10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2015

Or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 1-1000

Sparton Corporation

(Exact name of registrant as specified in its charter)

Ohio	38-1054690
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
425 N. Martingale Road, Suite 2050, Schaumburg, Illinois	60173-2213
(Address of principal executive offices)	(Zip code)

(847) 762-5800

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or such shorter period that the registrant was required to submit and post such files).    Yes  ý    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	¨	Accelerated filer	ý
Non-accelerated filer	¨ (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  ý

As of April 24, 2015, there were 9,910,336 shares of common stock, $1.25 par value per share, outstanding.

TABLE OF CONTENTS

PART I	FINANCIAL INFORMATION	3
ITEM 1.	FINANCIAL STATEMENTS	3
	CONDENSED CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2015 AND JUNE 30, 2014 (UNAUDITED)	3
	CONDENSED CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2015 AND 2014 (UNAUDITED)	4
	CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2015 AND 2014 (UNAUDITED)	5
	CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED MARCH 31, 2015 AND 2014 (UNAUDITED)	6
	CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY FOR THE NINE MONTHS ENDED MARCH 31, 2015 AND 2014 (UNAUDITED)	7
	NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	8
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	24
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	36
ITEM 4.	CONTROLS AND PROCEDURES	36
PART II	OTHER INFORMATION	37
ITEM 1.	LEGAL PROCEEDINGS	37
ITEM 1A.	RISK FACTORS	37
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	37
ITEM 6.	EXHIBITS	38
SIGNATURES		39
CERTIFICATIONS

2

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

SPARTON CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(Dollars in thousands, except share amounts)

	March 31, 2015			June 30, 2014 (a)
Assets
Current Assets:
Cash and cash equivalents	$	5,581		$	8,028
Accounts receivable, net of allowance for doubtful accounts of $141 and $126, respectively	46,332			48,697
Inventories and cost of contracts in progress, net	64,340			53,372
Deferred income taxes	4,248			3,813
Prepaid expenses and other current assets	4,957			2,654
Total current assets	125,458			116,564
Property, plant and equipment, net	29,777			28,523
Goodwill	54,688			28,189
Other intangible assets, net	25,383			20,041
Deferred income taxes — non-current	1,884			1,192
Other non-current assets	6,325			4,471
Total assets	$	243,515		$	198,980
Liabilities and Shareholders’ Equity
Current Liabilities:
Current portion of long-term debt	$	—		$	900
Accounts payable	22,239			16,543
Accrued salaries and wages	8,675			7,854
Accrued health benefits	1,214			1,538
Performance based payments on customer contracts	1,217			3,196
Other accrued expenses	11,104			11,090
Total current liabilities	44,449			41,121
Long-term debt — non-current portion	80,000			40,100
Environmental remediation — non-current portion	7,147			7,644
Total liabilities	131,596			88,865
Commitments and contingencies
Shareholders’ Equity:
Preferred stock, no par value; 200,000 shares authorized, none issued	—			—
Common stock, $1.25 par value; 15,000,000 shares authorized, 9,910,336 and 10,129,031 shares issued and outstanding, respectively	12,388			12,661
Capital in excess of par value	15,800			19,478
Retained earnings	84,835			78,944
Accumulated other comprehensive loss	(1,104		)	(968		)
Total shareholders’ equity	111,919			110,115
Total liabilities and shareholders’ equity	$	243,515		$	198,980

(a) Derived from the Company’s audited financial statements as of June 30, 2014.

See Notes to unaudited condensed consolidated financial statements.

3

SPARTON CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

(Dollars in thousands, except per share amounts)

	For the Three Months Ended						For the Nine Months Ended
	March 31, 2015			March 31, 2014			March 31, 2015			March 31, 2014
Net sales	$	93,065		$	83,983		$	255,732		$	243,001
Cost of goods sold	74,434			67,505			209,116			199,094
Gross profit	18,631			16,478			46,616			43,907
Operating Expense:
Selling and administrative expenses	11,883			8,807			33,288			25,139
Internal research and development expenses	418			213			715			1,004
Amortization of intangible assets	1,458			1,089			4,209			2,323
Restructuring charges	—			—			—			188
Other operating income, net	(10		)	(6		)	(39		)	(14		)
Total operating expense, net	13,749			10,103			38,173			28,640
Operating income	4,882			6,375			8,443			15,267
Other income (expense):
Interest expense	(458		)	(187		)	(1,561		)	(547		)
Interest income	—			—			2			2
Other, net	27			72			127			151
Total other expense, net	(431		)	(115		)	(1,432		)	(394		)
Income before provision for income taxes	4,451			6,260			7,011			14,873
Provision for income taxes	318			2,014			1,120			4,857
Net income	$	4,133		$	4,246		$	5,891		$	10,016
Income per share of common stock:
Basic	$	0.42		$	0.42		$	0.59		$	0.99
Diluted	$	0.42		$	0.42		$	0.59		$	0.99
Weighted average shares of common stock outstanding:
Basic	9,764,838			10,124,587			9,874,185			10,104,029
Diluted	9,769,375			10,150,253			9,888,905			10,127,811

See Notes to unaudited condensed consolidated financial statements.

4

SPARTON CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

(Dollars in thousands)

	For the Three Months Ended					For the Nine Months Ended
	March 31, 2015			March 31, 2014		March 31, 2015			March 31, 2014
Net income	$	4,133		$	4,246	$	5,891		$	10,016
Other comprehensive income (loss), net of tax:
Amortization of unrecognized net actuarial loss, net of tax benefit of $12and $11 for the three months ended March 31, 2015 and 2014, respectively, and net of tax benefit of$27and $34 for the nine months ended March 31, 2015 and 2014, respectively	8			21		33			62
Unrecognized loss on marketable equity securities, net of tax benefit of $68 and $0 for the three months ended March 31, 2015 and 2014, respectively, and net of tax benefit of $102 and $0 for the nine months ended March 31, 2015 and 2014, respectively	(111		)	—		(169		)	—
Other comprehensive (loss) income, net of tax	(103		)	21		(136		)	62
Comprehensive income	$	4,030		$	4,267	$	5,755		$	10,078

See Notes to unaudited condensed consolidated financial statements.

5

SPARTON CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(Dollars in thousands)

	For the Nine Months Ended
	March 31, 2015			March 31, 2014
Cash Flows from Operating Activities:
Net income	$	5,891		$	10,016
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	3,359			3,492
Amortization of intangible assets	4,318			2,418
Deferred income tax (benefit) expense	(1,039		)	545
Stock-based compensation expense	1,718			1,287
Gross profit effect of capitalized profit in inventory from acquisitions	255			256
Excess tax benefit from stock-based compensation	(996		)	(496		)
Other	446			66
Changes in operating assets and liabilities, net of business acquisitions:
Accounts receivable	7,216			7,426
Inventories and cost of contracts in progress	(4,362		)	3,497
Prepaid expenses and other assets	(1,706		)	(1,196		)
Performance based payments on customer contracts	(1,979		)	(13,458		)
Accounts payable and accrued expenses	(664		)	1,358
Net cash provided by operating activities	12,457			15,211
Cash Flows from Investing Activities:
Acquisition of businesses, net of cash acquired and post-closing adjustments	(42,289		)	(35,560		)
Purchase of securities available for sale	(986		)	—
Purchases of property, plant and equipment	(3,903		)	(2,253		)
Proceeds from sale of property, plant and equipment	—			69
Net cash used in investing activities	(47,178		)	(37,744		)
Cash Flows from Financing Activities:
Borrowings of long-term debt	112,414			53,000
Repayment of long-term debt	(73,414		)	(28,108		)
Payment of debt financing costs	(1,057		)	—
Repurchase of stock	(6,830		)	(1,559		)
Proceeds from the exercise of stock options	165			121
Excess tax benefit from stock-based compensation	996			496
Net cash provided by financing activities	32,274			23,950
Net (decrease) increase in cash and cash equivalents	(2,447		)	1,417
Cash and cash equivalents at beginning of period	8,028			6,085
Cash and cash equivalents at end of period	$	5,581		$	7,502
Supplemental disclosure of cash flow information:
Cash paid for interest	$	952		$	465
Cash paid for income taxes	$	3,383		$	4,734
Supplemental disclosure of non-cash investing activities:
Accounts payable recognized in relation to acquisition purchase consideration adjustments and holdbacks	$	1,490		$	—

See Notes to unaudited condensed consolidated financial statements.

6

SPARTON CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(UNAUDITED)

(Dollars in thousands)

	Nine Months Ended March 31, 2015
	Common Stock					Capital In Excess of Par Value			Retained Earnings		Accumulated Other Comprehensive Loss
	Shares		Amount											Total
Balance at June 30, 2014	10,129,031		$	12,661		$	19,478		$	78,944	$	(968	)	$	110,115
Issuance of stock	26,793		34			(34		)	—		—			—
Forfeiture of restricted stock	(15,313	)	(19		)	19			—		—			—
Repurchase of stock	(249,420	)	(312		)	(6,518		)	—		—			(6,830		)
Exercise of stock options	19,245		24			141			—		—			165
Stock-based compensation	—		—			1,718			—		—			1,718
Excess tax benefit from stock-based compensation	—		—			996			—		—			996
Comprehensive income (loss), net of tax	—		—			—			5,891		(136		)	5,755
Balance at March 31, 2015	9,910,336		$	12,388		$	15,800		$	84,835	$	(1,104	)	$	111,919

	Nine Months Ended March 31, 2014
	Common Stock					Capital In Excess of Par Value			Retained Earnings		Accumulated Other Comprehensive Loss
	Shares		Amount											Total
Balance at June 30, 2013	10,095,716		$	12,619		$	18,751		$	65,957	$	(1,255	)	$	96,072
Issuance of stock	96,664		121			(121		)	—		—			—
Forfeiture of restricted stock	(3,344	)	(4		)	4			—		—			—
Repurchase of stock	(76,880	)	(96		)	(1,463		)	—		—			(1,559		)
Exercise of stock options	14,119		18			103			—		—			121
Stock-based compensation	—		—			1,287			—		—			1,287
Excess tax benefit from stock-based compensation	—		—			496			—		—			496
Comprehensive income, net of tax	—		—			—			10,016		62			10,078
Balance at March 31, 2014	10,126,275		$	12,658		$	19,057		$	75,973	$	(1,193	)	$	106,495

See Notes to unaudited condensed consolidated financial statements.

7

SPARTON CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(1) Business and Basis of Presentation

Sparton Corporation and subsidiaries (the “Company” or “Sparton”) has been in continuous existence since 1900. It was last reorganized in 1919 as an Ohio corporation. The Company is a provider of design, development and manufacturing services for complex electromechanical devices, as well as sophisticated engineered products complementary to the same electromechanical value stream. The Company serves the Medical & Biotechnology, Military & Aerospace and Industrial & Commercial markets through two reportable business segments; Manufacturing & Design Services (“MDS”) and Engineered Components & Products (“ECP”). Financial information by segment is presented in Note 14. All of the Company's facilities are certified to one or more of the ISO/AS standards, including ISO 9001, AS9100 and ISO 13485, with most having additional certifications based on the needs of the customers they serve. The Company's products and services include offerings for Original Equipment Manufacturers (“OEM”) and Emerging Technology (“ET”) customers that utilize microprocessor-based systems which include transducers, printed circuit boards and assemblies, sensors and electromechanical components, as well as development and design engineering services relating to these product sales. Sparton also develops and manufactures sonobuoys, anti-submarine warfare (“ASW”) devices used by the United States Navy as well as foreign countries friendly to the U.S. and manufactures ruggedized flat panel display systems for military panel PC workstations, air traffic control and industrial applications. Many of the physical and technical attributes in the production of these proprietary products are similar to those required in the production of the Company's other electrical and electromechanical products and assemblies.

The unaudited condensed financial statements and related footnotes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The financial information presented herein should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2014, which includes information and disclosures not presented herein. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain reclassifications of prior period amounts have been made to conform to the current year presentation. Subsequent events have been evaluated through the date these financial statements were issued. In the opinion of management, the unaudited condensed consolidated financial statements contain all of the adjustments, consisting of normal recurring adjustments, necessary to present fairly, in summarized form, the consolidated financial position, results of operations and cash flows of the Company. The results of operations for the three months and nine months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the full fiscal year 2015.

(2) Acquisitions

Fiscal Year 2015

Stealth.com — On March 16, 2015, the Company completed the acquisition of substantially all of the assets of Stealth.com ("Stealth"), an $8 million USD annual revenue business, located in Woodbridge, ON, Canada in a $16.0 CAD ($12.6 USD) million all-cash transaction. The transaction includes a $1.9 million CAD escrowed holdback which is available to fund any potential post-closing working capital adjustment and potential seller indemnification obligations in relation to the acquisition agreement. The acquired business, which is part of the Company's ECP segment, is a supplier of high performance ruggedized industrial grade computer systems and peripherals that include Mini PC/Small Form Factor Computers, Rackmount Server PCs, Rugged Industrial LCD Monitors, Rugged Portable PCs, Industrial Grade Keyboards and Rugged Trackballs and Mice. The initial accounting for this acquisition is not complete pending detailed analyses of the facts and circumstances that existed as of the acquisition date.

The Stealth acquisition has preliminarily resulted in approximately $12.1 million of goodwill, which is expected to be deductible for tax purposes and has been assigned entirely to the Company’s ECP segment. The Company believes goodwill primarily relates to strategic fit.

The Company incurred legal, professional and other costs related to this acquisition aggregating approximately $0.2 million for the three and nine months ended March 31, 2015. These costs were recognized as selling and administrative expenses and reflected as non-segment corporate and other unallocated costs.

KEP Marine — On January 21, 2015, the Company completed the acquisition of certain assets of KEP Marine, a $3 million annual revenue business and division of Kessler-Ellis Products, located in Eatontown, NJ, in a $4.3 million all-cash transaction. The acquired business, which is part of the Company's ECP segment, designs and manufactures industrial displays, industrial computers and HMI software for the Marine market. These product lines will be consolidated into the Aydin

8

Displays facility, located in Birdsboro, PA. The initial accounting for this acquisition is not complete pending detailed analyses of the facts and circumstances that existed as of the acquisition date.

The KEP Marine acquisition has preliminarily resulted in approximately $2.8 million of goodwill, which is expected to be deductible for tax purposes and has been assigned entirely to the Company’s ECP segment. The Company believes goodwill primarily relates to strategic fit.

The Company incurred legal, professional and other costs related to this acquisition aggregating approximately $0.1 million for the three and nine months ended March 31, 2015. These costs were recognized as selling and administrative expenses and reflected as non-segment corporate and other unallocated costs.

Real-Time Enterprises, Inc. — On January 20, 2015, the Company completed the acquisition of Real-Time Enterprises, Inc. ("RTEmd"), a $4 million annual revenue business, located in Pittsford, NY, in a $2.3 million all-cash transaction. Additional consideration of up to $0.8 million is contingent upon RTEmd attaining certain performance thresholds during the twelve month period following the transaction. RTEmd will continue to service its current and future customers out of its Pittsford, NY location. The acquired business, which is part of the Company's MDS segment, is a leading developer of embedded software to operate medical devices and diagnostic equipment through a disciplined approach to product development and quality/regulatory services with specific product experience such as patient monitoring, medical imaging, in-vitro diagnostics, electro-medical systems, surgical applications, ophthalmology, nephrology, infusion pumps and medical imaging. The initial accounting for this acquisition is not complete pending detailed analyses of the facts and circumstances that existed as of the acquisition date. The Company has recorded a $0.4 million liability in relation to the purchase date estimated fair value of the additional contingent consideration for this acquisition. The Company estimated the fair value of the contingent consideration using an income approach, which is based on significant inputs, primarily forecasted future operating results of the acquired businesses, not observable in the market and thus representing a Level 3 measurement as defined in ASC 820. The Company adjusts the fair value of contingent consideration through operating expenses if there are changes to the inputs used in the income approach and as a result of the passage of time.

The RTEmd acquisition has preliminarily resulted in approximately $2.5 million of goodwill, which is expected to be deductible for tax purposes and has been assigned entirely to the Company’s MDS segment. The Company believes goodwill primarily relates to strategic fit.

The Company incurred legal, professional and other costs related to this acquisition aggregating approximately $0.1 million for the three and nine months ended March 31, 2015. These costs were recognized as selling and administrative expenses and reflected as non-segment corporate and other unallocated costs.

Argotec, Inc. — On December 8, 2014, the Company completed the acquisition of certain assets of Argotec, Inc. ("Argotec"), located in Longwood, FL in a $0.4 million all-cash transaction. Historical revenues of this business are not material. The acquired business, which is part of the Company's ECP segment, is engaged in developing and manufacturing sonar transducer products and components for the U.S. Navy and also provides aftermarket servicing. These products have been consolidated into the Company's DeLeon Springs, FL location.

The Argotec acquisition has resulted in approximately $0.2 million of goodwill, which is expected to be deductible for tax purposes and has been assigned entirely to the Company’s ECP segment. The Company believes goodwill primarily relates to strategic fit.

The Company incurred legal, professional and other costs related to this acquisition aggregating less than $0.1 million for the three and nine months ended March 31, 2015. These costs were recognized as selling and administrative expenses and reflected as non-segment corporate and other unallocated costs.

Industrial Electronic Devices, Inc. — On December 3, 2014, the Company completed the acquisition of certain assets of Industrial Electronic Devices, Inc. ("IED"), a $3.0 million annual revenue business, located in Flemington, NJ in a $3.3 million all-cash transaction, of which approximately $0.3 million remains payable in relation to a New Jersey state bulk sale holdback requirement. The transaction includes a $0.5 million escrowed holdback which is available to fund any potential seller indemnification obligations in relation to the acquisition agreement. The acquired business, which is part of the Company's ECP segment, designs and manufactures a full line of ruggedized displays for the Industrial and Marine markets. IED's catalog spans over 600 standard, semi-custom and custom configurations, incorporating some of the most advanced flat panel displays and touch screen technology available. These product lines will be consolidated into the Aydin Displays facility, located in Birdsboro, PA.

9

The IED acquisition has resulted in approximately $2.0 million of goodwill, which is expected to be deductible for tax purposes and has been assigned entirely to the Company’s ECP segment. The Company believes goodwill primarily relates to strategic fit.

The Company incurred legal, professional and other costs related to this acquisition aggregating less than $0.1 million and approximately $0.2 million for the three and nine months ended March 31, 2015, respectively. These costs were recognized as selling and administrative expenses and reflected as non-segment corporate and other unallocated costs.

Electronic Manufacturing Technology, LLC — On July 9, 2014, the Company completed the acquisition of Electronic Manufacturing Technology, LLC (“eMT”), located in Irvine, CA. The purchase price of $22.1 million, which included $1.5 million of acquired cash, is subject to certain post-closing adjustments and was financed through the use of borrowings under the Company's Credit Facility. The transaction includes a $2.4 million escrowed holdback which is available to fund any potential post-closing working capital adjustment and potential seller indemnification obligations in relation to the acquisition agreement.

The acquired business, which is part of the Company's MDS segment and which is expected to add $25 million (unaudited) in annualized revenue, is engaged in the contract services business of manufacturing electromechanical controls and electronic assemblies. Their customer profile includes international Fortune 1000 manufacturers of highly reliable industrial excimer laser products, laser eye surgery sub-assemblies, target simulators for space and aviation systems, power modules for computerized tomography products, test systems for commercial aerospace OEMs and toll road antennas and control boxes.

The Company is in the process of reviewing the preliminary valuations of certain working capital items. The following table represents the preliminary allocation of the total consideration to assets acquired and liabilities assumed in the acquisition of eMT based on Sparton’s preliminary estimate of their respective fair values at the acquisition date (in thousands):

Total purchase consideration:
Cash	$	20,000
Additional cash consideration for post closing working capital adjustment	1,600
Estimated additional consideration payable in relation to post closing income tax adjustment	469
Total purchase consideration	$	22,069
Assets acquired and liabilities assumed:
Cash	$	1,505
Accounts receivable, net	4,444
Inventory	4,090
Other current assets	26
Property, plant and equipment	584
Customer relationships	5,950
Non-compete agreements	2,730
Tradenames	80
Goodwill	6,959
Other long term assets	30
Accounts payable	(3,636		)
Other current liabilities	(693		)
Total assets acquired and liabilities assumed	$	22,069

The eMT acquisition has resulted in approximately $7.0 million of goodwill, which is expected to be deductible for tax purposes and has been assigned entirely to the Company’s MDS segment. The Company believes goodwill primarily relates to strategic fit, resulting synergies and the acquired workforce that this business brings to existing operations. The fair values of acquired identifiable intangible assets have been determined to be Level 3 under the fair value hierarchy and have been estimated based on projected future cash flows and customer attrition rates, discounted using an estimated weighted average cost of capital. The customer relationships are being amortized using an accelerated methodology over ten years. The non-compete agreements are being amortized using a straight-line methodology over five years. Trade names and trademarks are being amortized using a straight-line methodology over one year.

10

Included in the Company’s Condensed Consolidated Statements of Income for the three and nine months ended March 31, 2015 are net sales of approximately $5.5 million and $18.6 million, respectively, and income before provision for income taxes of approximately $0.5 million and $2.1 million, since the July 9, 2014 acquisition of eMT.

The Company incurred legal, professional and other costs related to this acquisition aggregating approximately $0.1 million and approximately $0.7 million for the three and nine months ended March 31, 2015, respectively. These costs were recognized as selling and administrative expenses and reflected as non-segment corporate and other unallocated costs.

Fiscal Year 2014

Aubrey Group, Inc. — On March 17, 2014, the Company completed the acquisition of Aubrey Group, Inc. ("Aubrey”), located in Irvine, CA, in a $5.0 million all-cash transaction after settlement of an approximate $0.2 million post-closing working capital adjustment during the first quarter of fiscal 2015. Additional consideration of approximately $0.6 million was paid at closing for cash of the business in excess of net customer deposits held by Aubrey. The transaction was financed through the use of borrowings under the Company's Credit Facility.

The acquired business, a design and manufacturing company, which is part of the MDS segment, develops new products for OEMs in the Medical and Biotechnological markets. Inventors, entrepreneurs and industry leading OEMs utilize Aubrey's design and engineering teams to develop innovative solutions in a timely manner, delivering its clients' new products into the marketplace faster and more cost effectively.

Beckwood Services, Inc. — On December 11, 2013, the Company completed the acquisition of Beckwood Services, Inc. ("Beckwood”), located in Plaistow, NH, in a $15.3 million all-cash transaction financed through the use of cash on hand and borrowings under the Company's Credit Facility. The transaction includes an approximate $1.5 million escrowed holdback which is available to fund potential seller indemnification obligations in relation to the acquisition agreement.

The acquired business, which is part of the Company's MDS segment, develops electronic or electro-mechanical controls and electronic assemblies. Their customer profile includes international Fortune 1000 manufacturers of industrial control systems, analytical instruments, measuring and detecting equipment and military, defense and Homeland Security equipment.

Aydin Displays, Inc. — On August 30, 2013, the Company completed the acquisition of certain assets and liabilities of Aydin Displays, Inc. ("Aydin Displays" or “Aydin”), located in Birdsboro, PA, in a $15.5 million all-cash transaction, after settlement of a $0.5 million working capital adjustment during the third quarter of the Company's fiscal 2014 year. The transaction was financed through the use of borrowings under the Company's Credit Facility. The transaction includes an approximate $1.2 million escrowed holdback which is available to fund potential seller indemnification obligations in relation to the acquisition agreement.

The acquired business, which is part of the Company's ECP segment, develops enhanced flat panel display and touch-screen solutions with application-critical performance criteria including ruggedization, high resolution, color accuracy, response/refresh times, sunlight readability and other criteria such as magnetic interference and emanations security for the Military & Aerospace and Civil Marine markets. These products are currently specified in the U.S. Navy P8A Poseidon ASW aircraft behind-the-cockpit control center, the command and control centers of many U.S. Navy ships, Federal Aviation Administration air traffic control systems and cockpit command centers for various civil marine applications. The acquired business will continue to operate as Aydin Displays.

Pro Forma Results — The following table summarizes, on a pro forma basis, the combined results of operations of the Company and the acquired businesses of eMT, IED, Argotec, RTEmd, KEP and Stealth as though the acquisitions had occurred as of July 1, 2013 and Aydin, Beckwood and Aubrey as though the acquisitions had occurred as of July 1, 2012. The pro forma amounts presented are not necessarily indicative of either the actual consolidated results had the acquisition occurred as of July 1, 2013 and 2012, respectively, or of future consolidated operating results (in thousands, except per share amounts).

	For the Three Months Ended				For the Nine Months Ended
	March 31, 2015		March 31, 2014		March 31, 2015		March 31, 2014
Net sales	$	95,019	$	97,656	$	267,932	$	294,888
Income before provision for income taxes	5,147		8,102		9,952		18,513
Net income	4,829		6,209		8,689		14,101
Net income per share — basic	0.49		0.61		0.88		1.40
Net income per share — diluted	0.49		0.61		0.88		1.39

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Pro forma results presented above primarily reflect: (1) incremental depreciation relating to fair value adjustments to property, plant and equipment; (2) amortization adjustments relating to fair value estimates of intangible assets; (3) elimination of interest expense relating to debt paid off in conjunction with the transaction; (4) incremental interest expense on assumed indebtedness and amortization of capitalized financing costs incurred in connection with the transactions; and (5) additional cost of goods sold relating to the capitalization of gross profit recognized in the year of acquisition as part of purchase accounting recognized for purposes of the pro forma as if it was recognized during the preceding year. Pro forma adjustments described above have been tax effected using Sparton's effective rate during the respective periods.

(3) Inventories and Cost of Contracts in Progress

The following are the major classifications of inventory, net of interim billings, at March 31, 2015 and June 30, 2014 (in thousands):

	March 31, 2015			June 30, 2014
Raw materials	$	40,830		$	40,535
Work in process	15,337			10,609
Finished goods	15,903			10,188
Total inventory and cost of contracts in progress, gross	72,070			61,332
Inventory to which the U.S. government has title due to interim billings	(7,730		)	(7,960		)
Total inventory and cost of contracts in progress, net	$	64,340		$	53,372

The Company recorded inventory write-downs totaling $0.1 million and $0.1 million for the three months ended March 31, 2015 and 2014, respectively. For the nine months ended March 31, 2015 and 2014, respectively, the Company recorded inventory write-downs of $0.3 million and $0.3 million. These charges are included in cost of goods sold for the periods presented.

(4) Property, Plant and Equipment, Net

Property, plant and equipment, net consists of the following at March 31, 2015 and June 30, 2014 (in thousands):

	March 31, 2015			June 30, 2014
Land and land improvements	$	1,429		$	1,429
Buildings and building improvements	26,107			25,779
Machinery and equipment	32,523			29,480
Construction in progress	3,152			1,893
Total property, plant and equipment	63,211			58,581
Less accumulated depreciation	(33,434		)	(30,058		)
Total property, plant and equipment, net	$	29,777		$	28,523

Included in construction and progress at March 31, 2015 is approximately $0.9 million related to the Company's corporate office expansion expected to be completed during the fourth quarter of fiscal 2015.

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(5) Goodwill and Other Intangible Assets

Goodwill represents the excess of purchase price over the fair value of the net assets acquired in conjunction with the Company’s purchases of Astro Instrumentation, LLC (“Astro”) in May 2006, Byers Peak, Incorporated (“Byers Peak”) in March 2011, Onyx EMS, LLC ("Onyx") in November 2012, Creonix, LLC ("Creonix") in June 2013, Aydin in August 2013, Beckwood in December 2013, Aubrey in March 2014, eMT in July 2014, IED in December 2014, Argotec in December 2014, RTEmd in January 2015, KEP Marine in January 2015 and Stealth in March 2015. Goodwill related to Astro, Byers Peak, Onyx, Creonix, Beckwood, Aubrey, eMT and RTEmd are reflected within the Company’s Manufacturing and Design Services operating segment. Goodwill related to Aydin, IED, Argotec, KEP Marine and Stealth are reflected within the Company's Engineered Components and Products operating segment. Changes in the carrying value of goodwill for the nine months ended March 31, 2015 and year ended June 30, 2014 and the ending composition of goodwill as of March 31, 2015 and June 30, 2014 are as follows (in thousands):

	March 31, 2015
	Manufacturing and Design Services			Engineered Components and Products		Total
Goodwill, beginning of period	$	26,008		$	2,181	$	28,189
Additions to goodwill during the period	9,412			17,087		26,499
Goodwill, end of period	$	35,420		$	19,268	$	54,688
	June 30, 2014
	Manufacturing and Design Services			Engineered Components and Products		Total
Goodwill, beginning of period	$	14,767		$	—	$	14,767
Additions to goodwill during the period	11,241			2,181		13,422
Goodwill, end of period	$	26,008		$	2,181	$	28,189
	March 31, 2015
	Manufacturing and Design Services			Engineered Components and Products		Total
Acquired Goodwill	$	48,573		$	19,268	$	67,841
Accumulated impairment	(13,153		)	—		(13,153		)
Goodwill	$	35,420		$	19,268	$	54,688
	June 30, 2014
	Manufacturing and Design Services			Engineered Components and Products		Total
Acquired Goodwill	$	39,161		$	2,181	$	41,342
Accumulated impairment	(13,153		)	—		(13,153		)
Goodwill	$	26,008		$	2,181	$	28,189

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Other intangible assets represent the values assigned to customer relationships acquired in conjunction with the Company’s purchases of Astro, Byers Peak, Onyx, Creonix, Aydin, Beckwood and eMT, values assigned to non-compete agreements acquired in conjunction with the Company’s purchases of Beckwood, Aubrey and eMT, values assigned to trademarks and tradenames acquired in conjunction with the Company's purchases of Aydin and eMT and unpatented technology acquired with the Company's purchase of Aydin. The amortization periods, gross carrying amounts, accumulated amortization, accumulated impairments and net carrying values of intangible assets at March 31, 2015 and June 30, 2014 are as follows (dollars in thousands):

	Amortization Period in Months		Gross Carrying Amount		Accumulated Amortization			Accumulated Impairments			Net Carrying Value
	March 31, 2015
Amortized intangible assets:
Non-compete agreements	24	- 60	$	3,715	$	(879	)	$	—		$	2,836
Customer relationships	84	- 180	36,520		(10,894		)	(3,663		)	21,963
Trademarks/Tradenames	12	- 120	260		(82		)	—			178
Unpatented Technology		84	650		(244		)	—			406
			$	41,145	$	(12,099	)	$	(3,663	)	$	25,383
	June 30, 2014
Amortized intangible assets:
Non-compete agreements	24	- 60	$	420	$	(46	)	$	—		$	374
Customer relationships	84	- 180	29,870		(7,220		)	(3,663		)	18,987
Trademarks/Tradenames		120	180		(15		)	—			165
Unpatented Technology		84	650		(135		)	—			515
			$	31,120	$	(7,416	)	$	(3,663	)	$	20,041

Sparton did not incur any significant costs to renew or alter the term of its intangible assets during the nine months ended March 31, 2015. Amortization expense for the three months ended March 31, 2015 and 2014 was approximately $1.5 million and $1.1 million, respectively. Amortization expense for the nine months ended March 31, 2015 and 2014 was approximately $4.3 million and $2.4 million, respectively. A portion of amortization expense is included in cost of goods sold on the condensed consolidated statements of income for fiscal years 2015 and 2014. Future amortization expense relative to existing intangible assets for the periods shown is currently estimated to be as follows (in thousands):

Fiscal Year Ending June 30,
2015	$	1,398
2016	5,319
2017	4,682
2018	4,105
2019	3,499
Thereafter	6,380
Total	$	25,383

(6) Debt

Debt consists of the following at March 31, 2015 and June 30, 2014 (in thousands):

	March 31, 2015		June 30, 2014
Borrowings under revolving credit facilities	$	80,000	$	41,000
Less: current portion	—		(900		)
Long-term debt, net of current portion	$	80,000	$	40,100

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Credit Facility

On September 11, 2014, the Company replaced its previous credit facility with a new $200.0 million revolving line-of-credit facility with a group of banks (the “Credit Facility”) to fund future acquisitions and to support the Company’s working capital needs and other general corporate purposes. The Credit Facility expires on September 11, 2019, is secured by substantially all assets of the Company and provides for up to an additional $100.0 million in uncommitted loans. On April 13, 2015, the Company amended its Credit Facility to increase the size of the revolving line-of-credit facility by $75 million to $275 million, reload the uncommitted loans under the agreement to $100.0 million and to make other sublimit and definitional changes.

Outstanding borrowings under the Credit Facility will bear interest, at the Company’s option, at either LIBOR, fixed for interest periods of one, two, three or six month periods, plus 1.00% to 1.75%, or at the bank’s base rate, as defined, plus 0.00% to 0.75%, based upon the Company’s Total Funded Debt/EBITDA Ratio, as defined. The Company is also required to pay commitment fees on unused portions of the Credit Facility ranging from 0.20% to 0.35%, based on the Company’s Total Funded Debt/EBITDA Ratio, as defined. The Credit Facility includes representations, covenants and events of default that are customary for financing transactions of this nature.

As a condition of the Credit Facility, the Company is subject to certain customary covenants, which it was in compliance with at March 31, 2015. The Company had $80.0 million of borrowings drawn against the Credit Facility at March 31, 2015 and additionally had certain letters of credit outstanding totaling $0.9 million.

Costs incurred in connection with the Company’s current Credit Facility of approximately $1.0 million were deferred and are amortized to interest expense over the five year term of the facility. The remaining unamortized portion of the previous revolving-credit facility financing costs were amortized in full at the time the Company entered into the new facility. Less than $0.1 million and $0.6 million of amortization of loan costs relating to the Credit Facility as well as the previous revolving-credit facility were recognized and reported as interest expense for the three and nine months ended March 31, 2015, respectively. Approximately $0.0 million and $0.1 million of amortization of loan costs relating to the previous revolving-credit facility were recognized and reported as interest expense for the three and nine months ended March 31, 2014, respectively. Additional fees incurred during the Company's fiscal 2015 fourth quarter in relation to the April 2015 amendment will be added to unamortized loan costs and amortized over the remaining life of the Credit Facility.

(7) Fair Value Measurements

The fair value of the Company's Credit Facility debt at March 31, 2015 and June 30, 2014 approximated its carrying value of $80.0 million and $41.0 million, respectively, as the rates on these borrowings are variable in nature. In relation to the acquisitions of Aydin, Beckwood, Aubrey, eMT, IED, Argotec, RTEmd, KEP Marine and Stealth, the Company estimated the fair value of the assets acquired and liabilities assumed at acquisition date. See Note 2 for a further discussion of these estimated fair values. The fair value of accounts receivable and accounts payable approximated their carrying values at both March 31, 2015 and June 30, 2014.

The Company holds marketable equity securities of $0.7 million and $0 at March 31, 2015 and June 30, 2014, respectively, that it classifies as available-for-sale and are recorded in other non-current assets on the Condensed Consolidated Balance Sheets. These securities are carried at fair value with unrealized gains and losses reflected in Accumulated Other Comprehensive Income and are classified as Level 1 in the fair value hierarchy. The assessment for impairment of marketable equity securities as available-for-sale is based on established financial methodologies, including quoted market prices for publicly traded securities. If the Company determines that a loss in the value of the investment is other than temporary, any such losses are recorded in other expense (income), net.

(8) Income Taxes

The Company recognized a number of discrete income tax items during the three and nine months ended March 31, 2015. In relation to its acquisition of the assets of Stealth.com in its fiscal 2015 third quarter, the Company recognized a discrete income tax benefit of approximately $1.0 million for the three and nine months ended March 31, 2015 in relation to the substantial reversal of a valuation allowance previously established against its Canadian net operating loss carryforwards. The remaining valuation allowance of approximately $0.1 million recorded against this approximate $1.1 million deferred tax asset is expected to be reversed and recognized as a reduction of the Company's effective tax rate during its fiscal 2015 fourth quarter. Additional discrete items include return to provision adjustments, certain jurisdictional audit adjustments and changes in state apportionment factors in relation to the Company's acquisitions during the current fiscal year. Excluding all discrete items, the Company's effective rate was 33.7% and 34.0% for the three and nine months ended March 31, 2015, respectively,

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compared to 32.2% and 32.7% for the three and nine months ended March 31, 2014, respectively. The Company’s effective income tax rate for the interim periods presented is based on management’s estimate of the Company’s effective tax rate for the applicable year and differs from the Federal statutory income tax rate primarily due to applicable permanent differences, foreign income taxes and state income taxes.

(9) Defined Benefit Pension Plan

As of March 31, 2015, approximately 400 employees and retirees of the Company were covered by a defined benefit pension plan. Effective April 1, 2009, participation and the accrual of benefits in this pension plan were frozen, at which time all participants became fully vested and all prior service costs were recognized. The components of net periodic pension expense are as follows for the three and nine months ended March 31, 2015 and 2014 (in thousands):

	For the Three Months Ended						For the Nine Months Ended
	March 31, 2015			March 31, 2014			March 31, 2015			March 31, 2014
Service cost	$	—		$	—		$	—		$	—
Interest cost	82			89			245			266
Expected return on plan assets	(140		)	(131		)	(420		)	(393		)
Amortization of prior service cost	—			—			—			—
Amortization of unrecognized net actuarial loss	20			32			60			96
Net pension income	(38		)	(10		)	(115		)	(31		)
Pro rata recognition of lump-sum settlements	—			—			—			—
Total pension income	$	(38	)	$	(10	)	$	(115	)	$	(31	)

The Company’s policy is to fund the plan based upon legal requirements and tax regulations. During the nine months ended March 31, 2015, no contribution was made to the pension plan. During the nine months ended March 31, 2014, less than $0.1 million was contributed to the pension plan. For further information on future funding projections and other pension disclosures see Part II, Item 8, Note 10 “Employee Retirement Benefit Plans” of the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2014.

(10) Commitments and Contingencies

Sparton has been involved with ongoing environmental remediation since the early 1980’s related to one of its former manufacturing facilities, located in Albuquerque, New Mexico (“Coors Road”). Although the Company entered into a long-term lease of the Coors Road property that was accounted for as a sale of property during fiscal 2010, it remains responsible for the remediation obligations related to its past operation of this facility. During the fourth quarter of fiscal 2014, Sparton completed a review of its remediation plan, which included remediation methods currently in use, desired outcomes, progress to date, anticipated progress over the next sixteen years and estimated costs to complete the remediation plan by fiscal 2030, following the terms of a March 2000 consent decree. The Company’s minimum cost estimate is based upon existing technology and excludes certain legal costs, which are expensed as incurred. The Company’s estimate includes equipment and operating and maintenance costs for onsite and offsite pump and treat containment systems, as well as continued onsite and offsite monitoring. It also includes periodic reporting requirements. During this latest review, the Company found: additional concentrations of contaminants on-site that required clean-up actions previously not included within the remediation plan; progress to date on the removal of certain other on-site contaminants was taking place slower than previously anticipated; and that certain efficiencies regarding periodic reporting were not being realized as had been previously anticipated. The discovery of additional on-site contaminants, slower than expected removal rates of other on-site contaminants and continued high periodic reporting costs added significant additional costs to the remediation project that are expected to continue for a number of years. As a result, the remaining estimated minimum future undiscounted costs of this financial liability increased to $8.2 million at June 30, 2014, thereby requiring a $4.2 million non-cash charge against operations in the fourth quarter of fiscal 2014. As of March 31, 2015, the remaining estimated minimum future undiscounted costs of this financial liability is $7.7 million. This charge is net of United States Department of Energy (“DOE”) reimbursements of $1.5 million expected to take place in future years, under the fiscal 2003 agreement between the Company and the DOE, as further explained below. Of the $7.7 million financial liability, $0.6 million is classified as a current liability and included on the balance sheet in other accrued expenses.

In fiscal 2003, Sparton reached an agreement with the United States Department of Energy (“DOE”) and others to recover certain remediation costs. Under the settlement terms, Sparton received cash and obtained some degree of risk protection as the DOE agreed to reimburse Sparton for 37.5% of certain future environmental expenses in excess of $8.4

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million incurred from the date of settlement, of which approximately $5.8 million has been expended as of March 31, 2015 toward the $8.4 million threshold. It is expected that the DOE reimbursements will commence in the years after fiscal 2020. At June 30, 2014, the Company recognized a $1.5 million long-term asset in relation to these expected reimbursements and is considered collectible. The $1.5 million DOE receivable is included in other non-current assets on the balance sheet. Uncertainties associated with environmental remediation contingencies are pervasive and often result in wide ranges of reasonably possible outcomes. Estimates developed in the early stages of remediation can vary significantly. Normally a finite estimate of cost does not become fixed and determinable at a specific point in time. Rather, the costs associated with environmental remediation become estimable over a continuum of events and activities that help to frame and define a liability. Factors which cause uncertainties for the Company include, but are not limited to, the effectiveness of the current work plans in achieving targeted results and proposals of regulatory agencies for desired methods and outcomes. It is possible that cash flows and results of operations could be materially affected by the impact of changes associated with the ultimate resolution of this contingency. At March 31, 2015, the Company estimates that it is reasonably possible, but not probable, that future environmental remediation costs associated with the Company’s past operations at the Coors Road property, in excess of amounts already recorded, could be up to $3.1 million before income taxes over the next sixteen years, with such amount expected to be offset by related reimbursement from the DOE of $1.0 million.

The Company and its subsidiaries are also involved in certain existing compliance issues with the EPA and various state agencies, including being named as a potentially responsible party at several sites. Potentially responsible parties ("PRPs") can be held jointly and severally liable for the clean-up costs at any specific site. The Company’s past experience, however, has indicated that when it has contributed relatively small amounts of materials or waste to a specific site relative to other PRPs, its ultimate share of any clean-up costs has been minor. Based upon available information, the Company believes it has contributed only small amounts to those sites in which it is currently viewed as a PRP and that reasonably possible losses related to these compliance issues are immaterial.

Litigation — On September 24, 2013, L-3 Communications Corporation, doing business as L-3 Linkabit (“Linkabit”) filed a complaint in the United States District Court for the Middle District of Florida, Orlando Division, against Sparton Corporation and Sparton Electronics alleging, among other things, that the Company failed to follow Linkabit drawings for the manufacture and assembly of certain products and that the Company changed its manufacturing process resulting in shipment of defective products to Linkabit. Linkabit seeks damages for breach of contract, breach of covenants, breach of warranties and negligence. In response to the Company's motion to dismiss on January 10, 2014, Linkabit filed its first amended complaint deleting the alleged negligence claims.  Trial is scheduled on January 19, 2016.  The Company believes that its defenses to the claims are very strong and it intends to defend this action vigorously.  Given the stage of the litigation and the unresolved remaining questions of fact, no liability has been recorded as the Company cannot estimate any loss, or range of loss, with confidence at this time.

U.S. Government Audits — Federal government agencies, including the Defense Contract Audit Agency and the Defense Contract Management Agency, routinely audit and evaluate government contracts and government contractors’ administrative processes and systems. These agencies review the Company’s performance on contracts, pricing practices, cost structure, financial capability and compliance with applicable laws, regulations and standards. They also review the adequacy of the Company’s internal control systems and policies, including the Company’s purchasing, accounting, estimating, compensation and management information processes and systems. The Company works closely with these agencies to ensure compliance.

Other — In addition to the foregoing, from time to time, the Company is involved in various legal proceedings relating to claims arising in the ordinary course of business. The Company is not currently a party to any other such legal proceedings, the adverse outcome of which, individually or in the aggregate, is expected to have a material adverse effect on our business, financial condition or results of operations.

(11) Stock-Based Compensation

The Company has two long-term incentive plans. The Sparton Corporation Stock Incentive Plan, as amended and restated (the “2001 Plan”) was approved by the Company’s shareholders on October 24, 2001. The Sparton Corporation 2010 Long-Term Incentive Plan (the “2010 Plan”) was approved by the Company’s shareholders on October 28, 2009.

2001 Plan.Under the 2001 Plan, the Company may grant to employees and non-employee directors incentive and non-qualified stock options, stock appreciation rights, restricted stock and other stock-based awards. All of the stock options issued to date under the 2001 Plan have either three, five or ten-year lives with either immediate vesting or vesting on an annual basis over four years beginning one year after grant date. Restricted stock awards granted to date to employees under the 2001 Plan vest annually over periods ranging from approximately 2.5 to 4.0 years, in some cases subject to achievement of certain financial performance metrics in addition to the service requirements. Unrestricted stock awards granted to date under the 2001

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Plan represent annual stock grants to directors as a component of their overall compensation. The 2001 Plan’s termination date with respect to the granting of new awards was October 24, 2011. The total number of shares authorized to be granted under the 2001 Plan was 970,161 shares of the Company’s common stock, which equals the number of underlying awards previously made under the 2001 Plan.

2010 Plan.Under the 2010 Plan, the Company may grant to employees, officers and directors of the Company or its subsidiaries incentive and non-qualified stock options, stock appreciation rights, restricted stock or restricted stock units, performance awards and other stock-based awards, including grants of shares. Stock options issued to date under the 2010 Plan have ten-year lives and vest annually over four years. Restricted stock and restricted stock unit awards granted to date to employees under the 2010 Plan vest annually over four years, in some cases subject to achievement of certain financial performance metrics in addition to the service requirements. Unrestricted stock awards granted to date under the 2010 Plan represent annual stock grants to directors as a component of their overall compensation. The 2010 Plan has a term of ten years. The total number of shares that may be awarded under the 2010 Plan is 1,000,000 shares of common stock, of which amount, 487,619 shares remain available for awards as of March 31, 2015.

The following table shows stock-based compensation expense by type of share-based award for the three and nine months ended March 31, 2015 and 2014, respectively, included in the condensed consolidated statements of income (in thousands):

	For the Three Months Ended				For the Nine Months Ended
	March 31, 2015		March 31, 2014		March 31, 2015		March 31, 2014
Fair value expense of stock option awards	$	82	$	—	$	223	$	—
Restricted stock units	166		—		451		—
Restricted and unrestricted stock	252		370		1,044		1,287
Total stock-based compensation	$	500	$	370	$	1,718	$	1,287

The following table shows the total remaining unrecognized compensation cost related to stock options, restricted stock units and restricted stock, as well as the weighted average remaining required service period over which such costs will be recognized as of March 31, 2015:

	Total Remaining Unrecognized Compensation Cost		Weighted Average Remaining Required Service Period
	(in thousands)		(in years)
Fair value expense of stock option awards	$	638	2.02
Restricted stock units	1,296		2.02
Restricted stock	905		1.73
	$	2,839	1.92

During the nine months ended March 31, 2015, the Company awarded an aggregate of 93,805 stock options to certain members of management with a weighted average exercise price of $26.74. The fair value of each stock option is estimated at the grant date using the Black-Scholes option pricing method. The table below outlines the weighted average assumptions used for the options granted during the nine months ended March 31, 2015:

	Weighted Average
Risk free interest rate	2.06	%
Volatility	34.10	%
Dividend yield	—	%
Expected life in years	6.25
Fair value price	$9.99

The risk-free interest rate was determined using the then implied yield currently available for zero-coupon U.S. government issues with a remaining term equal to the expected life of the stock options. The expected volatility assumption used in the Black-Scholes option pricing models was based on the historical volatility of the Company’s common stock. The Company does not currently intend to pay cash dividends and thus has assumed a 0% dividend yield. The Company estimates the expected life for stock options based on expected future exercise patterns.

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The Company did not grant any stock options during the nine months ended March 31, 2014.

The following is a summary of activity for the nine months ended March 31, 2015 related to the Company's stock options granted under its long-term incentive plans:

	Number of Options		Weighted Average Exercise Price
Options outstanding at June 30, 2014	38,543		$	8.57
Granted	93,805		26.74
Exercised	(19,247	)	8.57
Forfeited	(15,988	)	8.57
Options outstanding at March 31, 2015	97,113		26.12
Exercisable at March 31, 2015	3,308		$	8.57

The following is a summary of options outstanding and exercisable at March 31, 2015:

	Options Outstanding						Options Exercisable
Range of Exercise Prices	Number Outstanding	Weighted Average Remaining Contractural Life (in years)	Weighted Average Exercise Price		Aggregate Intrinsic Value (in thousands)		Number Exercisable	Weighted Average Remaining Contractural Life (in years)	Weighted Average Exercise Price		Aggregate Intrinsic Value (in thousands)
$8.57	3,308	0.08	$	8.57	$	53	3,308	0.08	$	8.57	$	53
$23.85-$26.86	93,805	9.44	26.74		—		—	—	—		—
	97,113	9.12	$	26.12	$	53	3,308	0.08	$	8.57	$	53

The intrinsic value of options exercised during the nine months ended March 31, 2015 and 2014 was approximately $0.1 million and $0.2 million, respectively.

The following is a summary of activity for the nine months ended March 31, 2015 related to restricted shares, unrestricted shares and restricted stock units granted under the Company’s long-term incentive plans:

	Shares		Weighted Average Grant Date Fair Value
Restricted shares at June 30, 2014	316,997		$	12.38
Granted	97,979		23.94
Vested	(172,459	)	11.16
Forfeited	(15,313	)	17.27
Restricted shares and restricted stock units at March 31, 2015	227,204		$	17.96

The total fair value of restricted stock vested in the nine months ended March 31, 2015 and 2014 was approximately $4.3 million and $1.6 million, respectively.

(12) Earnings Per Share Data

The Company calculates basic net income available to common shareholders per share by dividing net income available to common shareholders by the weighted-average number of common shares and participating securities outstanding during the period. Diluted net income available to common shareholders per share takes into account the dilutive effect of additional potential common shares issued or issuable under our stock-based compensation plans and are determined using the treasury stock method. Unvested participating restricted shares, which contain non-forfeitable rights to dividends whether paid or unpaid, are included in the number of shares outstanding for both basic and diluted earnings per share calculations. Unvested contingently issuable participating restricted shares are excluded from basic earnings per share. In the event of a net loss, all unvested participating restricted stock awards are excluded from the calculation of both basic and diluted loss per share.

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Earnings per share calculations, including net income available to common shareholders and weighted average number of shares of common stock outstanding used in calculating basic and diluted income per share, for the three and nine months ended March 31, 2015 and 2014 are as follows:

	For the Three Months Ended					For the Nine Months Ended
	March 31, 2015			March 31, 2014		March 31, 2015			March 31, 2014
Numerator (in thousands):
Net income	$	4,133		$	4,246	$	5,891		$	10,016
Less net income allocated to contingently issuable participating securities	(59		)	—		(85		)	—
Net income available to common shareholders	$	4,074		$	4,246	$	5,806		$	10,016
Weighted average shares outstanding – Basic	9,764,838			10,124,587		9,874,185			10,104,029
Dilutive effect of stock options	4,537			25,666		14,720			23,782
Weighted average shares outstanding – Diluted	9,769,375			10,150,253		9,888,905			10,127,811
Net income available to common shareholders per share:
Basic	$	0.42		$	0.42	$	0.59		$	0.99
Diluted	$	0.42		$	0.42	$	0.59		$	0.99

For the three months ended March 31, 2015 and 2014, there were no unvested participating restricted shares included in determining both basic and diluted earnings per share. For the nine months ended March 31, 2015 and 2014, 175,666 and 316,997, respectively, of unvested participating restricted shares were included in determining both basic and diluted earnings per share. Potential common shares excluded from the calculation of diluted net income per share because they were either contingently issuable or their inclusion would be anti-dilutive were 306,009 for each of the three and nine months ended March 31, 2015. No potential shares of common stock were excluded from diluted income per share computations for the three and nine months ended March 31, 2014.

(13) Stock Repurchase Plans

On October 22, 2014, the Company’s Board of Directors approved a repurchase by the Company of up to $5.0 million of shares of its common stock. The Company was authorized to purchase shares from time to time in open market, block transactions and privately negotiated transactions. The stock repurchase program did not require the Company to repurchase any specific number of shares. Pursuant to this stock repurchase program, during the nine months ended March 31, 2015, the Company purchased 181,278 shares of its common stock at an average price of $27.55 per share for approximately $5.0 million. Shares purchased under the plan were canceled upon repurchase. As of March 31, 2015, all authorized funds under the stock repurchase program were expended.

On May 1, 2013, the Company’s Board of Directors approved a repurchase by the Company of up to $3.0 million of shares of its common stock over a 12-month period. The Company was authorized to purchase shares from time to time in open market, block transactions and privately negotiated transactions at prices deemed appropriate by management, depending on market conditions, applicable laws and other factors. The stock repurchase program did not require the Company to repurchase any specific number of shares and can be modified, extended or terminated by the Board of Directors at any time. Pursuant to this stock repurchase program, during the three months ended September 30, 2013, the Company purchased 47,119 shares of its common stock at an average price of $18.51 per share for approximately $0.9 million. Previously, during the year ended June 30, 2013, the Company purchased 128,158 shares of its common stock at an average price of $16.55 per share for approximately $2.1 million. Total shares purchased pursuant to this stock repurchase program total 175,277 at an average price of $17.08. Shares purchased under the plan were cancelled upon repurchase. As of June 30, 2014, all authorized funds under the stock repurchase program were expended.

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(14) Business Segments

The Company is a provider of complex and sophisticated electromechanical devices with capabilities that include concept development, design and manufacturing engineering, production, distribution and field service. The Company serves the Medical & Biotechnology, Military & Aerospace and Industrial & Commercial markets through two reportable business segments; Manufacturing & Design Services and Engineered Components & Products. Reportable segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or group, in assessing performance and allocating resources. During the first quarter of fiscal 2015, the Company changed its reportable segments to align with the way it internally reports and manages the business. The prior reportable segments of Medical and Complex Systems have been combined and are referred to as Manufacturing and Design Services ("MDS"). The MDS segment represents the Company's contract manufacturing and design services where the customer owns the related intellectual property. The prior Defense and Security Systems reportable segment and subsequently acquired businesses providing rugged electronics are now referred to as Engineered Components and Products ("ECP"). The ECP segment represents the Company's manufacturing and design services where the Company owns the related intellectual property. The Company has restated the prior period to conform to the current year's presentation.

The Company uses an internal management reporting system, which provides important financial data to evaluate performance and allocate the Company's resources on a segment basis. Net sales are attributed to the segment in which the product is manufactured or service is performed. A segment's performance is evaluated based upon its operating income (loss). A segment's operating income (loss) includes its gross profit on sales less its selling and administrative expenses, including allocations of certain corporate operating expenses. Certain corporate operating expenses are allocated to segment results based on the nature of the service provided. Other corporate operating expenses, including certain administrative, financial and human resource activities as well as items such as interest expense, interest income, other income (expense) and income tax expense (benefit), are not allocated to operations and are excluded from segment profit. These costs are not allocated to the segments, as management excludes such costs when assessing the performance of the segments. Inter-segment transactions are generally accounted for at amounts that approximate arm's length transactions. Identifiable assets by segments are those assets that are used in each segment's operations. The accounting policies for each of the segments are the same as for the Company taken as a whole.

Manufacturing and Design Services segment operations are comprised of contract design, manufacturing and aftermarket repair and refurbishment of sophisticated printed circuit card assemblies, sub-assemblies, full product assemblies and cable/wire harnesses for customers seeking to bring their intellectual property to market. Customers include OEM and ET customers serving the Medical & Biotechnology, Military & Aerospace and Industrial & Commercial markets. In manufacturing for its customers, this segment adheres to very strict military and aerospace specifications, Food and Drug Administration (“FDA”) guidelines and approvals, in addition to product and process certifications. Sparton additionally is a leading developer of embedded software to operate medical devices and diagnostic equipment.

Engineered Components and Products segment operations are comprised of design, development and production of proprietary products for both domestic and foreign defense as well as commercial needs. Sparton designs and manufactures ASW devices known as sonobuoys for the U.S. Navy and foreign governments that meet Department of State licensing requirements. This segment also performs an engineering development function for the United States military and prime defense contractors for advanced technologies ultimately leading to future defense products as well as replacements for existing products. The sonobuoy product line is built to stringent military specifications. These products are restricted by International Tariff and Arms Regulations (“ITAR”) and qualified by the U.S. Navy, which limits opportunities for competition. Sparton is a provider of ruggedized flat panel display systems for military panel PC workstations, air traffic control and industrial and commercial marine applications. Ruggedized displays are manufactured for prime contractors, in some cases to specific military grade specifications. This segment is also a provider of high performance industrial grade computer systems and peripherals. Additionally, this business unit internally develops and markets commercial products for underwater acoustics and microelectromechanical (“MEMS”)-based inertial measurement.

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Operating results and certain other financial information about the Company’s two reportable segments for the three and nine months ended March 31, 2015 and 2014 and as of March 31, 2015 and June 30, 2014 were as follows (in thousands):

	For the Three Months Ended March 31, 2015
	Manufacturing and Design Services		Engineered Components and Products		Corporate and Other Unallocated			Eliminations			Total
Sales	$	62,150	$	36,022	$	—		$	(5,107	)	$	93,065
Gross profit	8,073		10,558		—			—			18,631
Operating income (loss)	2,093		7,208		(4,419		)	—			4,882
Selling and administrative expenses	4,623		2,831		4,429			—			11,883
Internal research and development expenses	—		418		—			—			418
Depreciation/amortization	2,051		356		224			—			2,631
Capital expenditures	201		160		1,714			—			2,075
	For the Three Months Ended March 31, 2014
	Manufacturing and Design Services		Engineered Components and Products		Corporate and Other Unallocated			Eliminations			Total
Sales	$	59,997	$	28,853	$	—		$	(4,867	)	$	83,983
Gross profit	7,872		8,606		—			—			16,478
Operating income (loss)	3,466		6,112		(3,203		)	—			6,375
Selling and administrative expenses	3,437		2,161		3,209			—			8,807
Internal research and development expenses	—		213		—			—			213
Depreciation/amortization	1,830		341		99			—			2,270
Capital expenditures	587		168		86			—			841

	For the Nine Months Ended March 31, 2015
	Manufacturing and Design Services		Engineered Components and Products		Corporate and Other Unallocated			Eliminations			Total
Sales	$	179,191	$	88,010	$	—		$	(11,469	)	$	255,732
Gross profit	23,367		23,249		—			—			46,616
Operating income (loss)	6,872		14,747		(13,176		)	—			8,443
Selling and administrative expenses	12,485		7,588		13,215			—			33,288
Internal research and development expenses	—		715		—			—			715
Depreciation/amortization	6,225		942		510			—			7,677
Capital expenditures	948		1,038		1,917			—			3,903
	For the Nine Months Ended March 31, 2014
	Manufacturing and Design Services		Engineered Components and Products		Corporate and Other Unallocated			Eliminations			Total
Sales	$	181,760	$	72,824	$	—		$	(11,583	)	$	243,001
Gross profit	25,744		18,163		—			—			43,907
Operating income (loss)	13,232		10,986		(8,951		)	—			15,267
Selling and administrative expenses	10,190		5,984		8,965			—			25,139
Internal research and development expenses	—		1,004		—			—			1,004
Restructuring Charges	188		—		—			—			188
Depreciation/amortization	4,714		905		291			—			5,910
Capital expenditures	1,073		787		393			—			2,253

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	As of March 31, 2015
	Manufacturing and Design Services		Engineered Components and Products		Corporate and Other Unallocated		Eliminations		Total
Total assets	$	162,650	$	58,349	$	22,516	$	—	$	243,515
	As of June 30, 2014
	Manufacturing and Design Services		Engineered Components and Products		Corporate and Other Unallocated		Eliminations		Total
Total assets	$	144,991	$	35,033	$	18,956	$	—	$	198,980

(15) New Accounting Standards

In July 2013, the Financial Accounting Standards Board (the "FASB") issued authoritative guidance under Accounting Standards Update No. 2013-11 ("ASU 2013-11"), which provides guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss (“NOL”) carryforward, a similar tax loss or a tax credit carryforward exists. ASU 2013-11 requires entities to present an unrecognized tax benefit as a reduction of a deferred tax asset for an NOL or tax credit carryforward whenever the NOL or tax credit carryforward would be available to reduce the additional taxable income or tax due if the tax position is disallowed. This accounting standard update requires entities to assess whether to net the unrecognized tax benefit with a deferred tax asset as of the reporting date. ASU 2013-11 was effective for the Company’s first quarter of fiscal 2015. The adoption of this guidance did not have a significant impact on the Company's consolidated financial statements.

In May 2014, the FASB issued Accounting Standards Update No. 2014-09 ("ASU 2014-09"), which amends guidance for revenue recognition. Under the new standard, revenue will be recognized when control of the promised goods or services is transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods and services. The standard creates a five-step model that will generally require companies to use more judgment and make more estimates than under current guidance when considering the terms of contracts along with all relevant facts and circumstances. These include the identification of customer contracts and separating performance obligations, the determination of transaction price that potentially includes an estimate of variable consideration, allocating the transaction price to each separate performance obligation and recognizing revenue in line with the pattern of transfer. The standard also requires extensive additional disclosures to provide greater insight into revenues recognized and deferred, including quantitative and qualitative information about significant judgments and changes in those judgments made to determine the timing and amount of revenues recognized. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. Companies have the option of using either a full or modified retrospective approach in applying this standard. The Company is currently in the process of evaluating the impact of adoption on its consolidated financial statements. In April, 2015, the FASB proposed a one-year delay of the effective date for this new revenue recognition standard.  If the proposed accounting standard update is adopted, the revenue recognition standard will be effective for the Company beginning in the Company's fiscal year 2019.

(16) Subsequent Events

On April 13, 2015, the Company amended its Credit Facility to increase the size of the revolving line-of-credit facility by $75 million to $275 million, reload the uncommitted loans under the agreement to $100.0 million and to make other sublimit and definitional changes. See footnote 6 for a further discussion of the Company's Credit Facility.

On April 14, 2015, the Company completed the acquisition of Hunter Technology ("Hunter"), an $80.5 million annual revenue business, with operations located in Milpitas, CA (San Jose) and Lawrenceville, GA (Atlanta), in a $55 million all-cash transaction. Additional consideration of up to $13.0 million is contingent upon Hunter attaining certain performance thresholds during the twelve month period following the transaction. Hunter, which is part of the Company's MDS segment, was founded in 1968 and was one of the first electronic contract manufacturing providers specializing in military and aerospace applications. Today, Hunter is one of the few suppliers in the Silicon Valley region providing engineering design, new product introduction (NPI) and full-rate production manufacturing solutions working with major defense and aerospace companies, test and measurement suppliers, secure networking solution providers, medical device manufacturers, and a wide variety of industrial customers. The initial accounting for this acquisition is not complete pending detailed analyses of the facts and circumstances that existed as of the acquisition date.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following is management’s discussion and analysis of certain significant events affecting Sparton Corporation’s (the “Company” or “ Sparton”) results of operations and financial condition during the periods included in the accompanying financial statements. Additional information regarding the Company can be accessed via Sparton’s website at www.sparton.com. Information provided at the website includes, among other items, the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Quarterly Earnings Releases, News Releases and the Code of Business Conduct and Ethics, as well as various corporate charters and documents.

The Private Securities Litigation Reform Act of 1995 reflects Congress’ determination that the disclosure of forward-looking information is desirable for investors and encourages such disclosure by providing a safe harbor for forward-looking statements by corporate management. This report on Form 10-Q contains forward-looking statements within the scope of the Securities Act of 1933 and the Securities Exchange Act of 1934. The words “expects,” “anticipates,” “believes,” “intends,” “plans,” “will,” “shall,” and similar expressions, and the negatives of such expressions, are intended to identify forward-looking statements. In addition, any statements which refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. The Company undertakes no obligation to publicly disclose any revisions to these forward-looking statements to reflect events or circumstances occurring subsequent to filing this Form 10-Q with the Securities and Exchange Commission (“SEC”). These forward-looking statements are subject to risks and uncertainties, including, without limitation, those discussed below. Accordingly, Sparton’s future results may differ materially from historical results or from those discussed or implied by these forward-looking statements. The Company notes that a variety of factors could cause the actual results and experience to differ materially from anticipated results or other expectations expressed in the Company’s forward-looking statements.

Business Overview

General

Sparton is a provider of complex and sophisticated electromechanical devices with capabilities that include concept development, design and manufacturing engineering, production, distribution and field service. The Company serves the Medical & Biotechnology, Military & Aerospace and Industrial & Commercial markets through two reportable business segments; Manufacturing & Design Services and Engineered Components & Products.

All of the Company's facilities are certified to one or more of the ISO/AS standards, including ISO 9001, AS9100 and ISO 13485, with most having additional certifications based on the needs of the customers they serve. The Company's products and services include offerings for Original Equipment Manufacturers (“OEM”) and Emerging Technology (“ET”) customers that utilize microprocessor-based systems which include transducers, printed circuit boards and assemblies, sensors and electromechanical components, as well as development and design engineering services relating to these product sales. Sparton also develops and manufactures sonobuoys, anti-submarine warfare (“ASW”) devices used by the United States Navy as well as foreign countries friendly to the U.S. and manufactures ruggedized flat panel display systems for military panel PC workstations, air traffic control and industrial applications. Many of the physical and technical attributes in the production of these proprietary products are similar to those required in the production of the Company's other electrical and electromechanical products and assemblies.

Reportable segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or group, in assessing performance and allocating resources. During the first quarter of fiscal 2015, the Company changed its reportable segments to align with the way it internally reports and manages the business. The prior reportable segments of Medical and Complex Systems have been combined and are referred to as Manufacturing and Design Services ("MDS"). The MDS segment represents the Company's contract manufacturing and design services where the customer owns the related intellectual property. The prior Defense and Security Systems reportable segment and subsequently acquired businesses providing rugged electronics are now referred to as Engineered Components and Products ("ECP"). The ECP segment represents the Company's manufacturing and design services where the Company owns the related intellectual property. The Company has restated the prior period to conform to the current year's presentation.

The Company uses an internal management reporting system, which provides important financial data to evaluate performance and allocate the Company's resources on a segment basis. Net sales are attributed to the segment in which the product is manufactured or service is performed. A segment's performance is evaluated based upon its operating income (loss). A segment's operating income (loss) includes its gross profit on sales less its selling and administrative expenses, including allocations of certain corporate operating expenses. Certain corporate operating expenses are allocated to segment results based on the nature of the service provided. Other corporate operating expenses, including certain administrative, financial and

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human resource activities as well as items such as interest expense, interest income, other income (expense) and income tax expense (benefit), are not allocated to operations and are excluded from segment profit. These costs are not allocated to the segments, as management excludes such costs when assessing the performance of the segments. Inter-segment transactions are generally accounted for at amounts that approximate arm's length transactions. Identifiable assets by segments are those assets that are used in each segment's operations. The accounting policies for each of the segments are the same as for the Company taken as a whole.

Manufacturing and Design Services Segment

Manufacturing and Design Services segment operations are comprised of contract design, manufacturing and aftermarket repair and refurbishment of sophisticated printed circuit card assemblies, sub-assemblies, full product assemblies and cable/wire harnesses for customers seeking to bring their intellectual property to market. Customers include OEM and ET customers serving the Medical & Biotechnology, Military & Aerospace and Industrial & Commercial markets. In manufacturing for its customers, this segment adheres to very strict military and aerospace specifications, Food and Drug Administration (“FDA”) guidelines and approvals, in addition to product and process certifications. Sparton additionally is a leading developer of embedded software to operate medical devices and diagnostic equipment.

Engineered Components and Products

Engineered Components and Products segment operations are comprised of design, development and production of proprietary products for both domestic and foreign defense as well as commercial needs. Sparton designs and manufactures ASW devices known as sonobuoys for the U.S. Navy and foreign governments that meet Department of State licensing requirements. This segment also performs an engineering development function for the United States military and prime defense contractors for advanced technologies ultimately leading to future defense products as well as replacements for existing products. The sonobuoy product line is built to stringent military specifications. These products are restricted by International Tariff and Arms Regulations (“ITAR”) and qualified by the U.S. Navy, which limits opportunities for competition. Sparton is a provider of ruggedized flat panel display systems for military panel PC workstations, air traffic control and industrial and commercial marine applications. Ruggedized displays are manufactured for prime contractors, in some cases to specific military grade specifications. This segment is also a provider of high performance industrial grade computer systems and peripherals. Additionally, this business unit internally develops and markets commercial products for underwater acoustics and microelectromechanical (“MEMS”)-based inertial measurement.

Risks and Uncertainties

Sparton, as a high-mix, low to medium volume supplier, provides rapid product turnaround for customers. High-mix describes customers needing multiple product types with generally low to medium volume manufacturing runs. As a contract manufacturer with customers in a variety of markets, the Company has substantially less visibility of end user demand and, therefore, forecasting sales can be problematic. Customers may cancel their orders, change production quantities and/or reschedule production for a number of reasons. Depressed economic conditions may result in customers delaying delivery of product, or the placement of purchase orders for lower volumes than previously anticipated. Unplanned cancellations, reductions or delays by customers may negatively impact the Company's results of operations. As many of the Company's costs and operating expenses are relatively fixed within given ranges of production, a reduction in customer demand can disproportionately affect the Company's gross margins and operating income. The majority of the Company's sales have historically come from a limited number of customers. Significant reductions in sales to, or a loss of, one of these customers could materially impact our operating results if the Company were not able to replace those sales with new business.

Other risks and uncertainties that may affect our operations, performance, growth forecasts and business results include, but are not limited to, timing and fluctuations in U.S. and/or world economies, sharp volatility of world financial markets over a short period of time, competition in the overall contract manufacturing business, availability of production labor and management services under terms acceptable to the Company, Congressional budget outlays for sonobuoy development and production, Congressional legislation, uncertainties associated with the outcome of litigation, changes in the interpretation of environmental laws and the uncertainties of environmental remediation and customer labor and work strikes. Further risk factors are the availability and cost of materials, as well as non-cancelable purchase orders we have committed to in relation to customer forecasts that can be subject to change. A number of events can impact these risks and uncertainties, including potential escalating utility and other related costs due to natural disasters, as well as political uncertainties such as the unrest in Africa and the Middle East and increased tension between Vietnam and China over oil rights in the South China Sea. Additional trends, risks and uncertainties include dependence on key personnel, risks surrounding acquisitions, uncertainties surrounding the global economy, U.S. healthcare legislation, U.S. budget sequestration and debt ceiling negotiations and the effects of those uncertainties on OEM behavior, including heightened inventory management, product development cycles and outsourcing strategies. Finally, the Sarbanes-Oxley Act, and more recently the Dodd-Frank Act, have required or will require changes in, and formalization of, some of the Company's corporate governance and compliance practices. The SEC and the

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New York Stock Exchange have also passed or will pass related rules and regulations requiring additional compliance activities, including those implementing the conflict minerals provisions of the Dodd-Frank Act. Compliance with these rules has increased administrative costs and may increase these costs further in the future. A further discussion of the Company’s risk factors has been included in Part I, Item 1A, “Risk Factors”, of the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2014. Management cautions readers not to place undue reliance on forward-looking statements, which are subject to influence by the enumerated risk factors as well as unanticipated future events.

Acquisitions

Fiscal Year 2015

Hunter Technology

On April 14, 2015, the Company completed the acquisition of Hunter Technology ("Hunter"), an $80.5 million annual revenue business, with operations located in Milpitas, CA (San Jose) and Lawrenceville, GA (Atlanta), in a $55 million all-cash transaction. Additional consideration of up to $13.0 million is contingent upon Hunter attaining certain performance thresholds during the twelve month period following the transaction. Hunter, which is part of the Company's MDS segment, was founded in 1968 and was one of the first electronic contract manufacturing providers specializing in military and aerospace applications. Today, Hunter is one of the few suppliers in the Silicon Valley region providing engineering design, new product introduction (NPI) and full-rate production manufacturing solutions working with major defense and aerospace companies, test and measurement suppliers, secure networking solution providers, medical device manufacturers, and a wide variety of industrial customers. The initial accounting for this acquisition is not complete pending detailed analyses of the facts and circumstances that existed as of the acquisition date.

Stealth.com

On March 16, 2015, the Company completed the acquisition of substantially all of the assets of Stealth.com ("Stealth"), an $8 million USD annual revenue business, located in Woodbridge, ON, Canada in a $16.0 CAD ($12.6 USD) million all-cash transaction. The transaction includes a $1.9 million CAD escrowed holdback which is available to fund any potential post-closing working capital adjustment and potential seller indemnification obligations in relation to the acquisition agreement. The acquired business, which is part of the Company's ECP segment, is a supplier of high performance ruggedized industrial grade computer systems and peripherals that include Mini PC/Small Form Factor Computers, Rackmount Server PCs, Rugged Industrial LCD Monitors, Rugged Portable PCS, Industrial Grade Keyboards and Rugged Trackballs and Mice. The initial accounting for this acquisition is not complete pending detailed analyses of the facts and circumstances that existed as of the acquisition date.

KEP Marine, Inc.

On January 21, 2015, the Company completed the acquisition of certain assets of KEP Marine, a $3 million annual revenue business and division of Kessler-Ellis Products, located in Eatontown, NJ, in a $4.3 million all-cash transaction. The acquired business, which is part of the Company's ECP segment, designs and manufactures industrial displays, industrial computers and HMI software for the Marine market. These product lines will be consolidated into the Aydin Displays facility, located in Birdsboro, PA. The initial accounting for this acquisition is not complete pending detailed analyses of the facts and circumstances that existed as of the acquisition date.

Real-Time Enterprises, Inc.

On January 20, 2015, the Company completed the acquisition of Real-Time Enterprises, Inc. ("RTEmd"), a $4 million annual revenue business, located in Pittsford, NY, in a $2.3 million all-cash transaction. Additional consideration of up to $0.8 million is contingent upon RTEmd attaining certain performance thresholds during the twelve month period following the transaction. RTEmd will continue to service its current and future customers out of its Pittsford, NY location. The acquired business, which is part of the Company's MDS segment, is a leading developer of embedded software to operate medical devices and diagnostic equipment through a disciplined approach to product development and quality/regulatory services with specific product experience such as patient monitoring, medical imaging, in-vitro diagnostics, electro-medical systems, surgical applications, ophthalmology, nephrology, infusion pumps and medical imaging. The initial accounting for this acquisition is not complete pending detailed analyses of the facts and circumstances that existed as of the acquisition date.

Argotec, Inc.

On December 8, 2014, the Company completed the acquisition of certain assets of Argotec, Inc. ("Argotec"), located in Longwood, FL in a $0.4 million all-cash transaction. Historical revenues of this business are not material. The acquired business, which is part of the Company's ECP segment, is engaged in developing and manufacturing sonar transducer products

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and components for the U.S. Navy and also provides aftermarket servicing. These products have been consolidated into the Company's DeLeon Springs, FL location.

Industrial Electronic Devices, Inc.

On December 3, 2014, the Company completed the acquisition of certain assets of Industrial Electronic Devices, Inc. ("IED"), a $3.0 million annual revenue business, located in Flemington, NJ in a $3.3 million all-cash transaction, of which approximately $0.3 million remains payable in relation to a New Jersey state bulk sale holdback requirement. The transaction includes a $0.5 million escrowed holdback which is available to fund any potential seller indemnification obligations in relation to the acquisition agreement. The acquired business, which is part of the Company's ECP segment, designs and manufactures a full line of ruggedized displays for the Industrial and Marine markets. IED's catalog spans over 600 standard, semi-custom and custom configurations, incorporating some of the most advanced flat panel displays and touch screen technology available. These product lines will be consolidated into the Aydin Displays facility, located in Birdsboro, PA. These product lines will be consolidated into the Aydin Displays facility, located in Birdsboro, PA.

Electronic Manufacturing Technology, LLC.

On July 9, 2014, the Company completed the acquisition of Electronic Manufacturing Technology, LLC (“eMT”), located in Irvine, CA. The purchase price of $22.1 million, which included $1.5 million of acquired cash, is subject to certain post-closing adjustments and was financed through the use of borrowings under the Company's Credit Facility. The transaction includes a $2.4 million escrowed holdback which is available to fund any potential post-closing working capital adjustment and potential seller indemnification obligations in relation to the acquisition agreement. The acquired business, which is part of the Company's MDS segment and which is expected to add $25 million (unaudited) in annualized revenue, is engaged in the contract services business of manufacturing electromechanical controls and electronic assemblies. Their customer profile includes international Fortune 1000 manufacturers of highly reliable industrial excimer laser products, laser eye surgery sub-assemblies, target simulators for space and aviation systems, power modules for computerized tomography products, test systems for commercial aerospace OEMs and toll road antennas and control boxes.

Fiscal Year 2014

Aubrey Group, Inc.

On March 17, 2014, the Company completed the acquisition of Aubrey Group, Inc. ("Aubrey”), located in Irvine, CA, in a $5.0 million all-cash transaction after settlement of an approximate $0.2 million post-closing working capital adjustment during the first quarter of fiscal 2015. Additional consideration of approximately $0.6 million was paid at closing for cash of the business in excess of net customer deposits held by Aubrey. The transaction was financed through the use of borrowings under the Company's Credit Facility. The acquired business, a design and manufacturing company, which is part of the MDS segment, develops new products for OEMs in the Medical and Biotechnological markets. Inventors, entrepreneurs and industry leading OEMs utilize Aubrey's design and engineering teams to develop innovative solutions in a timely manner, delivering its clients' new products into the marketplace faster and more cost effectively.

Beckwood Services, Inc.

On December 11, 2013, the Company completed the acquisition of Beckwood Services, Inc. ("Beckwood”), located in Plaistow, NH, in a $15.3 million all-cash transaction financed through the use of cash on hand and borrowings under the Company's Credit Facility. The transaction includes an approximate $1.5 million escrowed holdback which is available to fund potential seller indemnification obligations in relation to the acquisition agreement. The acquired business, which is part of the Company's MDS segment, develops electronic or electro-mechanical controls and electronic assemblies. Their customer profile includes international Fortune 1000 manufacturers of industrial control systems, analytical instruments, measuring and detecting equipment and military, defense and Homeland Security equipment.

Aydin Displays, Inc.

On August 30, 2013, the Company completed the acquisition of certain assets and liabilities of Aydin Displays, Inc. ("Aydin Displays" or “Aydin”), located in Birdsboro, PA, in a $15.5 million all-cash transaction, after settlement of a $0.5 million working capital adjustment during the third quarter of the Company's fiscal 2014 year. The transaction was financed through the use of borrowings under the Company's Credit Facility. The transaction includes an approximate $1.2 million escrowed holdback which is available to fund potential seller indemnification obligations in relation to the acquisition agreement. The acquired business, which is part of the Company's ECP segment, develops enhanced flat panel display and touch-screen solutions with application-critical performance criteria including ruggedization, high resolution, color accuracy, response/refresh times, sunlight readability and other criteria such as magnetic interference and emanations security for the

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Military & Aerospace and Civil Marine markets. These products are currently specified in the U.S. Navy P8A Poseidon ASW aircraft behind-the-cockpit control center, the command and control centers of many U.S. Navy ships, Federal Aviation Administration air traffic control systems and cockpit command centers for various civil marine applications. The acquired business will continue to operate as Aydin Displays.

Consolidated Results of Operations

Presented below is comparative data and discussions regarding our consolidated results of operations for the three and nine months ended March 31, 2015 compared to the three and nine months ended March 31, 2014. Results of operations for any period less than one year are not necessarily indicative of results of operations that may be expected for a full year. The following discussion should be read in conjunction with the Unaudited Condensed Consolidated Financial Statements and Notes thereto included in Item 1 of this report.

For the Three Months Ended March 31, 2015 compared to the Three Months Ended March 31, 2014

The following table presents selected condensed consolidated statement of income data for the three months ended March 31, 2015 and 2014 (dollars in thousands):

	2015					2014
	Total			% of Sales		Total			% of Sales
Net sales	$	93,065		100.0	%	$	83,983		100.0	%
Cost of goods sold	74,434			80.0		67,505			80.4
Gross profit	18,631			20.0		16,478			19.6
Selling and administrative expenses	11,883			12.8		8,807			10.5
Internal research and development expenses	418			0.4		213			0.2
Amortization of intangible assets	1,458			1.6		1,089			1.3
Other operating income, net	(10		)	—		(6		)	—
Operating income	4,882			5.2		6,375			7.6
Total other expense, net	(431		)	(0.5	)	(115		)	(0.1	)
Income before provision for income taxes	4,451			4.7		6,260			7.5
Provision for income taxes	318			0.3		2,014			2.4
Net income	$	4,133		4.4	%	$	4,246		5.1	%

MDS

The following table presents selected condensed consolidated statement of income data for the three months ended March 31, 2015 and 2014 (dollars in thousands):

	For the Three Months Ended March 31,
	2015		% of Sales		2014		% of Sales		$ Chg			% Chg
Sales
Base business	$	49,868	80.3	%	$	54,896	91.5	%	$	(5,028	)	(9.2	)%
Acquisitions	7,296		11.7		260		0.4		7,036			nmf
Intercompany	4,986		8.0		4,841		8.1		145			3.0
Total Sales	62,150		100.0		59,997		100.0		2,153			3.6
Gross Profit	8,073		13.0		7,872		13.1		201			2.6	%
Selling and administrative expenses	4,623		7.4		3,437		5.7		1,186			34.5
Amortization of intangible assets	1,357		2.2		969		1.6		388			40.0
Operating income	$	2,093	3.4	%	$	3,466	5.8	%	$	(1,373	)	(39.6	)%

MDS base business sales reflect sales from MDS facilities that were owned for the entire three months ended March 31, 2015 and 2014. MDS acquisition sales relate to the acquisition of Aubrey in fiscal 2014 and the acquisitions of eMT and

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RTEmd in fiscal 2015. The comparative decrease in base business sales reflects the previously disclosed loss of certain Fenwal program engagements with the Company that began in the Company's fiscal 2014 third quarter. The lost Fenwal programs negatively affected comparative sales $3.0 million in the third quarter of fiscal 2015. The remaining decrease reflects fluctuations in customer demand due to program cancellations, governmental funding and customer design related delays. MDS backlog was approximately $117.7 million at March 31, 2015 compared to $115.9 million at March 31, 2014. Commercial orders, in general, may be rescheduled or canceled without significant penalty, and, as a result, may not be a meaningful measure of future sales. A majority of the March 31, 2015 MDS backlog is currently expected to be realized in the next 12 months.

Gross profit percentage on MDS sales remained relatively consistent quarter over quarter. The selling and administrative expense increase is primarily comprised of incremental direct and allocated expenses related to the RTEmd, eMT, and Aubrey operations. The increase in amortization of intangible assets relates to the amortization of customer relationships, non-compete agreements and tradenames acquired as part of the fiscal 2015 eMT transaction and the non-compete agreements acquired as part of the fiscal 2014 Aubrey transaction.

ECP

The following table presents selected condensed consolidated statement of income data for the three months ended March 31, 2015 and 2014 (dollars in thousands): 

	For the Three Months Ended March 31,
	2015		% of Sales		2014		% of Sales		$ Chg			% Chg
Sales
Base business	$	35,487	98.5	%	$	28,827	99.9	%	$	6,660		23.1	%
Acquisitions	414		1.2		—		—		414			nmf
Intercompany	121		0.3		26		0.1		95			nmf
Total Sales	36,022		100.0		28,853		100.0		7,169			24.8
Gross Profit	10,558		29.3		8,606		29.8		1,952			22.7
Selling and administrative expenses	2,831		7.8		2,161		7.5		670			31.0
Amortization of intangible assets	101		0.3		120		0.4		(19		)	(15.8	)
Internal research and development expenses	418		1.2		213		0.7		205			96.2
Operating income	$	7,208	20.0	%	$	6,112	21.2	%	$	1,096		17.9	%

ECP base business sales reflect sales from ECP facilities that were owned for the entire three months ended March 31, 2015 and 2014 as well as sales in fiscal 2015 relating to IED, Argotec and KEP, as sales relating to these tuck-in acquisitions were not considered material for separate presentation. ECP acquisition sales relate to the acquisition of Stealth in fiscal 2015. The increase in ECP base business sales reflects increased sonobuoy sales to the U.S. Navy and increased sales of ruggedized flat panel displays, partially offset by decreased sonobuoy sales to foreign governments. Total sales to the U.S. Navy in the three months ended March 31, 2015 and 2014 was approximately $25.7 million and $18.8 million, or 28% and 22%, respectively, of consolidated Company net sales for those periods. Sonobuoy sales to foreign governments were $3.4 million and $5.6 million in the three months ended March 31, 2015 and 2014, respectively. ECP backlog was approximately $139.4 million at March 31, 2015 compared to $59.3 million at March 31, 2014. A majority of the March 31, 2014 ECP backlog is currently expected to be realized in the next 14 months.

Gross profit percentage on ECP sales was negatively affected in the current year quarter by unfavorable product mix, partially offset by the positive impact of increased sales volume. The selling and administrative expense increase reflects certain increased costs in anticipation of future growth.

Internal research and development expenses reflect costs incurred for the internal development of technologies for use in navigation, oil and gas exploration and flat panel display technology. These costs include salaries and related expenses, contract labor and consulting costs, materials and the cost of certain research and development specific equipment.

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Eliminations, Corporate Unallocated and Other

The following table presents selected condensed consolidated statement of income data for the three months ended March 31, 2015 and 2014 (dollars in thousands):

	For the Three Months Ended March 31,
	2015			2014			$ Chg			% Chg
Sales
Intercompany	$	(5,107	)	$	(4,867	)	$	(240	)	(4.9	)%
Total Sales	(5,107		)	(4,867		)	(240		)	(4.9	)
Gross Profit	—			—			—
Selling and administrative expenses	4,429			3,209			1,220			38.0
Other operating expenses	(10		)	(6		)	(4		)	(66.7	)
Operating loss	$	(4,419	)	$	(3,203	)	$	(1,216	)	(38.0	)%

Total corporate selling and administrative expenses before allocation to operating segments were $6.9 million and $5.1 million for the three months ended March 31, 2015 and 2014, respectively, or 7.4% and 6.1% of consolidated sales, respectively, reflecting certain fiscal 2015 increased costs in relation to consummated acquisitions and acquisition targets the Company eventually declined to proceed with, as well as certain increased costs in the fiscal 2015 period in anticipation of future growth. Of these costs, $2.5 million and $1.9 million, respectively, were allocated to segment operations in each of these periods. Allocations of corporate selling and administrative expenses are based on the nature of the service provided and can fluctuate from period to period.

Interest expense consists of interest and fees on the Company's outstanding debt and revolving credit facility, including amortization of financing costs. Interest expense was $0.5 million and $0.2 million for the three months ended March 31, 2015 and 2014, respectively. The comparative interest expense reflects comparative borrowings under the Company’s credit facility between the two periods. See Note 6, Debt, of the “Notes to Unaudited Condensed Consolidated Financial Statements” in this Quarterly Report on Form 10-Q for a further discussion of debt.

The Company recognized a number of discrete income tax items during the three months ended March 31, 2015. In relation to its acquisition of Stealth.com in its fiscal 2015 third quarter, the Company recognized a discrete income tax benefit of approximately $1.0 million for the three months ended March 31, 2015 in relation to the substantial reversal of a valuation allowance previously established against its Canadian net operating loss carryforwards. The remaining valuation allowance of approximately $0.1 million recorded against this approximate $1.1 million deferred tax asset is expected to be reversed and recognized as a reduction of the Company's effective tax rate during its fiscal 2015 fourth quarter. Additional discrete items include return to provision adjustments, certain jurisdictional audit adjustments and changes in state apportionment factors in relation to the Company's acquisitions during the current fiscal year. Excluding all discrete items, the Company's effective rate was 33.7% for the three months ended March 31, 2015, compared to 32.2% for the three months ended March 31, 2014. See Note 8, Income Taxes, of the “Notes to Unaudited Condensed Consolidated Financial Statements” in this Quarterly Report on Form 10-Q for a further discussion of income taxes.

Due to the factors described above, the Company reported net income of $4.1 million ($0.42 per share, basic and diluted) for the three months ended March 31, 2015, compared to net income of $4.2 million ($0.42 per share, basic and diluted) for the corresponding quarter last year.

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For the Nine Months Ended March 31, 2015 compared to the Nine Months Ended March 31, 2014

The following table presents selected condensed consolidated statement of income data for the nine months ended March 31, 2015 and 2014 (dollars in thousands):

	2015					2014
	Total			% of Sales		Total			% of Sales
Net sales	$	255,732		100.0	%	$	243,001		100.0	%
Cost of goods sold	209,116			81.8		199,094			81.9
Gross profit	46,616			18.2		43,907			18.1
Selling and administrative expenses	33,288			13.0		25,139			10.3
Internal research and development expenses	715			0.3		1,004			0.4
Amortization of intangible assets	4,209			1.6		2,323			1.0
Restructuring charges	—			—		188			0.1
Other operating income, net	(39		)	—		(14		)	—
Operating income	8,443			3.3		15,267			6.3
Total other expense, net	(1,432		)	(0.6	)	(394		)	(0.2	)
Income before provision for income taxes	7,011			2.7		14,873			6.1
Provision for income taxes	1,120			0.4		4,857			2.0
Net income	$	5,891		2.3	%	$	10,016		4.1	%

MDS

The following table presents selected condensed consolidated statement of income data for the nine months ended March 31, 2015 and 2014 (dollars in thousands):

	For the Nine Months Ended March 31,
	2015		% of Sales		2014		% of Sales		$ Chg			% Chg
Sales
Base business	$	132,275	73.8	%	$	164,797	90.7	%	$	(32,522	)	(19.7	)%
Acquisitions	35,752		20.0		5,431		3.0		30,321			nmf
Intercompany	11,164		6.2		11,532		6.3		(368		)	(3.2	)
Total Sales	179,191		100.0		181,760		100.0		(2,569		)	(1.4	)
Gross Profit	23,367		13.0		25,744		14.2		(2,377		)	(9.2	)
Selling and administrative expenses	12,485		7.0		10,190		5.6		2,295			22.5
Amortization of intangible assets	4,010		2.2		2,134		1.2		1,876			87.9
Restructuring charges	—		—		188		0.1		(188		)	nmf
Operating income	$	6,872	3.8	%	$	13,232	7.3	%	$	(6,360	)	(48.1	)%

MDS base business sales reflect sales from MDS facilities that were owned for the entire nine months ended March 31, 2015 and 2014. MDS acquisition sales relate to the acquisitions of Beckwood and Aubrey in fiscal 2014 and the acquisitions of eMT and RTEmd in fiscal 2015. The comparative decrease in base business sales reflects the previously disclosed loss of certain Fenwal program engagements with the Company that began in the Company's fiscal 2014 third quarter. Fenwal contributed 11% and 17% of consolidated company net sales during the nine months ended March 31, 2015 and 2014, respectively. The lost Fenwal programs negatively affected comparative sales $18.1 million in the first nine months of fiscal 2015. The remaining decrease reflects fluctuations in customer demand due to program cancellations, governmental funding and customer design related delays.

The decrease in gross margin percentage on MDS sales primarily reflects the effect of fixed overhead costs on lower base business sales. The selling and administrative expense increase is primarily comprised of incremental direct and allocated expenses related to the RTEmd, eMT, Aubrey and Beckwood operations. The increase in amortization of intangible assets

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relates to the amortization of customer relationships, non-compete agreements and tradenames acquired as part of the fiscal 2015 eMT transaction and the customer relationships and non-compete agreements acquired as part of the fiscal 2014 Aubrey and Beckwood transactions.

ECP

The following table presents selected condensed consolidated statement of income data for the nine months ended March 31, 2015 and 2014 (dollars in thousands): 

	For the Nine Months Ended March 31,
	2015		% of Sales		2014		% of Sales		$ Chg			% Chg
Sales
Base business	$	73,153	83.2	%	$	63,517	87.2	%	$	9,636		15.2	%
Acquisitions	14,552		16.5		9,256		12.7		5,296			57.2
Intercompany	305		0.3		51		0.1		254			nmf
Total Sales	88,010		100.0		72,824		100.0		15,186			20.9
Gross Profit	23,249		26.4		18,163		24.9		5,086			28.0
Selling and administrative expenses	7,588		8.6		5,984		8.2		1,604			26.8
Amortization of intangible assets	199		0.2		189		0.2		10			5.3
Internal research and development expenses	715		0.8		1,004		1.4		(289		)	(28.8	)
Operating income	$	14,747	16.8	%	$	10,986	15.1	%	$	3,761		34.2	%

ECP base business sales reflect sales from ECP facilities that were owned for the entire nine months ended March 31, 2015 and 2014 as well as sales in fiscal 2015 relating to IED, Argotec and KEP, as sales relating to these tuck-in acquisitions were not considered material for separate presentation. ECP acquisition sales relate to the acquisition of Stealth in fiscal 2015 and Aydin during the first quarter of fiscal 2014. The increase in ECP base business sales reflects increased sonobuoy sales to the U.S. Navy and U.S. Navy engineering sales, partially offset by decreased sonobuoy sales to foreign governments. Total sales to the U.S. Navy in the nine months ended March 31, 2015 and 2014 was approximately $67.0 million and $44.9 million, or 26% and 19%, respectively, of consolidated Company net sales for those periods. Sonobuoy sales to foreign governments were $5.3 million and $17.4 million in the nine months ended March 31, 2015 and 2014, respectively.

Gross profit percentage was positively affected in the current year quarter by increased volume as compared to the prior year quarter. The selling and administrative expense increase primarily reflect incremental direct and allocated expenses related to the acquisitions of IED, KEP and Stealth in fiscal 2015 and Aydin during the first quarter of fiscal 2014 and certain increased costs in anticipation of future growth.

Internal research and development expenses reflect costs incurred for the internal development of technologies for use in navigation, oil and gas exploration and flat panel display technology. These costs include salaries and related expenses, contract labor and consulting costs, materials and the cost of certain research and development specific equipment.

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Eliminations, Corporate Unallocated and Other

The following table presents selected condensed consolidated statement of income data for the nine months ended March 31, 2015 and 2014 (dollars in thousands):

	For the Nine Months Ended March 31,
	2015			2014			$ Chg			% Chg
Sales
Intercompany	$	(11,469	)	$	(11,583	)	$	114		1.0	%
Total Sales	(11,469		)	(11,583		)	114			1.0
Gross Profit	—			—			—
Selling and administrative expenses	13,215			8,965			4,250			47.4
Other operating expenses	(39		)	(14		)	(25		)	(178.6	)
Operating loss	$	(13,176	)	$	(8,951	)	$	(4,225	)	(47.2	)%

Total corporate selling and administrative expenses before allocation to operating segments were $20.0 million and $15.3 million for the nine months ended March 31, 2015 and 2014, respectively, or 7.8% and 6.3% of consolidated sales, respectively, reflecting certain increased costs in relation to consummated acquisitions and acquisition targets the Company eventually declined to proceed with, including fiscal 2015 success-based finders fees in relation to the eMT and IED acquisitions. The period over period comparative additionally reflected certain increased costs in the fiscal 2015 period in anticipation of future growth, including costs in relation to a reorganization of the Company's finance organization. Of these costs, $6.7 million and $6.3 million, respectively, were allocated to segment operations in each of these periods. Allocations of corporate selling and administrative expenses are based on the nature of the service provided and can fluctuate from period to period.

Interest expense consists of interest and fees on the Company's outstanding debt and revolving credit facility, including amortization of financing costs. Interest expense was $1.6 million and $0.5 million for the nine months ended March 31, 2015 and 2014, respectively. The comparative interest expense reflects accelerated amortization of loan financing fees in relation to the Company's old facility replaced during the first quarter of fiscal 2015 and comparative borrowings under the Company’s credit facility between the two periods. See Note 6, Debt, of the “Notes to Unaudited Condensed Consolidated Financial Statements” in this Quarterly Report on Form 10-Q for a further discussion of debt.

The Company recognized a number of discrete income tax items during the nine months ended March 31, 2015. In relation to its acquisition of Stealth.com in its fiscal 2015 third quarter, the Company recognized a discrete income tax benefit of approximately $1.0 million for the nine months ended March 31, 2015 in relation to the substantial reversal of a valuation allowance previously established against its Canadian net operating loss carryforwards. The remaining valuation allowance of approximately $0.1 million recorded against this approximate $1.1 million deferred tax asset is expected to be reversed and recognized as a reduction of the Company's effective tax rate during its fiscal 2015 fourth quarter. Additional discrete items include return to provision adjustments, certain jurisdictional audit adjustments and changes in state apportionment factors in relation to the Company's acquisitions during the current fiscal year. Excluding all discrete items, the Company's effective rate 34.0% for the nine months ended March 31, 2015, compared to 32.7% for the nine months ended March 31, 2014. See Note 8, Income Taxes, of the “Notes to Unaudited Condensed Consolidated Financial Statements” in this Quarterly Report on Form 10-Q for a further discussion of income taxes.

Due to the factors described above, the Company reported net income of $5.9 million ($0.59 per share, basic and diluted) for the nine months ended March 31, 2015, compared to net income of $10.0 million ($0.99 per share, basic and diluted) for the corresponding period last year.

33

Liquidity and Capital Resources

On September 11, 2014, the Company replaced its previous credit facility with a new $200.0 million revolving line-of-credit facility with a group of banks (the “Credit Facility”) to fund future acquisitions and to support the Company’s working capital needs and other general corporate purposes. The Credit Facility expires on September 8, 2019, is secured by substantially all assets of the Company and provides for up to an additional $100.0 million in uncommitted loans. On April 13, 2015, the Company amended its Credit Facility to increase the size of the revolving line-of-credit facility by $75 million to $275 million, reload the uncommitted loans under the agreement to $100.0 million and to make other sublimit and definitional changes.

Outstanding borrowings under the Credit Facility will bear interest, at the Company’s option, at either LIBOR, fixed for interest periods of one, two, three or six month periods, plus 1.00% to 1.75%, or at the bank’s base rate, as defined, plus 0.00% to 0.75%, based upon the Company’s Total Funded Debt/EBITDA Ratio, as defined. The Company is also required to pay commitment fees on unused portions of the Credit Facility ranging from 0.20% to 0.35%, based on the Company’s Total Funded Debt/EBITDA Ratio, as defined. The Credit Facility includes representations, covenants and events of default that are customary for financing transactions of this nature.

As a condition of the Credit Facility, the Company is subject to certain customary covenants, which it was in compliance with at March 31, 2015. The Company had $80.0 million of borrowings drawn against the Credit Facility at March 31, 2015 and additionally had certain letters of credit outstanding totaling $0.9 million. See Note 6, Debt, of the “Notes to Unaudited Condensed Consolidated Financial Statements” in this Quarterly Report on Form 10-Q for a further discussion of the Company’s debt.

Certain of the Company’s ECP contracts allow for billings to occur when certain milestones under the applicable program are reached, independent of the amount shipped by Sparton as of such date. These performance based billings reduce the amount of cash that would otherwise be required during the performance of these contracts. As of March 31, 2015 and June 30, 2014, $1.2 million and $3.2 million, respectively, of proceeds from billings in excess of costs were received.

The Company currently expects to meet its liquidity needs through a combination of sources including, but not limited to, operations, existing cash balances, its revolving line-of-credit and anticipated continuation of performance based billings on certain ECP contracts. With the above sources providing the expected cash flows, the Company currently believes that it will have sufficient liquidity for its anticipated needs over the next 12 months, but no assurances regarding liquidity can be made.

	For the Nine Months Ended March 31,
CASH FLOWS	2015			2014
Cash flows from operating activities, excluding changes in working capital	$	13,952		$	17,584
Working capital related cash flows	(1,495		)	(2,373		)
Cash flows from operating activities	12,457			15,211
Cash flows used in investing activities	(47,178		)	(37,744		)
Cash flows from financing activities	32,274			23,950

Cash flows from operating activities, excluding changes in working capital, in the first nine months of fiscal 2015 and 2014 reflect the Company’s relative operating performance during those periods. Working capital related cash flows in the first nine months of fiscal 2015 primarily reflect increased inventories, prepayment of income taxes as well as the funding of production related to U.S. Navy contracts during the year in excess of performance based payments received, partially offset by collections of accounts receivable. Working capital related cash flows in the first nine months of fiscal 2014 primarily reflect the funding of production related to U.S. Navy contracts during the year in excess of performance based payments received, partially offset by decreased receivables and inventory and increased accounts payable and accrued expenses.

Cash flows used in investing activities in the nine months ended March 31, 2015 reflects a $42.3 million use of cash for the acquisitions of eMT, Argotec, IED, KEP Marine, RTEmd and Stealth, net of acquired cash and net of a working capital adjustment receipt relating to the fiscal 2014 acquisition of Aubrey. The nine months ended March 31, 2015 also reflects a $1.0 million purchase of marketable equity securities.The nine months ended March 31, 2014 reflects a $35.6 million use of cash for the acquisitions of Aydin, Beckwood and Aubrey, net of acquired cash and net of an inventory adjustment to the fiscal 2013 acquisition of Creonix. Net capital expenditures for the nine months ended March 31, 2015 and 2014 were approximately $3.9 million and $2.3 million, respectively.

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Cash flows from financing activities in the nine months ended March 31, 2015 reflects $39.0 million of net borrowing under the Company's Credit Facility, the repurchase of $5.0 million of the Company's common stock under the Company's stock repurchase plan (see below for a discussion of the Company's recently authorized stock repurchase program), the payment of $1.1 million of debt financing costs and $1.0 million of tax benefits in excess of recorded stock based compensation. The nine months ended March 31, 2014 reflects $25.0 million of net borrowing under the Company's Credit Facility, $0.5 million of tax benefits in excess of recorded stock-based compensation and the repurchase of $0.9 million of the Company's common stock under the Company's stock repurchase plan in place at that time. The nine months ended March 31, 2015 and 2014 additionally reflect the use of cash of $1.8 million and $0.7 million, respectively, to satisfy income tax withholding requirements in relation to the vesting of executives’ restricted stock in exchange for the surrender of a portion of the vesting shares.

On October 22, 2014, the Company’s Board of Directors approved a repurchase by the Company of up to $5.0 million of shares of its common stock. The Company was authorized to purchase shares from time to time in open market, block transactions and privately negotiated transactions. The stock repurchase program did not require the Company to repurchase any specific number of shares. Pursuant to this stock repurchase program, during the nine months ended March 31, 2015, the Company purchased 181,278 shares of its common stock at an average price of $27.55 per share for approximately $5.0 million. Shares purchased under the plan were canceled upon repurchase. As of March 31, 2015, all authorized funds under the stock repurchase program were expended.

Commitments and Contingencies

See Note 10, Commitments and Contingencies, of the “Notes to Unaudited Condensed Consolidated Financial Statements” in this Quarterly Report on Form 10-Q for a discussion of the Company's commitments and contingencies.

Contractual Obligations

Information regarding the Company’s long-term debt obligations, environmental liability payments, operating lease payments and other commitments is provided in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” of the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2014. As of June 30, 2014, there were $49.9 million of non-cancelable purchase orders outstanding, $41.0 million of debt, $4.3 million of operating lease payments and a liability related to performance based billings on customer contracts of $3.2 million. As of March 31, 2015, the non-cancelable purchase orders outstanding has increased to $53.9 million, debt increased to $80.0 million, operating lease payments has increased to $7.8 million and the liability related to performance based billings has decreased to $1.2 million. Other than as noted above, there have been no material changes in the nature or amount of the Company’s contractual obligations since June 30, 2014.

Off-Balance Sheet Arrangements

The Company has standby letters of credit outstanding of approximately $0.9 million at March 31, 2015, principally to support an operating lease agreement. Other than these standby letters of credit and the operating lease commitments referenced above, we have no off-balance sheet arrangements that would have a current or future material effect on our financial condition, changes in financial condition, revenue, expense, results of operations, liquidity, capital expenditures or capital resources.

Critical Accounting Policies

Our financial statements are prepared in conformity with GAAP and require us to select appropriate accounting policies. The assumptions and judgments we use in applying our accounting policies have a significant impact on our reported amounts of assets, liabilities, revenue and expenses. While we believe that the assumptions and judgments used in our estimates are reasonable, actual results may differ from these estimates under different assumptions or conditions.

We have identified the most critical accounting policies upon which our financial status depends. The critical policies were determined by considering accounting policies that involve the most complex or subjective decisions or assessments. We also have other policies considered key accounting policies; however, these policies do not meet the definition of critical accounting policies because they do not generally require us to make estimates or judgments that are complex or subjective. Our critical accounting policies include the following:

35

• Business combinations

• Goodwill and intangible assets

• Percentage-of-completion accounting

• Environmental contingencies

• Income taxes

• Commercial inventory valuation

• Allowance for probable losses on receivables

• Valuation of property, plant and equipment

• Stock-based compensation

• Pension obligations

There have been no significant changes to our critical accounting policies that are described in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section of our Annual Report on Form 10-K for the year ended June 30, 2014.

New Accounting Pronouncements

See Note 15, New Accounting Standards, of the “Notes to Unaudited Condensed Consolidated Financial Statements” in this Quarterly Report on Form 10-Q for a discussion of new accounting pronouncements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

The Company manufactures its products in the United States, Canada and Vietnam. Sales of the Company’s products are in the U.S. and foreign markets. The Company is subject to foreign currency exchange rate risk relating to intercompany activity and balances and to receipts from customers and payments to suppliers in foreign currencies. Adjustments related to the remeasurement of the Company's Canadian and Vietnamese financial statements into U.S. dollars are included in current earnings. As a result, the Company's financial results could be affected by factors such as changes in foreign currency exchange rates or economic conditions in the domestic and foreign markets in which the Company operates. However, minimal third party receivables and payables are denominated in foreign currencies and the related market risk exposure is considered to be immaterial.

The Company’s revolving credit line, when drawn upon, is subject to future interest rate fluctuations which could potentially have a negative impact on cash flows of the Company. The Company had $80.0 million outstanding under its Credit Facility at March 31, 2015. A prospective increase of 100 basis points in the interest rate applicable to the Company’s outstanding borrowings under its Credit Facility would result in an increase of approximately $0.8 million in our annual interest expense. The Company is not party to any currency exchange or interest rate protection agreements as of March 31, 2015.

Item 4. Controls and Procedures.

Each of our Chief Executive Officer and Chief Financial Officer has evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities and Exchange Act of 1934) as of the end of the period covered by this quarterly report. Based on such evaluation, such officers have concluded that, as of the end of the period covered by this quarterly report, our disclosure controls and procedures are effective.

There have been no changes in our internal controls over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended March 31, 2015 that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

36

PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

See Note 10, Commitments and Contingencies, of the “Notes to Unaudited Condensed Consolidated Financial Statements” in this Quarterly Report on Form 10-Q for a discussion of legal proceedings and other commitments and contingencies.

Item 1A. Risk Factors.

You should carefully consider the risks and uncertainties described in Part I, Item 1A., "Risk Factors," in our Annual Report on Form 10-K for the year ended June 30, 2014 and the other information in our subsequent filings with the SEC, including this Quarterly Report on Form 10-Q. Our business, financial condition, results of operations and stock price could be materially adversely affected by any of these risks. The risks described in our Annual Report on Form 10-K are not the only ones we face. Additional risks and uncertainties that are currently unknown to us or that we currently consider to be immaterial may also impair our business or adversely affect our financial condition, results of operations and stock price.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

The following table provides information about shares of common stock the Company acquired during the three months ended March 31, 2015:

Issuer Purchases of Equity Securities
	Total Number of Shares Purchased	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number (or Approximate Dollar Value) of Shares That May Yet Be Purchased Under the Plans or Programs (a)
January 1, 2015 to January 31, 2015 (a)	13,712	$	27.60	13,712	$	—
February 1, 2015 to February 28, 2015	—	—		—	—
March 1, 2015 to March 31, 2015	—	—		—	—
Total	13,712	27.60		13,712	—

(a) On October 22, 2014, the Company’s Board of Directors approved a repurchase by the Company of up to $5.0 million of shares of its common stock. The Company was authorized to purchase shares from time to time in open market, block transactions and privately negotiated transactions. The stock repurchase program did not require the Company to repurchase any specific number of shares.

37

Item 6. Exhibits.

Exhibit Number	Description
3.1	Second Amended Articles of Incorporation of the Registrant, incorporated herein by reference from the Registrant’s Proxy Statement on Form DEF 14A filed with the SEC on September 21, 2010.
3.2	Amended and Restated Code of Regulations of the Registrant, incorporated herein by reference from Exhibit 3.2 to the Registrant’s Current Report on Form 8-K filed with the SEC on May 5, 2015.
10.1*	Amendment No. 1 dated March 16, 2015 to the Amended and Restated Credit and Guaranty Agreement dated September 11, 2014, entered into between B.M.O. Harris Bank, N.A., and the Borrowers.
10.2	Amendment No. 2 dated April 13, 2015 to the Amended and Restated Credit and Guaranty Agreement dated September 11, 2014, entered into between B.M.O. Harris Bank, N.A., and the Borrowers, incorporated by reference from Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on April 17, 2015.
10.3	Agreement and Plan of Merger dated as of April 14, 2015 by and among Hunter Technology Corporation, Sparton Corporation, Sparton Hunter Corporation, and Joseph F. O’Neil, incorporated by reference from Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on April 20, 2015.
10.4†*	First Amendment to the Sparton Deferred Compensation Plan dated as of July 1, 2014.
10.5†*	Second Amendment to the Sparton Deferred Compensation Plan dated as of July 1, 2014.
18.1	Preferability Letter from Independent Registered Public Accounting Firm Regarding Change in Accounting Principle, incorporated herein by reference from the Registrant's Quarterly Report on Form 10-Q filed with the SEC on November 5, 2013.
31.1*	Chief Executive Officer certification under Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Chief Financial Officer certification under Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Chief Executive Officer and Chief Financial Officer certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy 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

†	Indicates management contract or compensatory arrangement.
*	Filed herewith.

38

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Sparton Corporation
Date: May 5, 2015	By:	/s/ CARY B. WOOD
		Cary B. Wood
		President and Chief Executive Officer
		(Principal Executive Officer)
Date: May 5, 2015	By:	/s/ DONALD W. PEARSON
		Donald W. Pearson
		Senior Vice President and Chief Financial Officer
		(Principal Financial Officer)

39

EX-10.1

Exhibit 10.1

AMENDMENT NO. 1 TO AMENDED AND RESTATEDCREDIT AND GUARANTY AGREEMENT

This AMENDMENT NO. 1 TO AMENDED AND RESTATED CREDIT AND GUARANTY AGREEMENT (this “Amendment No. 1”) dated as of March 16, 2015, is by and among SPARTON CORPORATION, an Ohio corporation (“Borrower”), the other Loan Parties, the Lenders from time to time a party to the Credit Agreement referred to below, and BMO HARRIS BANK, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”).

WITNESSETH:

WHEREAS, the Administrative Agent, the Lenders, the Borrower and the other Loan Parties are parties to that certain Amended and Restated Credit and Guaranty Agreement, dated as of September 11, 2014 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”);

WHEREAS, the Loan Parties have requested that the Administrative Agent and the Lenders amend the definition of “Dormant Subsidiary” and certain other provisions of the Credit Agreement as set forth herein, and the Administrative Agent and the Lenders have agreed to the requests on the terms and subject to satisfaction of the conditions contained herein; and

WHEREAS, this Amendment No. 1 shall constitute a Loan Document, these Recitals shall be construed as part of this Amendment No. 1 and capitalized terms used but not otherwise defined in this Amendment No. 1 shall have the meanings ascribed to them in the Credit Agreement.

NOW, THEREFORE, for and in consideration of the premises and mutual agreements herein contained and for the purposes of setting forth the terms and conditions of this Amendment No. 1, the parties, intending to be bound, hereby agree as follows:

Section 1.Amendments to the Credit Agreement. Subject to the satisfaction of the conditions set forth in Section 2 below, and in reliance on the representations and warranties set forth in Section 3 below, the Credit Agreement is hereby amended as follows:

(a)Section 4.4 (Further Assurances). Section 4.4 of the Credit Agreement is hereby amended by adding the following as the last sentence of such Section:

“Notwithstanding anything to the contrary set forth herein, the Loan Parties shall not be required to comply with the provisions of this Section 4 with respect to a Subsidiary formed by the Loan Parties for so long as such Subsidiary does not have any operations, assets or liabilities (other than liabilities necessary to maintain its organizational existence and, if the Subsidiary was formed for the purpose of consummating an Acquisition, its rights and obligations under the purchase

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agreement and ancillary documents entered into for the purpose of, but prior to consummating, the Acquisition).”

(b)Section 5 (Definitions; Interpretation). Section 5 of the Credit Agreement is hereby amended by amending and restating the definition of “Dormant Subsidiary” as follows:

“Dormant Subsidiary” means Sparton Engineered Products, Inc. - Flora Group, an Illinois corporation.

(c)Schedules. The Schedule 8.26 to the Credit Agreement is hereby amended by deleting all disclosures therein related to Sparton of Canada Ltd.

SECTION 2.Conditions of Effectiveness. This Amendment No. 1 shall become effective as of the date hereof, but only upon receipt by the Administrative Agent of one or more counterparts of this Amendment No. 1 executed by the Loan Parties, the Administrative Agent and the Required Lenders.

SECTION 3.Representations and Warranties. Each Loan Party represents and warrants to the Administrative Agent and the Lenders that:

(a)(i) such Loan Party has all necessary power and authority to execute and deliver this Amendment No. 1 and to perform its obligations hereunder, (ii) this Amendment No. 1 has been duly authorized by all requisite corporate or limited liability company action, as applicable, and constitutes the legal, valid and binding obligations of such Loan Party and is enforceable against such Loan Party in accordance with its terms, except as such enforceability may be limited by applicable solvency, bankruptcy, reorganization, moratorium or other similar laws affecting creditors’ rights generally and applicable equitable principles (whether considered in a proceeding at law or in equity), and (iii) neither the execution, delivery or performance by such Loan Party of this Amendment No. 1 (A) violates any material provision of any law or regulation applicable to such Loan Party, or any other decree of any governmental body, (B) conflicts with or results in the breach or termination of, constitutes a default under or accelerates any performance required by, any indenture, mortgage, deed of trust, lease, agreement or other instrument to which any Loan Party or Subsidiary is a party or by which such Person or any of its property is bound, (C) results in the creation or imposition of any Lien (other than Liens permitted pursuant to Section 8.8 of the Credit Agreement) upon any Property of such Loan Party, (D) violates or conflicts with the articles of incorporation (or articles of formation), bylaws (or operating agreement), or other organizational documents, as applicable, of such Loan Party, or (E) requires the consent, approval or authorization of, or declaration or filing with, any other Person, except for those already duly obtained;

(b)No Default or Event of Default shall have occurred or be continuing as of the date hereof; and

(c)As of the date hereof, and after giving effect to this Amendment No. 1 and the transactions contemplated hereby, the representations and warranties of the Loan Parties contained in the Credit Agreement and other Loan Documents are true and correct on and as of the

2

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date hereof to the same extent as though made on and as of such date except to the extent such representations and warranties specifically relate to an earlier date, in which case each such representation or warranty shall have been true and correct on and as of such earlier date.

SECTION 4.Reference to, and Effect on, Loan Documents.

(a)Fees and Expenses. The Borrower agrees to pay, on demand, in accordance with Section 13.15 of the Credit Agreement, all costs and expenses of, or incurred by, the Administrative Agent, including but not limited to reasonable attorneys’ fees and costs in connection with the preparation, execution and delivery of this Amendment No. 1.

(b)Ratification of Loan Documents. Except as specifically amended above, the Credit Agreement and the other Loan Documents shall remain in full force and effect. Notwithstanding anything contained herein, the terms of this Amendment No. 1 are not intended to and do not effect a novation of the Credit Agreement or any other Loan Document. Each of the Loan Parties hereby ratifies and reaffirms each of the terms and conditions of the Loan Documents to which it is a party and all of its obligations thereunder.

(c)No Waiver. The execution, delivery and effectiveness of this Amendment No. 1 shall not operate as a waiver of any Default or Event of Default whether now existing or hereafter arising or of any right, power or remedy of the Administrative Agent or the Lenders under the Credit Agreement, under any of the other Loan Documents or under applicable law.

(d)References. Upon the effectiveness of this Amendment No. 1, each reference in (i) the Credit Agreement to “this Agreement,” “this Credit Agreement,” “hereunder,” “hereof” or words of similar import and (ii) any other Loan Document to “the Credit Agreement” or words of similar import shall, in each case and except as otherwise specifically stated therein, mean and be a reference to the Credit Agreement as amended hereby. Upon the effectiveness of this Amendment No. 1, each reference to the Loan Documents in the Credit Agreement shall include this Amendment No. 1.

SECTION 5.Miscellaneous.

(a)Successors and Assigns. This Amendment No. 1 shall be binding on the Loan Parties and shall inure to the benefit of the Administrative Agent and the Lenders and their respective successors and assigns.

(b)Entire Agreement. This Amendment No. 1 constitutes the entire agreement of the parties hereto with respect to the subject matter hereof and supersedes all other understandings, oral or written, with respect to the subject matter hereof.

(c)Headings. Section headings in this Amendment No. 1 are included herein for convenience of reference only and shall not constitute a part of this Amendment No. 1 for any other purpose.

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(d)Severability. Wherever possible, each provision of this Amendment No. 1 shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Amendment No. 1 shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Amendment No. 1.

(e)Counterparts. This Amendment No. 1 may be executed in any number of separate original counterparts and by the different parties on separate counterparts, each of which shall be deemed to be an original, but all of such counterparts shall together constitute one agreement. Delivery of an executed counterpart of a signature page to this Amendment No. 1 by facsimile, “pdf” or other form of electronic delivery shall be effective as delivery of a manually executed counterpart of this Amendment No. 1.

(Signature Pages Follow)

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(Signature Page to Amendment No. 1)

IN WITNESS WHEREOF, intending to be legally bound, the parties hereto have duly executed this Amendment No. 1 to Amended and Restated Credit and Guaranty Agreement as of the date first above written.

BORROWER: SPARTON CORPORATION, an Ohio corporation By: _/s/ Michael Osborne   Michael Osborne   Senior Vice President

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(Signature Page to Amendment No. 1)

GUARANTORS:	SPARTRONICS, INC., a Michigan corporation By: /s/ Steve Korwin   Steve Korwin   Vice President
	SPARTON TECHNOLOGY, INC., a New Mexico corporation By: /s/ Steve Korwin   Steve Korwin   Vice President
	SPARTON DELEON SPRINGS, LLC, a Florida limited liability company By: /s/ Steve Korwin   Steve Korwin   Vice President
	SPARTON MEDICAL SYSTEMS, INC., a Michigan corporation By: _/s/ Steve Korwin   Steve Korwin   Vice President
GUARANTORS:	SPARTON MEDICAL SYSTEMS COLORADO, LLC, a Colorado limited liability company By: _/s/ Steve Korwin   Steve Korwin   Vice President
	SPARTON BP MEDICAL DENVER, LLC, a Delaware limited liability company By: _/s/ Steve Korwin   Steve Korwin   Vice President

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(Signature Page to Amendment No. 1)

	SPARTON ONYX HOLDINGS, LLC, a Delaware limited liability company By: _/s/ Steve Korwin   Steve Korwin   Vice President
	SPARTON ONYX, LLC, a South Dakota limited liability company By:_/s/ Steve Korwin   Steve Korwin   Vice President
	RESONANT POWER TECHNOLOGY, INC., a Wisconsin corporation By: _/s/ Steve Korwin   Steve Korwin   Vice President
GUARANTORS:	SPARTON AUBREY GROUP, INC., a California corporationBy:_/s/ Steve Korwin   Steve Korwin   Vice President
	SPARTON BROOKSVILLE, LLC, a Delaware limited liability companyBy:_/s/ Steve Korwin   Steve Korwin   Vice President
	SPARTON AYDIN, LLC, a Delaware limited liability company   By:_/s/ Steve Korwin   Steve Korwin   Vice President

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(Signature Page to Amendment No. 1)

	SPARTON BECKWOOD, LLC, a Delaware limited liability company By:_/s/ Steve Korwin   Steve Korwin   Vice President
	BECKWOOD SERVICES, INC., a New Hampshire corporation By:_/s/ Steve Korwin   Steve Korwin   Vice President
GUARANTORS:	SPARTON eMT, LLC, a Delaware limited liability companyBy:_/s/ Steve Korwin   Steve Korwin   Vice President
	SPARTON IRVINE, LLC, a California limited liability companyBy:_/s/ Steve Korwin   Steve Korwin   Vice President
	SPARTON IED, LLC, a Delaware limited liability company  By:_/s/ Michael Osborne   Michael Osborne   President
	SPARTON DESIGN SERVICES, LLC, a Delaware limited liability company   By:_/s/ Michael Osborne   Michael Osborne   President

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(Signature Page to Amendment No. 1)

REAL TIME ENTERPRISES, INC., a New York corporation

By:_/s/ Michael Osborne

    Michael Osborne

   Vice President

ADMINISTRATIVE AGENT: BMO HARRIS BANK N.A., as Administrative AgentBy:_/s/ John Raske   John Raske   Managing Director

LENDER:	BMO HARRIS BANK N.A.By:_/s/ John Raske   John Raske   Managing Director
LENDER:	U.S. BANK NATIONAL ASSOCIATIONBy:_/s/ Adam Gelfeld   Adam Gelfeld   Senior Vice President

LENDER: BANK OF AMERICA, N.A. 
By:_/s/ Brian Haldane   Brian Haldane   Vice President

LENDER: SUNTRUST BANK 
By:_/s/ Lisa Garling   Lisa Garling   Director

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(Signature Page to Amendment No. 1)

LENDER: FIFTH THIRD BANK 
By:_/s/ Jeffrey N. Bobis   Jeffrey N. Bobis   Vice President

LENDER: ASSOCIATED BANK, N.A. 
By:_/s/ Eric Bergren   J. Eric Bergren   Senior Vice President

LENDER: KEYBANK NATIONAL ASSOCIATION 
By:_/s/ Brian P. Fox   Brian P. Fox   Vice President

LENDER: WINTRUST BANKBy:_/s/ Bailey Moore   Bailey Moore   Assistant Vice President

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EX-10.4

Exhibit 10.4

FIRST AMENDMENT TO THE SPARTON CORPORATION DEFERRED COMPENSATION PLAN

WHEREAS, Sparton Corporation (the “Company”) adopted the Sparton Corporation Deferred Compensation Plan (the “Plan”) effective as of January 1, 2014; and

WHEREAS, pursuant to Section 11.10 of the Plan the Company has the authority to amend the plan to the extent permitted by Internal Revenue Code Section 409A; and

WHEREAS, the Company does hereby desire to amend the Plan to permit the discretionary right by the Company to enter into an endorsement split dollar agreement with certain designated Plan participants; and

WHEREAS, in order to effect a timely establishment and enrollment of these split dollar agreements for eligible participants along with appropriate communications the Company does hereby wish to delegate its responsibilities relating to said tasks.

NOW, THEREFORE, the Plan is hereby amended by adoption of the following Resolutions:

RESOLVED, that the Plan is hereby amended by incorporation of the following Section 6.12:

6.12 ENDORSEMENT SPLIT DOLLAR. To the extent deemed appropriate, the Company may or may not enter into an Endorsement Split Dollar Agreement (the “Agreement”) providing for additional benefits to the Beneficiary(ies) in the event of the Participant’s death. Said additional amounts shall not be limited by Section 6.11 hereto. The Company shall retain full discretion to determine the amount of benefit offered in the Agreement and payable in the event of the Participant’s death. Furthermore the Company reserves the right to amend or terminate the Agreement at anytime and for any reason without consent of the Participant. All benefits and rights under this Section 6.12 shall terminate, if not cancelled previously, as of the Participant’s separation from service as defined under Section 409A.

FURTHER RESOLVED, that the Vice President of Human Resource shall be delegated with the responsibility to carry out such actions necessary to effect the eligibility, enrollment and communication of the split dollar agreements for those Participants designated on Exhibit A; and

FURTHER RESOLVED, that this shall become effective as of July 1, 2014.

Signed: __/s/_Steve Korwin_________

Name: __Steve Korwin____________

Title: _SVP Quality & Engineering____

Date: ___7/1/2014________________

EX-10.5

Exhibit 10.5

SECOND AMENDMENT TO THE SPARTON CORPORATION DEFERRED COMPENSATION PLAN

WHEREAS, Sparton Corporation (the “Company”) adopted the Sparton Corporation Deferred Compensation Plan (the “Plan”) effective as of January 1, 2014; and

WHEREAS, Sparton Corporation has adopted and shareholders have approved the Sparton Corporation 2010 Long-Term Stock Option Incentive Plan

WHEREAS, pursuant to Section 11.10 of the Plan the Company has the authority to amend the plan to the extent permitted by Internal Revenue Code Section 409A; and

WHEREAS, the Company does hereby desire to amend the Plan to permit the participation of their Board of Directors (the “Directors”);

WEHREAS, the plan needs to be amended to include such eligible forms of director compensation;

WHEREAS, the company desires to expand the eligible forms of compensation for non-directors, the plan will be amended to include Restricted Stock Units;

NOW, THEREFORE, the Plan is hereby amended by adoption of the following Resolutions:

RESOLVED, the plan hereby amends Article 1 Section 1.1 as follows:

By deleting the definition of “Eligible Employee” and replace it as follows:

“Eligible Employee” means any employee of the Company or an Affiliate and any member of the Board of Directors who is selected to participate herein in accordance with the provisions of Article 2 hereof, and is one of a select group of management or highly compensated employees.

By adding the following definition for “Board of Directors”

“Board of Directors” means any properly elected member of the Company’s or an Affiliate’s Board of Directors and any independent contractor who is a member of a committee, if such committee is established by and its members appointed by the Board of Directors.

By adding the following definition for “Restricted Stock Units”

“Restricted Stock Units” is defined under section 2 of the Sparton Corporation 2010 Long-Term Stock Option Incentive Plan.

By adding the following at the end of the definition of “Pay Type”

Detroit_3741174_1

For purposes of clarification, as of July 1, 2014, the following chart reflects the types of compensation included as “Pay Types” and the associated maximum deferral percentage for each.

Eligible Pay Type	Maximum Deferral Percentage
Base Salary	80%
Annual Bonus	80%
Annual Commissions	80%
Director Fees	100%
401k Refund	100%
Restricted Stock Units	100%

FURTHER RESOLVED, Restricted Stock Units shall be added to the list of Pay Types in Section I of the Adoption Agreement.

FURTHER RESOLVED, that the Vice President of Human Resources shall be delegated with the responsibility to carry out such actions necessary to effect the eligibility, enrollment and communication of the Plan to the Eligible Employees; and

FURTHER RESOLVED, that this shall become effective as of July 1, 2014.

Signed:     __/s/_Steve Korwin__________

Name:    __Steve Korwin_____________

Title:    _SVP Quality & Engineering___

Date:    __7/1/2014________________

Detroit_3741174_1

EX-31.1

Exhibit 31.1

CERTIFICATION UNDER SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Cary B. Wood, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Sparton 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 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 officer 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 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 the 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 officer 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 the registrant’s board of directors (or persons performing 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.

Date: May 5, 2015

/s/ CARY B. WOOD

Cary B. Wood, President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION UNDER SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Donald W. Pearson, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Sparton 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 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 officer 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 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 the 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 officer 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 the registrant’s board of directors (or persons performing 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.

Date: May 5, 2015

/s/ DONALD W. PEARSON

Donald W. Pearson, Senior Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Sparton Corporation (the “Company”) on Form 10-Q for the period ended March 31, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “Periodic Report”), we, Cary B. Wood, President and Chief Executive Officer of the Company, and Donald W. Pearson, Senior Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

1 The Periodic Report 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 Periodic Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 5, 2015	/s/ CARY B. WOOD
	Cary B. Wood, President and Chief Executive Officer
Date: May 5, 2015	/s/ DONALD W. PEARSON
	Donald W. Pearson, Senior Vice President and Chief Financial Officer

XML

Property Plant and Equipment, Net (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Jun. 30, 2014
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	$ 63,211	$ 58,581
Less accumulated depreciation	(33,434)	(30,058)
Total property, plant and equipment, net	29,777	28,523	[1]
Land and land improvements [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	1,429	1,429
Buildings and building improvements [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	26,107	25,779
Machinery and equipment [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	32,523	29,480
Construction in progress [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	3,152	1,893
Construction in Progress, Office Expansion [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	$ 900

[1] Derived from the Company’s audited financial statements as of June 30, 2014.

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Stock-Based Compensation - Assumptions (Details) (Fair value expense of stock option awards [Member], USD $)	9 Months Ended
	Mar. 31, 2015
Fair value expense of stock option awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk free interest rate	2.06%
Volatility	34.10%
Dividend yield	0.00%
Expected life in years	6 years 3 months
Fair value price (in dollars per share)	$ 9.99

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Defined Benefit Pension Plan - Additional Information (Detail) (USD $)	9 Months Ended
	Mar. 31, 2015 employee	Mar. 31, 2014
Compensation and Retirement Disclosure [Abstract]
Number of employees and retirees covered by a defined benefit pension plan	400
Employer Contribution	$ 0	$ 100,000

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Stock-Based Compensation - Summary of Options Outstanding and Exercisable (Detail) (USD $)	9 Months Ended
	Mar. 31, 2015
Number of Options
Number of Shares, Outstanding, beginning balance	38,543
Granted, Number of Shares	93,805
Exercised, Number of Shares	(19,247)
Forfeited, Number of Shares	(15,988)
Number of Shares, Outstanding And Exercisable, ending balance	97,113
Exercisable, Number of Shares	3,308
Weighted Average Exercise Price
Weighted Average Exercise Price, Outstanding , beginning balance (in dollars per share)	$ 8.57
Weighted Average Exercise Price, Granted (in dollars per share)	$ 26.74
Weighted Average Exercise Price, Exercised (in dollars per share)	$ 8.57
Weighted Average Exercise Price Forfeited (in dollars per share)	$ 8.57
Weighted Average Exercise Price, Outstanding , ending balance (in dollars per share)	$ 26.12
Weighted Average Exercise Price, Exercisable (in dollars per share)	$ 8.57

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Fair Value Measurements - Additional Information (Detail) (USD $)	Mar. 31, 2015	Jun. 30, 2014
Line of Credit Facility [Line Items]
Investment securities, noncurrent	$ 700,000	$ 0
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Borrowings under revolving credit facilities	$ 80,000,000	$ 41,000,000

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Business Segments (Tables)

9 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Operating Results and Other Financial Information by Segment

Operating results and certain other financial information about the Company’s two reportable segments for the three and nine months ended March 31, 2015 and 2014 and as of March 31, 2015 and June 30, 2014 were as follows (in thousands):

	For the Three Months Ended March 31, 2015
	Manufacturing and Design Services		Engineered Components and Products		Corporate and Other Unallocated			Eliminations			Total
Sales	$	62,150	$	36,022	$	—		$	(5,107	)	$	93,065
Gross profit	8,073		10,558		—			—			18,631
Operating income (loss)	2,093		7,208		(4,419		)	—			4,882
Selling and administrative expenses	4,623		2,831		4,429			—			11,883
Internal research and development expenses	—		418		—			—			418
Depreciation/amortization	2,051		356		224			—			2,631
Capital expenditures	201		160		1,714			—			2,075
	For the Three Months Ended March 31, 2014
	Manufacturing and Design Services		Engineered Components and Products		Corporate and Other Unallocated			Eliminations			Total
Sales	$	59,997	$	28,853	$	—		$	(4,867	)	$	83,983
Gross profit	7,872		8,606		—			—			16,478
Operating income (loss)	3,466		6,112		(3,203		)	—			6,375
Selling and administrative expenses	3,437		2,161		3,209			—			8,807
Internal research and development expenses	—		213		—			—			213
Depreciation/amortization	1,830		341		99			—			2,270
Capital expenditures	587		168		86			—			841

	For the Nine Months Ended March 31, 2015
	Manufacturing and Design Services		Engineered Components and Products		Corporate and Other Unallocated			Eliminations			Total
Sales	$	179,191	$	88,010	$	—		$	(11,469	)	$	255,732
Gross profit	23,367		23,249		—			—			46,616
Operating income (loss)	6,872		14,747		(13,176		)	—			8,443
Selling and administrative expenses	12,485		7,588		13,215			—			33,288
Internal research and development expenses	—		715		—			—			715
Depreciation/amortization	6,225		942		510			—			7,677
Capital expenditures	948		1,038		1,917			—			3,903
	For the Nine Months Ended March 31, 2014
	Manufacturing and Design Services		Engineered Components and Products		Corporate and Other Unallocated			Eliminations			Total
Sales	$	181,760	$	72,824	$	—		$	(11,583	)	$	243,001
Gross profit	25,744		18,163		—			—			43,907
Operating income (loss)	13,232		10,986		(8,951		)	—			15,267
Selling and administrative expenses	10,190		5,984		8,965			—			25,139
Internal research and development expenses	—		1,004		—			—			1,004
Restructuring Charges	188		—		—			—			188
Depreciation/amortization	4,714		905		291			—			5,910
Capital expenditures	1,073		787		393			—			2,253

	As of March 31, 2015
	Manufacturing and Design Services		Engineered Components and Products		Corporate and Other Unallocated		Eliminations		Total
Total assets	$	162,650	$	58,349	$	22,516	$	—	$	243,515
	As of June 30, 2014
	Manufacturing and Design Services		Engineered Components and Products		Corporate and Other Unallocated		Eliminations		Total
Total assets	$	144,991	$	35,033	$	18,956	$	—	$	198,980

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Stock-Based Compensation - Shares Granted Under Long-Term Incentive Plans (Detail) (USD $)	9 Months Ended
	Mar. 31, 2015
Shares
Restricted shares, beginning balance	316,997
Restricted shares, granted	97,979
Restricted shares, vested	(172,459)
Restricted shares, forfeited	(15,313)
Restricted shares, ending balance	227,204
Weighted Average Grant Date Fair Value
Restricted shares, Weighted average grant date fair value, beginning balance (in dollars per share)	$ 12.38
Restricted shares, granted, Weighted average grant date fair value (in dollars per share)	$ 23.94
Restricted shares, vested, Weighted average grant date fair value (in dollars per share)	$ 11.16
Restricted shares, forfeited, Weighted average grant date fair value (in dollars per share)	$ 17.27
Restricted shares, Weighted average grant date fair value, ending balance (in dollars per share)	$ 17.96

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Acquisitions (Tables)

9 Months Ended

Mar. 31, 2015

Business Combinations [Abstract]

Allocation of Total Consideration to Assets Acquired and Liabilities Assumed

The following table represents the preliminary allocation of the total consideration to assets acquired and liabilities assumed in the acquisition of eMT based on Sparton’s preliminary estimate of their respective fair values at the acquisition date (in thousands):

Total purchase consideration:
Cash	$	20,000
Additional cash consideration for post closing working capital adjustment	1,600
Estimated additional consideration payable in relation to post closing income tax adjustment	469
Total purchase consideration	$	22,069
Assets acquired and liabilities assumed:
Cash	$	1,505
Accounts receivable, net	4,444
Inventory	4,090
Other current assets	26
Property, plant and equipment	584
Customer relationships	5,950
Non-compete agreements	2,730
Tradenames	80
Goodwill	6,959
Other long term assets	30
Accounts payable	(3,636		)
Other current liabilities	(693		)
Total assets acquired and liabilities assumed	$	22,069

Business Acquisition, Pro Forma Information

The pro forma amounts presented are not necessarily indicative of either the actual consolidated results had the acquisition occurred as of July 1, 2013 and 2012, respectively, or of future consolidated operating results (in thousands, except per share amounts).

	For the Three Months Ended				For the Nine Months Ended
	March 31, 2015		March 31, 2014		March 31, 2015		March 31, 2014
Net sales	$	95,019	$	97,656	$	267,932	$	294,888
Income before provision for income taxes	5,147		8,102		9,952		18,513
Net income	4,829		6,209		8,689		14,101
Net income per share — basic	0.49		0.61		0.88		1.40
Net income per share — diluted	0.49		0.61		0.88		1.39

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Commitments and Contingencies - Additional Information (Detail) (USD $)	3 Months Ended	9 Months Ended
	Jun. 30, 2014	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Accrual amount of minimum future undiscounted financial liabilities related to Coors Road Property	$ 8,200,000	$ 7,700,000
Environmental remediation expense	4,200,000
Loss contingency accrual		7,700,000
Environmental remediation		1,500,000
Amount of financial liability included in other accrued expenses of current liability		600,000
Percentage of certain future environmental expenses over the threshold reimbursed		37.50%
Certain future environmental expenses threshold amount whose excess in percentage reimbursed		8,400,000.0
Environmental expenses subject to reimbursement over the threshold incurred from the date of settlement		5,800,000
Third-party environmental recoveries	1,500,000
Period for reimbursement before income taxes		16 years
Estimated additional possible future environmental		3,100,000
Expected reimbursements from department of energy		$ 1,000,000

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Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 1.5	$ 1.1	$ 4.3	$ 2.4

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Inventories and Cost of Contracts in Progress - Classifications of Inventory, Net of Interim Billings (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Jun. 30, 2014
Inventory Disclosure [Abstract]
Raw materials	$ 40,830	$ 40,535
Work in process	15,337	10,609
Finished goods	15,903	10,188
Total inventory and cost of contracts in progress, gross	72,070	61,332
Inventory to which the U.S. government has title due to interim billings	(7,730)	(7,960)
Total inventory and cost of contracts in progress, net	$ 64,340	$ 53,372	[1]

[1] Derived from the Company’s audited financial statements as of June 30, 2014.

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Stock-Based Compensation - Expense by Type of Share-Based Award (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 500	$ 370	$ 1,718	$ 1,287
Fair value expense of stock option awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	82	0	223	0
Restricted stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	166	0	451	0
Restricted and unrestricted stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 252	$ 370	$ 1,044	$ 1,287

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Business Segments - Operating Results and Other Financial Information by Segment (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 31, 2015 segment	Mar. 31, 2014 segment	Mar. 31, 2015 segment	Mar. 31, 2014 segment	Jun. 30, 2014
Segment Reporting Information [Line Items]
Number of segments	2	2	2	2
Sales	$ 93,065	$ 83,983	$ 255,732	$ 243,001
Gross profit	18,631	16,478	46,616	43,907
Operating income (loss)	4,882	6,375	8,443	15,267
Selling and administrative expenses	11,883	8,807	33,288	25,139
Internal research and development expenses	418	213	715	1,004
Restructuring charges	0	0	0	188
Depreciation/amortization	2,631	2,270	7,677	5,910
Capital expenditures	2,075	841	3,903	2,253
Total assets	243,515		243,515		198,980	[1]
Manufacturing and Design Services [Member]
Segment Reporting Information [Line Items]
Sales	62,150	59,997	179,191	181,760
Gross profit	8,073	7,872	23,367	25,744
Operating income (loss)	2,093	3,466	6,872	13,232
Selling and administrative expenses	4,623	3,437	12,485	10,190
Internal research and development expenses	0	0	0	0
Restructuring charges				188
Depreciation/amortization	2,051	1,830	6,225	4,714
Capital expenditures	201	587	948	1,073
Total assets	162,650		162,650		144,991
Engineered Components and Products [Member]
Segment Reporting Information [Line Items]
Sales	36,022	28,853	88,010	72,824
Gross profit	10,558	8,606	23,249	18,163
Operating income (loss)	7,208	6,112	14,747	10,986
Selling and administrative expenses	2,831	2,161	7,588	5,984
Internal research and development expenses	418	213	715	1,004
Restructuring charges				0
Depreciation/amortization	356	341	942	905
Capital expenditures	160	168	1,038	787
Total assets	58,349		58,349		35,033
Corporate And Other Unallocated [Member]
Segment Reporting Information [Line Items]
Sales	0	0	0	0
Gross profit	0	0	0	0
Operating income (loss)	(4,419)	(3,203)	(13,176)	(8,951)
Selling and administrative expenses	4,429	3,209	13,215	8,965
Internal research and development expenses	0	0	0	0
Restructuring charges				0
Depreciation/amortization	224	99	510	291
Capital expenditures	1,714	86	1,917	393
Total assets	22,516		22,516		18,956
Eliminations [Member]
Segment Reporting Information [Line Items]
Sales	(5,107)	(4,867)	(11,469)	(11,583)
Gross profit	0	0	0	0
Operating income (loss)	0	0	0	0
Selling and administrative expenses	0	0	0	0
Internal research and development expenses	0	0	0	0
Restructuring charges				0
Depreciation/amortization	0	0	0	0
Capital expenditures	0	0	0	0
Total assets	$ 0		$ 0		$ 0

[1] Derived from the Company’s audited financial statements as of June 30, 2014.

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Income Taxes - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Income Tax Disclosure [Abstract]
Provision (benefit) for income taxes	$ 1.0		$ 1.0
Valuation allowance	0.1		0.1
Deferred tax assets	$ 1.1		$ 1.1
Effective income tax rate reconciliation percent	33.70%	32.20%	34.00%	32.70%

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Business and Basis of Presentation

9 Months Ended

Mar. 31, 2015

Accounting Policies [Abstract]

Business and Basis of Presentation

Business and Basis of Presentation

Sparton Corporation and subsidiaries (the “Company” or “Sparton”) has been in continuous existence since 1900. It was last reorganized in 1919 as an Ohio corporation. The Company is a provider of design, development and manufacturing services for complex electromechanical devices, as well as sophisticated engineered products complementary to the same electromechanical value stream. The Company serves the Medical & Biotechnology, Military & Aerospace and Industrial & Commercial markets through two reportable business segments; Manufacturing & Design Services (“MDS”) and Engineered Components & Products (“ECP”). Financial information by segment is presented in Note 14. All of the Company's facilities are certified to one or more of the ISO/AS standards, including ISO 9001, AS9100 and ISO 13485, with most having additional certifications based on the needs of the customers they serve. The Company's products and services include offerings for Original Equipment Manufacturers (“OEM”) and Emerging Technology (“ET”) customers that utilize microprocessor-based systems which include transducers, printed circuit boards and assemblies, sensors and electromechanical components, as well as development and design engineering services relating to these product sales. Sparton also develops and manufactures sonobuoys, anti-submarine warfare (“ASW”) devices used by the United States Navy as well as foreign countries friendly to the U.S. and manufactures ruggedized flat panel display systems for military panel PC workstations, air traffic control and industrial applications. Many of the physical and technical attributes in the production of these proprietary products are similar to those required in the production of the Company's other electrical and electromechanical products and assemblies.

The unaudited condensed financial statements and related footnotes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The financial information presented herein should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2014, which includes information and disclosures not presented herein. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain reclassifications of prior period amounts have been made to conform to the current year presentation. Subsequent events have been evaluated through the date these financial statements were issued. In the opinion of management, the unaudited condensed consolidated financial statements contain all of the adjustments, consisting of normal recurring adjustments, necessary to present fairly, in summarized form, the consolidated financial position, results of operations and cash flows of the Company. The results of operations for the three months and nine months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the full fiscal year 2015.

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Subsequent Events (Details) (USD $)	0 Months Ended
	Apr. 14, 2015	Apr. 13, 2015	Sep. 11, 2014
Hunter Technology [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Revenues	$ 80,500,000
Closing purchase consideration	55,000,000
Contingent consideration	13,000,000
Revolving Credit Facility [Member]
Subsequent Event [Line Items]
Maximum borrowing capacity			200,000,000.0
Additional borrowing capacity			100,000,000.0
Revolving Credit Facility [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Increase in borrowing capacity		75,000,000
Maximum borrowing capacity		275,000,000
Additional borrowing capacity		$ 100,000,000.0

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Goodwill and Other Intangible Assets - Aggregate Amortization Expense Relative to Existing Intangible Assets (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
2015	$ 1,398
2016	5,319
2017	4,682
2018	4,105
2019	3,499
Thereafter	6,380
Total	$ 25,383

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Debt (Tables)

9 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

Summary of Long-term Debt

Debt consists of the following at March 31, 2015 and June 30, 2014 (in thousands):

	March 31, 2015		June 30, 2014
Borrowings under revolving credit facilities	$	80,000	$	41,000
Less: current portion	—		(900		)
Long-term debt, net of current portion	$	80,000	$	40,100

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Goodwill and Other Intangible Assets (Tables)

9 Months Ended

Mar. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Changes in Carrying Amount of Goodwill

Changes in the carrying value of goodwill for the nine months ended March 31, 2015 and year ended June 30, 2014 and the ending composition of goodwill as of March 31, 2015 and June 30, 2014 are as follows (in thousands):

	March 31, 2015
	Manufacturing and Design Services			Engineered Components and Products		Total
Goodwill, beginning of period	$	26,008		$	2,181	$	28,189
Additions to goodwill during the period	9,412			17,087		26,499
Goodwill, end of period	$	35,420		$	19,268	$	54,688
	June 30, 2014
	Manufacturing and Design Services			Engineered Components and Products		Total
Goodwill, beginning of period	$	14,767		$	—	$	14,767
Additions to goodwill during the period	11,241			2,181		13,422
Goodwill, end of period	$	26,008		$	2,181	$	28,189
	March 31, 2015
	Manufacturing and Design Services			Engineered Components and Products		Total
Acquired Goodwill	$	48,573		$	19,268	$	67,841
Accumulated impairment	(13,153		)	—		(13,153		)
Goodwill	$	35,420		$	19,268	$	54,688
	June 30, 2014
	Manufacturing and Design Services			Engineered Components and Products		Total
Acquired Goodwill	$	39,161		$	2,181	$	41,342
Accumulated impairment	(13,153		)	—		(13,153		)
Goodwill	$	26,008		$	2,181	$	28,189

Summary of Intangible Assets, Net

The amortization periods, gross carrying amounts, accumulated amortization, accumulated impairments and net carrying values of intangible assets at March 31, 2015 and June 30, 2014 are as follows (dollars in thousands):

	Amortization Period in Months		Gross Carrying Amount		Accumulated Amortization			Accumulated Impairments			Net Carrying Value
	March 31, 2015
Amortized intangible assets:
Non-compete agreements	24	- 60	$	3,715	$	(879	)	$	—		$	2,836
Customer relationships	84	- 180	36,520		(10,894		)	(3,663		)	21,963
Trademarks/Tradenames	12	- 120	260		(82		)	—			178
Unpatented Technology		84	650		(244		)	—			406
			$	41,145	$	(12,099	)	$	(3,663	)	$	25,383
	June 30, 2014
Amortized intangible assets:
Non-compete agreements	24	- 60	$	420	$	(46	)	$	—		$	374
Customer relationships	84	- 180	29,870		(7,220		)	(3,663		)	18,987
Trademarks/Tradenames		120	180		(15		)	—			165
Unpatented Technology		84	650		(135		)	—			515
			$	31,120	$	(7,416	)	$	(3,663	)	$	20,041

Aggregate Amortization Expense Relative to Existing Intangible Assets

Future amortization expense relative to existing intangible assets for the periods shown is currently estimated to be as follows (in thousands):

Fiscal Year Ending June 30,
2015	$	1,398
2016	5,319
2017	4,682
2018	4,105
2019	3,499
Thereafter	6,380
Total	$	25,383

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Stock-Based Compensation - Options (Details) (USD $) In Thousands, except Share data, unless otherwise specified	9 Months Ended
	Mar. 31, 2015
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number Outstanding (in shares)	97,113
Weighted Average Remaining Contractural Life (in years)	9 years 1 month 13 days
Weighted Average Exercise Price (in dollars per share)	$ 26.12
Aggregate Intrinsic Value (in thousands)	$ 53
Number Exercisable (in shares)	3,308
Weighted Average Remaining Contractural Life (in years)	29 days
Weighted Average Exercise Price (in dollars per share)	$ 8.57
Aggregate Intrinsic Value (in thousands)	53
Exercise Price Range One [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Minimum (in dollars per share)	$ 8.57
Number Outstanding (in shares)	3,308
Weighted Average Remaining Contractural Life (in years)	29 days
Weighted Average Exercise Price (in dollars per share)	$ 8.57
Aggregate Intrinsic Value (in thousands)	53
Number Exercisable (in shares)	3,308
Weighted Average Remaining Contractural Life (in years)	29 days
Weighted Average Exercise Price (in dollars per share)	$ 8.57
Aggregate Intrinsic Value (in thousands)	53
Exercise Price Range Two [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Minimum (in dollars per share)	$ 23.85
Range of Exercise Prices, Maximum (in dollars per share)	$ 26.86
Number Outstanding (in shares)	93,805
Weighted Average Remaining Contractural Life (in years)	9 years 5 months 9 days
Weighted Average Exercise Price (in dollars per share)	$ 26.74
Aggregate Intrinsic Value (in thousands)	0
Number Exercisable (in shares)	0
Weighted Average Remaining Contractural Life (in years)	0 years
Weighted Average Exercise Price (in dollars per share)	$ 0.00
Aggregate Intrinsic Value (in thousands)	$ 0

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Debt - Summary of Long Term Debt (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Jun. 30, 2014
Debt Disclosure [Abstract]
Borrowings under revolving credit facilities	$ 80,000	$ 41,000
Less: current portion	0	(900)	[1]
Long-term debt, net of current portion	$ 80,000	$ 40,100	[1]

[1] Derived from the Company’s audited financial statements as of June 30, 2014.

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Defined Benefit Pension Plan (Tables)

9 Months Ended

Mar. 31, 2015

Compensation and Retirement Disclosure [Abstract]

Components of Net Periodic Pension Expense

The components of net periodic pension expense are as follows for the three and nine months ended March 31, 2015 and 2014 (in thousands):

	For the Three Months Ended						For the Nine Months Ended
	March 31, 2015			March 31, 2014			March 31, 2015			March 31, 2014
Service cost	$	—		$	—		$	—		$	—
Interest cost	82			89			245			266
Expected return on plan assets	(140		)	(131		)	(420		)	(393		)
Amortization of prior service cost	—			—			—			—
Amortization of unrecognized net actuarial loss	20			32			60			96
Net pension income	(38		)	(10		)	(115		)	(31		)
Pro rata recognition of lump-sum settlements	—			—			—			—
Total pension income	$	(38	)	$	(10	)	$	(115	)	$	(31	)

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Stock-Based Compensation (Tables)

9 Months Ended

Mar. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation Expense by Type of Share-Based Award

The following table shows stock-based compensation expense by type of share-based award for the three and nine months ended March 31, 2015 and 2014, respectively, included in the condensed consolidated statements of income (in thousands):

	For the Three Months Ended				For the Nine Months Ended
	March 31, 2015		March 31, 2014		March 31, 2015		March 31, 2014
Fair value expense of stock option awards	$	82	$	—	$	223	$	—
Restricted stock units	166		—		451		—
Restricted and unrestricted stock	252		370		1,044		1,287
Total stock-based compensation	$	500	$	370	$	1,718	$	1,287

The fair value of each stock option is estimated at the grant date using the Black-Scholes option pricing method. The table below outlines the weighted average assumptions used for the options granted during the nine months ended March 31, 2015:

	Weighted Average
Risk free interest rate	2.06	%
Volatility	34.10	%
Dividend yield	—	%
Expected life in years	6.25
Fair value price	$9.99

Unrecognized Compensation Cost Related to Restricted Stock Grants and Fair Value Expense of Stock Option Awards

The following table shows the total remaining unrecognized compensation cost related to stock options, restricted stock units and restricted stock, as well as the weighted average remaining required service period over which such costs will be recognized as of March 31, 2015:

	Total Remaining Unrecognized Compensation Cost		Weighted Average Remaining Required Service Period
	(in thousands)		(in years)
Fair value expense of stock option awards	$	638	2.02
Restricted stock units	1,296		2.02
Restricted stock	905		1.73
	$	2,839	1.92

Summary of Options Outstanding and Exercisable

The following is a summary of activity for the nine months ended March 31, 2015 related to the Company's stock options granted under its long-term incentive plans:

	Number of Options		Weighted Average Exercise Price
Options outstanding at June 30, 2014	38,543		$	8.57
Granted	93,805		26.74
Exercised	(19,247	)	8.57
Forfeited	(15,988	)	8.57
Options outstanding at March 31, 2015	97,113		26.12
Exercisable at March 31, 2015	3,308		$	8.57

Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range

The following is a summary of options outstanding and exercisable at March 31, 2015:

	Options Outstanding						Options Exercisable
Range of Exercise Prices	Number Outstanding	Weighted Average Remaining Contractural Life (in years)	Weighted Average Exercise Price		Aggregate Intrinsic Value (in thousands)		Number Exercisable	Weighted Average Remaining Contractural Life (in years)	Weighted Average Exercise Price		Aggregate Intrinsic Value (in thousands)
$8.57	3,308	0.08	$	8.57	$	53	3,308	0.08	$	8.57	$	53
$23.85-$26.86	93,805	9.44	26.74		—		—	—	—		—
	97,113	9.12	$	26.12	$	53	3,308	0.08	$	8.57	$	53

Shares Granted Under Long-Term Incentive Plans

The following is a summary of activity for the nine months ended March 31, 2015 related to restricted shares, unrestricted shares and restricted stock units granted under the Company’s long-term incentive plans:

	Shares		Weighted Average Grant Date Fair Value
Restricted shares at June 30, 2014	316,997		$	12.38
Granted	97,979		23.94
Vested	(172,459	)	11.16
Forfeited	(15,313	)	17.27
Restricted shares and restricted stock units at March 31, 2015	227,204		$	17.96

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CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) In Thousands, except Share data, unless otherwise specified	Total		Common Stock [Member]	Capital In Excess of Par Value [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Loss [Member]
Balance at Jun. 30, 2013	$ 96,072		$ 12,619	$ 18,751	$ 65,957	$ (1,255)
Balance (in shares) at Jun. 30, 2013			10,095,716
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of stock			121	(121)
Issuance of stock, (in shares)			96,664
Forfeiture of restricted stock	0		(4)	4
Forfeiture of restricted stock, (in shares)			(3,344)
Repurchase of stock	(1,559)		(96)	(1,463)
Repurchase of stock, (in shares)			(76,880)
Exercise of stock options	121		18	103
Exercise of stock options, (in shares)			14,119
Stock-based compensation	1,287			1,287
Excess tax benefit from stock-based compensation	496			496
Comprehensive income, net of tax	10,078				10,016	62
Balance at Mar. 31, 2014	106,495		12,658	19,057	75,973	(1,193)
Balance (in shares) at Mar. 31, 2014			10,126,275
Balance at Jun. 30, 2014	110,115	[1]	12,661	19,478	78,944	(968)
Balance (in shares) at Jun. 30, 2014	10,129,031		10,129,031
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of stock			34	(34)
Issuance of stock, (in shares)			26,793
Forfeiture of restricted stock			(19)	19
Forfeiture of restricted stock, (in shares)			(15,313)
Repurchase of stock	(6,830)		(312)	(6,518)
Repurchase of stock, (in shares)			(249,420)
Exercise of stock options	165		24	141
Exercise of stock options, (in shares)	19,247		19,245
Stock-based compensation	1,718			1,718
Excess tax benefit from stock-based compensation	996			996
Comprehensive income, net of tax	5,755				5,891	(136)
Balance at Mar. 31, 2015	$ 111,919		$ 12,388	$ 15,800	$ 84,835	$ (1,104)
Balance (in shares) at Mar. 31, 2015	9,910,336		9,910,336

[1] Derived from the Company’s audited financial statements as of June 30, 2014.

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Earnings Per Share Data (Tables)

9 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Earnings Per Share

Earnings per share calculations, including net income available to common shareholders and weighted average number of shares of common stock outstanding used in calculating basic and diluted income per share, for the three and nine months ended March 31, 2015 and 2014 are as follows:

	For the Three Months Ended					For the Nine Months Ended
	March 31, 2015			March 31, 2014		March 31, 2015			March 31, 2014
Numerator (in thousands):
Net income	$	4,133		$	4,246	$	5,891		$	10,016
Less net income allocated to contingently issuable participating securities	(59		)	—		(85		)	—
Net income available to common shareholders	$	4,074		$	4,246	$	5,806		$	10,016
Weighted average shares outstanding – Basic	9,764,838			10,124,587		9,874,185			10,104,029
Dilutive effect of stock options	4,537			25,666		14,720			23,782
Weighted average shares outstanding – Diluted	9,769,375			10,150,253		9,888,905			10,127,811
Net income available to common shareholders per share:
Basic	$	0.42		$	0.42	$	0.59		$	0.99
Diluted	$	0.42		$	0.42	$	0.59		$	0.99

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Goodwill and Other Intangible Assets - Summary of Changes in Carrying Amount of Goodwill (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended		12 Months Ended
	Mar. 31, 2015		Jun. 30, 2014
Goodwill [Roll Forward]
Goodwill, beginning of period	$ 28,189	[1]	$ 14,767
Additions to goodwill during the period	26,499		13,422
Goodwill, end of period	54,688		28,189	[1]
Acquired Goodwill	67,841		41,342
Accumulated impairment	(13,153)		(13,153)
Goodwill	54,688		28,189	[1]
Manufacturing and Design Services [Member]
Goodwill [Roll Forward]
Goodwill, beginning of period	26,008		14,767
Additions to goodwill during the period	9,412		11,241
Goodwill, end of period	35,420		26,008
Acquired Goodwill	48,573		39,161
Accumulated impairment	(13,153)		(13,153)
Goodwill	35,420		26,008
Engineered Components and Products [Member]
Goodwill [Roll Forward]
Goodwill, beginning of period	2,181		0
Additions to goodwill during the period	17,087		2,181
Goodwill, end of period	19,268		2,181
Acquired Goodwill	19,268		2,181
Accumulated impairment	0		0
Goodwill	$ 19,268		$ 2,181

[1] Derived from the Company’s audited financial statements as of June 30, 2014.

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Stock-Based Compensation - Unrecognized Compensation Cost Related to Restricted Stock Grants and Fair Value Expense of Stock Option Awards (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total Remaining Unrecognized Compensation Cost	$ 2,839
Weighted Average Remaining Required Service Period	1 year 11 months 1 day
Fair value expense of stock option awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total Remaining Unrecognized Compensation Cost	638
Weighted Average Remaining Required Service Period	2 years 0 months 7 days
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total Remaining Unrecognized Compensation Cost	1,296
Weighted Average Remaining Required Service Period	2 years 0 months 7 days
Restricted stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total Remaining Unrecognized Compensation Cost	$ 905
Weighted Average Remaining Required Service Period	1 year 8 months 23 days

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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Jun. 30, 2014
Current Assets:
Cash and cash equivalents	$ 5,581	$ 8,028	[1]
Accounts receivable, net of allowance for doubtful accounts of $141 and $126, respectively	46,332	48,697	[1]
Inventories and cost of contracts in progress, net	64,340	53,372	[1]
Deferred income taxes	4,248	3,813	[1]
Prepaid expenses and other current assets	4,957	2,654	[1]
Total current assets	125,458	116,564	[1]
Property, plant and equipment, net	29,777	28,523	[1]
Goodwill	54,688	28,189	[1]
Other intangible assets, net	25,383	20,041	[1]
Deferred income taxes — non-current	1,884	1,192	[1]
Other non-current assets	6,325	4,471	[1]
Total assets	243,515	198,980	[1]
Current Liabilities:
Current portion of long-term debt	0	900	[1]
Accounts payable	22,239	16,543	[1]
Accrued salaries and wages	8,675	7,854	[1]
Accrued health benefits	1,214	1,538	[1]
Performance based payments on customer contracts	1,217	3,196	[1]
Other accrued expenses	11,104	11,090	[1]
Total current liabilities	44,449	41,121	[1]
Long-term debt — non-current portion	80,000	40,100	[1]
Environmental remediation — non-current portion	7,147	7,644	[1]
Total liabilities	131,596	88,865	[1]
Commitments and contingencies			[1]
Shareholders’ Equity:
Preferred stock, no par value; 200,000 shares authorized, none issued	0	0	[1]
Common stock, $1.25 par value; 15,000,000 shares authorized, 9,910,336 and 10,129,031 shares issued and outstanding, respectively	12,388	12,661	[1]
Capital in excess of par value	15,800	19,478	[1]
Retained earnings	84,835	78,944	[1]
Accumulated other comprehensive loss	(1,104)	(968)	[1]
Total shareholders’ equity	111,919	110,115	[1]
Total liabilities and shareholders’ equity	$ 243,515	$ 198,980	[1]

[1] Derived from the Company’s audited financial statements as of June 30, 2014.

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Debt - Additional Information (Detail) (USD $)	3 Months Ended		9 Months Ended		0 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014	Apr. 13, 2015	Sep. 11, 2014	Jun. 30, 2014
Debt Instrument [Line Items]
Deferred finance costs	$ 1,000,000		$ 1,000,000
Deferred finance costs amortization period			5 years
Debt issuance cost	100,000	0	600,000	100,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity						200,000,000.0
Additional borrowing capacity						100,000,000.0
Current borrowings drawn against credit facility	80,000,000		80,000,000				41,000,000
Letter of Credit [Member]
Debt Instrument [Line Items]
Current borrowings drawn against credit facility	900,000		900,000
Minimum [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Unused commitment fees			0.20%
Maximum [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Unused commitment fees			0.35%
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Interest rate			1.00%
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Interest rate			1.75%
Base Rate [Member] | Minimum [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Interest rate			0.00%
Base Rate [Member] | Maximum [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Interest rate			0.75%
Subsequent Event [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity					275,000,000
Additional borrowing capacity					100,000,000.0
Increase in borrowing capacity					$ 75,000,000

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Statement of Comprehensive Income [Abstract]
Amortization of unrecognized net actuarial loss, tax benefit (provision)	$ 12	$ 11	$ 27	$ 34
Tax provision on unrecognized gain (loss) of marketable securities	$ 68	$ 0	$ 102	$ 0

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Earnings Per Share Data - Additional Information (Detail)	3 Months Ended		9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Earnings Per Share [Abstract]
Unvested restricted shares included in determining both basic and diluted earnings per share	0	0	175,666	316,997
Potential shares	306,009	0	306,009	0

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Acquisitions - Electronic Manufacturing Technology LLC (Details) (USD $) In Thousands, unless otherwise specified	0 Months Ended
	Jul. 09, 2014	Mar. 31, 2015	Jun. 30, 2014		Jun. 30, 2013
Assets acquired and liabilities assumed:
Goodwill		$ 54,688	$ 28,189	[1]	$ 14,767
Electronic Manufacturing Technology LLC [Member]
Business Acquisition [Line Items]
Cash	20,000
Additional cash consideration for post closing working capital adjustment	1,600
Estimated additional consideration payable in relation to post closing income tax adjustment	469
Total purchase consideration	22,069
Assets acquired and liabilities assumed:
Cash	1,505
Accounts receivable, net	4,444
Inventory	4,090
Other current assets	26
Property, plant and equipment	584
Goodwill	6,959
Other long term assets	30
Accounts payable	(3,636)
Other current liabilities	(693)
Total assets acquired and liabilities assumed	22,069
Customer relationships [Member] | Electronic Manufacturing Technology LLC [Member]
Assets acquired and liabilities assumed:
Intangible assets	5,950
Non-compete agreements [Member] | Electronic Manufacturing Technology LLC [Member]
Assets acquired and liabilities assumed:
Intangible assets	2,730
Tradenames [Member] | Electronic Manufacturing Technology LLC [Member]
Assets acquired and liabilities assumed:
Intangible assets	$ 80

[1] Derived from the Company’s audited financial statements as of June 30, 2014.

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Business Segments

9 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Business Segments

Business Segments

The Company is a provider of complex and sophisticated electromechanical devices with capabilities that include concept development, design and manufacturing engineering, production, distribution and field service. The Company serves the Medical & Biotechnology, Military & Aerospace and Industrial & Commercial markets through two reportable business segments; Manufacturing & Design Services and Engineered Components & Products. Reportable segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or group, in assessing performance and allocating resources. During the first quarter of fiscal 2015, the Company changed its reportable segments to align with the way it internally reports and manages the business. The prior reportable segments of Medical and Complex Systems have been combined and are referred to as Manufacturing and Design Services ("MDS"). The MDS segment represents the Company's contract manufacturing and design services where the customer owns the related intellectual property. The prior Defense and Security Systems reportable segment and subsequently acquired businesses providing rugged electronics are now referred to as Engineered Components and Products ("ECP"). The ECP segment represents the Company's manufacturing and design services where the Company owns the related intellectual property. The Company has restated the prior period to conform to the current year's presentation.

The Company uses an internal management reporting system, which provides important financial data to evaluate performance and allocate the Company's resources on a segment basis. Net sales are attributed to the segment in which the product is manufactured or service is performed. A segment's performance is evaluated based upon its operating income (loss). A segment's operating income (loss) includes its gross profit on sales less its selling and administrative expenses, including allocations of certain corporate operating expenses. Certain corporate operating expenses are allocated to segment results based on the nature of the service provided. Other corporate operating expenses, including certain administrative, financial and human resource activities as well as items such as interest expense, interest income, other income (expense) and income tax expense (benefit), are not allocated to operations and are excluded from segment profit. These costs are not allocated to the segments, as management excludes such costs when assessing the performance of the segments. Inter-segment transactions are generally accounted for at amounts that approximate arm's length transactions. Identifiable assets by segments are those assets that are used in each segment's operations. The accounting policies for each of the segments are the same as for the Company taken as a whole.

Manufacturing and Design Services segment operations are comprised of contract design, manufacturing and aftermarket repair and refurbishment of sophisticated printed circuit card assemblies, sub-assemblies, full product assemblies and cable/wire harnesses for customers seeking to bring their intellectual property to market. Customers include OEM and ET customers serving the Medical & Biotechnology, Military & Aerospace and Industrial & Commercial markets. In manufacturing for its customers, this segment adheres to very strict military and aerospace specifications, Food and Drug Administration (“FDA”) guidelines and approvals, in addition to product and process certifications. Sparton additionally is a leading developer of embedded software to operate medical devices and diagnostic equipment.

Engineered Components and Products segment operations are comprised of design, development and production of proprietary products for both domestic and foreign defense as well as commercial needs. Sparton designs and manufactures ASW devices known as sonobuoys for the U.S. Navy and foreign governments that meet Department of State licensing requirements. This segment also performs an engineering development function for the United States military and prime defense contractors for advanced technologies ultimately leading to future defense products as well as replacements for existing products. The sonobuoy product line is built to stringent military specifications. These products are restricted by International Tariff and Arms Regulations (“ITAR”) and qualified by the U.S. Navy, which limits opportunities for competition. Sparton is a provider of ruggedized flat panel display systems for military panel PC workstations, air traffic control and industrial and commercial marine applications. Ruggedized displays are manufactured for prime contractors, in some cases to specific military grade specifications. This segment is also a provider of high performance industrial grade computer systems and peripherals. Additionally, this business unit internally develops and markets commercial products for underwater acoustics and microelectromechanical (“MEMS”)-based inertial measurement.

Operating results and certain other financial information about the Company’s two reportable segments for the three and nine months ended March 31, 2015 and 2014 and as of March 31, 2015 and June 30, 2014 were as follows (in thousands):

	For the Three Months Ended March 31, 2015
	Manufacturing and Design Services		Engineered Components and Products		Corporate and Other Unallocated			Eliminations			Total
Sales	$	62,150	$	36,022	$	—		$	(5,107	)	$	93,065
Gross profit	8,073		10,558		—			—			18,631
Operating income (loss)	2,093		7,208		(4,419		)	—			4,882
Selling and administrative expenses	4,623		2,831		4,429			—			11,883
Internal research and development expenses	—		418		—			—			418
Depreciation/amortization	2,051		356		224			—			2,631
Capital expenditures	201		160		1,714			—			2,075
	For the Three Months Ended March 31, 2014
	Manufacturing and Design Services		Engineered Components and Products		Corporate and Other Unallocated			Eliminations			Total
Sales	$	59,997	$	28,853	$	—		$	(4,867	)	$	83,983
Gross profit	7,872		8,606		—			—			16,478
Operating income (loss)	3,466		6,112		(3,203		)	—			6,375
Selling and administrative expenses	3,437		2,161		3,209			—			8,807
Internal research and development expenses	—		213		—			—			213
Depreciation/amortization	1,830		341		99			—			2,270
Capital expenditures	587		168		86			—			841

	For the Nine Months Ended March 31, 2015
	Manufacturing and Design Services		Engineered Components and Products		Corporate and Other Unallocated			Eliminations			Total
Sales	$	179,191	$	88,010	$	—		$	(11,469	)	$	255,732
Gross profit	23,367		23,249		—			—			46,616
Operating income (loss)	6,872		14,747		(13,176		)	—			8,443
Selling and administrative expenses	12,485		7,588		13,215			—			33,288
Internal research and development expenses	—		715		—			—			715
Depreciation/amortization	6,225		942		510			—			7,677
Capital expenditures	948		1,038		1,917			—			3,903
	For the Nine Months Ended March 31, 2014
	Manufacturing and Design Services		Engineered Components and Products		Corporate and Other Unallocated			Eliminations			Total
Sales	$	181,760	$	72,824	$	—		$	(11,583	)	$	243,001
Gross profit	25,744		18,163		—			—			43,907
Operating income (loss)	13,232		10,986		(8,951		)	—			15,267
Selling and administrative expenses	10,190		5,984		8,965			—			25,139
Internal research and development expenses	—		1,004		—			—			1,004
Restructuring Charges	188		—		—			—			188
Depreciation/amortization	4,714		905		291			—			5,910
Capital expenditures	1,073		787		393			—			2,253

	As of March 31, 2015
	Manufacturing and Design Services		Engineered Components and Products		Corporate and Other Unallocated		Eliminations		Total
Total assets	$	162,650	$	58,349	$	22,516	$	—	$	243,515
	As of June 30, 2014
	Manufacturing and Design Services		Engineered Components and Products		Corporate and Other Unallocated		Eliminations		Total
Total assets	$	144,991	$	35,033	$	18,956	$	—	$	198,980

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Acquisitions - Pro Forma (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Business Combinations [Abstract]
Net sales	$ 95,019	$ 97,656	$ 267,932	$ 294,888
Income before provision for income taxes	5,147	8,102	9,952	18,513
Net income	$ 4,829	$ 6,209	$ 8,689	$ 14,101
Net income per share — basic (in dollars per share)	$ 0.49	$ 0.61	$ 0.88	$ 1.40
Net income per share — diluted (in dollars per share)	$ 0.49	$ 0.61	$ 0.88	$ 1.39

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Subsequent Events

9 Months Ended

Mar. 31, 2015

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On April 13, 2015, the Company amended its Credit Facility to increase the size of the revolving line-of-credit facility by $75 million to $275 million, reload the uncommitted loans under the agreement to $100.0 million and to make other sublimit and definitional changes. See footnote 6 for a further discussion of the Company's Credit Facility.

On April 14, 2015, the Company completed the acquisition of Hunter Technology ("Hunter"), an $80.5 million annual revenue business, with operations located in Milpitas, CA (San Jose) and Lawrenceville, GA (Atlanta), in a $55 million all-cash transaction. Additional consideration of up to $13.0 million is contingent upon Hunter attaining certain performance thresholds during the twelve month period following the transaction. Hunter, which is part of the Company's MDS segment, was founded in 1968 and was one of the first electronic contract manufacturing providers specializing in military and aerospace applications. Today, Hunter is one of the few suppliers in the Silicon Valley region providing engineering design, new product introduction (NPI) and full-rate production manufacturing solutions working with major defense and aerospace companies, test and measurement suppliers, secure networking solution providers, medical device manufacturers, and a wide variety of industrial customers. The initial accounting for this acquisition is not complete pending detailed analyses of the facts and circumstances that existed as of the acquisition date.

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Mar. 31, 2015		Mar. 31, 2014
Cash Flows from Operating Activities:
Net income	$ 5,891		$ 10,016
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	3,359		3,492
Amortization of intangible assets	4,318		2,418
Deferred income tax (benefit) expense	(1,039)		545
Stock-based compensation expense	1,718		1,287
Gross profit effect of capitalized profit in inventory from acquisitions	255		256
Excess tax benefit from stock-based compensation	(996)		(496)
Other	446		66
Changes in operating assets and liabilities, net of business acquisitions:
Accounts receivable	7,216		7,426
Inventories and cost of contracts in progress	(4,362)		3,497
Prepaid expenses and other assets	(1,706)		(1,196)
Performance based payments on customer contracts	(1,979)		(13,458)
Accounts payable and accrued expenses	(664)		1,358
Net cash provided by operating activities	12,457		15,211
Cash Flows from Investing Activities:
Acquisition of businesses, net of cash acquired and post-closing adjustments	(42,289)		(35,560)
Purchase of securities available for sale	(986)		0
Purchases of property, plant and equipment	(3,903)		(2,253)
Proceeds from sale of property, plant and equipment	0		69
Net cash used in investing activities	(47,178)		(37,744)
Cash Flows from Financing Activities:
Borrowings of long-term debt	112,414		53,000
Repayment of long-term debt	(73,414)		(28,108)
Payment of debt financing costs	(1,057)		0
Repurchase of stock	(6,830)		(1,559)
Proceeds from the exercise of stock options	165		121
Excess tax benefit from stock-based compensation	996		496
Net cash provided by financing activities	32,274		23,950
Net (decrease) increase in cash and cash equivalents	(2,447)		1,417
Cash and cash equivalents at beginning of period	8,028	[1]	6,085
Cash and cash equivalents at end of period	5,581		7,502
Supplemental disclosure of cash flow information:
Cash paid for interest	952		465
Cash paid for income taxes	3,383		4,734
Supplemental disclosure of non-cash investing activities:
Accounts payable recognized in relation to acquisition purchase consideration adjustments and holdbacks	$ 1,490		$ 0

[1] Derived from the Company’s audited financial statements as of June 30, 2014.

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Jun. 30, 2014
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 141	$ 126
Preferred stock, shares authorized	200,000	200,000
Preferred stock, shares issued	0	0
Common stock, par value (usd per share)	$ 1.25	$ 1.25
Common stock, shares authorized	15,000,000	15,000,000
Common stock, shares issued	9,910,336	10,129,031
Common stock, shares outstanding	9,910,336	10,129,031

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Defined Benefit Pension Plan

9 Months Ended

Mar. 31, 2015

Compensation and Retirement Disclosure [Abstract]

Defined Benefit Pension Plan

Defined Benefit Pension Plan

As of March 31, 2015, approximately 400 employees and retirees of the Company were covered by a defined benefit pension plan. Effective April 1, 2009, participation and the accrual of benefits in this pension plan were frozen, at which time all participants became fully vested and all prior service costs were recognized. The components of net periodic pension expense are as follows for the three and nine months ended March 31, 2015 and 2014 (in thousands):

	For the Three Months Ended						For the Nine Months Ended
	March 31, 2015			March 31, 2014			March 31, 2015			March 31, 2014
Service cost	$	—		$	—		$	—		$	—
Interest cost	82			89			245			266
Expected return on plan assets	(140		)	(131		)	(420		)	(393		)
Amortization of prior service cost	—			—			—			—
Amortization of unrecognized net actuarial loss	20			32			60			96
Net pension income	(38		)	(10		)	(115		)	(31		)
Pro rata recognition of lump-sum settlements	—			—			—			—
Total pension income	$	(38	)	$	(10	)	$	(115	)	$	(31	)

The Company’s policy is to fund the plan based upon legal requirements and tax regulations. During the nine months ended March 31, 2015, no contribution was made to the pension plan. During the nine months ended March 31, 2014, less than $0.1 million was contributed to the pension plan. For further information on future funding projections and other pension disclosures see Part II, Item 8, Note 10 “Employee Retirement Benefit Plans” of the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2014.

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Document and Entity Information	9 Months Ended
	Mar. 31, 2015	Apr. 24, 2015
Document And Entity Information [Abstract]
Entity Registrant Name	Sparton Corp.
Entity Central Index Key	0000092679
Current Fiscal Year End Date	--06-30
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		9,910,336

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Commitments and Contingencies

9 Months Ended

Mar. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Sparton has been involved with ongoing environmental remediation since the early 1980’s related to one of its former manufacturing facilities, located in Albuquerque, New Mexico (“Coors Road”). Although the Company entered into a long-term lease of the Coors Road property that was accounted for as a sale of property during fiscal 2010, it remains responsible for the remediation obligations related to its past operation of this facility. During the fourth quarter of fiscal 2014, Sparton completed a review of its remediation plan, which included remediation methods currently in use, desired outcomes, progress to date, anticipated progress over the next sixteen years and estimated costs to complete the remediation plan by fiscal 2030, following the terms of a March 2000 consent decree. The Company’s minimum cost estimate is based upon existing technology and excludes certain legal costs, which are expensed as incurred. The Company’s estimate includes equipment and operating and maintenance costs for onsite and offsite pump and treat containment systems, as well as continued onsite and offsite monitoring. It also includes periodic reporting requirements. During this latest review, the Company found: additional concentrations of contaminants on-site that required clean-up actions previously not included within the remediation plan; progress to date on the removal of certain other on-site contaminants was taking place slower than previously anticipated; and that certain efficiencies regarding periodic reporting were not being realized as had been previously anticipated. The discovery of additional on-site contaminants, slower than expected removal rates of other on-site contaminants and continued high periodic reporting costs added significant additional costs to the remediation project that are expected to continue for a number of years. As a result, the remaining estimated minimum future undiscounted costs of this financial liability increased to $8.2 million at June 30, 2014, thereby requiring a $4.2 million non-cash charge against operations in the fourth quarter of fiscal 2014. As of March 31, 2015, the remaining estimated minimum future undiscounted costs of this financial liability is $7.7 million. This charge is net of United States Department of Energy (“DOE”) reimbursements of $1.5 million expected to take place in future years, under the fiscal 2003 agreement between the Company and the DOE, as further explained below. Of the $7.7 million financial liability, $0.6 million is classified as a current liability and included on the balance sheet in other accrued expenses.

In fiscal 2003, Sparton reached an agreement with the United States Department of Energy (“DOE”) and others to recover certain remediation costs. Under the settlement terms, Sparton received cash and obtained some degree of risk protection as the DOE agreed to reimburse Sparton for 37.5% of certain future environmental expenses in excess of $8.4 million incurred from the date of settlement, of which approximately $5.8 million has been expended as of March 31, 2015 toward the $8.4 million threshold. It is expected that the DOE reimbursements will commence in the years after fiscal 2020. At June 30, 2014, the Company recognized a $1.5 million long-term asset in relation to these expected reimbursements and is considered collectible. The $1.5 million DOE receivable is included in other non-current assets on the balance sheet. Uncertainties associated with environmental remediation contingencies are pervasive and often result in wide ranges of reasonably possible outcomes. Estimates developed in the early stages of remediation can vary significantly. Normally a finite estimate of cost does not become fixed and determinable at a specific point in time. Rather, the costs associated with environmental remediation become estimable over a continuum of events and activities that help to frame and define a liability. Factors which cause uncertainties for the Company include, but are not limited to, the effectiveness of the current work plans in achieving targeted results and proposals of regulatory agencies for desired methods and outcomes. It is possible that cash flows and results of operations could be materially affected by the impact of changes associated with the ultimate resolution of this contingency. At March 31, 2015, the Company estimates that it is reasonably possible, but not probable, that future environmental remediation costs associated with the Company’s past operations at the Coors Road property, in excess of amounts already recorded, could be up to $3.1 million before income taxes over the next sixteen years, with such amount expected to be offset by related reimbursement from the DOE of $1.0 million.

The Company and its subsidiaries are also involved in certain existing compliance issues with the EPA and various state agencies, including being named as a potentially responsible party at several sites. Potentially responsible parties ("PRPs") can be held jointly and severally liable for the clean-up costs at any specific site. The Company’s past experience, however, has indicated that when it has contributed relatively small amounts of materials or waste to a specific site relative to other PRPs, its ultimate share of any clean-up costs has been minor. Based upon available information, the Company believes it has contributed only small amounts to those sites in which it is currently viewed as a PRP and that reasonably possible losses related to these compliance issues are immaterial.

Litigation — On September 24, 2013, L-3 Communications Corporation, doing business as L-3 Linkabit (“Linkabit”) filed a complaint in the United States District Court for the Middle District of Florida, Orlando Division, against Sparton Corporation and Sparton Electronics alleging, among other things, that the Company failed to follow Linkabit drawings for the manufacture and assembly of certain products and that the Company changed its manufacturing process resulting in shipment of defective products to Linkabit. Linkabit seeks damages for breach of contract, breach of covenants, breach of warranties and negligence. In response to the Company's motion to dismiss on January 10, 2014, Linkabit filed its first amended complaint deleting the alleged negligence claims.  Trial is scheduled on January 19, 2016.  The Company believes that its defenses to the claims are very strong and it intends to defend this action vigorously.  Given the stage of the litigation and the unresolved remaining questions of fact, no liability has been recorded as the Company cannot estimate any loss, or range of loss, with confidence at this time.

U.S. Government Audits — Federal government agencies, including the Defense Contract Audit Agency and the Defense Contract Management Agency, routinely audit and evaluate government contracts and government contractors’ administrative processes and systems. These agencies review the Company’s performance on contracts, pricing practices, cost structure, financial capability and compliance with applicable laws, regulations and standards. They also review the adequacy of the Company’s internal control systems and policies, including the Company’s purchasing, accounting, estimating, compensation and management information processes and systems. The Company works closely with these agencies to ensure compliance.

Other — In addition to the foregoing, from time to time, the Company is involved in various legal proceedings relating to claims arising in the ordinary course of business. The Company is not currently a party to any other such legal proceedings, the adverse outcome of which, individually or in the aggregate, is expected to have a material adverse effect on our business, financial condition or results of operations.

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Income Statement [Abstract]
Net sales	$ 93,065	$ 83,983	$ 255,732	$ 243,001
Cost of goods sold	74,434	67,505	209,116	199,094
Gross profit	18,631	16,478	46,616	43,907
Operating Expense:
Selling and administrative expenses	11,883	8,807	33,288	25,139
Internal research and development expenses	418	213	715	1,004
Amortization of intangible assets	1,458	1,089	4,209	2,323
Restructuring charges	0	0	0	188
Other operating income, net	(10)	(6)	(39)	(14)
Total operating expense, net	13,749	10,103	38,173	28,640
Operating income	4,882	6,375	8,443	15,267
Other income (expense):
Interest expense	(458)	(187)	(1,561)	(547)
Interest income	0	0	2	2
Other, net	27	72	127	151
Total other expense, net	(431)	(115)	(1,432)	(394)
Income before provision for income taxes	4,451	6,260	7,011	14,873
Provision for income taxes	318	2,014	1,120	4,857
Net income	$ 4,133	$ 4,246	$ 5,891	$ 10,016
Income per share of common stock:
Basic (in dollars per share)	$ 0.42	$ 0.42	$ 0.59	$ 0.99
Diluted (in dollars per share)	$ 0.42	$ 0.42	$ 0.59	$ 0.99
Weighted average shares of common stock outstanding:
Basic (in shares)	9,764,838	10,124,587	9,874,185	10,104,029
Diluted (in shares)	9,769,375	10,150,253	9,888,905	10,127,811

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Property, Plant and Equipment, Net

9 Months Ended

Mar. 31, 2015

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment, Net

Property, Plant and Equipment, Net

Property, plant and equipment, net consists of the following at March 31, 2015 and June 30, 2014 (in thousands):

	March 31, 2015			June 30, 2014
Land and land improvements	$	1,429		$	1,429
Buildings and building improvements	26,107			25,779
Machinery and equipment	32,523			29,480
Construction in progress	3,152			1,893
Total property, plant and equipment	63,211			58,581
Less accumulated depreciation	(33,434		)	(30,058		)
Total property, plant and equipment, net	$	29,777		$	28,523

Included in construction and progress at March 31, 2015 is approximately $0.9 million related to the Company's corporate office expansion expected to be completed during the fourth quarter of fiscal 2015.

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Inventories and Cost of Contracts in Progress

9 Months Ended

Mar. 31, 2015

Inventory Disclosure [Abstract]

Inventories and Cost of Contracts in Progress

Inventories and Cost of Contracts in Progress

The following are the major classifications of inventory, net of interim billings, at March 31, 2015 and June 30, 2014 (in thousands):

	March 31, 2015			June 30, 2014
Raw materials	$	40,830		$	40,535
Work in process	15,337			10,609
Finished goods	15,903			10,188
Total inventory and cost of contracts in progress, gross	72,070			61,332
Inventory to which the U.S. government has title due to interim billings	(7,730		)	(7,960		)
Total inventory and cost of contracts in progress, net	$	64,340		$	53,372

The Company recorded inventory write-downs totaling $0.1 million and $0.1 million for the three months ended March 31, 2015 and 2014, respectively. For the nine months ended March 31, 2015 and 2014, respectively, the Company recorded inventory write-downs of $0.3 million and $0.3 million. These charges are included in cost of goods sold for the periods presented.

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New Accounting Standards

9 Months Ended

Mar. 31, 2015

Accounting Changes and Error Corrections [Abstract]

New Accounting Standards

New Accounting Standards

In July 2013, the Financial Accounting Standards Board (the "FASB") issued authoritative guidance under Accounting Standards Update No. 2013-11 ("ASU 2013-11"), which provides guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss (“NOL”) carryforward, a similar tax loss or a tax credit carryforward exists. ASU 2013-11 requires entities to present an unrecognized tax benefit as a reduction of a deferred tax asset for an NOL or tax credit carryforward whenever the NOL or tax credit carryforward would be available to reduce the additional taxable income or tax due if the tax position is disallowed. This accounting standard update requires entities to assess whether to net the unrecognized tax benefit with a deferred tax asset as of the reporting date. ASU 2013-11 was effective for the Company’s first quarter of fiscal 2015. The adoption of this guidance did not have a significant impact on the Company's consolidated financial statements.

In May 2014, the FASB issued Accounting Standards Update No. 2014-09 ("ASU 2014-09"), which amends guidance for revenue recognition. Under the new standard, revenue will be recognized when control of the promised goods or services is transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods and services. The standard creates a five-step model that will generally require companies to use more judgment and make more estimates than under current guidance when considering the terms of contracts along with all relevant facts and circumstances. These include the identification of customer contracts and separating performance obligations, the determination of transaction price that potentially includes an estimate of variable consideration, allocating the transaction price to each separate performance obligation and recognizing revenue in line with the pattern of transfer. The standard also requires extensive additional disclosures to provide greater insight into revenues recognized and deferred, including quantitative and qualitative information about significant judgments and changes in those judgments made to determine the timing and amount of revenues recognized. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. Companies have the option of using either a full or modified retrospective approach in applying this standard. The Company is currently in the process of evaluating the impact of adoption on its consolidated financial statements. In April, 2015, the FASB proposed a one-year delay of the effective date for this new revenue recognition standard.  If the proposed accounting standard update is adopted, the revenue recognition standard will be effective for the Company beginning in the Company's fiscal year 2019.

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Stock-Based Compensation

9 Months Ended

Mar. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Stock-Based Compensation

The Company has two long-term incentive plans. The Sparton Corporation Stock Incentive Plan, as amended and restated (the “2001 Plan”) was approved by the Company’s shareholders on October 24, 2001. The Sparton Corporation 2010 Long-Term Incentive Plan (the “2010 Plan”) was approved by the Company’s shareholders on October 28, 2009.

2001 Plan.Under the 2001 Plan, the Company may grant to employees and non-employee directors incentive and non-qualified stock options, stock appreciation rights, restricted stock and other stock-based awards. All of the stock options issued to date under the 2001 Plan have either three, five or ten-year lives with either immediate vesting or vesting on an annual basis over four years beginning one year after grant date. Restricted stock awards granted to date to employees under the 2001 Plan vest annually over periods ranging from approximately 2.5 to 4.0 years, in some cases subject to achievement of certain financial performance metrics in addition to the service requirements. Unrestricted stock awards granted to date under the 2001 Plan represent annual stock grants to directors as a component of their overall compensation. The 2001 Plan’s termination date with respect to the granting of new awards was October 24, 2011. The total number of shares authorized to be granted under the 2001 Plan was 970,161 shares of the Company’s common stock, which equals the number of underlying awards previously made under the 2001 Plan.

2010 Plan.Under the 2010 Plan, the Company may grant to employees, officers and directors of the Company or its subsidiaries incentive and non-qualified stock options, stock appreciation rights, restricted stock or restricted stock units, performance awards and other stock-based awards, including grants of shares. Stock options issued to date under the 2010 Plan have ten-year lives and vest annually over four years. Restricted stock and restricted stock unit awards granted to date to employees under the 2010 Plan vest annually over four years, in some cases subject to achievement of certain financial performance metrics in addition to the service requirements. Unrestricted stock awards granted to date under the 2010 Plan represent annual stock grants to directors as a component of their overall compensation. The 2010 Plan has a term of ten years. The total number of shares that may be awarded under the 2010 Plan is 1,000,000 shares of common stock, of which amount, 487,619 shares remain available for awards as of March 31, 2015.

The following table shows stock-based compensation expense by type of share-based award for the three and nine months ended March 31, 2015 and 2014, respectively, included in the condensed consolidated statements of income (in thousands):

	For the Three Months Ended				For the Nine Months Ended
	March 31, 2015		March 31, 2014		March 31, 2015		March 31, 2014
Fair value expense of stock option awards	$	82	$	—	$	223	$	—
Restricted stock units	166		—		451		—
Restricted and unrestricted stock	252		370		1,044		1,287
Total stock-based compensation	$	500	$	370	$	1,718	$	1,287

The following table shows the total remaining unrecognized compensation cost related to stock options, restricted stock units and restricted stock, as well as the weighted average remaining required service period over which such costs will be recognized as of March 31, 2015:

	Total Remaining Unrecognized Compensation Cost		Weighted Average Remaining Required Service Period
	(in thousands)		(in years)
Fair value expense of stock option awards	$	638	2.02
Restricted stock units	1,296		2.02
Restricted stock	905		1.73
	$	2,839	1.92

During the nine months ended March 31, 2015, the Company awarded an aggregate of 93,805 stock options to certain members of management with a weighted average exercise price of $26.74. The fair value of each stock option is estimated at the grant date using the Black-Scholes option pricing method. The table below outlines the weighted average assumptions used for the options granted during the nine months ended March 31, 2015:

	Weighted Average
Risk free interest rate	2.06	%
Volatility	34.10	%
Dividend yield	—	%
Expected life in years	6.25
Fair value price	$9.99

The risk-free interest rate was determined using the then implied yield currently available for zero-coupon U.S. government issues with a remaining term equal to the expected life of the stock options. The expected volatility assumption used in the Black-Scholes option pricing models was based on the historical volatility of the Company’s common stock. The Company does not currently intend to pay cash dividends and thus has assumed a 0% dividend yield. The Company estimates the expected life for stock options based on expected future exercise patterns.

The Company did not grant any stock options during the nine months ended March 31, 2014.

The following is a summary of activity for the nine months ended March 31, 2015 related to the Company's stock options granted under its long-term incentive plans:

	Number of Options		Weighted Average Exercise Price
Options outstanding at June 30, 2014	38,543		$	8.57
Granted	93,805		26.74
Exercised	(19,247	)	8.57
Forfeited	(15,988	)	8.57
Options outstanding at March 31, 2015	97,113		26.12
Exercisable at March 31, 2015	3,308		$	8.57

The following is a summary of options outstanding and exercisable at March 31, 2015:

	Options Outstanding						Options Exercisable
Range of Exercise Prices	Number Outstanding	Weighted Average Remaining Contractural Life (in years)	Weighted Average Exercise Price		Aggregate Intrinsic Value (in thousands)		Number Exercisable	Weighted Average Remaining Contractural Life (in years)	Weighted Average Exercise Price		Aggregate Intrinsic Value (in thousands)
$8.57	3,308	0.08	$	8.57	$	53	3,308	0.08	$	8.57	$	53
$23.85-$26.86	93,805	9.44	26.74		—		—	—	—		—
	97,113	9.12	$	26.12	$	53	3,308	0.08	$	8.57	$	53

The intrinsic value of options exercised during the nine months ended March 31, 2015 and 2014 was approximately $0.1 million and $0.2 million, respectively.

The following is a summary of activity for the nine months ended March 31, 2015 related to restricted shares, unrestricted shares and restricted stock units granted under the Company’s long-term incentive plans:

	Shares		Weighted Average Grant Date Fair Value
Restricted shares at June 30, 2014	316,997		$	12.38
Granted	97,979		23.94
Vested	(172,459	)	11.16
Forfeited	(15,313	)	17.27
Restricted shares and restricted stock units at March 31, 2015	227,204		$	17.96

The total fair value of restricted stock vested in the nine months ended March 31, 2015 and 2014 was approximately $4.3 million and $1.6 million, respectively.

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Fair Value Measurements

9 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The fair value of the Company's Credit Facility debt at March 31, 2015 and June 30, 2014 approximated its carrying value of $80.0 million and $41.0 million, respectively, as the rates on these borrowings are variable in nature. In relation to the acquisitions of Aydin, Beckwood, Aubrey, eMT, IED, Argotec, RTEmd, KEP Marine and Stealth, the Company estimated the fair value of the assets acquired and liabilities assumed at acquisition date. See Note 2 for a further discussion of these estimated fair values. The fair value of accounts receivable and accounts payable approximated their carrying values at both March 31, 2015 and June 30, 2014.

The Company holds marketable equity securities of $0.7 million and $0 at March 31, 2015 and June 30, 2014, respectively, that it classifies as available-for-sale and are recorded in other non-current assets on the Condensed Consolidated Balance Sheets. These securities are carried at fair value with unrealized gains and losses reflected in Accumulated Other Comprehensive Income and are classified as Level 1 in the fair value hierarchy. The assessment for impairment of marketable equity securities as available-for-sale is based on established financial methodologies, including quoted market prices for publicly traded securities. If the Company determines that a loss in the value of the investment is other than temporary, any such losses are recorded in other expense (income), net.

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Stock Repurchase Plan Stock Repurchase Plan (Details Textual) (Share Repurchase Program [Member], Common Stock [Member], USD $)	0 Months Ended	3 Months Ended	9 Months Ended	12 Months Ended	22 Months Ended
	May 01, 2013	Sep. 30, 2013	Mar. 31, 2015	Jun. 30, 2013	Mar. 15, 2015	Oct. 22, 2014	May 01, 2013
Share Repurchase Program [Member] | Common Stock [Member]
Class of Stock [Line Items]
Shares authorized for repurchase	$ 3,000,000.0					$ 5,000,000.0	$ 3,000,000.0
Share repurchased during the period (in shares)		47,119	181,278	128,158	175,277
Average price of common stock per share (in dollars per share)		$ 18.51	$ 27.55	$ 16.55	$ 17.08
Shares repurchased during the period		$ 900,000	$ 5,000,000	$ 2,100,000
Period beginning on the date of authorization	12 months

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Goodwill and Other Intangible Assets

9 Months Ended

Mar. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Goodwill represents the excess of purchase price over the fair value of the net assets acquired in conjunction with the Company’s purchases of Astro Instrumentation, LLC (“Astro”) in May 2006, Byers Peak, Incorporated (“Byers Peak”) in March 2011, Onyx EMS, LLC ("Onyx") in November 2012, Creonix, LLC ("Creonix") in June 2013, Aydin in August 2013, Beckwood in December 2013, Aubrey in March 2014, eMT in July 2014, IED in December 2014, Argotec in December 2014, RTEmd in January 2015, KEP Marine in January 2015 and Stealth in March 2015. Goodwill related to Astro, Byers Peak, Onyx, Creonix, Beckwood, Aubrey, eMT and RTEmd are reflected within the Company’s Manufacturing and Design Services operating segment. Goodwill related to Aydin, IED, Argotec, KEP Marine and Stealth are reflected within the Company's Engineered Components and Products operating segment. Changes in the carrying value of goodwill for the nine months ended March 31, 2015 and year ended June 30, 2014 and the ending composition of goodwill as of March 31, 2015 and June 30, 2014 are as follows (in thousands):

	March 31, 2015
	Manufacturing and Design Services			Engineered Components and Products		Total
Goodwill, beginning of period	$	26,008		$	2,181	$	28,189
Additions to goodwill during the period	9,412			17,087		26,499
Goodwill, end of period	$	35,420		$	19,268	$	54,688
	June 30, 2014
	Manufacturing and Design Services			Engineered Components and Products		Total
Goodwill, beginning of period	$	14,767		$	—	$	14,767
Additions to goodwill during the period	11,241			2,181		13,422
Goodwill, end of period	$	26,008		$	2,181	$	28,189
	March 31, 2015
	Manufacturing and Design Services			Engineered Components and Products		Total
Acquired Goodwill	$	48,573		$	19,268	$	67,841
Accumulated impairment	(13,153		)	—		(13,153		)
Goodwill	$	35,420		$	19,268	$	54,688
	June 30, 2014
	Manufacturing and Design Services			Engineered Components and Products		Total
Acquired Goodwill	$	39,161		$	2,181	$	41,342
Accumulated impairment	(13,153		)	—		(13,153		)
Goodwill	$	26,008		$	2,181	$	28,189

Other intangible assets represent the values assigned to customer relationships acquired in conjunction with the Company’s purchases of Astro, Byers Peak, Onyx, Creonix, Aydin, Beckwood and eMT, values assigned to non-compete agreements acquired in conjunction with the Company’s purchases of Beckwood, Aubrey and eMT, values assigned to trademarks and tradenames acquired in conjunction with the Company's purchases of Aydin and eMT and unpatented technology acquired with the Company's purchase of Aydin. The amortization periods, gross carrying amounts, accumulated amortization, accumulated impairments and net carrying values of intangible assets at March 31, 2015 and June 30, 2014 are as follows (dollars in thousands):

	Amortization Period in Months		Gross Carrying Amount		Accumulated Amortization			Accumulated Impairments			Net Carrying Value
	March 31, 2015
Amortized intangible assets:
Non-compete agreements	24	- 60	$	3,715	$	(879	)	$	—		$	2,836
Customer relationships	84	- 180	36,520		(10,894		)	(3,663		)	21,963
Trademarks/Tradenames	12	- 120	260		(82		)	—			178
Unpatented Technology		84	650		(244		)	—			406
			$	41,145	$	(12,099	)	$	(3,663	)	$	25,383
	June 30, 2014
Amortized intangible assets:
Non-compete agreements	24	- 60	$	420	$	(46	)	$	—		$	374
Customer relationships	84	- 180	29,870		(7,220		)	(3,663		)	18,987
Trademarks/Tradenames		120	180		(15		)	—			165
Unpatented Technology		84	650		(135		)	—			515
			$	31,120	$	(7,416	)	$	(3,663	)	$	20,041

Sparton did not incur any significant costs to renew or alter the term of its intangible assets during the nine months ended March 31, 2015. Amortization expense for the three months ended March 31, 2015 and 2014 was approximately $1.5 million and $1.1 million, respectively. Amortization expense for the nine months ended March 31, 2015 and 2014 was approximately $4.3 million and $2.4 million, respectively. A portion of amortization expense is included in cost of goods sold on the condensed consolidated statements of income for fiscal years 2015 and 2014. Future amortization expense relative to existing intangible assets for the periods shown is currently estimated to be as follows (in thousands):

Fiscal Year Ending June 30,
2015	$	1,398
2016	5,319
2017	4,682
2018	4,105
2019	3,499
Thereafter	6,380
Total	$	25,383

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Debt

9 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

Debt

Debt

Debt consists of the following at March 31, 2015 and June 30, 2014 (in thousands):

	March 31, 2015		June 30, 2014
Borrowings under revolving credit facilities	$	80,000	$	41,000
Less: current portion	—		(900		)
Long-term debt, net of current portion	$	80,000	$	40,100

Credit Facility

On September 11, 2014, the Company replaced its previous credit facility with a new $200.0 million revolving line-of-credit facility with a group of banks (the “Credit Facility”) to fund future acquisitions and to support the Company’s working capital needs and other general corporate purposes. The Credit Facility expires on September 11, 2019, is secured by substantially all assets of the Company and provides for up to an additional $100.0 million in uncommitted loans. On April 13, 2015, the Company amended its Credit Facility to increase the size of the revolving line-of-credit facility by $75 million to $275 million, reload the uncommitted loans under the agreement to $100.0 million and to make other sublimit and definitional changes.

Outstanding borrowings under the Credit Facility will bear interest, at the Company’s option, at either LIBOR, fixed for interest periods of one, two, three or six month periods, plus 1.00% to 1.75%, or at the bank’s base rate, as defined, plus 0.00% to 0.75%, based upon the Company’s Total Funded Debt/EBITDA Ratio, as defined. The Company is also required to pay commitment fees on unused portions of the Credit Facility ranging from 0.20% to 0.35%, based on the Company’s Total Funded Debt/EBITDA Ratio, as defined. The Credit Facility includes representations, covenants and events of default that are customary for financing transactions of this nature.

As a condition of the Credit Facility, the Company is subject to certain customary covenants, which it was in compliance with at March 31, 2015. The Company had $80.0 million of borrowings drawn against the Credit Facility at March 31, 2015 and additionally had certain letters of credit outstanding totaling $0.9 million.

Costs incurred in connection with the Company’s current Credit Facility of approximately $1.0 million were deferred and are amortized to interest expense over the five year term of the facility. The remaining unamortized portion of the previous revolving-credit facility financing costs were amortized in full at the time the Company entered into the new facility. Less than $0.1 million and $0.6 million of amortization of loan costs relating to the Credit Facility as well as the previous revolving-credit facility were recognized and reported as interest expense for the three and nine months ended March 31, 2015, respectively. Approximately $0.0 million and $0.1 million of amortization of loan costs relating to the previous revolving-credit facility were recognized and reported as interest expense for the three and nine months ended March 31, 2014, respectively. Additional fees incurred during the Company's fiscal 2015 fourth quarter in relation to the April 2015 amendment will be added to unamortized loan costs and amortized over the remaining life of the Credit Facility.

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Income Taxes

9 Months Ended

Mar. 31, 2015

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company recognized a number of discrete income tax items during the three and nine months ended March 31, 2015. In relation to its acquisition of the assets of Stealth.com in its fiscal 2015 third quarter, the Company recognized a discrete income tax benefit of approximately $1.0 million for the three and nine months ended March 31, 2015 in relation to the substantial reversal of a valuation allowance previously established against its Canadian net operating loss carryforwards. The remaining valuation allowance of approximately $0.1 million recorded against this approximate $1.1 million deferred tax asset is expected to be reversed and recognized as a reduction of the Company's effective tax rate during its fiscal 2015 fourth quarter. Additional discrete items include return to provision adjustments, certain jurisdictional audit adjustments and changes in state apportionment factors in relation to the Company's acquisitions during the current fiscal year. Excluding all discrete items, the Company's effective rate was 33.7% and 34.0% for the three and nine months ended March 31, 2015, respectively, compared to 32.2% and 32.7% for the three and nine months ended March 31, 2014, respectively. The Company’s effective income tax rate for the interim periods presented is based on management’s estimate of the Company’s effective tax rate for the applicable year and differs from the Federal statutory income tax rate primarily due to applicable permanent differences, foreign income taxes and state income taxes.

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Acquisitions - Additional Information (Detail)	3 Months Ended		9 Months Ended					0 Months Ended			0 Months Ended		0 Months Ended		0 Months Ended		0 Months Ended		0 Months Ended	3 Months Ended	9 Months Ended		0 Months Ended			0 Months Ended			3 Months Ended	9 Months Ended	3 Months Ended	9 Months Ended	3 Months Ended	9 Months Ended	3 Months Ended	9 Months Ended	3 Months Ended	9 Months Ended	3 Months Ended	9 Months Ended			12 Months Ended	9 Months Ended		9 Months Ended	12 Months Ended	9 Months Ended	12 Months Ended	9 Months Ended
	Mar. 31, 2015 USD ($)	Mar. 31, 2014 USD ($)	Mar. 31, 2015 USD ($)	Mar. 31, 2014 USD ($)	Jun. 30, 2014 USD ($)		Jun. 30, 2013 USD ($)	Mar. 16, 2015 Stealth.com [Member] USD ($)	Mar. 16, 2015 Stealth.com [Member] CAD	Mar. 16, 2015 Stealth.com [Member] USD ($)	Jan. 21, 2015 KEP Marine Inc. [Member] USD ($)	Jan. 21, 2015 KEP Marine Inc. [Member] USD ($)	Jan. 20, 2015 Real-Time Enterprises [Member] USD ($)	Jan. 20, 2015 Real-Time Enterprises [Member] USD ($)	Dec. 08, 2014 Argotec, Inc. [Member] USD ($)	Dec. 08, 2014 Argotec, Inc. [Member] USD ($)	Dec. 03, 2014 Industrial Electronic Devices, Inc. [Member] USD ($)	Dec. 03, 2014 Industrial Electronic Devices, Inc. [Member] USD ($)	Jul. 09, 2014 Electronic Manufacturing Technology LLC [Member] USD ($)	Mar. 31, 2015 Electronic Manufacturing Technology LLC [Member] USD ($)	Mar. 31, 2015 Electronic Manufacturing Technology LLC [Member] USD ($)	Jul. 09, 2014 Electronic Manufacturing Technology LLC [Member] USD ($)	Mar. 17, 2014 Aubrey Group, Inc. [Member] USD ($)	Dec. 11, 2013 Beckwood Services Inc. [Member] USD ($)	Dec. 11, 2013 Beckwood Services Inc. [Member] USD ($)	Aug. 30, 2013 Aydin Displays, LLC [Member] USD ($)	Aug. 30, 2013 Aydin Displays, LLC [Member] USD ($)	Aug. 30, 2013 Aydin Displays, LLC [Member] Accounts Receivable [Member] USD ($)	Mar. 31, 2015 Selling, General and Administrative Expenses [Member] Stealth.com [Member] USD ($)	Mar. 31, 2015 Selling, General and Administrative Expenses [Member] Stealth.com [Member] USD ($)	Mar. 31, 2015 Selling, General and Administrative Expenses [Member] KEP Marine Inc. [Member] USD ($)	Mar. 31, 2015 Selling, General and Administrative Expenses [Member] KEP Marine Inc. [Member] USD ($)	Mar. 31, 2015 Selling, General and Administrative Expenses [Member] Real-Time Enterprises [Member] USD ($)	Mar. 31, 2015 Selling, General and Administrative Expenses [Member] Real-Time Enterprises [Member] USD ($)	Mar. 31, 2015 Selling, General and Administrative Expenses [Member] Argotec, Inc. [Member] USD ($)	Mar. 31, 2015 Selling, General and Administrative Expenses [Member] Argotec, Inc. [Member] USD ($)	Mar. 31, 2015 Selling, General and Administrative Expenses [Member] Industrial Electronic Devices, Inc. [Member] USD ($)	Mar. 31, 2015 Selling, General and Administrative Expenses [Member] Industrial Electronic Devices, Inc. [Member] USD ($)	Mar. 31, 2015 Selling, General and Administrative Expenses [Member] Electronic Manufacturing Technology LLC [Member] USD ($)	Mar. 31, 2015 Selling, General and Administrative Expenses [Member] Electronic Manufacturing Technology LLC [Member] USD ($)	Mar. 31, 2015 Customer relationships [Member] Electronic Manufacturing Technology LLC [Member]	Mar. 31, 2015 Non-compete agreements [Member] Electronic Manufacturing Technology LLC [Member]	Jun. 30, 2014 Trademarks and Trade Names [Member]	Mar. 31, 2015 Trademarks and Trade Names [Member] Electronic Manufacturing Technology LLC [Member]	Jan. 20, 2015 Maximum [Member] Real-Time Enterprises [Member] USD ($)	Mar. 31, 2015 Maximum [Member] Customer relationships [Member]	Jun. 30, 2014 Maximum [Member] Customer relationships [Member]	Mar. 31, 2015 Maximum [Member] Non-compete agreements [Member]	Jun. 30, 2014 Maximum [Member] Non-compete agreements [Member]	Mar. 31, 2015 Maximum [Member] Trademarks and Trade Names [Member]
Business Acquisition [Line Items]
Revenues								$ 8,000,000			$ 3,000,000		$ 4,000,000				$ 3,000,000
Closing purchase consideration								12,600,000	16,000,000		4,300,000		2,300,000		400,000		3,300,000		20,000,000				5,000,000	15,300,000
Escrow cash										1,900,000								500,000				2,400,000			1,500,000		1,200,000
Contingent consideration														400,000																															800,000
Goodwill	54,688,000		54,688,000		28,189,000	[1]	14,767,000			12,100,000		2,800,000		2,500,000		200,000		2,000,000				6,959,000
Sale holdback requirement																		300,000
Acquisition related costs																													200,000	200,000	100,000	100,000	100,000	100,000	100,000	100,000	100,000	200,000	100,000	700,000
Post closing adjustment																			1,500,000
Net sales	95,019,000	97,656,000	267,932,000	294,888,000															25,000,000
Amortization period																																									10 years	5 years	120 months	1 year		180 months	180 months	60 months	60 months	120 months
Net sales	93,065,000	83,983,000	255,732,000	243,001,000																5,500,000	18,600,000
Income (loss) before provision for income taxes	4,451,000	6,260,000	7,011,000	14,873,000																500,000	2,100,000
Accounts receivable recognized in relation to post closing income tax adjustment																							200,000
Estimated additional consideration payable for post closing working capital adjustment																			(469,000)				600,000
Total purchase consideration																			22,069,000							15,500,000
Accounts receivable, net																						$ 4,444,000						$ 500,000

[1] Derived from the Company’s audited financial statements as of June 30, 2014.

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Stock-Based Compensation - Additional Information (Detail) (USD $) In Millions, except Share data, unless otherwise specified	9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of long term incentive plans	2
Weighted Average Remaining Contractural Life (in years)	9 years 1 month 13 days
Options granted in period intrinsic value (in dollars per share)	93,805
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Intrinsic value of options exercised	$ 0.1	$ 0.2
2001 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, description	Under the 2001 Plan, the Company may grant to employees and non-employee directors incentive and non-qualified stock options, stock appreciation rights, restricted stock and other stock-based awards.
Contractual terms	under the 2001 Plan have either three, five or ten-year lives with either immediate vesting or vesting on an annual basis over four years beginning one year after grant date.
Vesting period	4 years
Expiration date	Oct. 24, 2011
Shares authorized (in shares)	970,161
2001 Plan [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	2 years 6 months
2001 Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
2010 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, description	Under the 2010 Plan, the Company may grant to employees, officers and directors of the Company or its subsidiaries incentive and non-qualified stock options, stock appreciation rights, restricted stock or restricted stock units, performance awards and other stock-based awards, including grants of shares.
Contractual terms	2010 Plan vest annually over four years, in some cases subject to achievement of certain financial performance metrics in addition to the service requirements.
Vesting period	4 years
Shares authorized (in shares)	1,000,000
Weighted Average Remaining Contractural Life (in years)	10 years
Shares available for award (in shares)	487,619
Total fair value of restricted stock vested	$ 4.3	$ 1.6
Expiration Period One [Member] | 2001 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period	3 years
Expiration Period Two [Member] | 2001 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period	5 years
Expiration Period Three [Member] | 2001 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period	10 years
Management [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted in period intrinsic value (in dollars per share)	93,805
Options granted in period (in shares)	$ 26.74
Fair value expense of stock option awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%

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Stock Repurchase Plan

9 Months Ended

Mar. 31, 2015

Equity [Abstract]

Stock Repurchase Plan

Stock Repurchase Plans

On October 22, 2014, the Company’s Board of Directors approved a repurchase by the Company of up to $5.0 million of shares of its common stock. The Company was authorized to purchase shares from time to time in open market, block transactions and privately negotiated transactions. The stock repurchase program did not require the Company to repurchase any specific number of shares. Pursuant to this stock repurchase program, during the nine months ended March 31, 2015, the Company purchased 181,278 shares of its common stock at an average price of $27.55 per share for approximately $5.0 million. Shares purchased under the plan were canceled upon repurchase. As of March 31, 2015, all authorized funds under the stock repurchase program were expended.

On May 1, 2013, the Company’s Board of Directors approved a repurchase by the Company of up to $3.0 million of shares of its common stock over a 12-month period. The Company was authorized to purchase shares from time to time in open market, block transactions and privately negotiated transactions at prices deemed appropriate by management, depending on market conditions, applicable laws and other factors. The stock repurchase program did not require the Company to repurchase any specific number of shares and can be modified, extended or terminated by the Board of Directors at any time. Pursuant to this stock repurchase program, during the three months ended September 30, 2013, the Company purchased 47,119 shares of its common stock at an average price of $18.51 per share for approximately $0.9 million. Previously, during the year ended June 30, 2013, the Company purchased 128,158 shares of its common stock at an average price of $16.55 per share for approximately $2.1 million. Total shares purchased pursuant to this stock repurchase program total 175,277 at an average price of $17.08. Shares purchased under the plan were cancelled upon repurchase. As of June 30, 2014, all authorized funds under the stock repurchase program were expended.

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Inventories and Cost of Contracts in Progress (Tables)

9 Months Ended

Mar. 31, 2015

Inventory Disclosure [Abstract]

Classifications of Inventory, Net of Interim Billings

The following are the major classifications of inventory, net of interim billings, at March 31, 2015 and June 30, 2014 (in thousands):

	March 31, 2015			June 30, 2014
Raw materials	$	40,830		$	40,535
Work in process	15,337			10,609
Finished goods	15,903			10,188
Total inventory and cost of contracts in progress, gross	72,070			61,332
Inventory to which the U.S. government has title due to interim billings	(7,730		)	(7,960		)
Total inventory and cost of contracts in progress, net	$	64,340		$	53,372

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Defined Benefit Pension Plan - Components of Net Periodic Pension Expense (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Compensation and Retirement Disclosure [Abstract]
Service cost	$ 0	$ 0	$ 0	$ 0
Interest cost	82	89	245	266
Expected return on plan assets	(140)	(131)	(420)	(393)
Amortization of prior service cost	0	0	0	0
Amortization of unrecognized net actuarial loss	20	32	60	96
Net pension income	(38)	(10)	(115)	(31)
Pro rata recognition of lump-sum settlements	0	0	0	0
Total pension income	$ (38)	$ (10)	$ (115)	$ (31)

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Goodwill and Other Intangible Assets - Summary of Intangible Assets, Net (Detail) (USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended
	Mar. 31, 2015	Jun. 30, 2014
Goodwill [Line Items]
Gross Carrying Amount	$ 41,145	$ 31,120
Accumulated Amortization	(12,099)	(7,416)
Accumulated Impairments	(3,663)	(3,663)
Net Carrying Value	25,383	20,041
Non-compete agreements [Member]
Goodwill [Line Items]
Gross Carrying Amount	3,715	420
Accumulated Amortization	(879)	(46)
Accumulated Impairments	0	0
Net Carrying Value	2,836	374
Customer relationships [Member]
Goodwill [Line Items]
Gross Carrying Amount	36,520	29,870
Accumulated Amortization	(10,894)	(7,220)
Accumulated Impairments	(3,663)	(3,663)
Net Carrying Value	21,963	18,987
Trademarks/Tradenames [Member]
Goodwill [Line Items]
Amortization period		120 months
Gross Carrying Amount	260	180
Accumulated Amortization	(82)	(15)
Accumulated Impairments	0	0
Net Carrying Value	178	165
Unpatented Technology [Member]
Goodwill [Line Items]
Amortization period	84 months	84 months
Gross Carrying Amount	650	650
Accumulated Amortization	(244)	(135)
Accumulated Impairments	0	0
Net Carrying Value	$ 406	$ 515
Minimum [Member] | Non-compete agreements [Member]
Goodwill [Line Items]
Amortization period	24 months	24 months
Minimum [Member] | Customer relationships [Member]
Goodwill [Line Items]
Amortization period	84 months	84 months
Minimum [Member] | Trademarks/Tradenames [Member]
Goodwill [Line Items]
Amortization period	12 months
Maximum [Member] | Non-compete agreements [Member]
Goodwill [Line Items]
Amortization period	60 months	60 months
Maximum [Member] | Customer relationships [Member]
Goodwill [Line Items]
Amortization period	180 months	180 months
Maximum [Member] | Trademarks/Tradenames [Member]
Goodwill [Line Items]
Amortization period	120 months

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 4,133	$ 4,246	$ 5,891	$ 10,016
Other comprehensive income (loss), net of tax:
Amortization of unrecognized net actuarial loss, net of tax benefit of $12 and $11 for the three months ended March 31, 2015 and 2014, respectively, and net of tax benefit of $27 and $34 for the nine months ended March 31, 2015 and 2014, respectively	8	21	33	62
Unrecognized loss on marketable equity securities, net of tax benefit of $68 and $0 for the three months ended March 31, 2015 and 2014, respectively, and net of tax benefit of $102 and $0 for the nine months ended March 31, 2015 and 2014, respectively	(111)	0	(169)	0
Other comprehensive (loss) income, net of tax	(103)	21	(136)	62
Comprehensive income	$ 4,030	$ 4,267	$ 5,755	$ 10,078

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Acquisitions

9 Months Ended

Mar. 31, 2015

Business Combinations [Abstract]

Acquisitions

Acquisitions

Fiscal Year 2015

Stealth.com — On March 16, 2015, the Company completed the acquisition of substantially all of the assets of Stealth.com ("Stealth"), an $8 million USD annual revenue business, located in Woodbridge, ON, Canada in a $16.0 CAD ($12.6 USD) million all-cash transaction. The transaction includes a $1.9 million CAD escrowed holdback which is available to fund any potential post-closing working capital adjustment and potential seller indemnification obligations in relation to the acquisition agreement. The acquired business, which is part of the Company's ECP segment, is a supplier of high performance ruggedized industrial grade computer systems and peripherals that include Mini PC/Small Form Factor Computers, Rackmount Server PCs, Rugged Industrial LCD Monitors, Rugged Portable PCs, Industrial Grade Keyboards and Rugged Trackballs and Mice. The initial accounting for this acquisition is not complete pending detailed analyses of the facts and circumstances that existed as of the acquisition date.

The Stealth acquisition has preliminarily resulted in approximately $12.1 million of goodwill, which is expected to be deductible for tax purposes and has been assigned entirely to the Company’s ECP segment. The Company believes goodwill primarily relates to strategic fit.

The Company incurred legal, professional and other costs related to this acquisition aggregating approximately $0.2 million for the three and nine months ended March 31, 2015. These costs were recognized as selling and administrative expenses and reflected as non-segment corporate and other unallocated costs.

KEP Marine — On January 21, 2015, the Company completed the acquisition of certain assets of KEP Marine, a $3 million annual revenue business and division of Kessler-Ellis Products, located in Eatontown, NJ, in a $4.3 million all-cash transaction. The acquired business, which is part of the Company's ECP segment, designs and manufactures industrial displays, industrial computers and HMI software for the Marine market. These product lines will be consolidated into the Aydin Displays facility, located in Birdsboro, PA. The initial accounting for this acquisition is not complete pending detailed analyses of the facts and circumstances that existed as of the acquisition date.

The KEP Marine acquisition has preliminarily resulted in approximately $2.8 million of goodwill, which is expected to be deductible for tax purposes and has been assigned entirely to the Company’s ECP segment. The Company believes goodwill primarily relates to strategic fit.

The Company incurred legal, professional and other costs related to this acquisition aggregating approximately $0.1 million for the three and nine months ended March 31, 2015. These costs were recognized as selling and administrative expenses and reflected as non-segment corporate and other unallocated costs.

Real-Time Enterprises, Inc. — On January 20, 2015, the Company completed the acquisition of Real-Time Enterprises, Inc. ("RTEmd"), a $4 million annual revenue business, located in Pittsford, NY, in a $2.3 million all-cash transaction. Additional consideration of up to $0.8 million is contingent upon RTEmd attaining certain performance thresholds during the twelve month period following the transaction. RTEmd will continue to service its current and future customers out of its Pittsford, NY location. The acquired business, which is part of the Company's MDS segment, is a leading developer of embedded software to operate medical devices and diagnostic equipment through a disciplined approach to product development and quality/regulatory services with specific product experience such as patient monitoring, medical imaging, in-vitro diagnostics, electro-medical systems, surgical applications, ophthalmology, nephrology, infusion pumps and medical imaging. The initial accounting for this acquisition is not complete pending detailed analyses of the facts and circumstances that existed as of the acquisition date. The Company has recorded a $0.4 million liability in relation to the purchase date estimated fair value of the additional contingent consideration for this acquisition. The Company estimated the fair value of the contingent consideration using an income approach, which is based on significant inputs, primarily forecasted future operating results of the acquired businesses, not observable in the market and thus representing a Level 3 measurement as defined in ASC 820. The Company adjusts the fair value of contingent consideration through operating expenses if there are changes to the inputs used in the income approach and as a result of the passage of time.

The RTEmd acquisition has preliminarily resulted in approximately $2.5 million of goodwill, which is expected to be deductible for tax purposes and has been assigned entirely to the Company’s MDS segment. The Company believes goodwill primarily relates to strategic fit.

The Company incurred legal, professional and other costs related to this acquisition aggregating approximately $0.1 million for the three and nine months ended March 31, 2015. These costs were recognized as selling and administrative expenses and reflected as non-segment corporate and other unallocated costs.

Argotec, Inc. — On December 8, 2014, the Company completed the acquisition of certain assets of Argotec, Inc. ("Argotec"), located in Longwood, FL in a $0.4 million all-cash transaction. Historical revenues of this business are not material. The acquired business, which is part of the Company's ECP segment, is engaged in developing and manufacturing sonar transducer products and components for the U.S. Navy and also provides aftermarket servicing. These products have been consolidated into the Company's DeLeon Springs, FL location.

The Argotec acquisition has resulted in approximately $0.2 million of goodwill, which is expected to be deductible for tax purposes and has been assigned entirely to the Company’s ECP segment. The Company believes goodwill primarily relates to strategic fit.

The Company incurred legal, professional and other costs related to this acquisition aggregating less than $0.1 million for the three and nine months ended March 31, 2015. These costs were recognized as selling and administrative expenses and reflected as non-segment corporate and other unallocated costs.

Industrial Electronic Devices, Inc. — On December 3, 2014, the Company completed the acquisition of certain assets of Industrial Electronic Devices, Inc. ("IED"), a $3.0 million annual revenue business, located in Flemington, NJ in a $3.3 million all-cash transaction, of which approximately $0.3 million remains payable in relation to a New Jersey state bulk sale holdback requirement. The transaction includes a $0.5 million escrowed holdback which is available to fund any potential seller indemnification obligations in relation to the acquisition agreement. The acquired business, which is part of the Company's ECP segment, designs and manufactures a full line of ruggedized displays for the Industrial and Marine markets. IED's catalog spans over 600 standard, semi-custom and custom configurations, incorporating some of the most advanced flat panel displays and touch screen technology available. These product lines will be consolidated into the Aydin Displays facility, located in Birdsboro, PA.

The IED acquisition has resulted in approximately $2.0 million of goodwill, which is expected to be deductible for tax purposes and has been assigned entirely to the Company’s ECP segment. The Company believes goodwill primarily relates to strategic fit.

The Company incurred legal, professional and other costs related to this acquisition aggregating less than $0.1 million and approximately $0.2 million for the three and nine months ended March 31, 2015, respectively. These costs were recognized as selling and administrative expenses and reflected as non-segment corporate and other unallocated costs.

Electronic Manufacturing Technology, LLC — On July 9, 2014, the Company completed the acquisition of Electronic Manufacturing Technology, LLC (“eMT”), located in Irvine, CA. The purchase price of $22.1 million, which included $1.5 million of acquired cash, is subject to certain post-closing adjustments and was financed through the use of borrowings under the Company's Credit Facility. The transaction includes a $2.4 million escrowed holdback which is available to fund any potential post-closing working capital adjustment and potential seller indemnification obligations in relation to the acquisition agreement.

The acquired business, which is part of the Company's MDS segment and which is expected to add $25 million (unaudited) in annualized revenue, is engaged in the contract services business of manufacturing electromechanical controls and electronic assemblies. Their customer profile includes international Fortune 1000 manufacturers of highly reliable industrial excimer laser products, laser eye surgery sub-assemblies, target simulators for space and aviation systems, power modules for computerized tomography products, test systems for commercial aerospace OEMs and toll road antennas and control boxes.

The Company is in the process of reviewing the preliminary valuations of certain working capital items. The following table represents the preliminary allocation of the total consideration to assets acquired and liabilities assumed in the acquisition of eMT based on Sparton’s preliminary estimate of their respective fair values at the acquisition date (in thousands):

Total purchase consideration:
Cash	$	20,000
Additional cash consideration for post closing working capital adjustment	1,600
Estimated additional consideration payable in relation to post closing income tax adjustment	469
Total purchase consideration	$	22,069
Assets acquired and liabilities assumed:
Cash	$	1,505
Accounts receivable, net	4,444
Inventory	4,090
Other current assets	26
Property, plant and equipment	584
Customer relationships	5,950
Non-compete agreements	2,730
Tradenames	80
Goodwill	6,959
Other long term assets	30
Accounts payable	(3,636		)
Other current liabilities	(693		)
Total assets acquired and liabilities assumed	$	22,069

The eMT acquisition has resulted in approximately $7.0 million of goodwill, which is expected to be deductible for tax purposes and has been assigned entirely to the Company’s MDS segment. The Company believes goodwill primarily relates to strategic fit, resulting synergies and the acquired workforce that this business brings to existing operations. The fair values of acquired identifiable intangible assets have been determined to be Level 3 under the fair value hierarchy and have been estimated based on projected future cash flows and customer attrition rates, discounted using an estimated weighted average cost of capital. The customer relationships are being amortized using an accelerated methodology over ten years. The non-compete agreements are being amortized using a straight-line methodology over five years. Trade names and trademarks are being amortized using a straight-line methodology over one year.

Included in the Company’s Condensed Consolidated Statements of Income for the three and nine months ended March 31, 2015 are net sales of approximately $5.5 million and $18.6 million, respectively, and income before provision for income taxes of approximately $0.5 million and $2.1 million, since the July 9, 2014 acquisition of eMT.

The Company incurred legal, professional and other costs related to this acquisition aggregating approximately $0.1 million and approximately $0.7 million for the three and nine months ended March 31, 2015, respectively. These costs were recognized as selling and administrative expenses and reflected as non-segment corporate and other unallocated costs.

Fiscal Year 2014

Aubrey Group, Inc. — On March 17, 2014, the Company completed the acquisition of Aubrey Group, Inc. ("Aubrey”), located in Irvine, CA, in a $5.0 million all-cash transaction after settlement of an approximate $0.2 million post-closing working capital adjustment during the first quarter of fiscal 2015. Additional consideration of approximately $0.6 million was paid at closing for cash of the business in excess of net customer deposits held by Aubrey. The transaction was financed through the use of borrowings under the Company's Credit Facility.

The acquired business, a design and manufacturing company, which is part of the MDS segment, develops new products for OEMs in the Medical and Biotechnological markets. Inventors, entrepreneurs and industry leading OEMs utilize Aubrey's design and engineering teams to develop innovative solutions in a timely manner, delivering its clients' new products into the marketplace faster and more cost effectively.

Beckwood Services, Inc. — On December 11, 2013, the Company completed the acquisition of Beckwood Services, Inc. ("Beckwood”), located in Plaistow, NH, in a $15.3 million all-cash transaction financed through the use of cash on hand and borrowings under the Company's Credit Facility. The transaction includes an approximate $1.5 million escrowed holdback which is available to fund potential seller indemnification obligations in relation to the acquisition agreement.

The acquired business, which is part of the Company's MDS segment, develops electronic or electro-mechanical controls and electronic assemblies. Their customer profile includes international Fortune 1000 manufacturers of industrial control systems, analytical instruments, measuring and detecting equipment and military, defense and Homeland Security equipment.

Aydin Displays, Inc. — On August 30, 2013, the Company completed the acquisition of certain assets and liabilities of Aydin Displays, Inc. ("Aydin Displays" or “Aydin”), located in Birdsboro, PA, in a $15.5 million all-cash transaction, after settlement of a $0.5 million working capital adjustment during the third quarter of the Company's fiscal 2014 year. The transaction was financed through the use of borrowings under the Company's Credit Facility. The transaction includes an approximate $1.2 million escrowed holdback which is available to fund potential seller indemnification obligations in relation to the acquisition agreement.

The acquired business, which is part of the Company's ECP segment, develops enhanced flat panel display and touch-screen solutions with application-critical performance criteria including ruggedization, high resolution, color accuracy, response/refresh times, sunlight readability and other criteria such as magnetic interference and emanations security for the Military & Aerospace and Civil Marine markets. These products are currently specified in the U.S. Navy P8A Poseidon ASW aircraft behind-the-cockpit control center, the command and control centers of many U.S. Navy ships, Federal Aviation Administration air traffic control systems and cockpit command centers for various civil marine applications. The acquired business will continue to operate as Aydin Displays.

Pro Forma Results — The following table summarizes, on a pro forma basis, the combined results of operations of the Company and the acquired businesses of eMT, IED, Argotec, RTEmd, KEP and Stealth as though the acquisitions had occurred as of July 1, 2013 and Aydin, Beckwood and Aubrey as though the acquisitions had occurred as of July 1, 2012. The pro forma amounts presented are not necessarily indicative of either the actual consolidated results had the acquisition occurred as of July 1, 2013 and 2012, respectively, or of future consolidated operating results (in thousands, except per share amounts).

	For the Three Months Ended				For the Nine Months Ended
	March 31, 2015		March 31, 2014		March 31, 2015		March 31, 2014
Net sales	$	95,019	$	97,656	$	267,932	$	294,888
Income before provision for income taxes	5,147		8,102		9,952		18,513
Net income	4,829		6,209		8,689		14,101
Net income per share — basic	0.49		0.61		0.88		1.40
Net income per share — diluted	0.49		0.61		0.88		1.39

Pro forma results presented above primarily reflect: (1) incremental depreciation relating to fair value adjustments to property, plant and equipment; (2) amortization adjustments relating to fair value estimates of intangible assets; (3) elimination of interest expense relating to debt paid off in conjunction with the transaction; (4) incremental interest expense on assumed indebtedness and amortization of capitalized financing costs incurred in connection with the transactions; and (5) additional cost of goods sold relating to the capitalization of gross profit recognized in the year of acquisition as part of purchase accounting recognized for purposes of the pro forma as if it was recognized during the preceding year. Pro forma adjustments described above have been tax effected using Sparton's effective rate during the respective periods.

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Earnings Per Share Data (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Earnings Per Share [Abstract]
Net income	$ 4,133	$ 4,246	$ 5,891	$ 10,016
Less net income allocated to contingently issuable participating securities	(59)	0	(85)	0
Net income available to common shareholders	$ 4,074	$ 4,246	$ 5,806	$ 10,016
Weighted average shares outstanding – Basic (in shares)	9,764,838	10,124,587	9,874,185	10,104,029
Dilutive effect of stock options (in shares)	4,537	25,666	14,720	23,782
Weighted average shares outstanding – Diluted (in shares)	9,769,375	10,150,253	9,888,905	10,127,811
Net income available to common shareholders per share:
Net income per share: Basic (in dollars per share)	$ 0.42	$ 0.42	$ 0.59	$ 0.99
Net income per share: Diluted (in dollars per share)	$ 0.42	$ 0.42	$ 0.59	$ 0.99

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Property, Plant and Equipment, Net (Tables)

9 Months Ended

Mar. 31, 2015

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment, Net

Property, plant and equipment, net consists of the following at March 31, 2015 and June 30, 2014 (in thousands):

	March 31, 2015			June 30, 2014
Land and land improvements	$	1,429		$	1,429
Buildings and building improvements	26,107			25,779
Machinery and equipment	32,523			29,480
Construction in progress	3,152			1,893
Total property, plant and equipment	63,211			58,581
Less accumulated depreciation	(33,434		)	(30,058		)
Total property, plant and equipment, net	$	29,777		$	28,523

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Inventories and Cost of Contracts in Progress - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Inventory Disclosure [Abstract]
Inventory write-downs	$ 0.1	$ 0.1	$ 0.3	$ 0.3

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Earnings Per Share Data

9 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Earnings Per Share Data

Earnings Per Share Data

The Company calculates basic net income available to common shareholders per share by dividing net income available to common shareholders by the weighted-average number of common shares and participating securities outstanding during the period. Diluted net income available to common shareholders per share takes into account the dilutive effect of additional potential common shares issued or issuable under our stock-based compensation plans and are determined using the treasury stock method. Unvested participating restricted shares, which contain non-forfeitable rights to dividends whether paid or unpaid, are included in the number of shares outstanding for both basic and diluted earnings per share calculations. Unvested contingently issuable participating restricted shares are excluded from basic earnings per share. In the event of a net loss, all unvested participating restricted stock awards are excluded from the calculation of both basic and diluted loss per share.

Earnings per share calculations, including net income available to common shareholders and weighted average number of shares of common stock outstanding used in calculating basic and diluted income per share, for the three and nine months ended March 31, 2015 and 2014 are as follows:

	For the Three Months Ended					For the Nine Months Ended
	March 31, 2015			March 31, 2014		March 31, 2015			March 31, 2014
Numerator (in thousands):
Net income	$	4,133		$	4,246	$	5,891		$	10,016
Less net income allocated to contingently issuable participating securities	(59		)	—		(85		)	—
Net income available to common shareholders	$	4,074		$	4,246	$	5,806		$	10,016
Weighted average shares outstanding – Basic	9,764,838			10,124,587		9,874,185			10,104,029
Dilutive effect of stock options	4,537			25,666		14,720			23,782
Weighted average shares outstanding – Diluted	9,769,375			10,150,253		9,888,905			10,127,811
Net income available to common shareholders per share:
Basic	$	0.42		$	0.42	$	0.59		$	0.99
Diluted	$	0.42		$	0.42	$	0.59		$	0.99

For the three months ended March 31, 2015 and 2014, there were no unvested participating restricted shares included in determining both basic and diluted earnings per share. For the nine months ended March 31, 2015 and 2014, 175,666 and 316,997, respectively, of unvested participating restricted shares were included in determining both basic and diluted earnings per share. Potential common shares excluded from the calculation of diluted net income per share because they were either contingently issuable or their inclusion would be anti-dilutive were 306,009 for each of the three and nine months ended March 31, 2015. No potential shares of common stock were excluded from diluted income per share computations for the three and nine months ended March 31, 2014.