CONCENTRATIONS OF CREDIT RISK

12 Months Ended

Jun. 27, 2015

Risks And Uncertainties [Abstract]

CONCENTRATIONS OF CREDIT RISK

NOTE B.  CONCENTRATIONS OF CREDIT RISK

The Company monitors the creditworthiness of its customers.  Significant portions of the Company’s sales are to customers who place large orders for custom systems and customers whose activities are related to the electrical generation and oil and gas industries.  Some customers are located outside the United States.  The Company generally requires progress payments, but may extend credit to some customers.  The Company’s exposure to credit risk is affected to some degree by conditions within the electrical generation and oil and gas industries.  When sales are made to smaller international businesses, the Company generally requires progress payments or an appropriate guarantee of payment, such as a letter of credit from a financial institution.

The Company is not dependent upon any single customer or group of customers in either of its two primary business segments.  The custom-designed and project-specific nature of its business can result in significant fluctuations in revenue attributed to specific customers, industries, and reporting segments from period to period.