Mercury Systems (MRCY) 10-Q 9 Nov 21 2022 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Oct. 01, 2021	Oct. 31, 2021
Document Documentand Entity Information [Abstract]
Entity Incorporation, State or Country Code	MA
Document Transition Report	false
Document Quarterly Report	true
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Oct. 1, 2021
Entity File Number	0-23599
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Registrant Name	MERCURY SYSTEMS, INC.
City Area Code	978
Local Phone Number	256-1300
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Central Index Key	0001049521
Current Fiscal Year End Date	--07-01
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		56,645,864
Entity Tax Identification Number	04-2741391
Entity Address, Address Line One	50 MINUTEMAN ROAD
Entity Address, Postal Zip Code	01810
Entity Address, City or Town	ANDOVER
Entity Address, State or Province	MA
Entity Small Business	false
Entity Emerging Growth Company	false
Title of 12(g) Security	Common Stock, par value $0.01 per share
Trading Symbol	MRCY
Security Exchange Name	NASDAQ

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 01, 2021	Jul. 02, 2021
Current assets:
Cash and cash equivalents	$ 95,804	$ 113,839
Accounts receivable, net of allowance for credit losses of $1,728 and $1,720 at October 1, 2021 and July 2, 2021, respectively	106,831	128,807
Unbilled receivables and costs in excess of billings	194,367	162,921
Inventory	234,403	221,640
Prepaid income taxes	11,815	782
Prepaid expenses and other current assets	18,465	15,111
Total current assets	661,685	643,100
Property and equipment, net	128,694	128,524
Goodwill	805,315	804,906
Intangible assets, net	297,137	307,559
Operating lease right-of-use assets	67,797	66,373
Other non-current assets	4,466	4,675
Total assets	1,965,094	1,955,137
Current liabilities:
Accounts payable	73,385	47,951
Accrued expenses	30,414	24,652
Accrued compensation	32,890	40,043
Deferred revenues and customer advances	30,635	38,177
Total current liabilities	167,324	150,823
Deferred income taxes	26,717	28,810
Income taxes payable	7,467	7,467
Long-term debt	200,000	200,000
Operating lease liabilities	72,010	71,508
Other non-current liabilities	12,096	12,383
Total liabilities	485,614	470,991
Commitments and contingencies (Note M)
Shareholders' equity:
Preferred stock, $0.01 par value; 1,000,000 shares authorized; no shares issued or outstanding	0	0
Common stock, $0.01 par value; 85,000,000 shares authorized; 55,500,817 and 55,241,120 shares issued and outstanding at October 1, 2021 and July 2, 2021, respectively	555	552
Additional paid-in capital	1,111,613	1,109,434
Retained earnings	367,359	374,499
Accumulated other comprehensive loss	(47)	(339)
Total shareholders’ equity	1,479,480	1,484,146
Total liabilities and shareholders’ equity	$ 1,965,094	$ 1,955,137

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Oct. 01, 2021	Jul. 02, 2021
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 1,728	$ 1,720
Preferred stock, par value (usd per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (shares)	1,000,000	1,000,000
Preferred stock, shares issued (shares)	0	0
Preferred stock, shares outstanding (shares)	0	0
Common stock, par value (usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized (shares)	85,000,000	85,000,000
Common stock, shares issued (shares)	55,500,817	55,241,120
Common stock, shares outstanding (shares)	55,500,817	55,241,120

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Oct. 01, 2021	Oct. 02, 2020
Income Statement [Abstract]
Net revenues	$ 225,013	$ 205,621
Cost of revenues	136,604	117,502
Gross margin	88,409	88,119
Operating expenses:
Selling, general and administrative	36,956	32,904
Research and development	28,882	27,417
Amortization of intangible assets	13,734	7,731
Restructuring and other charges	12,274	1,297
Acquisition costs and other related expenses	2,138	0
Total operating expenses	93,984	69,349
(Loss) income from operations	(5,575)	18,770
Interest income	9	72
Interest expense	(595)	0
Other expense, net	(1,420)	(846)
(Loss) income before income taxes	(7,581)	17,996
Income tax (benefit) provision	(441)	2,198
Net (loss) income	$ (7,140)	$ 15,798
Basic net (loss) earnings per share (in dollars per share)	$ (0.13)	$ 0.29
Diluted net (loss) earnings per share (in dollars per share)	$ (0.13)	$ 0.29
Weighted-average shares outstanding:
Basic (in shares)	55,376	54,883
Diluted (in shares)	55,376	55,339
Comprehensive (loss) income:
Net (loss) income	$ (7,140)	$ 15,798
Foreign currency translation adjustments	244	(101)
Pension benefit plan, net of tax	48	31
Total other comprehensive income (loss), net of tax	292	(70)
Total comprehensive (loss) income	$ (6,848)	$ 15,728

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity Statement - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Jul. 03, 2020		54,702,000
Beginning balance at Jul. 03, 2020	$ 1,384,784	$ 547	$ 1,074,667	$ 312,455	$ (2,885)
Issuance of common stock under employee stock incentive plans (in shares)		344,000
Issuance of common stock under employee stock incentive plans	2	$ 3	(1)
Purchased and retirement of common stock (in shares)		(1,000)
Purchase and retirement of common stock	(66)		(66)
Stock-based compensation	7,444		7,444
Net (loss) income	15,798			15,798
Other comprehensive income (loss)	(70)				(70)
Ending balance (in shares) at Oct. 02, 2020		55,045,000
Ending balance at Oct. 02, 2020	$ 1,407,892	$ 550	1,082,044	328,253	(2,955)
Beginning balance (in shares) at Jul. 02, 2021	55,241,120	55,241,000
Beginning balance at Jul. 02, 2021	$ 1,484,146	$ 552	1,109,434	374,499	(339)
Issuance of common stock under employee stock incentive plans (in shares)		398,000
Issuance of common stock under employee stock incentive plans	0	$ 4	(4)
Purchased and retirement of common stock (in shares)		(138,000)
Purchase and retirement of common stock	(7,316)	$ (1)	(7,315)
Stock-based compensation	9,498		9,498
Net (loss) income	(7,140)			(7,140)
Other comprehensive income (loss)	$ 292				292
Ending balance (in shares) at Oct. 01, 2021	55,500,817	55,501,000
Ending balance at Oct. 01, 2021	$ 1,479,480	$ 555	$ 1,111,613	$ 367,359	$ (47)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Oct. 01, 2021	Oct. 02, 2020
Cash flows from operating activities:
Net (loss) income	$ (7,140)	$ 15,798
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization expense	21,490	12,997
Stock-based compensation expense	9,527	7,184
Benefit for deferred income taxes	(2,171)	(2,921)
Other non-cash items	(1,552)	268
Changes in operating assets and liabilities, net of effects of businesses acquired:
Accounts receivable, unbilled receivables, and costs in excess of billings	(9,429)	3,496
Inventory	(12,829)	(27,768)
Prepaid income taxes	(11,024)	(2,268)
Prepaid expenses and other current assets	(3,025)	(2,268)
Other non-current assets	(1,250)	(1,561)
Accounts payable, accrued expenses, and accrued compensation	21,707	10,803
Deferred revenues and customer advances	(5,991)	7,598
Income taxes payable	(4)	(52)
Other non-current liabilities	(315)	1,623
Net cash (used in) provided by operating activities	(2,006)	22,929
Cash flows from investing activities:
Purchases of property and equipment	(5,377)	(10,978)
Other investing activities	(3,237)	0
Net cash used in investing activities	(8,614)	(10,978)
Net cash used in financing activities
Proceeds from employee stock plans	0	2
Purchase and retirement of common stock	(7,316)	(66)
Net cash used in financing activities	(7,316)	(64)
Effect of exchange rate changes on cash and cash equivalents	(99)	397
Net (decrease) increase in cash and cash equivalents	(18,035)	12,284
Cash and cash equivalents at beginning of period	113,839	226,838
Cash and cash equivalents at end of period	95,804	239,122
Cash paid during the period for:
Interest	682	0
Income taxes	13,373	6,950
Non-cash investing activity	$ 2,533	$ 1,369

Description of Business

Description of Business	3 Months Ended
	Oct. 01, 2021
Accounting Policies [Abstract]
Description of Business	Description of Business Mercury Systems, Inc. (the “Company” or “Mercury”) is a leading technology company serving the aerospace and defense industry, positioned at the intersection of high-tech and defense. Headquartered in Andover, Massachusetts, the Company delivers products and solutions that power a broad range of aerospace and defense programs, optimized for mission success in some of the most challenging and demanding environments. The Company envisions, creates and delivers innovative technology solutions that are open, purpose-built and uncompromised to meet our customers’ most-pressing high-tech needs, including those specific to the defense community. Investors and others should note that the Company announces material financial information using its website ( www.mrcy.com ), Securities and Exchange Commission (“SEC”) filings, press releases, public conference calls, webcasts, and social media, including Twitter ( twitter.com/mrcy and twitter.com/mrcy_CEO ) and LinkedIn ( www.linkedin.com/company/mercury-systems ). Therefore, the Company encourages investors and others interested in Mercury to review the information the Company posts on the social media and other communication channels listed on its website.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Oct. 01, 2021
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies B ASIS OF P RESENTATION The accompanying consolidated financial statements have been prepared by the Company in accordance with Generally Accepted Accounting Principles (“GAAP”) in the United States of America for interim financial information and with the instructions to the Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in annual consolidated financial statements have been condensed or omitted pursuant to those rules and regulations; however, in the opinion of management the financial information reflects all adjustments, consisting of adjustments of a normal recurring nature, necessary for fair presentation. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the fiscal year ended July 2, 2021 which are contained in the Company’s Annual Report on Form 10-K filed with the SEC on August 17, 2021. The results for the first quarter ended October 1, 2021 are not necessarily indicative of the results to be expected for the full fiscal year. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. All references to the first quarter of fiscal 2022 are to the quarter ended October 1, 2021. There were 13 weeks during the first quarters ended October 1, 2021 and October 2, 2020, respectively. U SE OF E STIMATES The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. B USINESS C OMBINATIONS The Company utilizes the acquisition method of accounting under ASC 805, Business Combinations , (“ASC 805”), for all transactions and events in which it obtains control over one or more other businesses, to recognize the fair value of all assets and liabilities acquired, even if less than one hundred percent ownership is acquired, and in establishing the acquisition date fair value as the measurement date for all assets and liabilities assumed. The Company also utilizes ASC 805 for the initial recognition and measurement, subsequent measurement and accounting, and disclosure of assets and liabilities arising from contingencies in business combinations. F OREIGN C URRENCY Local currencies are the functional currency for the Company’s subsidiaries in Switzerland, the United Kingdom, France, Japan, Spain and Canada. The accounts of foreign subsidiaries are translated using exchange rates in effect at period-end for assets and liabilities and at average exchange rates during the period for results of operations. The related translation adjustments are reported in Accumulated other comprehensive loss (“AOCL”) in shareholders’ equity. Gains (losses) resulting from non-U.S. currency transactions are included in Other expense, net in the Consolidated Statements of Operations and Comprehensive (Loss) Income and were immaterial for all periods presented. R EVENUE R ECOGNITION The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers , (“ASC 606”). Revenues are derived from the sales of products that are grouped into one of the following three categories: (i) components; (ii) modules and sub-assemblies; and (iii) integrated subsystems. The Company also generates revenues from the performance of services, including systems engineering support, consulting, maintenance and other support, testing and installation. Each promised good or service within a contract is accounted for separately under the guidance of ASC 606 if they are distinct. Promised goods or services not meeting the criteria for being a distinct performance obligation are bundled into a single performance obligation with other goods or services that together meet the criteria for being distinct. The appropriate allocation of the transaction price and recognition of revenue is then determined for the bundled performance obligation. Revenue recognized at a point in time generally relates to contracts that include a combination of components, modules and sub-assemblies, integrated subsystems and related system integration or other services. Contracts with distinct performance obligations recognized at a point in time, with or without an allocation of the transaction price, totaled 47% and 64% of revenues for the first quarters ended October 1, 2021 and October 2, 2020, respectively. The Company also engages in long-term contracts for development, production and service activities and recognizes revenue for performance obligations over time. These long-term contracts involve the design, development, manufacture, or modification of complex modules and sub-assemblies or integrated subsystems and related services. Long-term contracts include both fixed-price and cost reimbursable contracts. The Company’s cost reimbursable contracts typically include cost-plus fixed fee and time and material contracts. Total revenue recognized under long-term contracts over time was 53% and 36% of total revenues for the first quarters ended October 1, 2021 and October 2, 2020, respectively. The Company generally does not provide its customers with rights of product return other than those related to assurance warranty provisions that permit repair or replacement of defective goods over a period of 12 to 36 months. The Company accrues for anticipated warranty costs upon product shipment. The Company does not consider activities related to such assurance warranties, if any, to be a separate performance obligation. The Company does offer separately priced extended warranties which generally range from 12 to 36 months that are treated as separate performance obligations. The transaction price allocated to extended warranties is recognized over time in proportion to the costs expected to be incurred in satisfying the obligations under the contract. All revenues are reported net of government assessed taxes (e.g., sales taxes or value-added taxes). Refer to Note L for disaggregation of revenue for the period. A CCOUNTS R ECEIVABLE Accounts receivable, net, represents amounts that have been billed and are currently due from customers. The Company maintains an allowance for credit losses to provide for the estimated amount of receivables that will not be collected. The Company provides credit to customers in the normal course of business. The Company performs ongoing credit evaluations of its customers’ financial condition and limits the amount of credit extended as necessary. The allowance is based upon an assessment of the customer's credit worthiness, reasonable forecasts about the future, history with the customer, and the age of the receivable balance. The Company typically invoices a customer upon shipment of the product (or completion of a service) for contracts where revenue is recognized at a point in time. For contracts where revenue is recognized over time, the invoicing events are typically based on specified performance obligation deliverables or milestone events, or quantifiable measures of performance. C ONTRACT B ALANCES Contract balances result from the timing of revenue recognized, billings and cash collections, and the generation of contract assets and liabilities. Contract assets represent revenue recognized in excess of amounts invoiced to the customer and the right to payment is not subject to the passage of time. Contract assets are presented as unbilled receivables and costs in excess of billings on the Company’s Consolidated Balance Sheets. Contract liabilities consist of deferred product revenue, billings in excess of revenues, deferred service revenue, and customer advances. Deferred product revenue represents amounts that have been invoiced to customers, but are not yet recognizable as revenue because the Company has not satisfied its performance obligations under the contract. Billings in excess of revenues represents milestone billing contracts where the billings of the contract exceed recognized revenues. Deferred service revenue primarily represents amounts invoiced to customers for annual maintenance contracts or extended warranty contracts, which are recognized over time in proportion to the costs expected to be incurred in satisfying the obligations under the contract. Customer advances represent deposits received from customers on an order. Contract liabilities are included in deferred revenue and the long-term portion of deferred revenue is included within other non-current liabilities on the Company’s Consolidated Balance Sheets. Contract balances are reported in a net position on a contract-by-contract basis. The contract asset balances were $194,367 and $162,921 as of October 1, 2021 and July 2, 2021, respectively. The contract asset balance increased due to growth in revenue recognized over time and timing of billable events under long-term contracts during the first quarter ended October 1, 2021. The contract liability balances were $29,438 and $35,201 as of October 1, 2021 and July 2, 2021, respectively. The decrease was due to lower billings in excess of revenues. Revenue recognized for the first quarter ended October 1, 2021 that was included in the contract liability balance a t July 2, 2021 was $13,137. Revenue recognized for the first quarter ended October 2, 2020 that was included in the contract liability balance at July 3, 2020 was $9,030. R EMAINING P ERFORMANCE O BLIGATIONS The Company includes in its computation of remaining performance obligations customer orders for which it has accepted signed sales orders. The definition of remaining performance obligations excludes contracts with original expected durations of less than one year, as well as those contracts that provide the customer with the right to cancel or terminate the order with no substantial penalty, even if the Company’s historical experience indicates the likelihood of cancellation or termination is remote. As of October 1, 2021, the aggregate amount of the transaction price allocated to remaining performance obligations was $373,904. The Company expects to recognize approximately 69% of its remaining performance obligations as revenue in the next 12 months and the balance thereafter. W EIGHTED -A VERAGE S HARES Weighted-average shares were calculated as follows: First Quarters Ended October 1, 2021 October 2, 2020 Basic weighted-average shares outstanding 55,376 54,883 Effect of dilutive equity instruments — 456 Diluted weighted-average shares outstanding 55,376 55,339 Equity instruments to purchase 474 and 203 shares of common stock were not included in the calculation of diluted net earnings per share for the first quarters ended October 1, 2021 and October 2, 2020, respectively, because the equity instruments were anti-dilutive. R ECENTLY I SSUED A CCOUNTING P RONOUNCEMENTS In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, an amendment of the FASB Accounting Standards Codification. The amendments in this ASU provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in this ASU are elective and apply to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in this Update are effective for all entities as of March 12, 2020 through December 31, 2022. The Company is currently evaluating the effect that this standard will have on its consolidated financial statements and related disclosures. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , an amendment of the FASB Accounting Standards Codification. The amendments in this ASU address diversity and inconsistency related to the recognition and measurement of contract assets and contract liabilities acquired in a business combination and require that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. Under current U.S. GAAP, an acquirer generally recognizes assets and liabilities assumed in a business combination, including contract assets and liabilities arising from revenue contracts with customers, at fair value on the acquisition date. ASU No. 2021-08 will result in the acquirer recording acquired contract assets and liabilities on the same basis that would have been recorded by the acquiree before the acquisition under Topic 606. This ASU is effective for fiscal years beginning after December 15, 2022, with early adoption permitted, including adoption in an interim period. The Company is currently evaluating the effect that this standard will have on its consolidated financial statements and related disclosures. R ECENTLY A DOPTED A CCOUNTING P RONOUNCEMENTS Effective July 3, 2021 the Company adopted ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, an amendment of the FASB Accounting Standards Codification. The amendments in this ASU simplify the accounting for income taxes by removing certain exceptions for intraperiod tax allocations and deferred tax liabilities for equity method investments and add guidance as to whether a step-up in tax basis of goodwill relates to a business combination or a separate transaction. This adoption did not have a material impact to the Company's consolidated financial statements or related disclosures.

Acquisitions

Acquisitions	3 Months Ended
	Oct. 01, 2021
Business Combinations [Abstract]
Acquisitions	Acquisitions P ENTEK A CQUISITION On May 27, 2021, the Company acquired Pentek Technologies, LLC and Pentek Systems, Inc. (collectively, "Pentek"). for a purchase price of $65,000, subject to net working capital and net debt adjustments. Based in Upper Saddle River, New Jersey, Pentek is a leading designer and manufacturer of ruggedized, high-performance, commercial off-the-shelf software-defined radio and data acquisition boards, recording systems and subsystems for high-end commercial and defense applications. The acquisition and associated transaction expenses were funded through a combination of cash on hand and Mercury's existing revolving credit facility (the "Revolver"). The following table presents the net purchase price and the fair values of the assets and liabilities of Pentek on a preliminary basis: Amounts Consideration transferred Cash paid at closing $ 65,668 Less cash acquired (746) Net purchase price $ 64,922 Estimated fair value of tangible assets acquired and liabilities assumed Cash $ 746 Accounts receivable 1,370 Inventory 6,575 Fixed assets 152 Other current and non-current assets 2,864 Accounts payable (1,016) Accrued expenses (520) Other current and non-current liabilities (4,090) Estimated fair value of net tangible assets acquired 6,081 Estimated fair value of identifiable intangible assets 24,110 Estimated goodwill 35,477 Estimated fair value of net assets acquired 65,668 Less cash acquired (746) Net purchase price $ 64,922 The amounts above represent the preliminary fair value estimates as of October 1, 2021 and are subject to subsequent adjustment as the Company obtains additional information during the measurement period and finalizes its fair value estimates. The preliminary identifiable intangible asset estimate includes customer relationships of $15,560 with a useful life of 21 years, completed technology of $6,340 with a useful life of seven years and backlog of $2,210 with a useful life of one year. Any subsequent adjustments to these fair value estimates occurring during the measurement period will result in an adjustment to goodwill. The goodwill of $35,477 largely reflects the potential synergies and expansion of the Company's offerings across product lines and markets complementary to the Company's existing products and markets. The goodwill from this acquisition is included in the Microelectronics reporting unit. The transaction was a combination of asset and stock, with the asset portion of goodwill being deductible for tax purposes. The Company has estimated the tax value of the intangible assets from this transaction and is amortizing the amount over 15 years for tax purposes. As of October 1, 2021, the Company ha d $29,703 of goodwill deductible for tax purposes. P HYSICAL O PTICS C ORPORATION A CQUISITION On December 7, 2020, the Company signed a definitive agreement to acquire Physical Optics Corporation ("POC") for a purchase price of $310,000, subject to net working capital and net debt adjustments. On December 30, 2020, the transaction closed and the Company acquired POC. Based in Torrance, California, POC expands the Company's global avionics business and its collective footprint in the platform and mission management market. The Company funded the acquisition through a combination of cash on hand and the Company's existing revolving credit facility (the "Revolver"). On May 28, 2021 the Company and representative of the former owners of POC agreed to post closing-adjustments totaling $2,641, which increased the Company’s net purchase price. The following table presents the net purchase price and the fair values of the assets and liabilities of POC on a preliminary basis: Amounts Consideration transferred Cash paid at closing $ 251,229 Cash paid post closing 61,626 Working capital and net debt adjustment (2,096) Less cash acquired (2,855) Net purchase price $ 307,904 Estimated fair value of tangible assets acquired and liabilities assumed Cash $ 2,855 Accounts receivable and Unbilled Receivables 28,022 Inventory 11,125 Fixed assets 23,236 Other current and non-current assets 16,453 Accounts payable (3,777) Accrued expenses (5,572) Other current and non-current liabilities (32,999) Estimated fair value of net tangible assets acquired 39,343 Estimated fair value of identifiable intangible assets 116,000 Estimated goodwill 155,416 Estimated fair value of net assets acquired 310,759 Less cash acquired (2,855) Net purchase price $ 307,904 The amounts above represent the preliminary fair value estimates as of October 1, 2021 and are subject to subsequent adjustment as the Company obtains additional information during the measurement period and finalizes its fair value estimates, including the ongoing assessment of collectability of receivable balances. T he preliminary identifia ble intangible asset estimate includes customer relationships of $83,000 with a useful life of 11 years, completed technology of $25,000 with a useful life of 9 years and backlog of $8,000 with a useful life of one year. Any subsequent adjustments to these fair value estimates occurring during the measurement period will result in an adjustment to goodwill. The estimated goodwill of $155,416 largely reflects the potential synergies and expansion of the Company’s offerings across product lines and markets complementary to the Co mpany’s existing products and markets and is not deductible for tax purposes. The goodwill from this acquisition is reported in the Processing reporting unit. A VALEX A CQUISITION On September 27, 2021, the Company announced that it had signed a definitive agreement to acquire Avalex Technologies Corporation (“Avalex”). Based in Gulf Breeze, Florida. Avalex is a provider of mission-critical avionics, including rugged displays, integrated communications management systems, digital video recorders, and warning systems. Pursuant to the terms of the agreement, the Company will acquire Avalex for an all-cash purchase price of $155,000, subject to net working capital and net debt adjustments. On November 5, 2021, the transaction closed and the Company acquired Avalex. See Note N "Subsequent Events" to the consolidated financial statements for further discussion.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Oct. 01, 2021
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments The carrying values of cash and cash equivalents, including money market funds, restricted cash, accounts receivable and payable, and accrued liabilities approximate fair value due to the short-term maturities of these assets and liabilities. The Company determined the carrying value of long-term debt approximated fair value due to variable interest rates charged on the borrowings, which reprice frequently. As of October 1, 2021, the Company had no financial instruments required to be measured at fair value.

Inventory

Inventory	3 Months Ended
	Oct. 01, 2021
Inventory Disclosure [Abstract]
Inventory	Inventory Inventory is stated at the lower of cost (first-in, first-out) or net realizable value, and consists of materials, labor and overhead. On a quarterly basis, the Company uses consistent methodologies to evaluate inventory for net realizable value. Once an item is written down, the value becomes the new inventory cost basis. The Company reduces the value of inventory for excess and obsolete inventory, consisting of on-hand inventory in excess of estimated usage. The excess and obsolete inventory evaluation is based upon assumptions about future demand, historical usage, product mix and possible alternative uses. Inventory was comprised of the following: As of October 1, 2021 July 2, 2021 Raw materials $ 148,747 $ 141,774 Work in process 63,380 58,087 Finished goods 22,276 21,779 Total $ 234,403 $ 221,640

Goodwill

Goodwill	3 Months Ended
	Oct. 01, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Goodwill On August 3, 2021, Mercury announced a companywide effort, called 1MPACT, to lay the foundation for the next phase of the Company's value creation at scale. The goal of 1MPACT is to achieve Mercury's full growth, margin expansion and adjusted EBITDA potential over the next five years. In connection with 1MPACT, the Company realigned its internal organizational structure in the first quarter of fiscal 2022 shifting to two divisions, Processing and Microelectronics. The Mission division has now merged under the Processing division. There was no change to the Microelectronics division. In accordance with FASB ASC 350, Intangibles-Goodwill and Other (“ASC 350”), the Company determines its reporting units based upon whether discrete financial information is available, if management regularly reviews the operating results of the component, the nature of the products offered to customers and the market characteristics of each reporting unit. A reporting unit is considered to be an operating segment or one level below an operating segment also known as a component. Component level financial information is reviewed by management across two divisions: Processing and Microelectronics. Accordingly, these were determined to be the Company's new reporting units. The internal reorganization and change in reporting units qualified as a triggering event and required goodwill to be tested for impairment. As required by ASC 350, the Company tested goodwill for impairment immediately before and after the reorganization. As a result of these analyses, it was determined that goodwill was not impaired before or after the reorganization. In the first quarter ended October 1, 2021, the Company assigned goodwill to the new reporting units based on the relative fair value of transferred operations. The following table sets forth the changes in the carrying amount of goodw ill for the first quarter ended October 1, 2021 : Total Balance at July 2, 2021 $ 804,906 Goodwill adjustment for the POC acquisition 157 Goodwill adjustment for the Pentek acquisition 252 Balance at October 1, 2021 $ 805,315 The Company performs its annual goodwill impairment test in the fourth quarter of each fiscal year.

Restructuring

Restructuring	3 Months Ended
	Oct. 01, 2021
Restructuring and Related Activities [Abstract]
Restructuring	Restructuring During the first quarter ended October 1, 2021, the Company incurred $12,274 of restructuring and other charges. Restructuring and other charges of $7,338 related to severance costs associated with the elimination of 100 employees in manufacturing, SG&A and R&D based on changes in the business environment and to align with the internal organizational changes completed under 1MPACT. The remaining $4,936 of restructuring and other charges related to third-party consulting costs associated with 1MPACT. All of the restructuring and other charges are classified as Operating expenses in the Consolidated Statements of Operations and Comprehensive (Loss) Income and any remaining severance obligations are expected to be paid within the next twelve months. The restructuring liability is classified as Accrued expenses in the Consolidated Balance Sheets. The following table presents the detail of activity for the Company’s restructuring plans: Severance & Balance at July 2, 2021 $ 1,006 Restructuring and other charges 7,338 Cash paid (2,009) Balance at October 1, 2021 $ 6,335

Income Taxes

Income Taxes	3 Months Ended
	Oct. 01, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company recorded an income tax (benefit) provision of $(441) and $2,198 on a (loss) income before income taxes of $(7,581) and $17,996 for the first quarters ended October 1, 2021 and October 2, 2020, respectively. During the first quarters ended October 1, 2021 and October 2, 2020, the Company recognized a discrete tax provision of $715 related to stock-based compensation shortfalls and a discrete tax benefit of $2,480 related to excess benefits on stock-based compensation. The effective tax rate for the first quarters ended October 1, 2021 and October 2, 2020 differed from the Federal statutory rate primarily due to Federal and State research and development credits, non-deductible compensation, stock-based compensation, and state taxes. In addition, during the first quarter ended October 1, 2021, the Company had certain unbenefited deferred tax assets. During the first quarter ended October 1, 2021, there were no material changes to the Company's unrecognized tax positions. Within the calculation of the Company's annual effective tax rate, the Company has used assumptions and estimates that may change as a result of future guidance and interpretation from the Internal Revenue Service (“IRS”).

Debt

Debt	3 Months Ended
	Oct. 01, 2021
Debt Disclosure [Abstract]
Debt	Debt R EVOLVING C REDIT F ACILITY On September 28, 2018, the Company amended the Revolver to increase and extend the borrowing capacity to a $750,000, 5-year revolving credit line, with the maturity extended to September 28, 2023. As of October 1, 2021, the Company's outstanding balance of unamortized deferred financing costs was $2,689, which is being amortized to Other expense, net in the Consolidated Statements of Operations and Comprehensive (Loss) Income on a straight line basis over the term of the Revolver. As of October 1, 2021, the Company was in compliance with all covenants and conditions under the Revolver and there were outstanding borrowings of $200,000 against the Revolver, resulting in interest expense of $595 for the first quarter ended October 1, 2021. There were outstanding letters of credit of $963 as of October 1, 2021.

Employee Benefit Plan

Employee Benefit Plan	3 Months Ended
	Oct. 01, 2021
Retirement Benefits [Abstract]
Employee Benefit Plan	Employee Benefit Plan P ENSION P LAN The Company maintains a defined benefit pension plan (the “Plan”) for its Swiss employees, which is administered by an independent pension fund. The Plan is mandated by Swiss law and meets the criteria for a defined benefit plan under ASC 715, Compensation—Retirement Benefits (“ASC 715”), because participants of the Plan are entitled to a defined rate of return on contributions made. The independent pension fund is a multi-employer plan with unrestricted joint liability for all participating companies for which the Plan’s overfunding or underfunding is allocated to each participating company based on an allocation key determined by the Plan. The Company recognizes a net asset or liability for the Plan equal to the difference between the projected benefit obligation of the Plan and the fair value of the Plan’s assets as required by ASC 715. The funded status may vary from year to year due to changes in the fair value of the Plan’s assets and variations on the underlying assumptions of the projected benefit obligation of the Plan. The Plan's funded status at October 1, 2021 was a net liability of $9,691, which is recorded in Other non-current liabilities on the Consolidated Balance Sheet. The Company recorded a net gain of $48 and $31 in AOCL during the first quarters ended October 1, 2021 and October 2, 2020, respectively. The Company recognized net periodic benefit costs of $269 and $413 associated with the Plan for the first quarters ended October 1, 2021 and October 2, 2020, respectively. The Company's total expected employer contributions to the Plan during fiscal 2022 are $1,165.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Oct. 01, 2021
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation S TOCK I NCENTIVE P LANS At October 1, 2021, the aggregate number of shares authorized for issuance under the Company’s Amended and Restated 2018 Stock Incentive Plan (the “2018 Plan”) is 6,782 shares, including 710 shares rolle d into the 2018 Plan that were available for future grant under the Company’s 2005 Stock Incentive Plan, as amended and restated (the “2005 Plan”) and 3,000 shares approved by the Company's shareholders on October 28, 2020. The 2018 Plan replaced the 2005 Plan. The shares authorized for issuance under the 2018 Plan will continue to be increased by any future cancellations, forfeitures or terminations (other than by exercise) of awards under the 2005 Plan. The foregoing does not affect any outstanding awards under the 2005 Plan, which remain in full force and effect in accordance with their terms. The 2018 Plan provides for the grant of non-qualified and incentive stock options, restricted stock, stock appreciation rights and deferred stock awards to employees and non-employees. Stock options must be granted with an exercise price of not less than 100% of the fair value of the Company’s common stock on the date of grant and the options generally have a term of seven years. There were 3,529 shares available for future grant under the 2018 Plan at October 1, 2021 . As part of the Com pany's ongoing annual equity grant program for employees, the Company grants performance-based restricted stock awards to certain executives and employees pursuant to the 2018 Plan. Performance awards vest based on the requisite service period subject to the achievement of specific financial performance targets. Based on the performance targets, some of these awards require graded vesting which results in more rapid expense recognition compared to traditional time-based vesting over the same vesting period. The Company monitors the probability of achieving the performance targets on a quarterly basis and may adjust periodic stock compensation expense accordingly based on its determination of the likelihood for reaching targets. The performance targets generally include the achievement of internal performance targets in relation to a peer group of companies. E MPLOYEE S TOCK P URCHASE P LAN At October 1, 2021, the aggregate number of shares authorized for issuance under the Company’s 1997 Employee Stock Purchase Plan, as amended and restated (“ESPP”), i s 2,300 shares, including 500 shares approved by the Company's shareholders on October 28, 2020. Under the ESPP, rights are granted to purchase shares of common stock at 85% of the lesser of the market value of such shares at either the beginning or the end of each six-month offering period. The ESPP permits employees to purchase common stock through payroll deductions, which may not exceed 10% of an employee’s compensation as defined in the ESPP. There were no shares issued under the ESPP during the first quarters ended October 1, 2021 and October 2, 2020, respectively. Shares available for future purchase under the ESPP totaled 428 at October 1, 2021. S TOCK A WARD A CTIVITY The following table summarizes the status of the Company’s non-vested restricted stock awards and deferred stock awards since July 2, 2021: Non-vested Restricted Stock Awards Number of Weighted Average Outstanding at July 2, 2021 1,013 $ 70.77 Granted 680 51.33 Vested (398) 60.20 Forfeited (98) 70.24 Outstanding at October 1, 2021 1,197 $ 63.28 S TOCK - BASED C OMPENSATION E XPENSE The Company recognizes expense for its share-based payment plans in the Consolidated Statements of Operations and Comprehensive (Loss) Income in accordance with ASC 718, Compensation - Stock Compensation (“ASC 718”). The Company had $767 and $796 of capitalized stock-based compensation expense on the Consolidated Balance Sheets for the periods ended October 1, 2021 and July 2, 2021, respectively. Under the fair value recognition provisions of ASC 718, stock-based compensation cost is measured at the grant date based on the value of the award and is recognized as expense over the service period, net of estimated forfeitures. The following table presents share-based compensation expenses included in the Company’s Consolidated Statements of Operations and Comprehensive (Loss) Income: First Quarters Ended October 1, 2021 October 2, 2020 Cost of revenues $ 559 $ 295 Selling, general and administrative 7,561 5,676 Research and development 1,407 1,213 Stock-based compensation expense before tax 9,527 7,184 Income taxes (2,477) (1,868) Stock-based compensation expense, net of income taxes $ 7,050 $ 5,316

Operating Segment, Geographic I

Operating Segment, Geographic Information and Significant Customers	3 Months Ended
	Oct. 01, 2021
Segment Reporting [Abstract]
Operating Segment, Geographic Information and Significant Customers	Operating Segment, Geographic Information and Significant Customers Operating segments are defined as components of an enterprise evaluated regularly by the Company's Chief Operating Decision Maker ("CODM") in deciding how to allocate resources and assess performance. During the first quarter of fiscal 2022, the Company announced its 1MPACT value creation initiative to promote scale as the organization continues to grow. The Company evaluated this internal reorganization under FASB ASC 280, Segment Reporting ("ASC 280") to determine whether this change has impacted the Company's single operating and reportable segment. The Company concluded this change had no effect given the CODM continues to evaluate and manage the Company on the basis of one operating and reportable segment. The Company utilized the management approach for determining its operating segment in accordance with ASC 280. The geographic distribution of the Company’s revenues as determined by country in which the Company's legal subsidiary is domiciled is summarized as follows: U.S. Europe Asia Pacific Eliminations Total FIRST QUARTER ENDED OCTOBER 1, 2021 Net revenues to unaffiliated customers $ 213,741 $ 11,187 $ 85 $ — $ 225,013 Inter-geographic revenues 1,559 729 — (2,288) — Net revenues $ 215,300 $ 11,916 $ 85 $ (2,288) $ 225,013 FIRST QUARTER ENDED OCTOBER 2, 2020 Net revenues to unaffiliated customers $ 195,847 $ 9,663 $ 111 $ — $ 205,621 Inter-geographic revenues 240 344 — (584) — Net revenues $ 196,087 $ 10,007 $ 111 $ (584) $ 205,621 The Company offers a broad family of products designed to meet the full range of requirements in compute-intensive, signal processing, image processing and command and control applications. To maintain a competitive advantage, the Company seeks to leverage technology investments across multiple product lines and product solutions. The Company’s products are typically compute-intensive and require extremely high bandwidth and high throughput. These systems often must also meet significant SWaP constraints for use in aircraft, unmanned aerial vehicles, ships and other platforms and be ruggedized for use in harsh environments. The Company's products transform the massive streams of digital data created in these applications into usable information in real time. The systems can scale from a few processors to thousands of processors. In recent years, the Company completed a series of acquisitions that changed its technological capabilities, applications and end markets. As these acquisitions and changes occurred, the Company's proportion of revenue derived from the sale of components in different technological areas, and modules, sub-assemblies and integrated subsystems which combine technologies into more complex diverse products has shifted. The following tables present revenue consistent with the Company's strategy of expanding its technological capabilities and program content. As additional information related to the Company’s products by end user, application, product grouping and/or platform is attained, the categorization of these products can vary over time. When this occurs, the Company reclassifies revenue by end user, application, product grouping and/or platform for prior periods. Such reclassifications typically do not materially change the underlying trends of results within each revenue category. The following table presents the Company's net revenue by end user for the periods presented: First Quarters Ended October 1, 2021 October 2, 2020 Domestic (1) $ 189,248 $ 178,743 International/Foreign Military Sales (2) 35,765 26,878 Total Net Revenue $ 225,013 $ 205,621 (1) Domestic revenues consist of sales where the end user is within the U.S., as well as sales to prime defense contractor customers where the ultimate end user location is not defined. (2) International/Foreign Military Sales consist of sales to U.S. prime defense contractor customers where the end user is known to be outside the U.S., foreign military sales through the U.S. government, and direct sales to non-U.S. based customers intended for end use outside of the U.S. The following table presents the Company's net revenue by end application for the periods presented: First Quarters Ended October 1, 2021 October 2, 2020 Radar (1) $ 58,904 $ 72,409 Electronic Warfare (2) 33,941 36,888 Other Sensor & Effector (3) 31,442 23,095 Total Sensor & Effector 124,287 132,392 C4I (4) 83,401 53,781 Other (5) 17,325 19,448 Total Net Revenue $ 225,013 $ 205,621 (1) Radar includes end-use applications where radio frequency signals are utilized to detect, track, and identify objects. (2) Electronic Warfare includes end-use applications comprising the offensive and defensive use of the electromagnetic spectrum. (3) Other Sensor & Effector products include all Sensor & Effector end markets other than Radar and Electronic Warfare. (4) C4I includes rugged secure rackmount servers that are designed to drive the most powerful military processing applications. (5) Other products include all component and other sales where the end use is not specified. The following table presents the Company's net revenue by product grouping for the periods presented: First Quarters Ended October 1, 2021 October 2, 2020 Components (1) $ 35,065 $ 50,296 Modules and Sub-assemblies (2) 59,030 17,466 Integrated Subsystems (3) 130,918 137,859 Total Net Revenue $ 225,013 $ 205,621 (1) Components include technology elements typically performing a single, discrete technological function, which when physically combined with other components may be used to create a module or sub-assembly. Examples include, but are not limited to, power amplifiers and limiters, switches, oscillators, filters, equalizers, digital and analog converters, chips, MMICs (monolithic microwave integrated circuits), and memory and storage devices. (2) Modules and Sub-assemblies include combinations of multiple functional technology elements and/or components that work together to perform multiple functions but are typically resident on or within a single board or housing. Modules and sub-assemblies may in turn be combined to form an integrated subsystem. Examples of modules and sub-assemblies include, but are not limited to, embedded processing modules, embedded processing boards, switch fabric boards, high speed input/output boards, digital receiver boards, graphics and video processing and Ethernet and IO (input-output) boards, multi-chip modules, integrated radio frequency and microwave multi-function assemblies, tuners and transceivers. (3) Integrated Subsystems include multiple modules and/or sub-assemblies combined with a backplane or similar functional element and software to enable a solution. These are typically but not always integrated within a chassis and with cooling, power and other elements to address various requirements and are also often combined with additional technologies for interaction with other parts of a complete system or platform. Integrated subsystems also include spare and replacement modules and sub-assemblies sold as part of the same program for use in or with integrated subsystems sold by the Company. The following table presents the Company's net revenue by platform for the periods presented: First Quarters Ended October 1, 2021 October 2, 2020 Airborne (1) $ 116,564 $ 87,249 Land (2) 35,857 37,551 Naval (3) 39,977 46,282 Other (4) 32,615 34,539 Total Net Revenues $ 225,013 $ 205,621 (1) Airborne platform includes products that relate to personnel, equipment, or pieces of equipment designed for airborne applications. (2) Land platform includes products that relate to fixed or mobile equipment, or pieces of equipment for personnel, weapon systems, vehicles and support elements operating on land. (3) Naval platform includes products that relate to personnel, equipment, or pieces of equipment designed for naval operations. (4) All platforms other than Airborne, Land or Naval. The geographic distribution of the Company’s identifiable long-lived assets is summarized as follows: U.S. Europe Asia Pacific Eliminations Total October 1, 2021 $ 123,581 $ 5,108 $ 5 $ — $ 128,694 July 2, 2021 $ 123,009 $ 5,509 $ 6 $ — $ 128,524 Identifiable long-lived assets exclude right-of-use assets, goodwill, and intangible assets. Customers comprising 10% or more of the Company’s revenues for the periods shown are as follows: First Quarters Ended October 1, 2021 October 2, 2020 U.S. Navy 17 % * Raytheon Technologies 14 % 23 % Lockheed Martin Corporation 13 % 19 % 44 % 42 % * Indicates that the amount is less than 10% of the Company's revenue for the respective period. While the Company typically has customers from which it derives 10% or more of its revenue, the sales to each of these customers are spread across multiple programs and platforms. There were no programs comprising 10% or more of the Company's revenues for the first quarters ended October 1, 2021 and October 2, 2020.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Oct. 01, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies L EGAL C LAIMS The Company is subject to litigation, claims, investigations and audits arising from time to time in the ordinary course of its business. Although legal proceedings are inherently unpredictable, the Company believes that it has valid defenses with respect to any matters currently pending against the Company and intends to defend itself vigorously. The outcome of these matters, individually and in the aggregate, is not expected to have a material impact on the Company’s cash flows, results of operations, or financial position. On June 23, 2021, Embedded Reps of America, LLC (“ERA”), a former sales representative, and James Mazzola, a principal of ERA, filed for binding arbitration related to the termination of ERA’s sales representative agreement raising multiple claims that aggregate to approximately $9,000 in direct damages, with treble damages requested on a number of those claims. ERA was a sales representative of Themis when Themis was acquired by Mercury. The sales representative agreement provided for termination by either party upon 30 days written notice with ERA entitled to commissions for orders obtained by ERA product shipment occurring prior to termination. The Company responded to the complaint on July 28, 2021. The Company believes the claims in the complaint are without merit and intends to defend itself vigorously. I NDEMNIFICATION O BLIGATIONS The Company’s standard product sales and license agreements entered into in the ordinary course of business typically contain an indemnification provision pursuant to which the Company indemnifies, holds harmless, and agrees to reimburse the indemnified party for losses suffered or incurred by the indemnified party in connection with any patent, copyright or other intellectual property infringement claim by any third party with respect to the Company’s products. Such provisions generally survive termination or expiration of the agreements. The potential amount of future payments the Company could be required to make under these indemnification provisions is, in some instances, unlimited. P URCHASE C OMMITMENTS As of October 1, 2021, the Company has entered into non-cancelable purchase commitments for certain inventory components and services used in its normal operations. The purchase commitments covered by these agreements are for less than one year and aggregate to $154,689 . O THER As part of the Company's strategy for growth, the Company continues to explore acquisitions or strategic alliances. The associated acquisition costs incurred in the form of professional fees and services may be material to the future periods in which they occur, regardless of whether the acquisition is ultimately completed.

Subsequent Events

Subsequent Events	3 Months Ended
	Oct. 01, 2021
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events A VALEX ACQUISITION

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Oct. 01, 2021
Accounting Policies [Abstract]
Basis of Presentation	B ASIS OF P RESENTATION The accompanying consolidated financial statements have been prepared by the Company in accordance with Generally Accepted Accounting Principles (“GAAP”) in the United States of America for interim financial information and with the instructions to the Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in annual consolidated financial statements have been condensed or omitted pursuant to those rules and regulations; however, in the opinion of management the financial information reflects all adjustments, consisting of adjustments of a normal recurring nature, necessary for fair presentation. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the fiscal year ended July 2, 2021 which are contained in the Company’s Annual Report on Form 10-K filed with the SEC on August 17, 2021. The results for the first quarter ended October 1, 2021 are not necessarily indicative of the results to be expected for the full fiscal year.
Use of Estimates	U SE OF E STIMATES The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.
Business Combinations	B USINESS C OMBINATIONS The Company utilizes the acquisition method of accounting under ASC 805, Business Combinations , (“ASC 805”), for all transactions and events in which it obtains control over one or more other businesses, to recognize the fair value of all assets and liabilities acquired, even if less than one hundred percent ownership is acquired, and in establishing the acquisition date fair value as the measurement date for all assets and liabilities assumed. The Company also utilizes ASC 805 for the initial recognition and measurement, subsequent measurement and accounting, and disclosure of assets and liabilities arising from contingencies in business combinations.
Foreign Currency	F OREIGN C URRENCY Local currencies are the functional currency for the Company’s subsidiaries in Switzerland, the United Kingdom, France, Japan, Spain and Canada. The accounts of foreign subsidiaries are translated using exchange rates in effect at period-end for assets and liabilities and at average exchange rates during the period for results of operations. The related translation adjustments are reported in Accumulated other comprehensive loss (“AOCL”) in shareholders’ equity. Gains (losses) resulting from non-U.S. currency transactions are included in Other expense, net in the Consolidated Statements of Operations and Comprehensive (Loss) Income and were immaterial for all periods presented.
Revenue Recognition	R EVENUE R ECOGNITION The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers , (“ASC 606”). Revenues are derived from the sales of products that are grouped into one of the following three categories: (i) components; (ii) modules and sub-assemblies; and (iii) integrated subsystems. The Company also generates revenues from the performance of services, including systems engineering support, consulting, maintenance and other support, testing and installation. Each promised good or service within a contract is accounted for separately under the guidance of ASC 606 if they are distinct. Promised goods or services not meeting the criteria for being a distinct performance obligation are bundled into a single performance obligation with other goods or services that together meet the criteria for being distinct. The appropriate allocation of the transaction price and recognition of revenue is then determined for the bundled performance obligation. Revenue recognized at a point in time generally relates to contracts that include a combination of components, modules and sub-assemblies, integrated subsystems and related system integration or other services. Contracts with distinct performance obligations recognized at a point in time, with or without an allocation of the transaction price, totaled 47% and 64% of revenues for the first quarters ended October 1, 2021 and October 2, 2020, respectively. The Company also engages in long-term contracts for development, production and service activities and recognizes revenue for performance obligations over time. These long-term contracts involve the design, development, manufacture, or modification of complex modules and sub-assemblies or integrated subsystems and related services. Long-term contracts include both fixed-price and cost reimbursable contracts. The Company’s cost reimbursable contracts typically include cost-plus fixed fee and time and material contracts. Total revenue recognized under long-term contracts over time was 53% and 36% of total revenues for the first quarters ended October 1, 2021 and October 2, 2020, respectively. The Company generally does not provide its customers with rights of product return other than those related to assurance warranty provisions that permit repair or replacement of defective goods over a period of 12 to 36 months. The Company accrues for anticipated warranty costs upon product shipment. The Company does not consider activities related to such assurance warranties, if any, to be a separate performance obligation. The Company does offer separately priced extended warranties which generally range from 12 to 36 months that are treated as separate performance obligations. The transaction price allocated to extended warranties is recognized over time in proportion to the costs expected to be incurred in satisfying the obligations under the contract. All revenues are reported net of government assessed taxes (e.g., sales taxes or value-added taxes). Refer to Note L for disaggregation of revenue for the period.
Accounts Receivables	A CCOUNTS R ECEIVABLE
Weighted-Average Shares	W EIGHTED -A VERAGE S HARES Weighted-average shares were calculated as follows: First Quarters Ended October 1, 2021 October 2, 2020 Basic weighted-average shares outstanding 55,376 54,883 Effect of dilutive equity instruments — 456 Diluted weighted-average shares outstanding 55,376 55,339 Equity instruments to purchase 474 and 203 shares of common stock were not included in the calculation of diluted net earnings per share for the first quarters ended October 1, 2021 and October 2, 2020, respectively, because the equity instruments were anti-dilutive.
Recently Adopted Accounting Pronouncements	R ECENTLY I SSUED A CCOUNTING P RONOUNCEMENTS In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, an amendment of the FASB Accounting Standards Codification. The amendments in this ASU provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in this ASU are elective and apply to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in this Update are effective for all entities as of March 12, 2020 through December 31, 2022. The Company is currently evaluating the effect that this standard will have on its consolidated financial statements and related disclosures. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , an amendment of the FASB Accounting Standards Codification. The amendments in this ASU address diversity and inconsistency related to the recognition and measurement of contract assets and contract liabilities acquired in a business combination and require that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. Under current U.S. GAAP, an acquirer generally recognizes assets and liabilities assumed in a business combination, including contract assets and liabilities arising from revenue contracts with customers, at fair value on the acquisition date. ASU No. 2021-08 will result in the acquirer recording acquired contract assets and liabilities on the same basis that would have been recorded by the acquiree before the acquisition under Topic 606. This ASU is effective for fiscal years beginning after December 15, 2022, with early adoption permitted, including adoption in an interim period. The Company is currently evaluating the effect that this standard will have on its consolidated financial statements and related disclosures. R ECENTLY A DOPTED A CCOUNTING P RONOUNCEMENTS Effective July 3, 2021 the Company adopted ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, an amendment of the FASB Accounting Standards Codification. The amendments in this ASU simplify the accounting for income taxes by removing certain exceptions for intraperiod tax allocations and deferred tax liabilities for equity method investments and add guidance as to whether a step-up in tax basis of goodwill relates to a business combination or a separate transaction. This adoption did not have a material impact to the Company's consolidated financial statements or related disclosures.
Stock-Based Compensation	S TOCK I NCENTIVE P LANS At October 1, 2021, the aggregate number of shares authorized for issuance under the Company’s Amended and Restated 2018 Stock Incentive Plan (the “2018 Plan”) is 6,782 shares, including 710 shares rolle d into the 2018 Plan that were available for future grant under the Company’s 2005 Stock Incentive Plan, as amended and restated (the “2005 Plan”) and 3,000 shares approved by the Company's shareholders on October 28, 2020. The 2018 Plan replaced the 2005 Plan. The shares authorized for issuance under the 2018 Plan will continue to be increased by any future cancellations, forfeitures or terminations (other than by exercise) of awards under the 2005 Plan. The foregoing does not affect any outstanding awards under the 2005 Plan, which remain in full force and effect in accordance with their terms. The 2018 Plan provides for the grant of non-qualified and incentive stock options, restricted stock, stock appreciation rights and deferred stock awards to employees and non-employees. Stock options must be granted with an exercise price of not less than 100% of the fair value of the Company’s common stock on the date of grant and the options generally have a term of seven years. There were 3,529 shares available for future grant under the 2018 Plan at October 1, 2021 . As part of the Com pany's ongoing annual equity grant program for employees, the Company grants performance-based restricted stock awards to certain executives and employees pursuant to the 2018 Plan. Performance awards vest based on the requisite service period subject to the achievement of specific financial performance targets. Based on the performance targets, some of these awards require graded vesting which results in more rapid expense recognition compared to traditional time-based vesting over the same vesting period. The Company monitors the probability of achieving the performance targets on a quarterly basis and may adjust periodic stock compensation expense accordingly based on its determination of the likelihood for reaching targets. The performance targets generally include the achievement of internal performance targets in relation to a peer group of companies. E MPLOYEE S TOCK P URCHASE P LAN At October 1, 2021, the aggregate number of shares authorized for issuance under the Company’s 1997 Employee Stock Purchase Plan, as amended and restated (“ESPP”), i s 2,300 shares, including 500 shares approved by the Company's shareholders on October 28, 2020. Under the ESPP, rights are granted to purchase shares of common stock at 85% of the lesser of the market value of such shares at either the beginning or the end of each six-month offering period. The ESPP permits employees to purchase common stock through payroll deductions, which may not exceed 10% of an employee’s compensation as defined in the ESPP.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Oct. 01, 2021
Accounting Policies [Abstract]
Basic and Diluted Weighted Average Shares Outstanding	Weighted-average shares were calculated as follows: First Quarters Ended October 1, 2021 October 2, 2020 Basic weighted-average shares outstanding 55,376 54,883 Effect of dilutive equity instruments — 456 Diluted weighted-average shares outstanding 55,376 55,339

Acquisitions (Tables)

Acquisitions (Tables)	3 Months Ended
	Oct. 01, 2021
Business Combinations [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The following table presents the net purchase price and the fair values of the assets and liabilities of Pentek on a preliminary basis: Amounts Consideration transferred Cash paid at closing $ 65,668 Less cash acquired (746) Net purchase price $ 64,922 Estimated fair value of tangible assets acquired and liabilities assumed Cash $ 746 Accounts receivable 1,370 Inventory 6,575 Fixed assets 152 Other current and non-current assets 2,864 Accounts payable (1,016) Accrued expenses (520) Other current and non-current liabilities (4,090) Estimated fair value of net tangible assets acquired 6,081 Estimated fair value of identifiable intangible assets 24,110 Estimated goodwill 35,477 Estimated fair value of net assets acquired 65,668 Less cash acquired (746) Net purchase price $ 64,922
Schedule of the Net Purchase Price and Fair Values of Assets and Liabilities Acquired	The following table presents the net purchase price and the fair values of the assets and liabilities of POC on a preliminary basis: Amounts Consideration transferred Cash paid at closing $ 251,229 Cash paid post closing 61,626 Working capital and net debt adjustment (2,096) Less cash acquired (2,855) Net purchase price $ 307,904 Estimated fair value of tangible assets acquired and liabilities assumed Cash $ 2,855 Accounts receivable and Unbilled Receivables 28,022 Inventory 11,125 Fixed assets 23,236 Other current and non-current assets 16,453 Accounts payable (3,777) Accrued expenses (5,572) Other current and non-current liabilities (32,999) Estimated fair value of net tangible assets acquired 39,343 Estimated fair value of identifiable intangible assets 116,000 Estimated goodwill 155,416 Estimated fair value of net assets acquired 310,759 Less cash acquired (2,855) Net purchase price $ 307,904

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Oct. 01, 2021
Inventory Disclosure [Abstract]
Inventory	Inventory was comprised of the following: As of October 1, 2021 July 2, 2021 Raw materials $ 148,747 $ 141,774 Work in process 63,380 58,087 Finished goods 22,276 21,779 Total $ 234,403 $ 221,640

Goodwill (Tables)

Goodwill (Tables)	3 Months Ended
	Oct. 01, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Changes in Carrying Amount of Goodwill	The following table sets forth the changes in the carrying amount of goodw ill for the first quarter ended October 1, 2021 : Total Balance at July 2, 2021 $ 804,906 Goodwill adjustment for the POC acquisition 157 Goodwill adjustment for the Pentek acquisition 252 Balance at October 1, 2021 $ 805,315

Restructuring (Tables)

Restructuring (Tables)	3 Months Ended
	Oct. 01, 2021
Restructuring and Related Activities [Abstract]
Expenses by Reportable Segment for Restructuring Plans	The following table presents the detail of activity for the Company’s restructuring plans: Severance & Balance at July 2, 2021 $ 1,006 Restructuring and other charges 7,338 Cash paid (2,009) Balance at October 1, 2021 $ 6,335

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Oct. 01, 2021
Share-based Payment Arrangement [Abstract]
Summary of Nonvested Restricted Stock	The following table summarizes the status of the Company’s non-vested restricted stock awards and deferred stock awards since July 2, 2021: Non-vested Restricted Stock Awards Number of Weighted Average Outstanding at July 2, 2021 1,013 $ 70.77 Granted 680 51.33 Vested (398) 60.20 Forfeited (98) 70.24 Outstanding at October 1, 2021 1,197 $ 63.28
Stock Based Compensation Expenses	The following table presents share-based compensation expenses included in the Company’s Consolidated Statements of Operations and Comprehensive (Loss) Income: First Quarters Ended October 1, 2021 October 2, 2020 Cost of revenues $ 559 $ 295 Selling, general and administrative 7,561 5,676 Research and development 1,407 1,213 Stock-based compensation expense before tax 9,527 7,184 Income taxes (2,477) (1,868) Stock-based compensation expense, net of income taxes $ 7,050 $ 5,316

Operating Segment, Geographic_2

Operating Segment, Geographic Information and Significant Customers (Tables)	3 Months Ended
	Oct. 01, 2021
Segment Reporting [Abstract]
Geographic Distribution of Revenues and Long Lived Assets from Continuing Operations	The geographic distribution of the Company’s revenues as determined by country in which the Company's legal subsidiary is domiciled is summarized as follows: U.S. Europe Asia Pacific Eliminations Total FIRST QUARTER ENDED OCTOBER 1, 2021 Net revenues to unaffiliated customers $ 213,741 $ 11,187 $ 85 $ — $ 225,013 Inter-geographic revenues 1,559 729 — (2,288) — Net revenues $ 215,300 $ 11,916 $ 85 $ (2,288) $ 225,013 FIRST QUARTER ENDED OCTOBER 2, 2020 Net revenues to unaffiliated customers $ 195,847 $ 9,663 $ 111 $ — $ 205,621 Inter-geographic revenues 240 344 — (584) — Net revenues $ 196,087 $ 10,007 $ 111 $ (584) $ 205,621 The following table presents the Company's net revenue by end user for the periods presented: First Quarters Ended October 1, 2021 October 2, 2020 Domestic (1) $ 189,248 $ 178,743 International/Foreign Military Sales (2) 35,765 26,878 Total Net Revenue $ 225,013 $ 205,621 (1) Domestic revenues consist of sales where the end user is within the U.S., as well as sales to prime defense contractor customers where the ultimate end user location is not defined. (2) International/Foreign Military Sales consist of sales to U.S. prime defense contractor customers where the end user is known to be outside the U.S., foreign military sales through the U.S. government, and direct sales to non-U.S. based customers intended for end use outside of the U.S. The following table presents the Company's net revenue by end application for the periods presented: First Quarters Ended October 1, 2021 October 2, 2020 Radar (1) $ 58,904 $ 72,409 Electronic Warfare (2) 33,941 36,888 Other Sensor & Effector (3) 31,442 23,095 Total Sensor & Effector 124,287 132,392 C4I (4) 83,401 53,781 Other (5) 17,325 19,448 Total Net Revenue $ 225,013 $ 205,621 (1) Radar includes end-use applications where radio frequency signals are utilized to detect, track, and identify objects. (2) Electronic Warfare includes end-use applications comprising the offensive and defensive use of the electromagnetic spectrum. (3) Other Sensor & Effector products include all Sensor & Effector end markets other than Radar and Electronic Warfare. (4) C4I includes rugged secure rackmount servers that are designed to drive the most powerful military processing applications. (5) Other products include all component and other sales where the end use is not specified. The following table presents the Company's net revenue by product grouping for the periods presented: First Quarters Ended October 1, 2021 October 2, 2020 Components (1) $ 35,065 $ 50,296 Modules and Sub-assemblies (2) 59,030 17,466 Integrated Subsystems (3) 130,918 137,859 Total Net Revenue $ 225,013 $ 205,621 (1) Components include technology elements typically performing a single, discrete technological function, which when physically combined with other components may be used to create a module or sub-assembly. Examples include, but are not limited to, power amplifiers and limiters, switches, oscillators, filters, equalizers, digital and analog converters, chips, MMICs (monolithic microwave integrated circuits), and memory and storage devices. (2) Modules and Sub-assemblies include combinations of multiple functional technology elements and/or components that work together to perform multiple functions but are typically resident on or within a single board or housing. Modules and sub-assemblies may in turn be combined to form an integrated subsystem. Examples of modules and sub-assemblies include, but are not limited to, embedded processing modules, embedded processing boards, switch fabric boards, high speed input/output boards, digital receiver boards, graphics and video processing and Ethernet and IO (input-output) boards, multi-chip modules, integrated radio frequency and microwave multi-function assemblies, tuners and transceivers. (3) Integrated Subsystems include multiple modules and/or sub-assemblies combined with a backplane or similar functional element and software to enable a solution. These are typically but not always integrated within a chassis and with cooling, power and other elements to address various requirements and are also often combined with additional technologies for interaction with other parts of a complete system or platform. Integrated subsystems also include spare and replacement modules and sub-assemblies sold as part of the same program for use in or with integrated subsystems sold by the Company. The following table presents the Company's net revenue by platform for the periods presented: First Quarters Ended October 1, 2021 October 2, 2020 Airborne (1) $ 116,564 $ 87,249 Land (2) 35,857 37,551 Naval (3) 39,977 46,282 Other (4) 32,615 34,539 Total Net Revenues $ 225,013 $ 205,621 (1) Airborne platform includes products that relate to personnel, equipment, or pieces of equipment designed for airborne applications. (2) Land platform includes products that relate to fixed or mobile equipment, or pieces of equipment for personnel, weapon systems, vehicles and support elements operating on land. (3) Naval platform includes products that relate to personnel, equipment, or pieces of equipment designed for naval operations. (4) All platforms other than Airborne, Land or Naval. The geographic distribution of the Company’s identifiable long-lived assets is summarized as follows: U.S. Europe Asia Pacific Eliminations Total October 1, 2021 $ 123,581 $ 5,108 $ 5 $ — $ 128,694 July 2, 2021 $ 123,009 $ 5,509 $ 6 $ — $ 128,524
Customers Comprising Ten Percent or More Revenues	Customers comprising 10% or more of the Company’s revenues for the periods shown are as follows: First Quarters Ended October 1, 2021 October 2, 2020 U.S. Navy 17 % * Raytheon Technologies 14 % 23 % Lockheed Martin Corporation 13 % 19 % 44 % 42 % * Indicates that the amount is less than 10% of the Company's revenue for the respective period.

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 01, 2021	Oct. 02, 2020	Jul. 02, 2021
Significant Accounting Policies [Line Items]
Percentage of revenue recognized	69.00%
Unbilled receivables and costs in excess of billings	$ 194,367		$ 162,921
Contract liability balance	29,438		$ 35,201
Revenue recognized in the contract liability balance	13,137	$ 9,030
Factored accounts receivable	$ 373,904
Minimum
Significant Accounting Policies [Line Items]
Standard warranty period	12 months
Extended warranty period	12 months
Maximum
Significant Accounting Policies [Line Items]
Standard warranty period	36 months
Extended warranty period	36 months
Transferred over Time
Significant Accounting Policies [Line Items]
Percentage of revenue recognized	53.00%	36.00%
Ship and bill
Significant Accounting Policies [Line Items]
Percentage of revenue recognized	47.00%	64.00%

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Basic and Diluted Weighted Average Shares Outstanding (Details) - shares shares in Thousands	3 Months Ended
	Oct. 01, 2021	Oct. 02, 2020
Earnings Per Share [Abstract]
Basic weighted-average shares outstanding (in shares)	55,376	54,883
Effect of dilutive equity instruments (in shares)	0	456
Diluted weighted-average shares outstanding (in shares)	55,376	55,339
Antidilutive securities excluded from computation of earnings per share (in shares)	474	203

Acquisitions - Narrative (Detai

Acquisitions - Narrative (Details) - USD ($) $ in Thousands	Sep. 27, 2021	May 28, 2021	May 27, 2021	Dec. 30, 2020	Dec. 07, 2020	Oct. 01, 2021	Jul. 02, 2021
Business Acquisition [Line Items]
Goodwill						$ 805,315	$ 804,906
Pentek
Business Acquisition [Line Items]
Total consideration			$ 65,000
Useful life of acquired assets			15 years
Estimated fair value of identifiable intangible assets			$ 24,110
Goodwill			35,477
Tax deductible goodwill						$ 29,703
Pentek | Customer Relationships
Business Acquisition [Line Items]
Finite-lived intangible assets acquired			$ 15,560
Useful life of acquired assets			21 years
Pentek | Developed Technology
Business Acquisition [Line Items]
Finite-lived intangible assets acquired			$ 6,340
Useful life of acquired assets			7 years
Pentek | Backlog
Business Acquisition [Line Items]
Useful life of acquired assets			1 year
Estimated fair value of identifiable intangible assets			$ 2,210
Physical Optics Corporation
Business Acquisition [Line Items]
Total consideration					$ 310,000
Estimated fair value of identifiable intangible assets				$ 116,000
Goodwill				155,416
Post-closing adjustments		$ 2,641
Physical Optics Corporation | Customer Relationships
Business Acquisition [Line Items]
Finite-lived intangible assets acquired				$ 83,000
Useful life of acquired assets				11 years
Physical Optics Corporation | Developed Technology
Business Acquisition [Line Items]
Finite-lived intangible assets acquired				$ 25,000
Useful life of acquired assets				9 years
Physical Optics Corporation | Backlog
Business Acquisition [Line Items]
Finite-lived intangible assets acquired				$ 8,000
Useful life of acquired assets				1 year
Avalex
Business Acquisition [Line Items]
Total consideration	$ 155,000

Acquisitions - Net Purchase Pri

Acquisitions - Net Purchase Price and Fair Values of Assets and Liabilities Acquired (Details) - USD ($) $ in Thousands	May 27, 2021	Dec. 30, 2020	Oct. 01, 2021	Jul. 02, 2021
Estimated fair value of tangible assets acquired and liabilities assumed
Goodwill			$ 805,315	$ 804,906
Pentek
Business Combination, Consideration Transferred [Abstract]
Cash paid at closing	$ 65,668
Less cash acquired	(746)
Net purchase price	64,922
Estimated fair value of tangible assets acquired and liabilities assumed
Cash	746
Accounts receivable	1,370
Inventory	6,575
Fixed assets	152
Other current and non-current assets	2,864
Accounts payable	(1,016)
Accrued expenses	(520)
Other current and non-current liabilities	(4,090)
Estimated fair value of net tangible assets acquired	6,081
Estimated fair value of identifiable intangible assets	24,110
Goodwill	35,477
Estimated fair value of net assets acquired	$ 65,668
Physical Optics Corporation
Business Combination, Consideration Transferred [Abstract]
Cash paid at closing		$ 251,229
Cash paid post closing		61,626
Working capital and net debt adjustment		(2,096)
Less cash acquired		(2,855)
Net purchase price		307,904
Estimated fair value of tangible assets acquired and liabilities assumed
Cash		2,855
Accounts receivable		28,022
Inventory		11,125
Fixed assets		23,236
Other current and non-current assets		16,453
Accounts payable		(3,777)
Accrued expenses		(5,572)
Other current and non-current liabilities		(32,999)
Estimated fair value of net tangible assets acquired		39,343
Estimated fair value of identifiable intangible assets		116,000
Goodwill		155,416
Estimated fair value of net assets acquired		$ 310,759

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Oct. 01, 2021	Jul. 02, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 148,747	$ 141,774
Work in process	63,380	58,087
Finished goods	22,276	21,779
Total	$ 234,403	$ 221,640

Goodwill (Details)

Goodwill (Details) $ in Thousands	3 Months Ended
	Oct. 01, 2021USD ($)reporting_unit
Goodwill [Line Items]
Number of reporting units | reporting_unit	2
Goodwill [Roll Forward]
Beginning Balance	$ 804,906
Ending Balance	805,315
Physical Optics Corporation
Goodwill [Roll Forward]
Goodwill adjustment	157
Pentek
Goodwill [Roll Forward]
Goodwill adjustment	$ 252

Restructuring - Expenses by Rep

Restructuring - Expenses by Reportable Segment for Restructuring Plans (Details) - Severance & Related $ in Thousands	3 Months Ended
	Oct. 01, 2021USD ($)
Restructuring Reserve [Roll Forward]
Balance at July 2, 2021	$ 1,006
Restructuring and other charges	7,338
Cash paid	(2,009)
Balance at October 1, 2021	$ 6,335

Restructuring - Additional Info

Restructuring - Additional Information (Details) $ in Thousands	3 Months Ended
	Oct. 01, 2021USD ($)position	Oct. 02, 2020USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges	$ 12,274	$ 1,297
Number of positions eliminated | position	100
Other Members
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges	$ 4,936

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 01, 2021	Oct. 02, 2020
Income Tax Disclosure [Abstract]
Income tax (benefit) expense	$ (441)	$ 2,198
(Loss) income before income taxes	(7,581)	17,996
Discrete tax provision (benefit)	$ 715	$ (2,480)

Debt (Details)

Debt (Details) - USD ($)	Sep. 28, 2018	Oct. 01, 2021	Oct. 02, 2020	Jul. 02, 2021
Debt Instrument [Line Items]
Long-term debt		$ 200,000,000		$ 200,000,000
Interest expense		595,000	$ 0
Amount of outstanding letter of credit		963,000
Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 750,000,000
Term of revolving credit facility	5 years
Term Loan
Debt Instrument [Line Items]
Debt issuance costs		$ 2,689,000

Employee Benefit Plan (Details)

Employee Benefit Plan (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 01, 2021	Oct. 02, 2020
Defined Benefit Plan Disclosure [Line Items]
Pension benefit plan, net of tax	$ 48	$ 31
Net periodic benefit cost	269	$ 413
Pension Plan
Defined Benefit Plan Disclosure [Line Items]
Expected employer contributions	1,165
Pension Plan | Other Noncurrent Liabilities
Defined Benefit Plan Disclosure [Line Items]
Net funded status of plan, liability position	$ 9,691

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) - USD ($) shares in Thousands, $ in Thousands	Oct. 28, 2020	Oct. 01, 2021	Jul. 02, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocation of recognized period costs, capitalized amount		$ 767	$ 796
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for issuance under stock incentive plan (in shares)	500	2,300
Shares available for future grant (in shares)		428
Purchase price as a percentage of the lesser of the market value of such shares at either the beginning or the end of each nine-month offering period		85.00%
Percentage of employee compensation that may be uses to purchase common stock through payroll deductions, maximum		10.00%
2018 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for issuance under stock incentive plan (in shares)		6,782
Shares available for future grant (in shares)		3,529
Number of additional shares authorized	3,000
2005 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future grant (in shares)		710
2005 Stock Incentive Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term of stock option		7 years

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Nonvested Restricted Stock (Details) - Restricted Stock shares in Thousands	3 Months Ended
	Oct. 01, 2021$ / sharesshares
Number of Shares
Beginning Balance (in shares) | shares	1,013
Granted (in shares) | shares	680
Vested (in shares) | shares	(398)
Forfeited (in shares) | shares	(98)
Ending Balance (in shares) | shares	1,197
Weighted Average Grant Date Fair Value
Beginning Balance (usd per share) | $ / shares	$ 70.77
Granted (usd per share) | $ / shares	51.33
Vested (usd per share) | $ / shares	60.20
Forfeited (usd per share) | $ / shares	70.24
Ending Balance (usd per share) | $ / shares	$ 63.28

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock-Based Compensation Expenses (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 01, 2021	Oct. 02, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense before tax	$ 9,527	$ 7,184
Income taxes	(2,477)	(1,868)
Net compensation expense	7,050	5,316
Cost of revenues
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense before tax	559	295
Selling, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense before tax	7,561	5,676
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense before tax	$ 1,407	$ 1,213

Operating Segment, Geographic_3

Operating Segment, Geographic Information and Significant Customers - Geographic Distribution of Revenues and Long Lived Assets from Continuing Operations (Details) $ in Thousands	3 Months Ended
	Oct. 01, 2021USD ($)segment	Oct. 02, 2020USD ($)	Jul. 02, 2021USD ($)
Segment Reporting [Abstract]
Number of operating segments | segment	1
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	$ 225,013	$ 205,621
Identifiable long-lived assets	128,694		$ 128,524
Components
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	35,065	50,296
Modules and Sub-assemblies
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	59,030	17,466
Integrated Subsystems
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	130,918	137,859
Total Sensor & Effector
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	124,287	132,392
Radar
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	58,904	72,409
Electronic Warfare
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	33,941	36,888
Other Sensor & Effector
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	31,442	23,095
C4I
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	83,401	53,781
Other End Applications
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	17,325	19,448
Domestic
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	189,248	178,743
International/Foreign Military Sales
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	35,765	26,878
US
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	213,741	195,847
Europe
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	11,187	9,663
Asia Pacific
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	85	111
Reportable Geographical Components | US
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	215,300	196,087
Identifiable long-lived assets	123,581		123,009
Reportable Geographical Components | Europe
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	11,916	10,007
Identifiable long-lived assets	5,108		5,509
Reportable Geographical Components | Asia Pacific
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	85	111
Identifiable long-lived assets	5		6
Geography Eliminations
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	(2,288)	(584)
Identifiable long-lived assets	0		$ 0
Geography Eliminations | US
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	1,559	240
Geography Eliminations | Europe
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	729	344
Geography Eliminations | Asia Pacific
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenues	$ 0	$ 0

Operating Segment, Geographic_4

Operating Segment, Geographic Information and Platform - Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 01, 2021	Oct. 02, 2020
Revenue from External Customer [Line Items]
Net revenues	$ 225,013	$ 205,621
Airborne
Revenue from External Customer [Line Items]
Net revenues	116,564	87,249
Land
Revenue from External Customer [Line Items]
Net revenues	35,857	37,551
Naval
Revenue from External Customer [Line Items]
Net revenues	39,977	46,282
Other
Revenue from External Customer [Line Items]
Net revenues	$ 32,615	$ 34,539

Operating Segment, Geographic_5

Operating Segment, Geographic Information and Significant Customers - Customers Comprising Ten Percent or more Revenues (Details) - Customer Concentration Risk - Sales Revenue, Net	3 Months Ended
	Oct. 01, 2021	Oct. 02, 2020
Raytheon Company
Revenue, Major Customer [Line Items]
Concentration risk, percentage	14.00%	23.00%
Lockheed Martin Corporation
Revenue, Major Customer [Line Items]
Concentration risk, percentage	13.00%	19.00%
Three Major Customers, Cumulative
Revenue, Major Customer [Line Items]
Concentration risk, percentage	44.00%	42.00%
U.S. Navy
Revenue, Major Customer [Line Items]
Concentration risk, percentage	17.00%

Commitments And Contingencies (

Commitments And Contingencies (Details) - USD ($) $ in Thousands	Jun. 23, 2021	Oct. 01, 2021
Embedded Reps of America, LLC Legal Claim
Long-term Purchase Commitment [Line Items]
Damages sought, value	$ 9,000
Non-cancelable purchase commitments
Long-term Purchase Commitment [Line Items]
Purchase commitments for less than one year		$ 154,689

Subsequent Events (Details)

Subsequent Events (Details) - Avalex - USD ($) $ in Thousands	Nov. 05, 2021	Sep. 27, 2021
Subsequent Event [Line Items]
Total consideration		$ 155,000
Subsequent Event
Subsequent Event [Line Items]
Total consideration	$ 155,000