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Financial Instruments
12 Months Ended
Jun. 30, 2016
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.

 

Off-Balance Sheet Risk

 

Commercial letters of credit are issued by the Company during the ordinary course of business through major banks as requested by certain suppliers. The Company had open letters of credit of approximately $0 and $21 as of June 30, 2016 and 2015, respectively. The terms of these letters of credit are all less than one year. No material loss is anticipated due to non-performance by the counterparties to these agreements.

 

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, 2016, three customers approximated 34%, 20% and 11%, respectively, of net trade accounts receivable. At June 30, 2015, two customers approximated 40% and 21%, respectively, of net trade accounts receivable.

 

One customer accounted for 14% of net sales in fiscal 2016. One customer accounted for 13% of net sales in fiscal 2015. No single customer accounted for as much as 10% of net sales in fiscal 2014. No single product accounted for as much as 10% of net sales in fiscal 2016, 2015 or 2014.

 

During the fiscal years ended June 30, 2016, 2015 and 2014, approximately 56%, 65% and 64%, respectively, of the Company’s purchases came from Asia and approximately 22%, 12% and 14%, respectively, came from Europe.

 

The Company maintains operations located outside of the United States. Net assets located in Europe and Asia approximated $62,399 and $48,846, respectively at June 30, 2016. Net assets located in Europe and Asia approximated $57,161 and $47,097, respectively at June 30, 2015.