Organization and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jul. 03, 2022

Schedule of Quantification of Outstanding Mexican Peso Forward Contracts

The following table quantifies the outstanding Mexican peso forward contracts as of July 3, 2022 (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 19, 2022 - June 13, 2023	$	9,000		22.42	$	627

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):

	July 3, 2022		June 27, 2021
Not designated as hedging instruments:
Other current assets:
Mexican peso forward contracts	$	627	$	243

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 and Comprehensive Income consisted of the following (thousands of dollars):

	Other Income (Expense), net
	Years Ended
	July 3, 2022			June 27, 2021
Not Designated as Hedging Instruments:
Realized gain	$	434		$	164
Realized (loss)	$	(73	)	$	—
Unrealized gain	$	384		$	723

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 July 3, 2022 and June 27, 2021 (thousands of dollars)

	July 3, 2022								June 27, 2021
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Rabbi Trust assets:
Stock index funds:
Small cap	$	142	$	—	$	—	$	142	$	384	$	—	$	—	$	384
Mid cap		291		—		—		291		377		—		—		377
Large cap		416		—		—		416		756		—		—		756
International		447		—		—		447		1,104		—		—		1,104
Fixed income funds		1,023		—		—		1,023		960		—		—		960
Cash and cash equivalents		—		961		—		961		—		2		—		2
Mexican peso forward contracts		—		627		—		627		—		243		—		243
Total assets at fair value	$	2,319	$	1,588	$	—	$	3,907	$	3,581	$	245	$	—	$	3,826

Inventories

Inventories consisted of the following (thousands of dollars):

	July 3, 2022			June 27, 2021
Finished products	$	19,499		$	20,633
Work in process		18,263			14,707
Purchased materials		48,209			40,900
		85,971			76,240
Excess and obsolete reserve		(5,489	)		(5,380	)
Inventories, net	$	80,482		$	70,860

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 July 3, 2022	$	5,380	$	962	$	853	$	5,489
Year ended June 27, 2021	$	4,890	$	973	$	483	$	5,380

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):

	July 3, 2022			June 27, 2021
Land and improvements	$	6,041		$	5,963
Buildings and improvements		37,158			36,325
Machinery and equipment		235,050			228,141
		278,249			270,429
Less: accumulated depreciation		(186,520	)		(174,028	)
	$	91,729		$	96,401

Schedule of Depreciation Expenses

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

Fiscal Year	Depreciation Expense
2022	$	19,379
2021	$	19,786

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):

	July 3, 2022		June 27, 2021
Right-of-Use Asset Under Operating Lease:
Other Long-Term Assets	$	3,021	$	3,399
Lease Obligation Under Operating Lease:
Current Liabilities: Accrued Liabilities: Other	$	403	$	378
Other Long-Term Liabilities		2,618		3,021
	$	3,021	$	3,399

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 July 3, 2022 (thousands of dollars):

2023	$	497
2024		509
2025		522
2026		535
Thereafter		1,299
Total Future Minimum Lease Payments		3,362
Less: Imputed Interest		(341	)
Total Lease Obligations	$	3,021

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
	July 3, 2022		June 27, 2021
Operating Cash Flows:
Cash Paid Related to Operating Lease Obligation	$	484	$	473

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

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

	July 3, 2022			June 27, 2021
Weighted Average Remaining Lease Term, (in years)		6.3			7.3
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
2022		38	%		6
2021		44	%		8

Summary of Other Income (Expense), Net

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

	Years Ended
	July 3, 2022			June 27, 2021
Foreign currency transaction gain (loss)	$	237		$	(2,445	)
Rabbi Trust Assets (loss) gain		(304	)		865
Unrealized gain on Mexican peso forward contracts		384			723
Realized gain on Mexican peso forward contracts, net		361			164
Pension and postretirement plans cost		(488	)		(483	)
Other		233			11
	$	423		$	(1,165	)

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 July 3, 2022	$	8,425	$	265	$	590	$	8,100
Year ended June 27, 2021	$	8,500	$	373	$	448	$	8,425

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 July 3, 2022 and June 27, 2021 (thousands of dollars): 

	Year Ended July 3, 2022
	Foreign Currency Translation Adjustments		Retirement and Postretirement Plans			Total
Balance June 27, 2021	$	14,685	$	2,112		$	16,797
Other comprehensive loss before reclassifications		1,700		188			1,888
Income Tax		606		(43	)		563
Net other comprehensive loss before    Reclassifications		2,306		145			2,451
Reclassifications:
Actuarial losses (A)		—		(422	)		(422	)
Total reclassifications before tax		—		(422	)		(422	)
Income Tax		—		99			99
Net reclassifications		—		(323	)		(323	)
Other comprehensive loss		2,306		(178	)		2,128
Other comprehensive loss attributable
to non-controlling interest		268		—			268
Balance July 3, 2022	$	16,723	$	1,934		$	18,657

	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 income		(7,144	)		135			(7,009	)
Other comprehensive income attributable
to non-controlling interest		(1,693	)		—			(1,693	)
Balance June 27, 2021	$	14,685		$	2,112		$	16,797

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

Schedule of Unrecognized Compensation Cost

Unrecognized compensation cost as of July 3, 2022 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	$	1,374		1.0

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
2022	$	827	$	74
2021	$	526	$	130

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
	July 3, 2022		June 27, 2021
Intrinsic value of options exercised	$	451	$	555
Fair value of stock options vested	$	—	$	—

Range of Options Outstanding

The range of options outstanding as of July 3, 2022 was as follows

	Number of Options Outstanding and Exercisable		Weighted Average Exercise Price Outstanding and Exercisable		Weighted Average Remaining Contractual Life Outstanding (In Years)
$25.64		4,251	$	25.64	0.13
$38.71		27,911	$	38.71	1.13
$79.73		9,010	$	79.73	2.13
		41,172	$	46.34

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):

	July 3, 2022		June 27, 2021
Gross book value	$	159,909	$	154,371
Net book value	$	64,645	$	67,348