SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Jun. 29, 2019

Accounting Policies [Abstract]

New Accounting Pronouncements and Changes in Accounting Principles

The cumulative effect of change made to our July 1, 2018 consolidated balance sheet for the adoption of ASC 606 was as follows:

Consolidated Balance Sheet
	Impact of Adopting ASC 606
(Unaudited, in thousands)	Balance at June 30, 2018	Adjustments		Balance at July 1, 2018
ASSETS
Contract assets	—	11,906		11,906
Inventories	110,315	(11,210	)	99,105
Deferred income tax asset	7,882	(167	)	7,715
LIABILITIES AND SHAREHOLDERS’ EQUITY
Retained earnings	72,806	529		73,335

The following tables summarize the impacts of ASC 606 adoption on the Company’s consolidated balance sheets and consolidated statements of income (loss):

Consolidated Balance Sheet
As of June 29, 2019
	Impact of Adopting ASC 606
(Unaudited, in thousands)	As Reported	606 Adjustment		Balance without 606 Adoption
ASSETS
Contract assets	22,161	(22,161	)	—
Inventories	100,431	19,563		119,994
Deferred income tax asset	7,840	167		8,007
LIABILITIES AND SHAREHOLDERS’ EQUITY
Retained earnings	65,353	2,431		62,922

Consolidated Statement of Income (Loss)
	Impact of Adopting ASC 606
(Unaudited, in thousands)	Twelve Months Ended June 29, 2019
	As Reported			606 Adjustment		Balance without 606 Adoption
Net sales	$	464,044		$	10,254	$	453,790
Cost of sales	429,443			8,353		421,090
Gross profit	34,601			1,901		32,700
Net income	$	(7,982	)	$	1,901	$	(9,883	)

For the fiscal year ended June 29, 2019, the reported revenue and gross profit was approximately $464.0 million, and $34.6 million; respectively. This reflects the adoption of ASC 606 as revenue and gross profit would have been $10.3 million and $1.9 million less without ASC 606 adoption; respectively. This is primarily due to the change from 'point-in-time' to 'over-time' recognition as the standard requires. There was not a material tax impact for the twelve months ended June 29, 2019 from adopting ASC 606.

The Company applies the following practical expedients:

The Company elected to not disclose information about remaining performance obligations as its performance obligations generally have an expected durations of one year or less.