Sparton (SPA) 10-Q 9 May 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Apr. 02, 2017	May 05, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	Sparton Corp.
Entity Central Index Key	92,679
Current Fiscal Year End Date	--07-02
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Apr. 2, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		9,860,635

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Apr. 02, 2017	Jul. 03, 2016
Current Assets:
Cash and cash equivalents	$ 1,032	$ 132
Accounts receivable, net of allowance for doubtful accounts of $271 and $407, respectively	48,092	46,759
Inventories and cost of contracts in progress, net	64,966	77,871
Prepaid expenses and other current assets	4,933	5,844
Total current assets	119,023	130,606
Property, plant and equipment, net	33,819	33,320
Goodwill	12,663	12,663
Other intangible assets, net	30,434	36,933
Deferred income taxes	25,752	25,784
Other non-current assets	5,794	6,692
Total assets	227,485	245,998
Current Liabilities:
Accounts payable	35,366	38,290
Accrued salaries and benefits	9,058	11,512
Current portion of capital lease obligations	268	217
Other accrued expenses	8,927	12,420
Total current liabilities	53,619	62,439
Credit facility	87,622	97,206
Capital lease obligations, less current portion	234	332
Environmental remediation	5,614	6,117
Pension liability	1,168	1,276
Total liabilities	148,257	167,370
Commitments and contingencies
Shareholders’ Equity:
Preferred stock, no par value; 200,000 shares authorized, none issued	0	0
Common stock, $1.25 par value; 15,000,000 shares authorized, 9,860,635 and 9,845,469 shares issued and outstanding, respectively	12,326	12,307
Capital in excess of par value	17,213	16,407
Retained earnings	51,280	51,650
Accumulated other comprehensive loss	(1,591)	(1,736)
Total shareholders’ equity	79,228	78,628
Total liabilities and shareholders’ equity	$ 227,485	$ 245,998

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Apr. 02, 2017	Jul. 03, 2016
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 271	$ 407
Preferred stock, shares authorized	200,000	200,000
Preferred stock, shares issued	0	0
Common stock, par value (usd per share)	$ 1.25	$ 1.25
Common stock, shares authorized	15,000,000	15,000,000
Common stock, shares issued	9,860,635	9,845,469
Common stock, shares outstanding	9,860,635	9,845,469

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 02, 2017	Mar. 27, 2016	Apr. 02, 2017	Mar. 27, 2016
Income Statement [Abstract]
Net sales	$ 95,410	$ 102,175	$ 293,176	$ 312,395
Cost of goods sold	78,495	83,108	243,078	253,669
Gross profit	16,915	19,067	50,098	58,726
Operating Expense:
Selling and administrative expenses	12,862	13,727	39,198	41,691
Internal research and development expenses	424	561	1,308	1,512
Amortization of intangible assets	2,099	2,361	6,509	7,323
Restructuring charges	0	(258)	0	2,102
Reversal of accrued contingent consideration	0	0	0	(1,530)
Total operating expense	15,385	16,391	47,015	51,098
Operating income	1,530	2,676	3,083	7,628
Other income (expense)
Interest expense, net	(1,075)	(956)	(3,327)	(2,739)
Other, net	20	28	29	130
Total other expense, net	(1,055)	(928)	(3,298)	(2,609)
Income (loss) before income taxes	475	1,748	(215)	5,019
Income taxes	46	612	155	1,221
Net income (loss)	$ 429	$ 1,136	$ (370)	$ 3,798
Income (loss) per share of common stock:
Basic (in dollars per share)	$ 0.04	$ 0.12	$ (0.04)	$ 0.38
Diluted (in dollars per share)	$ 0.04	$ 0.12	$ (0.04)	$ 0.38
Weighted average shares of common stock outstanding:
Basic (in shares)	9,818,789	9,789,807	9,804,908	9,784,544
Diluted (in shares)	9,818,789	9,789,807	9,804,908	9,784,544

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 02, 2017	Mar. 27, 2016	Apr. 02, 2017	Mar. 27, 2016
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 429	$ 1,136	$ (370)	$ 3,798
Other comprehensive income, net:
Pension amortization of unrecognized net actuarial loss, net of tax	55	40	145	87
Unrecognized loss on marketable equity securities, net of tax	0	169	0	(4)
Other comprehensive income, net	55	209	145	83
Comprehensive income (loss)	$ 484	$ 1,345	$ (225)	$ 3,881

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	9 Months Ended
	Apr. 02, 2017	Mar. 27, 2016
Cash Flows from Operating Activities:
Net income (loss)	$ (370)	$ 3,798
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation	4,474	4,488
Amortization of intangible assets	6,509	7,323
Deferred income taxes	32	82
Stock-based compensation expense	825	(32)
Amortization of deferred financing costs	373	210
Loss (gain) on sale of property, plant and equipment, net	13	(56)
Reversal of accrued contingent consideration	0	(1,530)
Excess tax benefit from stock-based compensation	0	(161)
Changes in operating assets and liabilities (net of acquisitions):
Accounts receivable	(1,333)	9,492
Inventories and cost of contracts in progress	12,905	(5,508)
Prepaid expenses and other assets	1,440	(1,928)
Performance based payments on customer contracts	0	(1,756)
Accounts payable and accrued expenses	(9,336)	6,774
Net cash provided by operating activities	15,506	21,308
Cash Flows from Investing Activities:
Acquisition of businesses, net of cash acquired	0	750
Purchases of property, plant and equipment	(4,829)	(5,227)
Proceeds from sale of property, plant and equipment	17	221
Net cash used in investing activity	(4,812)	(4,256)
Cash Flows from Financing Activities:
Borrowings from credit facility	101,163	97,150
Repayments against credit facility	(110,747)	(128,250)
Payments under capital lease agreements	(195)	(52)
Payment of debt financing costs	(15)	0
Repurchase of stock	0	(141)
Excess tax benefit from stock-based compensation	0	161
Net cash used in financing activities	(9,794)	(31,132)
Net increase (decrease) in cash and cash equivalents	900	(14,080)
Cash and cash equivalents at beginning of period	132	14,914
Cash and cash equivalents at end of period	1,032	834
Supplemental disclosure of cash flow information:
Cash paid for interest	2,352	2,352
Cash paid for income taxes	553	766
Supplemental disclosure of non-cash investing activities:
Machinery and equipment financed under capital leases	148	656
Adjustments to acquired companies' opening balance sheets	$ 0	$ 3,412

Business and Basis of Presentat

Business and Basis of Presentation	9 Months Ended
	Apr. 02, 2017
Accounting Policies [Abstract]
Business and Basis of Presentation	Business and Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Certain reclassifications of prior year amounts have been made to conform to the current year presentation. Subsequent events have been evaluated through the date these financial statements were issued. Additionally, the consolidated financial statements should be read in conjunction with Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations, included in this Quarterly Report on Form 10-Q. Operating results for the quarter and three quarters ended April 2, 2017 are not necessarily indicative of the results that may be expected for the year ending July 2, 2017 . The consolidated balance sheet at July 3, 2016 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States ("GAAP") for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended July 3, 2016 . The Company reports fiscal years on a 52-53 week year (5-4-4 basis) ending on the Sunday closest to June 30. On April 27, 2016, Sparton announced that its Board of Directors had authorized a process to identify parties interested in acquiring the Company. This process is ongoing and there can be no assurance that this process will result in a consummation of any transaction. The Company cannot currently determine if the process will ultimately conclude in a sale of all or some of its assets. As such, no adjustments have been made to the Company’s carrying value of its assets or liabilities as a result of the contemplated sale.

Inventories and Cost of Contrac

Inventories and Cost of Contracts in Progress, net	9 Months Ended
	Apr. 02, 2017
Inventory Disclosure [Abstract]
Inventories and Cost of Contracts in Progress, net	Inventories and Cost of Contracts in Progress, net The following are the major classifications of inventory, net of interim billings: April 2, July 3, Raw materials $ 35,079 $ 40,914 Work in process 21,988 23,626 Finished goods 18,190 22,294 Total inventory and cost of contracts in progress, gross 75,257 86,834 Inventory to which the U.S. government has title due to interim billings (10,291 ) (8,963 ) Total inventory and cost of contracts in progress, net $ 64,966 $ 77,871

Property, Plant and Equipment,

Property, Plant and Equipment, net	9 Months Ended
	Apr. 02, 2017
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment, net	Property, Plant and Equipment, net Property, plant and equipment, net consists of the following: April 2, July 3, Land and land improvements $ 1,439 $ 1,429 Buildings and building improvements 28,085 27,660 Machinery and equipment 45,614 43,134 Construction in progress 3,347 1,372 Total property, plant and equipment 78,485 73,595 Less accumulated depreciation (44,666 ) (40,275 ) Total property, plant and equipment, net $ 33,819 $ 33,320

Other Intangible Assets

Other Intangible Assets	9 Months Ended
	Apr. 02, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Other Intangible Assets	Other Intangible Assets The components of other intangible assets, net consist of the following: Net Carrying Value at Additions Amortization Net Carrying Value at Non-compete agreements $ 2,193 $ — $ (663 ) $ 1,530 Customer relationships 32,625 — (5,540 ) 27,085 Trademarks/Tradenames 1,382 — (121 ) 1,261 Unpatented technology 733 — (184 ) 549 Patents — 10 (1 ) 9 Other intangible assets, net $ 36,933 $ 10 $ (6,509 ) $ 30,434

Debt

Debt	9 Months Ended
	Apr. 02, 2017
Debt Disclosure [Abstract]
Debt	Debt On September 11, 2014, the Company entered into a revolving line-of-credit facility with a group of banks (the “Credit Facility”). The Company amended the Credit Facility on April 13, 2015 and again on June 27, 2016 . As of the June 27, 2016 amendment, the Credit Agreement permits the Company to borrow up to $175,000 , and the Company has the right to request an increase of the facility in an amount of up to $50,000 , subject to restrictions. The facility is secured by substantially all assets of the Company and its subsidiaries and expires on September 11, 2019 . As of April 2, 2017 , the Company had $82,166 available under the facility, which included letters of credit of $4,710 and capital leases of $502 . The letters of credit balance includes a $3,114 standby letter of credit issued during the second quarter of fiscal 2017 to support environmental remediation obligations. (See Note 8, Commitments and Contingencies, of the “Notes to Unaudited Consolidated Financial Statements” in this Quarterly Report on Form 10-Q for further information). All borrowings under the Facility are classified as long-term. Outstanding borrowings under the Credit Facility will bear interest, at the Company’s option, at either LIBOR, fixed for interest periods of one, two, three or six month periods, plus 1.00% to 3.00% , or at the bank’s base rate, as defined, plus 0.00% to 2.00% , based upon the Company’s Total Funded Debt/EBITDA Ratio, as defined. The Company is also required to pay commitment fees on unused portions of the Credit Facility ranging from 0.20% to 0.50% , based on the Company’s Total Funded Debt/EBITDA Ratio, as defined. The Credit Facility includes representations, covenants and events of default that are customary for financing transactions of this nature. The effective interest rate on outstanding borrowings under the Credit Facility was 3.65% at April 2, 2017 . As a condition of the Credit Facility, the Company is subject to certain customary covenants, with which it was in compliance at April 2, 2017 .

Income Taxes

Income Taxes	9 Months Ended
	Apr. 02, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company recognized a discrete income tax expense of $350 in the second quarter of fiscal year 2017 for a tax event at its Vietnam subsidiary, a discrete income tax benefit of $121 in the third quarter of fiscal year 2017 related to the conclusion of a state tax audit and a discrete income tax benefit of $536 in the second quarter of fiscal year 2016 as a result of the reversal of previously accrued contingent purchase price consideration liability. The Company's effective income tax rate for interim periods was determined based on the Company's estimated annual effective tax rate for the applicable year using the federal statutory income tax rate, permanent tax differences, foreign income taxes and state income taxes. Excluding the discrete tax events described above, the Company's estimated annual effective rate for the third quarters and first three quarters of fiscal year 2017 and 2016 was determined to be approximately 35% .

Defined Benefit Pension Plan

Defined Benefit Pension Plan	9 Months Ended
	Apr. 02, 2017
Compensation and Retirement Disclosure [Abstract]
Defined Benefit Pension Plan	Defined Benefit Pension Plan The Company has a frozen defined benefit pension plan. The Company recorded net periodic pension expense of $18 and $7 for the third quarter of fiscal year 2017 and 2016 , respectively. Net periodic pension income was $55 for the first three quarters of fiscal year 2017 and net periodic pension income was $16 for the first three quarters of 2016 , respectively. No contributions were made to the pension plan during the first three quarters of fiscal years 2017 and 2016 , respectively.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Apr. 02, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies From time to time, the Company is involved in various legal proceedings relating to claims arising in the ordinary course of business. The Company is not currently a party to any such legal proceedings, the adverse outcome of which, individually or in the aggregate, is expected to have a material adverse effect on the Company's financial condition or results of operations. Additionally, the Company believes it has sufficient insurance coverage to effectively mitigate any litigation exposure. The Company is a party to an environmental remediation matter in Albuquerque, New Mexico ("Coors Road"). As of April 2, 2017 and July 3, 2016 , Sparton had accrued $6,197 and $6,701 , respectively, as its estimate of the remaining minimum future discounted financial liability regarding this matter, of which $583 and $584 , respectively, was classified as a current liability and included on the balance sheets in other accrued expenses. As of April 2, 2017 and July 3, 2016 , the Company had accrued $1,606 , in relation to expected reimbursements from the Department of Energy, which are included in other non-current assets on the balance sheets and are considered collectible. On October 3, 2016, the Company established the Sparton Corporation Standby Financial Assurance Trust and issued a standby letter of credit in the amount of $3,114 related to the Coors Road environmental remediation liability. The trust was established to meet the United States Environmental Protection Agency’s financial assurance requirements. As a result of the goodwill write-off of $64,174 in the prior fiscal year, the Company was not in compliance with these requirements. The release of such funds would only occur should the Company not meet its financial remediation requirements. The trust will remain in place until the Company is in compliance with the financial requirements. Upon successful compliance with the financial requirements, the trust will be dissolved and the letter of credit canceled. See the Company’s Annual Report on Form 10-K for the fiscal year ended July 3, 2016 for further information. The Company is subject to audits by certain federal government agencies, including the Defense Contract Audit Agency and the Defense Contract Management Agency. The agencies audit and evaluate government contracts and government contractors’ administrative processes and systems. These agencies review the Company’s performance on contracts, pricing practices, cost structure, financial capability and compliance with applicable laws, regulations and standards. They also review the adequacy of the Company’s internal control systems and policies, including the Company’s purchasing, accounting, estimating, compensation and management information processes and systems. The Company works closely with these agencies to ensure compliance. From time to time, the Company is notified of claims related to noncompliance arising from the audits performed by agencies. Such claims have historically been subject to actions of remediation and/or financial claims that are typically subject to negotiated settlements. The Company believes that it has appropriate reserves established for outstanding issues and is not aware of any other issues of noncompliance that would have a material effect on the Company’s financial position or results of operations.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Apr. 02, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation The Company has a long-term incentive plan to offer incentive and non-qualified stock options, stock appreciation rights, restricted stock or restricted stock units, performance awards and other stock-based awards, including grants of shares under the Sparton Corporation 2010 Long-Term Incentive Plan (the “2010 Plan”). The following table shows stock-based compensation expense (income) by type of share-based award included in the consolidated statements of income: For the Third Quarter of Fiscal Years For the First Three Quarters of Fiscal Years 2017 2016 2017 2016 Fair value expense of stock option awards $ 48 $ (111 ) $ 145 $ 206 Restricted stock units 447 (444 ) 1,251 123 Restricted and unrestricted stock (947 ) (346 ) (571 ) (361 ) Total stock-based compensation expense (income) $ (452 ) $ (901 ) $ 825 $ (32 ) At the end of the third quarter of fiscal 2017, the Company recorded income of $986 for the reversal of previously recorded expense associated with certain stock-based compensation awards. No stock options were granted during the first three quarters of fiscal year 2017. During the first three quarters of fiscal year 2016, the Company awarded an aggregate of 129,798 stock options to certain members of management with an average exercise price of $23.02 , none of which were granted during the third quarter of fiscal year 2016. Unrestricted shares of 16,905 and 14,234 were granted to the Company's board of directors in the second quarter of fiscal year 2017 and 2016, respectively, as part of their annual compensation. The following is a summary of activity for the first three quarters of fiscal year 2017 related to the 2010 Plan: Stock Options Restricted stock units Restricted shares Outstanding at July 3, 2016 115,415 79,274 52,651 Granted — 79,889 — Forfeited (10,630 ) (6,029 ) (26,739 ) Vested — (25,000 ) — Outstanding at April 2, 2017 104,785 128,134 25,912 As of April 2, 2017 , 33,829 stock options were exercisable, of which 20,011 vested in the first three quarters of fiscal year 2017, none of which vested in the third quarter.

Earnings Per Share Data

Earnings Per Share Data	9 Months Ended
	Apr. 02, 2017
Earnings Per Share [Abstract]
Earnings Per Share Data	Earnings Per Share Data The following table sets forth the computation of basic and diluted net income (loss) per share: For the Third Quarter of Fiscal Years For the First Three Quarters of Fiscal Years 2017 2016 2017 2016 Numerator: Net income (loss) $ 429 $ 1,136 $ (370 ) $ 3,798 Less net income allocated to contingently issuable participating securities — (9 ) — (36 ) Net income (loss) available to common shareholders $ 429 $ 1,127 $ (370 ) $ 3,762 Weighted average shares outstanding – Basic 9,818,789 9,789,807 9,804,908 9,784,544 Dilutive effect of stock options — — — — Weighted average shares outstanding – Diluted 9,818,789 9,789,807 9,804,908 9,784,544 Net income (loss) available to common shareholders per share: Basic $ 0.04 $ 0.12 $ (0.04 ) $ 0.38 Diluted $ 0.04 $ 0.12 $ (0.04 ) $ 0.38 The number of shares excluded from the calculation of diluted net income (loss) per share because the shares were either contingently issuable or their inclusion would be anti-dilutive was 258,831 and 244,912 for the third quarter and first three quarters of fiscal years 2017 and 2016, respectively.

Business Segments

Business Segments	9 Months Ended
	Apr. 02, 2017
Segment Reporting [Abstract]
Business Segments	Business Segments The Company has identified two reportable segments; Manufacturing & Design Services ("MDS") and Engineered Components & Products ("ECP"). The Company uses an internal management reporting system, which provides important financial data to evaluate performance and allocate the Company's resources on a segment basis. The Company’s Chief Operating Decision Maker assesses segment performance and allocates resources to each segment individually. Operating results and certain other financial information about the Company’s two reportable segments for the third quarters and first three quarters of fiscal years 2017 and 2016 were as follows: For the Third Quarter of Fiscal Year 2017 MDS ECP Unallocated Eliminations Total Net sales $ 61,084 $ 37,053 $ — $ (2,727 ) $ 95,410 Gross profit 6,690 10,225 — — 16,915 Selling and administrative expenses (incl. depreciation) 5,684 4,160 3,018 — 12,862 Internal research and development expenses — 424 — — 424 Operating income (loss) (722 ) 5,270 (3,018 ) — 1,530 Capital expenditures 1,291 260 708 — 2,259 Total assets at April 2, 2017 $ 149,989 $ 68,066 $ 9,430 $ — $ 227,485 For the Third Quarter of Fiscal Year 2016 MDS ECP Eliminations Total Net sales $ 68,187 $ 37,566 $ — $ (3,578 ) $ 102,175 Gross profit 7,771 11,296 — — 19,067 Selling and administrative expenses (incl. depreciation) 5,850 3,898 3,979 — 13,727 Internal research and development expenses — 561 — — 561 Restructuring charges (258 ) — — — (258 ) Operating income (loss) 231 6,424 (3,979 ) — 2,676 Capital expenditures 473 496 995 — 1,964 Total assets at July 3, 2016 $ 167,277 $ 69,627 $ 9,094 $ — $ 245,998 For the First Three Quarters of Fiscal Year 2017 MDS ECP Eliminations Total Net sales $ 193,468 $ 106,995 $ — $ (7,287 ) $ 293,176 Gross profit 22,341 27,757 — — 50,098 Selling and administrative expenses (incl. depreciation) 17,221 11,529 10,448 — 39,198 Internal research and development expenses — 1,308 — — 1,308 Operating income (loss) (250 ) 13,781 (10,448 ) — 3,083 Capital expenditures $ 1,960 $ 1,018 $ 1,851 $ — $ 4,829 For the First Three Quarters of Fiscal Year 2016 MDS ECP Eliminations Total Net sales $ 209,730 $ 116,297 $ — $ (13,632 ) $ 312,395 Gross profit 25,056 33,670 — — 58,726 Selling and administrative expenses (incl. depreciation) 18,377 11,210 12,104 — 41,691 Internal research and development expenses — 1,512 — — 1,512 Restructuring charges 2,102 — — — 2,102 Reversal of accrued contingent consideration (1,530 ) — — — (1,530 ) Operating income (loss) 48 19,684 (12,104 ) — 7,628 Capital expenditures $ 1,906 $ 769 $ 2,552 $ — $ 5,227

New Accounting Standards

New Accounting Standards	9 Months Ended
	Apr. 02, 2017
Accounting Policies [Abstract]
New Accounting Standards	New Accounting Standards In May 2014, the Financial Accounting Standards ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09 ("ASU 2014-09"), Revenue from Contracts with Customers , which amends guidance for revenue recognition. Under the new standard, revenue will be recognized when control of the promised goods or services is transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods and services. The standard creates a five-step model that will generally require companies to use more judgment and make more estimates than under current guidance when considering the terms of contracts along with all relevant facts and circumstances. These include the identification of customer contracts and separating performance obligations, the determination of transaction price that potentially includes an estimate of variable consideration, allocating the transaction price to each separate performance obligation, and recognizing revenue in line with the pattern of transfer. In August 2015, the FASB issued an amendment to defer the effective date for all entities by one year. The new standard will become effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted as of annual reporting periods beginning after December 15, 2016. Companies have the option of using either a full or modified retrospective approach in applying this standard. During fiscal 2016 and 2017, the FASB issued four additional updates which further clarify the guidance provided in ASU 2014-09. The Company is currently in the process of evaluating the impact of adoption on its consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11 ("ASU 2015-11"), Simplifying the Measurement of Inventory. ASU 2015-11 clarifies that inventory should be held at the lower of cost or net realizable value. Net realizable value is defined as the estimated selling price, less the estimated costs to complete, dispose and transport such inventory. ASU 2015-11 will be effective for fiscal years and interim periods beginning after December 15, 2016. ASU 2015-11 is required to be applied prospectively and early adoption is permitted. The Company is currently in the process of evaluating the impact of adoption on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02 (“ASU 2016-02”), Leases (Topic 842) . ASU 2016-02 establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for capital leases and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently in the process of evaluating the impact of adoption on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09 ("ASU 2016-09"), Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 will directly impact the tax administration of equity plans. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted and any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The Company has elected to early adopt ASU 2016-09 as of July 4, 2016 on a prospective basis. There was no impact on the Company's financial statements as a result of early adoption in the first quarter of fiscal year 2017. In June 2016, the FASB issued ASU No. 2016-13 ("ASU 2016-13"), Financial Instruments — Credit Losses (Topic 326) . ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019 and early adoption is permitted. The Company is currently in the process of evaluating the impact of adoption on its consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15 ("ASU 2016-15"), Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . ASU 2016-15 will make eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017. The new standard will require adoption on a retrospective basis unless it is impracticable to apply, in which case it would be required to apply the amendments prospectively as of the earliest date practicable. The Company is currently in the process of evaluating the impact of adoption on its consolidated financial statements. In October 2016, the FASB issued ASU 2016-16 ("ASU 2016-16"), Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory , which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU 2016-16 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted as of the beginning of a fiscal year. ASU 2016-16 must be adopted using a modified retrospective transition method which is a cumulative-effective adjustment to retained earnings as of the beginning of the first effective reporting period. The Company is currently in the process of evaluating the impact of adoption on its consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18 ("ASU 2016-18"), Restricted Cash , which addresses classification and presentation of changes in restricted cash on the statement of cash flows. ASU 2016-18 requires an entity’s reconciliation of the beginning-of-period and end-of-period total amounts shown on the statement of cash flows to include in cash and cash equivalents amounts generally described as restricted cash and restricted cash equivalents. ASU 2016-18 does not define restricted cash or restricted cash equivalents, but an entity will need to disclose the nature of the restrictions. ASU 2016-18 is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, adjustments should be reflected at the beginning of the fiscal year that includes that interim period. Entities should apply this ASU using a retrospective transition method to each period presented. The Company is currently in the process of evaluating the impact of adoption on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04 (“ASU 2017-04”), Simplifying the Test for Goodwill Impairment . ASU 2017-04 eliminates step 2 from the goodwill impairment test. As amended, the goodwill impairment test will consist of one step comparing the fair value of a reporting unit with its carrying amount. An entity should recognize a goodwill impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. An entity may still perform the optional qualitative assessment for a reporting unit to determine if it is more likely than not that goodwill is impaired. ASU 2017-04 will be effective for fiscal years and interim periods beginning after December 15, 2019. ASU 2017-04 is required to be applied prospectively and early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently in the process of evaluating the impact of adoption on its consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, (“ASU 2017-07”), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cos t. ASU 2017-07 requires that the service cost component be disaggregated from the other components of net benefit cost and provides guidance for separate presentation in the income statement. ASU 2017-07 also changes the rules for capitalization of costs such that only the service cost component of net benefit cost may be capitalized rather than total net benefit cost. ASU 2017-07 will be effective for fiscal years and interim periods beginning after December 15, 2017. ASU 2017-07 is required to be applied retrospectively for the income statement presentation and prospectively for the capitalization of the service cost component of net periodic pension cost. The Company is currently in the process of evaluating the impact of adoption on its consolidated financial statements.

Business and Basis of Present19

Business and Basis of Presentation (Policies)	9 Months Ended
	Apr. 02, 2017
Accounting Policies [Abstract]
Business and Basis of Presentation	Business and Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Certain reclassifications of prior year amounts have been made to conform to the current year presentation. Subsequent events have been evaluated through the date these financial statements were issued. Additionally, the consolidated financial statements should be read in conjunction with Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations, included in this Quarterly Report on Form 10-Q. Operating results for the quarter and three quarters ended April 2, 2017 are not necessarily indicative of the results that may be expected for the year ending July 2, 2017 . The consolidated balance sheet at July 3, 2016 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States ("GAAP") for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended July 3, 2016 . The Company reports fiscal years on a 52-53 week year (5-4-4 basis) ending on the Sunday closest to June 30. On April 27, 2016, Sparton announced that its Board of Directors had authorized a process to identify parties interested in acquiring the Company. This process is ongoing and there can be no assurance that this process will result in a consummation of any transaction. The Company cannot currently determine if the process will ultimately conclude in a sale of all or some of its assets. As such, no adjustments have been made to the Company’s carrying value of its assets or liabilities as a result of the contemplated sale.
New Accounting Standards	New Accounting Standards In May 2014, the Financial Accounting Standards ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09 ("ASU 2014-09"), Revenue from Contracts with Customers , which amends guidance for revenue recognition. Under the new standard, revenue will be recognized when control of the promised goods or services is transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods and services. The standard creates a five-step model that will generally require companies to use more judgment and make more estimates than under current guidance when considering the terms of contracts along with all relevant facts and circumstances. These include the identification of customer contracts and separating performance obligations, the determination of transaction price that potentially includes an estimate of variable consideration, allocating the transaction price to each separate performance obligation, and recognizing revenue in line with the pattern of transfer. In August 2015, the FASB issued an amendment to defer the effective date for all entities by one year. The new standard will become effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted as of annual reporting periods beginning after December 15, 2016. Companies have the option of using either a full or modified retrospective approach in applying this standard. During fiscal 2016 and 2017, the FASB issued four additional updates which further clarify the guidance provided in ASU 2014-09. The Company is currently in the process of evaluating the impact of adoption on its consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11 ("ASU 2015-11"), Simplifying the Measurement of Inventory. ASU 2015-11 clarifies that inventory should be held at the lower of cost or net realizable value. Net realizable value is defined as the estimated selling price, less the estimated costs to complete, dispose and transport such inventory. ASU 2015-11 will be effective for fiscal years and interim periods beginning after December 15, 2016. ASU 2015-11 is required to be applied prospectively and early adoption is permitted. The Company is currently in the process of evaluating the impact of adoption on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02 (“ASU 2016-02”), Leases (Topic 842) . ASU 2016-02 establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for capital leases and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently in the process of evaluating the impact of adoption on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09 ("ASU 2016-09"), Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 will directly impact the tax administration of equity plans. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted and any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The Company has elected to early adopt ASU 2016-09 as of July 4, 2016 on a prospective basis. There was no impact on the Company's financial statements as a result of early adoption in the first quarter of fiscal year 2017. In June 2016, the FASB issued ASU No. 2016-13 ("ASU 2016-13"), Financial Instruments — Credit Losses (Topic 326) . ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019 and early adoption is permitted. The Company is currently in the process of evaluating the impact of adoption on its consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15 ("ASU 2016-15"), Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . ASU 2016-15 will make eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017. The new standard will require adoption on a retrospective basis unless it is impracticable to apply, in which case it would be required to apply the amendments prospectively as of the earliest date practicable. The Company is currently in the process of evaluating the impact of adoption on its consolidated financial statements. In October 2016, the FASB issued ASU 2016-16 ("ASU 2016-16"), Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory , which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU 2016-16 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted as of the beginning of a fiscal year. ASU 2016-16 must be adopted using a modified retrospective transition method which is a cumulative-effective adjustment to retained earnings as of the beginning of the first effective reporting period. The Company is currently in the process of evaluating the impact of adoption on its consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18 ("ASU 2016-18"), Restricted Cash , which addresses classification and presentation of changes in restricted cash on the statement of cash flows. ASU 2016-18 requires an entity’s reconciliation of the beginning-of-period and end-of-period total amounts shown on the statement of cash flows to include in cash and cash equivalents amounts generally described as restricted cash and restricted cash equivalents. ASU 2016-18 does not define restricted cash or restricted cash equivalents, but an entity will need to disclose the nature of the restrictions. ASU 2016-18 is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, adjustments should be reflected at the beginning of the fiscal year that includes that interim period. Entities should apply this ASU using a retrospective transition method to each period presented. The Company is currently in the process of evaluating the impact of adoption on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04 (“ASU 2017-04”), Simplifying the Test for Goodwill Impairment . ASU 2017-04 eliminates step 2 from the goodwill impairment test. As amended, the goodwill impairment test will consist of one step comparing the fair value of a reporting unit with its carrying amount. An entity should recognize a goodwill impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. An entity may still perform the optional qualitative assessment for a reporting unit to determine if it is more likely than not that goodwill is impaired. ASU 2017-04 will be effective for fiscal years and interim periods beginning after December 15, 2019. ASU 2017-04 is required to be applied prospectively and early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently in the process of evaluating the impact of adoption on its consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, (“ASU 2017-07”), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cos t. ASU 2017-07 requires that the service cost component be disaggregated from the other components of net benefit cost and provides guidance for separate presentation in the income statement. ASU 2017-07 also changes the rules for capitalization of costs such that only the service cost component of net benefit cost may be capitalized rather than total net benefit cost. ASU 2017-07 will be effective for fiscal years and interim periods beginning after December 15, 2017. ASU 2017-07 is required to be applied retrospectively for the income statement presentation and prospectively for the capitalization of the service cost component of net periodic pension cost. The Company is currently in the process of evaluating the impact of adoption on its consolidated financial statements.

Inventories and Cost of Contr20

Inventories and Cost of Contracts in Progress, net (Tables)	9 Months Ended
	Apr. 02, 2017
Inventory Disclosure [Abstract]
Classifications of Inventory, Net of Interim Billings	The following are the major classifications of inventory, net of interim billings: April 2, July 3, Raw materials $ 35,079 $ 40,914 Work in process 21,988 23,626 Finished goods 18,190 22,294 Total inventory and cost of contracts in progress, gross 75,257 86,834 Inventory to which the U.S. government has title due to interim billings (10,291 ) (8,963 ) Total inventory and cost of contracts in progress, net $ 64,966 $ 77,871

Property, Plant and Equipment21

Property, Plant and Equipment, net (Tables)	9 Months Ended
	Apr. 02, 2017
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment, net	Property, plant and equipment, net consists of the following: April 2, July 3, Land and land improvements $ 1,439 $ 1,429 Buildings and building improvements 28,085 27,660 Machinery and equipment 45,614 43,134 Construction in progress 3,347 1,372 Total property, plant and equipment 78,485 73,595 Less accumulated depreciation (44,666 ) (40,275 ) Total property, plant and equipment, net $ 33,819 $ 33,320

Other Intangible Assets (Tables

Other Intangible Assets (Tables)	9 Months Ended
	Apr. 02, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of Intangible Assets, Net	The components of other intangible assets, net consist of the following: Net Carrying Value at Additions Amortization Net Carrying Value at Non-compete agreements $ 2,193 $ — $ (663 ) $ 1,530 Customer relationships 32,625 — (5,540 ) 27,085 Trademarks/Tradenames 1,382 — (121 ) 1,261 Unpatented technology 733 — (184 ) 549 Patents — 10 (1 ) 9 Other intangible assets, net $ 36,933 $ 10 $ (6,509 ) $ 30,434

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Apr. 02, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation Expense by Type of Share-Based Award	The following table shows stock-based compensation expense (income) by type of share-based award included in the consolidated statements of income: For the Third Quarter of Fiscal Years For the First Three Quarters of Fiscal Years 2017 2016 2017 2016 Fair value expense of stock option awards $ 48 $ (111 ) $ 145 $ 206 Restricted stock units 447 (444 ) 1,251 123 Restricted and unrestricted stock (947 ) (346 ) (571 ) (361 ) Total stock-based compensation expense (income) $ (452 ) $ (901 ) $ 825 $ (32 )
Summary of Options Outstanding and Exercisable	The following is a summary of activity for the first three quarters of fiscal year 2017 related to the 2010 Plan: Stock Options Restricted stock units Restricted shares Outstanding at July 3, 2016 115,415 79,274 52,651 Granted — 79,889 — Forfeited (10,630 ) (6,029 ) (26,739 ) Vested — (25,000 ) — Outstanding at April 2, 2017 104,785 128,134 25,912

Earnings Per Share Data (Tables

Earnings Per Share Data (Tables)	9 Months Ended
	Apr. 02, 2017
Earnings Per Share [Abstract]
Earnings Per Share	The following table sets forth the computation of basic and diluted net income (loss) per share: For the Third Quarter of Fiscal Years For the First Three Quarters of Fiscal Years 2017 2016 2017 2016 Numerator: Net income (loss) $ 429 $ 1,136 $ (370 ) $ 3,798 Less net income allocated to contingently issuable participating securities — (9 ) — (36 ) Net income (loss) available to common shareholders $ 429 $ 1,127 $ (370 ) $ 3,762 Weighted average shares outstanding – Basic 9,818,789 9,789,807 9,804,908 9,784,544 Dilutive effect of stock options — — — — Weighted average shares outstanding – Diluted 9,818,789 9,789,807 9,804,908 9,784,544 Net income (loss) available to common shareholders per share: Basic $ 0.04 $ 0.12 $ (0.04 ) $ 0.38 Diluted $ 0.04 $ 0.12 $ (0.04 ) $ 0.38

Business Segments (Tables)

Business Segments (Tables)	9 Months Ended
	Apr. 02, 2017
Segment Reporting [Abstract]
Operating Results and Other Financial Information by Segment	Operating results and certain other financial information about the Company’s two reportable segments for the third quarters and first three quarters of fiscal years 2017 and 2016 were as follows: For the Third Quarter of Fiscal Year 2017 MDS ECP Unallocated Eliminations Total Net sales $ 61,084 $ 37,053 $ — $ (2,727 ) $ 95,410 Gross profit 6,690 10,225 — — 16,915 Selling and administrative expenses (incl. depreciation) 5,684 4,160 3,018 — 12,862 Internal research and development expenses — 424 — — 424 Operating income (loss) (722 ) 5,270 (3,018 ) — 1,530 Capital expenditures 1,291 260 708 — 2,259 Total assets at April 2, 2017 $ 149,989 $ 68,066 $ 9,430 $ — $ 227,485 For the Third Quarter of Fiscal Year 2016 MDS ECP Eliminations Total Net sales $ 68,187 $ 37,566 $ — $ (3,578 ) $ 102,175 Gross profit 7,771 11,296 — — 19,067 Selling and administrative expenses (incl. depreciation) 5,850 3,898 3,979 — 13,727 Internal research and development expenses — 561 — — 561 Restructuring charges (258 ) — — — (258 ) Operating income (loss) 231 6,424 (3,979 ) — 2,676 Capital expenditures 473 496 995 — 1,964 Total assets at July 3, 2016 $ 167,277 $ 69,627 $ 9,094 $ — $ 245,998 For the First Three Quarters of Fiscal Year 2017 MDS ECP Eliminations Total Net sales $ 193,468 $ 106,995 $ — $ (7,287 ) $ 293,176 Gross profit 22,341 27,757 — — 50,098 Selling and administrative expenses (incl. depreciation) 17,221 11,529 10,448 — 39,198 Internal research and development expenses — 1,308 — — 1,308 Operating income (loss) (250 ) 13,781 (10,448 ) — 3,083 Capital expenditures $ 1,960 $ 1,018 $ 1,851 $ — $ 4,829 For the First Three Quarters of Fiscal Year 2016 MDS ECP Eliminations Total Net sales $ 209,730 $ 116,297 $ — $ (13,632 ) $ 312,395 Gross profit 25,056 33,670 — — 58,726 Selling and administrative expenses (incl. depreciation) 18,377 11,210 12,104 — 41,691 Internal research and development expenses — 1,512 — — 1,512 Restructuring charges 2,102 — — — 2,102 Reversal of accrued contingent consideration (1,530 ) — — — (1,530 ) Operating income (loss) 48 19,684 (12,104 ) — 7,628 Capital expenditures $ 1,906 $ 769 $ 2,552 $ — $ 5,227

Inventories and Cost of Contr26

Inventories and Cost of Contracts in Progress, net (Detail) - USD ($) $ in Thousands	Apr. 02, 2017	Jul. 03, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 35,079	$ 40,914
Work in process	21,988	23,626
Finished goods	18,190	22,294
Total inventory and cost of contracts in progress, gross	75,257	86,834
Inventory to which the U.S. government has title due to interim billings	(10,291)	(8,963)
Total inventory and cost of contracts in progress, net	$ 64,966	$ 77,871

Property, Plant and Equipment27

Property, Plant and Equipment, net (Detail) - USD ($) $ in Thousands	Apr. 02, 2017	Jul. 03, 2016
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	$ 78,485	$ 73,595
Less accumulated depreciation	(44,666)	(40,275)
Total property, plant and equipment, net	33,819	33,320
Land and land improvements
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	1,439	1,429
Buildings and building improvements
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	28,085	27,660
Machinery and equipment
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	45,614	43,134
Construction in progress
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	$ 3,347	$ 1,372

Other Intangible Assets (Detail

Other Intangible Assets (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 02, 2017	Mar. 27, 2016	Apr. 02, 2017	Mar. 27, 2016
Finite-lived Intangible Assets [Roll Forward]
Net carrying amount at beginning of period			$ 36,933
Additions			10
Amortization	$ (2,099)	$ (2,361)	(6,509)	$ (7,323)
Net carrying amount at end of period	30,434		30,434
Non-compete agreements
Finite-lived Intangible Assets [Roll Forward]
Net carrying amount at beginning of period			2,193
Additions			0
Amortization			(663)
Net carrying amount at end of period	1,530		1,530
Customer relationships
Finite-lived Intangible Assets [Roll Forward]
Net carrying amount at beginning of period			32,625
Additions			0
Amortization			(5,540)
Net carrying amount at end of period	27,085		27,085
Trademarks/Tradenames
Finite-lived Intangible Assets [Roll Forward]
Net carrying amount at beginning of period			1,382
Additions			0
Amortization			(121)
Net carrying amount at end of period	1,261		1,261
Unpatented technology
Finite-lived Intangible Assets [Roll Forward]
Net carrying amount at beginning of period			733
Additions			0
Amortization			(184)
Net carrying amount at end of period	549		549
Patents
Finite-lived Intangible Assets [Roll Forward]
Net carrying amount at beginning of period			0
Additions			10
Amortization			(1)
Net carrying amount at end of period	$ 9		$ 9

Debt (Detail)

Debt (Detail) - USD ($)	9 Months Ended
	Apr. 02, 2017	Jan. 01, 2017	Jun. 27, 2016
Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity			$ 175,000,000
Additional borrowing capacity			$ 50,000,000
Available borrowings	$ 82,166,000
Capital leases	$ 502,000
Effective interest rate percent	3.65%
Letter of Credit
Debt Instrument [Line Items]
Letters of credit	$ 4,710,000
Standby Letters of Credit
Debt Instrument [Line Items]
Letters of credit		$ 3,114,000
Minimum | Revolving Credit Facility
Debt Instrument [Line Items]
Unused commitment fees	0.20%
Minimum | LIBOR | Revolving Credit Facility
Debt Instrument [Line Items]
Interest rate	1.00%
Minimum | Bank Base Rate | Revolving Credit Facility
Debt Instrument [Line Items]
Interest rate	0.00%
Maximum | Revolving Credit Facility
Debt Instrument [Line Items]
Unused commitment fees	0.50%
Maximum | LIBOR | Revolving Credit Facility
Debt Instrument [Line Items]
Interest rate	3.00%
Maximum | Bank Base Rate | Revolving Credit Facility
Debt Instrument [Line Items]
Interest rate	2.00%

Income Taxes (Detail)

Income Taxes (Detail) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended
	Apr. 02, 2017	Jan. 01, 2017	Mar. 27, 2016	Dec. 27, 2015	Apr. 02, 2017	Mar. 27, 2016
Income Tax Disclosure [Abstract]
Income tax expense (benefit) adjustment	$ (121)	$ 350		$ (536)
Effective income tax rate reconciliation percent	35.00%		35.00%		35.00%	35.00%

Defined Benefit Pension Plan (D

Defined Benefit Pension Plan (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Apr. 02, 2017	Mar. 27, 2016	Apr. 02, 2017	Mar. 27, 2016
Compensation and Retirement Disclosure [Abstract]
Periodic pension income (expense)	$ (18,000)	$ (7,000)	$ 55,000	$ 16,000
Pension plan contributions			$ 0	$ 0

Commitments and Contingencies (

Commitments and Contingencies (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jul. 03, 2016	Apr. 02, 2017	Oct. 03, 2016
Loss Contingencies [Line Items]
Environmental remediation accrual	$ 6,701	$ 6,197
Amount of financial liability included in other accrued expenses of current liability	584	583
Expected reimbursement accrual	1,606	$ 1,606
Goodwill write-off	$ 64,174
Financial Standby Letter of Credit
Loss Contingencies [Line Items]
Environmental remediation accrual			$ 3,114

Stock-Based Compensation - Expe

Stock-Based Compensation - Expense by Type of Share-Based Award (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 02, 2017	Mar. 27, 2016	Apr. 02, 2017	Mar. 27, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense (income)	$ (452)	$ (901)	$ 825	$ (32)
Fair value expense of stock option awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense (income)	48	(111)	145	206
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense (income)	447	(444)	1,251	123
Restricted and unrestricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense (income)	$ (947)	$ (346)	$ (571)	$ (361)

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				9 Months Ended
	Apr. 02, 2017	Jan. 01, 2017	Mar. 27, 2016	Dec. 27, 2015	Apr. 02, 2017	Mar. 27, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Reversal of previously recorded expense	$ 986
Options granted in period intrinsic value (in shares)					0
Stock options exercisable (in shares)	33,829				33,829
Number of shares vested (in shares)	0				20,011
Management
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted in period intrinsic value (in shares)			0			129,798
Options granted in period (in dollars per share)						$ 23.02
Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted in period intrinsic value (in shares)		16,905		14,234

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Options Outstanding and Exercisable (Detail) - shares	3 Months Ended	9 Months Ended
	Apr. 02, 2017	Apr. 02, 2017
Stock Options
Granted (in shares)		0
Vested (in shares)	0	(20,011)
Stock Options
Stock Options
Outstanding, beginning balance (in shares)		115,415
Granted (in shares)		0
Forfeited (in shares)		(10,630)
Vested (in shares)		0
Outstanding, ending balance (in shares)	104,785	104,785
Restricted stock units
Restricted Stock Units/Shares
Outstanding, beginning balance (in shares)		79,274
Granted (in shares)		79,889
Forfeited (in shares)		(6,029)
Vested (in shares)		(25,000)
Outstanding, ending balance (in shares)	128,134	128,134
Restricted shares
Restricted Stock Units/Shares
Outstanding, beginning balance (in shares)		52,651
Granted (in shares)		0
Forfeited (in shares)		(26,739)
Vested (in shares)		0
Outstanding, ending balance (in shares)	25,912	25,912

Earnings Per Share Data (Detail

Earnings Per Share Data (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 02, 2017	Mar. 27, 2016	Apr. 02, 2017	Mar. 27, 2016
Earnings Per Share [Abstract]
Net income (loss)	$ 429	$ 1,136	$ (370)	$ 3,798
Less net income allocated to contingently issuable participating securities	0	(9)	0	(36)
Net income (loss) available to common shareholders	$ 429	$ 1,127	$ (370)	$ 3,762
Weighted average shares outstanding – Basic (in shares)	9,818,789	9,789,807	9,804,908	9,784,544
Dilutive effect of stock options (in shares)	0	0	0	0
Weighted average shares outstanding – Diluted (in shares)	9,818,789	9,789,807	9,804,908	9,784,544
Income (loss) per share of common stock:
Net income per share: Basic (in dollars per share)	$ 0.04	$ 0.12	$ (0.04)	$ 0.38
Net income per share: Diluted (in dollars per share)	$ 0.04	$ 0.12	$ (0.04)	$ 0.38
Number of shares excluded from computation (in shares)	258,831	244,912	258,831	244,912

Business Segments (Detail)

Business Segments (Detail) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 02, 2017USD ($)	Mar. 27, 2016USD ($)	Apr. 02, 2017USD ($)segment	Mar. 27, 2016USD ($)	Jul. 03, 2016USD ($)
Segment Reporting Information [Line Items]
Number of segments | segment			2
Net sales	$ 95,410	$ 102,175	$ 293,176	$ 312,395
Gross profit	16,915	19,067	50,098	58,726
Selling and administrative expenses	12,862	13,727	39,198	41,691
Internal research and development expenses	424	561	1,308	1,512
Restructuring charges	0	(258)	0	2,102
Reversal of accrued contingent consideration				(1,530)
Operating income (loss)	1,530	2,676	3,083	7,628
Capital expenditures	2,259	1,964	4,829	5,227
Total assets	227,485	245,998	227,485	245,998	$ 245,998
Operating Segments | Manufacturing and Design Services
Segment Reporting Information [Line Items]
Net sales	61,084	68,187	193,468	209,730
Gross profit	6,690	7,771	22,341	25,056
Selling and administrative expenses	5,684	5,850	17,221	18,377
Internal research and development expenses	0	0	0	0
Restructuring charges		(258)		2,102
Reversal of accrued contingent consideration				(1,530)
Operating income (loss)	(722)	231	(250)	48
Capital expenditures	1,291	473	1,960	1,906
Total assets	149,989	167,277	149,989	167,277
Operating Segments | Engineered Components and Products
Segment Reporting Information [Line Items]
Net sales	37,053	37,566	106,995	116,297
Gross profit	10,225	11,296	27,757	33,670
Selling and administrative expenses	4,160	3,898	11,529	11,210
Internal research and development expenses	424	561	1,308	1,512
Restructuring charges		0		0
Reversal of accrued contingent consideration				0
Operating income (loss)	5,270	6,424	13,781	19,684
Capital expenditures	260	496	1,018	769
Total assets	68,066	69,627	68,066	69,627
Unallocated
Segment Reporting Information [Line Items]
Net sales	0	0	0	0
Gross profit	0	0	0	0
Selling and administrative expenses	3,018	3,979	10,448	12,104
Internal research and development expenses	0	0	0	0
Restructuring charges		0		0
Reversal of accrued contingent consideration				0
Operating income (loss)	(3,018)	(3,979)	(10,448)	(12,104)
Capital expenditures	708	995	1,851	2,552
Total assets	9,430	9,094	9,430	9,094
Eliminations
Segment Reporting Information [Line Items]
Net sales	(2,727)	(3,578)	(7,287)	(13,632)
Gross profit	0	0	0	0
Selling and administrative expenses	0	0	0	0
Internal research and development expenses	0	0	0	0
Restructuring charges		0		0
Reversal of accrued contingent consideration				0
Operating income (loss)	0	0	0	0
Capital expenditures	0	0	0	0
Total assets	$ 0	$ 0	$ 0	$ 0