Organization and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jun. 28, 2020

Schedule of Quantification of Outstanding Mexican Peso Forward Contracts

The following table quantifies the outstanding Mexican peso forward contracts as of June 28, 2020 (thousands of dollars, except with respect to the average forward contractual exchange rate):

	Effective Dates	Notional Amount		Average Forward Contractual Exchange Rate		Fair Value
Buy MXP/Sell USD	July 15, 2020 - December 16, 2020	$	6,000		21.40	$	(480	)

Fair Market Value of All Outstanding Peso Forward Contracts

The fair market value of all outstanding Mexican peso forward contracts in the accompanying Consolidated Balance Sheets was as follows (thousands of dollars):

	June 28, 2020		June 30, 2019
Not designated as hedging instruments:
Other current liabilities:
Mexican peso forward contracts	$	480	$	—

Pre-Tax Effects of the Peso Forward Contracts

The pre-tax effects of the Mexican peso forward contracts on the accompanying Consolidated Statements of Loss and Comprehensive (Loss) Income consisted of the following (thousands of dollars):

	Other Income, net
	Years Ended
	June 28, 2020			June 30, 2019
Not Designated as Hedging Instruments:
Realized (loss) gain	$	(418	)	$	485
Unrealized (loss) gain	$	(480	)	$	39

Summary of Financial Assets and Liabilities at Fair Value on Recurring Basis

The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis as of June 28, 2020 and June 30, 2019 (thousands of dollars)

	June 28, 2020								June 30, 2019
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Rabbi Trust assets:
Stock index funds:
Small cap	$	251	$	—	$	—	$	251	$	276	$	—	$	—	$	276
Mid cap		284		—		—		284		293		—		—		293
Large cap		563		—		—		563		589		—		—		589
International		820		—		—		820		864		—		—		864
Fixed income funds		793		—		—		793		913		—		—		913
Cash and cash equivalents		—		224		—		224		—		3		—		3
Total assets at fair value	$	2,711	$	224	$	—	$	2,935	$	2,935	$	3	$	—	$	2,938
Liabilities:
Mexican peso forward contracts	$	—	$	480	$	—	$	—	$	—	$	—	$	—	$	—

Inventories

Inventories consisted of the following (thousands of dollars):

	June 28, 2020			June 30, 2019
Finished products	$	13,142		$	11,582
Work in process		11,815			10,529
Purchased materials		34,333			29,376
		59,290			51,487
Excess and obsolete reserve		(4,890	)		(4,225	)
Inventories, net	$	54,400		$	47,262

Activity Related to the Excess and Obsolete Inventory Reserve

The activity related to the excess and obsolete inventory reserve was as follows (thousands of dollars):

	Balance, Beginning of Year		Provision Charged to Expense		Amounts Written Off		Balance, End of Year
Year ended June 28, 2020	$	4,225	$	2,178	$	1,513	$	4,890
Year ended June 30, 2019	$	4,000	$	799	$	574	$	4,225

Property, Plant and Equipment, Useful Lives of Assets

Property, plant and equipment are stated at cost. Property, plant and equipment are depreciated on a straight-line basis over the estimated useful lives of the assets as follows:

Classification	Expected Useful Lives
Land improvements	20 years
Buildings and improvements	15 to 35 years
Machinery and equipment	3 to 15 years

Property, Plant and Equipment

Property, plant and equipment consisted of the following (thousands of dollars):

	June 28, 2020			June 30, 2019
Land and improvements	$	5,002		$	5,679
Buildings and improvements		33,179			35,742
Machinery and equipment		228,035			246,000
		266,216			287,421
Less: accumulated depreciation		(161,068	)		(169,301	)
	$	105,148		$	118,120

Schedule of Depreciation Expenses

Depreciation expense was as follows for the periods indicated (thousands of dollars):

Fiscal Year	Depreciation Expense
2020	$	19,329
2019	$	17,159

Schedule of Operating Lease Asset and Obligation Included in Condensed Consolidated Balance Sheet

The operating lease asset and obligation related to our El Paso warehouse lease included in the accompanying Condensed Consolidated Balance Sheet are presented below (thousands of dollars):

	June 28, 2020
Right-of-Use Asset Under Operating Lease:
Other Long-Term Assets	$	3,753
Lease Obligation Under Operating Lease:
Current Liabilities: Accrued Liabilities: Other	$	354
Other Long-Term Liabilities		3,399
	$	3,753

Schedule of Future Minimum Lease Payments Under Non-Cancelable Lease Including Options to Extend

Future minimum lease payments, by our fiscal year, including options to extend that are reasonably certain to be exercised, under the non-cancelable lease are as follows as of June 28, 2020 (thousands of dollars):

2021	$	473
2022		484
2023		497
2024		509
Thereafter		2,356
Total Future Minimum Lease Payments		4,319
Less: Imputed Interest		(566	)
Total Lease Obligations	$	3,753

Schedule of Future Minimum Lease Payments Under Non-Cancelable Lease Excluding Options to Extend Prior to Adoption

Future minimum lease payments, by our fiscal year, excluding options to extend that are reasonably certain to be exercised, prior to the adoption of the new accounting guidance on leases were as follows as of June 30, 2019 (thousands of dollars):

2020	$	539
2021		504
2022		495
2023		498
2024		168
Thereafter		—
Total Future Minimum Lease Payments	$	2,204

Schedule of Cash Flow Information Related to Operating Lease

Cash flow information related to the operating lease is shown below (thousands of dollars):

	Year Ended
	June 28, 2020
Operating Cash Flows:
Cash Paid Related to Operating Lease Obligation	$	461
Non-Cash Activity:
Right-of-Use Asset Obtained in Exchange for Operating Lease Obligation	$	—

Schedule of Weighted Average Lease Term and Discount Rate for Operating Lease

The weighted average lease term and discount rate for the El Paso, Texas operating lease are shown below:

	June 28, 2020
Weighted Average Remaining Lease Term (in years)		8.3
Weighted Average Discount Rate		3.3	%

Inventory Purchase from Major Suppliers

Supplier Concentrations: The following inventory purchases were made from major suppliers during each fiscal year noted

Fiscal Year	Percentage of Inventory Purchases			Number of Suppliers
2020		39	%		7
2019		39	%		7

Contract Liability Balances

The activity related to contract liability balances during the year ended June 28, 2020 was as follows (thousands of dollars):

Balance, June 30, 2019	$	932
Discounts Recorded as a Reduction in Sales		1,048
Payments of Discounts to Customers		(915	)
Other		(692	)
Balance, June 28, 2020	$	373

Summary of Other Income (Expense), Net

The impact of these items for the periods presented was as follows (thousands of dollars):

	Years Ended
	June 28, 2020			June 30, 2019
Foreign currency transaction gain (loss)	$	1,982		$	(397	)
Rabbi Trust (loss) gain		(2	)		146
Unrealized (loss) gain on Mexican peso forward contracts		(480	)		39
Realized (loss) gain on Mexican peso forward contracts		(418	)		485
Pension and postretirement plans cost		(469	)		(689	)
Other		1,055			79
	$	1,668		$	(337	)

Changes in Warranty Reserve

Changes in the warranty reserve were as follows (thousands of dollars):

	Balance, Beginning of Year		Provision Charged to Expense		Payments		Balance, End of Year
Year ended June 28, 2020	$	7,900	$	823	$	223	$	8,500
Year ended June 30, 2019	$	7,800	$	559	$	459	$	7,900

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss: Accumulated other comprehensive loss (“AOCL”) was comprised of the following (thousands of dollars):

	June 28, 2020		June 30, 2019
Unrecognized pension and postretirement benefit    liabilities, net of tax	$	1,977	$	2,251
Foreign currency translation, net of tax		20,136		16,317
	$	22,113	$	18,568

Summary of Changes in Accumulated Other Comprehensive Loss

The following tables summarize the changes in AOCL for the years ended June 28, 2020 and June 30, 2019 (thousands of dollars):

	Year Ended June 28, 2020
	Foreign Currency Translation Adjustments			Retirement and Postretirement Plans			Total
Balance June 30, 2019	$	16,317		$	2,251		$	18,568
Other comprehensive loss before reclassifications		6,153			25			6,178
Income Tax		(357	)		(6	)		(363	)
Net other comprehensive loss before    Reclassifications		5,796			19			5,815
Reclassifications:
Prior service credits (A)		—			29			29
Actuarial losses (A)		—			(412	)		(412	)
Total reclassifications before tax		—			(383	)		(383	)
Income Tax		—			90			90
Net reclassifications		—			(293	)		(293	)
Other comprehensive loss		5,796			(274	)		5,522
Other comprehensive loss attributable
to non-controlling interest		1,977			—			1,977
Balance June 28, 2020	$	20,136		$	1,977		$	22,113

	Year Ended June 30, 2019
	Foreign Currency Translation Adjustments			Retirement and Postretirement Plans			Total
Balance July 1, 2018	$	15,291		$	18,148		$	33,439
Other comprehensive loss before reclassifications		545			170			715
Income Tax		10			(40	)		(30	)
Net other comprehensive loss before    Reclassifications		555			130			685
Reclassifications:
Pension termination settlements (A)		—			(25,668	)		(25,668	)
Prior service credits (A)		—			439			439
Actuarial losses (A)		—			(1,262	)		(1,262	)
Total reclassifications before tax		—			(26,491	)		(26,491	)
Income Tax		—			6,500			6,500
Net reclassifications		—			(19,991	)		(19,991	)
Other comprehensive income		555			(19,861	)		(19,306	)
Other comprehensive income attributable
to non-controlling interest		(388	)		—			(388	)
Reclassification of stranded tax effects		83			3,964			4,047
Balance June 30, 2019	$	16,317		$	2,251		$	18,568

(A) Amounts reclassified are included in the computation of net periodic benefit cost, which is included in Other Income (Expense), net in the accompanying Consolidated Statements of Loss and Comprehensive (Loss) Income. See Retirement Plans and Postretirement Costs note to these Notes to Financial Statements below.

Schedule of Unrecognized Compensation Cost

Unrecognized compensation cost as of June 28, 2020 related to restricted stock granted under the plan was as follows (thousands of dollars):

	Compensation Cost		Weighted Average Period over which Cost is to be Recognized (in years)
Restricted stock granted	$	858		0.8

Cash Received from Stock Option Exercises and Related Income Tax Benefit

Cash received from stock option exercises and the related income tax benefit were as follows (thousands of dollars):

Fiscal Year	Cash Received from Stock Option Exercises		Income Tax Benefit
2020	$	477	$	28
2019	$	172	$	76

Intrinsic Value of Stock Options Exercised and Fair Value Of Stock Options Vested

The intrinsic value of stock options exercised and the fair value of options vested were as follows (thousands of dollars):

	Years Ended
	June 28, 2020		June 30, 2019
Intrinsic value of options exercised	$	120	$	324
Fair value of stock options vested	$	—	$	—

Range of Options Outstanding

The range of options outstanding as of June 28, 2020 was as follows

	Number of Options Outstanding/ Exercisable		Weighted Average Exercise Price Outstanding/ Exercisable	Weighted Average Remaining Contractual Life Outstanding (In Years)
$26.53-$25.64		49,660/49,660	$26.10/$26.10	1.63
$38.71		32,190/32,190	$38.71/$38.71	3.14
$79.73		9,010/9,010	$79.73/$79.73	4.14
		90,860/90,860	$35.88/$35.88

MEXICO

Property, Plant and Equipment

The gross and net book value of property, plant and equipment located outside of the United States, primarily in Mexico, were as follows (thousands of dollars):

	June 28, 2020		June 30, 2019
Gross book value	$	146,690	$	157,551
Net book value	$	71,369	$	80,922