Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Mar. 29, 2014 | Apr. 25, 2014 | |
Document Documentand Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 29-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'ktcc | ' |
Entity Registrant Name | 'KEY TRONIC CORP | ' |
Entity Central Index Key | '0000719733 | ' |
Current Fiscal Year End Date | '--06-28 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 10,539,503 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 29, 2014 | Jun. 29, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $2,241 | $10,819 |
Trade receivables, net of allowances of $37 and $40, respectively | 52,637 | 47,009 |
Inventories | 46,086 | 44,664 |
Deferred income tax asset | 1,516 | 1,767 |
Other | 9,464 | 7,508 |
Total current assets | 111,944 | 111,767 |
Property, plant and equipment—net | 21,188 | 17,911 |
Other assets: | ' | ' |
Deferred income tax asset | 3,052 | 3,179 |
Other | 1,914 | 2,273 |
Goodwill | 1,740 | 0 |
Other intangible assets | 2,138 | 0 |
Total other assets | 8,844 | 5,452 |
Total assets | 141,976 | 135,130 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ' | ' |
Accounts payable | 28,540 | 26,400 |
Accrued compensation and vacation | 6,297 | 7,413 |
Current portion of other long-term obligations | 0 | 576 |
Other | 5,021 | 3,551 |
Total current liabilities | 39,858 | 37,940 |
Long-term liabilities: | ' | ' |
Deferred income tax liability | 0 | 1,585 |
Other long-term obligations | 564 | 1,445 |
Total long-term liabilities | 564 | 3,030 |
Total liabilities | 40,422 | 40,970 |
Commitments and contingencies (Note 8) | ' | ' |
Shareholders’ equity: | ' | ' |
Common stock, no par value—shares authorized 25,000; issued and outstanding 10,533 and 10,502 shares, respectively | 44,015 | 43,369 |
Retained earnings | 55,711 | 49,478 |
Accumulated other comprehensive income | 1,828 | 1,313 |
Total shareholders’ equity | 101,554 | 94,160 |
Total liabilities and shareholders’ equity | $141,976 | $135,130 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 29, 2014 | Jun. 29, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowance for Doubtful Accounts Receivable, Current | $40 | $37 |
Common stock - par value | $0 | $0 |
Common stock - shares authorized | 25,000 | 25,000 |
Common stock - shares issued | 10,533 | 10,502 |
Common stock - shares outstanding | 10,533 | 10,502 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 29, 2014 | Mar. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net sales | $77,043 | $84,343 | $233,267 | $276,418 |
Cost of sales | 70,436 | 76,483 | 213,088 | 249,587 |
Gross profit | 6,607 | 7,860 | 20,179 | 26,831 |
Operating expenses | ' | ' | ' | ' |
Research, development and engineering expenses | 1,414 | 1,329 | 4,181 | 3,804 |
Selling, general and administrative expenses | 2,985 | 2,938 | 8,964 | 8,406 |
Total operating expenses | 4,399 | 4,267 | 13,145 | 12,210 |
Operating income | 2,208 | 3,593 | 7,034 | 14,621 |
Interest expense, net | 12 | 38 | 50 | 246 |
Income before income taxes | 2,196 | 3,555 | 6,984 | 14,375 |
Income tax provision | 782 | 692 | 751 | 4,189 |
Net income | $1,414 | $2,863 | $6,233 | $10,186 |
Earnings per share: | ' | ' | ' | ' |
Net income per share — Basic (in dollars per share) | $0.13 | $0.27 | $0.59 | $0.97 |
Weighted average shares outstanding — Basic | 10,533 | 10,489 | 10,523 | 10,488 |
Net income per share — Diluted (in dollars per share) | $0.13 | $0.26 | $0.57 | $0.94 |
Weighted average shares outstanding — Diluted | 10,926 | 10,931 | 10,920 | 10,888 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 29, 2014 | Mar. 30, 2013 |
Comprehensive income: | ' | ' | ' | ' |
Net income | $1,414 | $2,863 | $6,233 | $10,186 |
Other comprehensive income: | ' | ' | ' | ' |
Unrealized gain on foreign exchange contracts, net of tax | 203 | 2,458 | 515 | 3,481 |
Comprehensive income | $1,617 | $5,321 | $6,748 | $13,667 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 29, 2014 | Mar. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Unrealized gain (loss) on foreign exchange contracts, tax | $0.10 | $1.30 | $0.30 | $1.80 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Operating activities: | ' | ' |
Net income | $6,233 | $10,186 |
Adjustments to reconcile net income to cash provided by operating activities: | ' | ' |
Depreciation and amortization | 2,792 | 1,955 |
Excess tax benefit from exercise of stock options | -113 | -103 |
Provision for obsolete inventory | 227 | 422 |
Provision for warranty | 19 | 16 |
Provision for doubtful accounts | 37 | 62 |
Gain (Loss) on Disposition of Assets | 10 | 27 |
Share-based compensation expense | 483 | 647 |
Deferred income taxes | -1,532 | 1,495 |
Changes in operating assets and liabilities: | ' | ' |
Trade receivables | -5,665 | 12,212 |
Inventories | -872 | 10,274 |
Other assets | -1,411 | -2,199 |
Accounts payable | 2,140 | -15,741 |
Accrued compensation and vacation | -1,116 | 460 |
Other liabilities | 1,120 | 1,127 |
Cash provided by operating activities | 2,352 | 20,840 |
Investing activities: | ' | ' |
Payment for acquisition | -6,027 | 0 |
Proceeds from Life Insurance Policies | 0 | 144 |
Purchase of property and equipment | -4,467 | -2,768 |
Cash used in investing activities | -10,494 | -2,624 |
Financing activities: | ' | ' |
Payments of Financing Costs | -23 | -75 |
Principal payments on capital lease obligations | -576 | -542 |
Borrowings under revolving credit agreement | 0 | 66,528 |
Repayment of revolving credit agreement | 0 | -81,539 |
Excess tax benefit from exercise of stock options | 113 | 103 |
Proceeds from exercise of stock options | 50 | 9 |
Cash used in financing activities | -436 | -15,516 |
Net (decrease) increase in cash and cash equivalents | -8,578 | 2,700 |
Cash and cash equivalents, beginning of period | 10,819 | 502 |
Cash and cash equivalents, end of period | 2,241 | 3,202 |
Supplemental cash flow information: | ' | ' |
Interest payments | 56 | 289 |
Income tax payments, net of refunds | $1,850 | $1,781 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY (USD $) | Total | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
In Thousands, unless otherwise specified | ||||
Balances at Jun. 29, 2013 | $94,160 | $43,369 | $49,478 | $1,313 |
Balances (Shares) at Jun. 29, 2013 | ' | 10,502 | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' |
Net income | 6,233 | ' | ' | ' |
Unrealized gain on foreign exchange contracts, net | 515 | ' | ' | 515 |
Exercise of stock options, (Shares) | ' | 31 | ' | ' |
Exercise of stock options | 50 | 50 | ' | ' |
Share-based compensation | 483 | 483 | ' | ' |
Tax benefit from exercise of stock options | 113 | 113 | ' | ' |
Balances at Mar. 29, 2014 | $101,554 | $44,015 | $55,711 | $1,828 |
Balances (Shares) at Mar. 29, 2014 | ' | 10,533 | ' | ' |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Mar. 29, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
BASIS OF PRESENTATION | ' |
Basis of Presentation | |
The consolidated financial statements included herein have been prepared by Key Tronic Corporation and subsidiaries (the Company) pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in our annual consolidated financial statements have been condensed or omitted. The year-end condensed consolidated balance sheet information was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. The financial statements reflect all normal and recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 29, 2013. | |
The Company’s reporting period is a 52/53 week fiscal year ending on the Saturday closest to June 30. The three and nine month periods ended March 29, 2014 and March 30, 2013 were 13 week and 39 week periods, respectively. Fiscal year 2014 will end on June 28, 2014 which is a 52 week year, and fiscal year 2013 which ended on June 29, 2013, was also a 52 week year. | |
Fiscal Year | ' |
The Company’s reporting period is a 52/53 week fiscal year ending on the Saturday closest to June 30. The three and nine month periods ended March 29, 2014 and March 30, 2013 were 13 week and 39 week periods, respectively. Fiscal year 2014 will end on June 28, 2014 which is a 52 week year, and fiscal year 2013 which ended on June 29, 2013, was also a 52 week year. |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Mar. 29, 2014 | |
Accounting Policies [Abstract] | ' |
Significant Accounting Policies | ' |
Significant Accounting Policies | |
Earnings Per Common Share | |
Basic earnings per common share (EPS) is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income by the combination of other potentially dilutive weighted average common shares and the weighted average number of common shares outstanding during the period using the treasury stock method. The computation assumes the proceeds from the exercise of equity awards were used to repurchase common shares at the average market price during the period. The computation of diluted EPS does not assume conversion, exercise, or contingent issuance of common stock equivalent shares that would have an anti-dilutive effect on EPS. | |
Derivative Instruments and Hedging Activities | |
The Company has entered into foreign currency forward contracts which are accounted for as cash flow hedges in accordance with ASC 815, Derivatives and Hedging. The effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive income (AOCI) and is reclassified into earnings in the same period in which the underlying hedged transaction affects earnings. The derivative's effectiveness represents the change in fair value of the hedge that offsets the change in fair value of the hedged item. | |
The Company transacts business in Mexico and is subject to the risk of foreign currency exchange rate fluctuations. The Company enters into foreign currency forward contracts to manage the majority of foreign currency fluctuations for Mexican peso denominated payroll, utility, tax, and accounts payable expenses. The foreign currency forward contracts have terms that are matched to the underlying transactions being hedged. As a result, these transactions fully offset the hedged risk and no ineffectiveness has been recorded. | |
The Company's foreign currency forward contracts potentially expose the Company to credit risk to the extent the counterparties may be unable to meet the terms of the agreement. The Company minimizes such risk by seeking high quality counterparties. The Company's counterparties to the foreign currency forward contracts are major banking institutions. These institutions do not require collateral for the contracts, and the Company believes that the risk of the counterparties failing to meet their contractual obligations is remote. The Company does not enter into derivative instruments for trading or speculative purposes. | |
Income Taxes | |
We compute our interim income tax provision through the use of an estimated annual effective tax rate (ETR) applied to year-to-date operating results and specific events that are discretely recognized as they occur. In determining the estimated annual ETR, we analyze various factors, including projections of our annual earnings, taxing jurisdictions in which the earnings will be generated, the impact of state and local income taxes, our ability to use tax credits and net operating loss carryforwards, and available tax planning alternatives. Discrete items, including the effect of changes in tax laws, tax rates, and certain circumstances with respect to valuation allowances or other unusual or non-recurring tax adjustments, are reflected in the period in which they occur as an addition to, or reduction from, the income tax provision, rather than included in the estimated annual ETR. Refer to Note 5 for further discussions. | |
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences and benefits attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis, as well as operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences and carryforwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities for a change in tax rates is recognized in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amount that is more likely than not to be realized. | |
We utilize a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. We consider many factors when evaluating and estimating our tax positions and tax benefits, which may require periodic adjustments based on new assessments and changes in estimates and which may not accurately forecast actual outcomes. Our policy is to recognize interest and penalties related to the underpayment of income taxes as a component of income tax expense. To date, we have not incurred charges for interest or penalties in relation to the underpayment of income taxes. The tax years 1998 through the present remain open to examination by the major U.S. taxing jurisdictions to which we are subject. | |
Recently Issued Accounting Standards | |
Management has assessed the potential impact of recently issued, but not yet effective, accounting standards and determined that the provisions are either not applicable to the Company, or are not anticipated to have a material impact on the consolidated financial statements. |
INVENTORIES
INVENTORIES | 9 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
INVENTORIES | ' | |||||||
Inventories | ||||||||
The components of inventories consist of the following (in thousands): | ||||||||
29-Mar-14 | 29-Jun-13 | |||||||
Finished goods | $ | 5,789 | $ | 7,097 | ||||
Work-in-process | 5,583 | 5,098 | ||||||
Raw materials and supplies | 34,714 | 32,469 | ||||||
$ | 46,086 | $ | 44,664 | |||||
LONGTERM_DEBT
LONG-TERM DEBT | 9 Months Ended |
Mar. 29, 2014 | |
Debt Disclosure [Abstract] | ' |
LONG-TERM DEBT | ' |
Long-Term Debt | |
On October 15, 2010, the Company entered into an amended credit agreement with Wells Fargo Bank, N.A. thereby increasing its revolving line of credit facility for up to $30.0 million. On November 8, 2013, the Company entered into a third amendment to the credit agreement extending the term to October 15, 2018. The agreement specifies that the proceeds of the revolving line of credit be used primarily for working capital and general corporate purposes of the Company and its subsidiaries. Borrowings under this revolving line of credit bear interest at either a “Base Rate” or a “Fixed Rate”, as elected by the Company. The base rate is the higher of the Wells Fargo Bank prime rate, daily one month London Interbank Offered Rate (LIBOR) plus 1.5%, or the Federal Funds rate plus 1.5%. The fixed rate is LIBOR plus 1.75%, LIBOR plus 2.00%, or LIBOR plus 2.25% depending on the level of the Company’s trailing four quarters Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA). The revolving line of credit is secured by substantially all of the assets of the Company. | |
The Company must comply with certain financial covenants, including a cash flow leverage ratio and an asset coverage ratio. The credit agreement requires the Company to maintain a minimum profit threshold, limits the maximum operating lease expenditures and restricts the Company from declaring or paying dividends in cash or stock. The Company is in compliance with all financial covenants for all periods presented. | |
As of March 29, 2014, the Company had availability to borrow $30.0 million under the line of credit. The company did not have an outstanding balance on the line of credit as of March 29, 2014 or June 29, 2013. |
INCOME_TAXES
INCOME TAXES | 9 Months Ended |
Mar. 29, 2014 | |
Income Tax Disclosure [Abstract] | ' |
INCOME TAXES | ' |
Income Taxes | |
The Company expects to repatriate a portion of its foreign earnings based on increased sales growth driving additional capital requirements domestically, cash requirements for potential acquisitions and to implement certain tax strategies. The Company currently expects to repatriate approximately $9.9 million of foreign earnings in the future. As such, these earnings would be recognized in the United States, and the Company would be subject to U.S. federal income taxes and potential withholding taxes in foreign jurisdictions. Both the domestic tax and estimated withholding tax of expected repatriation of foreign earnings have been recorded as part of deferred taxes as of March 29, 2014. All other unremitted foreign earnings are expected to remain permanently reinvested for planned fixed assets purchases and improvements in foreign locations. | |
Mexican tax reform was signed into law in December 2013 creating a discrete benefit of approximately $1.5 million that was recognized during the second quarter as a result of a change in applicable tax regimes. In recent years, the Company had been subject to a Mexican business flat tax called Impuesto Empresarial a Tasa Unica (IETU). However, effective January 1, 2014, IETU was repealed as part of a larger reform of the Mexican tax system. The Company is now subject to the general Mexican tax regime (ISR). The effective tax rate for the nine months ended March 29, 2014 is based on the anticipated annualized effects of both the IETU and ISR regimes for fiscal year 2014. | |
The Company has available approximately $5.0 million of gross federal research and development tax credits as of March 29, 2014. ASC 740 requires the Company to recognize in its financial statements uncertainties in tax positions taken that may not be sustained upon examination by the taxing authorities. Accordingly, as of March 29, 2014, the Company has recorded $3.1 million to date of gross unrecognized tax benefits associated with these federal tax credits, resulting in a net deferred tax benefit of approximately $1.9 million. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 9 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
EARNINGS PER SHARE | ' | |||||||
Earnings Per Share | ||||||||
The following table presents a reconciliation of the denominator in the basic and diluted EPS calculation and the number of antidilutive common share awards that were not included in the diluted earnings per share calculation. These antidilutive securities occur when equity awards outstanding have an option price greater than the average market price for the period. | ||||||||
Three Months Ended | ||||||||
(in thousands, except per share information) | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Net income | $ | 1,414 | $ | 2,863 | ||||
Weighted average shares outstanding—basic | 10,533 | 10,489 | ||||||
Effect of dilutive common stock options | 393 | 442 | ||||||
Weighted average shares outstanding—diluted | 10,926 | 10,931 | ||||||
Earnings per share—basic | $ | 0.13 | $ | 0.27 | ||||
Earnings per share—diluted | $ | 0.13 | $ | 0.26 | ||||
Antidilutive options not included in diluted earnings per share | 208 | — | ||||||
Nine Months Ended | ||||||||
(in thousands, except per share information) | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Net income | $ | 6,233 | $ | 10,186 | ||||
Weighted average shares outstanding—basic | 10,523 | 10,488 | ||||||
Effect of dilutive common stock options | 397 | 400 | ||||||
Weighted average shares outstanding—diluted | 10,920 | 10,888 | ||||||
Earnings per share—basic | $ | 0.59 | $ | 0.97 | ||||
Earnings per share—diluted | $ | 0.57 | $ | 0.94 | ||||
Antidilutive options not included in diluted earnings per share | 208 | — | ||||||
SHAREBASED_COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended | |||||||||||||||
Mar. 29, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | |||||||||||||||
Share-based Compensation | ||||||||||||||||
The Company’s incentive plan provides for equity and liability awards to employees and non-employee directors in the form of stock options, stock appreciation rights (SARs), restricted stock, restricted stock units, stock awards, stock units, performance shares, performance units, and other stock-based or cash-based awards. Compensation cost is recognized on a straight-line basis over the requisite employee service period, which is generally the vesting period, and is recorded as employee compensation expense in cost of goods sold and selling general and administrative expenses. Share-based compensation is recognized only for those awards that are expected to vest, with forfeitures estimated at the date of grant based on historical experience and future expectations. | ||||||||||||||||
In addition to service conditions, SARs contain a performance condition. The additional performance condition is based upon the achievement of Return on Invested Capital (ROIC) goals relative to a peer group. All awards with performance conditions are measured over the vesting period and are charged to compensation expense over the requisite service period based on the number of shares expected to vest. The SARs cliff vest after a three-year period from date of grant and expire five years from date of grant. | ||||||||||||||||
The grant date fair value for the awards granted below were estimated using the Black Scholes option valuation method: | ||||||||||||||||
July 31, 2013 | July 25, 2012 | January 26, 2012 | 27-Jul-11 | |||||||||||||
SARs Granted | 213,166 | 210,666 | 32,000 | 184,666 | ||||||||||||
Strike Price | $ | 11.34 | $ | 7.44 | $ | 6.3 | $ | 4.4 | ||||||||
Fair Value | $ | 4.67 | $ | 3.71 | $ | 3.08 | $ | 2.2 | ||||||||
Total share-based compensation expense recognized during the three months ended March 29, 2014 and March 30, 2013 was approximately $148,000 and $222,000, respectively. Total share-based compensation expense recognized during the nine months ended March 29, 2014 and March 30, 2013 was approximately $483,000 and $647,000, respectively. As of March 29, 2014 total unrecognized compensation expense related to unvested share-based compensation arrangements was approximately $1.1 million. This expense is expected to be recognized over a weighted average period of 1.95 years. | ||||||||||||||||
No options to purchase shares of common stock or SARs were exercised during the three months ended March 29, 2014 or the three months ended March 30, 2013. During the nine months ended March 29, 2014, 19,930 options to purchase shares of common stock were exercised and 30,000 SARs were exercised, with an intrinsic value of approximately $0.3 million. Options to purchase 7,500 shares of common stock were exercised during the nine months ended March 30, 2013, with an immaterial amount of intrinsic value. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Mar. 29, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
Commitments and Contingencies | |
Purchase Commitments | |
The Company had no material firm commitments to contractors or suppliers for capital expenditures as of March 29, 2014. | |
Leases | |
The Company leases certain facilities, equipment, and automobiles under non-cancelable lease agreements. These agreements expire on various dates over the next ten years. | |
Warranties | |
The Company provides warranties on certain product sales. Allowances for estimated warranty costs are recorded during the period of sale. The determination of such allowances requires the Company to make estimates of product return rates and expected costs to repair or to replace the products under warranty. If actual return rates and/or repair and replacement costs differ significantly from management’s estimates, adjustments to recognize additional cost of sales may be required in future periods. The Company’s warranty reserve was approximately $8,000 and $9,000 as of March 29, 2014 and June 29, 2013, respectively. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended | |||||||||||||||
Mar. 29, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
The Company has adopted ASC 820, Fair Value Measurements, which defines fair value, establishes a framework for assets and liabilities being measured and reported at fair value and expands disclosures about fair value measurements. There are three levels of fair value hierarchy inputs used to value assets and liabilities which include: Level 1 – inputs are quoted market prices for identical assets or liabilities; Level 2 – inputs other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 – inputs are unobservable inputs for the asset or liability. | ||||||||||||||||
The following table summarizes the fair value of assets/(liabilities) of the Company’s derivatives that are required to be measured on a recurring basis as of March 29, 2014 and June 29, 2013 (in thousands): | ||||||||||||||||
29-Mar-14 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Fair Value | ||||||||||||||||
Financial Assets: | ||||||||||||||||
Foreign currency forward contracts | $ | — | $ | 2,833 | $ | — | $ | 2,833 | ||||||||
Financial Liabilities: | ||||||||||||||||
Foreign currency forward contracts | $ | — | $ | (59 | ) | $ | — | $ | (59 | ) | ||||||
29-Jun-13 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Fair Value | ||||||||||||||||
Financial Assets: | ||||||||||||||||
Foreign currency forward contracts | $ | — | $ | 2,429 | $ | — | $ | 2,429 | ||||||||
Financial Liabilities: | ||||||||||||||||
Foreign currency forward contracts | $ | — | $ | (434 | ) | $ | — | $ | (434 | ) | ||||||
The Company currently has forward contracts to hedge known future cash outflows for expenses denominated in the Mexican peso. These contracts are measured on a recurring basis based on the foreign currency spot rates and forward rates quoted by banks or foreign currency dealers. These contracts are marked to market using level 2 input criteria every period with the unrealized gain or loss, net of tax, reported as a component of shareholders’ equity in accumulated other comprehensive income, as they qualify for hedge accounting. | ||||||||||||||||
The carrying values of cash and cash equivalents, accounts receivable and current liabilities reflected on the balance sheets at March 29, 2014 and June 29, 2013, reasonably approximate their fair value. |
DERIVATIVE_FINANCIAL_INSTRUMEN
DERIVATIVE FINANCIAL INSTRUMENTS | 9 Months Ended | |||||||||||||||
Mar. 29, 2014 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | ' | |||||||||||||||
Derivative Financial Instruments | ||||||||||||||||
As of March 29, 2014, the Company had outstanding foreign currency forward contracts with a total notional amount of $67.4 million. The maturity dates for these contracts extend through June 2017. For the three months ended March 29, 2014, the Company entered into foreign currency forward contracts of $5.0 million and settled $5.7 million of such contracts. For the three months ended March 30, 2013, the Company entered into $10.9 million of foreign currency forward contracts and settled $5.8 million of such contracts. | ||||||||||||||||
For the nine months ended March 29, 2014, the Company entered into forward contracts of $15.2 million and settled $17.6 million of such contracts. During the same period of the previous year, the Company entered into foreign currency forward contracts of $21.5 million and settled $17.0 million of such contracts. | ||||||||||||||||
The following table summarizes the fair value of derivative instruments in the Consolidated Balance Sheet as of March 29, 2014 and June 29, 2013 (in thousands): | ||||||||||||||||
29-Mar-14 | 29-Jun-13 | |||||||||||||||
Derivatives Designated as Hedging Instruments | Balance Sheet Location | Fair Value | Fair Value | |||||||||||||
Foreign currency forward contracts | Other current assets | $ | 2,020 | $ | 760 | |||||||||||
Foreign currency forward contracts | Other long-term assets | $ | 813 | $ | 1,669 | |||||||||||
Foreign currency forward contracts | Other current liabilities | $ | — | $ | (145 | ) | ||||||||||
Foreign currency forward contracts | Other long-term liabilities | $ | (59 | ) | $ | (289 | ) | |||||||||
The following tables summarize the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Income for the three months ended March 29, 2014 and March 30, 2013, respectively (in thousands): | ||||||||||||||||
Derivatives Designated as Hedging Instruments | AOCI Balance | Effective | Effective Portion | AOCI Balance | ||||||||||||
as of | Portion | Reclassified From | as of | |||||||||||||
December 28, | Recorded In | AOCI Into | March 29, | |||||||||||||
2013 | AOCI | Cost of Sales | 2014 | |||||||||||||
Settled foreign currency forward contracts for the three months ended March 29, 2014 | $ | 110 | $ | 11 | $ | (121 | ) | $ | — | |||||||
Unsettled foreign currency forward contracts | 1,515 | 313 | — | 1,828 | ||||||||||||
Total | $ | 1,625 | $ | 324 | $ | (121 | ) | $ | 1,828 | |||||||
Derivatives Designated as Hedging Instruments | AOCI Balance | Effective | Effective Portion | AOCI Balance | ||||||||||||
as of | Portion | Reclassified From | as of March 30, | |||||||||||||
December 29, | Recorded In | AOCI Into | 2013 | |||||||||||||
2012 | AOCI | Cost of Sales | ||||||||||||||
Settled foreign currency forward contracts for the three months ended March 30, 2013 | $ | (9 | ) | $ | 184 | $ | (175 | ) | $ | — | ||||||
Unsettled foreign currency forward contracts | 373 | 2,449 | — | 2,822 | ||||||||||||
Total | $ | 364 | $ | 2,633 | $ | (175 | ) | $ | 2,822 | |||||||
The following tables summarize the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Income for the nine months ended March 29, 2014 and March 30, 2013, respectively (in thousands): | ||||||||||||||||
Derivatives Designated as Hedging Instruments | AOCI Balance | Effective | Effective Portion | AOCI Balance | ||||||||||||
as of June 29, | Portion | Reclassified From | as of | |||||||||||||
2013 | Recorded In | AOCI Into | March 29, | |||||||||||||
AOCI | Cost of Sales | 2014 | ||||||||||||||
Settled foreign currency forward contracts for the nine months ended March 29, 2014 | $ | 85 | $ | 124 | $ | (209 | ) | $ | — | |||||||
Unsettled foreign currency forward contracts | 1,228 | 600 | — | 1,828 | ||||||||||||
Total | $ | 1,313 | $ | 724 | $ | (209 | ) | $ | 1,828 | |||||||
Derivatives Designated as Hedging Instruments | AOCI Balance | Effective | Effective Portion | AOCI Balance | ||||||||||||
as of June 30, | Portion | Reclassified From | as of March 30, | |||||||||||||
2012 | Recorded In | AOCI Into | 2013 | |||||||||||||
AOCI | Cost of Sales | |||||||||||||||
Settled foreign currency forward contracts for the nine months ended March 30, 2013 | $ | (162 | ) | $ | 675 | $ | (513 | ) | $ | — | ||||||
Unsettled foreign currency forward contracts | (497 | ) | 3,319 | — | 2,822 | |||||||||||
Total | $ | (659 | ) | $ | 3,994 | $ | (513 | ) | $ | 2,822 | ||||||
The Company does not enter into derivative instruments for trading or speculative purposes. The Company’s counterparties to the foreign currency forward contracts are major financial institutions. These institutions do not require collateral for the contracts and the Company believes that the risk of the counterparties failing to meet their contractual obligations is remote. As of March 29, 2014, the net amount of unrealized gain expected to be reclassified into earnings within the next 12 months is approximately $1.4 million. As of March 29, 2014, the Company does not have any foreign exchange contracts with credit-risk-related contingent features. |
ACQUISITION
ACQUISITION | 9 Months Ended | |||
Mar. 29, 2014 | ||||
Business Combinations [Abstract] | ' | |||
Business Combination Disclosure [Text Block] | ' | |||
Acquisition | ||||
On July 1, 2013, the Company acquired substantially all of the assets of Sabre Assembly & Manufacturing Co. of Texas (“Sabre”), a sheet metal fabrication company with facilities located in Juarez, Mexico. The acquisition of Sabre enables the Company to offer metal fabrication directly to its customers, in combination with plastic molding, PCB assembly, complete product assembly, design engineering and testing engineering services. Under the terms of the transaction, the assets acquired included manufacturing equipment, inventory, customer relationships and non-compete agreements with key employees. No debt or liabilities were assumed. The total cash payment of $6.0 million was funded through existing cash. The Company incurred approximately $50,000 of costs related to due diligence and closing this acquisition. | ||||
The following table summarizes the fair values of the assets acquired as of the date of acquisition (in thousands): | ||||
Fair Values | ||||
At July 1, 2013 | ||||
Current Assets | $ | 777 | ||
Fixed Assets | 1,168 | |||
Non-Compete Agreements | 372 | |||
Customer Relationships | 1,970 | |||
Goodwill | 1,740 | |||
Fair value of assets acquired | $ | 6,027 | ||
The Sabre acquisition is accounted for using the acquisition method of accounting whereby the total purchase price is allocated to tangible and intangible assets and liabilities based on their fair values on the date of acquisition. The Company determines the purchase price allocations on the acquisition based on estimates of the fair values of the assets acquired. Goodwill recorded in connection with the above acquisition is primarily attributable to the synergies expected to arise after the Company’s acquisition of the business and the assembled workforce of the acquired business. The goodwill is not amortized for financial accounting purposes but is deductible for tax purposes over a 15-year period. The intangibles related to non-compete agreements and customer relationships will be amortized using the straight-line method over five and ten years, respectively. The carrying values of goodwill and intangibles reasonably approximate their fair values as of March 29, 2014. |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Mar. 29, 2014 | |
Accounting Policies [Abstract] | ' |
Earnings Per Common Share | ' |
Earnings Per Common Share | |
Basic earnings per common share (EPS) is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income by the combination of other potentially dilutive weighted average common shares and the weighted average number of common shares outstanding during the period using the treasury stock method. The computation assumes the proceeds from the exercise of equity awards were used to repurchase common shares at the average market price during the period. The computation of diluted EPS does not assume conversion, exercise, or contingent issuance of common stock equivalent shares that would have an anti-dilutive effect on EPS. | |
Derivatives | ' |
Derivative Instruments and Hedging Activities | |
The Company has entered into foreign currency forward contracts which are accounted for as cash flow hedges in accordance with ASC 815, Derivatives and Hedging. The effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive income (AOCI) and is reclassified into earnings in the same period in which the underlying hedged transaction affects earnings. The derivative's effectiveness represents the change in fair value of the hedge that offsets the change in fair value of the hedged item. | |
The Company transacts business in Mexico and is subject to the risk of foreign currency exchange rate fluctuations. The Company enters into foreign currency forward contracts to manage the majority of foreign currency fluctuations for Mexican peso denominated payroll, utility, tax, and accounts payable expenses. The foreign currency forward contracts have terms that are matched to the underlying transactions being hedged. As a result, these transactions fully offset the hedged risk and no ineffectiveness has been recorded. | |
The Company's foreign currency forward contracts potentially expose the Company to credit risk to the extent the counterparties may be unable to meet the terms of the agreement. The Company minimizes such risk by seeking high quality counterparties. The Company's counterparties to the foreign currency forward contracts are major banking institutions. These institutions do not require collateral for the contracts, and the Company believes that the risk of the counterparties failing to meet their contractual obligations is remote. The Company does not enter into derivative instruments for trading or speculative purposes. | |
Income Taxes | ' |
Income Taxes | |
We compute our interim income tax provision through the use of an estimated annual effective tax rate (ETR) applied to year-to-date operating results and specific events that are discretely recognized as they occur. In determining the estimated annual ETR, we analyze various factors, including projections of our annual earnings, taxing jurisdictions in which the earnings will be generated, the impact of state and local income taxes, our ability to use tax credits and net operating loss carryforwards, and available tax planning alternatives. Discrete items, including the effect of changes in tax laws, tax rates, and certain circumstances with respect to valuation allowances or other unusual or non-recurring tax adjustments, are reflected in the period in which they occur as an addition to, or reduction from, the income tax provision, rather than included in the estimated annual ETR. Refer to Note 5 for further discussions. | |
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences and benefits attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis, as well as operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences and carryforwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities for a change in tax rates is recognized in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amount that is more likely than not to be realized. | |
We utilize a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. We consider many factors when evaluating and estimating our tax positions and tax benefits, which may require periodic adjustments based on new assessments and changes in estimates and which may not accurately forecast actual outcomes. Our policy is to recognize interest and penalties related to the underpayment of income taxes as a component of income tax expense. To date, we have not incurred charges for interest or penalties in relation to the underpayment of income taxes. The tax years 1998 through the present remain open to examination by the major U.S. taxing jurisdictions to which we are subject. | |
Recently Issued Accounting Standards | ' |
Recently Issued Accounting Standards | |
Management has assessed the potential impact of recently issued, but not yet effective, accounting standards and determined that the provisions are either not applicable to the Company, or are not anticipated to have a material impact on the consolidated financial statements. | |
Maximum Amount Of Income Tax Benefits Percentage Realized Upon Ultimate Settlement | 50.00% |
INVENTORIES_Tables
INVENTORIES (Tables) | 9 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Components of Inventories | ' | |||||||
The components of inventories consist of the following (in thousands): | ||||||||
29-Mar-14 | 29-Jun-13 | |||||||
Finished goods | $ | 5,789 | $ | 7,097 | ||||
Work-in-process | 5,583 | 5,098 | ||||||
Raw materials and supplies | 34,714 | 32,469 | ||||||
$ | 46,086 | $ | 44,664 | |||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 9 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Reconciliation of Denominator and Number of Antidilutive Common Share Awards not Included in Diluted Earnings Per Share Calculation | ' | |||||||
These antidilutive securities occur when equity awards outstanding have an option price greater than the average market price for the period. | ||||||||
Three Months Ended | ||||||||
(in thousands, except per share information) | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Net income | $ | 1,414 | $ | 2,863 | ||||
Weighted average shares outstanding—basic | 10,533 | 10,489 | ||||||
Effect of dilutive common stock options | 393 | 442 | ||||||
Weighted average shares outstanding—diluted | 10,926 | 10,931 | ||||||
Earnings per share—basic | $ | 0.13 | $ | 0.27 | ||||
Earnings per share—diluted | $ | 0.13 | $ | 0.26 | ||||
Antidilutive options not included in diluted earnings per share | 208 | — | ||||||
Nine Months Ended | ||||||||
(in thousands, except per share information) | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Net income | $ | 6,233 | $ | 10,186 | ||||
Weighted average shares outstanding—basic | 10,523 | 10,488 | ||||||
Effect of dilutive common stock options | 397 | 400 | ||||||
Weighted average shares outstanding—diluted | 10,920 | 10,888 | ||||||
Earnings per share—basic | $ | 0.59 | $ | 0.97 | ||||
Earnings per share—diluted | $ | 0.57 | $ | 0.94 | ||||
Antidilutive options not included in diluted earnings per share | 208 | — | ||||||
SHAREBASED_COMPENSATION_Tables
SHARE-BASED COMPENSATION (Tables) | 9 Months Ended | |||||||||||||||
Mar. 29, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | ' | |||||||||||||||
The grant date fair value for the awards granted below were estimated using the Black Scholes option valuation method: | ||||||||||||||||
July 31, 2013 | July 25, 2012 | January 26, 2012 | 27-Jul-11 | |||||||||||||
SARs Granted | 213,166 | 210,666 | 32,000 | 184,666 | ||||||||||||
Strike Price | $ | 11.34 | $ | 7.44 | $ | 6.3 | $ | 4.4 | ||||||||
Fair Value | $ | 4.67 | $ | 3.71 | $ | 3.08 | $ | 2.2 | ||||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended | |||||||||||||||
Mar. 29, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | |||||||||||||||
The following table summarizes the fair value of assets/(liabilities) of the Company’s derivatives that are required to be measured on a recurring basis as of March 29, 2014 and June 29, 2013 (in thousands): | ||||||||||||||||
29-Mar-14 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Fair Value | ||||||||||||||||
Financial Assets: | ||||||||||||||||
Foreign currency forward contracts | $ | — | $ | 2,833 | $ | — | $ | 2,833 | ||||||||
Financial Liabilities: | ||||||||||||||||
Foreign currency forward contracts | $ | — | $ | (59 | ) | $ | — | $ | (59 | ) | ||||||
29-Jun-13 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Fair Value | ||||||||||||||||
Financial Assets: | ||||||||||||||||
Foreign currency forward contracts | $ | — | $ | 2,429 | $ | — | $ | 2,429 | ||||||||
Financial Liabilities: | ||||||||||||||||
Foreign currency forward contracts | $ | — | $ | (434 | ) | $ | — | $ | (434 | ) | ||||||
DERIVATIVE_FINANCIAL_INSTRUMEN1
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended | |||||||||||||||
Mar. 29, 2014 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||
Summerized Fair Value of Derivative Instruments in Consolidated Balance Sheets | ' | |||||||||||||||
The following table summarizes the fair value of derivative instruments in the Consolidated Balance Sheet as of March 29, 2014 and June 29, 2013 (in thousands): | ||||||||||||||||
29-Mar-14 | 29-Jun-13 | |||||||||||||||
Derivatives Designated as Hedging Instruments | Balance Sheet Location | Fair Value | Fair Value | |||||||||||||
Foreign currency forward contracts | Other current assets | $ | 2,020 | $ | 760 | |||||||||||
Foreign currency forward contracts | Other long-term assets | $ | 813 | $ | 1,669 | |||||||||||
Foreign currency forward contracts | Other current liabilities | $ | — | $ | (145 | ) | ||||||||||
Foreign currency forward contracts | Other long-term liabilities | $ | (59 | ) | $ | (289 | ) | |||||||||
Gain (Loss) of Derivative Instruments in Statement of Operations | ' | |||||||||||||||
The following tables summarize the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Income for the three months ended March 29, 2014 and March 30, 2013, respectively (in thousands): | ||||||||||||||||
Derivatives Designated as Hedging Instruments | AOCI Balance | Effective | Effective Portion | AOCI Balance | ||||||||||||
as of | Portion | Reclassified From | as of | |||||||||||||
December 28, | Recorded In | AOCI Into | March 29, | |||||||||||||
2013 | AOCI | Cost of Sales | 2014 | |||||||||||||
Settled foreign currency forward contracts for the three months ended March 29, 2014 | $ | 110 | $ | 11 | $ | (121 | ) | $ | — | |||||||
Unsettled foreign currency forward contracts | 1,515 | 313 | — | 1,828 | ||||||||||||
Total | $ | 1,625 | $ | 324 | $ | (121 | ) | $ | 1,828 | |||||||
Derivatives Designated as Hedging Instruments | AOCI Balance | Effective | Effective Portion | AOCI Balance | ||||||||||||
as of | Portion | Reclassified From | as of March 30, | |||||||||||||
December 29, | Recorded In | AOCI Into | 2013 | |||||||||||||
2012 | AOCI | Cost of Sales | ||||||||||||||
Settled foreign currency forward contracts for the three months ended March 30, 2013 | $ | (9 | ) | $ | 184 | $ | (175 | ) | $ | — | ||||||
Unsettled foreign currency forward contracts | 373 | 2,449 | — | 2,822 | ||||||||||||
Total | $ | 364 | $ | 2,633 | $ | (175 | ) | $ | 2,822 | |||||||
The following tables summarize the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Income for the nine months ended March 29, 2014 and March 30, 2013, respectively (in thousands): | ||||||||||||||||
Derivatives Designated as Hedging Instruments | AOCI Balance | Effective | Effective Portion | AOCI Balance | ||||||||||||
as of June 29, | Portion | Reclassified From | as of | |||||||||||||
2013 | Recorded In | AOCI Into | March 29, | |||||||||||||
AOCI | Cost of Sales | 2014 | ||||||||||||||
Settled foreign currency forward contracts for the nine months ended March 29, 2014 | $ | 85 | $ | 124 | $ | (209 | ) | $ | — | |||||||
Unsettled foreign currency forward contracts | 1,228 | 600 | — | 1,828 | ||||||||||||
Total | $ | 1,313 | $ | 724 | $ | (209 | ) | $ | 1,828 | |||||||
Derivatives Designated as Hedging Instruments | AOCI Balance | Effective | Effective Portion | AOCI Balance | ||||||||||||
as of June 30, | Portion | Reclassified From | as of March 30, | |||||||||||||
2012 | Recorded In | AOCI Into | 2013 | |||||||||||||
AOCI | Cost of Sales | |||||||||||||||
Settled foreign currency forward contracts for the nine months ended March 30, 2013 | $ | (162 | ) | $ | 675 | $ | (513 | ) | $ | — | ||||||
Unsettled foreign currency forward contracts | (497 | ) | 3,319 | — | 2,822 | |||||||||||
Total | $ | (659 | ) | $ | 3,994 | $ | (513 | ) | $ | 2,822 | ||||||
ACQUISITION_Tables
ACQUISITION (Tables) | 9 Months Ended | |||
Mar. 29, 2014 | ||||
Business Combinations [Abstract] | ' | |||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | ' | |||
The following table summarizes the fair values of the assets acquired as of the date of acquisition (in thousands): | ||||
Fair Values | ||||
At July 1, 2013 | ||||
Current Assets | $ | 777 | ||
Fixed Assets | 1,168 | |||
Non-Compete Agreements | 372 | |||
Customer Relationships | 1,970 | |||
Goodwill | 1,740 | |||
Fair value of assets acquired | $ | 6,027 | ||
Inventories_Components_Of_Inve
Inventories (Components Of Inventories) (Detail) (USD $) | Mar. 29, 2014 | Jun. 29, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Finished goods | $5,789 | $7,097 |
Work-in-process | 5,583 | 5,098 |
Raw materials and supplies | 34,714 | 32,469 |
Inventories | $46,086 | $44,664 |
LongTerm_Debt_Narrative_Detail
Long-Term Debt (Narrative) (Detail) (USD $) | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 | Oct. 15, 2010 | Mar. 29, 2014 | Mar. 29, 2014 | Mar. 29, 2014 |
Line of Credit [Member] | Line of Credit [Member] | Wells Fargo Bank | Debt Instrument, Basis Spread on Variable Rate, Scenario One [Member] | Debt Instrument, Basis Spread on Variable Rate, Scenario Two [Member] | Debt Instrument, Basis Spread on Variable Rate, Scenario Three [Member] | ||
One-Month London Interbank Offered Rate [Member] | Federal Funds Rate [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | |||
Fixed Rate [Member] | Fixed Rate [Member] | Fixed Rate [Member] | |||||
Debt Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Increase in revolving line of credit | ' | ' | ' | $30,000,000 | ' | ' | ' |
Variable rate on line of credit facility (percent) | ' | 1.50% | 1.50% | ' | 1.75% | 2.00% | 2.25% |
Additional availability of line of credit | $30,000,000 | ' | ' | ' | ' | ' | ' |
Income_Taxes_Narrative_Detail
Income Taxes (Narrative) (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Mar. 29, 2014 |
Income Tax Disclosure [Abstract] | ' |
Foreign tax credits related to future repatriations of earnings | $9.90 |
Gross potential research and development (R&D) tax credit | 5 |
Unrecognized tax benefits associated with federal tax credits | 3.1 |
Deferred Income Tax Expense (Benefit) | $1.90 |
Earnings_Per_Share_Reconciliat
Earnings Per Share (Reconciliation Of Denominator And Number Of Antidilutive Common Share Awards Not Included In Diluted Earnings Per Share Calculation) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 29, 2014 | Mar. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income | $1,414 | $2,863 | $6,233 | $10,186 |
Weighted average shares outstanding - basic | 10,533 | 10,489 | 10,523 | 10,488 |
Effect of dilutive common stock options (Shares) | 393 | 442 | 397 | 400 |
Weighted average shares outstanding - Diluted | 10,926 | 10,931 | 10,920 | 10,888 |
Earnings per share - basic (in dollars per share) | $0.13 | $0.27 | $0.59 | $0.97 |
Earnings per share - diluted (in dollars per share) | $0.13 | $0.26 | $0.57 | $0.94 |
Antidilutive options not included in diluted earnings per share (Shares) | 208 | 0 | 208 | 0 |
ShareBased_Compensation_Narrat
Share-Based Compensation (Narrative) (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Jul. 25, 2012 | Jul. 31, 2013 | Jan. 26, 2012 | Jul. 27, 2011 | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 29, 2014 | Mar. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | ' | ' | ' | ' | $1,100,000 | ' | $1,100,000 | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | ' | ' | ' | ' | ' | ' | '1 year 11 months 12 days | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | ' | ' | ' | ' | ' | ' | ' | 7,500 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | ' | ' | ' | ' | 0 | ' | 0 | ' |
Stock Appreciation Rights (SARs) [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 210,666 | 213,166 | 32,000 | 184,666 | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $7.44 | $11.34 | $6.30 | $4.40 | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $3.71 | $4.67 | $3.08 | $2.20 | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | ' | ' | ' | ' | $148,000 | $222,000 | $483,000 | $647,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | ' | ' | ' | ' | ' | ' | 30,000 | ' |
Employee Stock Option [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | ' | ' | ' | ' | ' | ' | 19,930 | ' |
Commitments_And_Contingencies_
Commitments And Contingencies (Narrative) (Detail) (USD $) | Mar. 29, 2014 | Jun. 29, 2013 | Mar. 29, 2014 |
Maximum | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ' | ' | ' |
Terms of lease agreements | ' | ' | '10 years |
Warranty reserve | $8,000 | $9,000 | ' |
Fair_Value_Measurements_Assets
Fair Value Measurements (Assets And Liabilities Measured At Fair Value On Recurring Basis) (Detail) (USD $) | Mar. 29, 2014 | Jun. 29, 2013 |
In Thousands, unless otherwise specified | ||
Level 1 | ' | ' |
Fair Value Disclosures [Line Items] | ' | ' |
Foreign currency forward contracts, Financial Assets | $0 | $0 |
Foreign currency forward contracts, Financial Liabilities | 0 | 0 |
Level 2 | ' | ' |
Fair Value Disclosures [Line Items] | ' | ' |
Foreign currency forward contracts, Financial Assets | 2,833 | 2,429 |
Foreign currency forward contracts, Financial Liabilities | -59 | -434 |
Level 3 | ' | ' |
Fair Value Disclosures [Line Items] | ' | ' |
Foreign currency forward contracts, Financial Assets | 0 | 0 |
Foreign currency forward contracts, Financial Liabilities | 0 | 0 |
Total Fair Value | ' | ' |
Fair Value Disclosures [Line Items] | ' | ' |
Foreign currency forward contracts, Financial Assets | 2,833 | 2,429 |
Foreign currency forward contracts, Financial Liabilities | ($59) | ($434) |
Recovered_Sheet1
Derivative Financial Instruments (Narrative) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 29, 2014 | Mar. 30, 2013 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' | ' | ' |
Outstanding foreign currency forward contracts | $67.40 | ' | $67.40 | ' |
Contract maturity date | ' | ' | 28-Jun-17 | ' |
Foreign currency forward contracts | 5 | 10.9 | 15.2 | 21.5 |
Foreign currency forward contracts settled | 5.7 | 5.8 | 17.6 | 17 |
Net amount of existing losses expected to be reclassified into earnings within the next 12 months | $1.40 | ' | $1.40 | ' |
Recovered_Sheet2
Derivative Financial Instruments (Summarized Fair Value Of Derivative Instruments In Consolidated Balance Sheets) (Detail) (USD $) | Mar. 29, 2014 | Jun. 29, 2013 |
In Thousands, unless otherwise specified | ||
Other Current Assets | ' | ' |
Derivative Instruments [Line Items] | ' | ' |
Foreign currency forward contracts, Fair Value | $2,020 | $760 |
Other Long Term Assets | ' | ' |
Derivative Instruments [Line Items] | ' | ' |
Foreign currency forward contracts, Fair Value | 813 | 1,669 |
Other Current Liabilities | ' | ' |
Derivative Instruments [Line Items] | ' | ' |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 0 | -145 |
Other Long Term Liabilities | ' | ' |
Derivative Instruments [Line Items] | ' | ' |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | ($59) | ($289) |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Gain (Loss) Of Derivative Instruments In Statement Of Operations) (Detail) (Designated As Hedging Instrument, USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 29, 2014 | Mar. 30, 2013 |
Derivative Instruments [Line Items] | ' | ' | ' | ' | ' | ' |
Derivative Instruments Gain Loss Effective Portion Recorded In AOCI | 324,000 | 2,633,000 | 724,000 | 3,994,000 | ' | ' |
Derivatives used in Net Investment Hedge, Net of Tax [Roll Forward] | ' | ' | ' | ' | ' | ' |
AOCI Balance | $1,625 | $364 | $1,313 | ($659) | $1,828 | $2,822 |
Effective Portion Recorded In AOCI | -121 | -175 | -209 | -513 | ' | ' |
Settled Foreign Currency Forward Contracts | ' | ' | ' | ' | ' | ' |
Derivative Instruments [Line Items] | ' | ' | ' | ' | ' | ' |
Derivative Instruments Gain Loss Effective Portion Recorded In AOCI | 11,000 | 184,000 | 124,000 | 675,000 | ' | ' |
Derivatives used in Net Investment Hedge, Net of Tax [Roll Forward] | ' | ' | ' | ' | ' | ' |
AOCI Balance | 110 | -9 | 85 | -162 | 0 | 0 |
Effective Portion Recorded In AOCI | -121 | -175 | -209 | -513 | ' | ' |
Unsettled Foreign Currency Forward Contracts | ' | ' | ' | ' | ' | ' |
Derivative Instruments [Line Items] | ' | ' | ' | ' | ' | ' |
Change in Unrealized Gain (Loss) on Foreign Currency | 313,000 | 2,449,000 | 600,000 | 3,319,000 | ' | ' |
Derivatives used in Net Investment Hedge, Net of Tax [Roll Forward] | ' | ' | ' | ' | ' | ' |
AOCI Balance | $1,515 | $373 | $1,228 | ($497) | $1,828 | $2,822 |
Change in Unrealized Gain (Loss) of Foreign Currency Effective Portion Reclassified From AOCI Into Cost of Sales | 0 | 0 | 0 | 0 | ' | ' |
Acquisition_Detail
Acquisition (Detail) (USD $) | 9 Months Ended | ||
Mar. 29, 2014 | Jul. 01, 2013 | Jun. 29, 2013 | |
Business Combinations [Abstract] | ' | ' | ' |
Payments to Acquire Businesses, Gross | $6,000,000 | ' | ' |
Business Combination, Acquisition Related Costs | 50,000 | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Current Assets | ' | 777,000 | ' |
Fixed Assets | ' | 1,168,000 | ' |
Non-Compete Agreements | ' | 372,000 | ' |
Customer Relationships | ' | 1,970,000 | ' |
Goodwill | 1,740,000 | 1,740,000 | 0 |
Fair value of assets acquired | ' | $6,027,000 | ' |