adopted this guidance during the second quarter of fiscal year 2017 and it had no impact on our financial statements. In February 2016, the FASB issued Accounting Standards Update 2016-02 (ASU 2016-02), Leases which supersedes ASC 840 Leases and creates a new topic, ASC 842 Leases. This update requires lessees to recognize a lease asset and a lease liability for all leases, including operating leases, with a term greater than 12 months on its balance sheet. The update also expands the required quantitative and qualitative disclosures surrounding leases. This update is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, with earlier adoption permitted. This update will be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Upon initial evaluation, the Company believes the new guidance will have a material impact on its consolidated balance sheets when adopted. The Company is currently assessing the timing of adoption. In March 2016, the FASB issued Accounting Standards Update 2016-09 (ASU 2016-09), Improvements to Employee Share-Based Payment Accounting. This update simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This update is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years, with earlier adoption permitted. The Company prospectively adopted this ASU during the first quarter of fiscal year 2017. As a result, excess tax benefits are recorded in income tax expense instead of a component of shareholders’ equity and excess tax benefits are no longer broken out on the consolidated statement of cash flows beginning in fiscal year 2017. In August 2016, the FASB issued Accounting Standards Update 2016-15 (ASU 2016-15), Classification of Certain Cash Receipts and Cash Payments. This update provides guidance on how to record eight specific cash flow issues. This update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted and a retrospective transition method to each period should be presented. The Company early adopted this guidance during the second quarter of fiscal year 2017 and it had no impact on our consolidated financial statements. In January 2017, the FASB issued Accounting Standards Update 2017-04, Simplifying the Test for Goodwill Impairment. Under the new standard, goodwill impairment would be measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying value of goodwill. This ASU eliminates existing guidance that requires an entity to determine goodwill impairment by calculating the implied fair value of goodwill by hypothetically assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. This update is effective prospectively to impairment tests beginning June 28, 2020, with early adoption permitted. The Company would apply this guidance to applicable impairment tests after the adoption date. The Company is currently evaluating the effect of this update on its consolidated financial statements. In May 2017, the FASB issued Accounting Standards Update 2017-09, Compensation - Stock Compensation. This update provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. This update is effective for fiscal years beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the effect of this update on its consolidated financial statements. Fiscal Year The Company operates on a 52/53 week fiscal year. Fiscal years end on the Saturday nearest June 30. As such, fiscal years 2017, 2016, and 2015, ended on July 1, 2017, July 2, 2016, and June 27, 2015, respectively. Fiscal year 2017 and 2015 were 52 week years whereas fiscal year 2016 was a 53 week year. |
INVENTORIES |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES | INVENTORIES The components of inventories consist of the following (in thousands):
|
PROPERTY, PLANT AND EQUIPMENT |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consists of the following:
|
LONG-TERM DEBT |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
LONG-TERM DEBT | LONG-TERM DEBT On September 3, 2014, the Company entered into a five-year term loan in the amount of $35.0 million used to acquire all of the outstanding shares of CDR Manufacturing, Inc. (dba Ayrshire Electronics). The term loan requires quarterly payments of $1.25 million through June 15, 2019, with a final payment of the remaining outstanding balance on August 31, 2019. The Company had an outstanding balance of $21.3 million and $26.3 million under the term loan as of July 1, 2017 and July 2, 2016, respectively. On August 6, 2015, the Company entered into a First Amendment to the amended and restated credit agreement extending the limit on our line of credit facility to $45.0 million as evidenced by the Second Replacement Revolving Note. The agreement specifies that the proceeds of the revolving line of credit be used primarily for working capital and general corporate purposes. The line of credit is secured by substantially all of the assets of the Company and matures on August 31, 2019 at which time all outstanding balances are payable. As of July 1, 2017, the Company had an outstanding balance under the credit facility of $18.3 million, $0.4 million in outstanding letters of credit and $26.3 million available for future borrowings. As of July 2, 2016, the Company had an outstanding balance under the credit facility of $18.1 million, $0.4 million in outstanding letters of credit and $26.5 million available for future borrowings. On December 28, 2016, the Company entered into an equipment term loan agreement in the amount of $3.9 million in order to further invest in production equipment. The equipment term loan is collateralized by production equipment. Under this loan agreement, equal quarterly payments of approximately $0.2 million commenced on March 31, 2017 and will continue through the maturity of the equipment term loan on June 30, 2021. Amortization of the debt issuance costs is reported as interest expense on the consolidated income statement. As of July 1, 2017, the Company had an outstanding balance of $3.5 million. The Company did not have a balance as of July 2, 2016. The Company has available an additional $2.1 million which can be borrowed in the future under this agreement. Borrowings under the revolving line of credit, term loan and equipment term loan bear interest at either a “Base Rate” or a “Fixed Rate,” as elected by the Company. The base rate is the higher of the Wells Fargo Bank prime rate, daily one month London Interbank Offered Rate (LIBOR) plus 1.5%, or the Federal Funds rate plus 1.5%. The fixed rate is LIBOR plus 1.75%, LIBOR plus 2.0% or LIBOR plus 2.25% depending on the level of the Company’s trailing four quarters Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA). The interest rates on the outstanding debt as of July 1, 2017 range from 3.22% - 4.25% compared to 2.45% - 3.50% as of July 2, 2016. Debt maturities as of July 1, 2017 for the next five years and thereafter are as follows (in thousands):
The Company must comply with certain financial covenants, including a cash flow leverage ratio, an asset coverage ratio and a fixed charge coverage ratio. The credit agreement requires the Company to maintain a minimum profit threshold, limits the maximum capital lease expenditures and restricts the Company from declaring or paying dividends in cash or stock without prior bank approval. The Company is in compliance with all financial covenants for all periods presented. |
TRADE ACCOUNTS RECEIVABLE PURCHASE PROGRAMS |
12 Months Ended |
---|---|
Jul. 01, 2017 | |
Receivables [Abstract] | |
TRADE ACCOUNTS RECEIVABLE SALE PROGRAMS | TRADE ACCOUNTS RECEIVABLE PURCHASE PROGRAMS Sale Programs The Company utilizes an Account Purchase Agreement with Wells Fargo Bank, N.A. ("WFB") which allows the Company to sell and assign to WFB and WFB may purchase from Company the accounts receivable of certain Company customers in a maximum aggregate amount outstanding of $20.0 million. This agreement may be cancelled at any time by either party. The Company also has an Account Purchase Agreement with Orbian Financial Services (“Orbian”). This agreement allows the Company to sell accounts receivable of certain customers to Orbian and the agreement may be cancelled at any time by either party. Total accounts receivables sold during the twelve months ended July 1, 2017 and July 2, 2016 was approximately $86.5 million and $78.0 million, respectively. Accounts receivables sold and not yet collected was approximately $1.6 million and $1.7 million as of July 1, 2017 and July 2, 2016, respectively. The receivables that were sold were removed from the consolidated balance sheets and the cash received is reflected as cash provided by operating activities in the consolidated statements of cash flows. |
INCOME TAXES |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES Income tax provision consists of the following:
The Company has gross tax credit carryforwards of approximately $8.2 million at July 1, 2017. Included in total tax credits carryforwards is approximately $7.4 million in research and development (R&D) tax credits. Management also has reviewed its other deferred tax assets for purposes of determining whether or not a valuation allowance may be required. A valuation allowance against these deferred tax assets is required if it is more likely than not that some of the deferred tax assets will not be realized. Based on the Company’s profitability and estimated future repatriations from foreign subsidiaries, it has been determined that it is more likely than not that the deferred tax assets will be realized. Management has reviewed and updated as necessary estimates of future repatriations of the undistributed earnings of its foreign subsidiaries. Based on this analysis, management expects to repatriate a portion of the foreign undistributed earnings based on increased sales growth driving additional U.S. capital requirements, cash requirements for potential acquisitions and to potentially implement certain tax strategies. No foreign earnings were repatriated from either foreign subsidiary during fiscal 2017 or 2016. The Company currently estimates that future repatriations from foreign subsidiaries will approximate $13.4 million. As such, as earnings are recognized in the United States, the Company would be subject to U.S. federal and state income taxes and potential withholding taxes are estimated to be approximately $6.6 million. Both the domestic tax and estimated withholding tax have been recorded as part of deferred taxes as of July 1, 2017. All other unremitted foreign earnings are expected to remain permanently reinvested for planned fixed asset purchases in foreign locations. The Company has not provided for U.S. income taxes or foreign withholding taxes on approximately $15.0 million of earnings from foreign subsidiaries which are permanently reinvested outside the U.S. The unrecognized net tax provision, after netting U.S. federal and state income tax and any related foreign tax credits, would be approximately $2.3 million associated with these earnings. During the second quarter of fiscal year 2017, the Company signed a unilateral advance pricing agreement (APA) with the Large Taxpayer Division of Mexico’s Servicio de Administración Tributaria (SAT) under an elective framework that has been agreed to by the U.S. and Mexican authorities. The APA is part of a larger program affecting hundreds of U.S. companies with maquiladora operations in Mexico. The general impact of the APA is to increase margins between the maquiladora and U.S. parent company, shifting profits to Mexico from the U.S. As a result of the APA, the Company recognized an increased tax liability in Mexico of approximately $0.4 million related to the calendar years 2014-2016. However, the increased costs to the U.S. resulted in a reduced tax liability of approximately $0.4 million in the U.S. during fiscal year 2017. The overall net impact of the APA is therefore estimated to not be material to the Company’s consolidated financial results. The estimated increased liabilities in Mexico and related offsetting tax benefit in the U.S. were recorded during the second quarter of fiscal year 2017. The APA was finalized during the fourth quarter of fiscal year 2017. Further, the resulting impact of the APA resulted in approximately $1.8 million of additional earnings being recognized in Mexico. The Company has reevaluated its repatriation assumptions and based on new customer growth in Mexico and related required capital expenditures, it is assumed that 50% of the additional $1.8 million in earnings will be permanently reinvested in Mexico. The Company’s effective tax rate differs from the federal tax rate as follows:
The domestic and foreign components of income before income taxes were:
Deferred income tax assets and liabilities consist of the following at:
Uncertain Tax Positions The Company has R&D tax credits that approximate $7.4 million that have 20 year carryforwards before expiring. The Company’s R&D tax credits expire in various fiscal years from 2021 to 2036. The Company also has alternative minimum tax credits, which do not expire, approximating $726,000. As of July 1, 2017, the Company had unrecognized tax benefits of $3.9 million related to its gross R&D tax credits. The unrecognized tax benefits relate to certain R&D tax credits generated from 1999 to 2016. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
The increase from the prior year is due to additional R&D credits that were recorded in 2017 as discussed above. Management does not anticipate any material changes to this amount during the next 12 months. The Company recognizes interest accrued related to unrecognized tax benefits and penalties in its income tax provision. The Company has not recognized any interest or penalties in the fiscal years presented in these financial statements. The Company is subject to income tax in the U.S. federal jurisdiction, various state jurisdictions, Mexico and China. Certain years remain subject to examination but there are currently no ongoing exams in any taxing jurisdictions. |
EARNINGS PER SHARE |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share (EPS) is calculated by dividing net income (the numerator) by the weighted-average number of common shares outstanding (the denominator) during the period. Diluted EPS is computed by including both the weighted-average number of shares outstanding and any dilutive common share equivalents in the denominator. The following table presents a reconciliation of the denominator and the number of antidilutive common share awards that were not included in the diluted earnings per share calculation. These antidilutive securities occur when equity awards outstanding have an option price greater than the average market price for the period:
|
STOCK OPTION AND BENEFIT PLANS |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK OPTION AND BENEFIT PLANS | STOCK OPTION AND BENEFIT PLANS The Company’s incentive plan provides for equity and liability awards to employees and non-employee directors in the form of stock options, stock appreciation rights (SARs), restricted stock, restricted stock units, stock awards, stock units, performance shares, performance units, and other stock-based or cash-based awards. Compensation cost is recognized on a straight-line basis over the requisite employee service period, which is generally the vesting period, and is recorded as employee compensation expense in cost of goods sold, research, development and engineering, and selling, general and administrative expenses. Share-based compensation is recognized only for those awards that are expected to vest, with forfeitures estimated at the date of grant based on historical experience and future expectations. In addition to service conditions, these SARs contain a performance condition. The additional performance condition is based upon the achievement of Return on Invested Capital (ROIC) goals relative to a peer group. All awards with performance conditions are measured over the vesting period and are charged to compensation expense over the requisite service period based on the number of shares expected to vest. The SARs cliff vest after a three-year period from date of grant and expire five years from date of grant. On October 28, 2016, the Company granted 10,000 SARs under the 2010 Incentive Plan to certain key employees and outside directors at a strike price of $8.04 and a grant date fair value of $2.30, as of July 1, 2017, 10,000 remain outstanding. The grant date fair value for the awards granted during fiscal year 2017, were estimated using the Black Scholes option valuation method with the following weighted average assumptions as of October 28, 2016:
On July 26, 2016, the Company granted 242,500 SARs under the 2010 Incentive Plan to certain key employees and outside directors at a strike price of $8.18 and a grant date fair value of $2.42, as of July 1, 2017, 242,500 remain outstanding. The grant date fair value for the awards granted during fiscal year 2017, were estimated using the Black Scholes option valuation method with the following weighted average assumptions as of July 26, 2016:
On July 29, 2015, the Company granted 248,166 SARs under the 2010 Incentive Plan to certain key employees and outside directors at a strike price of $10.26 and a grant date fair value of $3.65, as of July 1, 2017, 233,333 remain outstanding. The grant date fair value for the awards granted during fiscal year 2016, were estimated using the Black Scholes option valuation method with the following weighted average assumptions as of July 29, 2015:
On October 31, 2014, the Company granted 213,166 SARs under the 2010 Incentive Plan to certain key employees and outside directors at a strike price of $8.22 and a grant date fair value of $3.04, as of July 1, 2017, 205,833 remain outstanding. The grant date fair value for the awards granted during fiscal year 2016, were estimated using the Black Scholes option valuation method with the following weighted average assumptions as of October 31, 2014:
Subsequent to July 1, 2017, the Company granted 272,500 SARs with a strike price of $7.26 and a grant date fair value of $1.89. Share-based compensation expense is recognized only for those awards that are expected to vest, with forfeitures estimated at the date of grant based on the Company’s historical experience and future expectations. This forfeiture rate will be revised, if necessary, in subsequent periods if actual forfeitures differ from the amount estimated. Share-based compensation expense for fiscal years ended July 1, 2017, July 2, 2016 and June 27, 2015 was $0.7 million, $0.8 million and $0.7 million, respectively. The Black-Scholes option valuation model is used by the Company for estimating the fair value of SARs. Option valuation models require the input of highly subjective assumptions, particularly for the expected term and expected stock price volatility. Changes in these assumptions can materially affect the fair value estimates. The intrinsic value for stock options and SARs exercised in fiscal years 2017, 2016 and 2015 was $0.4 million, $0.2 million and $1.9 million, respectively. As of July 1, 2017, total unrecognized compensation expense related to nonvested share-based compensation arrangements was approximately $0.8 million. This expense is expected to be recognized over a weighted-average period of 1.54 years. The following table summarizes the Company’s Options and SARs activity for all plans from June 28, 2014 through July 1, 2017:
Additional information regarding SARs outstanding and exercisable as of July 1, 2017, is as follows:
The Company has defined contribution plans available to U.S. employees who have attained age 21. Company contributions to the plans were approximately $0.6 million, $0.6 million, and $0.6 million during fiscal years 2017, 2016 and 2015, respectively. |
COMMITMENTS AND CONTINGENCIES |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Leases: As of July 1, 2017, July 2, 2016 and June 27, 2015, the Company did not have any property and equipment financed under capital leases. As of July 1, 2017, the Company has operating leases for certain equipment and production facilities, which expire at various dates during the next eight years. Future minimum payments under non-cancelable operating leases at July 1, 2017, are summarized as follows (in thousands):
Rental expense under operating leases was approximately $7.8 million, $6.6 million, and $3.8 million during fiscal years 2017, 2016 and 2015, respectively. Warranty Costs: The Company provides warranties on certain product sales, and allowances for estimated warranty costs are recorded during the period of sale. The determination of such allowances requires the Company to make estimates of product return rates and expected costs to repair or to replace the products under warranty. The Company establishes warranty reserves based on historical warranty costs for each product line combined with liability estimates based on the prior twelve months’ sales activities. As of July 1, 2017 and July 2, 2016, the reserve for warranty costs was approximately $32,000 and $30,000, respectively. If actual return rates and/or repair and replacement costs differ significantly from estimates, adjustments to recognize additional cost of sales may be required in future periods. Warranty expense for fiscal years 2017, 2016 and 2015 was related to workmanship claims on keyboards and certain EMS products. Litigation: During the second quarter of fiscal year 2017, the Company commenced the arbitration process with a former customer related to approximately $9 million in inventory purchased, cancellation fees, and other carrying costs we believe should be reimbursed by this former customer based on the terms of the manufacturing agreement. The Company is actively working through the arbitration process and expects further clarity on the resolution of this matter, whether through negotiations or a scheduled hearing by the end of the calendar year. The Company has not accrued for any potential gains or losses related to this claim and legal costs are being expensed as incurred. The ultimate disposition of these matters could have a material effect on our consolidated financial position, results of operations or cash flows. Indemnification Rights: Under the Company’s bylaws, the Company’s directors and officers have certain rights to indemnification by the Company against certain liabilities that may arise by reason of their status or service as directors or officers. The Company maintains director and officer insurance, which may cover certain liabilities arising from its obligation to indemnify its directors and officers and former directors in certain circumstances. |
FAIR VALUE MEASUREMENTS |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The Company has adopted ASC 820, Fair Value Measurements, which defines fair value, establishes a framework for assets and liabilities being measured and reported at fair value and expands disclosures about fair value measurements. There are three levels of fair value hierarchy inputs used to value assets and liabilities which include: Level 1 – inputs are quoted market prices for identical assets or liabilities; Level 2 – inputs other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 – inputs are unobservable inputs for the asset or liability. There have been no changes in the fair value methodologies used at July 1, 2017 and July 2, 2016. The following table summarizes the fair value of assets (liabilities) of the Company’s derivatives that are required to be measured on a recurring basis as of July 1, 2017 and July 2, 2016 (in thousands):
The Company currently has forward contracts and swaps to hedge known future cash outflows for expenses denominated in the Mexican peso and an interest rate swap to mitigate risk associated with certain borrowings under the Company’s debt arrangement. These contracts are measured on a recurring basis based on the foreign currency spot rates and forward rates quoted by banks or foreign currency dealers. These contracts are marked to market using level 2 input criteria every period with the unrealized gain or loss, net of tax, reported as a component of shareholders’ equity in accumulated other comprehensive income (loss), as they qualify for hedge accounting. The carrying values of cash and cash equivalents, accounts receivable and current liabilities reflected on the balance sheets at July 1, 2017 and July 2, 2016, reasonably approximate their fair value. The Company’s long-term debt primarily consists of a revolving line of credit, a term loan and an equipment term loan. These borrowings bear interest at either a “Base Rate” or a “Fixed Rate,” as elected by the Company. Each of these rates is a variable floating rate dependent upon current market conditions and the Company’s current credit risk as discussed in footnote 4. As a result of the determinable market rate for our revolving line of credit, term loan and equipment term, they are classified within Level 2 of the fair value hierarchy. The discounted cash flow of the revolving line of credit is estimated to be $18.3 million as of July 1, 2017 and $18.1 million as of July 2, 2016, with a carrying value that reasonably approximates the fair value. The discounted cash flow of the term loan is estimated to be $21.3 million as of July 1, 2017 and $26.3 million as of July 2, 2016, with a carrying value that reasonably approximates the fair value. The discounted cash flow of the equipment term loan is estimated to be $3.5 million as of July 1, 2017, with a carrying value that reasonably approximates the fair value. As of July 2, 2016, the Company did not have a balance under the equipment term loan. |
DERIVATIVE FINANCIAL INSTRUMENTS |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS As of July 1, 2017, the Company had outstanding foreign currency forward contracts and swaps with a total notional amount of $55.7 million. The maturity dates for these contracts and swaps extend through September 2019. As of July 1, 2017, the net amount of unrealized loss expected to be reclassified into earnings within the next 12 months is approximately $2.8 million. During the fiscal year ended July 1, 2017, the Company entered into $6.7 million of foreign currency forward contracts and settled $20.5 million of such contracts. During the fiscal year ended July 2, 2016, the Company entered into $25.9 million of foreign currency forward contracts and settled $21.5 million of such contracts. During the fiscal year ended June 27, 2015, the Company entered into $23.1 million of foreign currency forward contracts and settled $20.5 million of such contracts. As of July 1, 2017, the aggregate notional amount of the Company’s outstanding foreign currency contracts and swaps along with their unrealized gains (losses) are expected to mature as summarized below (in thousands):
On October 1, 2014, the Company entered into an interest rate swap contract with an effective date of September 1, 2015 and a termination date of September 3, 2019, with a notional amount of $25.0 million related to the borrowings outstanding under the term loan. The interest rate swap pays the Company variable interest at the one month LIBOR rate, and the Company pays the counter party a fixed interest rate. The fixed interest rate for the contract is 1.97% that replaces the one month LIBOR rate component of our contractual interest to be paid to WFB as part of our term loan. Based on the terms of the interest rate swap contract and the underlying borrowings outstanding under the term loan, the interest rate contract was determined to be effective, and thus qualifies as a cash flow hedge. As of July 1, 2017 and July 2, 2016, the remaining notional balance of this swap was $14.5 million and $20.5 million, respectively. The following table summarizes the fair value of derivative instruments in the Consolidated Balance Sheets as of July 1, 2017 and July 2, 2016 (in thousands):
The following table summarizes the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Income for the fiscal year 2017 (in thousands):
The following table summarizes the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Income for the fiscal year 2016 (in thousands):
The following table summarizes the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Income for the fiscal year 2015 (in thousands):
As of July 1, 2017, the Company does not have any foreign exchange contracts with credit-risk-related contingent features. The Company is subject to the risk of fluctuating interest rates from our line of credit and foreign currency risk resulting from our China operations. The Company does not currently manage these risk exposures by using derivative instruments. |
ENTERPRISE-WIDE DISCLOSURES |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ENTERPRISE-WIDE DISCLOSURES | ENTERPRISE-WIDE DISCLOSURES Operating segments are defined in ASC Topic 280, Segment Reporting as components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is its Chief Executive Officer. As of July 1, 2017, the Company operates and internally manages a single operating segment, Electronics Manufacturing Services as this is the only discrete financial information that is regularly reviewed by the chief operating decision maker. This segment provides integrated electronic and mechanical engineering, assembly, sourcing and procurement, logistics, and new product testing for our customers. Products and Services Of the revenues for the years ended July 1, 2017, July 2, 2016, and June 27, 2015, EMS sales and services were $466.6 million, $483.3 million and $432.1 million, respectively. Keyboard sales for the years ended July 1, 2017, July 2, 2016, and June 27, 2015 were $1.2 million, $1.7 million and $1.9 million, respectively. Geographic Areas Net sales and long-lived assets (property, plant, and equipment) by geographic area for the years ended and as of July 1, 2017, July 2, 2016 and June 27, 2015 are summarized in the following table. Net sales set forth below are based on the shipping destination. Long-lived assets information is based on the physical location of the asset.
Percentage of net sales made to customers located in the following countries:
(a) No other individual foreign country accounted for 10% or more of the foreign sales in fiscal years 2017, 2016 or 2015. Significant Customers The percentage of net sales to and trade accounts receivables from significant customers were as follows:
|
QUARTERLY FINANCIAL DATA |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
QUARTERLY FINANCIAL DATA | QUARTERLY FINANCIAL DATA (Unaudited)
|
ACQUISITION |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACQUISITION | ACQUISITION On September 3, 2014, the Company acquired all of the outstanding stock of Ayrshire, resulting in Ayrshire becoming a wholly owned subsidiary of the Company. Ayrshire provides printed circuit board assembly and other electronic manufacturing services to a diversified customer base through manufacturing facilities operated by Ayrshire or its subsidiaries in Minnesota, Arkansas, Mississippi, and Kentucky and through a sheltered maquiladora facility in Reynosa, Mexico. The Reynosa, Mexico operations were moved to the Company's existing facility in Juarez, Mexico shortly after acquisition. During the second quarter of fiscal year 2017, the Company closed the Harrodsburg, Kentucky facility in order to improve operating efficiencies. The remaining programs from the Kentucky facility were transferred to other facilities. This acquisition expanded our printed circuit board assembly capacity, total revenue, and added to and diversified our customer base with the addition of many new multi-national companies. The total cash payment of approximately $48.0 million was funded through borrowings on our term loan, revolving line of credit, and cash on hand. The Company incurred approximately $775,000 of costs related to due diligence. The following table summarizes the purchase price paid for Ayrshire and the fair value of the assets acquired and liabilities assumed as of the date of acquisition (in thousands):
The Ayrshire acquisition was accounted for using the acquisition method of accounting whereby the total purchase price is allocated to tangible and intangible assets and liabilities based on their fair values on the date of acquisition. The Company determined the purchase price allocations on the acquisition based on estimates of the fair values of the assets acquired and liabilities assumed. The following summary pro forma condensed consolidated financial information reflects the Ayrshire acquisition as if it had occurred on June 30, 2013 for purposes of the statements of income. This summary pro forma information is not necessarily representative of what the Company’s results of operations would have been had this acquisition in fact occurred on June 30, 2013 and is not intended to project the Company’s results of operations for any future period. Pro forma condensed consolidated financial information for the year ended June 27, 2015 (in thousands):
It is impracticable to determine the revenue and net income related to the Ayrshire acquisition as certain customer programs have been transferred to the Company’s Juarez facilities. |
GOODWILL AND OTHER INTANGIBLE ASSETS |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The Company recorded goodwill in connection with the Ayrshire and Sabre acquisitions resulting primarily from the synergies that resulted from the Company's acquisitions and the assembled workforce. The goodwill is not amortized for financial accounting purposes. The goodwill from the acquisitions is not deductible for tax purposes. As of July 1, 2017 and July 2, 2016, goodwill was recorded at $10.0 million. The components of acquired intangible assets are as follows (in thousands):
Amortization expense related to intangible assets was approximately $1.1 million for the years ended July 1, 2017 and July 2, 2016, respectively. Aggregate amortization expense related to existing intangible assets by fiscal year is currently estimated to be as follows (in thousands):
|
SCHEDULE II |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SCHEDULE II | KEY TRONIC CORPORATION AND SUBSIDIARIES CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS FISCAL YEARS ENDED JULY 1, 2017, JULY 2, 2016, AND JUNE 27, 2015
|
SIGNIFICANT ACCOUNTING POLICIES (Policies) |
12 Months Ended |
---|---|
Jul. 01, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the Company and its wholly owned subsidiaries in the United States, Mexico and China. Intercompany balances and transactions have been eliminated during consolidation. |
Reclassification | Reclassifications Certain prior period reclassifications were made to conform with the current period presentation. These reclassifications had no effect on reported income, comprehensive income (loss), cash flows, total assets, or shareholders' equity as previously reported. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Estimates include the allowance for doubtful receivables, the provision for obsolete and non-saleable inventories, deferred tax assets and liabilities, uncertain tax positions, valuation of goodwill, impairment of long-lived assets, medical self-funded insurance liability, long-term incentive compensation accrual, the provision for warranty costs, the fair value of stock appreciation rights granted under the Company’s share-based compensation plan and purchase price allocation of acquired businesses. Due to uncertainties with respect to the assumptions and estimates, actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers investments with an original maturity of three months or less to be cash equivalents. Cash equivalents are carried at cost, which approximates fair value. The Company may have cash and cash equivalents at financial institutions that are in excess of federally insured limits from time to time. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company evaluates the collectability of accounts receivable and records an allowance for doubtful accounts, which reduces the receivables to an amount that management reasonably estimates will be collected. A specific allowance is recorded against receivables considered to be impaired based on the Company’s knowledge of the financial condition of the customer. In determining the amount of the allowance, the Company considers several factors including the aging of the receivables, the current business environment and historical experience. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined principally using the first-in, first-out (FIFO) method. Customer orders are based upon forecasted quantities of product manufactured for shipment over defined periods. Raw material inventories are purchased to fulfill these customer requirements. Within these arrangements, customer demands for products frequently change, sometimes creating excess and obsolete inventories. The Company regularly reviews raw material inventories by customer for both excess and obsolete quantities. Wherever possible, the Company attempts to recover its full cost of excess and obsolete inventories from customers or, in some cases, through other markets. When it is determined that the Company’s carrying cost of such excess and obsolete inventories cannot be recovered in full, a charge is taken against income for the difference between the carrying cost and the estimated realizable amount. We also reserve for inventory related to specific customers covered by lead-time assurance agreements when those customers are experiencing financial difficulties or reimbursement is not reasonably assured. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are carried at cost and depreciated using straight-line methods over the expected useful lives of the assets. Repairs and maintenance costs are expensed as incurred. |
Business Combinations | Business Combinations The Company recognizes the assets acquired and liabilities assumed in business combinations on the basis of their fair values at the date of acquisition. We assess the fair value of assets, including intangible assets, using a variety of methods and each asset is measured at fair value from the perspective of a market participant. The method used to estimate the fair values of intangible assets incorporates significant assumptions regarding the estimates a market participant would make in order to evaluate an asset, including a market participant’s use of the asset and the appropriate discount rates for a market participant. Assets recorded from the perspective of a market participant that are determined to not have economic use for us are expensed immediately. Any excess purchase price over the fair value of the net tangible and intangible assets acquired is allocated to goodwill. Transaction costs and restructuring costs associated with a business combination are expensed as incurred. |
Impairment of Goodwill | Impairment of Goodwill The Company records intangible assets that are acquired individually or with a group of other assets in the financial statements at acquisition. In accordance with ASC 350, Goodwill and Other Intangible Assets, goodwill is not amortized but is required to be reviewed for impairment at least annually or when events or circumstances indicate that carrying value may exceed fair value. The Company tests goodwill by first performing a qualitative analysis (“Step 0”) to determine if it is more likely than not that the fair value of the reporting unit is greater than its carrying value. If the Company determines that it is not more likely than not that the fair value of the reporting unit is greater than its carrying value, the Company calculates the fair value of the reporting unit and compares the fair value of the reporting unit to its carrying value (“Step 1”). If the carrying value of the reporting unit exceeds the fair value, goodwill is potentially impaired and the second step (“Step 2”) of the impairment test must be performed. In the second step, the Company compares the implied fair value of the goodwill, as defined by ASC 350, to the carrying amount to determine the impairment loss, if any. The Company performed its annual qualitative Step 0 analysis as of April 2, 2017 and determined a Step 1 analysis was necessary due to market conditions. |
Impairment of Long-Lived Assets | Impairment of Long-lived Assets The Company, using its best estimates based on reasonable and supportable assumptions and projections, reviews assets for impairment whenever events or changes in circumstances have indicated that the carrying amount of its assets might not be recoverable. Impaired assets are reported at the lower of cost or fair value. |
Accrued Warranty | Accrued Warranty An accrual is made for expected warranty costs, with the related expense recognized in cost of goods sold. Management reviews the adequacy of this accrual quarterly based on historical analyses and anticipated product returns. |
Self-funded Insurance | Self-funded Insurance The Company self-funds its domestic employee health plans. The Company contracts with a separate administrative service company to supervise and administer the programs and act as its representative. The Company reduces its risk under this self-funded platform by purchasing stop-loss insurance coverage for high dollar individual claims. In addition, if the aggregate annual claims amount to more than 125 percent of expected claims for the plan year this insurance will also pay those claims amounts exceeding that level. The Company estimates its exposure for claims incurred but not paid at the end of each reporting period and uses historical claims data supplied by the Company’s broker to estimate its self-funded insurance liability. This liability is subject to a total limitation that varies based on employee enrollment and factors that are established at each annual contract renewal. Actual claims experience may differ from the Company’s estimates. Costs related to the administration of the plan and related claims are expensed as incurred. |
Revenue Recognition | Revenue Recognition Sales revenue from manufacturing is recognized upon shipment of the manufactured product per contractual terms. Upon shipment, title transfers and the customer assumes risks and rewards of ownership of the product. The price to the buyer is fixed or determinable and recoverability is reasonably assured. Unless specifically stated in contractual terms, there are no formal customer acceptance requirements or further obligations related to the manufacturing services; if any such requirements exist, then sales revenue is recognized at the time when such requirements are completed and such obligations are fulfilled. Revenue is recorded net of estimated returns of manufactured product based on management’s analysis of historical returns. Revenues and associated costs from engineering design, development services and tooling, which are performed under contract of short term durations, are recognized only after the completed performance of the service. Revenue from engineering design, development services and tooling represented approximately 2.1 percent, 1.7 percent and 2.5 percent of total revenue in fiscal years 2017, 2016, and 2015, respectively. |
Shipping and Handling Fees | Shipping and Handling Fees The Company classifies costs associated with shipping and handling fees as a component of cost of goods sold. Customer billings related to shipping and handling fees are reported as revenue. |
Research, Development and Engineering | Research, Development and Engineering Research, development and engineering expenses include unreimbursed EMS costs as well as design and engineering costs associated with the production of EMS programs. Research, development and engineering costs are expensed as incurred. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences and benefits attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis, as well as operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences and carryforwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities for a change in tax rates is recognized in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amount that is more likely than not to be realized. We utilize a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. We consider many factors when evaluating and estimating our tax positions and tax benefits, which may require periodic adjustments based on new assessments and changes in estimates and which may not accurately forecast actual outcomes. Our policy is to recognize interest and penalties related to the underpayment of income taxes as a component of income tax provision. To date, we have not incurred charges for interest or penalties in relation to the underpayment of income taxes. The tax years 1997 through the present remain open to examination by the major U.S. taxing jurisdictions to which we are subject. Refer to Note 6 for further discussions. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company has entered into foreign currency forward contracts and an interest rate swap which are accounted for as cash flow hedges in accordance with ASC 815, Derivatives and Hedging. The effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive income (AOCI) and is reclassified into earnings in the same period in which the underlying hedged transaction affects earnings. The derivative’s effectiveness represents the change in fair value of the hedge that offsets the change in fair value of the hedged item. The Company uses derivatives to manage the variability of foreign currency fluctuations of expenses in our Mexico facilities and interest rate risk associated with certain borrowings under the Company’s debt arrangement. The foreign currency forward contracts and interest rate swaps have terms that are matched to the underlying transactions being hedged. As a result, these transactions fully offset the hedged risk and no ineffectiveness has been recorded. The Company’s foreign currency forward contracts and interest rate swaps potentially expose the Company to credit risk to the extent the counterparties may be unable to meet the terms of the agreement. The Company minimizes such risk by seeking high quality counterparties. The Company’s counterparties to the foreign currency forward contracts and interest rate swaps are major banking institutions. These institutions do not require collateral for the contracts, and the Company believes that the risk of the counterparties failing to meet their contractual obligations is remote. The Company does not enter into derivative instruments for trading or speculative purposes. |
Earnings Per Common Share | Earnings Per Common Share Basic earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is computed by dividing net income by the combination of other potentially dilutive weighted average common shares and the weighted average number of common shares outstanding during the period using the treasury stock method. The computation assumes the proceeds from the exercise of stock options were used to repurchase common shares at the average market price during the period. The computation of diluted earnings per common share does not assume conversion, exercise, or contingent issuance of common stock equivalent shares that would have an anti-dilutive effect on earnings per share. |
Foreign Currency Transactions | Foreign Currency Transactions The functional currency of the Company’s subsidiaries in Mexico and China is the U.S. dollar. Realized foreign currency transaction gains and losses for local currency denominated assets and liabilities are included in cost of goods sold. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying values of cash and cash equivalents, accounts receivable and current liabilities reflected on the balance sheets at July 1, 2017 and July 2, 2016, reasonably approximate their fair value. The Company had an outstanding balance on the line of credit of $18.3 million as of July 1, 2017 and $18.1 million as of July 2, 2016, with a carrying value that reasonably approximates the fair value. The Company had an outstanding balance on the term loan of $21.3 million as of July 1, 2017 and $26.3 million as of July 2, 2016, with a carrying value that reasonably approximates the fair value. The equipment term loan is estimated to be $3.5 million as of July 1, 2017, with a carrying value that reasonably approximates the fair value. As of July 2, 2016, the Company did not have a balance under the equipment term loan. |
Share-based Compensation | Share-based Compensation The Company’s incentive plan may provide for equity and liability awards to employees in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, stock awards, stock units, performance shares, performance units, and other stock-based or cash-based awards. Compensation cost is recognized on a straight-line basis over the requisite employee service period, which is generally the vesting period, and is included in cost of goods sold, research, development and engineering, and selling, general, and administrative expenses. Share-based compensation is recognized only for those awards that are expected to vest, with forfeitures estimated at the date of grant based on historical experience and future expectations. |
Restructuring | Restructuring Periodically the Company may consolidate excess facilities in order to maximize efficiencies and reduce its costs. In connection with these activities, we recognize restructuring charges for employee termination costs, exit costs and long-lived asset impairment when applicable. The recognition of these restructuring charges require that we make certain judgments and estimates regarding the nature, timing and amount of costs associated with the planned exit activity. To the extent our actual results differ from our estimates and assumptions, we may be required to revise the estimates of future liabilities, requiring the recognition of additional restructuring charges or the reduction of liabilities already recognized. Such changes to previously estimated amounts may be material to the consolidated financial statements. At the end of each reporting period, we evaluate the remaining accrued balances to ensure that no excess accruals are retained and the utilization of the provisions are for their intended purpose in accordance with developed exit plans. |
Newly Adopted and Recent Accounting Pronouncements | Newly Adopted and Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2014-09 (ASU 2014-09), Revenue from Contracts with Customers. The guidance in this Update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under current guidance. This may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. Additionally, disclosures required for revenue recognition will include qualitative and quantitative information about contracts with customers, significant judgments and changes in judgments, and assets recognized from costs to obtain or fulfill a contract. Such disclosures are more extensive than what is required under existing GAAP. In August 2015, the FASB issued an amendment to defer the effective date of ASU 2014-09 for all entities by one year. This Update is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company has assessed that the impact of the new guidance will result in a change of the Company's revenue recognition model for electronics manufacturing services from "point in time" upon physical delivery to an "over time" model and believes this transition may have a material impact on the Company's consolidated financial statements upon adoption primarily as it will recognize an increase in contract assets for unbilled receivables with a corresponding reduction in finished goods and work-in-progress inventory. The Company has commenced implementation in accordance with the planned effective date and such efforts are ongoing. Companies have the option of using either a full or modified retrospective approach in applying this standard. The Company has not yet concluded upon its selection of the transition method. In July 2015, the FASB issued final guidance that simplifies the subsequent measurement of inventory for which cost is determined by methods other than last-in first-out (“LIFO”) and the retail inventory method. For inventory within the scope of the new guidance, entities will be required to compare the cost of inventory to only one measure, its net realizable value, and not the three measures required by the existing guidance. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The new guidance should not change how entities initially measure the cost of inventory. The guidance will be effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. The Company adopted this guidance during the second quarter of fiscal year 2017 and it had no impact on our financial statements. In February 2016, the FASB issued Accounting Standards Update 2016-02 (ASU 2016-02), Leases which supersedes ASC 840 Leases and creates a new topic, ASC 842 Leases. This update requires lessees to recognize a lease asset and a lease liability for all leases, including operating leases, with a term greater than 12 months on its balance sheet. The update also expands the required quantitative and qualitative disclosures surrounding leases. This update is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, with earlier adoption permitted. This update will be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Upon initial evaluation, the Company believes the new guidance will have a material impact on its consolidated balance sheets when adopted. The Company is currently assessing the timing of adoption. In March 2016, the FASB issued Accounting Standards Update 2016-09 (ASU 2016-09), Improvements to Employee Share-Based Payment Accounting. This update simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This update is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years, with earlier adoption permitted. The Company prospectively adopted this ASU during the first quarter of fiscal year 2017. As a result, excess tax benefits are recorded in income tax expense instead of a component of shareholders’ equity and excess tax benefits are no longer broken out on the consolidated statement of cash flows beginning in fiscal year 2017. In August 2016, the FASB issued Accounting Standards Update 2016-15 (ASU 2016-15), Classification of Certain Cash Receipts and Cash Payments. This update provides guidance on how to record eight specific cash flow issues. This update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted and a retrospective transition method to each period should be presented. The Company early adopted this guidance during the second quarter of fiscal year 2017 and it had no impact on our consolidated financial statements. In January 2017, the FASB issued Accounting Standards Update 2017-04, Simplifying the Test for Goodwill Impairment. Under the new standard, goodwill impairment would be measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying value of goodwill. This ASU eliminates existing guidance that requires an entity to determine goodwill impairment by calculating the implied fair value of goodwill by hypothetically assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. This update is effective prospectively to impairment tests beginning June 28, 2020, with early adoption permitted. The Company would apply this guidance to applicable impairment tests after the adoption date. The Company is currently evaluating the effect of this update on its consolidated financial statements. In May 2017, the FASB issued Accounting Standards Update 2017-09, Compensation - Stock Compensation. This update provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. This update is effective for fiscal years beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the effect of this update on its consolidated financial statements. |
Fiscal Year | Fiscal Year The Company operates on a 52/53 week fiscal year. Fiscal years end on the Saturday nearest June 30. As such, fiscal years 2017, 2016, and 2015, ended on July 1, 2017, July 2, 2016, and June 27, 2015, respectively. Fiscal year 2017 and 2015 were 52 week years whereas fiscal year 2016 was a 53 week year. |
INVENTORIES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Inventories | The components of inventories consist of the following (in thousands):
|
PROPERTY, PLANT AND EQUIPMENT (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | Property, plant and equipment consists of the following:
|
LONG-TERM DEBT (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
Schedule of Maturities of Long-term Debt | Debt maturities as of July 1, 2017 for the next five years and thereafter are as follows (in thousands):
|
INCOME TAXES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) | Income tax provision consists of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effective Tax Rate Reconciliation | The Company’s effective tax rate differs from the federal tax rate as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Income before Income Tax, Domestic and Foreign | The domestic and foreign components of income before income taxes were:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Deferred Tax Assets and Liabilities | Deferred income tax assets and liabilities consist of the following at:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
|
EARNINGS PER SHARE (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Denominator and Number of Antidilutive Common Share Awards not Included in Diluted Earnings Per Share Calculation | The following table presents a reconciliation of the denominator and the number of antidilutive common share awards that were not included in the diluted earnings per share calculation. These antidilutive securities occur when equity awards outstanding have an option price greater than the average market price for the period:
|
STOCK OPTION AND BENEFIT PLANS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Grant Date Fair Value for Awards Estimated Using Option Valuation Method with Weighted Average Assumptions | On October 28, 2016, the Company granted 10,000 SARs under the 2010 Incentive Plan to certain key employees and outside directors at a strike price of $8.04 and a grant date fair value of $2.30, as of July 1, 2017, 10,000 remain outstanding. The grant date fair value for the awards granted during fiscal year 2017, were estimated using the Black Scholes option valuation method with the following weighted average assumptions as of October 28, 2016:
On July 26, 2016, the Company granted 242,500 SARs under the 2010 Incentive Plan to certain key employees and outside directors at a strike price of $8.18 and a grant date fair value of $2.42, as of July 1, 2017, 242,500 remain outstanding. The grant date fair value for the awards granted during fiscal year 2017, were estimated using the Black Scholes option valuation method with the following weighted average assumptions as of July 26, 2016:
On July 29, 2015, the Company granted 248,166 SARs under the 2010 Incentive Plan to certain key employees and outside directors at a strike price of $10.26 and a grant date fair value of $3.65, as of July 1, 2017, 233,333 remain outstanding. The grant date fair value for the awards granted during fiscal year 2016, were estimated using the Black Scholes option valuation method with the following weighted average assumptions as of July 29, 2015:
On October 31, 2014, the Company granted 213,166 SARs under the 2010 Incentive Plan to certain key employees and outside directors at a strike price of $8.22 and a grant date fair value of $3.04, as of July 1, 2017, 205,833 remain outstanding. The grant date fair value for the awards granted during fiscal year 2016, were estimated using the Black Scholes option valuation method with the following weighted average assumptions as of October 31, 2014:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summarizes Option/SARs Activity of All Plans | The following table summarizes the Company’s Options and SARs activity for all plans from June 28, 2014 through July 1, 2017:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional Information Regarding Options Outstanding | Additional information regarding SARs outstanding and exercisable as of July 1, 2017, is as follows:
|
COMMITMENTS AND CONTINGENCIES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Rental Payments for Operating and Capital Leases | Future minimum payments under non-cancelable operating leases at July 1, 2017, are summarized as follows (in thousands):
|
FAIR VALUE MEASUREMENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table summarizes the fair value of assets (liabilities) of the Company’s derivatives that are required to be measured on a recurring basis as of July 1, 2017 and July 2, 2016 (in thousands):
|
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | As of July 1, 2017, the aggregate notional amount of the Company’s outstanding foreign currency contracts and swaps along with their unrealized gains (losses) are expected to mature as summarized below (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summerized Fair Value of Derivative Instruments in Consolidated Balance Sheets | The following table summarizes the fair value of derivative instruments in the Consolidated Balance Sheets as of July 1, 2017 and July 2, 2016 (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (Loss) of Derivative Instruments in Statement of Operations | The following table summarizes the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Income for the fiscal year 2017 (in thousands):
The following table summarizes the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Income for the fiscal year 2016 (in thousands):
The following table summarizes the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Income for the fiscal year 2015 (in thousands):
|
ENTERPRISE-WIDE DISCLOSURES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales and Long-Lived Assets (Property, Plant, and Equipment) by Geographic Area | Net sales and long-lived assets (property, plant, and equipment) by geographic area for the years ended and as of July 1, 2017, July 2, 2016 and June 27, 2015 are summarized in the following table. Net sales set forth below are based on the shipping destination. Long-lived assets information is based on the physical location of the asset.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | Percentage of net sales made to customers located in the following countries:
(a) No other individual foreign country accounted for 10% or more of the foreign sales in fiscal years 2017, 2016 or 2015. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of Net Sales to and Trade Accounts Receivables from Significant Customers | The percentage of net sales to and trade accounts receivables from significant customers were as follows:
|
QUARTERLY FINANCIAL DATA (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Data | QUARTERLY FINANCIAL DATA (Unaudited)
|
ACQUISITION (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets and Liabilities Acquired | The following table summarizes the purchase price paid for Ayrshire and the fair value of the assets acquired and liabilities assumed as of the date of acquisition (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition, Pro Forma Information | Pro forma condensed consolidated financial information for the year ended June 27, 2015 (in thousands):
|
GOODWILL AND OTHER INTANGIBLES ASSETS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets | The components of acquired intangible assets are as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Aggregate amortization expense related to existing intangible assets by fiscal year is currently estimated to be as follows (in thousands):
|
Significant Accounting Policies (Narrative) (Detail) - USD ($) |
12 Months Ended | ||||
---|---|---|---|---|---|
Jul. 01, 2017 |
Jul. 02, 2016 |
Jun. 27, 2015 |
Dec. 28, 2016 |
Sep. 03, 2014 |
|
Percentage Of Expected Over Aggregate Annual Insurance Claims | 125.00% | ||||
Percentage Of Revenues | 2.10% | 1.70% | 2.50% | ||
Maximum Amount Of Income Tax Benefits Percentage Realized Upon Ultimate Settlement | 50.00% | ||||
Revolving loan | $ 18,335,000 | $ 18,073,000 | |||
Term Loan, Amount Outstanding | 42,949,000 | $ 35,000,000 | |||
Equipment Term Loan | |||||
Term Loan, Amount Outstanding | $ 3,500,000 | $ 3,900,000 |
Inventories (Components Of Inventories) (Detail) - USD ($) $ in Thousands |
Jul. 01, 2017 |
Jul. 02, 2016 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished goods | $ 12,244 | $ 13,384 |
Work-in-process | 20,596 | 18,988 |
Raw materials and supplies | 68,750 | 74,634 |
Inventories | $ 101,590 | $ 107,006 |
Trade Accounts Receivable Purchase Programs (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jul. 01, 2017 |
Jul. 02, 2016 |
Jul. 16, 2015 |
|
Receivables [Abstract] | |||
Account Purchase Agreement Maximum Aggregate Amount | $ 20.0 | ||
Trade Accounts Receivable Sold To Third Party | $ 86.5 | $ 78.0 | |
Accounts Receivable Factored To Banking Institutions and not yet collected | $ 1.6 | $ 1.7 |
Income Taxes (Narrative) (Detail) - USD ($) |
12 Months Ended | |||
---|---|---|---|---|
Jul. 01, 2017 |
Jul. 02, 2016 |
Jun. 27, 2015 |
Jun. 28, 2014 |
|
Income Tax Disclosure [Abstract] | ||||
Tax Credit Carryforwards | $ 8,200,000 | |||
Tax Credit Carryforwards, R&D | 7,400,000 | |||
Income Tax Reconciliation Additional Repatriation Of Foreign Earnings | 13,400,000 | |||
Estimated Federal And State Income Taxes And Potential Withholding Taxes | 6,600,000 | |||
Undistributed Earnings of Foreign Subsidiaries | 15,000,000 | |||
Unrecognized Deferred Tax Liability On Undistributed Earnings | 2,300,000 | |||
Advance Pricing Agreement Settlement | 400,000 | |||
Advance Pricing Agreement Revenue Transfer | $ 1,800,000 | |||
Remaining Contractual Term Of Tax Credit Expiration Date | 20 years | |||
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | $ 726,000 | |||
Unrecognized Tax Benefits | $ 3,947,000 | $ 3,760,000 | $ 3,446,000 | $ 3,072,000 |
Income Tax (Income Tax Expense (Benefit)) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jul. 01, 2017 |
Jul. 02, 2016 |
Jun. 27, 2015 |
|
Income Tax Disclosure [Abstract] | |||
United States | $ 1,231 | $ 1,014 | $ 1,701 |
Foreign | 1,206 | 1,960 | 975 |
Current Income Tax Expense (Benefit) | 2,437 | 2,974 | 2,676 |
United States | (539) | (1,285) | (1,486) |
Foreign | (259) | (71) | (194) |
Deferred Income Tax Expense (Benefit) | (798) | (1,356) | (1,680) |
Total income tax provision | $ 1,639 | $ 1,618 | $ 996 |
Income Taxes (Effective Tax Rate Reconciliation) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jul. 01, 2017 |
Jul. 02, 2016 |
Jun. 27, 2015 |
|
Income Tax Disclosure [Abstract] | |||
Federal income tax provision at statutory rates | $ 2,467 | $ 2,771 | $ 1,802 |
State income taxes, net of federal tax effect | 175 | 250 | 133 |
Foreign tax rate differences | (156) | (442) | (80) |
Effect of income tax credits | (738) | (1,254) | (1,085) |
Effect of repatriation of foreign earnings, net | 199 | (161) | (80) |
Other | (308) | 454 | 124 |
Transaction costs | 0 | 0 | 182 |
Total income tax provision | $ 1,639 | $ 1,618 | $ 996 |
Income Taxes (Components Of Income before Income Taxes) (Detail) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2017 |
Apr. 01, 2017 |
Dec. 31, 2016 |
Oct. 01, 2016 |
Jul. 02, 2016 |
Apr. 02, 2016 |
Dec. 26, 2015 |
Sep. 26, 2015 |
Jul. 01, 2017 |
Jul. 02, 2016 |
Jun. 27, 2015 |
|
Income Tax Disclosure [Abstract] | |||||||||||
Domestic | $ 3,553 | $ 2,228 | $ 3,395 | ||||||||
Foreign | 3,703 | 5,923 | 1,905 | ||||||||
Income before income taxes | $ 1,777 | $ 1,283 | $ 1,995 | $ 2,201 | $ 2,885 | $ 2,137 | $ 1,882 | $ 1,247 | $ 7,256 | $ 8,151 | $ 5,300 |
Income Taxes (Deferred Income Tax Assets And Liabilities) (Detail) - USD ($) $ in Thousands |
Jul. 01, 2017 |
Jul. 02, 2016 |
---|---|---|
Income Tax Disclosure [Abstract] | ||
Tax credit carryforwards, net | $ 4,164 | $ 4,056 |
Foreign subsidiaries - future tax credits | 840 | 840 |
Inventory | 840 | 508 |
Accruals | 4,020 | 4,270 |
Mark-to-market adjustments | 1,443 | 4,043 |
Other | 28 | 86 |
Deferred income tax assets | 11,335 | 13,803 |
Foreign subsidiaries – unremitted earnings | (2,288) | (2,098) |
Fixed assets | (456) | (1,025) |
Identifiable intangibles | (1,308) | (1,613) |
Other | (302) | (85) |
Deferred income tax liabilities | 4,354 | 4,821 |
Net deferred income tax assets | 6,981 | 8,982 |
Long-term deferred income tax asset | $ 6,981 | $ 8,982 |
Income Taxes (Schedule Of Unrecognized Tax Benefits) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jul. 01, 2017 |
Jul. 02, 2016 |
Jun. 27, 2015 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balances, beginning of period | $ 3,760 | $ 3,446 | $ 3,072 |
Additions based on tax positions related to the current year | 187 | 314 | 374 |
Balances, end of period | $ 3,947 | $ 3,760 | $ 3,446 |
Earnings Per Share (Reconciliation Of Denominator And Number Of Antidilutive Common Share Awards Not Included In Diluted Earnings Per Share Calculation) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2017 |
Apr. 01, 2017 |
Dec. 31, 2016 |
Oct. 01, 2016 |
Jul. 02, 2016 |
Apr. 02, 2016 |
Dec. 26, 2015 |
Sep. 26, 2015 |
Jul. 01, 2017 |
Jul. 02, 2016 |
Jun. 27, 2015 |
|
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 1,336 | $ 961 | $ 1,528 | $ 1,792 | $ 2,146 | $ 1,783 | $ 1,787 | $ 817 | $ 5,617 | $ 6,533 | $ 4,304 |
Weighted average shares outstanding– basic | 10,760 | 10,759 | 10,758 | 10,748 | 10,714 | 10,711 | 10,710 | 10,706 | 10,756 | 10,710 | 10,572 |
Effect of dilutive common stock awards | 161 | 568 | 714 | ||||||||
Weighted average shares outstanding – diluted | 10,856 | 10,957 | 10,968 | 10,922 | 10,966 | 11,068 | 11,418 | 11,391 | 10,917 | 11,278 | 11,286 |
Earnings per share – basic (in dollars per share) | $ 0.12 | $ 0.09 | $ 0.14 | $ 0.17 | $ 0.20 | $ 0.17 | $ 0.17 | $ 0.08 | $ 0.52 | $ 0.61 | $ 0.41 |
Earnings per share – diluted (in dollars per share) | $ 0.12 | $ 0.09 | $ 0.14 | $ 0.16 | $ 0.20 | $ 0.16 | $ 0.16 | $ 0.07 | $ 0.51 | $ 0.58 | $ 0.38 |
Antidilutive SARs not included in diluted earnings per share | 892 | 442 | 208 |
Stock Option And Benefit Plans (Grant Date Fair Value For Awards Estimated Using Option Valuation Method With Weighted Average Assumptions) (Detail) - Number of Options/SARs Outstanding |
1 Months Ended | |||
---|---|---|---|---|
Oct. 28, 2016 |
Jul. 26, 2016 |
Jul. 29, 2015 |
Oct. 31, 2014 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Risk – free interest rate | 1.63% | 0.93% | 1.39% | 1.39% |
Expected volatility | 33.43% | 36.13% | 43.66% | 45.67% |
Expected life | 4 years | 4 years | 4 years | 4 years |
Commitments And Contingencies (Narrative) (Detail) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Jul. 01, 2017 |
Jul. 02, 2016 |
Jun. 27, 2015 |
|
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Operating Leases Rent Expense Net | $ 7,800,000 | $ 6,600,000 | $ 3,800,000 |
Standard and Extended Product Warranty Accrual | 32,000 | $ 30,000 | |
Loss Contingency, Damages Sought, Value | $ 9,000,000 | ||
Maximum | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Terms of lease agreements | 8 years |
Commitments And Contingencies (Future Minimum Payments Under Non-Cancelable Operating And Capital Leases) (Detail) $ in Thousands |
Jul. 01, 2017
USD ($)
|
---|---|
Operating Leases | |
Operating Leases, 2018 | $ 6,747 |
Operating Leases, 2019 | 3,979 |
Operating Leases, 2020 | 1,873 |
Operating Leases, 2021 | 1,114 |
Operating Leases, 2022 | 325 |
Operating Leases, Thereafter | 854 |
Operating Leases, Total minimum lease payments | $ 14,892 |
Derivative Financial Instruments (Detail) - USD ($) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Jul. 01, 2017 |
Jul. 02, 2016 |
Jun. 27, 2015 |
Oct. 01, 2014 |
|
Derivative [Line Items] | ||||
Contract maturity date | Sep. 25, 2019 | |||
Net amount of existing losses expected to be reclassified into earnings within the next 12 months | $ 2.8 | |||
Foreign currency forward contracts entered | 6.7 | $ 25.9 | $ 23.1 | |
Foreign currency forward contracts settled | $ 20.5 | 21.5 | $ 20.5 | |
Derivative, Fixed Interest Rate | 1.97% | |||
Forward Contracts & swaps | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 55.7 | |||
Interest Rate Swap | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 14.5 | $ 20.5 | $ 25.0 |
Schedule of Derivative Instruments (Detail) - Subsequent Event - USD ($) $ in Thousands |
Sep. 28, 2019 |
Jun. 29, 2019 |
Mar. 30, 2019 |
Dec. 29, 2018 |
Sep. 29, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 30, 2017 |
Sep. 30, 2017 |
---|---|---|---|---|---|---|---|---|---|
Derivative [Line Items] | |||||||||
Derivative, Fair Value, Net | $ 627 | $ 350 | $ 33 | $ (298) | $ (588) | $ (774) | $ (864) | $ (1,370) | $ (1,218) |
Mexico, Pesos | |||||||||
Derivative [Line Items] | |||||||||
Derivative, Notional Amount | 148,468 | 142,947 | 137,944 | 125,328 | 90,443 | 95,500 | 90,812 | 88,558 | 76,192 |
United States of America, Dollars | |||||||||
Derivative [Line Items] | |||||||||
Derivative, Notional Amount | $ 6,740 | $ 6,828 | $ 6,979 | $ 6,746 | $ 5,301 | $ 5,811 | $ 5,713 | $ 6,162 | $ 5,395 |
Derivative Financial Instruments (Summarized Fair Value Of Derivative Instruments In Consolidated Balance Sheets) (Detail) - USD ($) $ in Thousands |
Jul. 01, 2017 |
Jul. 02, 2016 |
---|---|---|
Forward Contracts & swaps | Other Long-Term Assets | ||
Derivative Instruments [Line Items] | ||
Derivative Asset, Asset Fair Value | $ 1,010 | $ 136 |
Forward Contracts & swaps | Other Current Liabilities | ||
Derivative Instruments [Line Items] | ||
Derivative Liability, Liability Fair Value | 4,226 | 4,670 |
Forward Contracts & swaps | Other Long-Term Liabilities | ||
Derivative Instruments [Line Items] | ||
Derivative Liability, Liability Fair Value | 886 | 6,442 |
Interest Rate Swap | Other Long-Term Assets | ||
Derivative Instruments [Line Items] | ||
Derivative Asset, Asset Fair Value | 0 | 0 |
Interest Rate Swap | Other Current Liabilities | ||
Derivative Instruments [Line Items] | ||
Derivative Liability, Liability Fair Value | 81 | 264 |
Interest Rate Swap | Other Long-Term Liabilities | ||
Derivative Instruments [Line Items] | ||
Derivative Liability, Liability Fair Value | $ 22 | $ 234 |
Enterprise Wide Disclosures (Narrative) (Detail) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2017 |
Apr. 01, 2017 |
Dec. 31, 2016 |
Oct. 01, 2016 |
Jul. 02, 2016 |
Apr. 02, 2016 |
Dec. 26, 2015 |
Sep. 26, 2015 |
Jul. 01, 2017 |
Jul. 02, 2016 |
Jun. 27, 2015 |
|
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 118,544 | $ 113,601 | $ 118,517 | $ 117,135 | $ 123,905 | $ 118,448 | $ 116,403 | $ 126,209 | $ 467,797 | $ 484,965 | $ 433,997 |
Percentage Of Net Sales | 100.00% | 100.00% | 0.00% | ||||||||
Key Tronic E M S | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 466,600 | $ 483,300 | $ 432,100 | ||||||||
Keyboard | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 1,200 | $ 1,700 | $ 1,900 | ||||||||
Canada | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Percentage Of Net Sales | 1.00% | 7.00% | 10.00% |
Enterprise-Wide Disclosures (Net Sales And Long-Lived Assets (Property, Plant, And Equipment) By Geographic Area) (Detail) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2017 |
Apr. 01, 2017 |
Dec. 31, 2016 |
Oct. 01, 2016 |
Jul. 02, 2016 |
Apr. 02, 2016 |
Dec. 26, 2015 |
Sep. 26, 2015 |
Jul. 01, 2017 |
Jul. 02, 2016 |
Jun. 27, 2015 |
|
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 118,544 | $ 113,601 | $ 118,517 | $ 117,135 | $ 123,905 | $ 118,448 | $ 116,403 | $ 126,209 | $ 467,797 | $ 484,965 | $ 433,997 |
Long-lived assets | 30,496 | 27,925 | 30,496 | 27,925 | 26,974 | ||||||
Domestic (U.S.) | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 361,886 | 347,552 | 301,891 | ||||||||
Long-lived assets | 8,988 | 11,406 | 8,988 | 11,406 | 8,969 | ||||||
Mexico | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Long-lived assets | 20,878 | 15,756 | 20,878 | 15,756 | 17,156 | ||||||
China | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Long-lived assets | $ 630 | $ 763 | 630 | 763 | 849 | ||||||
Foreign | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 105,911 | $ 137,413 | $ 132,106 |
Enterprise-Wide Disclosures Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area (Detail) |
12 Months Ended | ||
---|---|---|---|
Jul. 01, 2017 |
Jul. 02, 2016 |
Jun. 27, 2015 |
|
Segment Reporting Information [Line Items] | |||
Percentage Of Net Sales | 100.00% | 100.00% | 0.00% |
Domestic (U.S.) | |||
Segment Reporting Information [Line Items] | |||
Percentage Of Net Sales | 77.00% | 72.00% | 70.00% |
Canada | |||
Segment Reporting Information [Line Items] | |||
Percentage Of Net Sales | 1.00% | 7.00% | 10.00% |
Foreign | |||
Segment Reporting Information [Line Items] | |||
Percentage Of Net Sales | 22.00% | 21.00% | 20.00% |
Enterprise-Wide Disclosures (Percentage Of Net Sales To And Trade Accounts Receivables From Significant Customers) (Detail) - Customer A [Member] |
12 Months Ended | ||
---|---|---|---|
Jul. 01, 2017 |
Jul. 02, 2016 |
Jun. 27, 2015 |
|
Segment Reporting Information [Line Items] | |||
Percent of Net Sales | 18.00% | 18.00% | 17.00% |
Percentage of Trade Accounts Receivable | 30.00% | 24.00% |
Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2017 |
Apr. 01, 2017 |
Dec. 31, 2016 |
Oct. 01, 2016 |
Jul. 02, 2016 |
Apr. 02, 2016 |
Dec. 26, 2015 |
Sep. 26, 2015 |
Jul. 01, 2017 |
Jul. 02, 2016 |
Jun. 27, 2015 |
|
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 118,544 | $ 113,601 | $ 118,517 | $ 117,135 | $ 123,905 | $ 118,448 | $ 116,403 | $ 126,209 | $ 467,797 | $ 484,965 | $ 433,997 |
Gross profit | 9,840 | 9,139 | 9,612 | 9,709 | 10,841 | 9,955 | 9,110 | 8,919 | 38,300 | 38,825 | 33,305 |
Income before income taxes | 1,777 | 1,283 | 1,995 | 2,201 | 2,885 | 2,137 | 1,882 | 1,247 | 7,256 | 8,151 | 5,300 |
Net income | $ 1,336 | $ 961 | $ 1,528 | $ 1,792 | $ 2,146 | $ 1,783 | $ 1,787 | $ 817 | $ 5,617 | $ 6,533 | $ 4,304 |
Earnings per share – basic (in dollars per share) | $ 0.12 | $ 0.09 | $ 0.14 | $ 0.17 | $ 0.20 | $ 0.17 | $ 0.17 | $ 0.08 | $ 0.52 | $ 0.61 | $ 0.41 |
Earnings per share – diluted (in dollars per share) | $ 0.12 | $ 0.09 | $ 0.14 | $ 0.16 | $ 0.20 | $ 0.16 | $ 0.16 | $ 0.07 | $ 0.51 | $ 0.58 | $ 0.38 |
Weighted average shares outstanding– basic | 10,760 | 10,759 | 10,758 | 10,748 | 10,714 | 10,711 | 10,710 | 10,706 | 10,756 | 10,710 | 10,572 |
Weighted average shares outstanding — Diluted | 10,856 | 10,957 | 10,968 | 10,922 | 10,966 | 11,068 | 11,418 | 11,391 | 10,917 | 11,278 | 11,286 |
Acquisition (Detail) - USD ($) |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Sep. 27, 2014 |
Jul. 01, 2017 |
Jul. 02, 2016 |
Jun. 27, 2015 |
Sep. 03, 2014 |
|
Business Acquisition [Line Items] | |||||
Purchase Price, Net of Cash Received | $ 0 | $ 0 | $ 47,964,000 | ||
Goodwill | $ 9,957,000 | $ 9,957,000 | |||
Ayrshire | |||||
Business Acquisition [Line Items] | |||||
Payments to Acquire Businesses, Gross | $ 48,010,000 | ||||
Business Combination, Acquisition Related Costs | 775,000 | ||||
Cash Acquired | (46,000) | ||||
Purchase Price, Net of Cash Received | $ 47,964,000 | ||||
Cash | $ 46,000 | ||||
Accounts Receivable | 21,211,000 | ||||
Inventories | 21,772,000 | ||||
Other Current Assets | 1,013,000 | ||||
Property, Plant and Equipment | 7,823,000 | ||||
Favorable Leases | 2,941,000 | ||||
Customer Relationships | 2,833,000 | ||||
Non-Compete Agreements | 196,000 | ||||
Goodwill | 8,217,000 | ||||
Other Assets | 42,000 | ||||
Accounts Payable | (11,070,000) | ||||
Accrued Salaries and Wages | (2,188,000) | ||||
Other Current Liabilities | (2,408,000) | ||||
Deferred Tax Liability | (2,418,000) | ||||
Fair value of assets acquired | $ 48,010,000 |
Acquisition Business Acquisition Pro Forma Information (Detail) $ in Thousands |
12 Months Ended |
---|---|
Jun. 27, 2015
USD ($)
| |
Business Acquisition [Line Items] | |
Net sales | $ 457,475 |
Net income | $ 4,136 |
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jul. 01, 2017 |
Jul. 02, 2016 |
Sep. 03, 2014 |
|
Goodwill [Line Items] | |||
Goodwill | $ 9,957 | $ 9,957 | |
Amortization of Intangible Assets | $ 1,100 | $ 1,100 | |
Ayrshire | |||
Goodwill [Line Items] | |||
Goodwill | $ 8,217 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($) $ in Thousands |
Jul. 01, 2017 |
Jul. 02, 2016 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 1,073 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 818 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 783 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 784 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 531 | |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 811 | |
Finite-Lived Intangible Assets, Net | $ 4,800 | $ 5,928 |
Schedule II (Consolidated Valuation And Qualifying Accounts) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jul. 01, 2017 |
Jul. 02, 2016 |
Jun. 27, 2015 |
|
Provision for obsolete inventory | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of year | $ 1,113 | $ 417 | $ 332 |
Provisions | 496 | 757 | 520 |
Dispositions | (303) | (61) | (435) |
Balance at end of year | 1,306 | 1,113 | 417 |
Allowance for Doubtful Accounts | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of year | 135 | 97 | 0 |
Provisions | (10) | 38 | 97 |
Dispositions | (41) | 0 | 0 |
Balance at end of year | $ 84 | $ 135 | $ 97 |
CZ8=3_ =02P,$% @ H8PH2QZLM>WN 0 V00
M !@ !X;"]W;W)K +S[
M>EQ%YMJ&V7\8+TZ3/?TO3$\?KK[=F22Y6;V-' #G#[Q4/[NAO&L[J3J\=#XL\T'E**ZX6YK@Y'O3^[.9P\_U%W
MS^M=O[AOAZ'=3@>53VT[-,%D\BF8?&GJQ^./3?,TC%]=^-X=3GP//X9V/Y]F
MKXY'ZG?_ U!+ P04 " "AC"A+!<@#DA8$ Y% & 'AL+W=O Z;S*3GPJFSP,_78H:X1_;O %3G-
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M4I5Z@SB:3RDY>;2[:RV25SJ:")80EU%5^^I/4:U,1(_S!(33X"B5-&;18<
M$\/B$O-H8Z(>$0@+O0_@]+$ %A] S'BTZJ>L0IO3.THJJ$6OPI,=/L%4
MSS4E4_%?X (*PZ,2S%%:Y=-*RMX'JR<6E*+%R[A+D_9AO.'W$VP=P"< GP%W
M*0\;$R7E'T001>;L0-S8^T[$)]X>./:FC,[4BG2'XCUZ+\7V_CICET@TQ1S'
M&+Z,F2,8LL\I^%J*(W\'Y^OPW:K"78+O_E%XLTZP7R78)X+]?TMJK!-6F:/"EM;](D+[SSP#[P]"9_P\=I_RI<(XTG9QOP95/_:VL#H)3-%8Y0
MBQ]L-A34(1YO\>S&,1N-8+OI!['Y&Q=_ %!+ P04 " "AC"A+B$C$H+8!
M #2 P &0 'AL+W=O
M^+\,2[ _>]*8,SMB+>>?'6>R\%3W89NP2B.>8XQ?!5S&L$
M\^Q+"KZ5XLC_@O-M>+JI,(WP](W"?Q#L-PGVD6#_WQ*W8M)W2=BJIQI,$Z?)
MDA*'+D[RRKL,[ V/;_(:/DW[=V$:V5ER1N=?-O:_1G3@I217?H1:_\$60T'M
MPO&3/YMIS";#83__(+9\X^(/4$L#!!0 ( *&,*$M[OG-LMP$ -(# 9
M >&PO=V]R:W-H965T
BIU/2C+ZO&EIWSO\MP0>0$T2"8)T\%L1/$4P6)$R13
M!:D3I)Z ]-GM8FZIHD4N>!>(_CBTU)RZ^6NJM^MH.NWNV']Z/:7NO17)(LW)
MS1@Y9MTST2.3QF-F@S')F-EBC#?6#F,6 T-TEB%0A :*K$$\,ECB!C%J$%N#
M9+0BF;((SYY 5"F.7,"X0QL%83V-YDCKW)
MYVMU PD^;V "^YF8?B9D9$$BL)_)DDWWR*[;]+.YR27F?KK9O X.(Q P@C:Y
M3N>05)V+?[+B&&>E]2JD.F_I4]%!",D5J7NK7L-)'<7;0<(/LKH-U'U1GT?K
M@11Y<]9VV@/_YC]02P,$% @ HHPH2T