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Financial Instruments
12 Months Ended
Jun. 30, 2018
Investments All Other Investments [Abstract]  
Financial Instruments

(15) Financial Instruments

 

Derivative Financial Instruments

 

The Company is exposed to credit losses in the event of non-performance by the financial institutions, who are the counterparties, on its future foreign currency contracts. The Company anticipates, however, that the financial institutions will be able to fully satisfy their obligations under the contracts. The Company does not obtain collateral to support financial instruments, but monitors the credit standing of the financial institutions.

 

Fair Value of Financial Instruments

 

The carrying values of all financial instruments classified as a current asset or current liability are deemed to approximate fair value because of the short maturity of these instruments. The fair value of the Company’s notes receivable and accrued expenses was based upon current rates offered for similar financial instruments to the Company. The Company believes that borrowings outstanding under its long-term bank loans and mortgage approximate fair value because such borrowings bear interest at current variable market rates.

  

Business and Credit Concentration

 

Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of trade receivables. The Company’s customers are dispersed across many industries and are located throughout the United States as well as in Canada, France, Germany, Malaysia, The Netherlands, Switzerland, the United Kingdom, and other countries. The Company estimates an allowance for doubtful accounts based upon the creditworthiness of its customers as well as general economic conditions. Consequently, an adverse change in those factors could affect the Company’s estimate of this allowance. At June 30, 2018, three customers approximated 28%, 19% and 13%, respectively, of net trade accounts receivable. At June 30, 2017, three customers approximated 32%, 20% and 15%, respectively, of net trade accounts receivable.

 

One customer accounted for 16% of net sales in fiscal 2018, 12% of net sales in fiscal 2017 and 14% of net sales in fiscal 2016. Another customer accounted for 11% of net sales in fiscal 2018, 11% of net sales in 2017 and 7% of net sales in 2016. No single product accounted for as much as 10% of net sales in fiscal 2018, 2017 or 2016.

 

During the fiscal years ended June 30, 2018, 2017 and 2016, approximately 61%, 62% and 56%, respectively, of the Company’s purchases came from Asia and approximately 15%, 17% and 22%, respectively, came from Europe.

 

The Company maintains operations located outside of the United States. Net assets located in Europe and Asia approximated $68,149 and $36,633, respectively at June 30, 2018. Net assets located in Europe and Asia approximated $68,235 and $50,641, respectively at June 30, 2017.