Key Tronic (KTCC) 10-Q 9 Nov 17 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2017	Nov. 07, 2017
Document Documentand Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Trading Symbol	ktcc
Entity Registrant Name	KEY TRONIC CORP
Entity Central Index Key	719,733
Current Fiscal Year End Date	--06-30
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		10,759,680

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2017	Jul. 01, 2017
ASSETS
Cash and cash equivalents	$ 977	$ 373
Trade receivables, net of allowance for doubtful accounts of $0 and $84	55,607	65,193
Inventories, net	105,658	101,590
Other	16,358	11,037
Total current assets	178,600	178,193
Property, plant and equipment, net	29,184	30,496
Other assets:
Deferred income tax asset	7,028	6,981
Goodwill	9,957	9,957
Other intangible assets, net	4,523	4,800
Other	2,442	2,413
Total other assets	23,950	24,151
Total assets	231,734	232,840
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable	56,662	53,078
Accrued compensation and vacation	7,565	10,005
Current portion of debt, net	5,841	5,841
Other	7,966	8,829
Total current liabilities	78,034	77,753
Long-term liabilities:
Term loans	17,313	18,773
Revolving loan	18,000	18,335
Other long-term obligations	272	1,412
Total long-term liabilities	35,585	38,520
Total liabilities	113,619	116,273
Commitments and contingencies (Note 9)
Shareholders’ equity:
Common stock, no par value—shares authorized 25,000; issued and outstanding 10,760 and 10,760 shares, respectively	45,901	45,797
Retained earnings	73,977	73,545
Accumulated other comprehensive loss	(1,763)	(2,775)
Total shareholders’ equity	118,115	116,567
Total liabilities and shareholders’ equity	$ 231,734	$ 232,840

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Sep. 30, 2017	Jul. 01, 2017
Statement of Financial Position [Abstract]
Trade receivables, allowance for doubtful accounts	$ 0	$ 84
Common stock - par value	$ 0	$ 0
Common stock - shares authorized	25,000	25,000
Common stock - shares issued	10,760	10,760
Common stock - shares outstanding	10,760	10,760

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2017	Oct. 01, 2016
Income Statement [Abstract]
Net sales	$ 109,217	$ 117,135
Cost of sales	101,372	107,426
Gross profit	7,845	9,709
Operating expenses
Research, development and engineering expenses	1,510	1,584
Selling, general and administrative expenses	5,171	5,335
Total operating expenses	6,681	6,919
Operating income	1,164	2,790
Interest expense, net	594	589
Income before income taxes	570	2,201
Income tax provision	138	409
Net income	$ 432	$ 1,792
Earnings per share:
Net income per share — Basic	$ 0.04	$ 0.17
Weighted average shares outstanding — Basic	10,760	10,748
Net income per share — Diluted	$ 0.04	$ 0.16
Weighted average shares outstanding — Diluted	10,760	10,922

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Oct. 01, 2016
Comprehensive income:
Net income	$ 432	$ 1,792
Other comprehensive income:
Unrealized gain (loss) on hedging instruments, net of tax	1,012	(1,000)
Comprehensive income	$ 1,444	$ 792

CONSOLIDATED STATEMENTS OF COM6

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2017	Oct. 01, 2016
Statement of Comprehensive Income [Abstract]
Unrealized gain (loss) on foreign exchange contracts, tax	$ 0.5	$ (0.5)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Oct. 01, 2016
Operating activities:
Net income	$ 432	$ 1,792
Adjustments to reconcile net income to cash provided by (used in) operating activities:
Depreciation and amortization	1,964	1,619
Amortization of deferred loan costs	8	0
Provision for obsolete inventory	8	55
Provision for warranty	11	2
Recovery of doubtful accounts	(84)	(8)
Loss on disposal of assets	12	71
Share-based compensation expense	104	197
Deferred income taxes	(569)	(477)
Changes in operating assets and liabilities:
Trade receivables	9,670	(3,107)
Inventories	(4,076)	6,746
Other assets	(5,325)	(733)
Accounts payable	3,584	(5,899)
Accrued compensation and vacation	(2,440)	(2,202)
Other liabilities	(580)	527
Cash provided by (used in) operating activities	2,719	(1,417)
Investing activities:
Purchase of property and equipment	(1,287)	(2,956)
Proceeds from sale of fixed assets	981	93
Cash used in investing activities	(306)	(2,863)
Financing activities:
Payment of financing costs	(6)	(28)
Repayments of long term debt	(1,468)	(1,250)
Borrowings under revolving credit agreement	43,387	40,832
Repayments of revolving credit agreement	(43,722)	(35,909)
Shares withheld for taxes	0	(108)
Cash (used in) provided by financing activities	(1,809)	3,537
Net increase (decrease) in cash and cash equivalents	604	(743)
Cash and cash equivalents, beginning of period	373	1,018
Cash and cash equivalents, end of period	977	275
Supplemental cash flow information:
Interest payments	545	569
Income tax payments, net of refunds	$ 483	$ 330

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY - 3 months ended Sep. 30, 2017 - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Retained Earnings	Accumulated Other Comprehensive (Loss) Income
Balances (Shares) at Jul. 01, 2017		10,760
Balances, Period Start at Jul. 01, 2017	$ 116,567	$ 45,797	$ 73,545	$ (2,775)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	432		432
Unrealized gain on hedging instruments, net	1,012			1,012
Shares withheld for taxes	0
Share-based compensation expense	104	$ 104
Balances (Shares) at Sep. 30, 2017		10,760
Balances, Period End at Sep. 30, 2017	$ 118,115	$ 45,901	$ 73,977	$ (1,763)

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	Basis of Presentation The consolidated financial statements included herein have been prepared by Key Tronic Corporation and subsidiaries (the Company) pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in our annual consolidated financial statements have been condensed or omitted. The year-end condensed consolidated balance sheet information was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. The financial statements reflect all normal and recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended July 1, 2017 .
FISCAL YEAR	The Company’s reporting period is a 52/53 week fiscal year ending on the Saturday closest to June 30. The quarters ended September 30, 2017 and October 1, 2016 , were both 13 week periods. Fiscal year 2018 will end on June 30, 2018 , which is a 52 week year. Fiscal year 2017 which ended on July 1, 2017 , was a 52 week year.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	Significant Accounting Policies Earnings Per Common Share Basic earnings per common share (EPS) is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income (loss) by the combination of other potentially dilutive weighted average common shares and the weighted average number of common shares outstanding during the period using the treasury stock method. The computation assumes the proceeds from the exercise of equity awards were used to repurchase common shares at the average market price during the period. The computation of diluted EPS does not assume conversion, exercise, or contingent issuance of common stock equivalent shares that would have an anti-dilutive effect on EPS. Derivative Instruments and Hedging Activities The Company has entered into foreign currency forward contracts, foreign currency swaps 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 term loan arrangement. The foreign currency forward contracts, foreign currency swaps and interest rate swap 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, foreign currency swaps and interest rate swap potentially expose the Company to credit risk to the extent the counterparty may be unable to meet the terms of the agreement. The Company minimizes such risk by utilizing a counterparty with a strong credit rating. The Company’s counterparty to the foreign currency forward contracts, foreign currency swaps and interest rate swap is a major banking institution. This institution does not require collateral for the contracts, and the Company believes that the risk of the counterparty failing to meet their contractual obligations is remote. The Company does not enter into derivative instruments for trading or speculative purposes. Income Taxes We compute our interim income tax provision through the use of an estimated annual effective tax rate (ETR) applied to year-to-date operating results and specific events that are discretely recognized as they occur. In determining the estimated annual ETR, we analyze various factors, including projections of our annual earnings, taxing jurisdictions in which the earnings will be generated, the impact of state and local income taxes, our ability to use tax credits and available tax planning alternatives. Discrete items, including the effect of changes in tax laws, tax rates, and certain circumstances with respect to valuation allowances or other unusual or non-recurring tax adjustments, are reflected in the period in which they occur as an addition to, or reduction from, the income tax provision, rather than included in the estimated annual ETR. 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 tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences and carryforwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities for a change in tax rates is recognized in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amount that is more likely than not to be realized. We utilize a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. We consider many factors when evaluating and estimating our tax positions and tax benefits, which may require periodic adjustments based on new assessments and changes in estimates and which may not accurately forecast actual outcomes. Our policy is to recognize interest and penalties related to the underpayment of income taxes as a component of income tax expense. The tax years 1998 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. Impairment of Goodwill and Other Intangible Assets 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 and intangible assets acquired in a business combination and determined to have an indefinite useful life are not amortized but are required to be reviewed for impairment at least annually or when events or circumstances indicate that carrying value may exceed fair value. The Company’s annual goodwill impairment analysis is performed as of the first day of the fourth quarter. The Company’s acquired intangible assets are subject to amortization over their estimated useful lives and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an intangible asset may not be recoverable. Recently Issued Accounting Standards In May 2014, the 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. Additionally, disclosures required for revenue recognition will include qualitative and quantitative information about contracts with customers, significant judgments and changes in judgments, and assets recognized from costs to obtain or fulfill a contract. Such disclosures are more extensive than what is required under existing GAAP. In August 2015, the FASB issued an amendment to defer the effective date of ASU 2014-09 for all entities by one year. This Update is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company has assessed that the impact of the new guidance will result in a change of the Company's revenue recognition model for electronics manufacturing services from "point in time" upon physical delivery to an "over time" model and believes this transition may have a material impact on the Company's consolidated financial statements upon adoption primarily as it will recognize an increase in contract assets for unbilled receivables with a corresponding reduction in finished goods and work-in-progress inventory. The Company has commenced implementation in accordance with the planned effective date and such efforts are ongoing. Companies have the option of using either a full or modified retrospective approach in applying this standard. The Company has not yet concluded upon its selection of the transition method. 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. Upon initial evaluation, the Company believes the new guidance will have a material impact on its consolidated balance sheets when adopted. The Company is currently assessing the timing of adoption. In January 2017, the FASB issued Accounting Standards Update 2017-04, Simplifying the Test for Goodwill Impairment . Under the new standard, goodwill impairment would be measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying value of goodwill. This ASU eliminates existing guidance that requires an entity to determine goodwill impairment by calculating the implied fair value of goodwill by hypothetically assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. This update is effective prospectively to impairment tests beginning January 1, 2020, with early adoption permitted. The Company would apply this guidance to applicable impairment tests after the adoption date. The Company is currently evaluating the effect of this update on its consolidated financial statements. In May 2017, the FASB issued Accounting Standards Update 2017-09, Compensation - Stock Compensation . This update provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. This update is effective for fiscal years beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the effect of this update on its consolidated financial statements. In August 2017, the FASB issued Accounting Standards Update 2017-12, Derivatives and Hedging, which amends the hedge accounting recognition and presentation requirements in ASC 815. The Board’s objectives in issuing this update are to (1) improve the transparency and understandability of information about an entity’s risk management activities by better aligning the entity’s financial reporting for hedging relationships with those risk management activities and (2) simplify the application of hedge accounting. This update is effective for fiscal years beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the effect of this update on its consolidated financial statements.

INVENTORIES

INVENTORIES	3 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
INVENTORIES	Inventories The components of inventories consist of the following (in thousands): September 30, 2017 July 1, 2017 Finished goods $ 12,662 $ 12,244 Work-in-process 19,931 20,596 Raw materials and supplies 73,065 68,750 $ 105,658 $ 101,590

LONG-TERM DEBT

LONG-TERM DEBT	3 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
LONG-TERM DEBT	Long-Term Debt On September 3, 2014, the Company entered into a five-year term loan in the amount of $35.0 million used to acquire all of the outstanding shares of CDR Manufacturing, Inc. (dba Ayrshire Electronics). The term loan requires quarterly payments of $1.25 million through June 15, 2019, with a final payment of the remaining outstanding balance on August 31, 2019. The Company had an outstanding balance of $20.0 million and $21.3 million under the term loan as of September 30, 2017 and July 1, 2017 , respectively. 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. The line of credit is secured by substantially all of the assets of the Company and matures on August 31, 2019 at which time all outstanding balances are payable. As of September 30, 2017 , the Company had an outstanding balance under the credit facility of $18.0 million , $0.4 million in outstanding letters of credit and $26.6 million available for future borrowings. As of July 1, 2017 , the Company had an outstanding balance under the credit facility of $18.3 million , $0.4 million in outstanding letters of credit and $26.3 million available for future borrowings. On December 28, 2016, the Company entered into an equipment term loan agreement in the amount of $3.9 million in order to further invest in production equipment. The equipment term loan is collateralized by production equipment. Under this loan agreement, equal quarterly payments of approximately $0.2 million commenced on March 31, 2017 and will continue through the maturity of the equipment term loan on June 30, 2021. Amortization of the debt issuance costs is reported as interest expense on the consolidated income statement. As of September 30, 2017 , the Company had an outstanding balance of $3.3 million . As of July 1, 2017 , the Company had an outstanding balance of $3.5 million . The Company has available an additional $2.1 million which can be borrowed in the future under this agreement. Borrowings under the revolving line of credit, term loan and equipment term loan bear interest at either a “Base Rate” or a “Fixed Rate,” as elected by the Company. The base rate is the higher of the Wells Fargo Bank prime rate, daily one month London Interbank Offered Rate (LIBOR) plus 1.5% , or the Federal Funds rate plus 1.5% . The fixed rate is LIBOR plus 1.75% , LIBOR plus 2.00% , or LIBOR plus 2.25% depending on the level of the Company’s trailing four quarters Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA). The interest rates on outstanding debt as of September 30, 2017 range from 3.24% - 3.49% compared to 3.22% - 4.25% as of July 1, 2017 . Debt maturities as of September 30, 2017 for the next five years and thereafter are as follows (in thousands): Fiscal Years Ending Amount 2018 (1) $ 4,403 2019 5,871 2020 30,121 2021 871 Total debt $ 41,266 Unamortized debt issuance costs $ (112 ) Long-term debt, net of debt issuance costs $ 41,154 (1) Represents scheduled payments for the remaining nine-month period ending June 30, 2018. 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	3 Months Ended
	Sep. 30, 2017
Receivables [Abstract]
TRADE ACCOUNTS RECEIVABLE PURCHASE PROGRAMS	Trade Accounts Receivable Purchase Programs Sale Programs The Company utilizes an Account Purchase Agreement with Wells Fargo Bank, N.A. (“WFB”) which allows the Company to sell and assign to WFB and WFB may purchase from the Company the accounts receivable of certain Company customers in a maximum aggregate amount outstanding of $20.0 million . This agreement may be cancelled at any time by either party. The Company also has an Account Purchase Agreement with Orbian Financial Services (“Orbian”). This agreement allows the Company to sell accounts receivable of certain customers to Orbian and the agreement may be cancelled at any time by either party. Total accounts receivables sold during the three months ended September 30, 2017 and October 1, 2016 was approximately $28.0 million and $17.4 million , respectively. Accounts receivables sold and not yet collected were $2.1 million and $1.6 million as of September 30, 2017 and July 1, 2017 , 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	3 Months Ended
	Sep. 30, 2017
Income Tax Disclosure [Abstract]
INCOME TAXES	Income Taxes The Company expects to repatriate a portion of its foreign earnings based on increased net sales growth driving additional capital requirements domestically, cash requirements for potential acquisitions and to implement certain tax strategies. The Company currently expects to repatriate approximately $13.5 million of foreign earnings in the future. As such, these earnings would be recognized in the United States, and the Company would be subject to U.S. federal income taxes and potential withholding taxes in foreign jurisdictions. Both the domestic tax and estimated withholding tax of expected repatriation of foreign earnings have been recorded as part of deferred taxes as of September 30, 2017 . All other unremitted foreign earnings are expected to remain permanently reinvested for planned fixed assets purchases and improvements in foreign locations. During the second quarter of fiscal year 2017, the Company signed a unilateral advance pricing agreement (APA) with the Large Taxpayer Division of Mexico’s Servicio de Administración Tributaria (SAT) under an elective framework that has been agreed to by the U.S. and Mexican authorities. The APA is part of a larger program affecting hundreds of U.S. companies with maquiladora operations in Mexico. The general impact of the APA is to increase margins between the maquiladora and U.S. parent company, shifting profits to Mexico from the U.S. The APA was finalized during the fourth quarter of fiscal 2017; the overall impact to the financial statements was not material. The Company has available approximately $7.6 million of gross federal research and development tax credits as of September 30, 2017 . ASC 740 requires the Company to recognize in its financial statements uncertainties in tax positions taken that may not be sustained upon examination by the taxing authorities. Accordingly, as of September 30, 2017 , the Company has recorded $4.0 million of unrecognized tax benefits associated with these federal tax credits, resulting in a net deferred tax benefit of approximately $3.6 million .

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
EARNINGS PER SHARE	Earnings Per Share The following table presents a reconciliation of the denominator in the basic and diluted EPS calculation and the number of antidilutive common share awards that were not included in the diluted earnings per share calculation. These antidilutive securities occur when equity awards outstanding have an option price greater than the average market price for the period. Three Months Ended (in thousands, except per share information) September 30, 2017 October 1, 2016 Net income $ 432 $ 1,792 Weighted average shares outstanding—basic 10,760 10,748 Effect of dilutive common stock awards — 174 Weighted average shares outstanding—diluted 10,760 10,922 Net income per share—basic $ 0.04 $ 0.17 Net income per share—diluted $ 0.04 $ 0.16 Antidilutive SARs not included in diluted earnings per share 1,140 890

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	3 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
SHARE BASED COMPENSATION	Share-based Compensation The Company’s incentive plan provides for equity and liability awards to employees and non-employee directors in the form of stock options, stock appreciation rights (SARs), restricted stock, restricted stock units, stock awards, stock units, performance shares, performance units, and other stock-based or cash-based awards. Compensation cost is recognized on a straight-line basis over the requisite employee service period, which is generally the vesting period, and is recorded as employee compensation expense in cost of goods sold, 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, 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 evaluated quarterly to determine the likelihood that performance metrics will be achieved during the performance period. These awards are charged to compensation expense over the requisite service period based on the number of shares expected to vest. The SARs cliff vest after a three-year period from date of grant and expire five years from date of grant. The grant date fair value for the awards granted below were estimated using the Black Scholes option valuation method: July 28, 2017 October 28, 2016 July 26, 2016 SARs Granted 272,500 10,000 242,500 Strike Price $ 7.26 $ 8.04 $ 8.18 Fair Value $ 1.89 $ 2.30 $ 2.42 Total share-based compensation expense recognized during the three months ended September 30, 2017 and October 1, 2016 was approximately $104,000 and $197,000 , respectively. As of September 30, 2017 , total unrecognized compensation expense related to unvested share-based compensation arrangements was approximately $1.0 million . This expense is expected to be recognized over a weighted average period of 2.04 years. No SARs were exercised during the three months ended September 30, 2017 . During the three months ended October 1, 2016 , there were 102,000 SARs exercised with approximately $342,000 of intrinsic value.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	Commitments and Contingencies Litigation and Other Matters The Company is party to certain lawsuits or claims in the ordinary course of business. During the second quarter of fiscal year 2017, the Company commenced the arbitration process with a former customer related to approximately $9 million in inventory purchased, outstanding accounts receivable, cancellation fees, and other carrying costs we believe should be reimbursed by this former customer based on the terms of the manufacturing agreement. The Company is actively working through the arbitration process and expects further clarity on the resolution of this matter, whether through negotiations or a scheduled hearing by the end of the third quarter FY18. The Company has not accrued for any potential gains or losses related to this claim and legal costs are being expensed as incurred. The ultimate disposition of these matters could have a material effect on our consolidated financial position, results of operations or cash flows. Warranties The Company provides warranties on certain product sales. Allowances for estimated warranty costs are recorded during the period of sale. The determination of such allowances requires the Company to make estimates of product return rates and expected costs to repair or to replace the products under warranty. If actual return rates and/or repair and replacement costs differ significantly from management’s estimates, adjustments to recognize additional cost of sales may be required in future periods. The Company’s warranty reserve was approximately $32,000 as of September 30, 2017 and July 1, 2017 .

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	Fair Value Measurements The Company has adopted ASC 820, Fair Value Measurements , which defines fair value, establishes a framework for assets and liabilities being measured and reported at fair value and expands disclosures about fair value measurements. There are three levels of fair value hierarchy inputs used to value assets and liabilities which include: Level 1 – inputs are quoted market prices for identical assets or liabilities; Level 2 – inputs other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 – inputs are unobservable inputs for the asset or liability. The following table summarizes the fair value of assets (liabilities) of the Company’s derivatives that are required to be measured on a recurring basis as of September 30, 2017 and July 1, 2017 (in thousands): September 30, 2017 Level 1 Level 2 Level 3 Total Fair Value Financial Assets: Foreign currency forward contracts & swaps $ — $ 1,110 $ — $ 1,110 Financial Liabilities: Interest rate swap $ — $ (72 ) $ — $ (72 ) Foreign currency forward contracts & swaps $ — $ (3,709 ) $ — $ (3,709 ) July 1, 2017 Level 1 Level 2 Level 3 Total Fair Value Financial Assets: Foreign currency forward contracts & swaps $ — $ 1,010 $ — $ 1,010 Financial Liabilities: Interest rate swap $ — $ (103 ) $ — $ (103 ) Foreign currency forward contracts & swaps $ — $ (5,112 ) $ — $ (5,112 ) The Company currently has forward contracts and swaps 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 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 September 30, 2017 and July 1, 2017 , reasonably approximate their fair value. The Company’s long-term debt primarily consists of a revolving line of credit, a term loan and an equipment term loan. These borrowings 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 rates for our revolving line of credit, term loan and equipment term loan, they are classified within Level 2 of the fair value hierarchy. The discounted cash flow of the revolving line of credit is estimated to be $18.0 million and $18.3 million as of September 30, 2017 and July 1, 2017 , respectively, with a carrying value that reasonably approximates the fair value. The discounted cash flow of the term loan is estimated to be $20.0 million as of September 30, 2017 and $21.3 million as of July 1, 2017 , respectively, with a carrying value that reasonably approximates the fair value. The discounted cash flow of the equipment term loan is estimated to be $3.3 million as of September 30, 2017 and $3.5 million as of July 1, 2017 , respectively, with a carrying value that reasonably approximates the fair value.

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS	3 Months Ended
	Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE FINANCIAL INSTRUMENTS	Derivative Financial Instruments As of September 30, 2017 , the Company had outstanding foreign currency forward contracts and swaps with a total notional amount of $50.3 million . The maturity dates for these contracts and swaps extend through September 2019 . For the three months ended September 30, 2017 , the Company did not enter into foreign currency forward contracts and settled $5.4 million of such contracts. During the same period of the previous year, the Company did not enter into foreign currency forward contracts and settled $5.2 million of such contracts. Subsequent to September 30, 2017 , the Company entered into $5.0 million of additional forward contracts set to mature during the second quarter of fiscal year 2018 and $7.2 million of forward contracts that extended our hedge position through December 2019 . As of September 30, 2017 , the aggregate notional amount of the Company’s outstanding foreign currency contracts and swaps along with their unrealized gains (losses) are expected to mature as summarized below (in thousands): Quarter Ending Notional Contracts and Swaps in MXN Notional Contracts and Swaps in USD Estimated Fair Value December 30, 2017 $ 88,558 $ 6,162 $ (1,330 ) March 31, 2018 $ 90,812 $ 5,713 $ (824 ) June 30, 2018 $ 95,500 $ 5,811 $ (736 ) September 29, 2018 $ 90,443 $ 5,301 $ (557 ) December 29, 2018 $ 125,328 $ 6,746 $ (261 ) March 30, 2019 $ 137,944 $ 6,979 $ 68 June 29, 2019 $ 142,947 $ 6,828 $ 383 September 28, 2019 $ 148,468 $ 6,740 $ 658 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. 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 term loan. 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 Sheet as of September 30, 2017 and July 1, 2017 (in thousands): September 30, 2017 July 1, 2017 Derivatives Designated as Hedging Instruments Balance Sheet Location Fair Value Fair Value Foreign currency forward contracts & swaps Other long-term assets $ 1,110 $ 1,010 Foreign currency forward contracts & swaps Other current liabilities $ (3,448 ) $ (4,226 ) Foreign currency forward contracts & swaps Other long-term liabilities $ (261 ) $ (886 ) Interest rate swap Other current liabilities $ (61 ) $ (81 ) Interest rate swap Other long-term liabilities $ (11 ) $ (22 ) The following tables summarize the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Income for the three months ended September 30, 2017 and October 1, 2016 , respectively (in thousands): Derivatives Designated as Hedging Instruments Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) AOCI Balance Effective Portion Recorded In AOCI Effective Portion Reclassified From AOCI Into Income AOCI Balance Forward contracts & swaps Cost of sales $ (2,707 ) $ (122 ) $ 1,114 $ (1,715 ) Interest rate swap Interest expense (68 ) (9 ) 29 (48 ) Total $ (2,775 ) $ (131 ) $ 1,143 $ (1,763 ) Derivatives Designated as Hedging Instruments Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) AOCI Balance Effective Portion Recorded In AOCI Effective Portion Reclassified From AOCI Into Income AOCI Balance Forward contracts & swaps Cost of sales $ (7,245 ) $ (2,189 ) $ 1,109 $ (8,325 ) Interest rate swap Interest expense (328 ) (1 ) 81 (248 ) Total $ (7,573 ) $ (2,190 ) $ 1,190 $ (8,573 ) As of September 30, 2017 , the net amount of unrealized loss expected to be reclassified into earnings within the next 12 months is approximately $2.3 million . As of September 30, 2017 , the Company does not have any foreign exchange contracts with credit-risk-related contingent features.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	3 Months Ended
	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER 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 from the acquisitions is not deductible for tax purposes. During the three months ended September 30, 2017 and October 1, 2016 , no impairment was recognized. Goodwill was recorded at $10.0 million as of September 30, 2017 and July 1, 2017 . The components of acquired intangible assets are as follows (in thousands): September 30, 2017 Amortization Period in Years Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets: Non-Compete Agreements 3 - 5 $ 568 $ (512 ) $ 56 Customer Relationships 10 4,803 (1,711 ) 3,092 Favorable Lease Agreements 4 - 7 2,941 (1,566 ) 1,375 Total $ 8,312 $ (3,789 ) $ 4,523 July 1, 2017 Amortization Period in Years Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets: Non-Compete Agreements 3 - 5 $ 568 $ (483 ) $ 85 Customer Relationships 10 4,803 (1,590 ) 3,213 Favorable Lease Agreements 4 - 7 2,941 (1,439 ) 1,502 Total $ 8,312 $ (3,512 ) $ 4,800 Amortization expense was approximately $277,000 and $282,000 for the three months ended September 30, 2017 and October 1, 2016 , respectively. Aggregate amortization expense relative to existing intangible assets by fiscal year is currently estimated to be as follows (in thousands): Fiscal Years Ending Amount 2018 (1) 796 2019 818 2020 783 2021 784 2022 531 Thereafter 811 Total amortization expense $ 4,523 (1) Represents estimated amortization for the remaining nine-month period ending June 30, 2018.

SIGNIFICANT ACCOUNTING POLICI21

SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Earnings Per Common Share	Earnings Per Common Share Basic earnings per common share (EPS) is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income (loss) by the combination of other potentially dilutive weighted average common shares and the weighted average number of common shares outstanding during the period using the treasury stock method. The computation assumes the proceeds from the exercise of equity awards were used to repurchase common shares at the average market price during the period. The computation of diluted EPS does not assume conversion, exercise, or contingent issuance of common stock equivalent shares that would have an anti-dilutive effect on EPS.
Derivative Instruments and Hedging Activities	Derivative Instruments and Hedging Activities The Company has entered into foreign currency forward contracts, foreign currency swaps 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 term loan arrangement. The foreign currency forward contracts, foreign currency swaps and interest rate swap 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, foreign currency swaps and interest rate swap potentially expose the Company to credit risk to the extent the counterparty may be unable to meet the terms of the agreement. The Company minimizes such risk by utilizing a counterparty with a strong credit rating. The Company’s counterparty to the foreign currency forward contracts, foreign currency swaps and interest rate swap is a major banking institution. This institution does not require collateral for the contracts, and the Company believes that the risk of the counterparty failing to meet their contractual obligations is remote. The Company does not enter into derivative instruments for trading or speculative purposes.
Income Taxes	Income Taxes We compute our interim income tax provision through the use of an estimated annual effective tax rate (ETR) applied to year-to-date operating results and specific events that are discretely recognized as they occur. In determining the estimated annual ETR, we analyze various factors, including projections of our annual earnings, taxing jurisdictions in which the earnings will be generated, the impact of state and local income taxes, our ability to use tax credits and available tax planning alternatives. Discrete items, including the effect of changes in tax laws, tax rates, and certain circumstances with respect to valuation allowances or other unusual or non-recurring tax adjustments, are reflected in the period in which they occur as an addition to, or reduction from, the income tax provision, rather than included in the estimated annual ETR. 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 tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences and carryforwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities for a change in tax rates is recognized in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amount that is more likely than not to be realized. We utilize a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. We consider many factors when evaluating and estimating our tax positions and tax benefits, which may require periodic adjustments based on new assessments and changes in estimates and which may not accurately forecast actual outcomes. Our policy is to recognize interest and penalties related to the underpayment of income taxes as a component of income tax expense. The tax years 1998 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.
Impairment of Goodwill	Impairment of Goodwill and Other Intangible Assets 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 and intangible assets acquired in a business combination and determined to have an indefinite useful life are not amortized but are required to be reviewed for impairment at least annually or when events or circumstances indicate that carrying value may exceed fair value. The Company’s annual goodwill impairment analysis is performed as of the first day of the fourth quarter. The Company’s acquired intangible assets are subject to amortization over their estimated useful lives and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an intangible asset may not be recoverable.
Recently Issued Accounting Standards	Recently Issued Accounting Standards In May 2014, the 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. Additionally, disclosures required for revenue recognition will include qualitative and quantitative information about contracts with customers, significant judgments and changes in judgments, and assets recognized from costs to obtain or fulfill a contract. Such disclosures are more extensive than what is required under existing GAAP. In August 2015, the FASB issued an amendment to defer the effective date of ASU 2014-09 for all entities by one year. This Update is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company has assessed that the impact of the new guidance will result in a change of the Company's revenue recognition model for electronics manufacturing services from "point in time" upon physical delivery to an "over time" model and believes this transition may have a material impact on the Company's consolidated financial statements upon adoption primarily as it will recognize an increase in contract assets for unbilled receivables with a corresponding reduction in finished goods and work-in-progress inventory. The Company has commenced implementation in accordance with the planned effective date and such efforts are ongoing. Companies have the option of using either a full or modified retrospective approach in applying this standard. The Company has not yet concluded upon its selection of the transition method. 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. Upon initial evaluation, the Company believes the new guidance will have a material impact on its consolidated balance sheets when adopted. The Company is currently assessing the timing of adoption. In January 2017, the FASB issued Accounting Standards Update 2017-04, Simplifying the Test for Goodwill Impairment . Under the new standard, goodwill impairment would be measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying value of goodwill. This ASU eliminates existing guidance that requires an entity to determine goodwill impairment by calculating the implied fair value of goodwill by hypothetically assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. This update is effective prospectively to impairment tests beginning January 1, 2020, with early adoption permitted. The Company would apply this guidance to applicable impairment tests after the adoption date. The Company is currently evaluating the effect of this update on its consolidated financial statements. In May 2017, the FASB issued Accounting Standards Update 2017-09, Compensation - Stock Compensation . This update provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. This update is effective for fiscal years beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the effect of this update on its consolidated financial statements. In August 2017, the FASB issued Accounting Standards Update 2017-12, Derivatives and Hedging, which amends the hedge accounting recognition and presentation requirements in ASC 815. The Board’s objectives in issuing this update are to (1) improve the transparency and understandability of information about an entity’s risk management activities by better aligning the entity’s financial reporting for hedging relationships with those risk management activities and (2) simplify the application of hedge accounting. This update is effective for fiscal years beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the effect of this update on its consolidated financial statements.
Maximum Amount Of Income Tax Benefits Percentage Realized Upon Ultimate Settlement	50.00%

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
Components of Inventories	The components of inventories consist of the following (in thousands): September 30, 2017 July 1, 2017 Finished goods $ 12,662 $ 12,244 Work-in-process 19,931 20,596 Raw materials and supplies 73,065 68,750 $ 105,658 $ 101,590

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	3 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Schedule of Maturities of Long-term Debt	Debt maturities as of September 30, 2017 for the next five years and thereafter are as follows (in thousands): Fiscal Years Ending Amount 2018 (1) $ 4,403 2019 5,871 2020 30,121 2021 871 Total debt $ 41,266 Unamortized debt issuance costs $ (112 ) Long-term debt, net of debt issuance costs $ 41,154 (1) Represents scheduled payments for the remaining nine-month period ending June 30, 2018.

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Reconciliation of Denominator and Number of Antidilutive Common Share Awards not Included in Diluted Earnings Per Share Calculation	These antidilutive securities occur when equity awards outstanding have an option price greater than the average market price for the period. Three Months Ended (in thousands, except per share information) September 30, 2017 October 1, 2016 Net income $ 432 $ 1,792 Weighted average shares outstanding—basic 10,760 10,748 Effect of dilutive common stock awards — 174 Weighted average shares outstanding—diluted 10,760 10,922 Net income per share—basic $ 0.04 $ 0.17 Net income per share—diluted $ 0.04 $ 0.16 Antidilutive SARs not included in diluted earnings per share 1,140 890

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	3 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award	The grant date fair value for the awards granted below were estimated using the Black Scholes option valuation method: July 28, 2017 October 28, 2016 July 26, 2016 SARs Granted 272,500 10,000 242,500 Strike Price $ 7.26 $ 8.04 $ 8.18 Fair Value $ 1.89 $ 2.30 $ 2.42

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Sep. 30, 2017
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 September 30, 2017 and July 1, 2017 (in thousands): September 30, 2017 Level 1 Level 2 Level 3 Total Fair Value Financial Assets: Foreign currency forward contracts & swaps $ — $ 1,110 $ — $ 1,110 Financial Liabilities: Interest rate swap $ — $ (72 ) $ — $ (72 ) Foreign currency forward contracts & swaps $ — $ (3,709 ) $ — $ (3,709 ) July 1, 2017 Level 1 Level 2 Level 3 Total Fair Value Financial Assets: Foreign currency forward contracts & swaps $ — $ 1,010 $ — $ 1,010 Financial Liabilities: Interest rate swap $ — $ (103 ) $ — $ (103 ) Foreign currency forward contracts & swaps $ — $ (5,112 ) $ — $ (5,112 )

DERIVATIVE FINANCIAL INSTRUME27

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
	Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Derivative Instruments	As of September 30, 2017 , the aggregate notional amount of the Company’s outstanding foreign currency contracts and swaps along with their unrealized gains (losses) are expected to mature as summarized below (in thousands): Quarter Ending Notional Contracts and Swaps in MXN Notional Contracts and Swaps in USD Estimated Fair Value December 30, 2017 $ 88,558 $ 6,162 $ (1,330 ) March 31, 2018 $ 90,812 $ 5,713 $ (824 ) June 30, 2018 $ 95,500 $ 5,811 $ (736 ) September 29, 2018 $ 90,443 $ 5,301 $ (557 ) December 29, 2018 $ 125,328 $ 6,746 $ (261 ) March 30, 2019 $ 137,944 $ 6,979 $ 68 June 29, 2019 $ 142,947 $ 6,828 $ 383 September 28, 2019 $ 148,468 $ 6,740 $ 658
Summerized Fair Value of Derivative Instruments in Consolidated Balance Sheets	The following table summarizes the fair value of derivative instruments in the Consolidated Balance Sheet as of September 30, 2017 and July 1, 2017 (in thousands): September 30, 2017 July 1, 2017 Derivatives Designated as Hedging Instruments Balance Sheet Location Fair Value Fair Value Foreign currency forward contracts & swaps Other long-term assets $ 1,110 $ 1,010 Foreign currency forward contracts & swaps Other current liabilities $ (3,448 ) $ (4,226 ) Foreign currency forward contracts & swaps Other long-term liabilities $ (261 ) $ (886 ) Interest rate swap Other current liabilities $ (61 ) $ (81 ) Interest rate swap Other long-term liabilities $ (11 ) $ (22 )
Gain (Loss) of Derivative Instruments in Statement of Operations	The following tables summarize the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Income for the three months ended September 30, 2017 and October 1, 2016 , respectively (in thousands): Derivatives Designated as Hedging Instruments Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) AOCI Balance Effective Portion Recorded In AOCI Effective Portion Reclassified From AOCI Into Income AOCI Balance Forward contracts & swaps Cost of sales $ (2,707 ) $ (122 ) $ 1,114 $ (1,715 ) Interest rate swap Interest expense (68 ) (9 ) 29 (48 ) Total $ (2,775 ) $ (131 ) $ 1,143 $ (1,763 ) Derivatives Designated as Hedging Instruments Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) AOCI Balance Effective Portion Recorded In AOCI Effective Portion Reclassified From AOCI Into Income AOCI Balance Forward contracts & swaps Cost of sales $ (7,245 ) $ (2,189 ) $ 1,109 $ (8,325 ) Interest rate swap Interest expense (328 ) (1 ) 81 (248 ) Total $ (7,573 ) $ (2,190 ) $ 1,190 $ (8,573 )

GOODWILL AND OTHER INTANGIBLE28

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	3 Months Ended
	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets	The components of acquired intangible assets are as follows (in thousands): September 30, 2017 Amortization Period in Years Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets: Non-Compete Agreements 3 - 5 $ 568 $ (512 ) $ 56 Customer Relationships 10 4,803 (1,711 ) 3,092 Favorable Lease Agreements 4 - 7 2,941 (1,566 ) 1,375 Total $ 8,312 $ (3,789 ) $ 4,523 July 1, 2017 Amortization Period in Years Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets: Non-Compete Agreements 3 - 5 $ 568 $ (483 ) $ 85 Customer Relationships 10 4,803 (1,590 ) 3,213 Favorable Lease Agreements 4 - 7 2,941 (1,439 ) 1,502 Total $ 8,312 $ (3,512 ) $ 4,800
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	Aggregate amortization expense relative to existing intangible assets by fiscal year is currently estimated to be as follows (in thousands): Fiscal Years Ending Amount 2018 (1) 796 2019 818 2020 783 2021 784 2022 531 Thereafter 811 Total amortization expense $ 4,523 (1) Represents estimated amortization for the remaining nine-month period ending June 30, 2018.

Inventories (Components Of Inve

Inventories (Components Of Inventories) (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Jul. 01, 2017
Inventory Disclosure [Abstract]
Finished goods	$ 12,662	$ 12,244
Work-in-process	19,931	20,596
Raw materials and supplies	73,065	68,750
Inventories	$ 105,658	$ 101,590

Long-Term Debt (Detail)

Long-Term Debt (Detail) - USD ($)	3 Months Ended
	Sep. 30, 2017	Jul. 01, 2017	Dec. 28, 2016	Aug. 06, 2015	Sep. 03, 2014
Debt Disclosure [Line Items]
Line of Credit Facility, Amount Outstanding	$ 18,000,000	$ 18,300,000
Letters of Credit Outstanding, Amount	400,000	400,000
Additional availability of line of credit	26,600,000	26,300,000
Debt Instrument, Periodic Payment, Principal	1,250,000
Debt Instrument, Unused Borrowing Capacity, Amount	2,100,000
2018 (1)	4,403,000
2,019	5,871,000
2,020	30,121,000
2,021	871,000
Total debt	41,266,000
Unamortized debt issuance costs	(112,000)
Long-term debt, net of debt issuance costs	$ 41,154,000				$ 35,000,000
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%
Term Loan
Debt Disclosure [Line Items]
Long-term debt, net of debt issuance costs	$ 20,000,000	21,300,000
Equipment Term Loan
Debt Disclosure [Line Items]
Debt Instrument, Periodic Payment, Principal	200,000
Long-term debt, net of debt issuance costs	$ 3,300,000	$ 3,500,000	$ 3,900,000
Wells Fargo Bank
Debt Disclosure [Line Items]
Increase in revolving line of credit				$ 45,000,000
Debt Instrument, Basis Spread on Variable Rate, 1.75% | 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, 2.00% | 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, 2.25% | Line of Credit | Fixed Rate
Debt Disclosure [Line Items]
Variable rate on line of credit facility (percent)	2.25%
Minimum
Debt Disclosure [Line Items]
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate	3.23722%	3.22%
Maximum
Debt Disclosure [Line Items]
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate	3.49%	4.25%

Trade Accounts Receivable Pur31

Trade Accounts Receivable Purchase Programs (Detail) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Jul. 01, 2017	Jul. 16, 2015
Receivables [Abstract]
Account Purchase Agreement Maximum Aggregate Amount				$ 20
Trade Accounts Receivable Sold To Third Party	$ 28	$ 17.4
Accounts Receivable Factored To Banking Institutions	$ 2.1		$ 1.6

Income Taxes (Detail)

Income Taxes (Detail) $ in Millions	3 Months Ended
	Sep. 30, 2017USD ($)
Income Tax Disclosure [Abstract]
Foreign tax credits related to future repatriations of earnings	$ 13.5
Gross potential research and development (R&D) tax credit	7.6
Unrecognized tax benefits associated with federal tax credits	4
Deferred Income Tax Expense (Benefit)	$ 3.6

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
	Sep. 30, 2017	Oct. 01, 2016
Earnings Per Share [Abstract]
Net income	$ 432	$ 1,792
Weighted average shares outstanding - basic	10,760	10,748
Effect of dilutive common stock options (Shares)	0	174
Weighted average shares outstanding - Diluted	10,760	10,922
Net income per share—diluted	$ 0.04	$ 0.17
Net income per share—diluted	$ 0.04	$ 0.16
Antidilutive options not included in diluted earnings per share (Shares)	1,140	890

Share-Based Compensation (Detai

Share-Based Compensation (Detail) - USD ($)	Oct. 28, 2016	Jul. 27, 2016	Jul. 29, 2015	Sep. 30, 2017	Oct. 01, 2016	Jul. 26, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized Share-based Compensation Expense				$ 1,000,000
Unrecognized Share-based Compensation, Period for Recognition				2 years 15 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value					$ 342,000
Stock Appreciation Rights (SARs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
SARs Granted	272,500	10,000	242,500
Strike Price	$ 7.26		$ 8.18			$ 8.04
Fair Value	$ 1.89	$ 2.30	$ 2.42
Share-based Compensation Expense				$ 104,000	$ 197,000
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Exercised				102,000

Commitments And Contingencies (

Commitments And Contingencies (Detail) - USD ($)	3 Months Ended
	Sep. 30, 2017	Jul. 01, 2017
Commitments and Contingencies Disclosure [Abstract]
Loss Contingency, Damages Sought, Value	$ 9,000,000
Warranty reserve	$ 32,000	$ 32,000

Fair Value Measurements (Assets

Fair Value Measurements (Assets And Liabilities Measured At Fair Value On Recurring Basis) (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Jul. 01, 2017	Dec. 28, 2016	Sep. 03, 2014
Fair Value Disclosures [Line Items]
Line of Credit Facility, Amount Outstanding	$ 18,000	$ 18,300
Long-term Debt	41,154			$ 35,000
Term Loan
Fair Value Disclosures [Line Items]
Long-term Debt	20,000	21,300
Equipment Term Loan
Fair Value Disclosures [Line Items]
Long-term Debt	3,300	3,500	$ 3,900
Forward Contracts and swaps
Fair Value Disclosures [Line Items]
Foreign currency forward contracts, Financial Assets	1,110	1,010
Foreign currency forward contracts, Financial Liabilities	(3,709)	(5,112)
Interest Rate Swap
Fair Value Disclosures [Line Items]
Foreign currency forward contracts, Financial Liabilities	(72)	(103)
Level 1 | Forward Contracts and swaps
Fair Value Disclosures [Line Items]
Foreign currency forward contracts, Financial Assets	0	0
Foreign currency forward contracts, Financial Liabilities	0	0
Level 1 | Interest Rate Swap
Fair Value Disclosures [Line Items]
Foreign currency forward contracts, Financial Liabilities	0	0
Level 2 | Forward Contracts and swaps
Fair Value Disclosures [Line Items]
Foreign currency forward contracts, Financial Assets	1,110	1,010
Foreign currency forward contracts, Financial Liabilities	(3,709)	(5,112)
Level 2 | Interest Rate Swap
Fair Value Disclosures [Line Items]
Foreign currency forward contracts, Financial Liabilities	(72)	(103)
Level 3 | Forward Contracts and swaps
Fair Value Disclosures [Line Items]
Foreign currency forward contracts, Financial Assets	0	0
Foreign currency forward contracts, Financial Liabilities	0	0
Level 3 | Interest Rate Swap
Fair Value Disclosures [Line Items]
Foreign currency forward contracts, Financial Liabilities	$ 0	$ 0

Derivative Financial Instrume37

Derivative Financial Instruments (Detail) - USD ($) $ in Millions	3 Months Ended
	Dec. 30, 2017	Sep. 30, 2017	Oct. 01, 2016	Sep. 01, 2015
Derivative [Line Items]
Derivative, Notional Amount		$ 50.3
Contract maturity date		Sep. 25, 2019
Foreign currency forward contracts settled		$ 5.4	$ 5.2
Derivative, Fixed Interest Rate			1.97%
Net amount of existing losses expected to be reclassified into earnings within the next 12 months		$ 2.3
Interest Rate Swap
Derivative [Line Items]
Derivative, Notional Amount				$ 25
Subsequent Event [Member]
Derivative [Line Items]
Contract maturity date	Dec. 24, 2019
Additional Amount Of Foreign Currency Forward Contracts	$ 5
Foreign currency forward contracts entered	$ 7.2

Schedule of Derivative Instrume

Schedule of Derivative Instruments (Detail) - USD ($) $ in Thousands	Sep. 28, 2019	Jun. 29, 2019	Mar. 30, 2019	Dec. 29, 2018	Sep. 29, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 30, 2017	Sep. 30, 2017
Derivative [Line Items]
Derivative, Notional Amount									$ 50,300
Subsequent Event [Member]
Derivative [Line Items]
Derivative, Fair Value, Net	$ 658	$ 383	$ 68	$ (261)	$ (557)	$ (736)	$ (824)	$ (1,330)
Subsequent Event [Member] | Mexico, Pesos
Derivative [Line Items]
Derivative, Notional Amount	148,468	142,947	137,944	125,328	90,443	95,500	90,812	88,558
Subsequent Event [Member] | United States of America, Dollars
Derivative [Line Items]
Derivative, Notional Amount	$ 6,740	$ 6,828	$ 6,979	$ 6,746	$ 5,301	$ 5,811	$ 5,713	$ 6,162

Derivative Financial Instrume39

Derivative Financial Instruments (Summarized Fair Value Of Derivative Instruments In Consolidated Balance Sheets) (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Jul. 01, 2017
Forward Contracts and swaps | Other Long Term Assets
Derivative Instruments [Line Items]
Foreign currency forward contracts, Asset Fair Value	$ 1,110	$ 1,010
Forward Contracts and swaps | Other Current Liabilities
Derivative Instruments [Line Items]
Foreign currency forward contracts, Liability Fair Value	(3,448)	(4,226)
Forward Contracts and swaps | Other Long Term Liabilities
Derivative Instruments [Line Items]
Foreign currency forward contracts, Liability Fair Value	(261)	(886)
Interest Rate Swap | Other Current Liabilities
Derivative Instruments [Line Items]
Foreign currency forward contracts, Liability Fair Value	(61)	(81)
Interest Rate Swap | Other Long Term Liabilities
Derivative Instruments [Line Items]
Foreign currency forward contracts, Liability Fair Value	$ (11)	$ (22)

Derivative Financial Instrume40

Derivative Financial Instruments (Gain (Loss) Of Derivative Instruments In Statement Of Operations) (Detail) - Designated As Hedging Instrument - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Oct. 01, 2016
Derivatives used in Net Investment Hedge, Net of Tax [Roll Forward]
AOCI Balance, Period Start	$ (2,775)	$ (7,573)
Effective Portion Recorded In AOCI	(131)	(2,190)
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	1,143	1,190
AOCI Balance, Period End	(1,763)	(8,573)
Forward Contracts and swaps
Derivatives used in Net Investment Hedge, Net of Tax [Roll Forward]
AOCI Balance, Period Start	(2,707)	(7,245)
Effective Portion Recorded In AOCI	(122)	(2,189)
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	1,114	1,109
AOCI Balance, Period End	(1,715)	(8,325)
Interest Rate Swap
Derivatives used in Net Investment Hedge, Net of Tax [Roll Forward]
AOCI Balance, Period Start	(68)	(328)
Effective Portion Recorded In AOCI	(9)	(1)
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	29	81
AOCI Balance, Period End	$ (48)	$ (248)

Goodwill and Other Intangible41

Goodwill and Other Intangible Assets (Detail) - USD ($)	3 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Jul. 01, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 9,957,000		$ 9,957,000
Amortization of Intangible Assets	277,000	$ 282,000
Finite-lived Intangible Assets [Roll Forward]
Gross Carrying Amount	8,312,000		8,312,000
Accumulated Amortization	(3,789,000)		(3,512,000)
Net Carrying Amount	4,523,000		4,800,000
Non-Compete Agreements
Finite-lived Intangible Assets [Roll Forward]
Gross Carrying Amount	568,000		568,000
Accumulated Amortization	(512,000)		(483,000)
Net Carrying Amount	$ 56,000		85,000
Customer Relationships
Finite-lived Intangible Assets [Roll Forward]
Amortization Period in Years	10 years
Gross Carrying Amount	$ 4,803,000		4,803,000
Accumulated Amortization	(1,711,000)		(1,590,000)
Net Carrying Amount	3,092,000		3,213,000
Favorable Lease Agreements
Finite-lived Intangible Assets [Roll Forward]
Gross Carrying Amount	2,941,000		2,941,000
Accumulated Amortization	(1,566,000)		(1,439,000)
Net Carrying Amount	$ 1,375,000		$ 1,502,000
Minimum | Non-Compete Agreements
Finite-lived Intangible Assets [Roll Forward]
Amortization Period in Years	3 years
Minimum | Favorable Lease Agreements
Finite-lived Intangible Assets [Roll Forward]
Amortization Period in Years	4 years
Maximum | Non-Compete Agreements
Finite-lived Intangible Assets [Roll Forward]
Amortization Period in Years	5 years
Maximum | Favorable Lease Agreements
Finite-lived Intangible Assets [Roll Forward]
Amortization Period in Years	7 years

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Aggregate Amortization Expense by Fiscal Year) (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Jul. 01, 2017
Finite-Lived Intangible Assets [Line Items]
2018 (1)	$ 796
2,019	818
2,020	783
2,021	784
2,022	531
Thereafter	811
Total amortization expense	$ 4,523	$ 4,800