Organization and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jun. 27, 2021

Schedule of Quantification of Outstanding Mexican Peso Forward Contracts

The following table quantifies the outstanding Mexican peso forward contracts as of June 27, 2021 (thousands of dollars, except with respect to the average forward contractual exchange rate):

	Effective Dates	Notional Amount		Average Forward Contractual Exchange Rate		Fair Value
Buy MXP/Sell USD	July 13, 2021 - June 14, 2022	$	15,000		20.71	$	243

Fair Market Value of All Outstanding Peso Forward Contracts

The fair market value of all outstanding Mexican peso forward contracts in the accompanying Consolidated Balance Sheets was as follows (thousands of dollars):

	June 27, 2021		June 28, 2020
Not designated as hedging instruments:
Other current assets:
Mexican peso forward contracts	$	243	$	—
Other current liabilities:
Mexican peso forward contracts	$	—	$	480

Pre-Tax Effects of the Peso Forward Contracts

The pre-tax effects of the Mexican peso forward contracts on the accompanying Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) Income consisted of the following (thousands of dollars):

	Other (Expense) Income, net
	Years Ended
	June 27, 2021		June 28, 2020
Not Designated as Hedging Instruments:
Realized gain (loss)	$	164	$	(418	)
Unrealized gain (loss)	$	723	$	(480	)

Summary of Financial Assets and Liabilities at Fair Value on Recurring Basis

The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis as of June 27, 2021 and June 28, 2020 (thousands of dollars)

	June 27, 2021								June 28, 2020
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Rabbi Trust assets:
Stock index funds:
Small cap	$	384	$	—	$	—	$	384	$	251	$	—	$	—	$	251
Mid cap		377		—		—		377		284		—		—		284
Large cap		756		—		—		756		563		—		—		563
International		1,104		—		—		1,104		820		—		—		820
Fixed income funds		960		—		—		960		793		—		—		793
Cash and cash equivalents		—		2		—		2		—		224		—		224
Mexican peso forward contracts		—		243		—		243		—		—		—		—
Total assets at fair value	$	3,581	$	245	$	—	$	3,826	$	2,711	$	224	$	—	$	2,935
Liabilities:
Mexican peso forward contracts	$	—	$	—	$	—	$	—	$	—	$	480	$	—	$	480

Inventories

Inventories consisted of the following (thousands of dollars):

	June 27, 2021			June 28, 2020
Finished products	$	20,633		$	13,142
Work in process		14,707			11,815
Purchased materials		40,900			34,333
		76,240			59,290
Excess and obsolete reserve		(5,380	)		(4,890	)
Inventories, net	$	70,860		$	54,400

Activity Related to the Excess and Obsolete Inventory Reserve

The activity related to the excess and obsolete inventory reserve was as follows (thousands of dollars):

	Balance, Beginning of Year		Provision Charged to Expense		Amounts Written Off		Balance, End of Year
Year ended June 27, 2021	$	4,890	$	973	$	483	$	5,380
Year ended June 28, 2020	$	4,225	$	2,178	$	1,513	$	4,890

Property, Plant and Equipment, Useful Lives of Assets

Property, plant and equipment are stated at cost. Property, plant and equipment are depreciated on a straight-line basis over the estimated useful lives of the assets as follows:

Classification	Expected Useful Lives
Land improvements	20 years
Buildings and improvements	15 to 35 years
Machinery and equipment	3 to 15 years

Property, Plant and Equipment

Property, plant and equipment consisted of the following (thousands of dollars):

	June 27, 2021			June 28, 2020
Land and improvements	$	5,963		$	5,002
Buildings and improvements		36,325			33,179
Machinery and equipment		228,141			228,035
		270,429			266,216
Less: accumulated depreciation		(174,028	)		(161,068	)
	$	96,401		$	105,148

Schedule of Depreciation Expenses

Depreciation expense was as follows for the periods indicated (thousands of dollars):

Fiscal Year	Depreciation Expense
2021	$	19,786
2020	$	19,329

Schedule of Operating Lease Asset and Obligation Included in Condensed Consolidated Balance Sheet

The operating lease asset and obligation related to our El Paso warehouse lease included in the accompanying Consolidated Balance Sheets are presented below (thousands of dollars):

	June 27, 2021		June 28, 2020
Right-of-Use Asset Under Operating Lease:
Other Long-Term Assets	$	3,399	$	3,753
Lease Obligation Under Operating Lease:
Current Liabilities: Accrued Liabilities: Other	$	378	$	354
Other Long-Term Liabilities		3,021		3,399
	$	3,399	$	3,753

Schedule of Future Minimum Lease Payments Under Non-Cancelable Lease Including Options to Extend

Future minimum lease payments, by our fiscal year, including options to extend that are reasonably certain to be exercised, under the non-cancelable lease are as follows as of June 27, 2021 (thousands of dollars):

2022	$	484
2023		497
2024		509
2025		522
Thereafter		1,834
Total Future Minimum Lease Payments		3,846
Less: Imputed Interest		(447	)
Total Lease Obligations	$	3,399

Schedule of Cash Flow Information Related to Operating Lease

Cash flow information related to the operating lease is shown below (thousands of dollars):

	Years Ended
	June 27, 2021		June 28, 2020
Operating Cash Flows:
Cash Paid Related to Operating Lease Obligation	$	473	$	461

Schedule of Weighted Average Lease Term and Discount Rate for Operating Lease

The weighted average lease term and discount rate for the El Paso, Texas operating lease are shown below:

	June 27, 2021			June 28, 2020
Weighted Average Remaining Lease Term, (in years)		7.3			8.3
Weighted Average Discount Rate		3.3	%		3.3	%

Inventory Purchase from Major Suppliers

Supplier Concentrations: The following inventory purchases were made from major suppliers during each fiscal year noted

Fiscal Year	Percentage of Inventory Purchases			Number of Suppliers
2021		44	%		8
2020		39	%		7

Summary of Other Income (Expense), Net

The impact of these items for the periods presented was as follows (thousands of dollars):

	Years Ended
	June 27, 2021			June 28, 2020
Foreign currency transaction (loss) gain	$	(2,445	)	$	1,982
Rabbi Trust gain (loss)		865			(2	)
Unrealized gain (loss) on Mexican peso forward contracts		723			(480	)
Realized gain (loss) on Mexican peso forward contracts		164			(418	)
Pension and postretirement plans cost		(483	)		(469	)
Other miscellaneous income, net		11			1,055
	$	(1,165	)	$	1,668

Changes in Warranty Reserve

Changes in the warranty reserve were as follows (thousands of dollars):

	Balance, Beginning of Year		Provision Charged to Expense		Payments		Balance, End of Year
Year ended June 27, 2021	$	8,500	$	373	$	448	$	8,425
Year ended June 28, 2020	$	7,900	$	823	$	223	$	8,500

Summary of Changes in Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss (“AOCL”): The following tables summarize the changes in AOCL for the years ended June 27, 2021 and June 28, 2020 (thousands of dollars): 

	Year Ended June 27, 2021
	Foreign Currency Translation Adjustments			Retirement and Postretirement Plans			Total
Balance June 28, 2020	$	20,136		$	1,977		$	22,113
Other comprehensive loss before reclassifications		(6,924	)		540			(6,384	)
Income Tax		(220	)		(128	)		(348	)
Net other comprehensive loss before    Reclassifications		(7,144	)		412			(6,732	)
Reclassifications:
Prior service credits (A)		—			8			8
Actuarial losses (A)		—			(369	)		(369	)
Total reclassifications before tax		—			(361	)		(361	)
Income Tax		—			84			84
Net reclassifications		—			(277	)		(277	)
Other comprehensive loss		(7,144	)		135			(7,009	)
Other comprehensive loss attributable
to non-controlling interest		(1,693	)		—			(1,693	)
Balance June 27, 2021	$	14,685		$	2,112		$	16,797

	Year Ended June 28, 2020
	Foreign Currency Translation Adjustments			Retirement and Postretirement Plans			Total
Balance June 30, 2019	$	16,317		$	2,251		$	18,568
Other comprehensive loss before reclassifications		6,153			25			6,178
Income Tax		(357	)		(6	)		(363	)
Net other comprehensive loss before    Reclassifications		5,796			19			5,815
Reclassifications:
Prior service credits (A)		—			29			29
Actuarial losses (A)		—			(412	)		(412	)
Total reclassifications before tax		—			(383	)		(383	)
Income Tax		—			90			90
Net reclassifications		—			(293	)		(293	)
Other comprehensive loss		5,796			(274	)		5,522
Other comprehensive loss attributable
to non-controlling interest		1,977			—			1,977
Balance June 28, 2020	$	20,136		$	1,977		$	22,113

(A) Amounts reclassified are included in the computation of net periodic benefit cost, which is included in Other (Expense) Income, net in the accompanying Consolidated Statements of Income (Loss) and Comprehensive Income (Loss). See Retirement Plans and Postretirement Costs note to these Notes to Financial Statements below.

Schedule of Unrecognized Compensation Cost

Unrecognized compensation cost as of June 27, 2021 related to restricted stock granted under the plan was as follows (thousands of dollars):

	Compensation Cost		Weighted Average Period over which Cost is to be Recognized (in years)
Restricted stock granted	$	822		0.9

Cash Received from Stock Option Exercises and Related Income Tax Benefit

Cash received from stock option exercises and the related income tax benefit were as follows (thousands of dollars):

Fiscal Year	Cash Received from Stock Option Exercises		Income Tax Benefit
2021	$	526	$	130
2020	$	477	$	28

Intrinsic Value of Stock Options Exercised and Fair Value Of Stock Options Vested

The intrinsic value of stock options exercised and the fair value of options vested were as follows (thousands of dollars):

	Years Ended
	June 27, 2021		June 28, 2020
Intrinsic value of options exercised	$	555	$	120
Fair value of stock options vested	$	—	$	—

Range of Options Outstanding

The range of options outstanding as of June 27, 2021 was as follows

	Number of Options Outstanding and Exercisable	Weighted Average Exercise Price Outstanding and Exercisable	Weighted Average Remaining Contractual Life Outstanding (In Years)
$26.53-$25.64	35,703	$26.20	0.51
$38.71	27,911	$38.71	2.15
$79.73	9,010	$79.73	3.14
	72,624	$37.65

MEXICO

Property, Plant and Equipment

The gross and net book value of property, plant and equipment located outside of the United States, primarily in Mexico, were as follows (thousands of dollars):

	June 27, 2021		June 28, 2020
Gross book value	$	154,371	$	146,690
Net book value	$	67,348	$	71,369