Sparton (SPA) 10-Q 6 Feb 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Dec. 30, 2018	Feb. 04, 2019
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	Dec. 30, 2018
Document Fiscal Year Focus	2,019
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Common Stock, Shares Outstanding		9,834,723

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 30, 2018	Jul. 01, 2018
Current Assets:
Cash and cash equivalents	$ 1,385	$ 1,160
Accounts receivable, net of allowance for doubtful accounts of $146 and $169, respectively	47,280	60,454
Inventories and cost of contracts in progress, net	86,295	72,406
Legal settlements - insurance receivable	0	4,500
Prepaid expenses and other current assets	8,131	3,944
Total current assets	143,091	142,464
Property, plant and equipment, net	31,969	32,790
Goodwill	12,663	12,663
Other intangible assets, net	17,797	21,108
Deferred income taxes	14,786	17,646
Other non-current assets	4,416	5,331
Total assets	224,722	232,002
Current Liabilities:
Accounts payable	45,682	28,636
Accrued salaries	10,538	11,341
Accrued health benefits	1,246	947
Accrued legal settlements	0	5,500
Performance based payments on customer contracts	8,827	3,868
Advances from customers	5,775	5,949
Current portion of capital lease obligations	32	163
Other accrued expenses	7,805	10,718
Credit facility	64,100	0
Total current liabilities	144,005	67,122
Credit facility	0	84,500
Environmental remediation	4,598	4,866
Pension liability	633	690
Other non-current liabilities	0	1,220
Total liabilities	149,236	158,398
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	12,293
Capital in excess of par value	17,646	17,599
Retained earnings	46,497	44,713
Accumulated other comprehensive loss	(950)	(1,001)
Total shareholders’ equity	75,486	73,604
Total liabilities and shareholders’ equity	$ 224,722	$ 232,002

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 30, 2018	Jul. 01, 2018
Current Assets:
Accounts receivable, allowance for doubtful accounts	$ 146	$ 169
Shareholders’ Equity:
Preferred stock authorized (in shares)	200,000	200,000
Preferred stock issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 1.25	$ 1.25
Common stock authorized (in shares)	15,000,000	15,000,000
Common stock issued (in shares)	9,834,723	9,834,723
Common stock outstanding (in shares)	9,834,723	9,834,723

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 30, 2018	Dec. 31, 2017	Dec. 30, 2018	Dec. 31, 2017
Income Statement [Abstract]
Net sales	$ 105,248	$ 97,819	$ 194,710	$ 180,582
Cost of goods sold	82,176	76,070	153,999	142,909
Gross profit	23,072	21,749	40,711	37,673
Operating expense
Selling and administrative expenses	14,734	14,074	27,104	29,279
Internal research and development expenses	1,442	669	2,791	1,241
Amortization of intangible assets	1,641	1,893	3,311	3,816
Total operating expense	17,817	16,636	33,206	34,336
Operating income	5,255	5,113	7,505	3,337
Other expense
Interest expense, net	(1,790)	(1,507)	(3,739)	(2,773)
Other, net	(57)	13	(71)	3
Total other expense, net	(1,847)	(1,494)	(3,810)	(2,770)
Income before income taxes	3,408	3,619	3,695	567
Income taxes	1,491	11,703	1,566	10,635
Net income (loss)	$ 1,917	$ (8,084)	$ 2,129	$ (10,068)
Income (loss) per share of common stock:
Basic (in dollars per share)	$ 0.19	$ (0.82)	$ 0.22	$ (1.02)
Diluted (in dollars per share)	$ 0.19	$ (0.82)	$ 0.22	$ (1.02)
Weighted average shares of common stock outstanding:
Basic (in shares)	9,834,723	9,834,723	9,834,723	9,845,686
Diluted (in shares)	9,834,723	9,834,723	9,834,723	9,845,686

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 30, 2018	Dec. 31, 2017	Dec. 30, 2018	Dec. 31, 2017
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 1,917	$ (8,084)	$ 2,129	$ (10,068)
Other comprehensive income, net:
Pension amortization of unrecognized net actuarial loss, net of tax	20	22	51	57
Other comprehensive income, net	20	22	51	57
Comprehensive income (loss)	$ 1,937	$ (8,062)	$ 2,180	$ (10,011)

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY - 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	222		222
Net income (loss)	(10,068)			(10,068)
Comprehensive income, net	57				57
Ending balance (in shares) at Dec. 31, 2017		9,834,723
Ending balance at Dec. 31, 2017	72,079	$ 12,293	18,106	42,899	(1,219)
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	47		47
Net income (loss)	2,129			2,129
Comprehensive income, net	$ 51				51
Ending balance (in shares) at Dec. 30, 2018	9,834,723	9,834,723
Ending balance at Dec. 30, 2018	$ 75,486	$ 12,293	$ 17,646	$ 46,497	$ (950)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Dec. 30, 2018	Dec. 31, 2017
Cash Flows from Operating Activities:
Net income (loss)	$ 2,129	$ (10,068)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation	2,774	2,990
Amortization of intangible assets	3,311	3,816
Deferred income taxes	2,980	10,122
Stock-based compensation expense	47	221
Amortization of deferred financing costs	748	597
Loss on sale of property, plant and equipment, net	0	31
Changes in operating assets and liabilities:
Accounts receivable	5,397	(9,119)
Inventories and cost of contracts in progress	(4,088)	(5,175)
Prepaid expenses and other assets	3,370	341
Advance billings on customer contracts	(174)	0
Performance based payments on customer contracts	(4,934)	(1,749)
Accounts payable and accrued expenses	11,153	7,119
Net cash provided by (used in) operating activities	22,713	(874)
Cash Flows from Investing Activities:
Purchases of property, plant and equipment	(1,953)	(3,099)
Proceeds from sale of property, plant and equipment	0	14
Net cash used in investing activity	(1,953)	(3,085)
Cash Flows from Financing Activities:
Borrowings under credit facility	83,400	104,800
Repayments under credit facility	(103,800)	(100,400)
Payments under capital lease agreements	(135)	(136)
Payment of debt financing costs	0	(189)
Net cash provided by (used in) financing activities	(20,535)	4,075
Net increase in cash and cash equivalents	225	116
Cash and cash equivalents at beginning of period	1,160	988
Cash and cash equivalents at end of period	1,385	1,104
Supplemental disclosure of cash flow information:
Cash paid for interest	2,958	1,880
Cash paid for income taxes	$ 1,783	$ 603

Business and Basis of Presentat

Business and Basis of Presentation	6 Months Ended
	Dec. 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 and the first two quarters ended December 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. Pending Acquisition of the Company On December 11, 2018, Sparton Corporation (the "Company" or "Sparton") entered into an Agreement and Plan of Merger (the "Merger Agreement") with Striker Parent 2018, LLC ("Parent"), a Delaware limited liability company and affiliate of Cerberus Capital Management, L.P. ("Cerberus"), and Striker Merger Sub 2018, Inc. ("Merger Sub"), an Ohio corporation and a wholly owned subsidiary of Parent. Upon the terms and subject to the conditions set forth in the Merger Agreement, Merger Sub will be merged with and into the Company (the "Merger") with the Company surviving the Merger as a wholly owned subsidiary of Parent. At the effective time of the Merger (the "Effective Time"), each issued and outstanding share of common stock, par value $1.25 per share, of the Company (each, a "Share") (other than (i) Shares that immediately prior to the Effective Time are owned by Parent, Merger Sub or any other wholly owned subsidiary of Parent or owned by the Company or any wholly owned subsidiary of the Company (including as treasury stock) and (ii) Shares that are held by any record holder who is entitled to demand and properly demands payment of the fair cash value of such Shares as a dissenting shareholder pursuant to, and who complies in all respects with, the provisions of Section 1701.85 of the Ohio General Corporation Law) will be canceled and converted into the right to receive $18.50 per Share in cash, without interest. Consummation of the Merger is subject to the satisfaction or (to the extent permitted by law) waiver of specified closing conditions, including (i) the adoption of the Merger Agreement by the affirmative vote of the holders of at least two-thirds of all the outstanding Shares entitled to vote thereon at a special meeting of the Company's shareholders (the "Shareholders Meeting") to be held on March 1, 2019, as more fully described in the proxy statement of the Company, filed with the SEC on January 23, 2019 (the "Proxy Statement"), (ii) the absence of any law, executive order, ruling, injunction or other order ("Orders") that restrains, enjoins or otherwise prohibits the consummation of the Merger (the "No Order Condition"), (iii) the expiration or early termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the "HSR Act") which expired on January 22, 2019, (such condition, the "HSR Act Condition"), (iv) any agreement with a governmental authority not to consummate the Merger, which agreement shall have been entered into with the prior written consent of both the Company and Parent, shall have expired or been terminated (the "Governmental Authority Agreement Condition") and (v) other customary closing conditions, including the accuracy of each party's representations and warranties and each party's compliance with its covenants and agreements contained in the Merger Agreement (subject in the case of this clause (v) to certain qualifications as to materiality). Consummation of the Merger is not subject to Parent obtaining any financing for or related to the transactions contemplated by the Merger Agreement. The Company and Parent have agreed to cooperate with each other and use their respective reasonable best efforts to take or cause to be taken all actions, and do or cause to be done all things, reasonably necessary and proper on their part under the Merger and applicable law to consummate and make effective the Merger and the other transactions contemplated by the Merger Agreement as soon as practicable, including preparing and filing as promptly as practicable all documentation to effect all necessary notices, reports and other filings and to obtain as promptly as practicable all consents, registrations, approvals, permits and authorizations necessary or advisable to be obtained from any third party and/or any governmental authority in order to consummate the Merger or any of the other transactions contemplated by the Merger Agreement. Parent is not required as part of its reasonable best efforts obligation to divest any assets or businesses or engage in any other form of remediation or mitigation action (including holding assets or businesses separate or altering or restricting its business practices in any way), except for, if requested by a governmental authority, any non-sonobuoy-related assets, that individually or in the aggregate, are not material in any respect to the Company and its subsidiaries. The Merger Agreement includes customary representations and warranties of the Company, Parent and Merger Sub. Many of the representations made by the Company are subject to and qualified by a Material Adverse Effect standard (as defined in the Merger Agreement). The Company, Parent, and Merger Sub have also made certain covenants in the Merger Agreement, including (i) covenants by the Company regarding the operation of its business and that of its subsidiaries prior to the Effective Time, (ii) a customary non-solicitation covenant prohibiting the Company from soliciting, providing non-public information in response to, or entering into discussions or negotiations with respect to, proposals relating to alternative business combination transactions, except as permitted under the Merger Agreement, (iii) a financing covenant by Parent and Merger Sub to take all actions necessary, proper and advisable to obtain Parent's equity financing pursuant to an equity commitment letter between Parent and an affiliate of Cerberus under which such affiliate has committed to acquire securities of Parent in connection with funding Parent's obligations contemplated by the Merger Agreement, and (iv) a customary covenant in which the Company has agreed to use, and to cause its subsidiaries to use, commercially reasonable efforts to provide the cooperation reasonably requested by Parent or Merger Sub to assist Parent and Merger Sub in obtaining debt financing in connection with the Merger. The Merger Agreement may be terminated by each of the Company and Parent under certain circumstances, including (i) by either the Company or Parent if the Merger is not consummated by May 11, 2019 (subject to an extension to June 11, 2019 at the election of either Parent or the Company if (A) any of the No Order Condition (solely with respect to Orders entered pursuant to the HSR Act or any other applicable antitrust or competition law), the HSR Condition or the Governmental Authority Agreement Condition have not been satisfied by May 11, 2019 or (B) the Shareholders Meeting has not been called and held prior to May 11, 2019) (such date, as may be extended, the "Termination Date") or (ii) by Parent if, following the date of the Merger Agreement, the Company, any of its subsidiaries or ERAPSCO, a joint venture between subsidiaries of Ultra Electronics Holdings plc ("Ultra") and the Company ("ERAPSCO"), are suspended, debarred, excluded or proposed for debarment from doing business with any governmental entity or are declared non-responsible or ineligible for contracting with any governmental entity, subject to a cure period ending on the earlier of (A) sixty ( 60 ) days after Parent notifies the Company of its intent to so terminate and (B) the Termination Date. The Merger Agreement provides for certain other termination rights for both the Company and Parent, and further provides that, upon termination of the Merger Agreement under certain specified circumstances, (i) the Company will be required to (A) reimburse certain of Parent's expenses up to a maximum of $4,750 (the "Expenses") or (B) pay Parent a termination fee of $7,500 (net of any Expenses previously paid by the Company) or (ii) Parent will be required to pay the Company a termination fee of $9,250 (the "Parent Termination Fee"). Under the terms of a limited guarantee entered into by the Company and an affiliate of Cerberus (the "Limited Guarantee"), such affiliate of Cerberus has, subject to the terms of the Limited Guarantee, guaranteed Parent's obligation to, among other things, pay the Parent Termination Fee. The Company has called a special meeting on March 1, 2019, of holders of shares of common stock of the Company, at which time it is expected that the shareholders of record as of January 18, 2019, the record date for the special meeting, will vote on adoption of the Merger Agreement and the other related matters as described in the Proxy Statement. 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 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 United States Navy's (the "Navy") 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 corrective action 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	6 Months Ended
	Dec. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition Effective July 2, 2018, the Company 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. The Company did not restate prior period information in its Consolidated Balance Sheet, Consolidated Statement of Operations or Consolidated Statement of Cash Flows. Sparton's customers typically engage the Company to provide distinct products and services within the Company's two reportable segments. In its Manufacturing and Design Services ("MDS") segment, the Company performs services that include contract design, manufacturing, and aftermarket repair. In its Engineered Components & Products ("ECP") segment, the Company provides products and services including design, development and production of proprietary products for domestic and foreign defense markets as well as for commercial needs. The Company considers 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) the Company has determined the contract has commercial substance, and (v) the Company has determined collectability of substantially all due consideration. Sparton treats 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 the contract 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 the products outside the customer contract. Service based performance obligations are considered satisfied as services are rendered based on costs incurred. The amount of consideration the Company expects to receive is allocated on the basis of each performance obligation’s selling price, including the effect of 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, the Company receives progress based payments and deposits in advance of its satisfaction of performance obligations. The Company's 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 the Company's backlog. Of the $298,000 of backlog at December 30, 2018, $43,000 is expected to be recognized as revenue beyond the next 12 months. In its application of practical expedients, under ASC 606, the Company (i) treats contracts with similar characteristics as a portfolio, (ii) excludes implied financing costs from variable consideration, (iii) records service revenue based on its right to invoice, (iv) expenses the incremental cost of obtaining a contract for contracts less than twelve months, (v) excludes taxes collected on behalf of a government authority related to its revenue generating transactions from its calculation of transaction price, and (vi) accrues 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 Company's opening balance sheet as of July 2, 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 now are reflected as a liability rather than as a reduction of inventory and unbilled accounts receivable now are classified within prepaid expenses and other current assets rather than within accounts receivable. The net impact to retained earnings as a result of the adoption of ASC 606 was a decrease of $345 . Contract Assets and Contract Liabilities Contract assets consist of the Company's 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 the Company has not transferred goods or services to its customers. The Company expects to transfer all underlying goods and services to the customer within 12 months of establishing a contract liability. Contract assets and contract liabilities from revenue contracts with customers consist of the following amounts within the Company's respective consolidated balance sheet captions as of December 30, 2018 and the opening balance sheet date of July 2, 2018: As of December 30, July 2, Contract assets: Prepaid expenses and current assets $ 3,149 $ 6,891 Contract liabilities: Performance based payments on customer contracts 8,827 13,761 Advances from customers 5,764 5,899 Revenue of $15,536 that was included in the contract liabilities at July 2, 2018 was recognized in the first two fiscal quarters ended December 30, 2018 . Changes in the contract assets and contract liabilities account balances were attributed to regular business activity. The following tables summarize the impact of adopting ASC 606 on the Company's unaudited condensed consolidated financial statements at December 30, 2018 and for the second quarter ended and the first two fiscal quarters ended December 30, 2018 : Condensed Consolidated Balance Sheet December 30, 2018 As reported Net effect of adoption of ASC 606 Balances without adoption of ASC 606 Assets: Inventories and cost of contracts in progress, net $ 86,295 $ (837 ) $ 85,458 Prepaid expenses and other current assets 8,131 452 8,583 Total current assets 143,091 (385 ) 142,706 Deferred income taxes 14,786 (134 ) 14,652 Total assets 224,722 (519 ) 224,203 Liabilities and Shareholders’ Equity: Performance based payments on customer contracts 8,827 (1,316 ) 7,511 Other accrued expenses 7,805 95 7,900 Total current liabilities 144,005 (1,221 ) 142,784 Total liabilities 149,236 (1,221 ) 148,015 Retained earnings 46,497 702 47,199 Total shareholders’ equity 75,486 702 76,188 Total liabilities and shareholders’ equity 224,722 (519 ) 224,203 Condensed Consolidated Statements of Operations For the Second Quarter of Fiscal Year 2019 As reported Net effect of adoption of ASC 606 Excluding the effect of adoption of ASC 606 Net sales $ 105,248 $ (1,381 ) $ 103,867 Cost of goods sold 82,176 (754 ) 81,422 Gross profit 23,072 (627 ) 22,445 Operating income 5,255 (627 ) 4,628 Income before income taxes 3,408 (627 ) 2,781 Income taxes 1,491 (132 ) 1,359 Net income $ 1,917 $ (495 ) $ 1,422 For the First Two Quarters of Fiscal Year 2019 As reported Net effect of adoption of ASC 606 Excluding the effect of adoption of ASC 606 Net sales $ 194,710 $ 92 $ 194,802 Cost of goods sold 153,999 (360 ) 153,639 Gross profit 40,711 452 41,163 Operating income 7,505 452 7,957 Income before income taxes 3,695 452 4,147 Income taxes 1,566 95 1,661 Net income $ 2,129 $ 357 $ 2,486 Revenue by Category The following table reflects the Company's revenue disaggregated by major end-use market for the periods ended: For the Second Quarter of Fiscal Years For the First Two Quarters of Fiscal Years 2019 2018 2019 2018 ECP Segment U.S. sonobuoy $ 26,178 $ 29,026 $ 47,021 $ 45,993 Foreign sonobuoy 7,626 4,064 10,750 9,672 Engineering services 1,719 1,057 3,907 1,606 Rugged electronics 7,460 8,289 14,617 15,557 Total ECP Segment 42,983 42,436 76,295 72,828 MDS Segment Manufacturing 58,177 51,269 110,084 98,961 Engineering services 3,452 3,271 7,057 7,540 Other 636 843 1,274 1,253 Total MDS Segment 62,265 55,383 118,415 107,754 Total net sales $ 105,248 $ 97,819 $ 194,710 $ 180,582

Inventories and Cost of Contrac

Inventories and Cost of Contracts in Progress, net	6 Months Ended
	Dec. 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: December 30, July 1, Raw materials $ 62,563 $ 56,088 Work in process 15,307 16,138 Finished goods 8,425 8,784 Total inventory and cost of contracts in progress, gross 86,295 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 $ 86,295 $ 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	6 Months Ended
	Dec. 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: December 30, July 1, Land and land improvements $ 1,461 $ 1,439 Buildings and building improvements 28,215 28,160 Machinery and equipment 54,433 53,250 Construction in progress 2,084 1,391 Total property, plant and equipment 86,193 84,240 Less accumulated depreciation (54,224 ) (51,450 ) Property, plant and equipment, net $ 31,969 $ 32,790

Other Intangible Assets

Other Intangible Assets	6 Months Ended
	Dec. 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 $ (321 ) $ 359 Customer relationships 19,061 (2,831 ) 16,230 Trademarks/Tradenames 1,059 (81 ) 978 Unpatented technology and patents 308 (78 ) 230 Other intangible assets, net $ 21,108 $ (3,311 ) $ 17,797

Debt

Debt	6 Months Ended
	Dec. 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. Under the terms of Amendment 5, (i) the revolving credit facility was reduced from $125,000 to $120,000 , (ii) the Company's permitted Total Funded Debt to EBITDA Ratio, as defined, was increased to 4.5 x for the fiscal quarters ended April 1, 2018 and July 1, 2018, and beginning with the fiscal quarters ended September 30, 2018 and thereafter the Company's permitted Total Funded Debt to EBITDA Ratio was decreased to 3.0 x, and (iii) the interest rates on the revolving line of credit were increased, at the Company's option, to either LIBOR, plus 3.50% to 4.50% , or the bank’s base rate, as defined, plus 2.50% to 3.50% . In addition, Amendment 5 also fixed the commitment fees on the unused portion of the Credit Facility at 0.50% . The Credit Facility is secured by substantially all assets of the Company and its subsidiaries. As of December 30, 2018 , the Company had $49,821 available under the Credit Facility, with current borrowings under the facility of $64,100 , outstanding letters of credit of $6,047 and capital leases of $32 . As of December 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 3.50% to 4.50% , or at the bank’s base rate, as defined, plus 2.50% to 3.50% , based upon the Company’s Total Funded Debt/EBITDA Ratio, as defined. The effective interest rate on outstanding borrowings under the Credit Facility was 6.08% at December 30, 2018 . The Credit Facility includes representations, covenants and events of default that are customary for financing transactions of this nature. The Company was compliant with all such covenants at December 30, 2018 . As a result of the pending acquisition of the Company and the full repayment of the Credit Facility upon the effective date of the Merger, the Credit Facility has been classified as a current liability on the Company's consolidated balance sheet as of December 30, 2018.

Income Taxes

Income Taxes	6 Months Ended
	Dec. 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. The new federal tax rate was effective January 1, 2018. 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. 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 and state income tax rates, as well as the impact of federal, foreign and state tax deductions and credits. The Company's estimated annual effective income tax rate for the fiscal year 2019 was determined to be 21% . Income tax expense for the second quarter of fiscal 2019 included a $1,675 discrete tax expense item related the write off of a deferred tax asset on certain transaction costs associated with the Company's pending Merger and an $887 discrete tax credit item related to the completion of the Company's income tax returns for fiscal year 2018. For the first quarter of fiscal year 2018 , the Company 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. During the second quarter of fiscal year 2018, as a result of the Tax Act, the Company recorded income tax expense of $10,100 for a provisional reduction in its net deferred tax assets, $400 for a provisional liability related to unrepatriated earnings and profits of foreign subsidiaries and $307 to adjust the tax benefit recorded in the first quarter of fiscal year 2018 . In addition to the discrete income tax events of the Tax Acts in the second quarter of fiscal year 2018 , the Company recognized a discrete income tax benefit of $118 during the second quarter of fiscal year 2018 as a result of a return to provision true-up when filing its fiscal year 2017 tax return as well as amending certain tax returns from earlier tax years. 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 was completed before the end of the measurement period on December 22, 2018 .

Defined Benefit Pension Plan

Defined Benefit Pension Plan	6 Months Ended
	Dec. 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 $5 and net periodic pension income of $6 for the second quarter of fiscal years 2019 and 2018 , respectively. Net periodic pension expense was $7 and $13 for the first two quarters of fiscal years 2019 and 2018 , respectively. No contributions were made to the pension plan during either of the first two quarters of fiscal years 2019 and 2018 .

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Dec. 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 December 30, 2018 and July 1, 2018 , Sparton had accrued $5,240 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 its consolidated balance sheets in other accrued expenses. As of December 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 consolidated balance sheets and are considered collectible. At the end of each fiscal year, the Company is required to certify compliance with the United States Environmental Protection Agency's (“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 Road environmental remediation matter. The trust was established to alternately meet the EPA’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 its 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 merger (the "Sparton/Ultra Merger") contemplated by the now terminated Agreement and Plan of Merger, dated as of July 7, 2017 (the "Sparton/Ultra Merger Agreement"), by and among the Company, Ultra and Ultra Electronics Aneira, Inc. The lawsuits generally sought, among other things, to enjoin the defendants from proceeding with the shareholder vote on the Sparton/Ultra Merger Agreement at the special meeting or consummating the Sparton/Ultra 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 Sparton/Ultra Merger Agreement. The Company believed 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 the lead plaintiffs in the lawsuits and without prejudice as to all other shareholders. During the second quarter of fiscal year 2018, the Company and the plaintiffs agreed to settle the claim for $200 . The members of the Company's 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 Sparton/Ultra Merger Agreement, on March 16, 2018, the parties to the lawsuit stipulated to a dismissal of the lawsuit without prejudice. The Company was party to a dispute regarding a health claim by a former employee and her children (collectively the "plaintiffs") 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 would 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 settlement was paid in full in the second quarter of fiscal 2019. 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 fiscal year 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 that 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 that 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 the Company's 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 these 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 adverse effect on the Company’s financial position or results of operations.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Dec. 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 operations: For the Second Quarter of Fiscal Years For the First Two Quarters of Fiscal Years 2019 2018 2019 2018 Fair value expense of stock option awards $ 5 $ 4 $ 6 $ 43 Restricted stock units 55 7 41 178 Restricted and unrestricted stock — — — — Total stock-based compensation expense $ 60 $ 11 $ 47 $ 221 The following is a summary of activity for the first two quarters 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 (9,780 ) (21,093 ) — Outstanding at December 30, 2018 68,469 74,593 — As of December 30, 2018 , 56,630 stock options were exercisable, of which 17,120 vested in the first two quarters of fiscal year 2019 .

Earnings Per Share Data

Earnings Per Share Data	6 Months Ended
	Dec. 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 income/(loss) per share: For the Second Quarter of Fiscal Years For the First Two Quarters of Fiscal Years 2019 2018 2019 2018 Numerator: Net income (loss) $ 1,917 $ (8,084 ) $ 2,129 $ (10,068 ) Less net income allocated to contingently issuable participating securities — — — — Net income (loss) available to common shareholders $ 1,917 $ (8,084 ) $ 2,129 $ (10,068 ) Weighted average shares outstanding – Basic 9,834,723 9,834,723 9,834,723 9,845,686 Dilutive effect of stock options — — — — Weighted average shares outstanding – Diluted 9,834,723 9,834,723 9,834,723 9,845,686 Net income (loss) available to common shareholders per share: Basic $ 0.19 $ (0.82 ) $ 0.22 $ (1.02 ) Diluted 0.19 (0.82 ) $ 0.22 $ (1.02 ) There were no unvested restricted shares outstanding during the second quarter of fiscal year 2019, the first two quarters of fiscal year 2019, and the second quarter of fiscal year 2018. Net income available to common shareholders was not reduced by allocated earnings associated with unvested restricted shares of 10,963 for the first two quarters of fiscal year 2018 , as the unvested restricted shares did not participate in the net loss for the first two quarters of fiscal year 2018 . The computation of diluted net income per share for the second quarter of fiscal year 2019 and the first two quarters of fiscal 2019 excluded any potential shares of commons stock issuable upon the exercise of stock options as the option price exercises were in excess of the average share price for the respective periods. The computation of diluted net loss per share for the second quarter of fiscal year 2018 and the first two quarters of fiscal year 2018 excluded potential shares of common stock issuable upon exercise of stock options totaling 580 and 581 , respectively, as their inclusion would have had an anti-dilutive effect due to the net losses for these periods.

Business Segments

Business Segments	6 Months Ended
	Dec. 30, 2018
Segment Reporting [Abstract]
Business Segments	Business Segments As previously described, the Company has identified two reportable segments, MDS and 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 second quarter and first two quarters of fiscal years 2019 and 2018 were as follows: For the Second Quarter of Fiscal Year 2019 MDS ECP Unallocated Eliminations Total Gross sales $ 65,402 $ 42,983 $ — $ (3,137 ) $ 105,248 Gross profit 8,855 14,217 — — 23,072 Selling and administrative expenses (incl. depreciation) 5,758 3,497 5,479 — 14,734 Internal research and development expenses — 1,442 — — 1,442 Depreciation and amortization 1,916 485 604 — 3,005 Operating income 1,746 8,988 (5,479 ) — 5,255 Capital expenditures 580 547 175 — 1,302 Total assets at December 30, 2018 154,097 73,521 (2,896 ) — 224,722 For the Second Quarter of Fiscal Year 2018 MDS ECP Eliminations Total Gross sales $ 58,353 $ 42,468 $ — $ (3,002 ) $ 97,819 Gross profit 6,960 14,789 — — 21,749 Selling and administrative expenses (incl. depreciation) 5,614 3,570 4,890 — 14,074 Internal research and development expenses — 669 — — 669 Depreciation and amortization 2,247 535 567 — 3,349 Operating income (loss) (208 ) 10,211 (4,890 ) — 5,113 Capital expenditures 2,210 208 226 — 2,644 Total assets at July 1, 2018 147,860 71,558 12,584 — 232,002 For the First Two Quarters of Fiscal Year 2019 MDS ECP Eliminations Total Gross sales $ 124,696 $ 76,295 $ — $ (6,281 ) $ 194,710 Gross profit 16,064 24,647 — — 40,711 Selling and administrative expenses (incl. depreciation) 11,302 7,180 8,622 — 27,104 Internal research and development expenses — 2,791 — — 2,791 Depreciation and amortization 3,929 963 1,193 — 6,085 Operating income (loss) 2,036 14,091 (8,622 ) — 7,505 Capital expenditures 672 831 450 — 1,953 For the First Two Quarters of Fiscal Year 2018 MDS ECP Eliminations Total Gross sales $ 113,661 $ 72,867 $ — $ (5,946 ) $ 180,582 Gross profit 12,953 24,720 — — 37,673 Selling and administrative expenses (incl. depreciation) 11,514 7,150 10,615 — 29,279 Internal research and development expenses — 1,241 — — 1,241 Depreciation and amortization 4,575 1,096 1,135 — 6,806 Operating income (loss) (1,693 ) 15,645 (10,615 ) — 3,337 Capital expenditures 2,315 395 389 — 3,099

New Accounting Standards

New Accounting Standards	6 Months Ended
	Dec. 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)	6 Months Ended
	Dec. 30, 2018
Accounting Policies [Abstract]
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 the first two quarters ended December 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	Contract assets consist of the Company's 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 the Company has not transferred goods or services to its customers. The Company expects to transfer all underlying goods and services to the customer within 12 months of establishing a contract liability. Effective July 2, 2018, the Company 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. The Company did not restate prior period information in its Consolidated Balance Sheet, Consolidated Statement of Operations or Consolidated Statement of Cash Flows. Sparton's customers typically engage the Company to provide distinct products and services within the Company's two reportable segments. In its Manufacturing and Design Services ("MDS") segment, the Company performs services that include contract design, manufacturing, and aftermarket repair. In its Engineered Components & Products ("ECP") segment, the Company provides products and services including design, development and production of proprietary products for domestic and foreign defense markets as well as for commercial needs. The Company considers 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) the Company has determined the contract has commercial substance, and (v) the Company has determined collectability of substantially all due consideration. Sparton treats 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 the contract 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 the products outside the customer contract. Service based performance obligations are considered satisfied as services are rendered based on costs incurred. The amount of consideration the Company expects to receive is allocated on the basis of each performance obligation’s selling price, including the effect of 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, the Company receives progress based payments and deposits in advance of its satisfaction of performance obligations. The Company's 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 the Company's backlog. Of the $298,000 of backlog at December 30, 2018, $43,000 is expected to be recognized as revenue beyond the next 12 months. In its application of practical expedients, under ASC 606, the Company (i) treats contracts with similar characteristics as a portfolio, (ii) excludes implied financing costs from variable consideration, (iii) records service revenue based on its right to invoice, (iv) expenses the incremental cost of obtaining a contract for contracts less than twelve months, (v) excludes taxes collected on behalf of a government authority related to its revenue generating transactions from its calculation of transaction price, and (vi) accrues 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)	6 Months Ended
	Dec. 30, 2018
Revenue from Contract with Customer [Abstract]
Schedule of Impact of Adoption of ASC 606	The net impact of adoption of ASC 606 on the Company's opening balance sheet as of July 2, 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 The following tables summarize the impact of adopting ASC 606 on the Company's unaudited condensed consolidated financial statements at December 30, 2018 and for the second quarter ended and the first two fiscal quarters ended December 30, 2018 : Condensed Consolidated Balance Sheet December 30, 2018 As reported Net effect of adoption of ASC 606 Balances without adoption of ASC 606 Assets: Inventories and cost of contracts in progress, net $ 86,295 $ (837 ) $ 85,458 Prepaid expenses and other current assets 8,131 452 8,583 Total current assets 143,091 (385 ) 142,706 Deferred income taxes 14,786 (134 ) 14,652 Total assets 224,722 (519 ) 224,203 Liabilities and Shareholders’ Equity: Performance based payments on customer contracts 8,827 (1,316 ) 7,511 Other accrued expenses 7,805 95 7,900 Total current liabilities 144,005 (1,221 ) 142,784 Total liabilities 149,236 (1,221 ) 148,015 Retained earnings 46,497 702 47,199 Total shareholders’ equity 75,486 702 76,188 Total liabilities and shareholders’ equity 224,722 (519 ) 224,203 Condensed Consolidated Statements of Operations For the Second Quarter of Fiscal Year 2019 As reported Net effect of adoption of ASC 606 Excluding the effect of adoption of ASC 606 Net sales $ 105,248 $ (1,381 ) $ 103,867 Cost of goods sold 82,176 (754 ) 81,422 Gross profit 23,072 (627 ) 22,445 Operating income 5,255 (627 ) 4,628 Income before income taxes 3,408 (627 ) 2,781 Income taxes 1,491 (132 ) 1,359 Net income $ 1,917 $ (495 ) $ 1,422 For the First Two Quarters of Fiscal Year 2019 As reported Net effect of adoption of ASC 606 Excluding the effect of adoption of ASC 606 Net sales $ 194,710 $ 92 $ 194,802 Cost of goods sold 153,999 (360 ) 153,639 Gross profit 40,711 452 41,163 Operating income 7,505 452 7,957 Income before income taxes 3,695 452 4,147 Income taxes 1,566 95 1,661 Net income $ 2,129 $ 357 $ 2,486
Schedule of Contract Assets and Contract Liabilities	Contract assets and contract liabilities from revenue contracts with customers consist of the following amounts within the Company's respective consolidated balance sheet captions as of December 30, 2018 and the opening balance sheet date of July 2, 2018: As of December 30, July 2, Contract assets: Prepaid expenses and current assets $ 3,149 $ 6,891 Contract liabilities: Performance based payments on customer contracts 8,827 13,761 Advances from customers 5,764 5,899
Schedule of Revenue by Category	The following table reflects the Company's revenue disaggregated by major end-use market for the periods ended: For the Second Quarter of Fiscal Years For the First Two Quarters of Fiscal Years 2019 2018 2019 2018 ECP Segment U.S. sonobuoy $ 26,178 $ 29,026 $ 47,021 $ 45,993 Foreign sonobuoy 7,626 4,064 10,750 9,672 Engineering services 1,719 1,057 3,907 1,606 Rugged electronics 7,460 8,289 14,617 15,557 Total ECP Segment 42,983 42,436 76,295 72,828 MDS Segment Manufacturing 58,177 51,269 110,084 98,961 Engineering services 3,452 3,271 7,057 7,540 Other 636 843 1,274 1,253 Total MDS Segment 62,265 55,383 118,415 107,754 Total net sales $ 105,248 $ 97,819 $ 194,710 $ 180,582

Inventories and Cost of Contr_2

Inventories and Cost of Contracts in Progress, net (Tables)	6 Months Ended
	Dec. 30, 2018
Inventory Disclosure [Abstract]
Classifications of Inventory, Net of Interim Billings	The following are the major classifications of inventory, net of interim billings: December 30, July 1, Raw materials $ 62,563 $ 56,088 Work in process 15,307 16,138 Finished goods 8,425 8,784 Total inventory and cost of contracts in progress, gross 86,295 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 $ 86,295 $ 72,406

Property, Plant and Equipment_2

Property, Plant and Equipment, net (Tables)	6 Months Ended
	Dec. 30, 2018
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment, net	Property, plant and equipment, net consists of the following: December 30, July 1, Land and land improvements $ 1,461 $ 1,439 Buildings and building improvements 28,215 28,160 Machinery and equipment 54,433 53,250 Construction in progress 2,084 1,391 Total property, plant and equipment 86,193 84,240 Less accumulated depreciation (54,224 ) (51,450 ) Property, plant and equipment, net $ 31,969 $ 32,790

Other Intangible Assets (Tables

Other Intangible Assets (Tables)	6 Months Ended
	Dec. 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 $ (321 ) $ 359 Customer relationships 19,061 (2,831 ) 16,230 Trademarks/Tradenames 1,059 (81 ) 978 Unpatented technology and patents 308 (78 ) 230 Other intangible assets, net $ 21,108 $ (3,311 ) $ 17,797

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Dec. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule Stock-Based Compensation Expense	The following table shows stock-based compensation expense by type of share-based award included in the consolidated statements of operations: For the Second Quarter of Fiscal Years For the First Two Quarters of Fiscal Years 2019 2018 2019 2018 Fair value expense of stock option awards $ 5 $ 4 $ 6 $ 43 Restricted stock units 55 7 41 178 Restricted and unrestricted stock — — — — Total stock-based compensation expense $ 60 $ 11 $ 47 $ 221
Summary of Activity	The following is a summary of activity for the first two quarters 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 (9,780 ) (21,093 ) — Outstanding at December 30, 2018 68,469 74,593 —

Earnings Per Share Data (Tables

Earnings Per Share Data (Tables)	6 Months Ended
	Dec. 30, 2018
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 Second Quarter of Fiscal Years For the First Two Quarters of Fiscal Years 2019 2018 2019 2018 Numerator: Net income (loss) $ 1,917 $ (8,084 ) $ 2,129 $ (10,068 ) Less net income allocated to contingently issuable participating securities — — — — Net income (loss) available to common shareholders $ 1,917 $ (8,084 ) $ 2,129 $ (10,068 ) Weighted average shares outstanding – Basic 9,834,723 9,834,723 9,834,723 9,845,686 Dilutive effect of stock options — — — — Weighted average shares outstanding – Diluted 9,834,723 9,834,723 9,834,723 9,845,686 Net income (loss) available to common shareholders per share: Basic $ 0.19 $ (0.82 ) $ 0.22 $ (1.02 ) Diluted 0.19 (0.82 ) $ 0.22 $ (1.02 )

Business Segments (Tables)

Business Segments (Tables)	6 Months Ended
	Dec. 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 second quarter and first two quarters of fiscal years 2019 and 2018 were as follows: For the Second Quarter of Fiscal Year 2019 MDS ECP Unallocated Eliminations Total Gross sales $ 65,402 $ 42,983 $ — $ (3,137 ) $ 105,248 Gross profit 8,855 14,217 — — 23,072 Selling and administrative expenses (incl. depreciation) 5,758 3,497 5,479 — 14,734 Internal research and development expenses — 1,442 — — 1,442 Depreciation and amortization 1,916 485 604 — 3,005 Operating income 1,746 8,988 (5,479 ) — 5,255 Capital expenditures 580 547 175 — 1,302 Total assets at December 30, 2018 154,097 73,521 (2,896 ) — 224,722 For the Second Quarter of Fiscal Year 2018 MDS ECP Eliminations Total Gross sales $ 58,353 $ 42,468 $ — $ (3,002 ) $ 97,819 Gross profit 6,960 14,789 — — 21,749 Selling and administrative expenses (incl. depreciation) 5,614 3,570 4,890 — 14,074 Internal research and development expenses — 669 — — 669 Depreciation and amortization 2,247 535 567 — 3,349 Operating income (loss) (208 ) 10,211 (4,890 ) — 5,113 Capital expenditures 2,210 208 226 — 2,644 Total assets at July 1, 2018 147,860 71,558 12,584 — 232,002 For the First Two Quarters of Fiscal Year 2019 MDS ECP Eliminations Total Gross sales $ 124,696 $ 76,295 $ — $ (6,281 ) $ 194,710 Gross profit 16,064 24,647 — — 40,711 Selling and administrative expenses (incl. depreciation) 11,302 7,180 8,622 — 27,104 Internal research and development expenses — 2,791 — — 2,791 Depreciation and amortization 3,929 963 1,193 — 6,085 Operating income (loss) 2,036 14,091 (8,622 ) — 7,505 Capital expenditures 672 831 450 — 1,953 For the First Two Quarters of Fiscal Year 2018 MDS ECP Eliminations Total Gross sales $ 113,661 $ 72,867 $ — $ (5,946 ) $ 180,582 Gross profit 12,953 24,720 — — 37,673 Selling and administrative expenses (incl. depreciation) 11,514 7,150 10,615 — 29,279 Internal research and development expenses — 1,241 — — 1,241 Depreciation and amortization 4,575 1,096 1,135 — 6,806 Operating income (loss) (1,693 ) 15,645 (10,615 ) — 3,337 Capital expenditures 2,315 395 389 — 3,099

Business and Basis of Present_3

Business and Basis of Presentation (Details) - USD ($)	Dec. 11, 2018	Dec. 30, 2018	Jul. 01, 2018
Business Acquisition [Line Items]
Common stock, par value (in dollars per share)	$ 1.25	$ 1.25	$ 1.25
Merger Agreement
Business Acquisition [Line Items]
Cash consideration per share paid in event of agreement cancellation (in dollars per share)	$ 18.50
Termination notice, cure period	60 days
Reimbursement of merger costs	$ 4,750,000
Agreement termination fee	7,500,000
Merger Agreement | Striker Parent 2018, LLC
Business Acquisition [Line Items]
Agreement termination fee	$ 9,250,000

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 30, 2018USD ($)segment	Dec. 31, 2017segment	Dec. 30, 2018USD ($)segment	Dec. 31, 2017segment	Jul. 02, 2018USD ($)	Jul. 01, 2018USD ($)
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Number of segments | segment	2	2	2	2
Payment terms			30 days
Impact on retained earnings	$ (46,497)		$ (46,497)		$ (44,368)	$ (44,713)
Recognized revenue			15,536
Remaining performance obligation, amount	298,000		298,000
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	$ (702)		$ (702)		$ 345

Revenue Recognition - Performan

Revenue Recognition - Performance Obligation (Details) $ in Millions	Dec. 30, 2018USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, amount	$ 298
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-12-31
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, amount	$ 43
Expected timing of satisfaction period

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Impact of New Accounting Standard on Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 30, 2018	Jul. 02, 2018	Jul. 01, 2018
Assets
Accounts receivable, net of allowance for doubtful accounts	$ 47,280	$ 52,677	$ 60,454
Inventories and cost of contracts in progress, net	86,295	82,207	72,406
Prepaid expenses and other current assets	8,131	11,334	3,944
Deferred income taxes	14,786	17,780	17,646
Liabilities:
Performance based payments on customer contracts	8,827	13,761	3,868
Shareholders’ Equity:
Retained earnings	46,497	44,368	44,713
Before Adoption of ASC 606
Assets
Accounts receivable, net of allowance for doubtful accounts			60,454
Inventories and cost of contracts in progress, net	85,458		72,406
Prepaid expenses and other current assets	8,583		3,944
Deferred income taxes	14,652		17,646
Liabilities:
Performance based payments on customer contracts	7,511		3,868
Shareholders’ Equity:
Retained earnings	47,199		$ 44,713
Effect of adoption | Accounting Standards Update 2014-09
Assets
Accounts receivable, net of allowance for doubtful accounts		(7,777)
Inventories and cost of contracts in progress, net	(837)	9,801
Prepaid expenses and other current assets	452	7,390
Deferred income taxes	(134)	134
Liabilities:
Performance based payments on customer contracts	(1,316)	9,893
Shareholders’ Equity:
Retained earnings	$ 702	$ (345)

Revenue Recognition - Schedul_2

Revenue Recognition - Schedule of Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands	6 Months Ended
	Dec. 30, 2018	Jul. 01, 2018
Revenue from Contract with Customer [Abstract]
Description of timing	P12M
Contract assets:
Prepaid expenses and current assets	$ 3,149	$ 6,891
Contract liabilities:
Performance based payments on customer contracts	8,827	13,761
Advance from customers	$ 5,764	$ 5,899

Revenue Recognition - Summary o

Revenue Recognition - Summary of Impact of Adopting ASC 606 on Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 30, 2018	Jul. 02, 2018	Jul. 01, 2018	Dec. 31, 2017	Jul. 02, 2017
Assets
Inventories and cost of contracts in progress, net	$ 86,295	$ 82,207	$ 72,406
Prepaid expenses and other current assets	8,131	11,334	3,944
Total current assets	143,091		142,464
Deferred income taxes	14,786	17,780	17,646
Total assets	224,722		232,002	$ 232,002
Liabilities and Shareholders’ Equity:
Performance based payments on customer contracts	8,827	13,761	3,868
Other accrued expenses	7,805		10,718
Total current liabilities	144,005		67,122
Total liabilities	149,236		158,398
Retained earnings	46,497	44,368	44,713
Total shareholders’ equity	75,486		73,604	$ 72,079	$ 81,868
Total liabilities and shareholders’ equity	224,722		232,002
Net effect of adoption of ASC 606 | Accounting Standards Update 2014-09
Assets
Inventories and cost of contracts in progress, net	(837)	9,801
Prepaid expenses and other current assets	452	7,390
Total current assets	(385)
Deferred income taxes	(134)	134
Total assets	(519)
Liabilities and Shareholders’ Equity:
Performance based payments on customer contracts	(1,316)	9,893
Other accrued expenses	95
Total current liabilities	(1,221)
Total liabilities	(1,221)
Retained earnings	702	$ (345)
Total shareholders’ equity	702
Total liabilities and shareholders’ equity	(519)
Balances without adoption of ASC 606
Assets
Inventories and cost of contracts in progress, net	85,458		72,406
Prepaid expenses and other current assets	8,583		3,944
Total current assets	142,706
Deferred income taxes	14,652		17,646
Total assets	224,203
Liabilities and Shareholders’ Equity:
Performance based payments on customer contracts	7,511		3,868
Other accrued expenses	7,900
Total current liabilities	142,784
Total liabilities	148,015
Retained earnings	47,199		$ 44,713
Total shareholders’ equity	76,188
Total liabilities and shareholders’ equity	$ 224,203

Revenue Recognition - Summary_2

Revenue Recognition - Summary of Impact of Adopting ASC 606 on Statement of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 30, 2018	Dec. 31, 2017	Dec. 30, 2018	Dec. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	$ 105,248	$ 97,819	$ 194,710	$ 180,582
Cost of goods sold	82,176	76,070	153,999	142,909
Gross profit	23,072	21,749	40,711	37,673
Operating income	5,255	5,113	7,505	3,337
Income (loss) before income taxes	3,408	3,619	3,695	567
Income taxes	1,491	11,703	1,566	10,635
Net income (loss)	1,917	$ (8,084)	2,129	$ (10,068)
Effect of adoption | Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	(1,381)		92
Cost of goods sold	(754)		(360)
Gross profit	(627)		452
Operating income	(627)		452
Income (loss) before income taxes	(627)		452
Income taxes	(132)		95
Net income (loss)	(495)		357
Balances without adoption of ASC 606
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	103,867		194,802
Cost of goods sold	81,422		153,639
Gross profit	22,445		41,163
Operating income	4,628		7,957
Income (loss) before income taxes	2,781		4,147
Income taxes	1,359		1,661
Net income (loss)	$ 1,422		$ 2,486

Revenue Recognition - Schedul_3

Revenue Recognition - Schedule of Revenue by Category (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 30, 2018	Dec. 31, 2017	Dec. 30, 2018	Dec. 31, 2017
Disaggregation of Revenue [Line Items]
Total	$ 105,248	$ 97,819	$ 194,710	$ 180,582
ECP
Disaggregation of Revenue [Line Items]
Total	42,983	42,436	76,295	72,828
ECP | U.S. sonobuoy
Disaggregation of Revenue [Line Items]
Total	26,178	29,026	47,021	45,993
ECP | Foreign sonobuoy
Disaggregation of Revenue [Line Items]
Total	7,626	4,064	10,750	9,672
ECP | Engineering services
Disaggregation of Revenue [Line Items]
Total	1,719	1,057	3,907	1,606
ECP | Rugged electronics
Disaggregation of Revenue [Line Items]
Total	7,460	8,289	14,617	15,557
MDS
Disaggregation of Revenue [Line Items]
Total	62,265	55,383	118,415	107,754
MDS | Manufacturing
Disaggregation of Revenue [Line Items]
Total	58,177	51,269	110,084	98,961
MDS | Engineering services
Disaggregation of Revenue [Line Items]
Total	3,452	3,271	7,057	7,540
MDS | Other
Disaggregation of Revenue [Line Items]
Total	$ 636	$ 843	$ 1,274	$ 1,253

Inventories and Cost of Contr_3

Inventories and Cost of Contracts in Progress, net (Details) - USD ($) $ in Thousands	Dec. 30, 2018	Jul. 02, 2018	Jul. 01, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 62,563		$ 56,088
Work in process	15,307		16,138
Finished goods	8,425		8,784
Total inventory and cost of contracts in progress, gross	86,295		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	$ 86,295	$ 82,207	$ 72,406

Property, Plant and Equipment_3

Property, Plant and Equipment, net (Details) - USD ($) $ in Thousands	Dec. 30, 2018	Jul. 01, 2018
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	$ 86,193	$ 84,240
Less accumulated depreciation	(54,224)	(51,450)
Property, plant and equipment, net	31,969	32,790
Land and land improvements
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	1,461	1,439
Buildings and building improvements
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	28,215	28,160
Machinery and equipment
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	54,433	53,250
Construction in progress
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	$ 2,084	$ 1,391

Other Intangible Assets (Detail

Other Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 30, 2018	Dec. 31, 2017	Dec. 30, 2018	Dec. 31, 2017
Finite-lived Intangible Assets [Roll Forward]
Net carrying amount at beginning of period			$ 21,108
Amortization	$ (1,641)	$ (1,893)	(3,311)	$ (3,816)
Net carrying amount at end of period	17,797		17,797
Non-compete agreements
Finite-lived Intangible Assets [Roll Forward]
Net carrying amount at beginning of period			680
Amortization			(321)
Net carrying amount at end of period	359		359
Customer relationships
Finite-lived Intangible Assets [Roll Forward]
Net carrying amount at beginning of period			19,061
Amortization			(2,831)
Net carrying amount at end of period	16,230		16,230
Trademarks/Tradenames
Finite-lived Intangible Assets [Roll Forward]
Net carrying amount at beginning of period			1,059
Amortization			(81)
Net carrying amount at end of period	978		978
Unpatented technology and patents
Finite-lived Intangible Assets [Roll Forward]
Net carrying amount at beginning of period			308
Amortization			(78)
Net carrying amount at end of period	$ 230		$ 230

Debt (Details)

Debt (Details)	May 03, 2018USD ($)	Dec. 30, 2018USD ($)	Jul. 01, 2018	Sep. 11, 2014USD ($)
Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity (up to)	$ 120,000,000			$ 125,000,000
EBITDA ratio		3	4.5
Available borrowings		$ 49,821,000
Letters of credit		64,100,000
Capital leases		$ 32,000
Effective interest rate percent		6.08%
Revolving Credit Facility | Minimum | LIBOR
Debt Instrument [Line Items]
Interest rate	3.50%	3.50%
Revolving Credit Facility | Minimum | Bank Base Rate
Debt Instrument [Line Items]
Interest rate	2.50%	2.50%
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%	4.50%
Revolving Credit Facility | Maximum | Bank Base Rate
Debt Instrument [Line Items]
Interest rate	3.50%	3.50%
Letter of Credit
Debt Instrument [Line Items]
Letters of credit		$ 6,047,000

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017	Oct. 01, 2017	Dec. 30, 2018	Jul. 01, 2018
Income Tax Disclosure [Abstract]
Effective income tax rate	35.00%			21.00%	28.00%
Tax expense related to valuation reserve				$ 1,675
Tax credit				$ 887
Decrease in deferred tax asset		$ (10,100)
Provisional liability		400
Tax adjustment			$ 307
Income tax benefit for prior year filing and amendments		$ 118

Defined Benefit Pension Plan (D

Defined Benefit Pension Plan (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 30, 2018	Dec. 31, 2017	Dec. 30, 2018	Dec. 31, 2017
Retirement Benefits [Abstract]
Periodic pension (expense) income	$ 5,000	$ (6,000)	$ 7,000	$ 13,000
Pension plan contributions			$ 0	$ 0

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Thousands	1 Months Ended		3 Months Ended		6 Months Ended	12 Months Ended
	Aug. 31, 2018USD ($)	Jun. 30, 2018USD ($)	Jul. 01, 2018USD ($)	Dec. 31, 2017USD ($)	Dec. 30, 2018USD ($)claim	Jul. 01, 2018USD ($)	Oct. 31, 2018USD ($)
Loss Contingencies [Line Items]
Environmental remediation accrual			$ 5,508		$ 5,240	$ 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
Financial Standby Letter of Credit
Loss Contingencies [Line Items]
Line of credit borrowing capacity							$ 2,512
Insurance Claims | Personal Injury Claim
Loss Contingencies [Line Items]
Insurance deductibles and legal fees						$ 635

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 30, 2018	Dec. 31, 2017	Dec. 30, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 60	$ 11	$ 47	$ 221
Fair value expense of stock option awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	5	4	6	43
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	55	7	41	178
Restricted and unrestricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 0	$ 0	$ 0	$ 0

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Activity (Details)	6 Months Ended
	Dec. 30, 2018shares
Stock Options
Outstanding, beginning balance (in shares)	78,249
Granted (in shares)	0
Forfeited (in shares)	(9,780)
Outstanding, ending balance (in shares)	68,469
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)	6 Months Ended
	Dec. 30, 2018shares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock options exercisable (in shares)	56,630
Number of shares vested (in shares)	17,120

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		6 Months Ended
	Dec. 30, 2018	Dec. 31, 2017	Dec. 30, 2018	Dec. 31, 2017
Numerator:
Net income (loss)	$ 1,917	$ (8,084)	$ 2,129	$ (10,068)
Less net income allocated to contingently issuable participating securities	0	0	0	0
Net income (loss) available to common shareholders	$ 1,917	$ (8,084)	$ 2,129	$ (10,068)
Weighted average shares outstanding – Basic (in shares)	9,834,723	9,834,723	9,834,723	9,845,686
Dilutive effect of stock options (in shares)	0	0	0	0
Weighted average shares outstanding – Diluted (in shares)	9,834,723	9,834,723	9,834,723	9,845,686
Net income (loss) available to common shareholders per share:
Basic (in dollars per share)	$ 0.19	$ (0.82)	$ 0.22	$ (1.02)
Diluted (in dollars per share)	$ 0.19	$ (0.82)	$ 0.22	$ (1.02)

Earnings Per Share Data - Narra

Earnings Per Share Data - Narrative (Details) - shares	3 Months Ended		6 Months Ended
	Dec. 30, 2018	Dec. 31, 2017	Dec. 31, 2017	Jul. 01, 2018
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested shares outstanding (in shares)	0	0	0	0
Unvested restricted shares (in shares)			10,963
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares excluded from computation (in shares)	580	581

Business Segments (Details)

Business Segments (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 30, 2018USD ($)segment	Dec. 31, 2017USD ($)segment	Dec. 30, 2018USD ($)segment	Dec. 31, 2017USD ($)segment	Jul. 01, 2018USD ($)
Segment Reporting [Abstract]
Number of segments | segment	2	2	2	2
Segment Reporting Information [Line Items]
Gross sales	$ 105,248	$ 97,819	$ 194,710	$ 180,582
Gross profit	23,072	21,749	40,711	37,673
Selling and administrative expenses (incl. depreciation)	14,734	14,074	27,104	29,279
Internal research and development expenses	1,442	669	2,791	1,241
Depreciation and amortization	3,005	3,349	6,085	6,806
Operating income (loss)	5,255	5,113	7,505	3,337
Capital expenditures	1,302	2,644	1,953	3,099
Total assets	224,722	232,002	224,722	232,002	$ 232,002
MDS
Segment Reporting Information [Line Items]
Gross sales	62,265	55,383	118,415	107,754
ECP
Segment Reporting Information [Line Items]
Gross sales	42,983	42,436	76,295	72,828
Operating Segments | MDS
Segment Reporting Information [Line Items]
Gross sales	65,402	58,353	124,696	113,661
Gross profit	8,855	6,960	16,064	12,953
Selling and administrative expenses (incl. depreciation)	5,758	5,614	11,302	11,514
Internal research and development expenses	0	0	0	0
Depreciation and amortization	1,916	2,247	3,929	4,575
Operating income (loss)	1,746	(208)	2,036	(1,693)
Capital expenditures	580	2,210	672	2,315
Total assets	154,097	147,860	154,097	147,860
Operating Segments | ECP
Segment Reporting Information [Line Items]
Gross sales	42,983	42,468	76,295	72,867
Gross profit	14,217	14,789	24,647	24,720
Selling and administrative expenses (incl. depreciation)	3,497	3,570	7,180	7,150
Internal research and development expenses	1,442	669	2,791	1,241
Depreciation and amortization	485	535	963	1,096
Operating income (loss)	8,988	10,211	14,091	15,645
Capital expenditures	547	208	831	395
Total assets	73,521	71,558	73,521	71,558
Unallocated
Segment Reporting Information [Line Items]
Gross sales	0	0	0	0
Gross profit	0	0	0	0
Selling and administrative expenses (incl. depreciation)	5,479	4,890	8,622	10,615
Internal research and development expenses	0	0	0	0
Depreciation and amortization	604	567	1,193	1,135
Operating income (loss)	(5,479)	(4,890)	(8,622)	(10,615)
Capital expenditures	175	226	450	389
Total assets	(2,896)	12,584	(2,896)	12,584
Eliminations
Segment Reporting Information [Line Items]
Gross sales	(3,137)	(3,002)	(6,281)	(5,946)
Gross profit	0	0	0	0
Selling and administrative expenses (incl. depreciation)	0	0	0	0
Internal research and development expenses	0	0	0	0
Depreciation and amortization	0	0	0	0
Operating income (loss)	0	0	0	0
Capital expenditures	0	0	0	0
Total assets	$ 0	$ 0	$ 0	$ 0