Key Tronic (KTCC) 10-K 9 Sep 16 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Jul. 02, 2016	Sep. 07, 2016	Dec. 26, 2015
Document Documentand Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Jul. 2, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Trading Symbol	ktcc
Entity Registrant Name	KEY TRONIC CORP
Entity Central Index Key	719,733
Current Fiscal Year End Date	--07-02
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		10,756,018
Entity Public Float			$ 79.2

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Jul. 02, 2016	Jun. 27, 2015
Current assets:
Cash and cash equivalents	$ 1,018,000	$ 372,000
Trade receivables, net of allowance for doubtful accounts of $135 and $97	61,678,000	72,852,000
Inventories, net	107,006,000	91,594,000
Other	11,757,000	13,646,000
Total current assets	181,459,000	178,464,000
Property, plant and equipment, net	27,925,000	26,974,000
Other assets:
Deferred income tax asset	8,982,000	6,723,000
Other	1,673,000	1,621,000
Goodwill	9,957,000	9,957,000
Other intangible assets, net	5,928,000	7,055,000
Total other assets	26,540,000	25,356,000
Total assets	235,924,000	230,794,000
Current liabilities:
Accounts payable	58,967,000	61,528,000
Accrued compensation and vacation	9,571,000	9,467,000
Current portion of debt	5,000,000	5,000,000
Other	10,572,000	10,794,000
Total current liabilities	84,110,000	86,789,000
Long-term liabilities:
Term loan	21,250,000	26,250,000
Revolving loan	18,073,000	11,631,206.86
Deferred income tax liability	0	501,000
Other long-term obligations	6,909,000	4,855,000
Total long-term liabilities	46,232,000	43,237,000
Total liabilities	130,342,000	130,026,000
Commitments and contingencies (Note 4 and 9)
Shareholders’ equity:
Common stock, no par value—shares authorized 25,000; issued and outstanding 10,725 and 10,706 shares, respectively	45,227,000	44,136,000
Retained earnings	67,928,000	61,395,000
Accumulated other comprehensive loss	(7,573,000)	(4,763,000)
Total shareholders’ equity	105,582,000	100,768,000
Total liabilities and shareholders’ equity	$ 235,924,000	$ 230,794,000

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jul. 02, 2016	Jun. 27, 2015
Statement of Financial Position [Abstract]
Trade receivables, allowance for doubtful accounts	$ 135	$ 97
Common stock - par value	$ 0	$ 0
Common stock - shares authorized	25,000,000	25,000,000
Common stock - issued	10,725,000	10,706,000
Common stock - outstanding	10,725,000	10,706,000

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jun. 28, 2014
Income Statement [Abstract]
Net sales	$ 484,965	$ 433,997	$ 305,394
Cost of sales	446,140	400,692	278,540
Gross profit	38,825	33,305	26,854
Operating expenses
Research, development and engineering expenses	6,397	5,784	5,586
Selling, general and administrative expenses	22,012	20,868	11,964
Total operating expenses	28,409	26,652	17,550
Operating income	10,416	6,653	9,304
Interest expense, net	2,265	1,353	81
Income before income taxes	8,151	5,300	9,223
Income tax provision	1,618	996	1,610
Net income	$ 6,533	$ 4,304	$ 7,613
Earnings per share:
Net income per share — Basic	$ 0.61	$ 0.41	$ 0.72
Weighted average shares outstanding– basic	10,710	10,572	10,528
Net income per share — Diluted	$ 0.58	$ 0.38	$ 0.67
Weighted average shares outstanding — Diluted	11,278	11,286	11,358

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jun. 28, 2014
Comprehensive income (loss):
Net income	$ 6,533	$ 4,304	$ 7,613
Other comprehensive income (loss):
Unrealized (loss) gain on hedging instruments, net of tax	(2,810)	(7,166)	1,090
Comprehensive income (loss)	$ 3,723	$ (2,862)	$ 8,703

CONSOLIDATED STATEMENTS OF COM6

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jun. 28, 2014
Statement of Comprehensive Income [Abstract]
Unrealized gain (loss) on foreign exchange contracts, tax	$ (1.4)	$ (3.7)	$ 0.6

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jun. 28, 2014
Operating activities:
Net income	$ 6,533	$ 4,304	$ 7,613
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	6,162	5,910	3,829
Excess tax benefit from exercise of stock options	(402)	(50)	(73)
Provision for obsolete inventory	757	520	257
Provision for warranty	95	115	35
Provision for doubtful accounts	38	97	37
Loss on disposal of property, plant and equipment	0	70	12
Share-based compensation expense	764	732	659
Deferred income taxes	1,313	1,517	687
Changes in operating assets and liabilities, net of acquisition:
Trade receivables	11,136	(2,080)	(2,686)
Inventories	(16,169)	(14,708)	(10,450)
Other assets	1,739	(4,249)	(3,145)
Accounts payable	(2,561)	17,999	6,059
Accrued compensation and vacation	104	(283)	149
Other liabilities	(2,303)	807	(151)
Cash provided by operating activities	4,580	7,667	1,458
Investing activities:
Payment for acquisition, net of cash acquired	0	(47,964)	(6,027)
Purchases of property and equipment	(13,277)	(8,808)	(7,763)
Proceeds from sale of property and equipment	7,612	8,641	0
Cash used in investing activities	(5,665)	(48,131)	(13,790)
Financing activities:
Payment of financing costs	(113)	(62)	(84)
Proceeds from issuance of long term debt	0	35,000	0
Repayments of long term debt and capital lease obligations	(5,000)	(3,750)	(576)
Borrowings under revolving credit agreement	197,568	137,987	8,212
Repayment of revolving credit agreement	(191,126)	(126,356)	(8,212)
Proceeds from accounts receivable transfer agreement	0	1,116	7,853
Payments towards accounts receivable transfer agreement	0	(8,969)	0
Excess tax benefit from exercise of stock options	402	50	73
Proceeds from exercise of stock options	0	17	50
Cash provided by financing activities	1,731	35,033	7,316
Net increase (decrease) in cash and cash equivalents	646	(5,431)	(5,016)
Cash and cash equivalents, beginning of period	372	5,803	10,819
Cash and cash equivalents, end of period	1,018	372	5,803
Supplemental cash flow information:
Interest payments	2,308	1,221	90
Income tax payments, net of refunds	$ 813	$ 3,274	$ 2,184

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Balances, beginning of period (Shares) at Jun. 29, 2013		10,502
Balances, beginning of period at Jun. 29, 2013	$ 94,160	$ 43,369	$ 49,478	$ 1,313
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	7,613		7,613
Unrealized gain (loss) on foreign exchange contracts, net	1,090			1,090
Exercise of stock options, (Shares)		45
Options exercised	50	$ 50
Share-based compensation expense	659	659
Tax benefit from exercise of stock options	73	$ 73
Balances, end of period (Shares) at Jun. 28, 2014		10,547
Balances, end of period at Jun. 28, 2014	103,645	$ 44,151	57,091	2,403
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	4,304		4,304
Unrealized gain (loss) on foreign exchange contracts, net	(7,166)			(7,166)
Exercise of stock options, (Shares)		5
Options exercised	$ 17	$ 17
Options/SARs exercised	223
Shares withheld for taxes, shares	(69)
Shares withheld for taxes, value	$ (814)
Share-based compensation expense	732	732
Tax benefit from exercise of stock options	50	$ 50
Balances, end of period (Shares) at Jun. 27, 2015		10,706
Balances, end of period at Jun. 27, 2015	100,768	$ 44,136	61,395	(4,763)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	6,533		6,533
Unrealized gain (loss) on foreign exchange contracts, net	$ (2,810)			(2,810)
Options/SARs exercised	28
Shares withheld for taxes, shares	(9)
Shares withheld for taxes, value	$ (75)
Share-based compensation expense	764	764
Tax benefit from exercise of stock options	402	$ 402
Balances, end of period (Shares) at Jul. 02, 2016		10,725
Balances, end of period at Jul. 02, 2016	$ 105,582	$ 45,227	$ 67,928	$ (7,573)

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Jul. 02, 2016
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	SIGNIFICANT ACCOUNTING POLICIES Business Key Tronic Corporation and subsidiaries (the Company) is engaged in electronic manufacturing services (EMS) for original equipment manufacturers (OEMs) and also manufactures keyboards and other input devices. The Company’s headquarters are located in Spokane Valley, Washington with manufacturing operations in Oakdale, Minnesota; Fayetteville, Arkansas; Corinth, Mississippi; Harrodsburg, Kentucky; and foreign manufacturing operations in Juarez, Mexico; and Shanghai, China. Principles of Consolidation The consolidated financial statements include the Company and its wholly owned subsidiaries in the United States, Mexico and China. Intercompany balances and transactions have been eliminated during consolidation. Reclassifications Certain prior period reclassifications were made to conform with the current period presentation. These reclassifications had no effect on reported income, comprehensive income (loss), cash flows, total assets, or shareholders' equity as previously reported. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Estimates include the allowance for doubtful receivables, the provision for obsolete and non-saleable inventories, deferred tax assets and liabilities, uncertain tax positions, valuation of goodwill, impairment of long-lived assets, medical self-funded insurance liability, long-term incentive compensation accrual, the provision for warranty costs, the fair value of stock appreciation rights granted under the Company’s share-based compensation plan and purchase price allocation of acquired businesses. Due to uncertainties with respect to the assumptions and estimates, actual results could differ from those estimates. Cash and Cash Equivalents The Company considers investments with an original maturity of three months or less to be cash equivalents. Cash equivalents are carried at cost, which approximates fair value. The Company may have cash and cash equivalents at financial institutions that are in excess of federally insured limits from time to time. Allowance for Doubtful Accounts The Company evaluates the collectability of accounts receivable and records an allowance for doubtful accounts, which reduces the receivables to an amount that management reasonably estimates will be collected. A specific allowance is recorded against receivables considered to be impaired based on the Company’s knowledge of the financial condition of the customer. In determining the amount of the allowance, the Company considers several factors including the aging of the receivables, the current business environment and historical experience. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. Inventories Inventories are stated at the lower of cost or market. Cost is determined principally using the first-in, first-out (FIFO) method. Customer orders are based upon forecasted quantities of product manufactured for shipment over defined periods. Raw material inventories are purchased to fulfill these customer requirements. Within these arrangements, customer demands for products frequently change, sometimes creating excess and obsolete inventories. The Company regularly reviews raw material inventories by customer for both excess and obsolete quantities. Wherever possible, the Company attempts to recover its full cost of excess and obsolete inventories from customers or, in some cases, through other markets. When it is determined that the Company’s carrying cost of such excess and obsolete inventories cannot be recovered in full, a charge is taken against income for the difference between the carrying cost and the estimated realizable amount. We also reserve for inventory related to specific customers covered by lead-time assurance agreements when those customers are experiencing financial difficulties or reimbursement is not reasonably assured. Property, Plant and Equipment Property, plant and equipment are carried at cost and depreciated using straight-line methods over the expected useful lives of the assets. Repairs and maintenance costs are expensed as incurred. Business Combinations The Company recognizes the assets acquired and liabilities assumed in business combinations on the basis of their fair values at the date of acquisition. We assess the fair value of assets, including intangible assets, using a variety of methods and each asset is measured at fair value from the perspective of a market participant. The method used to estimate the fair values of intangible assets incorporates significant assumptions regarding the estimates a market participant would make in order to evaluate an asset, including a market participant’s use of the asset and the appropriate discount rates for a market participant. Assets recorded from the perspective of a market participant that are determined to not have economic use for us are expensed immediately. Any excess purchase price over the fair value of the net tangible and intangible assets acquired is allocated to goodwill. Transaction costs and restructuring costs associated with a business combination are expensed as incurred. Impairment of Goodwill The Company records intangible assets that are acquired individually or with a group of other assets in the financial statements at acquisition. In accordance with ASC 350, Goodwill and Other Intangible Assets , goodwill is not amortized but is required to be reviewed for impairment at least annually or when events or circumstances indicate that carrying value may exceed fair value. The Company tests goodwill by first performing a qualitative analysis (“Step 0”) to determine if it is more likely than not that the fair value of the reporting unit is greater than its carrying value. If the Company determines that it is not more likely than not that the fair value of the reporting unit is greater than its carrying value, the Company calculates the fair value of the reporting unit and compares the fair value of the reporting unit to its carrying value (“Step 1”). If the carrying value of the reporting unit exceeds the fair value, goodwill is potentially impaired and the second step (“Step 2”) of the impairment test must be performed. In the second step, the Company compares the implied fair value of the goodwill, as defined by ASC 350, to the carrying amount to determine the impairment loss, if any. The Company performed its annual qualitative Step 0 analysis as of April 3, 2016 and determined a Step 1 analysis was necessary due to market conditions. Based on the results of the Step 1 analysis, the Company concluded that the fair value of the reporting unit was greater than the carrying value of the reporting unit based on a methodology that utilized both an income approach and a market approach. We considered valuation factors including the Company's market capitalization, future discounted cash flows and an estimated control premium based upon a review of comparable market transactions. We will continue to monitor our market capitalization and impairment indicators. Impairment of Long-lived Assets The Company, using its best estimates based on reasonable and supportable assumptions and projections, reviews assets for impairment whenever events or changes in circumstances have indicated that the carrying amount of its assets might not be recoverable. Impaired assets are reported at the lower of cost or fair value. Accrued Warranty An accrual is made for expected warranty costs, with the related expense recognized in cost of goods sold. Management reviews the adequacy of this accrual quarterly based on historical analyses and anticipated product returns. Self-funded Insurance The Company self-funds its domestic employee health plans. The Company contracts with a separate administrative service company to supervise and administer the programs and act as its representative. The Company reduces its risk under this self-funded platform by purchasing stop-loss insurance coverage for high dollar individual claims. In addition, if the aggregate annual claims amount to more than 125 percent of expected claims for the plan year this insurance will also pay those claims amounts exceeding that level. The Company estimates its exposure for claims incurred but not paid at the end of each reporting period and uses historical claims data supplied by the Company’s broker to estimate its self-funded insurance liability. This liability is subject to a total limitation that varies based on employee enrollment and factors that are established at each annual contract renewal. Actual claims experience may differ from the Company’s estimates. Costs related to the administration of the plan and related claims are expensed as incurred. Revenue Recognition Sales revenue from manufacturing is recognized upon shipment of the manufactured product per contractual terms. Upon shipment, title transfers and the customer assumes risks and rewards of ownership of the product. The price to the buyer is fixed or determinable and recoverability is reasonably assured. Unless specifically stated in contractual terms, there are no formal customer acceptance requirements or further obligations related to the manufacturing services; if any such requirements exist, then sales revenue is recognized at the time when such requirements are completed and such obligations are fulfilled. Revenue is recorded net of estimated returns of manufactured product based on management’s analysis of historical returns. Revenues and associated costs from engineering design, development services and tooling, which are performed under contract of short term durations, are recognized only after the completed performance of the service. Revenue from engineering design, development services and tooling represented approximately 1.7 percent , 2.5 percent and 3.4 percent of total revenue in fiscal years 2016 , 2015 , and 2014 , respectively. Shipping and Handling Fees The Company classifies costs associated with shipping and handling fees as a component of cost of goods sold. Customer billings related to shipping and handling fees are reported as revenue. Research, Development and Engineering Research, development and engineering expenses include unreimbursed EMS costs as well as design and engineering costs associated with the production of EMS programs. Research, development and engineering costs are expensed as incurred. Income Taxes 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 provision. To date, we have not incurred charges for interest or penalties in relation to the underpayment of income taxes. The tax years 1997 through the present remain open to examination by the major U.S. taxing jurisdictions to which we are subject. Refer to Note 6 for further discussions. Derivative Instruments and Hedging Activities The Company has entered into foreign currency forward contracts and an interest rate swap 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 uses derivatives to manage the variability of foreign currency fluctuations of expenses in our Mexico facilities and interest rate risk associated with certain borrowings under the Company’s debt arrangement. The foreign currency forward contracts and interest rate swaps 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 and interest rate swaps 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 and interest rate swaps 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. Earnings Per Common Share Basic earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per common share 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 stock options were used to repurchase common shares at the average market price during the period. The computation of diluted earnings per common share does not assume conversion, exercise, or contingent issuance of common stock equivalent shares that would have an anti-dilutive effect on earnings per share. Foreign Currency Transactions The functional currency of the Company’s subsidiaries in Mexico and China is the U.S. dollar. Realized foreign currency transaction gains and losses for local currency denominated assets and liabilities are included in cost of goods sold. Fair Value of Financial Instruments The carrying values of cash and cash equivalents, accounts receivable and current liabilities reflected on the balance sheets at July 2, 2016 and June 27, 2015 , reasonably approximate their fair value. As of July 2, 2016 , the Company had an outstanding balance on the line of credit of $18.1 million and term loan of $26.3 million . The carrying value of debt approximates fair value. As of June 27, 2015 , the Company had an outstanding balance on the line of credit of $11.6 million and term loan of $31.3 million . Share-based Compensation The Company’s incentive plan may provide for equity and liability awards to employees in the form of stock options, stock appreciation rights, 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 included in cost of goods sold, research, development and engineering, 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. Restructuring Periodically the Company may consolidate excess facilities in order to maximize efficiencies and reduce its costs. In connection with these activities, we recognize restructuring charges for employee termination costs, exit costs and long-lived asset impairment when applicable. The recognition of these restructuring charges require that we make certain judgments and estimates regarding the nature, timing and amount of costs associated with the planned exit activity. To the extent our actual results differ from our estimates and assumptions, we may be required to revise the estimates of future liabilities, requiring the recognition of additional restructuring charges or the reduction of liabilities already recognized. Such changes to previously estimated amounts may be material to the consolidated financial statements. At the end of each reporting period, we evaluate the remaining accrued balances to ensure that no excess accruals are retained and the utilization of the provisions are for their intended purpose in accordance with developed exit plans. Newly Adopted and Recent Accounting Pronouncements In May 2014, Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2014-09 (ASU 2014-09), Revenue from Contracts with Customers. The guidance in this Update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The standard's core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under current guidance. This may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The amendments in this Update are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is not permitted. Companies have the option of using either a full or modified retrospective approach in applying this standard. The Company is in the process of assessing the impact of ASU 2014-09 on its consolidated financial statements. In July 2015, the FASB issued final guidance that simplifies the subsequent measurement of inventory for which cost is determined by methods other than last-in first-out (“LIFO”) and the retail inventory method. For inventory within the scope of the new guidance, entities will be required to compare the cost of inventory to only one measure, its net realizable value, and not the three measures required by the existing guidance. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The new guidance should not change how entities initially measure the cost of inventory. The guidance will be effective for the Company in the fiscal year beginning July 3, 2017. Early adoption is permitted. We have not yet determined the impact this new guidance may have on our financial statements. In September 2015, the FASB issued Accounting Standards Update 2015-16 (ASU 2015-16), Simplifying the Accounting for Measurement-Period Adjustments . The amendments in this Update require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments in this Update require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments of ASU 2015-16 did not have a significant impact on the Company’s consolidated financial statements. In November 2015, the FASB issued Accounting Standards Update 2015-17, Income Taxes . The amendments in this Update require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The guidance will be effective for the Company beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted for all entities. The Company retrospectively adopted this ASU during the second quarter of fiscal year 2016. The following table summarizes the adjustments made to conform prior period classifications with the new guidance (in thousands): June 27, 2015 As Filed Reclass As Adjusted Current deferred income tax assets $ 6,643 $ (6,643 ) $ — Long-term deferred income tax assets 80 6,643 6,723 Long-term deferred income tax liabilities (501 ) — (501 ) Net deferred tax assets $ 6,222 $ — $ 6,222 In February 2016, the FASB issued Accounting Standards Update 2016-02 (ASU 2016-02), Leases which supersedes ASC 840 Leases and creates a new topic, ASC 842 Leases. This update requires lessees to recognize a lease asset and a lease liability for all leases, including operating leases, with a term greater than 12 months on its balance sheet. The update also expands the required quantitative and qualitative disclosures surrounding leases. This update is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, with earlier adoption permitted. This update will be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently evaluating the effect of this update on its consolidated financial statements. In March 2016, the FASB issued Accounting Standards Update 2016-09 (ASU 2016-09), Improvements to Employee Share-Based Payment Accounting . This update simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This update is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years, with earlier adoption permitted. The Company is currently evaluating the effect of this update on its consolidated financial statements. In August 2016, the FASB issued Accounting Standards Update 2016-15 (ASU 2016-15), Classification of Certain Cash Receipts and Cash Payments . This update provides guidance on how to record eight specific cash flow issues. This update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted and a retrospective transition method to each period should be presented. The Company is currently evaluating the effect of this update on its consolidated financial statements. Fiscal Year The Company operates on a 52/53 week fiscal year. Fiscal years end on the Saturday nearest June 30. As such, fiscal years 2016 , 2015 , and 2014 , ended on July 2, 2016 , June 27, 2015 , and June 28, 2014 , respectively. Fiscal year 2016 is a 53 week year whereas fiscal years 2015 and 2014 were 52 week years.

INVENTORIES

INVENTORIES	12 Months Ended
	Jul. 02, 2016
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES The components of inventories consist of the following (in thousands): July 2, 2016 June 27, 2015 Finished goods $ 13,384 $ 8,019 Work-in-process 18,988 15,220 Raw materials and supplies 74,634 68,355 $ 107,006 $ 91,594

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	12 Months Ended
	Jul. 02, 2016
Property, Plant and Equipment [Abstract]
PROPERTY, PLANT AND EQUIPMENT	PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consists of the following: Life July 2, 2016 June 27, 2015 (in years) (in thousands) Land — $ 2,940 $ 2,940 Buildings and improvements 3 to 30 23,737 23,134 Equipment 1 to 10 53,095 48,126 Furniture and fixtures 3 to 5 2,924 3,065 82,696 77,265 Accumulated depreciation (54,771 ) (50,291 ) $ 27,925 $ 26,974

LONG-TERM DEBT

LONG-TERM DEBT	12 Months Ended
	Jul. 02, 2016
Debt Disclosure [Abstract]
LONG-TERM DEBT	LONG-TERM DEBT On September 3, 2014, the Company entered into an agreement with Wells Fargo Bank for a five-year term loan in the amount of $35.0 million which was used to acquire all of the outstanding shares of CDR Manufacturing, Inc. (dba Ayrshire Electronics). For further information on the acquisition of Ayrshire, see footnote 14 of the “Notes to Consolidated Financial Statements.” On August 6, 2015, the Company entered into a First Amendment to the amended and restated credit agreement extending the limit on our line of credit facility to $45.0 million as evidenced by the Second Replacement Revolving Note. 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 2.0% 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 and expires on August 31, 2019. As of July 2, 2016 , the Company had an outstanding balance under the credit facility of $18.1 million , $0.4 million in outstanding letters of credit and $26.5 million available for future borrowings. The interest rate on the outstanding line of credit balance was in the range of 2.45% - 3.50% . As of June 27, 2015 , the Company had an outstanding balance under the credit facility of $11.6 million , $0.3 million in outstanding letters of credit and $18.0 million available for future borrowings. The interest rate on the outstanding line of credit balance was in the range of 2.28% - 3.25% . The outstanding principal balance of the term loan bears interest at a fixed rate per annum of the daily one month LIBOR plus 1.75% , 2.00% or 2.25% depending on the ratio of the Company’s funded debt to EBITDA, except that the term loan bore interest at LIBOR plus 2.00% from September 3, 2014 through December 14, 2014 regardless of the Company’s cash flow leverage ratio. Principal on the term loan is payable in equal quarterly installments of $1.25 million commencing December 15, 2014 and continuing through June 15, 2019, with a final installment of all remaining unpaid principal due on August 31, 2019. The Company had an outstanding balance of $26.3 million under the term loan as of July 2, 2016 . As of June 27, 2015 , the Company had an outstanding balance of $31.3 million under the term loan. Debt maturities as of July 2, 2016 for the next five years and thereafter are as follows (in thousands): Fiscal Years Ending Amount 2017 $ 5,000 2018 5,000 2019 5,000 2020 29,323 2021 — Thereafter — Total debt payments $ 44,323 The Company must comply with certain financial covenants, including a cash flow leverage ratio, an asset coverage ratio and a fixed charge coverage ratio. The credit agreement requires the Company to maintain a minimum profit threshold, limits the maximum capital lease expenditures and restricts the Company from declaring or paying dividends in cash or stock without prior bank approval. The Company is in compliance with all financial covenants for all periods presented.

TRADE ACCOUNTS RECEIVABLE PURCH

TRADE ACCOUNTS RECEIVABLE PURCHASE PROGRAMS	12 Months Ended
	Jul. 02, 2016
Receivables [Abstract]
TRADE ACCOUNTS RECEIVABLE SALE PROGRAMS	TRADE ACCOUNTS RECEIVABLE PURCHASE PROGRAMS Sale Programs On June 25, 2014, the Company entered into an Account Purchase Agreement with Wells Fargo Bank, N.A. ("WFB") which provides that the Company may sell and assign to WFB and WFB may purchase from Company the accounts receivable of certain Company customers in a maximum aggregate amount outstanding of $50.0 million . The initial term of the agreement is 36 months with successive 12 month renewal terms. On December 18, 2014, the Company modified the original Account Purchase Agreement with WFB to allow the Company to account for the factored receivables as a true-sale. On July 16, 2015, the Company modified the Account Purchase Agreement with WFB to decrease the maximum aggregate amount of receivables available to factor from $50.0 million to $20.0 million . The decrease in the aggregate amount available was due to a change in customer mix and to reduce fees related to the program. The Company also has an Account Purchase Agreement with Orbian Financial Services (“Orbian”) which allows the Company to factor receivables from specific customers as a true-sale. This agreement may be canceled by either party at any time. Total accounts receivables sold during the twelve months ended July 2, 2016 and June 27, 2015 was approximately $78.0 million and $12.1 million , respectively. Accounts receivables sold and not yet collected was approximately $1.7 million and $0.9 million as of July 2, 2016 and June 27, 2015 , respectively. The receivables that were sold were removed from the condensed consolidated balance sheets and the cash received is reflected as cash provided by operating activities in the condensed consolidated statements of cash flows.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Jul. 02, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Income tax provision consists of the following: Fiscal Year Ended July 2, 2016 June 27, 2015 June 28, 2014 (in thousands) Current income tax provision: United States $ 1,014 $ 1,701 $ 1,220 Foreign 1,960 975 1,017 2,974 2,676 2,237 Deferred income tax benefit: United States (1,285 ) (1,486 ) 1,566 Foreign (71 ) (194 ) (2,193 ) (1,356 ) (1,680 ) (627 ) Total income tax provision $ 1,618 $ 996 $ 1,610 The Company has gross tax credit carryforwards of approximately $7.9 million at July 2, 2016 . Included in total tax credits carryforwards is approximately $7.1 million in research and development (R&D) tax credits. Management also has reviewed its other deferred tax assets for purposes of determining whether or not a valuation allowance may be required. A valuation allowance against these deferred tax assets is required if it is more likely than not that some of the deferred tax assets will not be realized. Based on the Company’s increased profitability and estimated future repatriations from foreign subsidiaries, it has been determined that it is more likely than not that the deferred tax assets will be realized. Management has reviewed and updated as necessary estimates of future repatriations of the undistributed earnings of its foreign subsidiaries. Based on this analysis, management expects to repatriate a portion of the foreign undistributed earnings based on increased sales growth driving additional U.S. capital requirements, cash requirements for potential acquisitions and to potentially implement certain tax strategies. No foreign earnings were repatriated from either foreign subsidiary during fiscal 2016 or 2015 . The Company currently estimates that future repatriations from foreign subsidiaries will approximate $11.9 million . As such, as earnings are recognized in the United States, the Company would be subject to U.S. federal and state income taxes and potential withholding taxes are estimated to be approximately $5.9 million . Both the domestic tax and estimated withholding tax have been recorded as part of deferred taxes as of July 2, 2016 . All other unremitted foreign earnings are expected to remain permanently reinvested for planned fixed asset purchases in foreign locations. The Company has not provided for U.S. income taxes or foreign withholding taxes on approximately $13.5 million of earnings from foreign subsidiaries which are permanently reinvested outside the U.S. The unrecognized net tax provision, after netting U.S. federal and state income tax and any related foreign tax credits, would be approximately $2.1 million associated with these earnings. In recent years, the Company’s wholly owned foreign subsidiary in Mexico has 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 and the impact of the repeal was recognized as a discrete tax benefit of $1.5 million during the second quarter of fiscal year 2014. The Company is now subject to the general Mexican tax regime (ISR). The effects of IETU and ISR have been included in the effective tax rate for the year ended June 28, 2014. The Company’s effective tax rate differs from the federal tax rate as follows: Fiscal Year Ended July 2, 2016 June 27, 2015 June 28, 2014 (in thousands) Federal income tax provision at statutory rates $ 2,771 $ 1,802 $ 3,136 State income taxes, net of federal tax effect 250 133 — Foreign tax rate differences (442 ) (80 ) (439 ) Effect of income tax credits (1,254 ) (1,085 ) (202 ) Effect of repatriation of foreign earnings, net (161 ) (80 ) 287 Other 454 124 330 Transaction costs — 182 — Effect of IETU repeal — — (1,502 ) Income tax provision $ 1,618 $ 996 $ 1,610 The domestic and foreign components of income before income taxes were: Fiscal Year Ended July 2, 2016 June 27, 2015 June 28, 2014 (in thousands) Domestic $ 2,228 $ 3,395 $ 4,687 Foreign 5,923 1,905 4,536 Income before income taxes $ 8,151 $ 5,300 $ 9,223 Deferred income tax assets and liabilities consist of the following at: July 2, 2016 June 27, 2015 (in thousands) Deferred tax assets: Tax credit carryforwards, net $ 4,056 $ 2,843 Foreign subsidiaries - future tax credits 840 840 Inventory 508 559 Accruals 4,270 4,579 Mark-to-market adjustments 4,043 2,498 Other 86 138 Deferred income tax assets $ 13,803 $ 11,457 Deferred tax liabilities: Foreign subsidiaries – unremitted earnings (2,098 ) (2,258 ) Fixed assets (1,025 ) (941 ) Identifiable intangibles (1,613 ) (1,866 ) Other (85 ) (170 ) Deferred income tax liabilities $ (4,821 ) $ (5,235 ) Net deferred income tax assets $ 8,982 $ 6,222 Balance sheet caption reported in: Long-term deferred income tax asset $ 8,982 $ 6,723 Long-term deferred income tax liability — (501 ) Net deferred income tax asset $ 8,982 $ 6,222 As a result of retroactive application of ASU 2015-17 (Topic 740), Balance Sheet Classification of Deferred Taxes , we have reclassified our net current deferred tax assets and liabilities to net non-current deferred tax assets and liabilities in our Consolidated Balance Sheet as of July 2, 2016 and June 27, 2015 . Uncertain Tax Positions The Company has R&D tax credits that approximate $7.1 million that have 20 year carryforwards before expiring. The Company’s R&D tax credits expire in various fiscal years from 2021 to 2035. The Company also has alternative minimum tax credits, which do not expire, approximating $726,000 . As of July 2, 2016 , the Company had unrecognized tax benefits of $3.8 million related to its gross R&D tax credits. The unrecognized tax benefits relate to certain R&D tax credits generated from 1999 to 2015. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Fiscal Year Ended July 2, 2016 June 27, 2015 June 28, 2014 (in thousands) Beginning Balance $ 3,446 $ 3,072 $ 3,031 Additions based on tax positions related to the current year 314 374 41 Ending Balance $ 3,760 $ 3,446 $ 3,072 The increase from the prior year is due to additional R&D credits that were recorded in 2016 as discussed above. Management does not anticipate any material changes to this amount during the next 12 months. The Company recognizes interest accrued related to unrecognized tax benefits and penalties in its income tax provision. The Company has not recognized any interest or penalties in the fiscal years presented in these financial statements. The Company is subject to income tax in the U.S. federal jurisdiction, various state jurisdictions, Mexico and China. Certain years remain subject to examination but there are currently no ongoing exams in any taxing jurisdictions.

EARNINGS PER SHARE

EARNINGS PER SHARE	12 Months Ended
	Jul. 02, 2016
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE Basic earnings per share (EPS) is calculated by dividing net income (the numerator) by the weighted-average number of common shares outstanding (the denominator) during the period. Diluted EPS is computed by including both the weighted-average number of shares outstanding and any dilutive common share equivalents in the denominator. The following table presents a reconciliation of the denominator 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: Fiscal Year Ended (in thousands, except per share information) July 2, 2016 June 27, 2015 June 28, 2014 Net income $ 6,533 $ 4,304 $ 7,613 Weighted average shares outstanding– basic 10,710 10,572 10,528 Effect of dilutive common stock awards 568 714 830 Weighted average shares outstanding – diluted 11,278 11,286 11,358 Earnings per share – basic $ 0.61 $ 0.41 $ 0.72 Earnings per share – diluted $ 0.58 $ 0.38 $ 0.67 Antidilutive SARs not included in diluted earnings per share 442 208 208

STOCK OPTION AND BENEFIT PLANS

STOCK OPTION AND BENEFIT PLANS	12 Months Ended
	Jul. 02, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK OPTION AND BENEFIT PLANS	STOCK OPTION AND BENEFIT PLANS 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, research, development and engineering, 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, these 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. On July 29, 2015, the Company granted 248,166 SARs under the 2010 Incentive Plan to certain key employees and outside directors at a strike price of $10.26 and a grant date fair value of $3.65 , as of July 2, 2016 , 240,833 remain outstanding. The grant date fair value for the awards granted during fiscal year 2016 were estimated using the Black Scholes option valuation method with the following weighted average assumptions as of July 29, 2015: Fiscal Year 2016 July 29, 2015 Expected dividend yield —% Risk – free interest rate 1.39% Expected volatility 43.66% Expected life 4.00 On October 31, 2014, the Company granted 213,166 SARs under the 2010 Incentive Plan to certain key employees and outside directors at a strike price of $8.22 and a grant date fair value of $3.04 , as of July 2, 2016 , 205,833 remain outstanding. The grant date fair value for the awards granted during fiscal year 2016 were estimated using the Black Scholes option valuation method with the following weighted average assumptions as of October 31, 2014: Fiscal Year 2015 October 31, 2014 Expected dividend yield —% Risk – free interest rate 1.39% Expected volatility 45.67% Expected life 4.00 On July 31, 2013, the Company granted 213,166 SARs under the 2010 Incentive Plan to certain key employees and outside directors at a strike price of $11.34 and a grant date fair value of $4.67 , as of July 2, 2016 , 200,833 remain outstanding. The grant date fair value for the awards granted during fiscal year 2014 were estimated using the Black Scholes option valuation method with the following weighted average assumptions as July 31, 2013: Fiscal Year 2014 July 31, 2013 Expected dividend yield —% Risk – free interest rate 1.16% Expected volatility 52.12% Expected life 4.00 Subsequent to July 2, 2016 , the Company granted 242,500 SARs with a strike price of $ 8.18 and a grant date fair value of $2.42 . Share-based compensation expense is recognized only for those awards that are expected to vest, with forfeitures estimated at the date of grant based on the Company’s historical experience and future expectations. This forfeiture rate will be revised, if necessary, in subsequent periods if actual forfeitures differ from the amount estimated. Share-based compensation expense for fiscal years ended July 2, 2016 , June 27, 2015 and June 28, 2014 was $0.8 million , $0.7 million and $0.7 million , respectively. The Black-Scholes option valuation model is used by the Company for estimating the fair value of SARs. Option valuation models require the input of highly subjective assumptions, particularly for the expected term and expected stock price volatility. Changes in these assumptions can materially affect the fair value estimates. The intrinsic value for stock options and SARs exercised in fiscal years 2016 , 2015 and 2014 was $0.2 million , $1.9 million and $0.4 million , respectively. As of July 2, 2016 , total unrecognized compensation expense related to nonvested share-based compensation arrangements was approximately $0.9 million . This expense is expected to be recognized over a weighted-average period of 1.79 years . The following table summarizes the Company’s SARs activity for all plans from June 27, 2015 through July 2, 2016 : SARs SARs Aggregate Weighted Weighted Balances, June 27, 2015 855,836 813,831 $ 2,312 $ 7.99 2.5 Shares authorized — SARs granted (248,166 ) 248,166 10.26 SARs forfeited 26,999 (26,999 ) 9.48 SARs exercised — (63,333 ) 165 4.56 Balances, July 2, 2016 634,669 971,665 $ 339 $ 8.75 2.4 Exercisable at July 2, 2016 324,166 $ 339 $ 6.37 0.7 Additional information regarding SARs outstanding and exercisable as of July 2, 2016 , is as follows: Range of Number Outstanding Weighted Avg. Weighted Avg. Number Weighted $4.40 – $6.40 129,333 0.0 $ 4.77 129,333 $ 4.77 6.41 – 8.41 400,666 1.1 7.84 194,833 7.44 8.42 – 10.42 240,833 3.7 10.26 — — 10.43 – 11.34 200,833 2.1 11.34 — — $4.40 to $11.34 971,665 2.4 $ 8.75 324,166 $ 6.37 The Company has defined contribution plans available to U.S. employees who have attained age 21. Company contributions to the plans were approximately $0.6 million , $0.6 million , and $0.6 million during fiscal years 2016 , 2015 and 2014 , respectively.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Jul. 02, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Leases : As of July 2, 2016 and June 27, 2015 , the Company did not have any property and equipment financed under capital leases. The Company had equipment financed through capital leases with a net book value of $1.7 million during fiscal year 2014 . The related depreciation expense was $0.3 million for fiscal year 2014. As of July 2, 2016 , the Company has operating leases for certain equipment and production facilities, which expire at various dates during the next six years . Future minimum payments under non-cancelable operating leases at July 2, 2016 , are summarized as follows (in thousands): Fiscal Years Ending Operating Leases 2017 $ 7,666 2018 5,831 2019 2,805 2020 1,261 2021 732 Thereafter 90 Total minimum lease payments $ 18,385 Rental expense under operating leases was approximately $6.6 million , $3.8 million , and $1.8 million during fiscal years 2016 , 2015 and 2014 , respectively. Warranty Costs : The Company provides warranties on certain product sales, and 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. The Company establishes warranty reserves based on historical warranty costs for each product line combined with liability estimates based on the prior twelve months’ sales activities. As of July 2, 2016 and June 27, 2015 , the reserve for warranty costs was approximately $30,000 and $115,000 , respectively. If actual return rates and/or repair and replacement costs differ significantly from estimates, adjustments to recognize additional cost of sales may be required in future periods. Warranty expense for fiscal years 2016 , 2015 and 2014 was related to workmanship claims on keyboards and certain EMS products. Litigation : The Company is party to certain lawsuits or claims in the ordinary course of business. The Company does not believe that these proceedings, individually or in the aggregate, will have a material adverse effect on the financial position, results of operations or cash flow of the Company. Indemnification Rights : Under the Company’s bylaws, the Company’s directors and officers have certain rights to indemnification by the Company against certain liabilities that may arise by reason of their status or service as directors or officers. The Company maintains director and officer insurance, which may cover certain liabilities arising from its obligation to indemnify its directors and officers and former directors in certain circumstances.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	12 Months Ended
	Jul. 02, 2016
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. There have been no changes in the fair value methodologies used at July 2, 2016 and June 27, 2015 . 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 July 2, 2016 and June 27, 2015 (in thousands): July 2, 2016 Level 1 Level 2 Level 3 Total Fair Value Financial Assets: Foreign currency forward contracts $ — $ 136 $ — $ 136 Financial Liabilities: Interest rate swaps $ — $ (498 ) $ — $ (498 ) Foreign currency forward contracts $ — $ (11,112 ) $ — $ (11,112 ) June 27, 2015 Level 1 Level 2 Level 3 Total Fair Value Financial Assets: Interest rate swaps $ — $ 25 $ — $ 25 Financial Liabilities: Interest rate swaps $ — $ (443 ) $ — $ (443 ) Foreign currency forward contracts $ — $ (6,799 ) $ — $ (6,799 ) The Company currently has forward contracts to hedge known future cash outflows for expenses denominated in the Mexican peso and an interest rate swap to mitigate risk associated with certain borrowings under the Company’s debt arrangement. 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 (loss), 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 July 2, 2016 and June 27, 2015 reasonably approximate their fair value. The Company’s long-term debt primarily consists of a revolving line of credit and a term loan. Borrowings under the revolving line of credit bear interest at either a “Base Rate” or a “Fixed Rate,” as elected by the Company. Each of these rates is a variable floating rate dependent upon current market conditions and the Company’s current credit risk as discussed in footnote 4. As a result of the determinable market rate for our revolving credit and term debt it is classified within Level 2 of the fair value hierarchy. As of July 2, 2016 , the discounted cash flows of the revolving line of credit and the term loan were estimated to be $18.1 million and $26.3 million , respectively, with carrying values that reasonably approximate their fair values. As of June 27, 2015 , the discounted cash flows of the revolving line of credit and the term loan were estimated to be $11.6 million and $31.3 million , respectively, with carrying values that reasonably approximate their fair values.

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS	12 Months Ended
	Jul. 02, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE FINANCIAL INSTRUMENTS	DERIVATIVE FINANCIAL INSTRUMENTS As of July 2, 2016 , the Company had outstanding foreign currency forward contracts of $69.4 million . These contract maturity dates extend through June 2019 . As of July 2, 2016 , the net amount of unrealized loss expected to be reclassified into earnings within the next 12 months is approximately $3.3 million . During the fiscal year ended July 2, 2016 , the Company entered into $25.9 million of foreign currency forward contracts and settled $21.5 million of such contracts. During the fiscal year ended June 27, 2015 , the Company entered into $23.1 million of foreign currency forward contracts and settled $20.5 million of such contracts. During the fiscal year ended June 28, 2014 , the Company entered into $15.2 million of foreign currency forward contracts and settled $22.5 million of such contracts. On October 1, 2014, the Company entered into an interest rate swap contract with an effective date of September 1, 2015 and a termination date of September 3, 2019, with a notional amount of $25.0 million related to the borrowings outstanding under the term loan and line of credit. As of July 2, 2016 and June 27, 2015 , the remaining notional balance of this swap was $20.5 million and $25.0 million , respectively. This interest rate swap pays the Company variable interest at the one month LIBOR rate, and the Company pays the counter party a fixed interest rate. The fixed interest rate for the contract is 1.97% that replaces the one month LIBOR rate component of our contractual interest to be paid to WFB as part of our debt facilities. Based on the terms of the interest rate swap contract and the underlying borrowings outstanding under the term loan, the interest rate contract was determined to be effective, and thus qualifies as a cash flow hedge. The following table summarizes the fair value of derivative instruments in the Consolidated Balance Sheets as of July 2, 2016 and June 27, 2015 (in thousands): July 2, 2016 June 27, 2015 Derivatives Designated as Hedging Instruments Balance Sheet Location Fair Value Fair Value Foreign currency forward contracts Other long-term assets $ 136 $ — Foreign currency forward contracts Other current liabilities $ (4,670 ) $ (2,517 ) Foreign currency forward contracts Other long-term liabilities $ (6,442 ) $ (4,282 ) Interest rate swaps Other long-term assets $ — $ 25 Interest rate swaps Other current liabilities $ (264 ) $ (271 ) Interest rate swaps Other long-term liabilities $ (234 ) $ (172 ) The following table summarizes the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Income for the fiscal year 2016 (in thousands): Derivatives Designated as Hedging Instruments Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) AOCI Balance Effective Effective Portion AOCI Balance Forward contracts Cost of sales $ (4,487 ) $ (6,939 ) $ 4,181 $ (7,245 ) Interest rate swap Interest expense (276 ) (348 ) 296 (328 ) Total $ (4,763 ) $ (7,287 ) $ 4,477 $ (7,573 ) The following table summarizes the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Income for the fiscal year 2015 (in thousands): Derivatives Designated as Hedging Instruments Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) AOCI Balance Effective Effective Portion AOCI Balance Forward contracts Cost of sales $ 2,403 $ (7,208 ) $ 318 $ (4,487 ) Interest rate swap Interest expense — (276 ) — (276 ) Total $ 2,403 $ (7,484 ) $ 318 $ (4,763 ) The following table summarizes the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Income for the fiscal year 2014 (in thousands): Derivatives Designated as Hedging Instruments Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) AOCI Balance Effective Effective Portion AOCI Balance Forward contracts Cost of sales $ 1,313 $ 1,915 $ (825 ) $ 2,403 As of July 2, 2016 , the Company does not have any foreign exchange contracts with credit-risk-related contingent features. The Company is subject to the risk of fluctuating interest rates from our line of credit and foreign currency risk resulting from our China operations. The Company does not currently manage these risk exposures by using derivative instruments.

ENTERPRISE-WIDE DISCLOSURES

ENTERPRISE-WIDE DISCLOSURES	12 Months Ended
	Jul. 02, 2016
Segment Reporting [Abstract]
ENTERPRISE-WIDE DISCLOSURES	ENTERPRISE-WIDE DISCLOSURES Operating segments are defined in ASC Topic 280, Segment Reporting as components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is its Chief Executive Officer. As of July 2, 2016 , the Company operates and internally manages a single operating segment, Electronics Manufacturing Services as this is the only discrete financial information that is regularly reviewed by the chief operating decision maker. This segment provides integrated electronic and mechanical engineering, assembly, sourcing and procurement, logistics, and new product testing for our customers. Products and Services Of the revenues for the years ended July 2, 2016 , June 27, 2015 , and June 28, 2014 , EMS sales and services were $483.3 million , $432.1 million and $303.1 million , respectively. Keyboard sales for the years ended July 2, 2016 , June 27, 2015 , and June 28, 2014 were $1.7 million , $1.9 million and $2.3 million , respectively. Geographic Areas Net sales and long-lived assets (property, plant, and equipment) by geographic area for the years ended and as of July 2, 2016 , June 27, 2015 and June 28, 2014 are summarized in the following table. Net sales set forth below are based on the shipping destination. Long-lived assets information is based on the physical location of the asset. Fiscal Year Ended (in thousands) 2016 2015 2014 Geographic net sales: Domestic (U.S.) $ 347,552 $ 301,891 $ 197,700 Foreign 137,413 132,106 107,694 Total $ 484,965 $ 433,997 $ 305,394 Long-lived assets: United States $ 11,406 $ 8,969 $ 2,888 Mexico 15,756 17,156 19,577 China 763 849 1,131 Total $ 27,925 $ 26,974 $ 23,596 Percentage of net sales made to customers located in the following countries: Fiscal Year Ended 2016 2015 2014 United States 72% 70% 65% Canada 7 10 16 Other foreign countries (a) 21 20 19 Total 100% 100% 100% (a) No other individual foreign country accounted for 10% or more of the foreign sales in fiscal years 2016, 2015 or 2014. Significant Customers The percentage of net sales to and trade accounts receivables from significant customers were as follows: Percentage of Net Percentage of 2016 2015 2014 2016 2015 Customer A 18% 17% 20% 24% 18% Customer B * * 15% * * Customer C * * 15% * * * Current customer amount represents less than 10%.

QUARTERLY FINANCIAL DATA

QUARTERLY FINANCIAL DATA	12 Months Ended
	Jul. 02, 2016
Quarterly Financial Information Disclosure [Abstract]
QUARTERLY FINANCIAL DATA	QUARTERLY FINANCIAL DATA (Unaudited) Fiscal Year Ended July 2, 2016 First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands, except per share amounts) Net sales $ 126,209 $ 116,403 $ 118,448 $ 123,905 Gross profit 8,919 9,110 9,955 10,841 Income before income taxes 1,247 1,882 2,137 2,885 Net income 817 1,787 1,783 2,146 Earnings per common share-basic $ 0.08 $ 0.17 $ 0.17 $ 0.20 Earnings per common share-diluted $ 0.07 $ 0.16 $ 0.16 $ 0.20 Weighted average shares outstanding Basic 10,706 10,710 10,711 10,714 Diluted 11,391 11,418 11,068 10,966 Fiscal Year Ended June 27, 2015 First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands, except per share amounts) Net sales $ 86,342 $ 114,311 $ 112,915 $ 120,429 Gross profit 4,238 9,239 9,436 10,392 (Loss) income before income taxes (1,894 ) 2,113 2,234 2,847 Net (loss) income (1,523 ) 1,626 1,861 2,340 (Loss) earnings per common share-basic $ (0.14 ) $ 0.15 $ 0.18 $ 0.22 (Loss) earnings per common share-diluted $ (0.14 ) $ 0.14 $ 0.16 $ 0.21 Weighted average shares outstanding Basic 10,548 10,552 10,552 10,636 Diluted 10,548 11,471 11,556 11,414

ACQUISITIONS

ACQUISITIONS	12 Months Ended
	Jul. 02, 2016
Business Combinations [Abstract]
ACQUISITIONS	ACQUISITIONS 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 was 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 determined the purchase price allocations on the acquisition based on estimates of the fair values of the assets acquired. On September 3, 2014, the Company acquired all of the outstanding stock of Ayrshire, resulting in Ayrshire becoming a wholly owned subsidiary of the Company. Ayrshire provides printed circuit board assembly and other electronic manufacturing services to a diversified customer base through manufacturing facilities operated by Ayrshire or its subsidiaries in Minnesota, Arkansas, Mississippi, and Kentucky and through a sheltered maquiladora facility in Reynosa, Mexico. The Reynosa, Mexico operations were moved to the Company's existing facility in Juarez, Mexico. This acquisition expands our printed circuit board assembly capacity, total revenue, and adds to and diversifies our customer base with the addition of many new multi-national companies. The total cash payment of approximately $48.0 million was funded through borrowings on our term loan, revolving line of credit, and cash on hand. The Company incurred approximately $775,000 of costs related to due diligence. During the fourth quarter of 2016, management approved a plan for the closure of the Harrodsburg, Kentucky facility in order to reduce costs and further improve operating efficiencies. Customer programs from this location will be transferred to other manufacturing facilities primarily in the United States. The Company expects to incur approximately $250,000 in costs related to the closure of this facility as well as transferring customer programs to other locations. The Harrodsburg, Kentucky facility is expected to be shut down by the end of the first quarter of fiscal year 2017. The following table summarizes the purchase price paid for Ayrshire and the fair value of the assets acquired and liabilities assumed as of the date of acquisition (in thousands): Estimated Fair Values At September 3, 2014 Purchase Price Paid $ 48,010 Cash Acquired (46 ) Purchase Price, Net of Cash Received $ 47,964 Cash $ 46 Accounts Receivable 21,211 Inventories 21,772 Other Current Assets 1,013 Property, Plant and Equipment 7,823 Favorable Leases 2,941 Customer Relationships 2,833 Non-Compete Agreements 196 Goodwill 8,217 Other Assets 42 Accounts Payable (11,070 ) Accrued Salaries and Wages (2,188 ) Other Current Liabilities (2,408 ) Deferred Tax Liability (2,418 ) Fair Value of Assets Acquired $ 48,010 The Ayrshire acquisition was 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 determined the purchase price allocations on the acquisition based on estimates of the fair values of the assets acquired and liabilities assumed. The following summary pro forma condensed consolidated financial information reflects the Ayrshire acquisition as if it had occurred on June 30, 2013 for purposes of the statements of income. This summary pro forma information is not necessarily representative of what the Company’s results of operations would have been had this acquisition in fact occurred on June 30, 2013 and is not intended to project the Company’s results of operations for any future period. Pro forma condensed consolidated financial information for the years ended June 27, 2015 and June 28, 2014 (in thousands): Fiscal Year Ended (unaudited) June 27, 2015 June 28, 2014 Net sales $ 457,475 $ 431,274 Net income $ 4,136 $ 9,476

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	12 Months Ended
	Jul. 02, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND INTANGIBLE ASSETS	GOODWILL AND OTHER INTANGIBLE ASSETS The Company recorded goodwill in connection with the Ayrshire and Sabre acquisitions resulting primarily from the synergies that resulted from the Company’s acquisitions and the assembled workforce. The goodwill is not amortized for financial accounting purposes. The goodwill from the acquisitions is not deductible for tax purposes. As of July 2, 2016 and June 27, 2015 , goodwill was recorded at $10.0 million . The changes in the carrying value of goodwill are as follows (in thousands): July 2, 2016 June 27, 2015 Goodwill, beginning of period $ 9,957 $ 1,740 Additions to goodwill during the period — 8,217 Goodwill, end of period $ 9,957 $ 9,957 The components of acquired intangible assets are as follows (in thousands): July 2, 2016 Amortization Period in Years Gross Carrying Amount Accumulated Amortization Net Carrying Amount Other intangible assets: Non-Compete Agreements 3 - 5 $ 568 $ (343 ) $ 225 Customer Relationships 10 4,803 (1,110 ) 3,693 Favorable Lease Agreements 4 - 7 2,941 (931 ) 2,010 Total $ 8,312 $ (2,384 ) $ 5,928 June 27, 2015 Amortization Period in Years Gross Carrying Amount Accumulated Amortization Net Carrying Amount Other intangible assets: Non-Compete Agreements 3 - 5 $ 568 $ (204 ) $ 364 Customer Relationships 10 4,803 (630 ) 4,173 Favorable Lease Agreements 4 - 7 2,941 (423 ) 2,518 Total $ 8,312 $ (1,257 ) $ 7,055 Amortization expense related to intangible assets was approximately $1.1 million and $1.0 million for the years ended July 2, 2016 and June 27, 2015 , respectively. Aggregate amortization expense related to existing intangible assets by fiscal year is currently estimated to be as follows (in thousands): Fiscal Years Ending Amount 2017 $ 1,128 2018 1,073 2019 818 2020 783 2021 784 Thereafter 1,342 Total amortization expense $ 5,928

SCHEDULE II

SCHEDULE II	12 Months Ended
	Jul. 02, 2016
Valuation and Qualifying Accounts [Abstract]
SCHEDULE II	KEY TRONIC CORPORATION AND SUBSIDIARIES CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS FISCAL YEARS ENDED JULY 2, 2016 , JUNE 27, 2015 , AND JUNE 28, 2014 Fiscal Year Ended 2016 2015 2014 (in thousands) Allowance for Obsolete Inventory Balance at beginning of year $ 417 $ 332 $ 381 Provisions 757 520 257 Dispositions (61 ) (435 ) (306 ) Balance at end of year $ 1,113 $ 417 $ 332 Allowance for Doubtful Accounts Balance at beginning of year $ 97 $ — $ 40 Provisions 38 97 37 Write-offs — — (77 ) Balance at end of year $ 135 $ 97 $ —

SIGNIFICANT ACCOUNTING POLICI25

SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Jul. 02, 2016
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the Company and its wholly owned subsidiaries in the United States, Mexico and China. Intercompany balances and transactions have been eliminated during consolidation.
Reclassification	Reclassifications Certain prior period reclassifications were made to conform with the current period presentation. These reclassifications had no effect on reported income, comprehensive income (loss), cash flows, total assets, or shareholders' equity as previously reported.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Estimates include the allowance for doubtful receivables, the provision for obsolete and non-saleable inventories, deferred tax assets and liabilities, uncertain tax positions, valuation of goodwill, impairment of long-lived assets, medical self-funded insurance liability, long-term incentive compensation accrual, the provision for warranty costs, the fair value of stock appreciation rights granted under the Company’s share-based compensation plan and purchase price allocation of acquired businesses. Due to uncertainties with respect to the assumptions and estimates, actual results could differ from those estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers investments with an original maturity of three months or less to be cash equivalents. Cash equivalents are carried at cost, which approximates fair value. The Company may have cash and cash equivalents at financial institutions that are in excess of federally insured limits from time to time.
Allowance for Doubtful Accounts	Allowance for Doubtful Accounts The Company evaluates the collectability of accounts receivable and records an allowance for doubtful accounts, which reduces the receivables to an amount that management reasonably estimates will be collected. A specific allowance is recorded against receivables considered to be impaired based on the Company’s knowledge of the financial condition of the customer. In determining the amount of the allowance, the Company considers several factors including the aging of the receivables, the current business environment and historical experience. After all attempts to collect a receivable have failed, the receivable is written off against the allowance.
Inventories	Inventories Inventories are stated at the lower of cost or market. Cost is determined principally using the first-in, first-out (FIFO) method. Customer orders are based upon forecasted quantities of product manufactured for shipment over defined periods. Raw material inventories are purchased to fulfill these customer requirements. Within these arrangements, customer demands for products frequently change, sometimes creating excess and obsolete inventories. The Company regularly reviews raw material inventories by customer for both excess and obsolete quantities. Wherever possible, the Company attempts to recover its full cost of excess and obsolete inventories from customers or, in some cases, through other markets. When it is determined that the Company’s carrying cost of such excess and obsolete inventories cannot be recovered in full, a charge is taken against income for the difference between the carrying cost and the estimated realizable amount.
Property, Plant and Equipment	Property, Plant and Equipment Property, plant and equipment are carried at cost and depreciated using straight-line methods over the expected useful lives of the assets. Repairs and maintenance costs are expensed as incurred.
Business Combinations	Business Combinations The Company recognizes the assets acquired and liabilities assumed in business combinations on the basis of their fair values at the date of acquisition. We assess the fair value of assets, including intangible assets, using a variety of methods and each asset is measured at fair value from the perspective of a market participant. The method used to estimate the fair values of intangible assets incorporates significant assumptions regarding the estimates a market participant would make in order to evaluate an asset, including a market participant’s use of the asset and the appropriate discount rates for a market participant. Assets recorded from the perspective of a market participant that are determined to not have economic use for us are expensed immediately. Any excess purchase price over the fair value of the net tangible and intangible assets acquired is allocated to goodwill. Transaction costs and restructuring costs associated with a business combination are expensed as incurred.
Impairment of Goodwill	Impairment of Goodwill The Company records intangible assets that are acquired individually or with a group of other assets in the financial statements at acquisition. In accordance with ASC 350, Goodwill and Other Intangible Assets , goodwill is not amortized but is required to be reviewed for impairment at least annually or when events or circumstances indicate that carrying value may exceed fair value. The Company tests goodwill by first performing a qualitative analysis (“Step 0”) to determine if it is more likely than not that the fair value of the reporting unit is greater than its carrying value. If the Company determines that it is not more likely than not that the fair value of the reporting unit is greater than its carrying value, the Company calculates the fair value of the reporting unit and compares the fair value of the reporting unit to its carrying value (“Step 1”). If the carrying value of the reporting unit exceeds the fair value, goodwill is potentially impaired and the second step (“Step 2”) of the impairment test must be performed. In the second step, the Company compares the implied fair value of the goodwill, as defined by ASC 350, to the carrying amount to determine the impairment loss, if any. The Company performed its annual qualitative Step 0 analysis as of April 3, 2016 and determined a Step 1 analysis was necessary due to market conditions. Based on the results of the Step 1 analysis, the Company concluded that the fair value of the reporting unit was greater than the carrying value of the reporting unit based on a methodology that utilized both an income approach and a market approach. We considered valuation factors including the Company's market capitalization, future discounted cash flows and an estimated control premium based upon a review of comparable market transactions. We will continue to monitor our market capitalization and impairment indicators.
Impairment of Long-Lived Assets	Impairment of Long-lived Assets The Company, using its best estimates based on reasonable and supportable assumptions and projections, reviews assets for impairment whenever events or changes in circumstances have indicated that the carrying amount of its assets might not be recoverable. Impaired assets are reported at the lower of cost or fair value.
Accrued Warranty	Accrued Warranty An accrual is made for expected warranty costs, with the related expense recognized in cost of goods sold. Management reviews the adequacy of this accrual quarterly based on historical analyses and anticipated product returns.
Self-funded Insurance	Self-funded Insurance The Company self-funds its domestic employee health plans. The Company contracts with a separate administrative service company to supervise and administer the programs and act as its representative. The Company reduces its risk under this self-funded platform by purchasing stop-loss insurance coverage for high dollar individual claims. In addition, if the aggregate annual claims amount to more than 125 percent of expected claims for the plan year this insurance will also pay those claims amounts exceeding that level. The Company estimates its exposure for claims incurred but not paid at the end of each reporting period and uses historical claims data supplied by the Company’s broker to estimate its self-funded insurance liability. This liability is subject to a total limitation that varies based on employee enrollment and factors that are established at each annual contract renewal. Actual claims experience may differ from the Company’s estimates. Costs related to the administration of the plan and related claims are expensed as incurred.
Revenue Recognition	Revenue Recognition Sales revenue from manufacturing is recognized upon shipment of the manufactured product per contractual terms. Upon shipment, title transfers and the customer assumes risks and rewards of ownership of the product. The price to the buyer is fixed or determinable and recoverability is reasonably assured. Unless specifically stated in contractual terms, there are no formal customer acceptance requirements or further obligations related to the manufacturing services; if any such requirements exist, then sales revenue is recognized at the time when such requirements are completed and such obligations are fulfilled. Revenue is recorded net of estimated returns of manufactured product based on management’s analysis of historical returns. Revenues and associated costs from engineering design, development services and tooling, which are performed under contract of short term durations, are recognized only after the completed performance of the service. Revenue from engineering design, development services and tooling represented approximately 1.7 percent , 2.5 percent and 3.4 percent of total revenue in fiscal years 2016 , 2015 , and 2014 , respectively.
Shipping and Handling Fees	Shipping and Handling Fees The Company classifies costs associated with shipping and handling fees as a component of cost of goods sold. Customer billings related to shipping and handling fees are reported as revenue.
Research, Development and Engineering	Research, Development and Engineering Research, development and engineering expenses include unreimbursed EMS costs as well as design and engineering costs associated with the production of EMS programs. Research, development and engineering costs are expensed as incurred.
Income Taxes	Income Taxes 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 provision. To date, we have not incurred charges for interest or penalties in relation to the underpayment of income taxes. The tax years 1997 through the present remain open to examination by the major U.S. taxing jurisdictions to which we are subject. Refer to Note 6 for further discussions.
Derivative Instruments and Hedging Activities	Derivative Instruments and Hedging Activities The Company has entered into foreign currency forward contracts and an interest rate swap 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 uses derivatives to manage the variability of foreign currency fluctuations of expenses in our Mexico facilities and interest rate risk associated with certain borrowings under the Company’s debt arrangement. The foreign currency forward contracts and interest rate swaps 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 and interest rate swaps 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 and interest rate swaps 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.
Earnings Per Common Share	Earnings Per Common Share Basic earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per common share 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 stock options were used to repurchase common shares at the average market price during the period. The computation of diluted earnings per common share does not assume conversion, exercise, or contingent issuance of common stock equivalent shares that would have an anti-dilutive effect on earnings per share.
Foreign Currency Transactions	Foreign Currency Transactions The functional currency of the Company’s subsidiaries in Mexico and China is the U.S. dollar. Realized foreign currency transaction gains and losses for local currency denominated assets and liabilities are included in cost of goods sold.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The carrying values of cash and cash equivalents, accounts receivable and current liabilities reflected on the balance sheets at July 2, 2016 and June 27, 2015 , reasonably approximate their fair value. As of July 2, 2016 , the Company had an outstanding balance on the line of credit of $18.1 million and term loan of $26.3 million . The carrying value of debt approximates fair value. As of June 27, 2015 , the Company had an outstanding balance on the line of credit of $11.6 million and term loan of $31.3 million .
Share-based Compensation	Share-based Compensation The Company’s incentive plan may provide for equity and liability awards to employees in the form of stock options, stock appreciation rights, 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 included in cost of goods sold, research, development and engineering, 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.
Restructuring	Restructuring Periodically the Company may consolidate excess facilities in order to maximize efficiencies and reduce its costs. In connection with these activities, we recognize restructuring charges for employee termination costs, exit costs and long-lived asset impairment when applicable. The recognition of these restructuring charges require that we make certain judgments and estimates regarding the nature, timing and amount of costs associated with the planned exit activity. To the extent our actual results differ from our estimates and assumptions, we may be required to revise the estimates of future liabilities, requiring the recognition of additional restructuring charges or the reduction of liabilities already recognized. Such changes to previously estimated amounts may be material to the consolidated financial statements. At the end of each reporting period, we evaluate the remaining accrued balances to ensure that no excess accruals are retained and the utilization of the provisions are for their intended purpose in accordance with developed exit plans.
Newly Adopted and Recent Accounting Pronouncements	Newly Adopted and Recent Accounting Pronouncements In May 2014, Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2014-09 (ASU 2014-09), Revenue from Contracts with Customers. The guidance in this Update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The standard's core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under current guidance. This may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The amendments in this Update are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is not permitted. Companies have the option of using either a full or modified retrospective approach in applying this standard. The Company is in the process of assessing the impact of ASU 2014-09 on its consolidated financial statements. In July 2015, the FASB issued final guidance that simplifies the subsequent measurement of inventory for which cost is determined by methods other than last-in first-out (“LIFO”) and the retail inventory method. For inventory within the scope of the new guidance, entities will be required to compare the cost of inventory to only one measure, its net realizable value, and not the three measures required by the existing guidance. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The new guidance should not change how entities initially measure the cost of inventory. The guidance will be effective for the Company in the fiscal year beginning July 3, 2017. Early adoption is permitted. We have not yet determined the impact this new guidance may have on our financial statements. In September 2015, the FASB issued Accounting Standards Update 2015-16 (ASU 2015-16), Simplifying the Accounting for Measurement-Period Adjustments . The amendments in this Update require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments in this Update require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments of ASU 2015-16 did not have a significant impact on the Company’s consolidated financial statements. In November 2015, the FASB issued Accounting Standards Update 2015-17, Income Taxes . The amendments in this Update require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The guidance will be effective for the Company beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted for all entities. The Company retrospectively adopted this ASU during the second quarter of fiscal year 2016. The following table summarizes the adjustments made to conform prior period classifications with the new guidance (in thousands): June 27, 2015 As Filed Reclass As Adjusted Current deferred income tax assets $ 6,643 $ (6,643 ) $ — Long-term deferred income tax assets 80 6,643 6,723 Long-term deferred income tax liabilities (501 ) — (501 ) Net deferred tax assets $ 6,222 $ — $ 6,222 In February 2016, the FASB issued Accounting Standards Update 2016-02 (ASU 2016-02), Leases which supersedes ASC 840 Leases and creates a new topic, ASC 842 Leases. This update requires lessees to recognize a lease asset and a lease liability for all leases, including operating leases, with a term greater than 12 months on its balance sheet. The update also expands the required quantitative and qualitative disclosures surrounding leases. This update is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, with earlier adoption permitted. This update will be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently evaluating the effect of this update on its consolidated financial statements. In March 2016, the FASB issued Accounting Standards Update 2016-09 (ASU 2016-09), Improvements to Employee Share-Based Payment Accounting . This update simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This update is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years, with earlier adoption permitted. The Company is currently evaluating the effect of this update on its consolidated financial statements. In August 2016, the FASB issued Accounting Standards Update 2016-15 (ASU 2016-15), Classification of Certain Cash Receipts and Cash Payments . This update provides guidance on how to record eight specific cash flow issues. This update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted and a retrospective transition method to each period should be presented. The Company is currently evaluating the effect of this update on its consolidated financial statements.
Fiscal Year	Fiscal Year The Company operates on a 52/53 week fiscal year. Fiscal years end on the Saturday nearest June 30. As such, fiscal years 2016 , 2015 , and 2014 , ended on July 2, 2016 , June 27, 2015 , and June 28, 2014 , respectively. Fiscal year 2016 is a 53 week year whereas fiscal years 2015 and 2014 were 52 week years.

INVENTORIES (Tables)

INVENTORIES (Tables)	12 Months Ended
	Jul. 02, 2016
Inventory Disclosure [Abstract]
Components of Inventories	The components of inventories consist of the following (in thousands): July 2, 2016 June 27, 2015 Finished goods $ 13,384 $ 8,019 Work-in-process 18,988 15,220 Raw materials and supplies 74,634 68,355 $ 107,006 $ 91,594

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	12 Months Ended
	Jul. 02, 2016
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property, plant and equipment consists of the following: Life July 2, 2016 June 27, 2015 (in years) (in thousands) Land — $ 2,940 $ 2,940 Buildings and improvements 3 to 30 23,737 23,134 Equipment 1 to 10 53,095 48,126 Furniture and fixtures 3 to 5 2,924 3,065 82,696 77,265 Accumulated depreciation (54,771 ) (50,291 ) $ 27,925 $ 26,974

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	12 Months Ended
	Jul. 02, 2016
Debt Disclosure [Abstract]
Schedule of Maturities of Long-term Debt	Debt maturities as of July 2, 2016 for the next five years and thereafter are as follows (in thousands): Fiscal Years Ending Amount 2017 $ 5,000 2018 5,000 2019 5,000 2020 29,323 2021 — Thereafter — Total debt payments $ 44,323

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Jul. 02, 2016
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit)	Income tax provision consists of the following: Fiscal Year Ended July 2, 2016 June 27, 2015 June 28, 2014 (in thousands) Current income tax provision: United States $ 1,014 $ 1,701 $ 1,220 Foreign 1,960 975 1,017 2,974 2,676 2,237 Deferred income tax benefit: United States (1,285 ) (1,486 ) 1,566 Foreign (71 ) (194 ) (2,193 ) (1,356 ) (1,680 ) (627 ) Total income tax provision $ 1,618 $ 996 $ 1,610
Effective Tax Rate Reconciliation	The Company’s effective tax rate differs from the federal tax rate as follows: Fiscal Year Ended July 2, 2016 June 27, 2015 June 28, 2014 (in thousands) Federal income tax provision at statutory rates $ 2,771 $ 1,802 $ 3,136 State income taxes, net of federal tax effect 250 133 — Foreign tax rate differences (442 ) (80 ) (439 ) Effect of income tax credits (1,254 ) (1,085 ) (202 ) Effect of repatriation of foreign earnings, net (161 ) (80 ) 287 Other 454 124 330 Transaction costs — 182 — Effect of IETU repeal — — (1,502 ) Income tax provision $ 1,618 $ 996 $ 1,610
Schedule of Income before Income Tax, Domestic and Foreign	The domestic and foreign components of income before income taxes were: Fiscal Year Ended July 2, 2016 June 27, 2015 June 28, 2014 (in thousands) Domestic $ 2,228 $ 3,395 $ 4,687 Foreign 5,923 1,905 4,536 Income before income taxes $ 8,151 $ 5,300 $ 9,223
Schedule of Deferred Tax Assets and Liabilities	Deferred income tax assets and liabilities consist of the following at: July 2, 2016 June 27, 2015 (in thousands) Deferred tax assets: Tax credit carryforwards, net $ 4,056 $ 2,843 Foreign subsidiaries - future tax credits 840 840 Inventory 508 559 Accruals 4,270 4,579 Mark-to-market adjustments 4,043 2,498 Other 86 138 Deferred income tax assets $ 13,803 $ 11,457 Deferred tax liabilities: Foreign subsidiaries – unremitted earnings (2,098 ) (2,258 ) Fixed assets (1,025 ) (941 ) Identifiable intangibles (1,613 ) (1,866 ) Other (85 ) (170 ) Deferred income tax liabilities $ (4,821 ) $ (5,235 ) Net deferred income tax assets $ 8,982 $ 6,222 Balance sheet caption reported in: Long-term deferred income tax asset $ 8,982 $ 6,723 Long-term deferred income tax liability — (501 ) Net deferred income tax asset $ 8,982 $ 6,222
Schedule of Unrecognized Tax Benefits Roll Forward	A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Fiscal Year Ended July 2, 2016 June 27, 2015 June 28, 2014 (in thousands) Beginning Balance $ 3,446 $ 3,072 $ 3,031 Additions based on tax positions related to the current year 314 374 41 Ending Balance $ 3,760 $ 3,446 $ 3,072

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	12 Months Ended
	Jul. 02, 2016
Earnings Per Share [Abstract]
Reconciliation of Denominator and Number of Antidilutive Common Share Awards not Included in Diluted Earnings Per Share Calculation	Fiscal Year Ended (in thousands, except per share information) July 2, 2016 June 27, 2015 June 28, 2014 Net income $ 6,533 $ 4,304 $ 7,613 Weighted average shares outstanding– basic 10,710 10,572 10,528 Effect of dilutive common stock awards 568 714 830 Weighted average shares outstanding – diluted 11,278 11,286 11,358 Earnings per share – basic $ 0.61 $ 0.41 $ 0.72 Earnings per share – diluted $ 0.58 $ 0.38 $ 0.67 Antidilutive SARs not included in diluted earnings per share 442 208 208

STOCK OPTION AND BENEFIT PLANS

STOCK OPTION AND BENEFIT PLANS (Tables)	12 Months Ended
	Jul. 02, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Grant Date Fair Value for Awards Estimated Using Option Valuation Method with Weighted Average Assumptions	On July 29, 2015, the Company granted 248,166 SARs under the 2010 Incentive Plan to certain key employees and outside directors at a strike price of $10.26 and a grant date fair value of $3.65 , as of July 2, 2016 , 240,833 remain outstanding. The grant date fair value for the awards granted during fiscal year 2016 were estimated using the Black Scholes option valuation method with the following weighted average assumptions as of July 29, 2015: Fiscal Year 2016 July 29, 2015 Expected dividend yield —% Risk – free interest rate 1.39% Expected volatility 43.66% Expected life 4.00 On October 31, 2014, the Company granted 213,166 SARs under the 2010 Incentive Plan to certain key employees and outside directors at a strike price of $8.22 and a grant date fair value of $3.04 , as of July 2, 2016 , 205,833 remain outstanding. The grant date fair value for the awards granted during fiscal year 2016 were estimated using the Black Scholes option valuation method with the following weighted average assumptions as of October 31, 2014: Fiscal Year 2015 October 31, 2014 Expected dividend yield —% Risk – free interest rate 1.39% Expected volatility 45.67% Expected life 4.00 On July 31, 2013, the Company granted 213,166 SARs under the 2010 Incentive Plan to certain key employees and outside directors at a strike price of $11.34 and a grant date fair value of $4.67 , as of July 2, 2016 , 200,833 remain outstanding. The grant date fair value for the awards granted during fiscal year 2014 were estimated using the Black Scholes option valuation method with the following weighted average assumptions as July 31, 2013: Fiscal Year 2014 July 31, 2013 Expected dividend yield —% Risk – free interest rate 1.16% Expected volatility 52.12% Expected life 4.00
Summarizes Option/SARs Activity of All Plans	The following table summarizes the Company’s SARs activity for all plans from June 27, 2015 through July 2, 2016 : SARs SARs Aggregate Weighted Weighted Balances, June 27, 2015 855,836 813,831 $ 2,312 $ 7.99 2.5 Shares authorized — SARs granted (248,166 ) 248,166 10.26 SARs forfeited 26,999 (26,999 ) 9.48 SARs exercised — (63,333 ) 165 4.56 Balances, July 2, 2016 634,669 971,665 $ 339 $ 8.75 2.4 Exercisable at July 2, 2016 324,166 $ 339 $ 6.37 0.7
Additional Information Regarding Options Outstanding	Additional information regarding SARs outstanding and exercisable as of July 2, 2016 , is as follows: Range of Number Outstanding Weighted Avg. Weighted Avg. Number Weighted $4.40 – $6.40 129,333 0.0 $ 4.77 129,333 $ 4.77 6.41 – 8.41 400,666 1.1 7.84 194,833 7.44 8.42 – 10.42 240,833 3.7 10.26 — — 10.43 – 11.34 200,833 2.1 11.34 — — $4.40 to $11.34 971,665 2.4 $ 8.75 324,166 $ 6.37

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Jul. 02, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Rental Payments for Operating and Capital Leases	Future minimum payments under non-cancelable operating leases at July 2, 2016 , are summarized as follows (in thousands): Fiscal Years Ending Operating Leases 2017 $ 7,666 2018 5,831 2019 2,805 2020 1,261 2021 732 Thereafter 90 Total minimum lease payments $ 18,385

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	12 Months Ended
	Jul. 02, 2016
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 July 2, 2016 and June 27, 2015 (in thousands): July 2, 2016 Level 1 Level 2 Level 3 Total Fair Value Financial Assets: Foreign currency forward contracts $ — $ 136 $ — $ 136 Financial Liabilities: Interest rate swaps $ — $ (498 ) $ — $ (498 ) Foreign currency forward contracts $ — $ (11,112 ) $ — $ (11,112 ) June 27, 2015 Level 1 Level 2 Level 3 Total Fair Value Financial Assets: Interest rate swaps $ — $ 25 $ — $ 25 Financial Liabilities: Interest rate swaps $ — $ (443 ) $ — $ (443 ) Foreign currency forward contracts $ — $ (6,799 ) $ — $ (6,799 )

DERIVATIVE FINANCIAL INSTRUME34

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
	Jul. 02, 2016
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 Sheets as of July 2, 2016 and June 27, 2015 (in thousands): July 2, 2016 June 27, 2015 Derivatives Designated as Hedging Instruments Balance Sheet Location Fair Value Fair Value Foreign currency forward contracts Other long-term assets $ 136 $ — Foreign currency forward contracts Other current liabilities $ (4,670 ) $ (2,517 ) Foreign currency forward contracts Other long-term liabilities $ (6,442 ) $ (4,282 ) Interest rate swaps Other long-term assets $ — $ 25 Interest rate swaps Other current liabilities $ (264 ) $ (271 ) Interest rate swaps Other long-term liabilities $ (234 ) $ (172 )
Gain (Loss) of Derivative Instruments in Statement of Operations	The following table summarizes the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Income for the fiscal year 2016 (in thousands): Derivatives Designated as Hedging Instruments Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) AOCI Balance Effective Effective Portion AOCI Balance Forward contracts Cost of sales $ (4,487 ) $ (6,939 ) $ 4,181 $ (7,245 ) Interest rate swap Interest expense (276 ) (348 ) 296 (328 ) Total $ (4,763 ) $ (7,287 ) $ 4,477 $ (7,573 ) The following table summarizes the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Income for the fiscal year 2015 (in thousands): Derivatives Designated as Hedging Instruments Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) AOCI Balance Effective Effective Portion AOCI Balance Forward contracts Cost of sales $ 2,403 $ (7,208 ) $ 318 $ (4,487 ) Interest rate swap Interest expense — (276 ) — (276 ) Total $ 2,403 $ (7,484 ) $ 318 $ (4,763 ) The following table summarizes the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Income for the fiscal year 2014 (in thousands): Derivatives Designated as Hedging Instruments Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) AOCI Balance Effective Effective Portion AOCI Balance Forward contracts Cost of sales $ 1,313 $ 1,915 $ (825 ) $ 2,403

ENTERPRISE-WIDE DISCLOSURES (Ta

ENTERPRISE-WIDE DISCLOSURES (Tables)	12 Months Ended
	Jul. 02, 2016
Segment Reporting [Abstract]
Net Sales and Long-Lived Assets (Property, Plant, and Equipment) by Geographic Area	Net sales and long-lived assets (property, plant, and equipment) by geographic area for the years ended and as of July 2, 2016 , June 27, 2015 and June 28, 2014 are summarized in the following table. Net sales set forth below are based on the shipping destination. Long-lived assets information is based on the physical location of the asset. Fiscal Year Ended (in thousands) 2016 2015 2014 Geographic net sales: Domestic (U.S.) $ 347,552 $ 301,891 $ 197,700 Foreign 137,413 132,106 107,694 Total $ 484,965 $ 433,997 $ 305,394 Long-lived assets: United States $ 11,406 $ 8,969 $ 2,888 Mexico 15,756 17,156 19,577 China 763 849 1,131 Total $ 27,925 $ 26,974 $ 23,596
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area	Percentage of net sales made to customers located in the following countries: Fiscal Year Ended 2016 2015 2014 United States 72% 70% 65% Canada 7 10 16 Other foreign countries (a) 21 20 19 Total 100% 100% 100% (a) No other individual foreign country accounted for 10% or more of the foreign sales in fiscal years 2016, 2015 or 2014.
Percentage of Net Sales to and Trade Accounts Receivables from Significant Customers	The percentage of net sales to and trade accounts receivables from significant customers were as follows: Percentage of Net Percentage of 2016 2015 2014 2016 2015 Customer A 18% 17% 20% 24% 18% Customer B * * 15% * * Customer C * * 15% * *

QUARTERLY FINANCIAL DATA (Table

QUARTERLY FINANCIAL DATA (Tables)	12 Months Ended
	Jul. 02, 2016
Quarterly Financial Information Disclosure [Abstract]
Quarterly Financial Data	Fiscal Year Ended July 2, 2016 First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands, except per share amounts) Net sales $ 126,209 $ 116,403 $ 118,448 $ 123,905 Gross profit 8,919 9,110 9,955 10,841 Income before income taxes 1,247 1,882 2,137 2,885 Net income 817 1,787 1,783 2,146 Earnings per common share-basic $ 0.08 $ 0.17 $ 0.17 $ 0.20 Earnings per common share-diluted $ 0.07 $ 0.16 $ 0.16 $ 0.20 Weighted average shares outstanding Basic 10,706 10,710 10,711 10,714 Diluted 11,391 11,418 11,068 10,966 Fiscal Year Ended June 27, 2015 First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands, except per share amounts) Net sales $ 86,342 $ 114,311 $ 112,915 $ 120,429 Gross profit 4,238 9,239 9,436 10,392 (Loss) income before income taxes (1,894 ) 2,113 2,234 2,847 Net (loss) income (1,523 ) 1,626 1,861 2,340 (Loss) earnings per common share-basic $ (0.14 ) $ 0.15 $ 0.18 $ 0.22 (Loss) earnings per common share-diluted $ (0.14 ) $ 0.14 $ 0.16 $ 0.21 Weighted average shares outstanding Basic 10,548 10,552 10,552 10,636 Diluted 10,548 11,471 11,556 11,414

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	12 Months Ended
	Jul. 02, 2016	Jun. 28, 2014
Business Acquisition [Line Items]
Schedule of Recognized Identified Assets and Liabilities Acquired	The following table summarizes the purchase price paid for Ayrshire and the fair value of the assets acquired and liabilities assumed as of the date of acquisition (in thousands): Estimated Fair Values At September 3, 2014 Purchase Price Paid $ 48,010 Cash Acquired (46 ) Purchase Price, Net of Cash Received $ 47,964 Cash $ 46 Accounts Receivable 21,211 Inventories 21,772 Other Current Assets 1,013 Property, Plant and Equipment 7,823 Favorable Leases 2,941 Customer Relationships 2,833 Non-Compete Agreements 196 Goodwill 8,217 Other Assets 42 Accounts Payable (11,070 ) Accrued Salaries and Wages (2,188 ) Other Current Liabilities (2,408 ) Deferred Tax Liability (2,418 ) Fair Value of Assets Acquired $ 48,010	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
Business Acquisition, Pro Forma Information	Pro forma condensed consolidated financial information for the years ended June 27, 2015 and June 28, 2014 (in thousands): Fiscal Year Ended (unaudited) June 27, 2015 June 28, 2014 Net sales $ 457,475 $ 431,274 Net income $ 4,136 $ 9,476

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES ASSETS (Tables)	12 Months Ended
	Jul. 02, 2016
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract]
Schedule of Goodwill	The changes in the carrying value of goodwill are as follows (in thousands): July 2, 2016 June 27, 2015 Goodwill, beginning of period $ 9,957 $ 1,740 Additions to goodwill during the period — 8,217 Goodwill, end of period $ 9,957 $ 9,957
Schedule of Acquired Finite-Lived Intangible Assets by Major Class	The components of acquired intangible assets are as follows (in thousands): July 2, 2016 Amortization Period in Years Gross Carrying Amount Accumulated Amortization Net Carrying Amount Other intangible assets: Non-Compete Agreements 3 - 5 $ 568 $ (343 ) $ 225 Customer Relationships 10 4,803 (1,110 ) 3,693 Favorable Lease Agreements 4 - 7 2,941 (931 ) 2,010 Total $ 8,312 $ (2,384 ) $ 5,928 June 27, 2015 Amortization Period in Years Gross Carrying Amount Accumulated Amortization Net Carrying Amount Other intangible assets: Non-Compete Agreements 3 - 5 $ 568 $ (204 ) $ 364 Customer Relationships 10 4,803 (630 ) 4,173 Favorable Lease Agreements 4 - 7 2,941 (423 ) 2,518 Total $ 8,312 $ (1,257 ) $ 7,055
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	Aggregate amortization expense related to existing intangible assets by fiscal year is currently estimated to be as follows (in thousands): Fiscal Years Ending Amount 2017 $ 1,128 2018 1,073 2019 818 2020 783 2021 784 Thereafter 1,342 Total amortization expense $ 5,928

Significant Accounting Polici39

Significant Accounting Policies (Narrative) (Detail) - USD ($)	12 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jun. 28, 2014	Sep. 03, 2014
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Current deferred income tax assets		$ 0
Long-term deferred income tax assets		6,723,000
Long-term deferred income tax liability	$ 0	(501,000)
Net deferred tax assets	$ (8,982,000)	$ (6,222,000)
Percentage Of Expected Over Aggregate Annual Insurance Claims	125.00%
Percentage Of Revenues	1.70%	2.50%	3.40%
Maximum Amount Of Income Tax Benefits Percentage Realized Upon Ultimate Settlement	50.00%
Revolving loan	$ 18,073,000	$ 11,631,206.86
Term Loan, Amount Outstanding	$ 26,300,000	31,300,000		$ 35,000,000
Scenario, Previously Reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Current deferred income tax assets		6,643,000
Long-term deferred income tax assets		80,000
Long-term deferred income tax liability		(501,000)
Net deferred tax assets		(6,222,000)
Scenario, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Current deferred income tax assets		(6,643,000)
Long-term deferred income tax assets		6,643,000
Long-term deferred income tax liability		0
Net deferred tax assets		$ 0

Inventories (Components Of Inve

Inventories (Components Of Inventories) (Detail) - USD ($) $ in Thousands	Jul. 02, 2016	Jun. 27, 2015
Inventory Disclosure [Abstract]
Finished goods	$ 13,384	$ 8,019
Work-in-process	18,988	15,220
Raw materials and supplies	74,634	68,355
Inventories	$ 107,006	$ 91,594

Property Plant And Equipment (S

Property Plant And Equipment (Schedule Of Property Plant And Equipment) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jun. 28, 2014
Property, Plant and Equipment [Line Items]
Land	$ 2,940	$ 2,940
Buildings and improvements	23,737	23,134
Equipment	53,095	48,126
Furniture and fixtures	2,924	3,065
Property, plant and equipment, gross	82,696	77,265
Accumulated depreciation	(54,771)	(50,291)
Property, plant and equipment, net	$ 27,925	$ 26,974	$ 23,596
Buildings and improvements | Minimum
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Buildings and improvements | Maximum
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	30 years
Equipment | Minimum
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	1 year
Equipment | Maximum
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	10 years
Furniture and fixtures | Minimum
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Furniture and fixtures | Maximum
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	5 years

Long-Term Debt (Narrative) (Det

Long-Term Debt (Narrative) (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Jul. 02, 2016	Jul. 02, 2016	Jun. 27, 2015	Aug. 06, 2015
Debt Disclosure [Line Items]
Term Loan, Amount Outstanding	$ 44,323,000	$ 44,323,000
Revolving loan	18,073,000	18,073,000	$ 11,631,206.86
Letters of Credit Outstanding, Amount	400,000	400,000	300,000
Additional availability of line of credit	26,500,000	26,500,000	$ 18,000,000
Debt Instrument, Periodic Payment, Principal		1,250,000
2,017	5,000,000	5,000,000
2,018	5,000,000	5,000,000
2,019	5,000,000	5,000,000
2,020	29,323,000	29,323,000
2,021	0	0
Thereafter	$ 0	$ 0
Line of Credit | One-Month London Interbank Offered Rate
Debt Disclosure [Line Items]
Variable rate on line of credit facility (percent)	1.50%
Line of Credit | Federal Funds Rate
Debt Disclosure [Line Items]
Variable rate on line of credit facility (percent)	1.50%
Wells Fargo Bank
Debt Disclosure [Line Items]
Increase in revolving line of credit				$ 45,000,000
Debt Instrument, Basis Spread on Variable Rate, Scenario One | Long-term Debt | Fixed Rate
Debt Disclosure [Line Items]
Variable rate on line of credit facility (percent)		1.75%
Debt Instrument, Basis Spread on Variable Rate, Scenario One | Line of Credit | Line of Credit | Fixed Rate
Debt Disclosure [Line Items]
Variable rate on line of credit facility (percent)	1.75%
Debt Instrument, Basis Spread on Variable Rate, Scenario Two | Long-term Debt | Fixed Rate
Debt Disclosure [Line Items]
Variable rate on line of credit facility (percent)		2.00%
Debt Instrument, Basis Spread on Variable Rate, Scenario Two | Line of Credit | Line of Credit | Fixed Rate
Debt Disclosure [Line Items]
Variable rate on line of credit facility (percent)			2.00%
Debt Instrument, Basis Spread on Variable Rate, Scenario Three | Long-term Debt | Fixed Rate
Debt Disclosure [Line Items]
Variable rate on line of credit facility (percent)		2.25%
Debt Instrument, Basis Spread on Variable Rate, Scenario Three | Line of Credit | Line of Credit | Fixed Rate
Debt Disclosure [Line Items]
Variable rate on line of credit facility (percent)	2.25%
Maximum
Debt Disclosure [Line Items]
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate	3.50%	3.50%	3.25%
Minimum
Debt Disclosure [Line Items]
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate	2.447%	2.447%	2.28%

Trade Accounts Receivable Pur43

Trade Accounts Receivable Purchase Programs (Detail) - USD ($) $ in Millions	12 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jul. 16, 2015	Jun. 25, 2014
Receivables [Abstract]
Account Purchase Agreement Maximum Aggregate Amount			$ 20	$ 50
Trade Accounts Receivable Sold To Third Party	$ 78	$ 12.1
Accounts Receivable Factored To Banking Institutions and not yet collected	$ 1.7	$ 0.9

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Detail) - USD ($)	12 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jun. 28, 2014	Jun. 29, 2013
Income Tax Disclosure [Abstract]
Tax Credit Carryforwards	$ 7,900,000
Tax Credit Carryforwards, R&D	7,100,000
Income Tax Reconciliation Additional Repatriation Of Foreign Earnings	11,900,000
Estimated Federal And State Income Taxes And Potential Withholding Taxes	5,900,000
Undistributed Earnings of Foreign Subsidiaries	13,500,000
Unrecognized Deferred Tax Liability On Undistributed Earnings	2,100,000
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount	$ 0	$ 0	$ (1,502,000)
Remaining Contractual Term Of Tax Credit Expiration Date	20 years
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax	$ 726,000
Unrecognized Tax Benefits	$ 3,760,000	$ 3,446,000	$ 3,072,000	$ 3,031,000

Income Tax (Income Tax Expense

Income Tax (Income Tax Expense (Benefit)) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jun. 28, 2014
Income Tax Disclosure [Abstract]
United States	$ 1,014	$ 1,701	$ 1,220
Foreign	1,960	975	1,017
Current Income Tax Expense (Benefit)	2,974	2,676	2,237
United States	(1,285)	(1,486)	1,566
Foreign	(71)	(194)	(2,193)
Deferred Income Tax Expense (Benefit)	(1,356)	(1,680)	(627)
Total income tax provision	$ 1,618	$ 996	$ 1,610

Income Taxes (Effective Tax Rat

Income Taxes (Effective Tax Rate Reconciliation) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jun. 28, 2014
Income Tax Disclosure [Abstract]
Federal income tax provision at statutory rates	$ 2,771	$ 1,802	$ 3,136
State income taxes, net of federal tax effect	250	133	0
Foreign tax rate differences	(442)	(80)	(439)
Effect of income tax credits	(1,254)	(1,085)	(202)
Effect of repatriation of foreign earnings, net	(161)	(80)	287
Other	454	124	330
Transaction costs	0	182	0
Effect of IETU repeal	0	0	1,502
Total income tax provision	$ 1,618	$ 996	$ 1,610

Income Taxes (Components Of Inc

Income Taxes (Components Of Income before Income Taxes) (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Jul. 02, 2016	Apr. 02, 2016	Dec. 26, 2015	Sep. 26, 2015	Jun. 27, 2015	Mar. 28, 2015	Dec. 27, 2014	Sep. 27, 2014	Jul. 02, 2016	Jun. 27, 2015	Jun. 28, 2014
Income Tax Disclosure [Abstract]
Domestic									$ 2,228	$ 3,395	$ 4,687
Foreign									5,923	1,905	4,536
Income before income taxes	$ 2,885	$ 2,137	$ 1,882	$ 1,247	$ 2,847	$ 2,234	$ 2,113	$ (1,894)	$ 8,151	$ 5,300	$ 9,223

Income Taxes (Deferred Income T

Income Taxes (Deferred Income Tax Assets And Liabilities) (Detail) - USD ($) $ in Thousands	Jul. 02, 2016	Jun. 27, 2015
Income Tax Disclosure [Abstract]
Tax credit carryforwards, net	$ 4,056	$ 2,843
Foreign subsidiaries - future tax credits	840	840
Inventory	508	559
Accruals	4,270	4,579
Mark-to-market adjustments	4,043	2,498
Other	86	138
Deferred income tax assets	13,803	11,457
Foreign subsidiaries – unremitted earnings	(2,098)	(2,258)
Fixed assets	(1,025)	(941)
Identifiable intangibles	(1,613)	(1,866)
Other	(85)	(170)
Deferred income tax liabilities	4,821	5,235
Net deferred income tax assets	8,982	6,222
Long-term deferred income tax asset	8,982	6,723
Long-term deferred income tax liability	$ 0	$ (501)

Income Taxes (Schedule Of Unrec

Income Taxes (Schedule Of Unrecognized Tax Benefits) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jun. 28, 2014
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balances, beginning of period	$ 3,446	$ 3,072	$ 3,031
Additions based on tax positions related to the current year	314	374	41
Balances, end of period	$ 3,760	$ 3,446	$ 3,072

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 ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Jul. 02, 2016	Apr. 02, 2016	Dec. 26, 2015	Sep. 26, 2015	Jun. 27, 2015	Mar. 28, 2015	Dec. 27, 2014	Sep. 27, 2014	Jul. 02, 2016	Jun. 27, 2015	Jun. 28, 2014
Earnings Per Share [Abstract]
Net income	$ 2,146	$ 1,783	$ 1,787	$ 817	$ 2,340	$ 1,861	$ 1,626	$ (1,523)	$ 6,533	$ 4,304	$ 7,613
Weighted average shares outstanding– basic	10,714	10,711	10,710	10,706	10,636	10,552	10,552	10,548	10,710	10,572	10,528
Effect of dilutive common stock awards									568	714	830
Weighted average shares outstanding – diluted	10,966	11,068	11,418	11,391	11,414	11,556	11,471	10,548	11,278	11,286	11,358
Earnings per share – basic (in dollars per share)	$ 0.20	$ 0.17	$ 0.17	$ 0.08	$ 0.22	$ 0.18	$ 0.15	$ (0.14)	$ 0.61	$ 0.41	$ 0.72
Earnings per share – diluted (in dollars per share)	$ 0.20	$ 0.16	$ 0.16	$ 0.07	$ 0.21	$ 0.16	$ 0.14	$ (0.14)	$ 0.58	$ 0.38	$ 0.67
Antidilutive SARs not included in diluted earnings per share									442	208	208

Stock Option And Benefit Plan51

Stock Option And Benefit Plans (Narrative) (Detail) - USD ($) $ / shares in Units, $ in Thousands	Jul. 26, 2016	Jul. 29, 2015	Jul. 31, 2013	Oct. 31, 2015	Oct. 31, 2014	Jul. 02, 2016	Jun. 27, 2015	Jun. 28, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense						$ 800	$ 700	$ 700
Intrinsic value for options exercised						165	1,900	400
Unrecognized share based compensation expense						$ 900
Share Based Expense Recognition - Weighted-average period						1 year 9 months 15 days
Company contributions to 401K						$ 600	$ 600	$ 600
Number of Options/SARs Outstanding
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of SARs Granted			213,166	213,166		248,166
Strike Price		$ 10.26	$ 11.34		$ 8.22
Grant date fair value		$ 3.65	$ 4.67		$ 3.04
July 29, 2015 SAR Grant. [Member] | Number of Options/SARs Outstanding
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding SARs						240,833
October 31, 2014 SAR Grant [Member] | Number of Options/SARs Outstanding
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding SARs						205,833
July 31, 2013 SAR Grant [Member] | Number of Options/SARs Outstanding
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding SARs						200,833
Subsequent Event | Number of Options/SARs Outstanding
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of SARs Granted	242,500
Strike Price	$ 8.18
Grant date fair value	$ 2.42

Stock Option And Benefit Plan52

Stock Option And Benefit Plans (Grant Date Fair Value For Awards Estimated Using Option Valuation Method With Weighted Average Assumptions) (Detail) - Number of Options/SARs Outstanding	Jul. 29, 2015	Jul. 31, 2013	Oct. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend yield	0.00%	0.00%	0.00%
Risk – free interest rate	1.39%	1.16%	1.39%
Expected volatility	43.66%	52.12%	45.67%
Expected life	4 years	4 years	4 years

Stock Option And Benefit Plan53

Stock Option And Benefit Plans (Summarizes Option/SARs Activity Of All Plans) (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jun. 28, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Balances, June 27, 2015	634,669	855,836
Balances, July 2, 2016	634,669	855,836
Shares authorized	0
Options/SARs granted	(248,166)
SARs forfeited	(26,999)
Aggregate Intrinsic Value, Beginning balance	$ 2,312
Intrinsic value for options exercised	165	$ 1,900	$ 400
Aggregate Intrinsic Value, Ending balance	339	$ 2,312
Aggregate Intrinsic Value, Exercisable	$ 339
Outstanding, Beginning balance	$ 7.99
SARs Granted Weighted Average Exercise Price	10.26
SARs Forfeitures and Expirations in Period, Weighted Average Exercise Price	9.48
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price	4.56
Outstanding, Ending balance	8.75	$ 7.99
Weighted Average Exercise Price, Exercisable	$ 6.37
Weighted Average Remaining Contractual Life (in years), Outstanding	2 years 4 months 24 days	2 years 6 months
Weighted Average Remaining Contractual Life (in years), Outstanding	2 years 4 months 24 days	2 years 6 months
Weighted Average Remaining Contractual Life (in years), Exercisable	8 months 12 days
Number of Options/SARs Outstanding
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning balance	813,831
Shares authorized
Options/SARs granted	(248,166)
SARs forfeited	(26,999)
SARs exercised	63,333
Ending balance	971,665	813,831
Exercisable at July 2, 2016	324,166

Stock Option And Benefit Plan54

Stock Option And Benefit Plans (Additional Information Regarding Options Outstanding) (Detail)	12 Months Ended
	Jul. 02, 2016$ / sharesshares
$4.40 to $6.40
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices	$ 4.40
Range of Exercise Prices	$ 6.40
Number Outstanding | shares	129,333
SARs Outstanding Weighted Avg. Remaining Contractual Life (yrs.)	7 days
Weighted Avg. Exercise Price	$ 4.77
SARs Exercisable Number Exercisable | shares	129,333
Weighted Avg. Exercise Price	$ 4.77
$6.41 to $8.41
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices	6.41
Range of Exercise Prices	$ 8.41
Number Outstanding | shares	400,666
SARs Outstanding Weighted Avg. Remaining Contractual Life (yrs.)	1 year 1 month 6 days
Weighted Avg. Exercise Price	$ 7.84
SARs Exercisable Number Exercisable | shares	194,833
Weighted Avg. Exercise Price	$ 7.44
$8.42 to $10.42
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices	8.42
Range of Exercise Prices	$ 10.42
Number Outstanding | shares	240,833
SARs Outstanding Weighted Avg. Remaining Contractual Life (yrs.)	3 years 8 months 12 days
Weighted Avg. Exercise Price	$ 10.26
SARs Exercisable Number Exercisable | shares	0
Weighted Avg. Exercise Price	$ 0
$10.43 to $11.34
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices	10.43
Range of Exercise Prices	$ 11.34
Number Outstanding | shares	200,833
SARs Outstanding Weighted Avg. Remaining Contractual Life (yrs.)	2 years 1 month 6 days
Weighted Avg. Exercise Price	$ 11.34
SARs Exercisable Number Exercisable | shares	0
Weighted Avg. Exercise Price	$ 0
$4.40 to $11.34
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices	4.40
Range of Exercise Prices	$ 11.34
Number Outstanding | shares	971,665
SARs Outstanding Weighted Avg. Remaining Contractual Life (yrs.)	2 years 4 months 24 days
Weighted Avg. Exercise Price	$ 8.75
SARs Exercisable Number Exercisable | shares	324,166
Weighted Avg. Exercise Price	$ 6.37

Commitments And Contingencies55

Commitments And Contingencies (Narrative) (Detail) - USD ($)	12 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jun. 28, 2014
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Capital Leased Assets, Gross			$ 1,700,000
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation			0
Operating Leases Rent Expense Net	$ 6,600,000	$ 3,800,000	$ 1,800,000
Product Warranty Accrual	$ 30,000	$ 115,000
Maximum
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Terms of lease agreements	6 years

Commitments And Contingencies56

Commitments And Contingencies (Future Minimum Payments Under Non-Cancelable Operating And Capital Leases) (Detail) $ in Thousands	Jul. 02, 2016USD ($)
Operating Leases
Operating Leases, 2016	$ 7,666
Operating Leases, 2017	5,831
Operating Leases, 2018	2,805
Operating Leases, 2019	1,261
Operating Leases, 2020	732
Operating Leases, Thereafter	90
Operating Leases, Total minimum lease payments	$ 18,385

Fair Value Measurements (Assets

Fair Value Measurements (Assets And Liabilities Measured At Fair Value On Recurring Basis) (Detail) - USD ($)	Jul. 02, 2016	Jun. 27, 2015	Sep. 03, 2014
Fair Value Disclosures [Line Items]
Revolving loan	$ 18,073,000	$ 11,631,206.86
Term Loan, Amount Outstanding	26,300,000	31,300,000	$ 35,000,000
Interest Rate Swap
Fair Value Disclosures [Line Items]
Foreign currency forward contracts, Financial Assets		25,000
Foreign currency forward contracts, Financial Liabilities	(498,000)	(443,000)
Interest Rate Swap | Level 1
Fair Value Disclosures [Line Items]
Foreign currency forward contracts, Financial Assets		0
Foreign currency forward contracts, Financial Liabilities	0	0
Interest Rate Swap | Level 2
Fair Value Disclosures [Line Items]
Foreign currency forward contracts, Financial Assets		25,000
Foreign currency forward contracts, Financial Liabilities	(498,000)	(443,000)
Interest Rate Swap | Level 3
Fair Value Disclosures [Line Items]
Foreign currency forward contracts, Financial Assets		0
Foreign currency forward contracts, Financial Liabilities	0	0
Forward Contracts
Fair Value Disclosures [Line Items]
Foreign currency forward contracts, Financial Assets	136,000
Foreign currency forward contracts, Financial Liabilities	(11,112,000)	(6,799,000)
Forward Contracts | Level 1
Fair Value Disclosures [Line Items]
Foreign currency forward contracts, Financial Assets	0
Foreign currency forward contracts, Financial Liabilities	0	0
Forward Contracts | Level 2
Fair Value Disclosures [Line Items]
Foreign currency forward contracts, Financial Assets	136,000
Foreign currency forward contracts, Financial Liabilities	(11,112,000)	(6,799,000)
Forward Contracts | Level 3
Fair Value Disclosures [Line Items]
Foreign currency forward contracts, Financial Assets	0
Foreign currency forward contracts, Financial Liabilities	$ 0	$ 0

Derivative Financial Instrume58

Derivative Financial Instruments (Detail) - USD ($) $ in Millions	12 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jun. 28, 2014	Oct. 01, 2014
Derivative [Line Items]
Contract maturity date	Jun. 26, 2019
Net amount of existing losses expected to be reclassified into earnings within the next 12 months	$ 3.3
Foreign currency forward contracts entered	25.9	$ 23.1	$ 15.2
Foreign currency forward contracts settled	$ 21.5	20.5	$ 22.5
Derivative, Fixed Interest Rate	1.97%
Forward Contracts
Derivative [Line Items]
Derivative, Notional Amount	$ 69.4
Interest Rate Swap
Derivative [Line Items]
Derivative, Notional Amount	$ 20.5	$ 25		$ 25

Derivative Financial Instrume59

Derivative Financial Instruments (Summarized Fair Value Of Derivative Instruments In Consolidated Balance Sheets) (Detail) - USD ($) $ in Thousands	Jul. 02, 2016	Jun. 27, 2015
Forward Contracts | Other Long-Term Assets
Derivative Instruments [Line Items]
Derivative Asset, Asset Fair Value	$ 136	$ 0
Forward Contracts | Other Current Liabilities
Derivative Instruments [Line Items]
Derivative Liability, Liability Fair Value	4,670	2,517
Forward Contracts | Other Long-Term Liabilities
Derivative Instruments [Line Items]
Derivative Liability, Liability Fair Value	6,442	4,282
Interest Rate Swap | Other Long-Term Assets
Derivative Instruments [Line Items]
Derivative Asset, Asset Fair Value	0	25
Interest Rate Swap | Other Current Liabilities
Derivative Instruments [Line Items]
Derivative Liability, Liability Fair Value	264	271
Interest Rate Swap | Other Long-Term Liabilities
Derivative Instruments [Line Items]
Derivative Liability, Liability Fair Value	$ 234	$ 172

Derivative Financial Instrume60

Derivative Financial Instruments (Gain (Loss) Of Derivative Instruments In Statement Of Operations) (Detail) - Designated as Hedging Instrument number in Thousands, $ in Thousands	12 Months Ended
	Jul. 02, 2016USD ($)	Jun. 27, 2015USD ($)	Jun. 28, 2014USD ($)	Jun. 29, 2013USD ($)
Derivatives used in Net Investment Hedge, Net of Tax [Roll Forward]
AOCI Balance	$ (7,573)	$ (4,763)	$ 2,403
Derivative Instruments, Gain (Loss) Effective Portion Recorded in AOCI	(7,287)	(7,484)
Effective Portion Recorded In AOCI	$ 4,477	$ 318
Forward Contracts
Derivatives used in Net Investment Hedge, Net of Tax [Roll Forward]
AOCI Balance	$ (7,245)	$ (4,487)	$ 2,403	$ 1,313
Derivative Instruments, Gain (Loss) Effective Portion Recorded in AOCI	(6,939)	(7,208)	1,915
Effective Portion Recorded In AOCI	$ 4,181	$ 318	$ (825)
Interest Rate Swap
Derivatives used in Net Investment Hedge, Net of Tax [Roll Forward]
AOCI Balance	$ (328)	$ (276)	0
Change in Unrealized Gain (Loss) on Foreign Currency	(348)	(276)
Effective Portion Recorded In AOCI	$ 296	$ 0
Scenario, Previously Reported
Derivatives used in Net Investment Hedge, Net of Tax [Roll Forward]
AOCI Balance		(4,763)
Scenario, Previously Reported | Forward Contracts
Derivatives used in Net Investment Hedge, Net of Tax [Roll Forward]
AOCI Balance		(4,487)	$ 2,403
Scenario, Previously Reported | Interest Rate Swap
Derivatives used in Net Investment Hedge, Net of Tax [Roll Forward]
AOCI Balance		$ (276)

Enterprise Wide Disclosures (Na

Enterprise Wide Disclosures (Narrative) (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Jul. 02, 2016	Apr. 02, 2016	Dec. 26, 2015	Sep. 26, 2015	Jun. 27, 2015	Mar. 28, 2015	Dec. 27, 2014	Sep. 27, 2014	Jul. 02, 2016	Jun. 27, 2015	Jun. 28, 2014
Segment Reporting Information [Line Items]
Net sales	$ 123,905	$ 118,448	$ 116,403	$ 126,209	$ 120,429	$ 112,915	$ 114,311	$ 86,342	$ 484,965	$ 433,997	$ 305,394
Percentage Of Net Sales									100.00%	100.00%	0.00%
Key Tronic E M S
Segment Reporting Information [Line Items]
Net sales									$ 483,300	$ 432,100	$ 303,100
Keyboard
Segment Reporting Information [Line Items]
Net sales									$ 1,700	$ 1,900	$ 2,300
Canada
Segment Reporting Information [Line Items]
Percentage Of Net Sales									7.00%	10.00%	16.00%

Enterprise-Wide Disclosures (Ne

Enterprise-Wide Disclosures (Net Sales And Long-Lived Assets (Property, Plant, And Equipment) By Geographic Area) (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Jul. 02, 2016	Apr. 02, 2016	Dec. 26, 2015	Sep. 26, 2015	Jun. 27, 2015	Mar. 28, 2015	Dec. 27, 2014	Sep. 27, 2014	Jul. 02, 2016	Jun. 27, 2015	Jun. 28, 2014
Segment Reporting Information [Line Items]
Net sales	$ 123,905	$ 118,448	$ 116,403	$ 126,209	$ 120,429	$ 112,915	$ 114,311	$ 86,342	$ 484,965	$ 433,997	$ 305,394
Long-lived assets	27,925				26,974				27,925	26,974	23,596
Domestic (U.S.)
Segment Reporting Information [Line Items]
Net sales									347,552	301,891	197,700
Long-lived assets	11,406				8,969				11,406	8,969	2,888
Mexico
Segment Reporting Information [Line Items]
Long-lived assets	15,756				17,156				15,756	17,156	19,577
China
Segment Reporting Information [Line Items]
Long-lived assets	$ 763				$ 849				763	849	1,131
Foreign
Segment Reporting Information [Line Items]
Net sales									$ 137,413	$ 132,106	$ 107,694

Enterprise-Wide Disclosures Sch

Enterprise-Wide Disclosures Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area (Detail)	12 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jun. 28, 2014
Segment Reporting Information [Line Items]
Percentage Of Net Sales	100.00%	100.00%	0.00%
Domestic (U.S.)
Segment Reporting Information [Line Items]
Percentage Of Net Sales	72.00%	70.00%	65.00%
Canada
Segment Reporting Information [Line Items]
Percentage Of Net Sales	7.00%	10.00%	16.00%
Foreign
Segment Reporting Information [Line Items]
Percentage Of Net Sales	21.00%	20.00%	19.00%

Enterprise-Wide Disclosures (Pe

Enterprise-Wide Disclosures (Percentage Of Net Sales To And Trade Accounts Receivables From Significant Customers) (Detail)	12 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jun. 28, 2014
Customer A [Member]
Segment Reporting Information [Line Items]
Percent of Net Sales	18.00%	17.00%	20.00%
Percentage of Trade Accounts Receivable	24.00%	18.00%
Customer B [Member]
Segment Reporting Information [Line Items]
Percent of Net Sales			15.00%
Customer C [Member]
Segment Reporting Information [Line Items]
Percent of Net Sales			15.00%

Quarterly Financial Data (Detai

Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Jul. 02, 2016	Apr. 02, 2016	Dec. 26, 2015	Sep. 26, 2015	Jun. 27, 2015	Mar. 28, 2015	Dec. 27, 2014	Sep. 27, 2014	Jul. 02, 2016	Jun. 27, 2015	Jun. 28, 2014
Quarterly Financial Information Disclosure [Abstract]
Net sales	$ 123,905	$ 118,448	$ 116,403	$ 126,209	$ 120,429	$ 112,915	$ 114,311	$ 86,342	$ 484,965	$ 433,997	$ 305,394
Gross profit	10,841	9,955	9,110	8,919	10,392	9,436	9,239	4,238	38,825	33,305	26,854
Income before income taxes	2,885	2,137	1,882	1,247	2,847	2,234	2,113	(1,894)	8,151	5,300	9,223
Net income	$ 2,146	$ 1,783	$ 1,787	$ 817	$ 2,340	$ 1,861	$ 1,626	$ (1,523)	$ 6,533	$ 4,304	$ 7,613
Earnings per share – basic (in dollars per share)	$ 0.20	$ 0.17	$ 0.17	$ 0.08	$ 0.22	$ 0.18	$ 0.15	$ (0.14)	$ 0.61	$ 0.41	$ 0.72
Earnings per share – diluted (in dollars per share)	$ 0.20	$ 0.16	$ 0.16	$ 0.07	$ 0.21	$ 0.16	$ 0.14	$ (0.14)	$ 0.58	$ 0.38	$ 0.67
Weighted average shares outstanding– basic	10,714	10,711	10,710	10,706	10,636	10,552	10,552	10,548	10,710	10,572	10,528
Weighted average shares outstanding — Diluted	10,966	11,068	11,418	11,391	11,414	11,556	11,471	10,548	11,278	11,286	11,358

Acquisitions (Detail)

Acquisitions (Detail) - USD ($)	12 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jun. 28, 2014	Sep. 03, 2014	Jul. 01, 2013
Business Acquisition [Line Items]
Restructuring Charges	$ 250,000
Purchase Price, Net of Cash Received	0	$ 47,964,000	$ 6,027,000
Goodwill	$ 9,957,000	9,957,000	$ 1,740,000
Sabre
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross		6,000,000
Business Combination, Acquisition Related Costs		50,000
Current Assets					$ 777,000
Fixed Assets					1,168,000
Customer Relationships					1,970,000
Non-Compete Agreements					372,000
Goodwill					1,740,000
Fair value of assets acquired					$ 6,027,000
Ayrshire
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross		48,010,000
Business Combination, Acquisition Related Costs		775,000
Cash Acquired		(46,000)
Purchase Price, Net of Cash Received		$ 47,964,000
Cash				$ 46,000
Accounts Receivable				21,211,000
Inventories				21,772,000
Other Current Assets				1,013,000
Fixed Assets				7,823,000
Favorable Leases				2,941,000
Customer Relationships				2,833,000
Non-Compete Agreements				196,000
Goodwill				8,217,000
Other Assets				42,000
Accounts Payable				(11,070,000)
Accrued Salaries and Wages				(2,188,000)
Other Current Liabilities				(2,408,000)
Deferred Tax Liability				(2,418,000)
Fair value of assets acquired				$ 48,010,000

Acquisition Business Acquisitio

Acquisition Business Acquisition Pro Forma Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 27, 2015	Jun. 28, 2014
Business Combinations [Abstract]
Net sales	$ 457,475	$ 431,274
Net income	$ 4,136	$ 9,476

Goodwill and Other Intangible68

Goodwill and Other Intangible Assets (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jun. 28, 2014
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract]
Goodwill	$ 9,957	$ 9,957	$ 1,740
Goodwill, Acquired During Period	0	8,217
Amortization of Intangible Assets	1,100	1,000
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	8,312	8,312
Finite-Lived Intangible Assets, Accumulated Amortization	(2,384)	(1,257)
Finite-Lived Intangible Assets, Net	5,928	7,055
2,017	1,128
2,018	1,073
2,019	783
2,020	818
2,021	784
Thereafter	1,342
Non-Compete Agreements
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	568	568
Finite-Lived Intangible Assets, Accumulated Amortization	(343)	(204)
Finite-Lived Intangible Assets, Net	$ 225	$ 364
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	10 years	10 years
Finite-Lived Intangible Assets, Gross	$ 4,803	$ 4,803
Finite-Lived Intangible Assets, Accumulated Amortization	(1,110)	(630)
Finite-Lived Intangible Assets, Net	3,693	4,173
Favorable Lease Agreements
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	2,941	2,941
Finite-Lived Intangible Assets, Accumulated Amortization	(931)	(423)
Finite-Lived Intangible Assets, Net	$ 2,010	$ 2,518
Minimum | Non-Compete Agreements
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	3 years
Minimum | Favorable Lease Agreements
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	4 years
Maximum | Non-Compete Agreements
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	5 years
Maximum | Favorable Lease Agreements
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	7 years

Schedule II (Consolidated Valua

Schedule II (Consolidated Valuation And Qualifying Accounts) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jun. 28, 2014
Provision for obsolete inventory
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at beginning of year	$ 417	$ 332	$ 381
Provisions	757	520	257
Dispositions	(61)	(435)	(306)
Balance at end of year	1,113	417	332
Allowance for Doubtful Accounts
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at beginning of year	97	0	40
Provisions	38	97	37
Dispositions	0	0	(77)
Balance at end of year	$ 135	$ 97	$ 0