Sparton (SPA) 10-Q 8 Nov 18 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2018	Nov. 02, 2018
Document And Entity Information [Abstract]
Entity Registrant Name	Sparton Corp.
Entity Central Index Key	92,679
Current Fiscal Year End Date	--06-30
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2,019
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding		9,834,723

CONSOLIDATED BALANCE SHEETS (UN

CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)	Sep. 30, 2018	Jul. 01, 2018
Current Assets:
Cash and cash equivalents	$ 1,170,000	$ 1,160,000
Accounts receivable, net of allowance for doubtful accounts of $163 and $169, respectively	46,011,000	60,454,000
Inventories and cost of contracts in progress, net	91,230,000	72,406,000
Legal settlements - insurance receivable	4,500,000	4,500,000
Prepaid expenses and other current assets	6,823,000	3,944,000
Total current assets	149,734,000	142,464,000
Property, plant and equipment, net	32,024,000	32,790,000
Goodwill	12,663,000	12,663,000
Other intangible assets, net	19,438,000	21,108,000
Deferred income taxes	17,772,000	17,646,000
Other non-current assets	4,858,000	5,331,000
Total assets	236,489,000	232,002,000
Current Liabilities:
Accounts payable	39,393,000	28,636,000
Accrued salaries	8,305,000	11,341,000
Accrued health benefits	1,177,000	947,000
Accrued legal settlements	5,500,000	5,500,000
Performance based payments on customer contracts	13,307,000	3,868,000
Advances from customers	6,418,000	5,949,000
Current portion of capital lease obligations	100,000	163,000
Other accrued expenses	10,438,000	10,718,000
Total current liabilities	84,638,000	67,122,000
Credit facility	73,000,000	84,500,000
Environmental remediation	4,705,000	4,866,000
Pension liability	657,000	690,000
Other non-current liabilities	0	1,220,000
Total liabilities	163,000,000	158,398,000
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, 9,834,723 and 9,834,723 shares issued and outstanding, respectively	12,293,000	12,293,000
Capital in excess of par value	17,586,000	17,599,000
Retained earnings	44,580,000	44,713,000
Accumulated other comprehensive loss	(970,000)	(1,001,000)
Total shareholders’ equity	73,489,000	73,604,000
Total liabilities and shareholders’ equity	$ 236,489,000	$ 232,002,000

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2018	Jul. 01, 2018
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 163	$ 169
Preferred stock, shares authorized (in shares)	200,000	200,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 1.25	$ 1.25
Common stock, shares authorized (in shares)	15,000,000	15,000,000
Common stock, shares issued (in shares)	9,834,723	9,834,723
Common stock, shares outstanding (in shares)	9,834,723	9,834,723

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2018	Oct. 01, 2017
Income Statement [Abstract]
Net sales	$ 89,462	$ 82,763
Cost of goods sold	71,823	66,839
Gross profit	17,639	15,924
Operating expense
Selling and administrative expenses	12,370	15,205
Internal research and development expenses	1,349	572
Amortization of intangible assets	1,670	1,923
Total operating expense	15,389	17,700
Operating income (loss)	2,250	(1,776)
Other expense
Interest expense, net	(1,949)	(1,266)
Other, net	(14)	(10)
Total other expense, net	(1,963)	(1,276)
Income (loss) before income taxes	287	(3,052)
Income taxes	75	(1,068)
Net income (loss)	$ 212	$ (1,984)
Income (loss) per share of common stock:
Basic (in dollars per share)	$ 0.02	$ (0.20)
Diluted (in dollars per share)	$ 0.02	$ (0.20)
Weighted average shares of common stock outstanding:
Basic (in shares)	9,834,723	9,856,649
Diluted (in shares)	9,834,723	9,856,649

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2018	Oct. 01, 2017
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 212	$ (1,984)
Other comprehensive income, net:
Pension amortization of unrecognized net actuarial loss, net of tax	31	35
Other comprehensive income, net	31	35
Comprehensive income (loss)	$ 243	$ (1,949)

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (UNAUDITED) - USD ($) $ in Thousands	Total	Common Stock	Capital In Excess of Par Value	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Jul. 02, 2017		9,860,635
Beginning balance at Jul. 02, 2017	$ 81,868	$ 12,326	$ 17,851	$ 52,967	$ (1,276)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Forfeiture of restricted stock (in shares)		(25,912)
Forfeiture of restricted stock	0	$ (33)	33
Stock-based compensation	211		211
Net income (loss)	(1,984)			(1,984)
Comprehensive income, net	35				35
Ending balance (in shares) at Oct. 01, 2017		9,834,723
Ending balance at Oct. 01, 2017	80,130	$ 12,293	18,095	50,983	(1,241)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adjustment upon adoption of ASC 606	$ (345)			(345)
Beginning balance (in shares) at Jul. 01, 2018	9,834,723	9,834,723
Beginning balance at Jul. 01, 2018	$ 73,604	$ 12,293	17,599	44,713	(1,001)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	(13)		(13)
Net income (loss)	212			212
Comprehensive income, net	$ 31				31
Ending balance (in shares) at Sep. 30, 2018	9,834,723	9,834,723
Ending balance at Sep. 30, 2018	$ 73,489	$ 12,293	$ 17,586	$ 44,580	$ (970)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2018	Oct. 01, 2017
Cash Flows from Operating Activities:
Net income (loss)	$ 212	$ (1,984)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation	1,410	1,536
Amortization of intangible assets	1,670	1,923
Deferred income taxes	8	19
Stock-based compensation expense	(13)	211
Amortization of deferred financing costs	374	212
Changes in operating assets and liabilities:
Accounts receivable	6,666	(8,586)
Inventories and cost of contracts in progress	(9,023)	(9,734)
Prepaid expenses and other assets	4,589	(204)
Advance billings on customer contracts	469	0
Performance based payments on customer contracts	(454)	(1,749)
Accounts payable and accrued expenses	6,321	(4,873)
Net cash provided by (used in) operating activities	12,229	(23,229)
Cash Flows from Investing Activities:
Purchases of property, plant and equipment	(651)	(455)
Net cash used in investing activity	(651)	(455)
Cash Flows from Financing Activities:
Borrowings under credit facility	48,100	71,700
Repayments under credit facility	(59,600)	(48,600)
Payments under capital lease agreements	(68)	(68)
Payment of debt financing costs	0	(17)
Net cash provided by (used in) financing activities	(11,568)	23,015
Net increase (decrease) in cash and cash equivalents	10	(669)
Cash and cash equivalents at beginning of period	1,160	988
Cash and cash equivalents at end of period	1,170	319
Supplemental disclosure of cash flow information:
Cash paid for interest	1,505	950
Cash paid for income taxes	$ 22	$ 509

Business and Basis of Presentat

Business and Basis of Presentation	3 Months Ended
	Sep. 30, 2018
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 ended September 30, 2018 are not necessarily indicative of the results that may be expected for the year ending June 30, 2019 . The consolidated balance sheet at July 1, 2018 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 1, 2018 . The Company reports fiscal years on a 52-53 week year (5-4-4 basis) ending on the Sunday closest to June 30. Potential Sale of the Company On July 7, 2017, Sparton Corporation (the "Company" or "Sparton"), Ultra Electronics Holdings plc, (“Ultra”), and Ultra Electronics Aneira Inc., (“Merger Sub”) entered into an Agreement and Plan of Merger (the "Merger Agreement") that provided for Ultra to acquire the Company by merging Merger Sub into the Company (such transaction referred to as the "Merger"), subject to the terms and conditions set forth in the Merger Agreement. On October 5, 2017, at a special meeting of holders of shares of common stock of the Company, shareholders voted to adopt the Merger Agreement. Although the Merger Agreement had been adopted by the Company's shareholders, consummation of the Merger remained subject to other closing conditions, including the expiration or termination of the applicable waiting period (or any extension thereof) under the Hart-Scott-Rodino Antitrust Improvements Act (the “HSR Act”). On March 5, 2018, Sparton announced the termination by Sparton and Ultra of the Merger Agreement as a result of the staff of the United States Department of Justice (the “DOJ”) informing the parties that it intended to recommend that the DOJ block the Merger. Under a Merger Termination Agreement entered into by Sparton, Ultra and Merger Sub, the parties agreed to release each other from certain claims and liabilities arising out of or related to the Merger Agreement or the transactions contemplated therein or thereby, including any termination fees. The parties also agreed that certain agreements with confidentiality obligations will continue in full force and effect. Also on March 5, 2018, Sparton announced that, during the DOJ’s review of Sparton’s proposed Merger with Ultra, the United States Navy (the “Navy”) expressed the view that instead of the parties proceeding with the Merger, each of Sparton and Ultra should enhance its ability to independently develop, produce and sell sonobuoys and over time work toward the elimination of their use of Sparton’s and Ultra’s joint venture for such activities. Since that time, Sparton has been in communication with the Navy to better understand its expectations with respect to the timing, funding and terms of current and future sonobuoy indefinite delivery / indefinite quantity ("IDIQ") production contracts. As a result of the termination of the Merger Agreement, the Company announced that it would seek to re-engage with parties that previously expressed an interest in acquiring all or a part of Sparton and that are in a position to expeditiously proceed to effect such a transaction. There can be no assurance that any such process will result in the execution of a definitive agreement or the completion of a transaction. Q-125A Sonobuoy Bid Process On July 9, 2018, the Company announced the filing of a bid protest by ERAPSCO with the United States Government Accountability Office ("GAO") challenging the competitive range exclusion of ERAPSCO under the United States Navy ("Navy") Solicitation No. N00019-19-R-0002 for the GFY 19-23 AN/SSQ-125A (the “Q-125A”) production sonobuoy. The protest challenged on a number of bases the Navy's decision to exclude ERAPSCO from the solicitation process and requested that GAO restore ERAPSCO's ability to participate in the process. On August 30, 2018, the Navy issued a notice that it had taken corrective action to reopen the competitive range regarding the Q-125A production sonobuoy and include ERAPSCO in that competitive range. This allows ERAPSCO to again participate in the bid process. As a result of the Navy’s decision to restore ERAPSCO’s ability to participate in the bid process, the GAO dismissed the protest on September 4, 2018.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition Effective July 2, 2018, we adopted Accounting Standards Codification 606, “Revenue from Contracts with Customers” (“ASC 606”) using the modified retrospective method. As a result, the cumulative effect of adopting ASC 606 on contracts that were open on the date of adoption was recognized as an adjustment to the opening balance sheet at July 2, 2018. We did not restate prior period information in our Balance Sheet, Statement of Operations or Statement of Cash Flows. Our customers typically engage us to provide distinct products and services. In our Manufacturing and Design Segment, we perform services that include contract design, manufacturing, and aftermarket repair. In our Engineered Components & Products Segment, we provide products and services including design, development and production of proprietary products for domestic and foreign defense markets as well as for commercial needs. We consider contracts to exist once (i) the parties have approved the contract and have committed to perform their respective rights and obligations under the contract, (ii) the commitment of goods or services to be transferred has been established, (iii) the payment terms have been established, (iv) we have determined the contract has commercial substance, and (v) we have determined collectability of substantially all due consideration. We treat contracts with similar characteristics as a portfolio when the results are not materially different from treating contracts individually. The contract price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Performance Obligations Performance obligations are typically satisfied when or as products are shipped to customers. In certain contracts, transfer of control is recognized prior to shipment if it meets the requirements of a bill-and-hold arrangement or if the contract restricts Sparton’s use of the products, thereby eliminating the ability to obtain a benefit from them outside the customer contract. Service based performance obligations are considered satisfied as services are rendered based on costs incurred. The amount of consideration we expect to receive is allocated on the basis of each performance obligation’s selling price, including the effect variable consideration to the extent that revenue would likely not be reversed. The primary method used to estimate the standalone selling price is the contracted or list price. Typical payment terms are 30 days from invoicing and, in certain agreements, we receive progress based payments and deposits in advance of our satisfaction of performance obligations. Our warranties are assurance type which are not considered performance obligations and refund or return obligations are not material. The amount of the transaction price allocated to wholly unsatisfied (or partially unsatisfied) performance obligations is represented by our backlog. Of the $336 million of backlog at September 30, 2018, $50 million is expected to be recognized as revenue outside the next 12 months. In our application of practical expedients, under ASC 606, we (i) treat contracts with similar characteristics as a portfolio, (ii) exclude implied financing costs from variable consideration, (iii) record service revenue based on our right to invoice, (iv) expense the incremental cost of obtaining a contract for contracts less than twelve months, (v) exclude taxes collected on behalf of a government authority related to our revenue generating transactions from our calculation of transaction price, and (vi) accrue for expected shipping and handling expenses that are expected to be incurred after control is transferred to customers. The net impact of adoption of ASC 606 on the opening balance sheet for the quarter ended September 30, 2018 was as follows: Before Adoption of ASC 606 Effect of adoption After adoption of ASC 606 Assets: Accounts receivable, net of allowance for doubtful accounts $ 60,454 $ (7,777 ) $ 52,677 Inventories and cost of contracts in progress, net 72,406 9,801 82,207 Prepaid expenses and other current assets 3,944 7,390 11,334 Deferred income taxes 17,646 134 17,780 Liabilities: Performance based payments on customer contracts 3,868 9,893 13,761 Shareholders' equity: Retained earnings 44,713 (345 ) 44,368 Progress payments from customers related to inventory purchases are reflected as a liability rather than as a reduction of inventory and unbilled accounts receivable are reflected as prepaid and other current assets rather than as accounts receivable. The net impact to retained earnings as a result of adopting ASC 606 was a decrease of $345 . Contract Assets and Contract Liabilities Contract assets consist of our right to consideration for work performed or performance obligations completed which have not yet billed. Contract assets are invoiced and considered accounts receivable when the right to consideration no longer has any further contractual conditions. Contract liabilities consist of customer advances or progress payments for which we have not transferred goods or services to our customers. We expect to transfer all underlying goods and services to our customers within 12 months of establishing a contract liability. Contract assets and contract liabilities from revenue contracts with customers consists of the following as of: For the First Quarter of Fiscal Year 2019 Beginning of quarter End of quarter Contracts assets: Prepaid expenses and current assets $ 6,891 $ 2,202 Contracts liabilities: Performance based payments on customer contracts 13,761 13,307 Advance from customers 5,899 6,368 Revenue of $13.5 million that was included in the contract liabilities at the beginning of the period was recognized in the quarter ended September 30, 2018. Changes in the contract asset and contract liability account balances were attributed to regular business activity. The following tables summarize the impact of adopting ASC 606 on our unaudited condensed consolidated financial statements for the first quarter of fiscal year 2019: Condensed Consolidated Balance Sheet September 30, 2018 As reported Net effect of adoption of ASC 606 Balances without adoption of ASC 606 Assets: Current Assets: Inventories and cost of contracts in progress, net $ 91,230 $ (1,591 ) $ 89,639 Total current assets 149,734 (1,591 ) 148,143 Deferred income taxes 17,772 (134 ) 17,638 Total assets $ 236,489 $ (1,725 ) $ 234,764 Liabilities and Shareholders’ Equity: Performance based payments on customer contracts $ 13,307 $ (3,149 ) $ 10,158 Other accrued expenses 10,438 227 10,665 Total current liabilities 84,638 (2,922 ) 81,716 Total liabilities 163,000 (2,922 ) 160,078 Retained earnings 44,580 1,197 45,777 Total shareholders’ equity 73,489 1,197 74,686 Total liabilities and shareholders’ equity $ 236,489 $ (1,725 ) $ 234,764 Condensed Consolidated Statement of Operations For the First Quarter of Fiscal Year 2019 As reported Net effect of adoption of ASC 606 Balances without adoption of ASC 606 Net sales $ 89,462 $ 1,473 $ 90,935 Cost of goods sold 71,823 394 72,217 Gross profit 17,639 1,079 18,718 Operating income 2,250 1,079 3,329 Income before income taxes 287 1,079 1,366 Income taxes 75 227 302 Net income $ 212 $ 852 $ 1,064 Revenue by Category The following table reflects our revenue disaggregated by major end-use market for the periods ended: For the First Quarter of Fiscal Years 2019 2018 ECP Segment U.S. sonobuoy $ 20,843 $ 16,967 Foreign sonobuoy 3,124 5,608 Engineering services 2,188 549 Rugged electronics 7,157 7,268 Total ECP Segment 33,312 30,392 MDS Segment Manufacturing $ 51,907 $ 47,692 Engineering services 3,605 4,269 Other 638 410 Total MDS Segment 56,150 52,371 Total net sales $ 89,462 $ 82,763

Inventories and Cost of Contrac

Inventories and Cost of Contracts in Progress, net	3 Months Ended
	Sep. 30, 2018
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: September 30, July 1, Raw materials $ 59,482 $ 56,088 Work in process 20,482 16,138 Finished goods 11,266 8,784 Total inventory and cost of contracts in progress, gross 91,230 81,010 Inventory to which the U.S. government has title due to interim billings — (8,604 ) Total inventory and cost of contracts in progress, net $ 91,230 $ 72,406 In accordance with the application of ASC 606, progress payments from customers related to inventory purchases are reflected as liabilities rather than as a reduction of net inventories as presented on July 1, 2018.

Property, Plant and Equipment,

Property, Plant and Equipment, net	3 Months Ended
	Sep. 30, 2018
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment, net	Property, Plant and Equipment, net Property, plant and equipment, net consists of the following: September 30, July 1, Land and land improvements $ 1,439 $ 1,439 Buildings and building improvements 28,204 28,160 Machinery and equipment 53,390 53,250 Construction in progress 1,851 1,391 Total property, plant and equipment 84,884 84,240 Less accumulated depreciation (52,860 ) (51,450 ) Property, plant and equipment, net $ 32,024 $ 32,790

Other Intangible Assets

Other Intangible Assets	3 Months Ended
	Sep. 30, 2018
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 Amortization Net Carrying Value at Non-compete agreements $ 680 $ (161 ) $ 519 Customer relationships 19,061 (1,428 ) 17,633 Trademarks/Tradenames 1,059 (40 ) 1,019 Unpatented technology and patents 308 (41 ) 267 Other intangible assets, net $ 21,108 $ (1,670 ) $ 19,438

Debt

Debt	3 Months Ended
	Sep. 30, 2018
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”) which expires on September 11, 2019. On May 3, 2018, the Company entered into Amendment No.5 ("Amendment 5") to the Credit Facility. As a result of Amendment 5, the Company reduced the revolving credit facility from $125,000 to $120,000 , increased the permitted total funded debt to EBITDA ratio for fiscal quarters ending April 1, 2018 and July 1, 2018 and increased the interest rates to either LIBOR, plus 3.50% to 4.50% , or the bank’s base rate, as defined, plus 2.50% to 3.50% . The facility is secured by substantially all assets of the Company and its subsidiaries. As of September 30, 2018 , the Company had $43,194 available under the facility, reflecting borrowings under the facility of $73,000 , outstanding letters of credit of $3,706 and capital leases of $100 . As of September 30, 2018, 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 3.75% , or at the bank’s base rate, as defined, plus 0.00% to 2.75% , 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 6.90% at September 30, 2018 . As a condition of the Credit Facility, the Company is subject to certain customary covenants. The Company was compliant with all such covenants at September 30, 2018 .

Income Taxes

Income Taxes	3 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (“Tax Act”) was signed into law. The Tax Act made significant changes to U.S. tax laws including, but not limited to, lowering the federal income tax rate for U.S. corporations from a maximum of 35% to a fixed 21% , revising certain corporate income tax deductions, implementing a territorial tax system and imposing a repatriation tax on unrepatriated earnings of foreign subsidiaries. For corporations that report on a fiscal year basis, the Tax Act required the use of a full-year blended income tax rate based on the new and old rates. For the first quarter of fiscal year 2018 , we used an effective income tax rate of 35% as the Tax Act had not yet been enacted. Subsequent to the Tax Act, the Company used an annual effective income tax rate of 28% for fiscal year 2018 , exclusive of any discrete tax events. In the second quarter of fiscal year 2018 , the Company recognized the impact of the Tax Act on the first quarter of fiscal year 2018 . The Company's estimated annual effective income tax rate for the fiscal year 2019 was determined to be 21% . Income tax expense for the quarter ended September 30, 2018 included a $15 discrete tax item. 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, as well as the impact of federal, foreign and state tax deductions and credits. In December 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 118 which addresses how a company recognizes provisional amounts when a company does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete the accounting for certain tax effects of the Tax Act and provides for a one-year measurement period. The ultimate impact of the Tax Act may differ from the provisional amounts the Company has recorded due to additional analysis, changes in interpretations and assumptions the Company has made and additional regulatory guidance that may be issued. The accounting is expected to be completed at or before the end of the measurement period on December 22, 2018 .

Defined Benefit Pension Plan

Defined Benefit Pension Plan	3 Months Ended
	Sep. 30, 2018
Retirement Benefits [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 $2 and $18 for the first quarter of fiscal years 2019 and 2018 , respectively. No contributions were made to the pension plan during either of the first quarter of fiscal years 2019 and 2018 .

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies The Company is a party to an environmental remediation matter in Albuquerque, New Mexico ("Coors Road"). As of September 30, 2018 and July 1, 2018 , Sparton had accrued $5,347 and $5,508 respectively, as its estimate of the remaining minimum future discounted financial liability regarding this matter, of which $642 and $642 , respectively, was classified as a current liability and included on the balance sheets in other accrued expenses. As of September 30, 2018 and July 1, 2018 , 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. At the end of each fiscal year, the Company is required to certify compliance with Environmental Protection Agency (“EPA”) financial assurance requirements. If the Company is not in compliance, funds for environmental remediation costs must be set aside. As a result of the $9,197 of income tax expense related to the tax law changes from the Tax Act that the Company recorded in fiscal year 2018, the Company was not in compliance with such financial assurance requirements at the end of fiscal year 2018. In October 2018, the Company established the Sparton Corporation Standby Financial Assurance Trust and issued a standby letter of credit in the amount of $2,512 related to the Coors Rd environmental remediation liability. The trust was established to alternately meet the United States Environmental Protection Agency’s financial assurance requirements. See the Company’s Annual Report on Form 10-K for the fiscal year ended July 1, 2018 for further information regarding the Company's environmental matters. In addition to the foregoing, from time to time, the Company is involved in various legal proceedings relating to claims arising in the ordinary course of business. The Company and the members of our board of directors were named as defendants in four federal securities class actions purportedly brought on behalf of all holders of the Company’s common stock challenging the now terminated proposed Merger with Ultra. The lawsuits generally sought, among other things, to enjoin the defendants from proceeding with the shareholder vote on the Merger Agreement at the special meeting or consummating the Merger unless and until the Company disclosed the allegedly omitted information. The complaints also sought damages allegedly suffered by the plaintiffs as a result of the asserted omissions, as well as related attorneys’ fees and expenses. After discussions with counsel for the plaintiffs, the Company included certain additional disclosures in the proxy statement soliciting shareholder approval of the Merger Agreement. The Company believes the demands and complaints were without merit, there were substantial legal and factual defenses to the claims asserted, and the proxy statement disclosed all material information prior to the inclusion of the additional disclosures. The Company made the additional disclosures to avoid the expense and burden of litigation. On September 1, 2017, the court dismissed the lawsuits with prejudice with respect to lead plaintiffs in the lawsuits and without prejudice as to all other shareholders. During the second quarter of fiscal year 2018, the Company and plaintiffs agreed to settle the claim for $200 . The members of our board of directors were named as defendants in another class action suit filed in the United States District Court for the Northern District of Ohio on October 24, 2017, purportedly brought on behalf of all holders of the Company's common stock. This lawsuit sought damages allegedly suffered by plaintiffs as a result of violations by the members of the board of directors of their fiduciary duties. As a result of the termination of the Merger Agreement, on March 16, 2018, the parties to the lawsuit stipulated to a dismissal of the lawsuit without prejudice. The Company is party to a dispute regarding a health claim by a former employee and her children of one of the Company’s former businesses. The plaintiffs sought monetary damages related to their medical care and treatment, pain and suffering, and lost earnings. In fiscal year 2018, the Company accrued $635 for potential insurance deductibles and legal fees associated with this claim. In August 2018, a $5,500 settlement was reached between the plaintiffs, the Company, and the Company’s insurer, where the Company will pay $500 in settlement costs in excess of its $5,000 insurance coverage and $500 in insurance deductibles. The Company recorded this settlement in fiscal year 2018, and also recorded $594 of legal fees related to this dispute. The Company expects to pay the settlement in November 2018. The Company was the plaintiff in a lawsuit against the previous owner and other shareholders of Hunter Technology Corporation (“Hunter”), a business acquired by the Company, for breaches of the acquisition agreement and fraud. In June 2018, the Court ruled against the Company, and the Company was required to reimburse the defendant’s legal fees of $484 . The Company also incurred $115 of legal fees related to this matter. The Company recorded the liability in the fourth quarter of fiscal year 2018, and expensed its related legal fees during 2018. The Company is also involved in a dispute between a predecessor company of Hunter and the California State Board of Equalization (“SBOE”) regarding unpaid taxes for which the Company is liable. In the fourth quarter of fiscal year 2018, the Company accrued $500 as an estimated settlement of this liability. This dispute remains in negotiations with the SBOE and the Company. The Company is involved in a matter with Goodrich Corporation (“Goodrich”) in which Goodrich has alleged the Company owes indemnification to Goodrich under an agreement as a result of damages suffered by Goodrich in a lawsuit that Goodrich settled. The Company has disputed the indemnification claim and Goodrich has requested the parties mediate the dispute or move to trial. This dispute is covered by insurance, subject to normal reservation of rights by the insurance company, and the Company believes that a settlement, if any, would likely be within the Company’s coverage. No amounts have been accrued as it is not probable a loss has been incurred. The Company is not currently a party to any other legal proceedings, the adverse outcome of which, individually or in the aggregate, is expected to have a material adverse effect on our business, financial condition or results of operations. 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 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	3 Months Ended
	Sep. 30, 2018
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 by type of share-based award included in the consolidated statements of income: For the First Quarter of Fiscal Years 2019 2018 Fair value expense of stock option awards $ 1 $ 40 Restricted stock units (14 ) 171 Restricted and unrestricted stock — — Total stock-based compensation expense $ (13 ) $ 211 The following is a summary of activity for the first quarter of fiscal year 2019 related to the 2010 Plan: Stock Options Restricted stock units Restricted shares Outstanding at July 1, 2018 78,249 95,686 — Granted — — — Forfeited (7,130 ) (21,093 ) — Outstanding at September 30, 2018 71,119 74,593 — As of September 30, 2018 , 58,367 stock options were exercisable, of which 16,207 vested in the first quarter of fiscal year 2019 .

Earnings Per Share Data

Earnings Per Share Data	3 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Earnings Per Share Data	Earnings Per Share Data The following table sets forth the computation of basic and diluted net loss per share: For the First Quarter of Fiscal Years 2019 2018 Numerator: Net income (loss) $ 212 $ (1,984 ) Less net income allocated to contingently issuable participating securities — — Net income (loss) available to common shareholders $ 212 $ (1,984 ) Weighted average shares outstanding – Basic 9,834,723 9,856,649 Dilutive effect of stock options — — Weighted average shares outstanding – Diluted 9,834,723 9,856,649 Net income (loss) available to common shareholders per share: Basic $ 0.02 $ (0.20 ) Diluted 0.02 (0.20 ) Net income available to common shareholders was not reduced by allocated earnings associated with unvested restricted shares of 21,926 for the first quarter of fiscal year 2018 , as the unvested restricted shares did not participate in the net loss for the first quarter of fiscal year 2018 . There were no unvested restricted stock in first quarter of fiscal year 2019 . The computations of diluted income or loss per share excluded potential shares of common stock issuable upon exercise of stock options totaling 74,803 and 97,640 for the first quarter of fiscal years 2019 and 2018 , respectively, as they were anti-dilutive due to option exercise prices in excess of the average share prices for the first quarter of fiscal years 2019 and for 2018 , respectively. The computations of diluted income or loss per share also excluded potential shares of common stock issuable upon exercise of restricted stock units totaling 88,539 and 128,134 for the first quarter of fiscal years 2019 and 2018 , respectively.

Business Segments

Business Segments	3 Months Ended
	Sep. 30, 2018
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 first quarter of fiscal years 2019 and 2018 were as follows: For the First Quarter of Fiscal Year 2019 MDS ECP Unallocated Eliminations Total Gross sales $ 59,294 $ 33,312 $ — $ (3,144 ) $ 89,462 Gross profit 7,209 10,430 — — 17,639 Selling and administrative expenses (incl. depreciation) 5,544 3,683 3,143 — 12,370 Internal research and development expenses — 1,349 — — 1,349 Depreciation and amortization 2,013 478 589 — 3,080 Operating income 290 5,103 (3,143 ) — 2,250 Capital expenditures 92 284 275 — 651 Total assets at September 30, 2018 $ 150,719 $ 66,048 $ 19,722 $ — $ 236,489 For the First Quarter of Fiscal Year 2018 MDS ECP Eliminations Total Gross sales $ 55,308 $ 30,399 $ — $ (2,944 ) $ 82,763 Gross profit 5,993 9,931 — — 15,924 Selling and administrative expenses (incl. depreciation) 5,900 3,580 5,725 — 15,205 Internal research and development expenses — 572 — — 572 Depreciation and amortization 2,327 561 571 — 3,459 Operating income (loss) (1,485 ) 5,434 (5,725 ) — (1,776 ) Capital expenditures 105 187 163 — 455 Total assets at July 1, 2018 $ 147,860 $ 71,558 $ 12,584 $ — $ 232,002

New Accounting Standards

New Accounting Standards	3 Months Ended
	Sep. 30, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Standards	New Accounting Standards 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 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 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 February 2018, the FASB issued ASU 2018-02 (“ASU 2018-02”), Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. ASU 2018-02 permits the reclassification of certain “stranded tax effects” resulting from the recent U.S. tax reform from accumulated other comprehensive income to retained earnings. ASU 2018-02 is effective for all entities for fiscal years beginning after December 15, 2018, including interim periods within those years. Entities have the option to record the reclassification either retrospectively to each period in which the income tax effects of tax reform are recognized, or at the beginning of the annual or interim period in which the amendments are adopted. Early adoption is permitted, including adoption in an interim period. The Company is currently in the process of evaluating the impact of adoption on its consolidated financial statements.

Business and Basis of Present_2

Business and Basis of Presentation (Policies)	3 Months Ended
	Sep. 30, 2018
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 ended September 30, 2018 are not necessarily indicative of the results that may be expected for the year ending June 30, 2019 . The consolidated balance sheet at July 1, 2018 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 1, 2018 .
Fiscal Period	The Company reports fiscal years on a 52-53 week year (5-4-4 basis) ending on the Sunday closest to June 30.
Revenue Recognition	Effective July 2, 2018, we adopted Accounting Standards Codification 606, “Revenue from Contracts with Customers” (“ASC 606”) using the modified retrospective method. As a result, the cumulative effect of adopting ASC 606 on contracts that were open on the date of adoption was recognized as an adjustment to the opening balance sheet at July 2, 2018. We did not restate prior period information in our Balance Sheet, Statement of Operations or Statement of Cash Flows. Our customers typically engage us to provide distinct products and services. In our Manufacturing and Design Segment, we perform services that include contract design, manufacturing, and aftermarket repair. In our Engineered Components & Products Segment, we provide products and services including design, development and production of proprietary products for domestic and foreign defense markets as well as for commercial needs. We consider contracts to exist once (i) the parties have approved the contract and have committed to perform their respective rights and obligations under the contract, (ii) the commitment of goods or services to be transferred has been established, (iii) the payment terms have been established, (iv) we have determined the contract has commercial substance, and (v) we have determined collectability of substantially all due consideration. We treat contracts with similar characteristics as a portfolio when the results are not materially different from treating contracts individually. The contract price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Performance Obligations Performance obligations are typically satisfied when or as products are shipped to customers. In certain contracts, transfer of control is recognized prior to shipment if it meets the requirements of a bill-and-hold arrangement or if the contract restricts Sparton’s use of the products, thereby eliminating the ability to obtain a benefit from them outside the customer contract. Service based performance obligations are considered satisfied as services are rendered based on costs incurred. The amount of consideration we expect to receive is allocated on the basis of each performance obligation’s selling price, including the effect variable consideration to the extent that revenue would likely not be reversed. The primary method used to estimate the standalone selling price is the contracted or list price. Typical payment terms are 30 days from invoicing and, in certain agreements, we receive progress based payments and deposits in advance of our satisfaction of performance obligations. Our warranties are assurance type which are not considered performance obligations and refund or return obligations are not material. The amount of the transaction price allocated to wholly unsatisfied (or partially unsatisfied) performance obligations is represented by our backlog. Of the $336 million of backlog at September 30, 2018, $50 million is expected to be recognized as revenue outside the next 12 months. In our application of practical expedients, under ASC 606, we (i) treat contracts with similar characteristics as a portfolio, (ii) exclude implied financing costs from variable consideration, (iii) record service revenue based on our right to invoice, (iv) expense the incremental cost of obtaining a contract for contracts less than twelve months, (v) exclude taxes collected on behalf of a government authority related to our revenue generating transactions from our calculation of transaction price, and (vi) accrue for expected shipping and handling expenses that are expected to be incurred after control is transferred to customers.
New accounting standards	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 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 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 February 2018, the FASB issued ASU 2018-02 (“ASU 2018-02”), Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. ASU 2018-02 permits the reclassification of certain “stranded tax effects” resulting from the recent U.S. tax reform from accumulated other comprehensive income to retained earnings. ASU 2018-02 is effective for all entities for fiscal years beginning after December 15, 2018, including interim periods within those years. Entities have the option to record the reclassification either retrospectively to each period in which the income tax effects of tax reform are recognized, or at the beginning of the annual or interim period in which the amendments are adopted. Early adoption is permitted, including adoption in an interim period. The Company is currently in the process of evaluating the impact of adoption on its consolidated financial statements.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Schedule of Impact of New Accounting Standard to Opening Unaudited Consolidated Balance Sheets	The following tables summarize the impact of adopting ASC 606 on our unaudited condensed consolidated financial statements for the first quarter of fiscal year 2019: Condensed Consolidated Balance Sheet September 30, 2018 As reported Net effect of adoption of ASC 606 Balances without adoption of ASC 606 Assets: Current Assets: Inventories and cost of contracts in progress, net $ 91,230 $ (1,591 ) $ 89,639 Total current assets 149,734 (1,591 ) 148,143 Deferred income taxes 17,772 (134 ) 17,638 Total assets $ 236,489 $ (1,725 ) $ 234,764 Liabilities and Shareholders’ Equity: Performance based payments on customer contracts $ 13,307 $ (3,149 ) $ 10,158 Other accrued expenses 10,438 227 10,665 Total current liabilities 84,638 (2,922 ) 81,716 Total liabilities 163,000 (2,922 ) 160,078 Retained earnings 44,580 1,197 45,777 Total shareholders’ equity 73,489 1,197 74,686 Total liabilities and shareholders’ equity $ 236,489 $ (1,725 ) $ 234,764 Condensed Consolidated Statement of Operations For the First Quarter of Fiscal Year 2019 As reported Net effect of adoption of ASC 606 Balances without adoption of ASC 606 Net sales $ 89,462 $ 1,473 $ 90,935 Cost of goods sold 71,823 394 72,217 Gross profit 17,639 1,079 18,718 Operating income 2,250 1,079 3,329 Income before income taxes 287 1,079 1,366 Income taxes 75 227 302 Net income $ 212 $ 852 $ 1,064 The net impact of adoption of ASC 606 on the opening balance sheet for the quarter ended September 30, 2018 was as follows: Before Adoption of ASC 606 Effect of adoption After adoption of ASC 606 Assets: Accounts receivable, net of allowance for doubtful accounts $ 60,454 $ (7,777 ) $ 52,677 Inventories and cost of contracts in progress, net 72,406 9,801 82,207 Prepaid expenses and other current assets 3,944 7,390 11,334 Deferred income taxes 17,646 134 17,780 Liabilities: Performance based payments on customer contracts 3,868 9,893 13,761 Shareholders' equity: Retained earnings 44,713 (345 ) 44,368
Schedule of Contract Assets and Contract Liabilities from Revenue Contracts with Customers	Contract assets and contract liabilities from revenue contracts with customers consists of the following as of: For the First Quarter of Fiscal Year 2019 Beginning of quarter End of quarter Contracts assets: Prepaid expenses and current assets $ 6,891 $ 2,202 Contracts liabilities: Performance based payments on customer contracts 13,761 13,307 Advance from customers 5,899 6,368
Schedule of Revenue Disaggregated by Major End-use Market	The following table reflects our revenue disaggregated by major end-use market for the periods ended: For the First Quarter of Fiscal Years 2019 2018 ECP Segment U.S. sonobuoy $ 20,843 $ 16,967 Foreign sonobuoy 3,124 5,608 Engineering services 2,188 549 Rugged electronics 7,157 7,268 Total ECP Segment 33,312 30,392 MDS Segment Manufacturing $ 51,907 $ 47,692 Engineering services 3,605 4,269 Other 638 410 Total MDS Segment 56,150 52,371 Total net sales $ 89,462 $ 82,763

Inventories and Cost of Contr_2

Inventories and Cost of Contracts in Progress, net (Tables)	3 Months Ended
	Sep. 30, 2018
Inventory Disclosure [Abstract]
Classifications of Inventory, Net of Interim Billings	The following are the major classifications of inventory, net of interim billings: September 30, July 1, Raw materials $ 59,482 $ 56,088 Work in process 20,482 16,138 Finished goods 11,266 8,784 Total inventory and cost of contracts in progress, gross 91,230 81,010 Inventory to which the U.S. government has title due to interim billings — (8,604 ) Total inventory and cost of contracts in progress, net $ 91,230 $ 72,406

Property, Plant and Equipment_2

Property, Plant and Equipment, net (Tables)	3 Months Ended
	Sep. 30, 2018
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment, net	Property, plant and equipment, net consists of the following: September 30, July 1, Land and land improvements $ 1,439 $ 1,439 Buildings and building improvements 28,204 28,160 Machinery and equipment 53,390 53,250 Construction in progress 1,851 1,391 Total property, plant and equipment 84,884 84,240 Less accumulated depreciation (52,860 ) (51,450 ) Property, plant and equipment, net $ 32,024 $ 32,790

Other Intangible Assets (Tables

Other Intangible Assets (Tables)	3 Months Ended
	Sep. 30, 2018
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 Amortization Net Carrying Value at Non-compete agreements $ 680 $ (161 ) $ 519 Customer relationships 19,061 (1,428 ) 17,633 Trademarks/Tradenames 1,059 (40 ) 1,019 Unpatented technology and patents 308 (41 ) 267 Other intangible assets, net $ 21,108 $ (1,670 ) $ 19,438

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Sep. 30, 2018
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 by type of share-based award included in the consolidated statements of income: For the First Quarter of Fiscal Years 2019 2018 Fair value expense of stock option awards $ 1 $ 40 Restricted stock units (14 ) 171 Restricted and unrestricted stock — — Total stock-based compensation expense $ (13 ) $ 211
Summary of Options Outstanding and Exercisable	The following is a summary of activity for the first quarter of fiscal year 2019 related to the 2010 Plan: Stock Options Restricted stock units Restricted shares Outstanding at July 1, 2018 78,249 95,686 — Granted — — — Forfeited (7,130 ) (21,093 ) — Outstanding at September 30, 2018 71,119 74,593 —

Earnings Per Share Data (Tables

Earnings Per Share Data (Tables)	3 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Earnings Per Share	The following table sets forth the computation of basic and diluted net loss per share: For the First Quarter of Fiscal Years 2019 2018 Numerator: Net income (loss) $ 212 $ (1,984 ) Less net income allocated to contingently issuable participating securities — — Net income (loss) available to common shareholders $ 212 $ (1,984 ) Weighted average shares outstanding – Basic 9,834,723 9,856,649 Dilutive effect of stock options — — Weighted average shares outstanding – Diluted 9,834,723 9,856,649 Net income (loss) available to common shareholders per share: Basic $ 0.02 $ (0.20 ) Diluted 0.02 (0.20 )

Business Segments (Tables)

Business Segments (Tables)	3 Months Ended
	Sep. 30, 2018
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 first quarter of fiscal years 2019 and 2018 were as follows: For the First Quarter of Fiscal Year 2019 MDS ECP Unallocated Eliminations Total Gross sales $ 59,294 $ 33,312 $ — $ (3,144 ) $ 89,462 Gross profit 7,209 10,430 — — 17,639 Selling and administrative expenses (incl. depreciation) 5,544 3,683 3,143 — 12,370 Internal research and development expenses — 1,349 — — 1,349 Depreciation and amortization 2,013 478 589 — 3,080 Operating income 290 5,103 (3,143 ) — 2,250 Capital expenditures 92 284 275 — 651 Total assets at September 30, 2018 $ 150,719 $ 66,048 $ 19,722 $ — $ 236,489 For the First Quarter of Fiscal Year 2018 MDS ECP Eliminations Total Gross sales $ 55,308 $ 30,399 $ — $ (2,944 ) $ 82,763 Gross profit 5,993 9,931 — — 15,924 Selling and administrative expenses (incl. depreciation) 5,900 3,580 5,725 — 15,205 Internal research and development expenses — 572 — — 572 Depreciation and amortization 2,327 561 571 — 3,459 Operating income (loss) (1,485 ) 5,434 (5,725 ) — (1,776 ) Capital expenditures 105 187 163 — 455 Total assets at July 1, 2018 $ 147,860 $ 71,558 $ 12,584 $ — $ 232,002

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details) - USD ($)	3 Months Ended
	Sep. 30, 2018	Jul. 02, 2018	Jul. 01, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Payment terms	30 days
Recognized revenue	$ 13,500,000
Impact on retained earnings	(44,580,000)	$ (44,368,000)	$ (44,713,000)
Net effect of adoption of ASC 606 | Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Impact on retained earnings	$ (1,197,000)	$ 345,000

Revenue Recognition - Performan

Revenue Recognition - Performance Obligation (Details) $ in Millions	Sep. 30, 2018USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligation, amount	$ 336
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation, amount	$ 50

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Impact of New Accounting Standard to Opening Unaudited Consolidated Balance Sheets (Details) - USD ($)	Sep. 30, 2018	Jul. 02, 2018	Jul. 01, 2018
Assets
Accounts receivable, net of allowance for doubtful accounts	$ 46,011,000	$ 52,677,000	$ 60,454,000
Inventories and cost of contracts in progress, net	91,230,000	82,207,000	72,406,000
Prepaid expenses and other current assets	6,823,000	11,334,000	3,944,000
Deferred income taxes	17,772,000	17,780,000	17,646,000
Liabilities:
Performance based payments on customer contracts	13,307,000	13,761,000	3,868,000
Shareholders’ Equity:
Retained earnings	44,580,000	44,368,000	44,713,000
Before Adoption of ASC 606
Assets
Accounts receivable, net of allowance for doubtful accounts			60,454,000
Inventories and cost of contracts in progress, net	89,639,000		72,406,000
Prepaid expenses and other current assets			3,944,000
Deferred income taxes	17,638,000		17,646,000
Liabilities:
Performance based payments on customer contracts	10,158,000		3,868,000
Shareholders’ Equity:
Retained earnings	45,777,000		$ 44,713,000
Effect of adoption | Accounting Standards Update 2014-09
Assets
Accounts receivable, net of allowance for doubtful accounts		(7,777,000)
Inventories and cost of contracts in progress, net	(1,591,000)	9,801,000
Prepaid expenses and other current assets		7,390,000
Deferred income taxes	(134,000)	134,000
Liabilities:
Performance based payments on customer contracts	(3,149,000)	9,893,000
Shareholders’ Equity:
Retained earnings	$ 1,197,000	$ (345,000)

Revenue Recognition - Schedul_2

Revenue Recognition - Schedule of Contract Assets and Contract Liabilities from Revenue Contracts with Customers (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jul. 01, 2018
Contract assets:
Prepaid expenses and current assets	$ 2,202	$ 6,891
Contract liabilities:
Performance based payments on customer contracts	13,307	13,761
Advance from customers	$ 6,368	$ 5,899

Revenue Recognition - Summary o

Revenue Recognition - Summary of Impact of Adopting ASC 606 on our Unaudited Consolidated Balance Sheets (Details) - USD ($)	Sep. 30, 2018	Jul. 02, 2018	Jul. 01, 2018	Oct. 01, 2017	Jul. 02, 2017
Current Assets:
Inventories and cost of contracts in progress, net	$ 91,230,000	$ 82,207,000	$ 72,406,000
Total current assets	149,734,000		142,464,000
Deferred income taxes	17,772,000	17,780,000	17,646,000
Total assets	236,489,000		232,002,000	$ 232,002,000
Liabilities and Shareholders’ Equity:
Performance based payments on customer contracts	13,307,000	13,761,000	3,868,000
Other accrued expenses	10,438,000		10,718,000
Total current liabilities	84,638,000		67,122,000
Total liabilities	163,000,000		158,398,000
Retained earnings	44,580,000	44,368,000	44,713,000
Total shareholders’ equity	73,489,000		73,604,000	$ 80,130,000	$ 81,868,000
Total liabilities and shareholders’ equity	236,489,000		232,002,000
Net effect of adoption of ASC 606 | Accounting Standards Update 2014-09
Current Assets:
Inventories and cost of contracts in progress, net	(1,591,000)	9,801,000
Total current assets	(1,591,000)
Deferred income taxes	(134,000)	134,000
Total assets	(1,725,000)
Liabilities and Shareholders’ Equity:
Performance based payments on customer contracts	(3,149,000)	9,893,000
Other accrued expenses	227,000
Total current liabilities	(2,922,000)
Total liabilities	(2,922,000)
Retained earnings	1,197,000	$ (345,000)
Total shareholders’ equity	1,197,000
Total liabilities and shareholders’ equity	(1,725,000)
Balances without adoption of ASC 606
Current Assets:
Inventories and cost of contracts in progress, net	89,639,000		72,406,000
Total current assets	148,143,000
Deferred income taxes	17,638,000		17,646,000
Total assets	234,764,000
Liabilities and Shareholders’ Equity:
Performance based payments on customer contracts	10,158,000		3,868,000
Other accrued expenses	10,665,000
Total current liabilities	81,716,000
Total liabilities	160,078,000
Retained earnings	45,777,000		$ 44,713,000
Total shareholders’ equity	74,686,000
Total liabilities and shareholders’ equity	$ 234,764,000

Revenue Recognition - Summary_2

Revenue Recognition - Summary of Impact of Adopting ASC 606 on our Unaudited Consolidated Statement of Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2018	Oct. 01, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	$ 89,462	$ 82,763
Cost of goods sold	71,823	66,839
Gross profit	17,639	15,924
Operating income	2,250	(1,776)
Income (loss) before income taxes	287	(3,052)
Income taxes	75	(1,068)
Net income (loss)	212	$ (1,984)
Effect of adoption | Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	1,473
Cost of goods sold	394
Gross profit	1,079
Operating income	1,079
Income (loss) before income taxes	1,079
Income taxes	227
Net income (loss)	852
Before Adoption of ASC 606
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	90,935
Cost of goods sold	72,217
Gross profit	18,718
Operating income	3,329
Income (loss) before income taxes	1,366
Income taxes	302
Net income (loss)	$ 1,064

Revenue Recognition - Schedul_3

Revenue Recognition - Schedule of Revenue Disaggregated by Major End-use Market (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2018	Oct. 01, 2017
Disaggregation of Revenue [Line Items]
Total	$ 89,462	$ 82,763
ECP
Disaggregation of Revenue [Line Items]
Total	33,312	30,392
ECP | U.S. sonobuoy
Disaggregation of Revenue [Line Items]
Total	20,843	16,967
ECP | Foreign sonobuoy
Disaggregation of Revenue [Line Items]
Total	3,124	5,608
ECP | Engineering services
Disaggregation of Revenue [Line Items]
Total	2,188	549
ECP | Rugged electronics
Disaggregation of Revenue [Line Items]
Total	7,157	7,268
MDS
Disaggregation of Revenue [Line Items]
Total	56,150	52,371
MDS | Manufacturing
Disaggregation of Revenue [Line Items]
Total	51,907	47,692
MDS | Engineering services
Disaggregation of Revenue [Line Items]
Total	3,605	4,269
MDS | Other
Disaggregation of Revenue [Line Items]
Total	$ 638	$ 410

Inventories and Cost of Contr_3

Inventories and Cost of Contracts in Progress, net (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jul. 02, 2018	Jul. 01, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 59,482		$ 56,088
Work in process	20,482		16,138
Finished goods	11,266		8,784
Total inventory and cost of contracts in progress, gross	91,230		81,010
Inventory to which the U.S. government has title due to interim billings	0		(8,604)
Total inventory and cost of contracts in progress, net	$ 91,230	$ 82,207	$ 72,406

Property, Plant and Equipment_3

Property, Plant and Equipment, net (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jul. 01, 2018
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	$ 84,884	$ 84,240
Less accumulated depreciation	(52,860)	(51,450)
Property, plant and equipment, net	32,024	32,790
Land and land improvements
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	1,439	1,439
Buildings and building improvements
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	28,204	28,160
Machinery and equipment
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	53,390	53,250
Construction in progress
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	$ 1,851	$ 1,391

Other Intangible Assets (Detail

Other Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2018	Oct. 01, 2017
Finite-lived Intangible Assets [Roll Forward]
Net carrying amount at beginning of period	$ 21,108
Amortization	(1,670)	$ (1,923)
Net carrying amount at end of period	19,438
Non-compete agreements
Finite-lived Intangible Assets [Roll Forward]
Net carrying amount at beginning of period	680
Amortization	(161)
Net carrying amount at end of period	519
Customer relationships
Finite-lived Intangible Assets [Roll Forward]
Net carrying amount at beginning of period	19,061
Amortization	(1,428)
Net carrying amount at end of period	17,633
Trademarks/Tradenames
Finite-lived Intangible Assets [Roll Forward]
Net carrying amount at beginning of period	1,059
Amortization	(40)
Net carrying amount at end of period	1,019
Unpatented technology and patents
Finite-lived Intangible Assets [Roll Forward]
Net carrying amount at beginning of period	308
Amortization	(41)
Net carrying amount at end of period	$ 267

Debt (Details)

Debt (Details) - USD ($)	May 03, 2018	Sep. 30, 2018	Sep. 11, 2014
Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity (up to)	$ 120,000,000		$ 125,000,000
Available borrowings		$ 43,194,000
Letters of credit		73,000,000
Capital leases		$ 100,000
Effective interest rate percent		6.90%
Revolving Credit Facility | Minimum
Debt Instrument [Line Items]
Unused commitment fees		0.20%
Revolving Credit Facility | Minimum | LIBOR
Debt Instrument [Line Items]
Interest rate	3.50%	1.00%
Revolving Credit Facility | Minimum | Bank Base Rate
Debt Instrument [Line Items]
Interest rate	2.50%	0.00%
Revolving Credit Facility | Maximum
Debt Instrument [Line Items]
Unused commitment fees		0.50%
Revolving Credit Facility | Maximum | LIBOR
Debt Instrument [Line Items]
Interest rate	4.50%	3.75%
Revolving Credit Facility | Maximum | Bank Base Rate
Debt Instrument [Line Items]
Interest rate	3.50%	2.75%
Letter of Credit
Debt Instrument [Line Items]
Letters of credit		$ 3,706,000

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2018	Jul. 01, 2018
Income Tax Disclosure [Abstract]
Federal income tax rate		28.00%
Discrete tax item	$ 15

Defined Benefit Pension Plan (D

Defined Benefit Pension Plan (Details) - USD ($)	3 Months Ended
	Sep. 30, 2018	Oct. 01, 2017
Retirement Benefits [Abstract]
Periodic pension expense	$ 2,000	$ 18,000
Pension plan contributions	$ 0	$ 0

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Thousands	1 Months Ended		3 Months Ended			12 Months Ended
	Aug. 31, 2018USD ($)	Jun. 30, 2018USD ($)	Sep. 30, 2018USD ($)claim	Jul. 01, 2018USD ($)	Dec. 31, 2017USD ($)	Jul. 01, 2018USD ($)	Oct. 25, 2018USD ($)
Loss Contingencies [Line Items]
Environmental remediation accrual			$ 5,347	$ 5,508		$ 5,508
Amount of financial liability included in other accrued expenses of current liability			642	642		642
Expected reimbursement accrual			$ 1,606	1,606		1,606
Income tax expense related to tax law changes						9,197
Federal Securities Class Actions Regarding Merger with Ultra
Loss Contingencies [Line Items]
Number of class actions brought on (claim) | claim			4
Settlement amount					$ 200
Personal Injury Claim
Loss Contingencies [Line Items]
Settlement amount	$ 5,500
Settlement costs in excess of insurance coverage	500
Insurance coverage	5,000
Insurance deductibles	$ 500
Legal fees						594
Matters With Hunter Technology Corporation
Loss Contingencies [Line Items]
Settlement amount		$ 484
Legal fees		$ 115
Increase in liability				$ 500
Insurance Claims | Personal Injury Claim
Loss Contingencies [Line Items]
Insurance deductibles and legal fees						$ 635
Subsequent Event | Financial Standby Letter of Credit
Loss Contingencies [Line Items]
Line of credit borrowing capacity							$ 2,512

Stock-Based Compensation - Expe

Stock-Based Compensation - Expense by Type of Share-Based Award (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2018	Oct. 01, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ (13)	$ 211
Fair value expense of stock option awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	1	40
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	(14)	171
Restricted and unrestricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 0	$ 0

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Options Outstanding and Exercisable (Details)	3 Months Ended
	Sep. 30, 2018shares
Stock Options
Stock Options
Outstanding, beginning balance (in shares)	78,249
Granted (in shares)	0
Forfeited (in shares)	(7,130)
Outstanding, ending balance (in shares)	71,119
Restricted stock units
Restricted Stock Units/Shares
Outstanding, beginning balance (in shares)	95,686
Granted (in shares)	0
Forfeited (in shares)	(21,093)
Outstanding, ending balance (in shares)	74,593
Restricted shares
Restricted Stock Units/Shares
Outstanding, beginning balance (in shares)	0
Granted (in shares)	0
Forfeited (in shares)	0
Outstanding, ending balance (in shares)	0

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details)	3 Months Ended
	Sep. 30, 2018shares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock options exercisable (in shares)	58,367
Number of shares vested (in shares)	16,207

Earnings Per Share Data - Summa

Earnings Per Share Data - Summary of Computation of Basic and Diluted Net Loss (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Sep. 30, 2018	Oct. 01, 2017
Numerator:
Net income (loss)	$ 212	$ (1,984)
Less net income allocated to contingently issuable participating securities	0	0
Net income (loss) available to common shareholders	$ 212	$ (1,984)
Weighted average shares outstanding – Basic (in shares)	9,834,723	9,856,649
Dilutive effect of stock options (in shares)	0	0
Weighted average shares outstanding – Diluted (in shares)	9,834,723	9,856,649
Net income (loss) available to common shareholders per share:
Basic (in dollars per share)	$ 0.02	$ (0.20)
Diluted (in dollars per share)	$ 0.02	$ (0.20)

Earnings Per Share Data - Narra

Earnings Per Share Data - Narrative (Details) - shares	3 Months Ended
	Sep. 30, 2018	Oct. 01, 2017
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares excluded from computation (in shares)	74,803	97,640
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares excluded from computation (in shares)	88,539	128,134
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested restricted shares (in shares)	0	21,926

Business Segments (Details)

Business Segments (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2018USD ($)segment	Oct. 01, 2017USD ($)segment	Jul. 01, 2018USD ($)
Segment Reporting [Abstract]
Number of segments (segment) | segment	2	2
Segment Reporting Information [Line Items]
Net sales	$ 89,462	$ 82,763
Gross profit	17,639	15,924
Selling and administrative expenses (incl. depreciation)	12,370	15,205
Internal research and development expenses	1,349	572
Depreciation and amortization	3,080	3,459
Operating income (loss)	2,250	(1,776)
Capital expenditures	651	455
Total assets	236,489	232,002	$ 232,002
MDS
Segment Reporting Information [Line Items]
Net sales	56,150	52,371
ECP
Segment Reporting Information [Line Items]
Net sales	33,312	30,392
Operating Segments | MDS
Segment Reporting Information [Line Items]
Net sales	59,294	55,308
Gross profit	7,209	5,993
Selling and administrative expenses (incl. depreciation)	5,544	5,900
Internal research and development expenses	0	0
Depreciation and amortization	2,013	2,327
Operating income (loss)	290	(1,485)
Capital expenditures	92	105
Total assets	150,719	147,860
Operating Segments | ECP
Segment Reporting Information [Line Items]
Net sales	33,312	30,399
Gross profit	10,430	9,931
Selling and administrative expenses (incl. depreciation)	3,683	3,580
Internal research and development expenses	1,349	572
Depreciation and amortization	478	561
Operating income (loss)	5,103	5,434
Capital expenditures	284	187
Total assets	66,048	71,558
Unallocated
Segment Reporting Information [Line Items]
Net sales	0	0
Gross profit	0	0
Selling and administrative expenses (incl. depreciation)	3,143	5,725
Internal research and development expenses	0	0
Depreciation and amortization	589	571
Operating income (loss)	(3,143)	(5,725)
Capital expenditures	275	163
Total assets	19,722	12,584
Eliminations
Segment Reporting Information [Line Items]
Net sales	(3,144)	(2,944)
Gross profit	0	0
Selling and administrative expenses (incl. depreciation)	0	0
Internal research and development expenses	0	0
Depreciation and amortization	0	0
Operating income (loss)	0	0
Capital expenditures	0	0
Total assets	$ 0	$ 0