Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 02, 2021 | Jul. 31, 2021 | Jan. 01, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Jul. 2, 2021 | ||
Entity File Number | 0-23599 | ||
Entity Registrant Name | MERCURY SYSTEMS, INC | ||
Entity Incorporation, State or Country Code | MA | ||
Entity Tax Identification Number | 04-2741391 | ||
Entity Address, Address Line One | 50 Minuteman Road | ||
Entity Address, City or Town | Andover | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 01810 | ||
City Area Code | 978 | ||
Local Phone Number | 256-1300 | ||
Title of 12(b) Security | Common Stock, Par Value $0.01 Per Share | ||
Trading Symbol | MRCY | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4,800 | ||
Entity Common Stock, Shares Outstanding | 56,234,113 | ||
ICFR Auditor Attestation Flag | false | ||
Entity Central Index Key | 0001049521 | ||
Current Fiscal Year End Date | --07-02 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 02, 2021 | Jul. 03, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 113,839 | $ 226,838 |
Accounts receivable, net of allowance for credit losses of $1,720 and $1,451 at July 2, 2021 and July 3, 2020, respectively | 128,807 | 120,438 |
Unbilled receivables and costs in excess of billings | 162,921 | 90,289 |
Inventory | 221,640 | 178,093 |
Prepaid income taxes | 782 | 2,498 |
Prepaid expenses and other current assets | 15,111 | 16,613 |
Total current assets | 643,100 | 634,769 |
Property and equipment, net | 128,524 | 87,737 |
Goodwill | 804,906 | 614,076 |
Intangible assets, net | 307,559 | 208,748 |
Operating lease right-of-use assets | 66,373 | 60,613 |
Other non-current assets | 4,675 | 4,777 |
Total assets | 1,955,137 | 1,610,720 |
Current liabilities: | ||
Accounts payable | 47,951 | 41,877 |
Accrued expenses | 24,652 | 23,794 |
Accrued compensation | 40,043 | 41,270 |
Deferred revenues and customer advances | 38,177 | 18,974 |
Total current liabilities | 150,823 | 125,915 |
Deferred income taxes | 28,810 | 13,889 |
Income taxes payable | 7,467 | 4,117 |
Long-term debt | 200,000 | 0 |
Operating lease liabilities | 71,508 | 66,981 |
Other non-current liabilities | 12,383 | 15,034 |
Total liabilities | 470,991 | 225,936 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Preferred stock, $0.01 par value; 1,000,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common stock, $0.01 par value; 85,000,000 shares authorized; 55,241,120 and 54,702,322 shares issued and outstanding at July 2, 2021 and July 3, 2020, respectively | 552 | 547 |
Additional paid-in capital | 1,109,434 | 1,074,667 |
Retained earnings | 374,499 | 312,455 |
Accumulated other comprehensive loss | (339) | (2,885) |
Total shareholders’ equity | 1,484,146 | 1,384,784 |
Total liabilities and shareholders’ equity | $ 1,955,137 | $ 1,610,720 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jul. 02, 2021 | Jul. 03, 2020 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 1,451 | $ 1,228 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 85,000,000 | 85,000,000 |
Common stock, shares issued | 54,702,322 | 54,247,532 |
Common stock, shares outstanding | 54,702,322 | 54,247,532 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations And Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jul. 02, 2021 | Jul. 03, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | |||
Net revenues | $ 923,996 | $ 796,610 | $ 654,744 |
Cost of revenues | 538,808 | 439,766 | 368,588 |
Gross margin | 385,188 | 356,844 | 286,156 |
Operating expenses: | |||
Selling, general and administrative | 134,337 | 132,253 | 110,717 |
Research and development | 113,481 | 98,485 | 68,925 |
Amortization of intangible assets | 41,171 | 30,560 | 27,914 |
Restructuring and other charges | 9,222 | 1,805 | 560 |
Acquisition costs and other related expenses | 5,976 | 2,679 | 1,456 |
Total operating expenses | 304,187 | 265,782 | 209,572 |
Income from operations | 81,001 | 91,062 | 76,584 |
Interest income | 179 | 2,151 | 932 |
Interest expense | (1,222) | (1,006) | (9,109) |
Other (expense) income, net | (2,785) | 1,726 | (8,880) |
Income before income taxes | 77,173 | 93,933 | 59,527 |
Income tax provision | 15,129 | 8,221 | 12,752 |
Net income | $ 62,044 | $ 85,712 | $ 46,775 |
Basic net earnings (loss) per share: | |||
Basic net income per share (in dollars per share) | $ 1.13 | $ 1.57 | $ 0.98 |
Diluted net earnings (loss) per share: | |||
Diluted net income per share (in dollars per share) | $ 1.12 | $ 1.56 | $ 0.96 |
Weighted-average shares outstanding: | |||
Basic (in shares) | 55,070 | 54,546 | 47,831 |
Diluted (in shares) | 55,474 | 55,115 | 48,500 |
Comprehensive income: | |||
Net income | $ 62,044 | $ 85,712 | $ 46,775 |
Foreign currency translation adjustments | (739) | 174 | (232) |
Pension benefit plan, net of tax | 3,285 | (1,768) | (2,350) |
Total other comprehensive income (loss), net of tax | 2,546 | (1,594) | (2,582) |
Total comprehensive income | $ 64,590 | $ 84,118 | $ 44,193 |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance (in shares) at Jun. 30, 2018 | 46,924,000 | ||||
Beginning Balance at Jun. 30, 2018 | $ 771,891 | $ 469 | $ 590,163 | $ 179,968 | $ 1,291 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock under employee stock incentive plans (in shares) | 478,000 | ||||
Issuance of common stock under employee stock incentive plans | 0 | $ 5 | (5) | ||
Issuance of common stock under employee stock purchase plan (in shares) | 102,000 | ||||
Issuance of common stock under employee stock purchase plan | 3,661 | $ 1 | 3,660 | ||
Retirement of common shares (in shares) | (156,000) | ||||
Retirement of common stock | (7,968) | $ (2) | (7,966) | ||
Follow-on public offering | 6,900,000 | ||||
Follow-on public stock offering | 453,573 | $ 69 | 453,504 | ||
Stock-based compensation | 19,389 | 19,389 | |||
Net income | 46,775 | 46,775 | |||
Other comprehensive income (loss) | (2,582) | ||||
Ending Balance (in shares) at Jun. 30, 2019 | 54,248,000 | ||||
Ending Balance at Jun. 30, 2019 | 1,284,739 | $ 542 | 1,058,745 | 226,743 | (1,291) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock under employee stock incentive plans (in shares) | 562,000 | ||||
Issuance of common stock under employee stock incentive plans | 5 | $ 6 | (1) | ||
Issuance of common stock under employee stock purchase plan (in shares) | 89,000 | ||||
Issuance of common stock under employee stock purchase plan | 5,312 | $ 1 | 5,311 | ||
Retirement of common shares (in shares) | (197,000) | ||||
Retirement of common stock | (16,249) | $ (2) | (16,247) | ||
Stock-based compensation | 26,859 | 26,859 | |||
Net income | $ 85,712 | 85,712 | |||
Other comprehensive income (loss) | (1,594) | ||||
Ending Balance (in shares) at Jul. 03, 2020 | 54,247,532 | 54,702,000 | |||
Ending Balance at Jul. 03, 2020 | $ 1,384,784 | $ 547 | 1,074,667 | 312,455 | (2,885) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock under employee stock incentive plans (in shares) | 439,000 | ||||
Issuance of common stock under employee stock incentive plans | 14 | $ 4 | 10 | ||
Issuance of common stock under employee stock purchase plan (in shares) | 101,000 | ||||
Issuance of common stock under employee stock purchase plan | 6,281 | $ 1 | 6,280 | ||
Retirement of common shares (in shares) | (1,000) | ||||
Retirement of common stock | (66) | $ 0 | (66) | ||
Stock-based compensation | 28,543 | 28,543 | |||
Net income | $ 62,044 | 62,044 | |||
Other comprehensive income (loss) | 2,546 | ||||
Ending Balance (in shares) at Jul. 02, 2021 | 54,702,322 | 55,241,000 | |||
Ending Balance at Jul. 02, 2021 | $ 1,484,146 | $ 552 | $ 1,109,434 | $ 374,499 | $ (339) |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 02, 2021 | Jul. 03, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 62,044 | $ 85,712 | $ 46,775 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization expense | 67,083 | 49,330 | 46,392 |
Stock-based compensation expense | 28,290 | 26,538 | 19,422 |
Benefit for deferred income taxes | (1,125) | (3,019) | (1,557) |
Gain on investments | 0 | (5,817) | 0 |
Termination of interest rate swap | 0 | 0 | 5,420 |
Other non-cash items | 3,745 | 3,509 | 3,779 |
Changes in operating assets and liabilities, net of effects of businesses acquired: | |||
Accounts receivable, unbilled receivables, and costs in excess of billings | (51,981) | (31,079) | (28,096) |
Inventory | (27,441) | (31,609) | (17,101) |
Prepaid income taxes | 1,703 | (2,792) | 3,843 |
Prepaid expenses and other current assets | 1,718 | (2,116) | (1,075) |
Other non-current assets | 5,459 | (1,260) | 101 |
Accounts payable, accrued expenses and accrued compensation | (6,315) | 13,610 | 17,949 |
Deferred revenues and customer advances | 13,731 | 7,082 | (1,531) |
Income taxes payable | 4,080 | (131) | 3,152 |
Other non-current liabilities | (3,744) | 7,226 | 44 |
Net cash provided by operating activities | 97,247 | 115,184 | 97,517 |
Cash flows from investing activities: | |||
Acquisition of businesses, net of cash acquired | (372,826) | (96,502) | (127,083) |
Purchases of property and equipment | (45,599) | (43,294) | (26,691) |
Proceeds from sale of investment | 1,538 | 4,310 | 0 |
Net cash used in investing activities | (416,887) | (135,486) | (153,774) |
Cash flows from financing activities: | |||
Proceeds from employee stock plans | 6,295 | 5,317 | 3,661 |
Payments for retirement of common stock | (66) | (16,249) | (7,968) |
Payments under credit facilities | 0 | (200,000) | (324,500) |
Borrowings under credit facilities | 200,000 | 200,000 | 129,500 |
Proceeds from equity offering, net | 0 | 0 | 454,343 |
Termination of interest rate swap | 0 | 0 | (5,420) |
Payments of deferred financing and offering costs | 0 | 0 | (1,851) |
Net cash provided by (used in) financing activities | 206,229 | (10,932) | 247,765 |
Effect of exchange rate changes on cash and cash equivalents | 412 | 140 | (97) |
Net (decrease) increase in cash and cash equivalents | (112,999) | (31,094) | 191,411 |
Cash and cash equivalents at beginning of year | 226,838 | 257,932 | 66,521 |
Cash and cash equivalents at end of year | 113,839 | 226,838 | 257,932 |
Cash paid during the period for: | |||
Interest | 1,088 | 1,046 | 10,368 |
Income taxes | 8,983 | 12,939 | 7,351 |
Non-cash investing activity | (1,928) | 2,623 | 0 |
Non-cash financing activity | $ 0 | $ 0 | $ 770 |
Description of Business
Description of Business | 12 Months Ended |
Jul. 02, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Mercury Systems, Inc. (the “Company” or “Mercury”) is a leading technology company serving the aerospace and defense industry, positioned at the intersection of high-tech and defense. Headquartered in Andover, Massachusetts, the Company delivers products and solutions that power a broad range of aerospace and defense programs, optimized for mission success in some of the most challenging and demanding environments. The Company envisions, creates and delivers innovative technology solutions that are open, purpose-built and uncompromised to meet our customers’ most-pressing high-tech needs, including those specific to the defense community. On May 27, 2021, we acquired Pentek for a purchase price of $65.0 million , subject to net working capital and net debt adjustments. Based in Upper Saddle River, New Jersey, Pentek is a leading designer and manufacturer of ruggedized, high-performance, commercial off-the-shelf ("COTS") software-defined radio and data acquisition boards, recording systems and subsystems for high-end commercial and defense applications. The acquisition and associated transaction expenses were funded through a combination of cash on hand and Mercury's existing revolving credit facility (the "Revolver"). On December 30, 2020, we acquired Physical Optics Corporation ("POC") for a purchase price of $310.0 million , subject to net working capital and net debt adjustments. Based in Torrance, California, POC more than doubles our global avionics business and expands its collective footprint in the platform and mission management market. We funded the acquisition through a combination of cash on hand and our existing Revolver. On September 23, 2019, the Company acquired American Panel Corporation (“APC”) on a cash-free, debt-free basis for a total purchase price of $100,000, prior to net working capital and net debt adjustments. Based in Alpharetta, Georgia, APC is a leading innovator in large area display technology for the aerospace and defense market. APC's capabilities are deployed on a wide range of next-generation platforms. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jul. 02, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies P RINCIPLES OF C ONSOLIDATION The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated. B ASIS OF P RESENTATION Effective July 1, 2019, the Company's fiscal year has changed to the 52-week or 53-week period ending on the Friday closest to the last day in June. All references to fiscal 2021 are to the 52-week period from July 4, 2020 to July 2, 2021. All references to fiscal 2020 are to the 53-week period from July 1, 2019 to July 3, 2020. All references to fiscal 2019 are to the 52-week period from and July 1, 2018 to June 30, 2019. There have been no reclassifications of prior comparable periods due to this change. U SE OF E STIMATES The preparation of financial statements in conformity with Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. B USINESS C OMBINATIONS The Company utilizes the acquisition method of accounting under ASC 805, Business Combinations, (“ASC 805”), for all transactions and events in which it obtains control over one or more other businesses, to recognize the fair value of all assets and liabilities acquired, even if less than one hundred percent ownership is acquired, and in establishing the acquisition date fair value as of the measurement date for all assets and liabilities assumed. The Company also utilizes ASC 805 for the initial recognition and measurement, subsequent measurement and accounting, and disclosure of assets and liabilities arising from contingencies in business combinations. Other estimates include: • estimated step-ups for fixed assets and inventory; • estimated fair values of intangible assets; and • estimated income tax assets and liabilities assumed from the acquiree. While the Company uses its best estimates and assumptions as part of the purchase price allocation process to accurately value assets acquired and liabilities assumed at the business acquisition date, the estimates and assumptions are inherently uncertain and subject to refinement. As a result, during the purchase price allocation period, which is generally one year from the business acquisition date, the Company records adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. For changes in the valuation of intangible assets between the preliminary and final purchase price allocation, the related amortization is adjusted in the period it occurs. Subsequent to the purchase price allocation period, any adjustment to assets acquired or liabilities assumed is included in operating results in the period in which the adjustment is determined. L EASES The Company measures its lease obligations in accordance with ASC 842, Leases , (“ASC 842”), which requires lessees to recognize a right-of-use (“ROU”) asset and lease liability for most lease arrangements. Effective July 1, 2019, the Company adopted ASC 842 using the optional transition method and, as a result, there have been no reclassifications of prior comparable periods due to this adoption. The Company has arrangements involving the lease of facilities, machinery and equipment. Under ASC 842, at inception of the arrangement, the Company determines whether the contract is or contains a lease and whether the lease should be classified as an operating or a financing lease. This determination, among other considerations, involves an assessment of whether the Company can control the underlying asset and have the right to obtain substantially all of the economic benefits or outputs from the asset. The Company recognizes ROU assets and lease liabilities as of the lease commencement date based on the net present value of the future minimum lease payments over the lease term. ASC 842 requires lessees to use the rate implicit in the lease unless it is not readily determinable and then it may use its incremental borrowing rate (“IBR”) to discount the future minimum lease payments. Most of the Company's lease arrangements do not provide an implicit rate; therefore, the Company uses its IBR to discount the future minimum lease payments. The Company determines its IBR with its credit rating and current economic information available as of the commencement date, as well as the identified lease term. During the assessment of the lease term, the Company considers its renewal options and extensions within the arrangements and the Company includes these options when it is reasonably certain to extend the term of the lease. The Company has lease arrangements with both lease and non-lease components. Consideration is allocated to lease and non-lease components based on estimated standalone prices. The Company has elected to exclude non-lease components from the calculation of its ROU assets and lease liabilities. In the Company's adoption of ASC 842, leases with an initial term of 12 months or less will not result in recognition of a ROU asset and a lease liability and will be expensed as incurred over the lease term. Leases of this nature were immaterial to the Company’s consolidated financial statements. The Company has lease arrangements that contain incentives for tenant improvements as well as fixed rent escalation clauses. For contracts with tenant improvement incentives that are determined to be a leasehold improvement that will be owned by the lessee and the Company is reasonably certain to exercise, it records a reduction to the lease liability and amortizes the incentive over the identified term of the lease as a reduction to rent expense. The Company records rental expense on a straight-line basis over the identified lease term on contracts with rent escalation clauses. Finance leases are not material to the Company's consolidated financial statements and the Company is not a lessor in any material lease arrangements. There are no material restrictions, covenants, sale and leaseback transactions, variable lease payments or residual value guarantees in the Company's lease arrangements. Operating leases are included in Operating lease right-of-use assets, Accrued expenses, and Operating lease liabilities in the Company's Consolidated Balance Sheets. The standard had no impact on the Company's Consolidated Statements of Operations and Comprehensive Income or Consolidated Statements of Cash Flows. See Note J to the consolidated financial statements for more information regarding our obligations under leases. R EVENUE R ECOGNITION The Company recognizes revenue in accordance with the five step model set forth by ASC 606, Revenue from Contracts with Customers , (“ASC 606”), which involves identification of the contract(s), identification of performance obligations in the contract, determination of the transaction price, allocation of the transaction price to the previously identified performance obligations, and revenue recognition as the performance obligations are satisfied. During step one of the five step model, the Company considers whether contracts should be combined or segmented, and based on this assessment, the Company combines closely related contracts when all the applicable criteria are met. The combination of two or more contracts requires judgment in determining whether the intent of entering into the contracts was effectively to enter into a single contract, which should be combined to reflect an overall profit rate. Similarly, the Company may separate an arrangement, which may consist of a single contract or group of contracts, with varying rates of profitability, only if the applicable criteria are met. Judgment also is involved in determining whether a single contract or group of contracts may be segmented based on how the arrangement and the related performance criteria were negotiated. The conclusion to combine a group of contracts or segment a contract could change the amount of revenue and gross profit recorded in a given period. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when the performance obligation is satisfied. Certain contracts with customers require the Company to perform tests of its products prior to shipment to ensure their performance complies with the Company’s published product specifications and, on occasion, with additional customer-requested specifications. In these cases, the Company conducts such tests and, if they are completed successfully, includes a written confirmation with each order shipped. As a result, at the time of each product shipment, the Company believes that no further customer testing requirements exist and that there is no uncertainty of acceptance by its customer. The Company's contracts with customers generally do not include a right of return relative to delivered products. In certain cases, contracts are modified to account for changes in the contract specifications or requirements. In most instances, contract modifications are accounted for as part of the existing contract. Certain contracts with customers have options for the customer to acquire additional goods or services. In most cases the pricing of these options are reflective of the standalone selling price of the good or service. These options do not provide the customer with a material right and are accounted for only when the customer exercises the option to purchase the additional goods or services. If the option on the customer contract was not indicative of the standalone selling price of the good or service, the material right would be accounted for as a separate performance obligation. The Company is a leading technology company serving the aerospace and defense industry, positioned at the intersection of high-tech and defense. Revenues are derived from the sales of products that are grouped into one of the following three categories: (i) components; (ii) modules and sub-assemblies; and (iii) integrated subsystems. The Company also generates revenues from the performance of services, including systems engineering support, consulting, maintenance and other support, testing and installation. Each promised good or service within a contract is accounted for separately under the guidance of ASC 606 if they are distinct. Promised goods or services not meeting the criteria for being a distinct performance obligation are bundled into a single performance obligation with other goods or services that together meet the criteria for being distinct. The appropriate allocation of the transaction price and recognition of revenue is then determined for the bundled performance obligation. Once the Company identifies the performance obligations, the Company then determines the transaction price, which includes estimating the amount of variable consideration to be included in the transaction price, if any. Variable consideration typically arises due to volume discounts, or other provisions that can either decrease or increase the transaction price. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the method the Company expects to better predict the amount of consideration to which it will be entitled. The determination of the estimates for variable consideration require judgment, and are based on past history with similar contracts and anticipated performance. Further, variable consideration is only included in the determination of the transaction price if it is probable that a significant reversal in the amount of revenue recognized will not occur. There are no constraints on the variable consideration recorded. For contracts with multiple performance obligations, the transaction price is allocated to each performance obligation using the standalone selling price of each distinct good or service in the contract. Standalone selling prices of the Company’s goods and services are generally not directly observable. Accordingly, the primary method used to estimate standalone selling price is the expected cost plus a margin approach, under which the Company forecasts the expected costs of satisfying a performance obligation and then adds an appropriate margin for that distinct good or service. The objective of the expected cost plus a margin approach is to determine the price at which the Company would transact if the product or service were sold by the Company on a standalone basis. The Company's determination of the expected cost plus a margin approach involves the consideration of several factors based on the specific facts and circumstances of each contract. Specifically, the Company considers the cost to produce the deliverable, the anticipated margin on that deliverable, the selling price and profit margin for similar parts, the Company’s ongoing pricing strategy and policies, often based on the price list established and updated by management on a regular basis, the value of any enhancements that have been built into the deliverable and the characteristics of the varying markets in which the deliverable is sold. The Company analyzes the standalone selling prices used in its allocation of transaction price on contracts at least annually. Standalone selling prices will be analyzed on a more frequent basis if a significant change in the Company’s business necessitates a more frequent analysis or if the Company experiences significant variances in its selling prices. Revenue recognized at a point in time generally relates to contracts that include a combination of components, modules and sub-assemblies, integrated subsystems and related system integration or other services. Contracts with distinct performance obligations recognized at a point in time, with or without an allocation of the transaction price, totaled 58%, 73% and 77% of revenues in the fiscal years ended July 2, 2021, July 3, 2020 and June 30, 2019, respectively. Revenue is recognized at a point in time for these products and services (versus over time recognition) due to the following: (i) customers are only able to consume the benefits provided by the Company upon completion of the product or service; (ii) customers do not control the product or service prior to completion; and (iii) the Company does not have an enforceable right to payment at all times for performance completed to date. Accordingly, there is little judgment in determining when control of the good or service transfers to the customer, and revenue is generally recognized upon shipment (for goods) or completion (for services). The Company engages in long-term contracts for development, production and service activities and recognizes revenue for performance obligations over time. These long-term contracts involve the design, development, manufacture, or modification of complex modules and sub-assemblies or integrated subsystems and related services. Revenue is recognized over time, due to the fact that: (i) the Company’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced; and (ii) the Company’s performance creates an asset with no alternative use to the Company and the Company has an enforceable right to payment for performance completed to date. The Company considers the nature of these contracts and the types of products and services provided when determining the proper accounting for a particular contract. These contracts include both fixed-price and cost reimbursable contracts. The Company’s cost reimbursable contracts typically include cost-plus fixed fee and time and material (“T&M”) contracts. For long-term contracts, the Company typically leverages the input method, using a cost-to-cost measure of progress. The Company believes that this method represents the most faithful depiction of the Company’s performance because it directly measures value transferred to the customer. Contract estimates and estimates of any variable consideration are based on various assumptions to project the outcome of future events that may span several years. These assumptions include: the amount of time to complete the contract, including the assessment of the nature and complexity of the work to be performed; the cost and availability of materials; the availability of subcontractor services and materials; and the availability and timing of funding from the customer. The Company bears the risk of changes in estimates to complete on a fixed-price contract which may cause profit levels to vary from period to period. For cost reimburseable contracts, the Company is reimbursed periodically for allowable costs and is paid a portion of the fee based on contract progress. In the limited instances where the Company enters into T&M contracts, revenue recognized reflects the number of direct labor hours expended in the performance of a contract multiplied by the contract billing rate, as well as reimbursement of other direct billable costs. For T&M contracts, the Company recognizes revenue in the amount for which the Company has a right to invoice the customer based on the control transferred to the customer. For over time contracts, the Company recognizes anticipated contract losses as soon as they become known and estimable. Accounting for long-term contracts requires significant judgment relative to estimating total contract revenues and costs, in particular, assumptions relative to the amount of time to complete the contract, including the assessment of the nature and complexity of the work to be performed. The Company’s estimates are based upon the professional knowledge and experience of its engineers, program managers and other personnel, who review each long-term contract monthly to assess the contract’s schedule, performance, technical matters and estimated cost at completion. Changes in estimates are applied retrospectively and when adjustments in estimated contract costs are identified, such revisions may result in current period adjustments to earnings applicable to performance in prior periods. Total revenue recognized under long-term contracts over time was 42%, 27% and 23% of revenues in the fiscal years ended July 2, 2021, July 3, 2020 and June 30, 2019, respectively. The Company generally does not provide its customers with rights of product return other than those related to assurance warranty provisions that permit repair or replacement of defective goods over a period of 12 to 36 months. The Company accrues for anticipated warranty costs upon product shipment. The Company does not consider activities related to such assurance warranties, if any, to be a separate performance obligation. The Company does offer separately priced extended warranties which generally range from 12 to 36 months that are treated as separate performance obligations. The transaction price allocated to extended warranties is recognized over time in proportion to the costs expected to be incurred in satisfying the obligations under the contract. On long-term contracts, the portion of the payments retained by the customer is not considered a significant financing component because most contracts have a duration of less than one year and payment is received as progress is made. Many of the Company's long-term contracts have milestone payments, which align the payment schedule with the progress towards completion on the performance obligation. On some contracts, the Company may be entitled to receive an advance payment, which is not considered a significant financing component because it is used to facilitate inventory demands at the onset of a contract and to safeguard the Company from the failure of the other party to abide by some or all of their obligations under the contract. All revenues are reported net of government assessed taxes (e.g., sales taxes or value-added taxes). C OSTS TO O BTAIN AND F ULFILL A C ONTRACT The Company expenses sales commissions as incurred for contracts where the amortization period would have been one year or less. The Company had $1,098 of deferred sales commissions for contracts where the amortization period is greater than one year as of July 2, 2021. Prior to fiscal 2021, the Company had not deferred sales commissions for contracts where the amortization period was greater than one year because such amounts were not deemed significant. The Company has elected to treat shipping and handling activities performed after the customer has obtained control of the related goods as a fulfillment cost. Such costs are accrued for in conjunction with the recording of revenue for the goods and are classified as cost of revenues. C ONTRACT B ALANCES Contract balances result from the timing of revenue recognized, billings and cash collections, and the generation of contract assets and liabilities. Contract assets represent revenue recognized in excess of amounts invoiced to the customer and the right to payment is not subject to the passage of time. Contract assets are presented as unbilled receivables and costs in excess of billings on the Company’s Consolidated Balance Sheets. Contract liabilities consist of deferred product revenue, billings in excess of revenues, deferred service revenue, and customer advances. Deferred product revenue represents amounts that have been invoiced to customers, but are not yet recognizable as revenue because the Company has not satisfied its performance obligations under the contract. Billings in excess of revenues represents milestone billing contracts where the billings of the contract exceed recognized revenues. Deferred service revenue primarily represents amounts invoiced to customers for annual maintenance contracts or extended warranty contracts, which are recognized over time in proportion to the costs expected to be incurred in satisfying the obligations under the contract. Customer advances represent deposits received from customers on an order. Contract liabilities are included in deferred revenue and the long-term portion of deferred revenue is included within other non-current liabilities on the Company’s Consolidated Balance Sheets. Contract balances are reported in a net position on a contract-by-contract basis. The contract asset balances were $162,921 and $90,289 as of July 2, 2021 and July 3, 2020, respectively. The contract asset balance increased due to growth in revenue recognized under long-term contracts over time during the fiscal year ended July 2, 2021. The contract liability balances were $35,201 and $19,892 as July 2, 2021 and July 3, 2020, respectively. The contract liability increased due to a higher volume of contracts with milestone and progress payments. Revenue recognized during fiscal 2021 that was included in the contract liability balance at July 3, 2020 was $16,846. R EMAINING P ERFORMANCE O BLIGATIONS The Company includes in its computation of remaining performance obligations customer orders for which it has accepted signed sales orders. The definition of remaining performance obligations excludes those contracts that provide the customer with the right to cancel or terminate the order with no substantial penalty, even if the Company’s historical experience indicates the likelihood of cancellation or termination is remote. As of July 2, 2021, the aggregate amount of the transaction price allocated to remaining performance obligations was $337,886. The Company expects to recognize approximately 65% of its remaining performance obligations as revenue in the next 12 months and the balance thereafter. C ASH AND C ASH E QUIVALENTS Cash equivalents, consisting of highly liquid money market funds and U.S. government and U.S. government agency issues with original maturities of 90 days or less at the date of purchase, are carried at fair market value which approximates cost. F AIR V ALUE OF F INANCIAL I NSTRUMENTS The Company measures at fair value certain financial assets and liabilities, including cash equivalents, restricted cash and contingent consideration. ASC 820, Fair Value Measurement and Disclosures , specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. These two types of inputs have created the following fair-value hierarchy: Level 1—Quoted prices for identical instruments in active markets; Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. C ONCENTRATION OF C REDIT R ISK Financial instruments that potentially expose the Company to concentrations of credit risk consist principally of cash, cash equivalents and accounts receivable. The Company places its cash and cash equivalents with financial institutions of high credit quality. As of July 2, 2021 and July 3, 2020, the Company had $113,839 and $226,838, respectively, of cash and cash equivalents on deposit or invested with its financial and lending institutions. The Company provides credit to customers in the normal course of business. The Company performs ongoing credit evaluations of its customers’ financial condition and limits the amount of credit extended when deemed necessary. As of July 2, 2021, five customers accounted for 60% of the Company's accounts receivable, unbilled receivables and costs in excess of billings. As of July 3, 2020, five customers accounted for 52% of the Company’s accounts receivable, unbilled receivables and costs in excess of billings. The Company maintains an allowance for credit losses to provide for the estimated amount of receivables that will not be fully collected. The allowance is based on the assessment of the following factors: customer creditworthiness; historical payment experience; age of outstanding receivables; and any applicable collateral. I NVENTORY Inventory is stated at the lower of cost (first-in, first-out) or net realizable value, and consists of materials, labor and overhead. On a quarterly basis, the Company evaluates inventory for net realizable value. Once an item is written down, the value becomes the new inventory cost basis. The Company reduces the value of inventory for excess and obsolete inventory, consisting of on-hand and non-cancelable on-order inventory in excess of estimated usage. The excess and obsolete inventory evaluation is based upon assumptions about future demand, product mix and possible alternative uses. S EGMENT I NFORMATION The Company uses the management approach for segment disclosure, which designates the internal organization that is used by management for making operating decisions and assessing performance as the source of its reportable segments. The Company manages its business on the basis of one reportable segment, as a leading technology company serving the aerospace and defense industry, positioned at the intersection of high-tech and defense. G OODWILL AND I NTANGIBLE A SSETS Goodwill is the amount by which the purchase price of a business acquisition exceeded the fair values of the net identifiable assets on the date of purchase (see Note G). In accordance with the requirements of Intangibles-Goodwill and Other (“ASC 350”) Goodwill is not amortized. Goodwill is assessed for impairment at least annually, on a reporting unit basis, or when events and circumstances occur indicating that the recorded goodwill may be impaired. If the book value of a reporting unit exceeds its fair value, the implied fair value of goodwill is compared with the carrying amount of goodwill. If the carrying amount of goodwill exceeds the implied fair value, an impairment loss is recorded in an amount equal to that excess. Intangible assets result from the Company’s various business acquisitions (see Note H) and certain licensed technologies, and consist of identifiable intangible assets, including completed technology, licensing agreements, patents, customer relationships, trademarks, backlog and non-compete agreements. Intangible assets are reported at cost, net of accumulated amortization and are either amortized on a straight-line basis over their estimated useful lives of up to 12.5 years or over the period the economic benefits of the intangible asset are consumed. L ONG - LIVED A SSETS Long-lived assets primarily include property and equipment, intangible assets and ROU assets. The Company regularly evaluates its long-lived assets for events and circumstances that indicate a potential impairment in accordance with ASC 360, Property, Plant, and Equipment (“ASC 360”). The Company reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate. Each impairment test is based on a comparison of the estimated undiscounted cash flows of the asset as compared to the recorded value of the asset. If impairment is indicated, the asset is written down to its estimated fair value. Property and equipment are the long-lived, physical assets of the Company acquired for use in the Company’s normal business operations and are not intended for resale by the Company. These assets are recorded at cost. Renewals and betterments that increase the useful lives of the assets are capitalized. Repair and maintenance expenditures that increase the efficiency of the assets are expensed as incurred. Equipment under capital lease is recorded at the present value of the minimum lease payments required during the lease period. Depreciation is based on the estimated useful lives of the assets using the straight-line method (see Note F). As assets are retired or sold, the related cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations. Expenditures for major software purchases and software developed for internal use are capitalized and depreciated using the straight-line method over the estimated useful lives of the related assets, which are generally three years. For software developed for internal use, all external direct costs for material and services and certain payroll and related fringe benefit costs are capitalized in accordance with ASC 350. During fiscal 2021, 2020 and 2019, the Company capitalized $1,640, $905 and $749 of software development costs, respectively. I NCOME T AXES The Company accounts for income taxes under ASC 740, Income Taxes (“ASC 740”). The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the Company’s consolidated financial statements. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates for the year in which the differences are expected to reverse. The Company records a valuation allowance against net deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. ASC 740 requires a two-step approach to recognizing and measuring uncertain tax positions. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination. If the tax position is deemed more-likely-than-not to be sustained, the tax position is then assessed to determine the amount of benefit to recognize in the financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company recognizes interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. P RODUCT W ARRANTY A CCRUAL The Company’s pro |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Jul. 02, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments During the fiscal year ended July 2, 2021, the Company received gross proceeds and recorded a loss on a cost-method investment of $1,538 and $426, respectively. The loss on sale of investment is included within Other expense (income), net in the Consolidated Statements of Operations and Comprehensive Income for the fiscal year ended July 2, 2021. The fair value of the investment was based on a quoted price of identical instruments in an active market and was recorded at cost within Other non-current assets in the Consolidated Balance Sheet prior to its sale. As of July 2, 2021, the Company had no financial instruments required to be measured at fair value. The following table summarizes the Company’s financial assets measured at fair value on a recurring basis at July 3, 2020: Fair Value Measurements July 3, 2020 Level 1 Level 2 Level 3 Assets: Certificates of deposit $ 10,006 $ — $ 10,006 $ — U.S. equity securities 2,007 2,007 — — Total $ 12,013 $ 2,007 $ 10,006 $ — During the fiscal year ended July 3, 2020, the Company received gross proceeds and recorded a gain on a cost-method investment of $4,310 and $3,810, respectively. The Company's cost-method investment did not have a readily determinable fair value and was recorded at cost within Other non-current assets in the Consolidated Balance Sheet prior to its sale. The Company also recorded a gain on the change in fair value of a cost-method investment of $2,007. The change in fair value of these U.S. equity securities was the result of an observable price change during the fourth quarter of fiscal 2020. Its fair value is based on a quoted price of identical instruments in an active market and is included within Prepaid expenses and other current assets on the Consolidated Balance Sheet as of July 3, 2020. The carrying values of cash and cash equivalents, including money market funds, restricted cash, accounts receivable and payable, and accrued liabilities approximate fair value due to the short-term maturities of these assets and liabilities. The Company determined the carrying value of long-term debt approximated fair value due to variable interest rates charged on the borrowings, which reprice frequently. |
Inventory
Inventory | 12 Months Ended |
Jul. 02, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory was comprised of the following: As of July 2, 2021 July 3, 2020 Raw materials $ 141,774 $ 111,225 Work in process 58,087 49,647 Finished goods 21,779 17,221 Total $ 221,640 $ 178,093 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jul. 02, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consisted of the following: Estimated Useful Lives As of July 2, 2021 July 3, 2020 Computer equipment and software 3-4 $ 99,190 $ 85,705 Furniture and fixtures 5 17,997 5,993 Leasehold improvements lesser of estimated useful life or lease term 63,322 36,874 Machinery and equipment 5-10 105,346 90,970 285,855 219,542 Less: accumulated depreciation (157,331) (131,805) $ 128,524 $ 87,737 The $40,787 increase in property and equipment was primarily due to current year additions including property and equipment associated with improvements to the Company's facilities, especially as related to the expansion of its trusted custom microelectronics business and the acquisition of POC. These increases were partially offset by depreciation expense. During fiscal 2021 and 2020, the Company retired $996 and $64, respectively, of computer equipment and software, furniture, and fixtures, leasehold improvements, and machinery and equipment that were no longer in use by the Company. Depreciation expense related to property and equipment for the fiscal years ended July 2, 2021, July 3, 2020 and June 30, 2019 was $25,912, $18,770 and $18,478, respectively. |
Goodwill
Goodwill | 12 Months Ended |
Jul. 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill During the first quarter of fiscal 2021, the Company reorganized its internal reporting unit structure to align with the Company's market and brand strategy as well as promote scale as the organization continues to grow. In accordance with FASB ASC 350, Intangibles-Goodwill and Other (“ASC 350”), the Company determines its reporting units based upon whether discrete financial information is available, if management regularly reviews the operating results of the component, the nature of the products offered to customers and the market characteristics of each reporting unit. A reporting unit is considered to be an operating segment or one level below an operating segment also known as a component. Component level financial information is reviewed by management across three divisions: Processing, Microelectronics and Mission. Accordingly, these were determined to be the Company's new reporting units. The internal reorganization and change in reporting units qualified as a triggering event and required goodwill to be tested for impairment. As required by ASC 350, the Company tested goodwill for impairment immediately before and after the reorganization. As a result of these analyses, it was determined that goodwill was not impaired before or after the reorganization. In the first quarter ended October 2, 2020, the Company assigned goodwill to the new reporting units based on the relative fair value of reporting units. The following table sets forth the changes in the carrying amount of goodwill for the year ended July 2, 2021: Total Balance at July 3, 2020 $ 614,076 Goodwill adjustment for the APC acquisition 346 Goodwill arising from the POC acquisition 155,259 Goodwill arising from the Pentek acquisition 35,225 Balance at July 2, 2021 $ 804,906 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Jul. 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets consisted of the following: Gross Accumulated Net Weighted July 2, 2021 Customer relationships $ 280,520 $ (69,474) $ 211,046 12.0 years Licensing agreements and patents 6 — 6 — Completed technologies 139,332 (49,126) 90,206 9.3 years Backlog 12,410 (6,109) 6,301 1.2 years $ 432,268 $ (124,709) $ 307,559 July 3, 2020 Customer relationships $ 181,960 $ (48,450) $ 133,510 11.4 years Licensing agreements and patents 1,505 (1,404) 101 3.5 years Completed technologies 107,992 (34,522) 73,470 9.2 years Backlog 3,200 (1,533) 1,667 2.0 years $ 294,657 $ (85,909) $ 208,748 Estimated future amortization expense for intangible assets remaining at July 2, 2021 is as follows: Fiscal Year Totals 2022 $ 49,695 2023 41,413 2024 36,891 2025 32,466 2026 27,806 Thereafter 119,288 Total future amortization expense $ 307,559 The following table summarizes the preliminary estimated fair value of acquired intangible assets arising as a result of the POC acquisition. These assets are included in the Company's gross and net carrying amounts as of July 2, 2021. Gross Accumulated Net Weighted Average Customer relationships $ 83,000 $ (4,404) $ 78,596 11.5 years Completed technologies 25,000 (1,985) 23,015 9.0 years Backlog 8,000 (4,000) 4,000 1.0 year $ 116,000 $ (10,389) $ 105,611 The following table summarizes the preliminary estimated fair value of acquired intangible assets arising as a result of the Pentek acquisition. These assets are included in the Company's gross and net carrying amounts as of July 2, 2021. Gross Accumulated Net Weighted Average Customer relationships $ 15,560 $ (62) $ 15,498 21.0 years Completed technologies 6,340 (86) 6,254 6.8 years Backlog 2,210 (184) 2,026 1.0 year $ 24,110 $ (332) $ 23,778 |
Restructuring Plan
Restructuring Plan | 12 Months Ended |
Jul. 02, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Plan | Restructuring During fiscal 2021, the Company incurred $9,222 of restructuring and other charges. Restructuring and other charges of $4,752 related to severance costs associated with the elimination of approximately 90 positions throughout the period, predominantly in manufacturing, SG&A and R&D. These charges are related to changing market and business conditions as well as talent shifts and resource redundancy resulting from the Company's internal reorganization that was completed during fiscal 2021. The remaining $4,470 of restructuring and other charges related to third-party consulting costs associated with 1MPACT, the Company's value creation initiatives. During fiscal 2020, the Company incurred $1,805 of net restructuring and other charges primarily related to severance costs associated with the elimination of 20 positions, predominantly in SG&A and R&D functions. During fiscal 2019, the Company incurred $560 related primarily related to severance costs associated with the acquired Germane business. All of the restructuring and other charges are classified as operating expenses in the Consolidated Statements of Operations and Comprehensive Income and any remaining severance obligations are expected to be paid within the next twelve months. The remaining restructuring liability is classified as accrued expenses in the Consolidated Balance Sheets. The following table presents the detail of charges included in the Company’s liability for restructuring and other charges: Severance & Related Facilities & Other Total Restructuring liability at June 30, 2019 $ 4 $ — $ 4 Restructuring charges 1,730 75 1,805 Cash paid (1,137) (75) (1,212) Restructuring liability at July 3, 2020 597 — 597 Restructuring charges 4,752 — 4,752 Cash paid (4,343) — (4,343) Restructuring liability at July 2, 2021 $ 1,006 $ — $ 1,006 |
Leases
Leases | 12 Months Ended |
Jul. 02, 2021 | |
Leases [Abstract] | |
Leases | Leases The Company enters into lease arrangements to facilitate its operations, including manufacturing, storage, as well as engineering, sales, marketing, and administration resources. The Company measures its lease obligations in accordance with ASC 842, which requires lessees to record a ROU asset and lease liability for most lease arrangements. The Company adopted ASC 842 as of July 1, 2019 using the optional transition method and, as a result, there have been no reclassifications of prior comparable periods due to this adoption. Finance leases are not material to the Company's consolidated financial statements and therefore are excluded from the following disclosures. S UPPLEMENTAL B ALANCE S HEET I NFORMATION Supplemental operating lease balance sheet information is summarized as follows: As of As of July 2, 2021 July 3, 2020 Operating lease right-of-use assets $ 66,373 $ 60,613 Accrued expenses (1) $ 10,020 $ 6,950 Operating lease liabilities 71,508 66,981 Total operating lease liabilities $ 81,528 $ 73,931 (1) The short term portion of the Operating lease liabilities is included within Accrued expenses on the Consolidated Balance Sheet. O THER S UPPLEMENTAL I NFORMATION Other supplemental operating lease information is summarized as follows: For the Fiscal Year Ended For the Fiscal Year Ended July 2, 2021 July 3, 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 7,923 $ 6,929 Right-of-use assets obtained in exchange for new lease liabilities $ 15,076 $ 19,942 Weighted average remaining lease term 8.2 years 9.3 years Weighted average discount rate 4.66 % 4.91 % M ATURITIES OF L EASE C OMMITMENTS Maturities of operating lease commitments as of July 2, 2021 were as follows: Fiscal Year Totals 2022 $ 13,626 2023 12,997 2024 12,137 2025 11,571 2026 9,682 Thereafter 40,017 Total lease payments 100,030 Less: imputed interest (18,502) Present value of operating lease liabilities $ 81,528 As previously disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended July 3, 2020, maturities of operating lease commitments were as follows: Fiscal Year Totals 2021 $ 9,572 2022 10,741 2023 10,272 2024 9,333 2025 9,356 Thereafter 44,763 Total lease payments 94,037 Less: imputed interest (20,106) Present value of operating lease liabilities $ 73,931 During fiscal 2021, 2020 and 2019 the Company recognized operating lease expense of $11,714, $10,029 and $8,710 respectively. There were no material restrictions, covenants, sale and leaseback transactions, variable lease payments or residual value guarantees imposed by the Company's leases at July 2, 2021. |
Income Taxes
Income Taxes | 12 Months Ended |
Jul. 02, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income before income taxes and income tax expense were as follows: Fiscal Years 2021 2020 2019 Income (loss) before income taxes: United States $ 85,101 $ 93,388 $ 57,281 Foreign (7,928) 545 2,246 $ 77,173 $ 93,933 $ 59,527 Tax provision (benefit): Federal: Current $ 12,157 $ 8,442 $ 11,454 Deferred (995) (1,077) (3,008) 11,162 7,365 8,446 State: Current 6,271 3,407 5,194 Deferred (2,689) (2,327) (1,421) 3,582 1,080 3,773 Foreign: Current 435 475 546 Deferred (50) (699) (13) 385 (224) 533 $ 15,129 $ 8,221 $ 12,752 The following is the reconciliation between the statutory Federal income tax rate and the Company’s effective income tax rate: Fiscal Years 2021 2020 2019 Tax provision at federal statutory rates 21.0 % 21.0 % 21.0 % State income tax, net of federal tax benefit 6.7 6.1 5.9 Research and development tax credits (10.9) (11.9) (4.5) Provision to return (1.3) (3.1) — Excess tax benefits related to stock compensation (3.7) (7.7) (4.5) Foreign income tax rate differential 0.9 0.1 0.1 Non-deductible compensation 3.6 2.6 2.0 Acquisition costs 0.4 — 0.1 Reserves for unrecognized income tax benefits 1.3 3.0 0.3 Tax rate changes — (0.5) — Valuation allowance 1.9 — — Other (0.3) (0.8) 1.0 19.6 % 8.8 % 21.4 % The effective tax rate for fiscal 2021 and 2020 differed from the Federal statutory rate primarily due to benefits related to research and development tax credits and excess tax benefits related to stock compensation, partially offset by additional tax expense related to state taxes and non-deductible compensation. During fiscal 2021, 2020 and 2019 the Company recognized a tax benefit of $2,831, $7,259 and $2,672 related to excess tax benefits on stock compensation, respectively. The components of the Company’s net deferred tax liabilities were as follows: As of July 2, 2021 July 3, 2020 Deferred tax assets: Inventory valuation and receivable allowances 15,039 12,066 Accrued compensation 5,421 5,941 Stock compensation 4,548 5,062 Federal and state tax credit carryforwards 17,405 11,782 Other accruals 994 1,086 Deferred compensation 930 930 Acquired net operating loss carryforward 10,487 425 Foreign net operating loss carryforward 1,703 453 Operating lease liabilities 21,889 20,035 Deferred revenue 2,899 781 Other 734 642 82,049 59,203 Valuation allowance (15,257) (11,264) Total deferred tax assets 66,792 47,939 Deferred tax liabilities: Prepaid expenses (984) (1,111) Property and equipment (17,734) (10,668) Intangible assets (58,839) (33,007) Operating lease right-of-use assets (17,987) (16,426) Other (58) (616) Total deferred tax liabilities (95,602) (61,828) Net deferred tax liabilities $ (28,810) $ (13,889) As reported: Deferred tax liabilities $ (28,810) $ (13,889) $ (28,810) $ (13,889) At July 2, 2021, the Company evaluated the need for a valuation allowance on deferred tax assets. In assessing whether the deferred tax assets are realizable, management considered whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the Company's past and recent operating performance and results, future taxable income including the reversal of existing deferred tax liabilities, and tax planning strategies. In fiscal year 2021, the Company recorded a valuation allowance on the net deferred tax assets of the Company’s subsidiary in Switzerland. The Company continues to conclude that certain state research and development tax credits carryforwards are not more likely than not to be realized, and as such, continues to maintain a valuation allowance on these carryforwards. The Company continues to conclude that all other deferred tax assets are more likely than not to be realized. Any future changes in the valuation allowance will impact income tax expense. The Company has state research and development tax credit carryforwards of $18,926, which will expire starting in fiscal year 2021 through fiscal year 2034. The Company is subject to taxation in the U.S. (Federal and state) and various foreign jurisdictions that it operates in. The Company has established reserves to provide for additional income taxes that management believes will more likely than not be due in future years as these previously filed tax returns are audited. These reserves have been established based upon management’s assessment as to the potential exposures. All tax reserves are analyzed quarterly and adjustments are made as events occur and warrant modification. The changes in the Company’s reserves for unrecognized income tax benefits are summarized as follows: Fiscal Years 2021 2020 Unrecognized tax benefits, beginning of period $ 4,117 $ 1,273 Increases for tax positions taken related to a prior period 113 2,146 Increases for tax positions taken during the current period 917 854 Increases for tax positions taken by an acquired company 2,348 — Decreases for tax positions taken related to a prior period (27) — Decreases for tax positions taken during current period — — Decreases for settlements of previously recognized positions — — Decreases as a result of a lapse of the applicable statute of limitations (1) (156) Unrecognized tax benefits, end of period $ 7,467 $ 4,117 The Company is currently under audit by the Internal Revenue Service for fiscal years 2016-2018. It is reasonably possible that within the next 12 months the Company’s unrecognized tax benefits, exclusive of interest, may decrease by up to $2,061 at the conclusion of the audit. We expect that the decrease, if recognized, would not affect the effective tax rate. The $7,467 of unrecognized tax benefits as of July 2, 2021, if released, would reduce income tax expense. The Company increased its unrecognized income tax benefits primarily due to a tax position previously taken on a tax return of an acquired company. The Company includes interest and penalties related to unrecognized tax benefits within the provision for income taxes. The total amount of gross interest and penalties accrued was $315 and $175 as of July 2, 2021 and July 3, 2020, respectively, and the amount of interest and penalties recognized in fiscal 2021, 2020 and 2019 was $139, $91 and $101, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jul. 02, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies L EGAL C LAIMS The Company is subject to litigation, claims, investigations and audits arising from time to time in the ordinary course of business. Although legal proceedings are inherently unpredictable, the Company believes that it has valid defenses with respect to any matters currently pending against the Company and intends to defend itself vigorously. The outcome of these matters, individually and in the aggregate, is not expected to have a material impact on the Company's cash flows, results of operations, or financial position. On June 23, 2021, Embedded Reps of America, LLC (“ERA”), a former sales representative, and James Mazzola, a principal of ERA, filed for binding arbitration related to the termination of ERA’s sales representative agreement raising multiple claims that aggregate to approximately $9,000 in direct damages, with treble damages requested on a number of those claims. ERA was a sales representative of Themis when Themis was acquired by Mercury. The sales representative agreement provided for termination by either party upon 30 days written notice with ERA entitled to commissions for orders obtained by ERA product shipment occurring prior to termination. The Company responded to the complaint on July 28, 2021. The Company believes the claims in the complaint are without merit and intends to defend itself vigorously. I NDEMNIFICATION O BLIGATIONS The Company's standard product sales and license agreements entered into in the ordinary course of business typically contain an indemnification provision pursuant to which the Company indemnifies, holds harmless, and agrees to reimburse the indemnified party for losses suffered or incurred by the indemnified party in connection with any patent, copyright or other intellectual property infringement claim by any third party with respect to the Company's products. Such provisions generally survive termination or expiration of the agreements. The potential amount of future payments the Company could be required to make under these indemnification provisions is, in some instances, unlimited. P URCHASE C OMMITMENTS As of July 2, 2021, the Company has entered into non-cancelable purchase commitments for certain inventory components and services used in its normal operations. The purchase commitments covered by these agreements are for less than one year and aggregate to $147,591. O THER As part of the Company's strategy for growth, the Company continues to explore acquisitions or strategic alliances. The associated acquisition costs incurred in the form of professional fees and services may be material to the future periods in which they occur, regardless of whether the acquisition is ultimately completed. The Company may elect from time to time to purchase and subsequently retire shares of common stock in order to settle an individual employees’ tax liability associated with vesting of a restricted stock award or exercise of stock options. These transactions are treated as a use of cash in financing activities in the Company's Statements of Cash Flows. |
Debt
Debt | 12 Months Ended |
Jul. 02, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Revolving Credit Facilities On September 28, 2018, the Company amended its Credit Agreement (the “Credit Agreement”) with a syndicate of commercial banks to increase and extend the borrowing capacity of the Revolver to a $750,000, 5-year revolving credit line, with the maturity extended to September 28, 2023 (the “Amended Credit Agreement”). The Company evaluated the Amended Credit Agreement under ASC 470, Debt , and determined that the amendment represented a modification of the Credit Agreement. Due to the increase in the borrowing capacity of the Revolver, new costs associated with the amendment and the previous balance of unamortized deferred financing costs totaling $3,025 , are being amortized to Other (expense) income, net on a straight line basis over the new term of the Revolver. During fiscal 2021, the Company borrowed a total of $200,000 on the Revolver to facilitate the acquisitions of POC and Pentek. The Company incurred interest expense from the Revolver of $1,222 and $1,006 for the fiscal years ended July 2, 2021 and July 3, 2020, respectively. There were also outstanding letters of credit of $963 as of July 2, 2021. Maturity The Revolver has a five Interest Rates and Fees Borrowings under the Revolver bear interest, at the Company’s option, at floating rates tied to LIBOR or the prime rate plus an applicable percentage. The applicable percentage is set at LIBOR plus a markup pursuant to a pricing grid based on the Company's total net leverage ratio. As of July 2, 2021, the applicable percentage was set at LIBOR plus 1.125% based on the Company's total net leverage ratio. In addition to interest on the aggregate outstanding principal amounts of any borrowings, the Company will also pay a quarterly commitment fee on the unutilized commitments under the Revolver. The applicable percentage is pursuant to a pricing grid based on the Company's total net leverage ratio. As of July 2, 2021, the stated interest rate for unutilized commitments was 0.20% per annum. The Company will also pay customary letter of credit and agency fees. Covenants and Events of Default The Revolver provides for customary negative covenants. The Revolver also requires the Company to comply with certain financial covenants, including a quarterly minimum consolidated cash interest charge ratio test and a quarterly maximum consolidated total net leverage ratio test. The Revolver also provides for customary representations and warranties, affirmative covenants and events of default. If an event of default occurs, the lenders under the Revolver will be entitled to take various actions, including the termination of unutilized commitments, the acceleration of amounts outstanding under the Revolver and all actions permitted to be taken by a secured creditor. As of July 2, 2021, the Company was in compliance with all covenants and conditions under the Revolver. Guarantees and Security |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jul. 02, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Pension Plan The Company maintains a pension plan (the “Plan”) for its Swiss employees, which is administered by an independent pension fund. The Plan is mandated by Swiss law and meets the criteria for a defined benefit plan under ASC 715, Compensation—Retirement Benefits (“ASC 715”), since participants of the Plan are entitled to a defined rate of return on contributions made. The independent pension fund is a multi-employer plan with unrestricted joint liability for all participating companies for which the Plan’s overfunding or underfunding is allocated to each participating company based on an allocation key determined by the Plan. The Company recognizes a net asset or liability for the Plan equal to the difference between the projected benefit obligation of the Plan and the fair value of the Plan’s assets as required by ASC 715. The funded status may vary from year to year due to changes in the fair value of the Plan’s assets and variations on the underlying assumptions of the projected benefit obligation of the Plan. In fiscal 2021, the independent pension fund changed the conversion rate for accumulated retirement savings leading to a Plan amendment. The Company’s results contain the effects of this change in conversion rates by the independent pension fund as prior service costs. These prior service costs are amortized from AOCI to net periodic benefit costs over approximately nine years. At July 2, 2021, the accumulated benefit obligation of the Plan equals the fair value of the Plan's assets. The Plan's funded status at July 2, 2021 and July 3, 2020 was a net liability of $9,807 and $11,877, respectively, which is recorded in other non-current liabilities on the Consolidated Balance Sheets. The Company recorded a net gain of $3,285 and a net loss of $1,768 in AOCI during the fiscal years ended July 2, 2021 and July 3, 2020, respectively. Total employer contributions to the Plan were $1,080 during the year ended July 2, 2021, and the Company's total expected employer contributions to the Plan during fiscal 2022 are $1,165. The following table reflects the total pension benefits expected to be paid from the Plan, which is funded from contributions by participants and the Company. Fiscal Year Total 2022 $ 893 2023 1,248 2024 1,454 2025 1,498 2026 1,574 Thereafter (next 5 years) 7,723 Total $ 14,390 The following table outlines the components of net periodic benefit cost of the Plan for the fiscal years ended July 2, 2021 and July 3, 2020: Fiscal Years Ended July 2, 2021 July 3, 2020 Service cost $ 1,708 $ 1,375 Interest cost 92 125 Expected return on assets (277) (233) Amortization of prior service cost (64) (63) Amortization net of loss 185 33 Settlement loss recognized 318 — Net periodic benefit cost $ 1,962 $ 1,237 The following table reflects the related actuarial assumptions used to determine net periodic benefit cost of the Plan for the fiscal years ended July 2, 2021 and July 3, 2020: Fiscal Years Ended July 2, 2021 July 3, 2020 Discount rate 0.30 % 0.30 % Expected rate of return on Plan assets 1.50 % 1.50 % Expected inflation 1.00 % 1.00 % Rate of compensation increases 1.50 % 1.50 % The calculation of the projected benefit obligation (“PBO”) utilized BVG 2020 Generational data for assumptions related to the mortality rates, disability rates, turnover rates, and early retirement ages. The PBO represents the present value of Plan benefits earned through the end of the year, with an allowance for future salary and pension increases as well as turnover rates. The following table presents the change in projected benefit obligation for the periods presented: Fiscal Years Ended July 2, 2021 July 3, 2020 Projected benefit obligation, beginning $ 29,955 $ 24,274 Service cost 1,708 1,375 Interest cost 92 125 Employee contributions 2,145 1,916 Actuarial (gain) loss (1,345) 2,387 Benefits paid (256) (906) Plan amendment (1,247) — Settlements (3,129) — Foreign exchange loss 691 784 Projected benefit obligation at end of year $ 28,614 $ 29,955 The following table presents the change in Plan assets for the periods presented: Fiscal Years Ended July 2, 2021 July 3, 2020 Fair value of Plan assets, beginning $ 18,078 $ 15,088 Actual return on Plan assets 474 582 Company contributions 1,080 911 Employee contributions 2,145 1,916 Benefits paid (256) (906) Settlements (3,129) — Foreign exchange gain 415 487 Fair value of Plan assets at end of year $ 18,807 $ 18,078 The following table presents the Company's reconciliation of funded status for the period presented: As of July 2, 2021 July 3, 2020 Projected benefit obligation at end of year $ 28,614 $ 29,955 Fair value of plan assets at end of year 18,807 18,078 Funded status $ (9,807) $ (11,877) The fair value of Plan assets were $18,807 at July 2, 2021. The Plan is denominated in a foreign currency, the Swiss Franc, which can have an impact on the fair value of Plan assets. The Plan was not subject to material fluctuations during the years ended July 2, 2021 or July 3, 2020. The Plan’s assets are administered by an independent pension fund foundation (the “foundation”). As of July 2, 2021, the foundation has invested the assets of the Plan in various investments vehicles, including cash, real estate, equity securities, and bonds. The investments are measured at fair value using a mix of Level 1, Level 2 and Level 3 inputs. 401(k) Plan The Company maintains a qualified 401(k) plan (the “401(k) Plan”) for its U.S. employees. During fiscal years 2021, 2020 and 2019, the Company matched employee contributions up to 3% of eligible compensation. The Company may also make optional contributions to the plan for any plan year at its discretion. Expense recognized by the Company for matching contributions related to the 401(k) plan was $7,876, $5,954, and $4,525 during the fiscal years ended July 2, 2021, July 3, 2020, and June 30, 2019, respectively. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Jul. 02, 2021 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity P REFERRED S TOCK The Company is authorized to issue 1,000 shares of preferred stock with a par value of $0.01 per share. S HELF R EGISTRATION S TATEMENT On September 14, 2020, the Company filed a shelf registration statement on Form S-3ASR with the SEC. The shelf registration statement, which was effective upon filing with the SEC, registered each of the following securities: debt securities; preferred stock; common stock; warrants; and units. The Company has an unlimited amount available under the shelf registration statement. Additionally, as part of the shelf registration statement, the Company has entered into an equity distribution agreement, which allows the Company to sell an aggregate of up to $200,000 of its common stock from time to time through its agents. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jul. 02, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation S TOCK I NCENTIVE P LANS The Board of Directors approved the Company’s 2018 Stock Incentive Plan (the “2018 Plan”) on July 23, 2018. The 2018 Plan became effective upon the approval of shareholders at the Company’s annual meeting held on October 24, 2018. The aggregate number of shares authorized for issuance under the 2018 Plan is 6,782 shares, with an additional 710 shares rolled into the 2018 Plan that were available for future grant under the Company’s 2005 Stock Incentive Plan, as amended and restated (the “2005 Plan”) and 3,000 shares approved by the Company's shareholders on October 28, 2020. The 2018 Plan replaced the 2005 Plan. The shares authorized for issuance under the 2018 Plan will continue to be increased by any future cancellations, forfeitures or terminations (other than by exercise) of awards under the 2005 Plan. The foregoing does not affect any outstanding awards under the 2005 Plan, which remain in full force and effect in accordance with their terms. The 2018 Plan provides for the grant of non-qualified and incentive stock options, restricted stock, stock appreciation rights and deferred stock awards to employees and non-employees. There were 4,604 shares available for future grant under the 2018 Plan at July 2, 2021. As part of the Company's ongoing annual equity grant program for employees, the Company grants performance-based restricted stock awards to certain executives and employees pursuant to the 2018 Plan. Performance awards vest based on the requisite service period subject to the achievement of specific financial performance targets. Based on the performance targets, some of these awards require graded vesting which results in more rapid expense recognition compared to traditional time-based vesting over the same vesting period. The Company monitors the probability of achieving the performance targets on a quarterly basis and may adjust periodic stock compensation expense accordingly based on its determination of the likelihood for reaching targets. The performance targets generally include the achievement of internal performance targets in relation to a peer group of companies. E MPLOYEE S TOCK P URCHASE P LAN The number of shares authorized for issuance under the Company’s 1997 Employee Stock Purchase Plan, as amended and restated (“ESPP”), is 2,300 shares, including 500 shares approved by the Company's shareholders on October 28, 2020. Under the ESPP, rights are granted to purchase shares of common stock at 85% of the lesser of the market value of such shares at either the beginning or the end of each six-month offering period. The ESPP permits employees to purchase common stock through payroll deductions, which may not exceed 10% of an employee’s compensation as defined in the ESPP. The number of shares issued under the ESPP during fiscal years 2021, 2020 and 2019 was 101, 89 and 102, respectively. Shares available for future purchase under the ESPP totaled 428 at July 2, 2021. S TOCK O PTION AND A WARD A CTIVITY The following table summarizes activity of the Company’s stock option plans since June 30, 2019: Options Outstanding Number of Weighted Average Weighted Average Aggregate Outstanding at June 30, 2019 4 $ 5.52 2.13 Granted — — Exercised (1) 5.52 Cancelled — — Outstanding at July 3, 2020 3 $ 5.52 1.12 Granted — — Exercised (3) 5.52 Cancelled — — Outstanding at July 2, 2021 — $ — — $ — Vested and expected to vest at July 2, 2021 — $ — — $ — Exercisable at July 2, 2021 — $ — — $ — The intrinsic value of the options exercised during fiscal years 2021 and 2020 was $183 and $67, respectively. There were no options exercised during fiscal 2019. Non-vested stock options are subject to the risk of forfeiture until the fulfillment of specified conditions. As of July 2, 2021, July 3, 2020 and June 30, 2019, there was no unrecognized compensation cost related to non-vested options granted under the Company’s stock plans. There were no stock options granted during fiscal years 2021, 2020 or 2019. The following table summarizes the status of the Company’s non-vested restricted stock awards since June 30, 2019: Non-Vested Restricted Stock Awards Number of Weighted Average Outstanding at June 30, 2019 1,046 $ 39.62 Granted 522 80.87 Vested (562) 31.40 Forfeited (49) 54.96 Outstanding at July 3, 2020 957 $ 61.59 Granted 570 76.03 Vested (436) 53.08 Forfeited (78) 69.54 Outstanding at July 2, 2021 1,013 $ 70.77 The total fair value of restricted stock awards vested during fiscal years 2021, 2020 and 2019 was $34,342, $46,089 and $24,596, respectively. Non-vested restricted stock awards are subject to the risk of forfeiture until the fulfillment of specified conditions. As of July 2, 2021, there was $48,629 of total unrecognized compensation cost related to non-vested restricted stock awards granted under the Company’s stock plans that is expected to be recognized over a weighted-average period of 2.4 years from July 2, 2021. As of July 3, 2020, there was $44,690 of total unrecognized compensation cost related to non-vested restricted stock awards granted under the Company’s stock plans that is expected to be recognized over a weighted-average period of 2.4 years from July 3, 2020. S TOCK - BASED C OMPENSATION E XPENSE The Company recognizes expense for its share-based payment plans in the Consolidated Statements of Operations and Comprehensive Income in accordance with ASC 718. The Company had $796 and $562 of capitalized stock-based compensation expense on the Consolidated Balance Sheets as of July 2, 2021 and July 3, 2020, respectively. Under the fair value recognition provisions of ASC 718, stock-based compensation cost is measured at the grant date based on the value of the award and is recognized as expense over the service period. The following table presents share-based compensation expenses from continuing operations included in the Company’s Consolidated Statements of Operations and Comprehensive Income: Fiscal Years Ended July 2, 2021 July 3, 2020 June 30, 2019 Cost of revenues $ 2,037 $ 989 $ 820 Selling, general and administrative 21,866 21,688 16,188 Research and development 4,387 3,861 2,414 Stock-based compensation expense before tax 28,290 26,538 19,422 Income taxes (7,355) (6,900) (5,263) Stock-based compensation expense, net of income taxes $ 20,935 $ 19,638 $ 14,159 |
Operating Segment, Geographic I
Operating Segment, Geographic Information and Significant Customers | 12 Months Ended |
Jul. 02, 2021 | |
Segment Reporting [Abstract] | |
Operating Segment, Geographic Information and Significant Customers | Operating Segment, Geographic Information and Significant Customers Operating segments are defined as components of an enterprise evaluated regularly by the Company's chief operating decision maker (“CODM”) in deciding how to allocate resources and assess performance. During the first quarter of fiscal 2021, the Company reorganized its internal reporting unit structure to align with the Company's market and brand strategy as well as promote scale as the organization continues to grow. The Company evaluated this reorganization under ASC 280 to determine whether this change has impacted the Company's single operating and reportable segment. The Company concluded this change had no effect given the CODM continues to evaluate and manage the Company on the basis of one operating and reportable segment. The Company utilized the management approach for determining its operating segment in accordance with ASC 280. The geographic distribution of the Company’s revenues as determined by order origination based on the country in which the Company's legal subsidiary is domiciled is summarized as follows: U.S. Europe Asia Pacific Eliminations Total YEAR ENDED JULY 2, 2021 Net revenues to unaffiliated customers $ 876,479 $ 47,119 $ 398 $ — $ 923,996 Inter-geographic revenues 1,561 1,985 — (3,546) — Net revenues $ 878,040 $ 49,104 $ 398 $ (3,546) $ 923,996 Identifiable long-lived assets (1) $ 123,009 $ 5,509 $ 6 $ — $ 128,524 YEAR ENDED JULY 3, 2020 Net revenues to unaffiliated customers $ 744,270 $ 50,092 $ 2,248 $ — $ 796,610 Inter-geographic revenues 4,938 3,067 — (8,005) — Net revenues $ 749,208 $ 53,159 $ 2,248 $ (8,005) $ 796,610 Identifiable long-lived assets (1) $ 82,588 $ 5,144 $ 5 $ — $ 87,737 YEAR ENDED JUNE 30, 2019 Net revenues to unaffiliated customers $ 599,422 $ 49,332 $ 5,990 $ — $ 654,744 Inter-geographic revenues 10,570 1,343 — (11,913) — Net revenues $ 609,992 $ 50,675 $ 5,990 $ (11,913) $ 654,744 Identifiable long-lived assets (1) $ 54,952 $ 5,037 $ 12 $ — $ 60,001 (1) Identifiable long-lived assets exclude ROU assets, goodwill and intangible assets. In recent years, the Company completed a series of acquisitions that changed its technological capabilities, applications and end markets. As these acquisitions and changes occurred, the Company's proportion of revenue derived from the sale of components in different technological areas, and modules, sub-assemblies and integrated subsystems which combine technologies into more complex diverse products has shifted. The following tables present revenue consistent with the Company's strategy of expanding its technological capabilities and program content. As additional information related to the Company’s products by end user, application, product grouping and/or platform is attained, the categorization of these products can vary over time. When this occurs, the Company reclassifies revenue by end user, application, product grouping and/or platform for prior periods. Such reclassifications typically do not materially change the underlying trends of results within each revenue category. The following table presents the Company's net revenue by end market for the periods presented: Fiscal Years Ended July 2, 2021 July 3, 2020 June 30, 2019 Domestic (1) $ 795,988 $ 704,722 $ 580,935 International/Foreign Military Sales (2) 128,008 91,888 73,809 Total Net Revenue $ 923,996 $ 796,610 $ 654,744 (1) Domestic revenues consist of sales where the end user is within the U.S., as well as sales to prime defense contractor customers where the ultimate end user location is not defined. (2) International/Foreign Military Sales consist of sales to U.S. prime defense contractor customers where the end user is outside the U.S., foreign military sales through the U.S. government, and direct sales to non-U.S. based customers intended for end use outside of the U.S. The following table presents the Company's net revenue by end application for the periods presented: Fiscal Years Ended July 2, 2021 July 3, 2020 June 30, 2019 Radar (1) $ 289,172 $ 233,967 $ 164,046 Electronic Warfare (2) 139,168 156,666 128,841 Other Sensor and Effector (3) 98,112 105,175 90,245 Total Sensor and Effector 526,452 495,808 383,132 C4I (4) 307,978 207,000 183,172 Other (5) 89,566 93,802 88,440 Total Net Revenues $ 923,996 $ 796,610 $ 654,744 (1) Radar includes end-use applications where radio frequency signals are utilized to detect, track and identify objects. (2) Electronic Warfare includes end-use applications comprising the offensive and defensive use of the electromagnetic spectrum. (3) Other Sensor and Effector products include all Sensor and Effector end markets other than Radar and Electronic Warfare. (4) C4I includes rugged secure rackmount servers that are designed to drive the most powerful military processing applications. (5) Other products include all component and other sales where the end use is not specified. The following table presents the Company's net revenue by product grouping for the periods presented: Fiscal Years Ended July 2, 2021 July 3, 2020 June 30, 2019 Components (1) $ 176,234 $ 227,364 $ 184,870 Modules and Sub-assemblies (2) 156,557 131,177 180,873 Integrated Subsystems (3) 591,205 438,069 289,001 Total Net Revenues $ 923,996 $ 796,610 $ 654,744 (1) Components include technology elements typically performing a single, discrete technological function, which when physically combined with other components may be used to create a module or sub-assembly. Examples include but are not limited to power amplifiers and limiters, switches, oscillators, filters, equalizers, digital and analog converters, chips, MMICs (monolithic microwave integrated circuits), and memory and storage devices. (2) Modules and Sub-assemblies include combinations of multiple functional technology elements and/or components that work together to perform multiple functions but are typically resident on or within a single board or housing. Modules and sub-assemblies may in turn be combined to form an integrated subsystem. Examples of modules and sub-assemblies include but are not limited to embedded processing modules, embedded processing boards, switch fabric boards, high speed input/output boards, digital receiver boards, graphics and video processing and Ethernet and IO (input-output) boards, multi-chip modules, integrated radio frequency and microwave multi-function assemblies, tuners and transceivers. (3) Integrated Subsystems include multiple modules and/or sub-assemblies combined with a backplane or similar functional element and software to enable a solution. These are typically but not always integrated within a chassis and with cooling, power and other elements to address various requirements and are also often combined with additional technologies for interaction with other parts of a complete system or platform. Integrated subsystems also include spare and replacement modules and sub-assemblies sold as part of the same program for use in or with integrated subsystems sold by the Company. The following table presents the Company's net revenue by platform for the periods presented: Fiscal Years Ended July 2, 2021 July 3, 2020 June 30, 2019 Airborne (1) $ 416,877 $ 397,553 $ 306,412 Land (2) 182,591 102,956 83,034 Naval (3) 187,205 166,912 136,966 Other (4) 137,323 129,189 128,332 Total Net Revenues $ 923,996 $ 796,610 $ 654,744 (1) Airborne platform includes products that relate to personnel, equipment or pieces of equipment designed for airborne applications. (2) Land platform includes products that relate to fixed or mobile equipment, or pieces of equipment for personnel, weapon systems, vehicles and support elements operating on land. (3) Naval platform includes products that relate to personnel, equipment or pieces of equipment designed for naval operations. (4) All platforms other than Airborne, Land or Naval. Customers comprising 10% or more of the Company’s revenues for the periods shown below are as follows: Fiscal Years Ended July 2, 2021 July 3, 2020 June 30, 2019 Raytheon Technologies 19 % 16 % 20 % Lockheed Martin Corporation 15 % 16 % 17 % U.S. Navy 12 % — % — % 46 % 32 % 37 % While the Company typically has customers from which it derives 10% or more of its revenue, the sales to each of these customers are spread across multiple programs and platforms. There were no programs comprising 10% or more of the Company's revenues for the years ended July 2, 2021, July 3, 2020 and June 30, 2019. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jul. 02, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company has evaluated subsequent events from the date of the Consolidated Balance Sheet through the date the consolidated financial statements were issued. On August 2, 2021, the Company initiated a workforce reduction of approximately 90 employees based on changes in the business environment and to align with 1MPACT, the Company’s value creation initiative, resulting in expected charges of $9,400 in the fiscal quarter ending October 1, 2021. These charges include $5,800 of employee separation costs and $3,600 of third-party consulting costs. These costs will be classified as restructuring and other charges within the Company’s statement of operations and other comprehensive income for the fiscal quarter ending October 1, 2021. |
Supplementary Information (Unau
Supplementary Information (Unaudited) | 12 Months Ended |
Jul. 02, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Supplementary Information (Unaudited) | S UPPLEMENTARY I NFORMATION (U NAUDITED ) The following sets forth certain unaudited consolidated quarterly statements of operations data for each of the Company’s last eight quarters. In management’s opinion, this quarterly information reflects all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation for the periods presented. Such quarterly results are not necessarily indicative of future results of operations and should be read in conjunction with the audited consolidated financial statements of the Company and the notes thereto. 2021 (In thousands, except per share data) 1ST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER Net revenues $ 205,621 $ 210,676 $ 256,857 $ 250,842 Gross margin $ 88,119 $ 88,667 $ 105,623 $ 102,779 Income from operations $ 18,770 $ 18,113 $ 21,712 $ 22,406 Income before income taxes $ 17,996 $ 17,119 $ 20,997 $ 21,061 Income tax provision $ 2,198 $ 4,433 $ 5,362 $ 3,136 Net income $ 15,798 $ 12,686 $ 15,635 $ 17,925 Net income per share: Basic net income per share $ 0.29 $ 0.23 $ 0.28 $ 0.32 Diluted net income per share $ 0.29 $ 0.23 $ 0.28 $ 0.32 2020 (In thousands, except per share data) 1ST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER Net revenues $ 177,304 $ 193,913 $ 208,016 $ 217,377 Gross margin $ 78,400 $ 88,506 $ 93,325 $ 96,613 Income from operations $ 17,476 $ 20,825 $ 26,342 $ 26,419 Income before income taxes $ 17,229 $ 20,786 $ 28,928 $ 26,990 Income tax (benefit) provision $ (2,018) $ 5,110 $ 5,363 $ (234) Net income $ 19,247 $ 15,676 $ 23,565 $ 27,224 Net income per share: Basic net income per share $ 0.35 $ 0.29 $ 0.43 $ 0.50 Diluted net income per share $ 0.35 $ 0.29 $ 0.43 $ 0.49 Due to the effects of rounding, the sum of the four quarters does not equal the annual total. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jul. 02, 2021 | |
Accounting Policies [Abstract] | |
Principles Of Consolidation | P RINCIPLES OF C ONSOLIDATION The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated. B ASIS OF P RESENTATION Effective July 1, 2019, the Company's fiscal year has changed to the 52-week or 53-week period ending on the Friday closest to the last day in June. All references to fiscal 2021 are to the 52-week period from July 4, 2020 to July 2, 2021. All references to fiscal 2020 are to the 53-week period from July 1, 2019 to July 3, 2020. All references to fiscal 2019 are to the 52-week period from and July 1, 2018 to June 30, 2019. There have been no reclassifications of prior comparable periods due to this change. |
Use Of Estimates | U SE OF E STIMATES The preparation of financial statements in conformity with Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
Business Combinations | B USINESS C OMBINATIONS The Company utilizes the acquisition method of accounting under ASC 805, Business Combinations, (“ASC 805”), for all transactions and events in which it obtains control over one or more other businesses, to recognize the fair value of all assets and liabilities acquired, even if less than one hundred percent ownership is acquired, and in establishing the acquisition date fair value as of the measurement date for all assets and liabilities assumed. The Company also utilizes ASC 805 for the initial recognition and measurement, subsequent measurement and accounting, and disclosure of assets and liabilities arising from contingencies in business combinations. Other estimates include: • estimated step-ups for fixed assets and inventory; • estimated fair values of intangible assets; and • estimated income tax assets and liabilities assumed from the acquiree. |
Lessee, Leases | L EASES The Company measures its lease obligations in accordance with ASC 842, Leases , (“ASC 842”), which requires lessees to recognize a right-of-use (“ROU”) asset and lease liability for most lease arrangements. Effective July 1, 2019, the Company adopted ASC 842 using the optional transition method and, as a result, there have been no reclassifications of prior comparable periods due to this adoption. The Company has arrangements involving the lease of facilities, machinery and equipment. Under ASC 842, at inception of the arrangement, the Company determines whether the contract is or contains a lease and whether the lease should be classified as an operating or a financing lease. This determination, among other considerations, involves an assessment of whether the Company can control the underlying asset and have the right to obtain substantially all of the economic benefits or outputs from the asset. The Company recognizes ROU assets and lease liabilities as of the lease commencement date based on the net present value of the future minimum lease payments over the lease term. ASC 842 requires lessees to use the rate implicit in the lease unless it is not readily determinable and then it may use its incremental borrowing rate (“IBR”) to discount the future minimum lease payments. Most of the Company's lease arrangements do not provide an implicit rate; therefore, the Company uses its IBR to discount the future minimum lease payments. The Company determines its IBR with its credit rating and current economic information available as of the commencement date, as well as the identified lease term. During the assessment of the lease term, the Company considers its renewal options and extensions within the arrangements and the Company includes these options when it is reasonably certain to extend the term of the lease. The Company has lease arrangements with both lease and non-lease components. Consideration is allocated to lease and non-lease components based on estimated standalone prices. The Company has elected to exclude non-lease components from the calculation of its ROU assets and lease liabilities. In the Company's adoption of ASC 842, leases with an initial term of 12 months or less will not result in recognition of a ROU asset and a lease liability and will be expensed as incurred over the lease term. Leases of this nature were immaterial to the Company’s consolidated financial statements. The Company has lease arrangements that contain incentives for tenant improvements as well as fixed rent escalation clauses. For contracts with tenant improvement incentives that are determined to be a leasehold improvement that will be owned by the lessee and the Company is reasonably certain to exercise, it records a reduction to the lease liability and amortizes the incentive over the identified term of the lease as a reduction to rent expense. The Company records rental expense on a straight-line basis over the identified lease term on contracts with rent escalation clauses. Finance leases are not material to the Company's consolidated financial statements and the Company is not a lessor in any material lease arrangements. There are no material restrictions, covenants, sale and leaseback transactions, variable lease payments or residual value guarantees in the Company's lease arrangements. Operating leases are included in Operating lease right-of-use assets, Accrued expenses, and Operating lease liabilities in the Company's Consolidated Balance Sheets. The standard had no impact on the Company's Consolidated Statements of Operations and Comprehensive Income or Consolidated Statements of Cash Flows. See Note J to the consolidated financial statements for more information regarding our obligations under leases. |
Revenue Recognition | R EVENUE R ECOGNITION The Company recognizes revenue in accordance with the five step model set forth by ASC 606, Revenue from Contracts with Customers , (“ASC 606”), which involves identification of the contract(s), identification of performance obligations in the contract, determination of the transaction price, allocation of the transaction price to the previously identified performance obligations, and revenue recognition as the performance obligations are satisfied. During step one of the five step model, the Company considers whether contracts should be combined or segmented, and based on this assessment, the Company combines closely related contracts when all the applicable criteria are met. The combination of two or more contracts requires judgment in determining whether the intent of entering into the contracts was effectively to enter into a single contract, which should be combined to reflect an overall profit rate. Similarly, the Company may separate an arrangement, which may consist of a single contract or group of contracts, with varying rates of profitability, only if the applicable criteria are met. Judgment also is involved in determining whether a single contract or group of contracts may be segmented based on how the arrangement and the related performance criteria were negotiated. The conclusion to combine a group of contracts or segment a contract could change the amount of revenue and gross profit recorded in a given period. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when the performance obligation is satisfied. Certain contracts with customers require the Company to perform tests of its products prior to shipment to ensure their performance complies with the Company’s published product specifications and, on occasion, with additional customer-requested specifications. In these cases, the Company conducts such tests and, if they are completed successfully, includes a written confirmation with each order shipped. As a result, at the time of each product shipment, the Company believes that no further customer testing requirements exist and that there is no uncertainty of acceptance by its customer. The Company's contracts with customers generally do not include a right of return relative to delivered products. In certain cases, contracts are modified to account for changes in the contract specifications or requirements. In most instances, contract modifications are accounted for as part of the existing contract. Certain contracts with customers have options for the customer to acquire additional goods or services. In most cases the pricing of these options are reflective of the standalone selling price of the good or service. These options do not provide the customer with a material right and are accounted for only when the customer exercises the option to purchase the additional goods or services. If the option on the customer contract was not indicative of the standalone selling price of the good or service, the material right would be accounted for as a separate performance obligation. The Company is a leading technology company serving the aerospace and defense industry, positioned at the intersection of high-tech and defense. Revenues are derived from the sales of products that are grouped into one of the following three categories: (i) components; (ii) modules and sub-assemblies; and (iii) integrated subsystems. The Company also generates revenues from the performance of services, including systems engineering support, consulting, maintenance and other support, testing and installation. Each promised good or service within a contract is accounted for separately under the guidance of ASC 606 if they are distinct. Promised goods or services not meeting the criteria for being a distinct performance obligation are bundled into a single performance obligation with other goods or services that together meet the criteria for being distinct. The appropriate allocation of the transaction price and recognition of revenue is then determined for the bundled performance obligation. Once the Company identifies the performance obligations, the Company then determines the transaction price, which includes estimating the amount of variable consideration to be included in the transaction price, if any. Variable consideration typically arises due to volume discounts, or other provisions that can either decrease or increase the transaction price. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the method the Company expects to better predict the amount of consideration to which it will be entitled. The determination of the estimates for variable consideration require judgment, and are based on past history with similar contracts and anticipated performance. Further, variable consideration is only included in the determination of the transaction price if it is probable that a significant reversal in the amount of revenue recognized will not occur. There are no constraints on the variable consideration recorded. For contracts with multiple performance obligations, the transaction price is allocated to each performance obligation using the standalone selling price of each distinct good or service in the contract. Standalone selling prices of the Company’s goods and services are generally not directly observable. Accordingly, the primary method used to estimate standalone selling price is the expected cost plus a margin approach, under which the Company forecasts the expected costs of satisfying a performance obligation and then adds an appropriate margin for that distinct good or service. The objective of the expected cost plus a margin approach is to determine the price at which the Company would transact if the product or service were sold by the Company on a standalone basis. The Company's determination of the expected cost plus a margin approach involves the consideration of several factors based on the specific facts and circumstances of each contract. Specifically, the Company considers the cost to produce the deliverable, the anticipated margin on that deliverable, the selling price and profit margin for similar parts, the Company’s ongoing pricing strategy and policies, often based on the price list established and updated by management on a regular basis, the value of any enhancements that have been built into the deliverable and the characteristics of the varying markets in which the deliverable is sold. The Company analyzes the standalone selling prices used in its allocation of transaction price on contracts at least annually. Standalone selling prices will be analyzed on a more frequent basis if a significant change in the Company’s business necessitates a more frequent analysis or if the Company experiences significant variances in its selling prices. Revenue recognized at a point in time generally relates to contracts that include a combination of components, modules and sub-assemblies, integrated subsystems and related system integration or other services. Contracts with distinct performance obligations recognized at a point in time, with or without an allocation of the transaction price, totaled 58%, 73% and 77% of revenues in the fiscal years ended July 2, 2021, July 3, 2020 and June 30, 2019, respectively. Revenue is recognized at a point in time for these products and services (versus over time recognition) due to the following: (i) customers are only able to consume the benefits provided by the Company upon completion of the product or service; (ii) customers do not control the product or service prior to completion; and (iii) the Company does not have an enforceable right to payment at all times for performance completed to date. Accordingly, there is little judgment in determining when control of the good or service transfers to the customer, and revenue is generally recognized upon shipment (for goods) or completion (for services). The Company engages in long-term contracts for development, production and service activities and recognizes revenue for performance obligations over time. These long-term contracts involve the design, development, manufacture, or modification of complex modules and sub-assemblies or integrated subsystems and related services. Revenue is recognized over time, due to the fact that: (i) the Company’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced; and (ii) the Company’s performance creates an asset with no alternative use to the Company and the Company has an enforceable right to payment for performance completed to date. The Company considers the nature of these contracts and the types of products and services provided when determining the proper accounting for a particular contract. These contracts include both fixed-price and cost reimbursable contracts. The Company’s cost reimbursable contracts typically include cost-plus fixed fee and time and material (“T&M”) contracts. For long-term contracts, the Company typically leverages the input method, using a cost-to-cost measure of progress. The Company believes that this method represents the most faithful depiction of the Company’s performance because it directly measures value transferred to the customer. Contract estimates and estimates of any variable consideration are based on various assumptions to project the outcome of future events that may span several years. These assumptions include: the amount of time to complete the contract, including the assessment of the nature and complexity of the work to be performed; the cost and availability of materials; the availability of subcontractor services and materials; and the availability and timing of funding from the customer. The Company bears the risk of changes in estimates to complete on a fixed-price contract which may cause profit levels to vary from period to period. For cost reimburseable contracts, the Company is reimbursed periodically for allowable costs and is paid a portion of the fee based on contract progress. In the limited instances where the Company enters into T&M contracts, revenue recognized reflects the number of direct labor hours expended in the performance of a contract multiplied by the contract billing rate, as well as reimbursement of other direct billable costs. For T&M contracts, the Company recognizes revenue in the amount for which the Company has a right to invoice the customer based on the control transferred to the customer. For over time contracts, the Company recognizes anticipated contract losses as soon as they become known and estimable. Accounting for long-term contracts requires significant judgment relative to estimating total contract revenues and costs, in particular, assumptions relative to the amount of time to complete the contract, including the assessment of the nature and complexity of the work to be performed. The Company’s estimates are based upon the professional knowledge and experience of its engineers, program managers and other personnel, who review each long-term contract monthly to assess the contract’s schedule, performance, technical matters and estimated cost at completion. Changes in estimates are applied retrospectively and when adjustments in estimated contract costs are identified, such revisions may result in current period adjustments to earnings applicable to performance in prior periods. Total revenue recognized under long-term contracts over time was 42%, 27% and 23% of revenues in the fiscal years ended July 2, 2021, July 3, 2020 and June 30, 2019, respectively. The Company generally does not provide its customers with rights of product return other than those related to assurance warranty provisions that permit repair or replacement of defective goods over a period of 12 to 36 months. The Company accrues for anticipated warranty costs upon product shipment. The Company does not consider activities related to such assurance warranties, if any, to be a separate performance obligation. The Company does offer separately priced extended warranties which generally range from 12 to 36 months that are treated as separate performance obligations. The transaction price allocated to extended warranties is recognized over time in proportion to the costs expected to be incurred in satisfying the obligations under the contract. On long-term contracts, the portion of the payments retained by the customer is not considered a significant financing component because most contracts have a duration of less than one year and payment is received as progress is made. Many of the Company's long-term contracts have milestone payments, which align the payment schedule with the progress towards completion on the performance obligation. On some contracts, the Company may be entitled to receive an advance payment, which is not considered a significant financing component because it is used to facilitate inventory demands at the onset of a contract and to safeguard the Company from the failure of the other party to abide by some or all of their obligations under the contract. All revenues are reported net of government assessed taxes (e.g., sales taxes or value-added taxes). |
Contract Balances | C ONTRACT B ALANCES |
Cash And Cash Equivalents | C ASH AND C ASH E QUIVALENTS |
Fair Value Of Financial Instruments | F AIR V ALUE OF F INANCIAL I NSTRUMENTS The Company measures at fair value certain financial assets and liabilities, including cash equivalents, restricted cash and contingent consideration. ASC 820, Fair Value Measurement and Disclosures , specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. These two types of inputs have created the following fair-value hierarchy: Level 1—Quoted prices for identical instruments in active markets; Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. |
Concentration Of Credit Risk | C ONCENTRATION OF C REDIT R ISK Financial instruments that potentially expose the Company to concentrations of credit risk consist principally of cash, cash equivalents and accounts receivable. The Company places its cash and cash equivalents with financial institutions of high credit quality. As of July 2, 2021 and July 3, 2020, the Company had $113,839 and $226,838, respectively, of cash and cash equivalents on deposit or invested with its financial and lending institutions. The Company provides credit to customers in the normal course of business. The Company performs ongoing credit evaluations of its customers’ financial condition and limits the amount of credit extended when deemed necessary. As of July 2, 2021, five customers accounted for 60% of the Company's accounts receivable, unbilled receivables and costs in excess of billings. As of July 3, 2020, five customers accounted for 52% of the Company’s accounts receivable, unbilled receivables and costs in excess of billings. The Company maintains an allowance for credit losses to provide for the estimated amount of receivables that will not be fully collected. The allowance is based on the assessment of the following factors: customer creditworthiness; historical payment experience; age of outstanding receivables; and any applicable collateral. |
Inventory | I NVENTORY Inventory is stated at the lower of cost (first-in, first-out) or net realizable value, and consists of materials, labor and overhead. On a quarterly basis, the Company evaluates inventory for net realizable value. Once an item is written down, the value becomes the new inventory cost basis. The Company reduces the value of inventory for excess and obsolete inventory, consisting of on-hand and non-cancelable on-order inventory in excess of estimated usage. The excess and obsolete inventory evaluation is based upon assumptions about future demand, product mix and possible alternative uses. |
Segment Information | S EGMENT I NFORMATION The Company uses the management approach for segment disclosure, which designates the internal organization that is used by management for making operating decisions and assessing performance as the source of its reportable segments. The Company manages its business on the basis of one reportable segment, as a leading technology company serving the aerospace and defense industry, positioned at the intersection of high-tech and defense. |
Goodwill And Intangible Assets | G OODWILL AND I NTANGIBLE A SSETS Goodwill is the amount by which the purchase price of a business acquisition exceeded the fair values of the net identifiable assets on the date of purchase (see Note G). In accordance with the requirements of Intangibles-Goodwill and Other (“ASC 350”) Goodwill is not amortized. Goodwill is assessed for impairment at least annually, on a reporting unit basis, or when events and circumstances occur indicating that the recorded goodwill may be impaired. If the book value of a reporting unit exceeds its fair value, the implied fair value of goodwill is compared with the carrying amount of goodwill. If the carrying amount of goodwill exceeds the implied fair value, an impairment loss is recorded in an amount equal to that excess. |
Long-Lived Assets | L ONG - LIVED A SSETS Long-lived assets primarily include property and equipment, intangible assets and ROU assets. The Company regularly evaluates its long-lived assets for events and circumstances that indicate a potential impairment in accordance with ASC 360, Property, Plant, and Equipment (“ASC 360”). The Company reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate. Each impairment test is based on a comparison of the estimated undiscounted cash flows of the asset as compared to the recorded value of the asset. If impairment is indicated, the asset is written down to its estimated fair value. |
Property And Equipment | Property and equipment are the long-lived, physical assets of the Company acquired for use in the Company’s normal business operations and are not intended for resale by the Company. These assets are recorded at cost. Renewals and betterments that increase the useful lives of the assets are capitalized. Repair and maintenance expenditures that increase the efficiency of the assets are expensed as incurred. Equipment under capital lease is recorded at the present value of the minimum lease payments required during the lease period. Depreciation is based on the estimated useful lives of the assets using the straight-line method (see Note F).As assets are retired or sold, the related cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations.Expenditures for major software purchases and software developed for internal use are capitalized and depreciated using the straight-line method over the estimated useful lives of the related assets, which are generally three years. For software developed for internal use, all external direct costs for material and services and certain payroll and related fringe benefit costs are capitalized in accordance with ASC 350. During fiscal 2021, 2020 and 2019, the Company capitalized $1,640, $905 and $749 of software development costs, respectively. |
Income Taxes | I NCOME T AXES The Company accounts for income taxes under ASC 740, Income Taxes (“ASC 740”). The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the Company’s consolidated financial statements. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates for the year in which the differences are expected to reverse. The Company records a valuation allowance against net deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. ASC 740 requires a two-step approach to recognizing and measuring uncertain tax positions. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination. If the tax position is deemed more-likely-than-not to be sustained, the tax position is then assessed to determine the amount of benefit to recognize in the financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company recognizes interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. |
Product Warranty Accrual | P RODUCT W ARRANTY A CCRUAL |
Research And Development Costs | R ESEARCH AND D EVELOPMENT C OSTS Research and development costs are expensed as incurred. Research and development costs are primarily made up of labor charges and prototype material and development expenses. |
Stock-Based Compensation | S TOCK - BASED C OMPENSATION |
Retirement of Common Stock | R ETIREMENT OF C OMMON S TOCK Stock that is repurchased or received in connection with the vesting of restricted stock is retired immediately upon the Company’s repurchase. The Company accounts for this under the cost method and upon retirement the excess amount over par value is charged against additional paid-in capital. |
Net Earnings Per Share | N ET E ARNINGS P ER S HARE |
Accumulated Other Comprehensive Income | A CCUMULATED O THER C OMPREHENSIVE I NCOME ( L OSS) |
Foreign Currency | F OREIGN C URRENCY Local currencies are the functional currency for the Company’s subsidiaries in Switzerland, the United Kingdom, France, Japan, Spain and Canada. The accounts of foreign subsidiaries are translated using exchange rates in effect at period-end for assets and liabilities and at average exchange rates during the period for results of operations. The related translation adjustments are reported in accumulated other comprehensive income in shareholders’ equity. Gains (losses) resulting from non-U.S. currency transactions are included in Other income (expense), net in the Consolidated Statements of Operations and Comprehensive Income and were immaterial for all periods presented. |
Recently Issued And Adopted Accounting Pronouncements | R ECENTLY I SSUED A CCOUNTING P RONOUNCEMENTS In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, an amendment of the FASB Accounting Standards Codification. The amendments in this ASU simplify the accounting for income taxes by removing certain exceptions for intraperiod tax allocations and deferred tax liabilities for equity method investments and add guidance as to whether a step-up in tax basis of goodwill relates to a business combination or a separate transaction. This ASU is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company does not expect this guidance to have a material impact to its consolidated financial statements or related disclosures. R ECENTLY A DOPTED A CCOUNTING P RONOUNCEMENTS Effective April 3, 2021, the Company adopted ASU No. 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Topic 715): Changes to the Disclosure Requirements for Defined Benefit Plans , an amendment of the FASB Accounting Standards Codification. The amendments in this ASU remove disclosures that no longer are considered cost-beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. For public business entities, the standard is effective for fiscal years ending after December 15, 2020. The ASU requires retrospective adoption and permits early adoption for all entities. This adoption did not have a material impact on the Company's consolidated financial statements or related disclosures. Effective July 4, 2020, the Company adopted ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which broadens the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. This ASU requires an entity to record an allowance for credit losses for certain financial instruments and financial assets, including trade receivables, based on expected losses rather than incurred losses. The Company will rely on historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of the reported amount and will exercise judgment in determining the relevant information and estimation methods that are appropriate in measurement of the credit losses. This adoption did not have a material impact to the Company's consolidated financial statements or related disclosures. Effective July 4, 2020 the Company adopted ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . This ASU eliminates the requirement to measure the implied fair value of goodwill by assigning the fair value of a reporting unit to all assets and liabilities within that unit, the Step 2 test, from the goodwill impairment test. Instead, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited by the amount of goodwill in that reporting unit. This adoption did not have a material impact on the Company's consolidated financial statements or related disclosures. Effective July 4, 2020 the Company adopted ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40) , an amendment of the FASB Accounting Standards Codification. The ASU provides guidance to determine whether to capitalize implementation costs of a cloud computing arrangement that is a service contract or expense as incurred. Costs of arrangements that do not include a software license should be accounted for as a service contract and expensed as incurred. This adoption did not have a material impact to the Company's consolidated financial statements or related disclosures. Effective October 3, 2020, the Company adopted SEC Final Rule Release No. 33-10786, Amendments to Financial Disclosures About Acquired and Disposed Businesses, which includes amendments to the SEC's rules and forms related to the disclosure of financial information regarding acquired or disposed businesses. The amendments are intended to improve the financial information about acquired or disposed businesses provided to investors, facilitate more timely access to capital and reduce the complexity and costs of preparing disclosures. Among other changes, the amendments impact SEC rules relating to: the definition of “significant” subsidiaries; requirements to provide financial statements for “significant” acquisitions; and the formulation and usage of pro forma financial information. The final rule is applicable for fiscal years beginning after December 31, 2020, with early adoption permitted as long as all amendments are adopted in their entirety. The Company early adopted this final rule in conjunction with its acquisition of Physical Optics Corporation ("POC") on December 30, 2020. This adoption did not have a material impact on the Company's consolidated financial statements or related disclosures. |
Pension and Other Postretirement Plans, Pensions, Policy | The Company recognizes a net asset or liability for the Plan equal to the difference between the projected benefit obligation of the Plan and the fair value of the Plan’s assets as required by ASC 715. The funded status may vary from year to year due to changes in the fair value of the Plan’s assets and variations on the underlying assumptions of the projected benefit obligation of the Plan. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jul. 02, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Product Warranty Liability | The following table presents the changes in the Company's product warranty accrual. Fiscal 2021 Fiscal 2020 Fiscal 2019 Beginning balance $ 3,835 $ 1,870 $ 1,336 Warranty assumed from APC — 739 — Warranty assumed from Germane — — 169 Accruals for warranties issued during the period 2,446 2,839 2,274 Settlements made during the period (2,998) (1,613) (1,909) Ending balance $ 3,283 $ 3,835 $ 1,870 |
Basic and Diluted Weighted Average Shares Outstanding | Basic and diluted weighted average shares outstanding were as follows: Fiscal 2021 Fiscal 2020 Fiscal 2019 Basic weighted-average shares outstanding 55,070 54,546 47,831 Effect of dilutive equity instruments 404 569 669 Diluted weighted-average shares outstanding 55,474 55,115 48,500 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Jul. 02, 2021 | |
Business Combinations [Abstract] | |
Schedule of Assets Acquired and Liabilities Assumed | The following table presents the net purchase price and the fair values of the assets and liabilities of Pentek on a preliminary basis: Consideration transferred Cash paid at closing $ 65,668 Less cash acquired (746) Net purchase price $ 64,922 Estimated fair value of tangible assets acquired and liabilities assumed Cash 746 Accounts receivable 1,303 Inventory 6,522 Fixed assets 152 Other current and non-current assets 2,864 Accounts payable (1,016) Accrued expenses (520) Other current and non-current liabilities (3,718) Estimated fair value of net tangible assets acquired 6,333 Estimated fair value of identifiable intangible assets 24,110 Estimated goodwill 35,225 Estimated fair value of net assets acquired 65,668 Less cash acquired (746) Net purchase price $ 64,922 The following table presents the net purchase price and the fair values of the assets and liabilities of POC on a preliminary basis: Consideration transferred Cash paid at closing $ 251,229 Cash paid post closing 61,626 Working capital and net debt adjustment (2,096) Less cash acquired (2,855) Net purchase price $ 307,904 Estimated fair value of tangible assets acquired and liabilities assumed Cash $ 2,855 Accounts receivable 27,708 Inventory 11,125 Fixed assets 23,236 Other current and non-current assets 16,453 Accounts payable (3,777) Accrued expenses (5,551) Other current and non-current liabilities (32,549) Estimated fair value of net tangible assets acquired 39,500 Estimated fair value of identifiable intangible assets 116,000 Estimated goodwill 155,259 Estimated fair value of net assets acquired 310,759 Less cash acquired (2,855) Net purchase price $ 307,904 The following table presents the net purchase price and the fair values of the assets and liabilities of APC: Consideration transferred Cash paid at closing $ 100,826 Working capital and net debt adjustment (5,952) Liabilities assumed 2,454 Less cash acquired (826) Net purchase price $ 96,502 Fair value of tangible assets acquired and liabilities assumed Cash $ 826 Accounts receivable 3,726 Inventory 11,233 Fixed assets 690 Other current and non-current assets 3,494 Accounts payable (1,554) Accrued expenses (1,457) Other current and non-current liabilities (5,852) Fair value of net tangible assets acquired 11,106 Fair value of identifiable intangible assets 33,200 Goodwill 53,022 Fair value of net assets acquired 97,328 Less cash acquired (826) Net purchase price $ 96,502 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Jul. 02, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets Measured at Fair Value on Recurring Basis | During the fiscal year ended July 2, 2021, the Company received gross proceeds and recorded a loss on a cost-method investment of $1,538 and $426, respectively. The loss on sale of investment is included within Other expense (income), net in the Consolidated Statements of Operations and Comprehensive Income for the fiscal year ended July 2, 2021. The fair value of the investment was based on a quoted price of identical instruments in an active market and was recorded at cost within Other non-current assets in the Consolidated Balance Sheet prior to its sale. As of July 2, 2021, the Company had no financial instruments required to be measured at fair value. The following table summarizes the Company’s financial assets measured at fair value on a recurring basis at July 3, 2020: Fair Value Measurements July 3, 2020 Level 1 Level 2 Level 3 Assets: Certificates of deposit $ 10,006 $ — $ 10,006 $ — U.S. equity securities 2,007 2,007 — — Total $ 12,013 $ 2,007 $ 10,006 $ — |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Jul. 02, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory was comprised of the following: As of July 2, 2021 July 3, 2020 Raw materials $ 141,774 $ 111,225 Work in process 58,087 49,647 Finished goods 21,779 17,221 Total $ 221,640 $ 178,093 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jul. 02, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consisted of the following: Estimated Useful Lives As of July 2, 2021 July 3, 2020 Computer equipment and software 3-4 $ 99,190 $ 85,705 Furniture and fixtures 5 17,997 5,993 Leasehold improvements lesser of estimated useful life or lease term 63,322 36,874 Machinery and equipment 5-10 105,346 90,970 285,855 219,542 Less: accumulated depreciation (157,331) (131,805) $ 128,524 $ 87,737 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Jul. 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | The following table sets forth the changes in the carrying amount of goodwill for the year ended July 2, 2021: Total Balance at July 3, 2020 $ 614,076 Goodwill adjustment for the APC acquisition 346 Goodwill arising from the POC acquisition 155,259 Goodwill arising from the Pentek acquisition 35,225 Balance at July 2, 2021 $ 804,906 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Jul. 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Acquired Intangible Assets | Intangible assets consisted of the following: Gross Accumulated Net Weighted July 2, 2021 Customer relationships $ 280,520 $ (69,474) $ 211,046 12.0 years Licensing agreements and patents 6 — 6 — Completed technologies 139,332 (49,126) 90,206 9.3 years Backlog 12,410 (6,109) 6,301 1.2 years $ 432,268 $ (124,709) $ 307,559 July 3, 2020 Customer relationships $ 181,960 $ (48,450) $ 133,510 11.4 years Licensing agreements and patents 1,505 (1,404) 101 3.5 years Completed technologies 107,992 (34,522) 73,470 9.2 years Backlog 3,200 (1,533) 1,667 2.0 years $ 294,657 $ (85,909) $ 208,748 |
Estimated Future Amortization Expense for Acquired Intangible Assets | Estimated future amortization expense for intangible assets remaining at July 2, 2021 is as follows: Fiscal Year Totals 2022 $ 49,695 2023 41,413 2024 36,891 2025 32,466 2026 27,806 Thereafter 119,288 Total future amortization expense $ 307,559 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | The following table summarizes the preliminary estimated fair value of acquired intangible assets arising as a result of the POC acquisition. These assets are included in the Company's gross and net carrying amounts as of July 2, 2021. Gross Accumulated Net Weighted Average Customer relationships $ 83,000 $ (4,404) $ 78,596 11.5 years Completed technologies 25,000 (1,985) 23,015 9.0 years Backlog 8,000 (4,000) 4,000 1.0 year $ 116,000 $ (10,389) $ 105,611 The following table summarizes the preliminary estimated fair value of acquired intangible assets arising as a result of the Pentek acquisition. These assets are included in the Company's gross and net carrying amounts as of July 2, 2021. Gross Accumulated Net Weighted Average Customer relationships $ 15,560 $ (62) $ 15,498 21.0 years Completed technologies 6,340 (86) 6,254 6.8 years Backlog 2,210 (184) 2,026 1.0 year $ 24,110 $ (332) $ 23,778 |
Restructuring Plan (Tables)
Restructuring Plan (Tables) | 12 Months Ended |
Jul. 02, 2021 | |
Restructuring and Related Activities [Abstract] | |
Expenses by Business Segment for Restructuring Plans | The following table presents the detail of charges included in the Company’s liability for restructuring and other charges: Severance & Related Facilities & Other Total Restructuring liability at June 30, 2019 $ 4 $ — $ 4 Restructuring charges 1,730 75 1,805 Cash paid (1,137) (75) (1,212) Restructuring liability at July 3, 2020 597 — 597 Restructuring charges 4,752 — 4,752 Cash paid (4,343) — (4,343) Restructuring liability at July 2, 2021 $ 1,006 $ — $ 1,006 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jul. 02, 2021 | |
Leases [Abstract] | |
Summary of Supplemental Balance Sheet Information | Supplemental operating lease balance sheet information is summarized as follows: As of As of July 2, 2021 July 3, 2020 Operating lease right-of-use assets $ 66,373 $ 60,613 Accrued expenses (1) $ 10,020 $ 6,950 Operating lease liabilities 71,508 66,981 Total operating lease liabilities $ 81,528 $ 73,931 (1) The short term portion of the Operating lease liabilities is included within Accrued expenses on the Consolidated Balance Sheet. Other supplemental operating lease information is summarized as follows: For the Fiscal Year Ended For the Fiscal Year Ended July 2, 2021 July 3, 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 7,923 $ 6,929 Right-of-use assets obtained in exchange for new lease liabilities $ 15,076 $ 19,942 Weighted average remaining lease term 8.2 years 9.3 years Weighted average discount rate 4.66 % 4.91 % |
Schedule of Operating Lease Maturity | Maturities of operating lease commitments as of July 2, 2021 were as follows: Fiscal Year Totals 2022 $ 13,626 2023 12,997 2024 12,137 2025 11,571 2026 9,682 Thereafter 40,017 Total lease payments 100,030 Less: imputed interest (18,502) Present value of operating lease liabilities $ 81,528 |
Minimum Lease Payments under Non Cancelable Operating Leases | As previously disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended July 3, 2020, maturities of operating lease commitments were as follows: Fiscal Year Totals 2021 $ 9,572 2022 10,741 2023 10,272 2024 9,333 2025 9,356 Thereafter 44,763 Total lease payments 94,037 Less: imputed interest (20,106) Present value of operating lease liabilities $ 73,931 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jul. 02, 2021 | |
Income Tax Disclosure [Abstract] | |
Components of Income Before Income Taxes and Income Tax Expense (Benefit) | The components of income before income taxes and income tax expense were as follows: Fiscal Years 2021 2020 2019 Income (loss) before income taxes: United States $ 85,101 $ 93,388 $ 57,281 Foreign (7,928) 545 2,246 $ 77,173 $ 93,933 $ 59,527 Tax provision (benefit): Federal: Current $ 12,157 $ 8,442 $ 11,454 Deferred (995) (1,077) (3,008) 11,162 7,365 8,446 State: Current 6,271 3,407 5,194 Deferred (2,689) (2,327) (1,421) 3,582 1,080 3,773 Foreign: Current 435 475 546 Deferred (50) (699) (13) 385 (224) 533 $ 15,129 $ 8,221 $ 12,752 |
Reconciliation Between Statutory Federal Income Tax Rate and Effective Income Tax Rate from Continuing Operations | The following is the reconciliation between the statutory Federal income tax rate and the Company’s effective income tax rate: Fiscal Years 2021 2020 2019 Tax provision at federal statutory rates 21.0 % 21.0 % 21.0 % State income tax, net of federal tax benefit 6.7 6.1 5.9 Research and development tax credits (10.9) (11.9) (4.5) Provision to return (1.3) (3.1) — Excess tax benefits related to stock compensation (3.7) (7.7) (4.5) Foreign income tax rate differential 0.9 0.1 0.1 Non-deductible compensation 3.6 2.6 2.0 Acquisition costs 0.4 — 0.1 Reserves for unrecognized income tax benefits 1.3 3.0 0.3 Tax rate changes — (0.5) — Valuation allowance 1.9 — — Other (0.3) (0.8) 1.0 19.6 % 8.8 % 21.4 % |
Components of Net Deferred Tax Assets (Liabilities) | The components of the Company’s net deferred tax liabilities were as follows: As of July 2, 2021 July 3, 2020 Deferred tax assets: Inventory valuation and receivable allowances 15,039 12,066 Accrued compensation 5,421 5,941 Stock compensation 4,548 5,062 Federal and state tax credit carryforwards 17,405 11,782 Other accruals 994 1,086 Deferred compensation 930 930 Acquired net operating loss carryforward 10,487 425 Foreign net operating loss carryforward 1,703 453 Operating lease liabilities 21,889 20,035 Deferred revenue 2,899 781 Other 734 642 82,049 59,203 Valuation allowance (15,257) (11,264) Total deferred tax assets 66,792 47,939 Deferred tax liabilities: Prepaid expenses (984) (1,111) Property and equipment (17,734) (10,668) Intangible assets (58,839) (33,007) Operating lease right-of-use assets (17,987) (16,426) Other (58) (616) Total deferred tax liabilities (95,602) (61,828) Net deferred tax liabilities $ (28,810) $ (13,889) As reported: Deferred tax liabilities $ (28,810) $ (13,889) $ (28,810) $ (13,889) |
Summary of Reserves for Unrecognized Income Tax Benefits | The changes in the Company’s reserves for unrecognized income tax benefits are summarized as follows: Fiscal Years 2021 2020 Unrecognized tax benefits, beginning of period $ 4,117 $ 1,273 Increases for tax positions taken related to a prior period 113 2,146 Increases for tax positions taken during the current period 917 854 Increases for tax positions taken by an acquired company 2,348 — Decreases for tax positions taken related to a prior period (27) — Decreases for tax positions taken during current period — — Decreases for settlements of previously recognized positions — — Decreases as a result of a lapse of the applicable statute of limitations (1) (156) Unrecognized tax benefits, end of period $ 7,467 $ 4,117 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Jul. 02, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Expected Benefit Payments | The following table reflects the total pension benefits expected to be paid from the Plan, which is funded from contributions by participants and the Company. Fiscal Year Total 2022 $ 893 2023 1,248 2024 1,454 2025 1,498 2026 1,574 Thereafter (next 5 years) 7,723 Total $ 14,390 |
Schedule of Net Benefit Costs | The following table outlines the components of net periodic benefit cost of the Plan for the fiscal years ended July 2, 2021 and July 3, 2020: Fiscal Years Ended July 2, 2021 July 3, 2020 Service cost $ 1,708 $ 1,375 Interest cost 92 125 Expected return on assets (277) (233) Amortization of prior service cost (64) (63) Amortization net of loss 185 33 Settlement loss recognized 318 — Net periodic benefit cost $ 1,962 $ 1,237 |
Schedule of Assumptions Used | The following table reflects the related actuarial assumptions used to determine net periodic benefit cost of the Plan for the fiscal years ended July 2, 2021 and July 3, 2020: Fiscal Years Ended July 2, 2021 July 3, 2020 Discount rate 0.30 % 0.30 % Expected rate of return on Plan assets 1.50 % 1.50 % Expected inflation 1.00 % 1.00 % Rate of compensation increases 1.50 % 1.50 % |
Schedule of Changes in Projected Benefit Obligations | The following table presents the change in projected benefit obligation for the periods presented: Fiscal Years Ended July 2, 2021 July 3, 2020 Projected benefit obligation, beginning $ 29,955 $ 24,274 Service cost 1,708 1,375 Interest cost 92 125 Employee contributions 2,145 1,916 Actuarial (gain) loss (1,345) 2,387 Benefits paid (256) (906) Plan amendment (1,247) — Settlements (3,129) — Foreign exchange loss 691 784 Projected benefit obligation at end of year $ 28,614 $ 29,955 |
Schedule of Changes in Fair Value of Plan Assets | The following table presents the change in Plan assets for the periods presented: Fiscal Years Ended July 2, 2021 July 3, 2020 Fair value of Plan assets, beginning $ 18,078 $ 15,088 Actual return on Plan assets 474 582 Company contributions 1,080 911 Employee contributions 2,145 1,916 Benefits paid (256) (906) Settlements (3,129) — Foreign exchange gain 415 487 Fair value of Plan assets at end of year $ 18,807 $ 18,078 |
Schedule of Net Funded Status | The following table presents the Company's reconciliation of funded status for the period presented: As of July 2, 2021 July 3, 2020 Projected benefit obligation at end of year $ 28,614 $ 29,955 Fair value of plan assets at end of year 18,807 18,078 Funded status $ (9,807) $ (11,877) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jul. 02, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Option Plans | The following table summarizes activity of the Company’s stock option plans since June 30, 2019: Options Outstanding Number of Weighted Average Weighted Average Aggregate Outstanding at June 30, 2019 4 $ 5.52 2.13 Granted — — Exercised (1) 5.52 Cancelled — — Outstanding at July 3, 2020 3 $ 5.52 1.12 Granted — — Exercised (3) 5.52 Cancelled — — Outstanding at July 2, 2021 — $ — — $ — Vested and expected to vest at July 2, 2021 — $ — — $ — Exercisable at July 2, 2021 — $ — — $ — |
Summary of Nonvested Restricted Stock | The following table summarizes the status of the Company’s non-vested restricted stock awards since June 30, 2019: Non-Vested Restricted Stock Awards Number of Weighted Average Outstanding at June 30, 2019 1,046 $ 39.62 Granted 522 80.87 Vested (562) 31.40 Forfeited (49) 54.96 Outstanding at July 3, 2020 957 $ 61.59 Granted 570 76.03 Vested (436) 53.08 Forfeited (78) 69.54 Outstanding at July 2, 2021 1,013 $ 70.77 |
Stock Based Compensation Expenses | The following table presents share-based compensation expenses from continuing operations included in the Company’s Consolidated Statements of Operations and Comprehensive Income: Fiscal Years Ended July 2, 2021 July 3, 2020 June 30, 2019 Cost of revenues $ 2,037 $ 989 $ 820 Selling, general and administrative 21,866 21,688 16,188 Research and development 4,387 3,861 2,414 Stock-based compensation expense before tax 28,290 26,538 19,422 Income taxes (7,355) (6,900) (5,263) Stock-based compensation expense, net of income taxes $ 20,935 $ 19,638 $ 14,159 |
Operating Segment, Geographic_2
Operating Segment, Geographic Information and Significant Customers (Tables) | 12 Months Ended |
Jul. 02, 2021 | |
Segment Reporting [Abstract] | |
Geographic Distribution of Revenues and Long Lived Assets from Continuing Operations | The geographic distribution of the Company’s revenues as determined by order origination based on the country in which the Company's legal subsidiary is domiciled is summarized as follows: U.S. Europe Asia Pacific Eliminations Total YEAR ENDED JULY 2, 2021 Net revenues to unaffiliated customers $ 876,479 $ 47,119 $ 398 $ — $ 923,996 Inter-geographic revenues 1,561 1,985 — (3,546) — Net revenues $ 878,040 $ 49,104 $ 398 $ (3,546) $ 923,996 Identifiable long-lived assets (1) $ 123,009 $ 5,509 $ 6 $ — $ 128,524 YEAR ENDED JULY 3, 2020 Net revenues to unaffiliated customers $ 744,270 $ 50,092 $ 2,248 $ — $ 796,610 Inter-geographic revenues 4,938 3,067 — (8,005) — Net revenues $ 749,208 $ 53,159 $ 2,248 $ (8,005) $ 796,610 Identifiable long-lived assets (1) $ 82,588 $ 5,144 $ 5 $ — $ 87,737 YEAR ENDED JUNE 30, 2019 Net revenues to unaffiliated customers $ 599,422 $ 49,332 $ 5,990 $ — $ 654,744 Inter-geographic revenues 10,570 1,343 — (11,913) — Net revenues $ 609,992 $ 50,675 $ 5,990 $ (11,913) $ 654,744 Identifiable long-lived assets (1) $ 54,952 $ 5,037 $ 12 $ — $ 60,001 (1) Identifiable long-lived assets exclude ROU assets, goodwill and intangible assets. |
Revenue from External Customers by Geographic Areas | The following table presents the Company's net revenue by end market for the periods presented: Fiscal Years Ended July 2, 2021 July 3, 2020 June 30, 2019 Domestic (1) $ 795,988 $ 704,722 $ 580,935 International/Foreign Military Sales (2) 128,008 91,888 73,809 Total Net Revenue $ 923,996 $ 796,610 $ 654,744 (1) Domestic revenues consist of sales where the end user is within the U.S., as well as sales to prime defense contractor customers where the ultimate end user location is not defined. (2) International/Foreign Military Sales consist of sales to U.S. prime defense contractor customers where the end user is outside the U.S., foreign military sales through the U.S. government, and direct sales to non-U.S. based customers intended for end use outside of the U.S. |
Revenue from External Customers by Products and Services | The following table presents the Company's net revenue by end application for the periods presented: Fiscal Years Ended July 2, 2021 July 3, 2020 June 30, 2019 Radar (1) $ 289,172 $ 233,967 $ 164,046 Electronic Warfare (2) 139,168 156,666 128,841 Other Sensor and Effector (3) 98,112 105,175 90,245 Total Sensor and Effector 526,452 495,808 383,132 C4I (4) 307,978 207,000 183,172 Other (5) 89,566 93,802 88,440 Total Net Revenues $ 923,996 $ 796,610 $ 654,744 (1) Radar includes end-use applications where radio frequency signals are utilized to detect, track and identify objects. (2) Electronic Warfare includes end-use applications comprising the offensive and defensive use of the electromagnetic spectrum. (3) Other Sensor and Effector products include all Sensor and Effector end markets other than Radar and Electronic Warfare. (4) C4I includes rugged secure rackmount servers that are designed to drive the most powerful military processing applications. (5) Other products include all component and other sales where the end use is not specified. The following table presents the Company's net revenue by product grouping for the periods presented: Fiscal Years Ended July 2, 2021 July 3, 2020 June 30, 2019 Components (1) $ 176,234 $ 227,364 $ 184,870 Modules and Sub-assemblies (2) 156,557 131,177 180,873 Integrated Subsystems (3) 591,205 438,069 289,001 Total Net Revenues $ 923,996 $ 796,610 $ 654,744 The following table presents the Company's net revenue by platform for the periods presented: Fiscal Years Ended July 2, 2021 July 3, 2020 June 30, 2019 Airborne (1) $ 416,877 $ 397,553 $ 306,412 Land (2) 182,591 102,956 83,034 Naval (3) 187,205 166,912 136,966 Other (4) 137,323 129,189 128,332 Total Net Revenues $ 923,996 $ 796,610 $ 654,744 |
Customers Comprising Ten Percent or more Revenues | Customers comprising 10% or more of the Company’s revenues for the periods shown below are as follows: Fiscal Years Ended July 2, 2021 July 3, 2020 June 30, 2019 Raytheon Technologies 19 % 16 % 20 % Lockheed Martin Corporation 15 % 16 % 17 % U.S. Navy 12 % — % — % 46 % 32 % 37 % |
Supplementary Information (Un_2
Supplementary Information (Unaudited) (Tables) | 12 Months Ended |
Jul. 02, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Consolidated Quarterly Statements of Operations | The following sets forth certain unaudited consolidated quarterly statements of operations data for each of the Company’s last eight quarters. In management’s opinion, this quarterly information reflects all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation for the periods presented. Such quarterly results are not necessarily indicative of future results of operations and should be read in conjunction with the audited consolidated financial statements of the Company and the notes thereto. 2021 (In thousands, except per share data) 1ST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER Net revenues $ 205,621 $ 210,676 $ 256,857 $ 250,842 Gross margin $ 88,119 $ 88,667 $ 105,623 $ 102,779 Income from operations $ 18,770 $ 18,113 $ 21,712 $ 22,406 Income before income taxes $ 17,996 $ 17,119 $ 20,997 $ 21,061 Income tax provision $ 2,198 $ 4,433 $ 5,362 $ 3,136 Net income $ 15,798 $ 12,686 $ 15,635 $ 17,925 Net income per share: Basic net income per share $ 0.29 $ 0.23 $ 0.28 $ 0.32 Diluted net income per share $ 0.29 $ 0.23 $ 0.28 $ 0.32 2020 (In thousands, except per share data) 1ST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER Net revenues $ 177,304 $ 193,913 $ 208,016 $ 217,377 Gross margin $ 78,400 $ 88,506 $ 93,325 $ 96,613 Income from operations $ 17,476 $ 20,825 $ 26,342 $ 26,419 Income before income taxes $ 17,229 $ 20,786 $ 28,928 $ 26,990 Income tax (benefit) provision $ (2,018) $ 5,110 $ 5,363 $ (234) Net income $ 19,247 $ 15,676 $ 23,565 $ 27,224 Net income per share: Basic net income per share $ 0.35 $ 0.29 $ 0.43 $ 0.50 Diluted net income per share $ 0.35 $ 0.29 $ 0.43 $ 0.49 |
Description of Business (Detail
Description of Business (Details) - USD ($) $ in Thousands | May 27, 2021 | Dec. 30, 2020 | Sep. 23, 2019 |
Physical Optics Corporation | |||
Total purchase price | $ 310,000 | ||
Pentek | |||
Total purchase price | $ 65,000 | ||
American Panel Corporation | |||
Total purchase price | $ 100,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 02, 2021 | Jul. 03, 2020 | Jun. 30, 2019 | |
Deferred Revenue Arrangement [Line Items] | |||
Percentage of revenue recognized | 65.00% | ||
Deferred sales commission, amortization period greater than one year | $ 1,098 | ||
Contract with customer, liability | 35,201 | $ 19,892 | |
Contract with customer, liability, revenue recognized | 16,846 | ||
Revenue, remaining performance obligation, amount | 337,886 | ||
Unbilled receivables and costs in excess of billings | $ 162,921 | $ 90,289 | |
Contract Accounting | |||
Deferred Revenue Arrangement [Line Items] | |||
Percentage of revenue recognized | 58.00% | 73.00% | 77.00% |
Transferred over Time | |||
Deferred Revenue Arrangement [Line Items] | |||
Percentage of revenue recognized | 42.00% | 27.00% | 23.00% |
Minimum | |||
Deferred Revenue Arrangement [Line Items] | |||
Product warranty period | 12 years | ||
Extended product warranty, period | 12 months | ||
Maximum | |||
Deferred Revenue Arrangement [Line Items] | |||
Product warranty period | 36 months | ||
Extended product warranty, period | 36 months |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) | 12 Months Ended |
Jul. 02, 2021 | |
Maximum | |
Restricted Cash and Cash Equivalents Items [Line Items] | |
Maturity of cash and cash equivalents | 90 days |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Restricted Cash (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Accounting Policies [Abstract] | |
Restricted cash | $ 0 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Concentration of Risk (Details) $ in Thousands | 12 Months Ended | |
Jul. 02, 2021USD ($)customer | Jul. 03, 2020USD ($)customer | |
Concentration Risk [Line Items] | ||
Cash and cash equivalent | $ | $ 113,839 | $ 226,838 |
Customer Concentration Risk | Accounts Receivable | Unbilled Revenues | ||
Concentration Risk [Line Items] | ||
Concentration risk, number | customer | 5 | 5 |
Concentration risk, percent | 60.00% | 52.00% |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Segment Information (Details) - segment | 12 Months Ended | |
Jul. 02, 2021 | Jul. 03, 2020 | |
Accounting Policies [Abstract] | ||
Number of reportable segments | 1 | 1 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Intangible Assets (Detail) | 12 Months Ended |
Jul. 02, 2021 | |
Maximum | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquired intangible assets, estimated useful lives | 12 years 6 months |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 02, 2021 | Jul. 03, 2020 | Jun. 30, 2019 | |
Accounting Policies [Abstract] | |||
Property and equipment, estimated useful lives | 3 years | ||
Capitalized software development cost | $ 1,640 | $ 905 | $ 749 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Income Taxes (Details) | Jul. 02, 2021 |
Accounting Policies [Abstract] | |
Minimum likelihood of tax benefits being recognized upon ultimate settlement | 50.00% |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Changes in Product Warranty Accrual (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 02, 2021 | Jul. 03, 2020 | Jun. 30, 2019 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | |||
Beginning Balance | $ 3,835 | $ 1,870 | $ 1,336 |
Standard and Extended Product Warranty Accrual, Increase (Decrease) for Preexisting Warranties | 2,446 | ||
Accruals for warranties issued during the period | 2,839 | 2,274 | |
Settlements made during the period | (2,998) | (1,613) | (1,909) |
Ending Balance | $ 3,283 | 3,835 | 1,870 |
Minimum | |||
Product Warranty Liability [Line Items] | |||
Product warranty term | 12 months | ||
Maximum | |||
Product Warranty Liability [Line Items] | |||
Product warranty term | 36 months | ||
American Panel Corporation | |||
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | |||
Warranty assumed from CES | $ 0 | 739 | 0 |
Germane Systems, LC | |||
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | |||
Warranty assumed from CES | $ 0 | $ 0 | $ 169 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Basic and Diluted Weighted Average Shares Outstanding (Detail) - shares shares in Thousands | 12 Months Ended | ||
Jul. 02, 2021 | Jul. 03, 2020 | Jun. 30, 2019 | |
Accounting Policies [Abstract] | |||
Basic weighted-average shares outstanding | 55,070 | 54,546 | 47,831 |
Effect of dilutive equity instruments | 404 | 569 | 669 |
Diluted weighted-average shares outstanding | 55,474 | 55,115 | 48,500 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Net Earnings Per Share Additional Information (Details) - shares shares in Thousands | 12 Months Ended | ||
Jul. 02, 2021 | Jul. 03, 2020 | Jun. 30, 2019 | |
Accounting Policies [Abstract] | |||
Common stock excluded from diluted earning per share (in shares) | 42 | 8 | 32 |
Summary of Significant Accou_15
Summary of Significant Accounting Policies - Accumulated Other Comprehensive Income (Details) - USD ($) | Jul. 02, 2021 | Jul. 03, 2020 | Jun. 30, 2019 | Jun. 30, 2018 |
Accumulated other comprehensive income adjustment for foreign currency | $ (739,000) | $ 174,000 | $ (232,000) | |
Accumulated other comprehensive income adjustment for pension plans | $ 3,285,000 | $ (1,768,000) | $ (2,350,000) | |
Accumulated other comprehensive income, available-for-sale securities gains (losses) | $ 0 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Thousands | May 28, 2021 | May 27, 2021 | Dec. 30, 2020 | Sep. 23, 2019 | Jul. 02, 2021 | Jul. 03, 2020 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 804,906 | $ 614,076 | ||||
Customer Relationships | ||||||
Business Acquisition [Line Items] | ||||||
Acquired intangible assets, estimated useful lives | 12 years | 11 years 4 months 24 days | ||||
American Panel Corporation | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 53,022 | |||||
Total purchase price | 100,000 | |||||
Estimated fair value of identifiable intangible assets | 33,200 | |||||
Goodwill acquired, tax deductible amount | $ 48,258 | |||||
American Panel Corporation | Customer Relationships | ||||||
Business Acquisition [Line Items] | ||||||
Acquired intangible assets, estimated useful lives | 11 years | |||||
Estimated fair value of identifiable intangible assets | $ 20,600 | |||||
American Panel Corporation | Developed Technology | ||||||
Business Acquisition [Line Items] | ||||||
Acquired intangible assets, estimated useful lives | 11 years | |||||
Estimated fair value of identifiable intangible assets | $ 10,400 | |||||
American Panel Corporation | Order or Production Backlog | ||||||
Business Acquisition [Line Items] | ||||||
Acquired intangible assets, estimated useful lives | 2 years | |||||
Estimated fair value of identifiable intangible assets | $ 2,200 | |||||
Physical Optics Corporation | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 155,259 | |||||
Business Acquisition, Pro Forma Revenue | $ 76,370 | |||||
Business Acquisition, Pro Forma Net Income (Loss), Before Tax | $ (2,768) | |||||
Total purchase price | 310,000 | |||||
Estimated fair value of identifiable intangible assets | $ 116,000 | |||||
Business Combination, Consideration Transferred, Other | $ 2,641 | |||||
Physical Optics Corporation | Customer Relationships | ||||||
Business Acquisition [Line Items] | ||||||
Acquired intangible assets, estimated useful lives | 11 years | 11 years 6 months | ||||
Finite-lived Intangible Assets Acquired | $ 83,000 | |||||
Physical Optics Corporation | Developed Technology | ||||||
Business Acquisition [Line Items] | ||||||
Acquired intangible assets, estimated useful lives | 9 years | |||||
Finite-lived Intangible Assets Acquired | $ 25,000 | |||||
Physical Optics Corporation | Order or Production Backlog | ||||||
Business Acquisition [Line Items] | ||||||
Acquired intangible assets, estimated useful lives | 1 year | |||||
Estimated fair value of identifiable intangible assets | $ 8,000 | |||||
Pentek | ||||||
Business Acquisition [Line Items] | ||||||
Acquired intangible assets, estimated useful lives | 15 years | |||||
Goodwill | $ 35,225 | |||||
Total purchase price | 65,000 | |||||
Estimated fair value of identifiable intangible assets | $ 24,110 | |||||
Goodwill acquired, tax deductible amount | $ 30,101 | |||||
Pentek | Customer Relationships | ||||||
Business Acquisition [Line Items] | ||||||
Acquired intangible assets, estimated useful lives | 21 years | 21 years | ||||
Finite-lived Intangible Assets Acquired | $ 15,560 | |||||
Pentek | Developed Technology | ||||||
Business Acquisition [Line Items] | ||||||
Acquired intangible assets, estimated useful lives | 7 years | |||||
Finite-lived Intangible Assets Acquired | $ 6,340 | |||||
Pentek | Order or Production Backlog | ||||||
Business Acquisition [Line Items] | ||||||
Acquired intangible assets, estimated useful lives | 1 year | 1 year | ||||
Estimated fair value of identifiable intangible assets | $ 2,210 |
Acquisitions - Schedule of Busi
Acquisitions - Schedule of Business Acquisitions (Details) - USD ($) $ in Thousands | May 27, 2021 | Dec. 30, 2020 | Sep. 23, 2019 | Jul. 02, 2021 | Jul. 03, 2020 | Jun. 30, 2019 |
Business Acquisition [Line Items] | ||||||
Net purchase price | $ 372,826 | $ 96,502 | $ 127,083 | |||
Goodwill | $ 804,906 | $ 614,076 | ||||
Physical Optics Corporation | ||||||
Business Acquisition [Line Items] | ||||||
Cash paid at closing | $ 251,229 | |||||
Cash paid post closing | 61,626 | |||||
Working capital and net debt adjustment | (2,096) | |||||
Less cash acquired | (2,855) | |||||
Net purchase price | 307,904 | |||||
Cash | 2,855 | |||||
Accounts receivable | 27,708 | |||||
Inventory | 11,125 | |||||
Fixed assets | 23,236 | |||||
Other current and non-current assets | 16,453 | |||||
Accounts payable | (3,777) | |||||
Accrued expenses | (5,551) | |||||
Other current and non-current liabilities | (32,549) | |||||
Estimated fair value of net tangible assets acquired | 39,500 | |||||
Estimated fair value of identifiable intangible assets | 116,000 | |||||
Goodwill | 155,259 | |||||
Estimated fair value of net assets acquired | $ 310,759 | |||||
American Panel Corporation | ||||||
Business Acquisition [Line Items] | ||||||
Cash paid at closing | $ 100,826 | |||||
Working capital and net debt adjustment | (5,952) | |||||
Business Combinations, Liabilities Assumed | 2,454 | |||||
Less cash acquired | (826) | |||||
Net purchase price | 96,502 | |||||
Cash | 826 | |||||
Accounts receivable | 3,726 | |||||
Inventory | 11,233 | |||||
Fixed assets | 690 | |||||
Other current and non-current assets | 3,494 | |||||
Accounts payable | (1,554) | |||||
Accrued expenses | (1,457) | |||||
Other current and non-current liabilities | (5,852) | |||||
Estimated fair value of net tangible assets acquired | 11,106 | |||||
Estimated fair value of identifiable intangible assets | 33,200 | |||||
Goodwill | 53,022 | |||||
Estimated fair value of net assets acquired | $ 97,328 | |||||
Pentek | ||||||
Business Acquisition [Line Items] | ||||||
Cash paid at closing | $ 65,668 | |||||
Less cash acquired | (746) | |||||
Net purchase price | 64,922 | |||||
Cash | 746 | |||||
Accounts receivable | 1,303 | |||||
Inventory | 6,522 | |||||
Fixed assets | 152 | |||||
Other current and non-current assets | 2,864 | |||||
Accounts payable | (1,016) | |||||
Accrued expenses | (520) | |||||
Estimated fair value of net tangible assets acquired | 6,333 | |||||
Estimated fair value of identifiable intangible assets | 24,110 | |||||
Goodwill | 35,225 | |||||
Estimated fair value of net assets acquired | $ 65,668 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary of Financial Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 02, 2021 | Jul. 03, 2020 | |
Assets: | ||
Gain on sale of investments | $ 1,538 | $ 4,310 |
Proceeds from sale of other investments | 426 | 3,810 |
Assets, fair value adjustment | $ 2,007 | |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement [Member] | ||
Assets: | ||
Fair value measurement disclosure | 12,013 | |
Fair Value, Measurements, Recurring | Equity Securities [Member] | Estimate of Fair Value Measurement [Member] | ||
Assets: | ||
Fair value measurement disclosure | 2,007 | |
Fair Value, Measurements, Recurring | Certificates of Deposit [Member] | Estimate of Fair Value Measurement [Member] | ||
Assets: | ||
Fair value measurement disclosure | 10,006 | |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Fair value measurement disclosure | 2,007 | |
Fair Value, Measurements, Recurring | Level 1 | Equity Securities [Member] | ||
Assets: | ||
Fair value measurement disclosure | 2,007 | |
Fair Value, Measurements, Recurring | Level 1 | Certificates of Deposit [Member] | ||
Assets: | ||
Fair value measurement disclosure | 0 | |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Fair value measurement disclosure | 10,006 | |
Fair Value, Measurements, Recurring | Level 2 | Equity Securities [Member] | ||
Assets: | ||
Fair value measurement disclosure | 0 | |
Fair Value, Measurements, Recurring | Level 2 | Certificates of Deposit [Member] | ||
Assets: | ||
Fair value measurement disclosure | 10,006 | |
Fair Value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Fair value measurement disclosure | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Equity Securities [Member] | ||
Assets: | ||
Fair value measurement disclosure | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Certificates of Deposit [Member] | ||
Assets: | ||
Fair value measurement disclosure | $ 0 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Jul. 02, 2021 | Jul. 03, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 141,774 | $ 111,225 |
Work in process | 58,087 | 49,647 |
Finished goods | 21,779 | 17,221 |
Total | $ 221,640 | $ 178,093 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 02, 2021 | Jul. 03, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful lives | 3 years | |
Property and equipment, gross | $ 285,855 | $ 219,542 |
Less: accumulated depreciation and amortization | (157,331) | (131,805) |
Property and equipment, net | 128,524 | 87,737 |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 99,190 | 85,705 |
Computer equipment and software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful lives | 3 years | |
Computer equipment and software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful lives | 4 years | |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful lives | 5 years | |
Property and equipment, gross | $ 17,997 | 5,993 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 63,322 | 36,874 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 105,346 | $ 90,970 |
Machinery and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful lives | 5 years | |
Machinery and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, estimated useful lives | 10 years |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 02, 2021 | Jul. 03, 2020 | Jun. 30, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Increase in property and equipment | $ 40,787 | ||
Depreciation and amortization expense related to property and equipment | 25,912 | $ 18,770 | $ 18,478 |
Computer equipment and software | |||
Property, Plant and Equipment [Line Items] | |||
Retirement of asset | $ 996 | $ 64 |
Goodwill Goodwill - Changes in
Goodwill Goodwill - Changes in Carrying Amount of Goodwill (Details) $ in Thousands | 12 Months Ended |
Jul. 02, 2021USD ($) | |
Goodwill [Roll Forward] | |
Beginning Balance | $ 614,076 |
Ending Balance | 804,906 |
American Panel Corporation | |
Goodwill [Roll Forward] | |
Goodwill arising from acquisition | 346 |
Physical Optics Corporation | |
Goodwill [Roll Forward] | |
Goodwill arising from acquisition | 155,259 |
Pentek | |
Goodwill [Roll Forward] | |
Goodwill arising from acquisition | $ 35,225 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | May 27, 2021 | Dec. 30, 2020 | Sep. 23, 2019 | Jul. 02, 2021 | Jul. 03, 2020 |
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | $ 432,268 | $ 294,657 | |||
Accumulated Amortization | (124,709) | (85,909) | |||
Net Carrying Amount | 307,559 | 208,748 | |||
Physical Optics Corporation | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 116,000 | ||||
Accumulated Amortization | (10,389) | ||||
Net Carrying Amount | 105,611 | ||||
Pentek | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 24,110 | ||||
Accumulated Amortization | (332) | ||||
Net Carrying Amount | 23,778 | ||||
Acquired intangible assets, estimated useful lives | 15 years | ||||
Customer Relationships | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 280,520 | 181,960 | |||
Accumulated Amortization | (69,474) | (48,450) | |||
Net Carrying Amount | $ 211,046 | $ 133,510 | |||
Acquired intangible assets, estimated useful lives | 12 years | 11 years 4 months 24 days | |||
Customer Relationships | Physical Optics Corporation | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | $ 83,000 | ||||
Accumulated Amortization | (4,404) | ||||
Net Carrying Amount | $ 78,596 | ||||
Acquired intangible assets, estimated useful lives | 11 years | 11 years 6 months | |||
Customer Relationships | Pentek | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | $ 15,560 | ||||
Accumulated Amortization | (62) | ||||
Net Carrying Amount | $ 15,498 | ||||
Acquired intangible assets, estimated useful lives | 21 years | 21 years | |||
Licensing agreements and patents | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | $ 6 | $ 1,505 | |||
Accumulated Amortization | 0 | (1,404) | |||
Net Carrying Amount | 6 | $ 101 | |||
Acquired intangible assets, estimated useful lives | 3 years 6 months | ||||
Completed technologies | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 139,332 | $ 107,992 | |||
Accumulated Amortization | (49,126) | (34,522) | |||
Net Carrying Amount | $ 90,206 | $ 73,470 | |||
Acquired intangible assets, estimated useful lives | 9 years 3 months 18 days | 9 years 2 months 12 days | |||
Completed technologies | Physical Optics Corporation | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | $ 25,000 | ||||
Accumulated Amortization | (1,985) | ||||
Net Carrying Amount | $ 23,015 | ||||
Acquired intangible assets, estimated useful lives | 9 years | ||||
Completed technologies | Pentek | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | $ 6,340 | ||||
Accumulated Amortization | (86) | ||||
Net Carrying Amount | $ 6,254 | ||||
Acquired intangible assets, estimated useful lives | 6 years 9 months 18 days | ||||
Trademarks | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | $ 12,410 | $ 3,200 | |||
Accumulated Amortization | (6,109) | (1,533) | |||
Net Carrying Amount | $ 6,301 | $ 1,667 | |||
Acquired intangible assets, estimated useful lives | 1 year 2 months 12 days | 2 years | |||
Developed Technology | Physical Optics Corporation | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Acquired intangible assets, estimated useful lives | 9 years | ||||
Developed Technology | Pentek | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Acquired intangible assets, estimated useful lives | 7 years | ||||
Order or Production Backlog | Physical Optics Corporation | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | $ 8,000 | ||||
Accumulated Amortization | (4,000) | ||||
Net Carrying Amount | $ 4,000 | ||||
Acquired intangible assets, estimated useful lives | 1 year | ||||
Order or Production Backlog | Pentek | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | $ 2,210 | ||||
Accumulated Amortization | (184) | ||||
Net Carrying Amount | $ 2,026 | ||||
Acquired intangible assets, estimated useful lives | 1 year | 1 year |
Intangible Assets - Estimated F
Intangible Assets - Estimated Future Amortization Expense for Acquired Intangible Assets (Details) - USD ($) $ in Thousands | Jul. 02, 2021 | Jul. 03, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 | $ 49,695 | |
2023 | 41,413 | |
2024 | 36,891 | |
2025 | 32,466 | |
2026 | 27,806 | |
Thereafter | 119,288 | |
Net Carrying Amount | $ 307,559 | $ 208,748 |
Restructuring Plan - Additional
Restructuring Plan - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Jul. 02, 2021USD ($)position | Jul. 03, 2020USD ($)position | Jun. 30, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other charges | $ 9,222 | $ 1,805 | $ 560 |
Number of positions eliminated | position | 90 | 20 | |
Other restructuring costs | $ 1,805 | $ 560 | |
Restructuring and other charges | $ 4,752 | 1,805 | |
Other Members | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other charges | $ 4,470 | $ 75 |
Restructuring Plan - Expenses b
Restructuring Plan - Expenses by Business Segment for Restructuring Plans (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 02, 2021 | Jul. 03, 2020 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring liability at beginning of period | $ 597 | $ 4 |
Provisions | 4,752 | 1,805 |
Cash paid | (4,343) | (1,212) |
Restructuring liability at end period | 1,006 | 597 |
Severance | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring liability at beginning of period | 597 | 4 |
Provisions | 4,752 | 1,730 |
Cash paid | (4,343) | (1,137) |
Restructuring liability at end period | 1,006 | 597 |
Other Members | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring liability at beginning of period | 0 | 0 |
Provisions | 4,470 | 75 |
Cash paid | (75) | |
Restructuring liability at end period | $ 0 | $ 0 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 02, 2021 | Jul. 03, 2020 | Jun. 30, 2019 | |
Leases [Abstract] | |||
Operating lease expense | $ 11,714 | $ 10,029 | $ 8,710 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 02, 2021 | Jul. 03, 2020 | |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 66,373 | $ 60,613 |
Operating lease liability, current | 10,020 | 6,950 |
Operating lease liability, noncurrent | 71,508 | 66,981 |
Total operating lease liabilities | $ 81,528 | $ 73,931 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued expenses | Accrued expenses |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 7,923 | $ 6,929 |
Right-of-use assets obtained in exchange for new lease liabilities | $ 15,076 | $ 19,942 |
Weighted average remaining lease term | 8 years 2 months 12 days | 9 years 3 months 18 days |
Weighted average discount rate | 4.66% | 4.91% |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Maturity (Details) - USD ($) $ in Thousands | Jul. 02, 2021 | Jul. 03, 2020 |
Leases [Abstract] | ||
Year one | $ 13,626 | $ 9,572 |
Year two | 12,997 | 10,741 |
Year three | 12,137 | 10,272 |
Year four | 11,571 | 9,333 |
Year five | 9,682 | 9,356 |
Thereafter | 40,017 | 44,763 |
Total lease payments | 100,030 | 94,037 |
Less: imputed interest | (18,502) | (20,106) |
Present value of operating lease liabilities | $ 81,528 | $ 73,931 |
Income Taxes - Components of In
Income Taxes - Components of Income Before Income Taxes and Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 02, 2021 | Apr. 02, 2021 | Jan. 01, 2021 | Oct. 02, 2020 | Jul. 03, 2020 | Mar. 27, 2020 | Dec. 27, 2019 | Sep. 27, 2019 | Jul. 02, 2021 | Jul. 03, 2020 | Jun. 30, 2019 | |
Income before income taxes: | |||||||||||
United States | $ 85,101 | $ 93,388 | $ 57,281 | ||||||||
Foreign | (7,928) | 545 | 2,246 | ||||||||
Income before income taxes | $ 21,061 | $ 20,997 | $ 17,119 | $ 17,996 | $ 26,990 | $ 28,928 | $ 20,786 | $ 17,229 | 77,173 | 93,933 | 59,527 |
Federal: | |||||||||||
Current | 12,157 | 8,442 | 11,454 | ||||||||
Deferred | (995) | (1,077) | (3,008) | ||||||||
Federal Income Tax Expense (Benefit), Continuing Operations, Total | 11,162 | 7,365 | 8,446 | ||||||||
State: | |||||||||||
Current | 6,271 | 3,407 | 5,194 | ||||||||
Deferred | (2,689) | (2,327) | (1,421) | ||||||||
State and Local Income Tax Expense (Benefit), Continuing Operations, Total | 3,582 | 1,080 | 3,773 | ||||||||
Foreign: | |||||||||||
Current | 435 | 475 | 546 | ||||||||
Deferred | (50) | (699) | (13) | ||||||||
Foreign, Income Tax expense benefit | 385 | (224) | 533 | ||||||||
Income tax expense (benefit) | $ 3,136 | $ 5,362 | $ 4,433 | $ 2,198 | $ (234) | $ 5,363 | $ 5,110 | $ (2,018) | $ 15,129 | $ 8,221 | $ 12,752 |
Income Taxes - Reconciliation B
Income Taxes - Reconciliation Between Statutory Federal Income Tax Rate and Effective Income Tax Rate from Continuing Operations (Detail) | 12 Months Ended | ||
Jul. 02, 2021 | Jul. 03, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income taxes at federal statutory rates | 21.00% | 21.00% | 21.00% |
State income tax, net of federal tax benefit | 6.70% | 6.10% | 5.90% |
Research and development credits | (10.90%) | (11.90%) | (4.50%) |
Provision to return | (1.30%) | (3.10%) | 0.00% |
Excess tax benefits on stock compensation | (3.70%) | (7.70%) | (4.50%) |
Foreign income tax rate differential | 0.90% | 0.10% | 0.10% |
Equity compensation | 3.60% | 2.60% | 2.00% |
Acquisition costs | 0.40% | 0.00% | 0.10% |
Change in the fair value of the liability related to the LNX earn-out | 1.30% | 3.00% | 0.30% |
Tax rate changes | 0.00% | (0.50%) | 0.00% |
Other | (0.30%) | (0.80%) | 1.00% |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent | 1.90% | 0.00% | 0.00% |
Effective income tax rate from continuing operation | 19.60% | 8.80% | 21.40% |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Assets (Liabilities) (Detail) - USD ($) $ in Thousands | Jul. 02, 2021 | Jul. 03, 2020 |
Deferred tax assets: | ||
Inventory valuation and receivable allowances | $ 15,039 | $ 12,066 |
Accrued compensation | 5,421 | 5,941 |
Equity compensation | 4,548 | 5,062 |
Federal and state research and development tax credit carryforwards | 17,405 | 11,782 |
Other accruals | 994 | 1,086 |
Accrued compensation | 930 | 930 |
Acquired net operating loss carryforward | 10,487 | 425 |
Foreign net operating loss carryforward | 1,703 | 453 |
Operating lease liabilities | 21,889 | 20,035 |
Deferred revenue | 2,899 | 781 |
Other temporary differences | 734 | 642 |
Deferred tax Asset | 82,049 | 59,203 |
Valuation allowance | (15,257) | (11,264) |
Total deferred tax assets | 66,792 | 47,939 |
Deferred tax liabilities: | ||
Deferred revenue | (984) | (1,111) |
Property and equipment depreciation | (17,734) | (10,668) |
Acquired intangible assets | (58,839) | (33,007) |
Operating lease right-of-use assets | (17,987) | (16,426) |
Other | (58) | (616) |
Total deferred tax liabilities | (95,602) | (61,828) |
Net deferred tax (liabilities) assets | $ (28,810) | $ (13,889) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 02, 2021 | Jul. 03, 2020 | Jun. 30, 2019 | |
Tax Credit Carryforward [Line Items] | |||
Excess Tax Benefit from Share-based Compensation, Operating Activities | $ 2,831 | $ 7,259 | $ 2,672 |
Domestic Tax Authority | Research and development credit carryforwards | |||
Tax Credit Carryforward [Line Items] | |||
Tax credit carryforwards | $ 18,926 | ||
Domestic Tax Authority | Research and development credit carryforwards | Maximum | |||
Tax Credit Carryforward [Line Items] | |||
Tax carryforward expiration year | 2034 | ||
State and Local Jurisdiction | Research and development credit carryforwards | |||
Tax Credit Carryforward [Line Items] | |||
Tax credit carryforwards | $ 18,926 |
Income Taxes - Summary of Reser
Income Taxes - Summary of Reserves for Unrecognized Income Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 02, 2021 | Jul. 03, 2020 | Jun. 30, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning of period | $ 4,117 | $ 1,273 | |
Increases for tax positions taken related to a prior period | 113 | 2,146 | |
Increases for tax positions taken during the current period | 917 | 854 | |
Reductions for previously recognized positions | (27) | 0 | |
Unrecognized Tax Benefits, Decrease Resulting from Current Period Tax Positions | 0 | 0 | |
Decreases for settlements of previously recognized positions | 0 | 0 | |
Decreases as a result of a lapse of the applicable statute of limitations | (1) | (156) | |
Unrecognized tax benefits, end of period | 7,467 | 4,117 | $ 1,273 |
Unrecognized tax benefits that would impact effective tax rate | 7,467 | ||
Interest and penalties accrued | 315 | 175 | |
interest and penalties recognized | $ 139 | $ 91 | $ 101 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 23, 2021 | Jul. 02, 2021 |
Embedded Reps of America, LLC Legal Claim | ||
Long-term Purchase Commitment [Line Items] | ||
Loss contingency, damages sought | $ 9,000 | |
Non-cancelable purchase commitments | ||
Long-term Purchase Commitment [Line Items] | ||
Purchase commitments for less than one year | $ 147,591 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Sep. 28, 2018 | May 02, 2016 | Jul. 02, 2021 | Jul. 03, 2020 | Jun. 30, 2019 |
Line of Credit Facility [Line Items] | |||||
Debt instrument borrowing term | 5 years | ||||
Interest Expense | $ (1,222,000) | $ (1,006,000) | $ (9,109,000) | ||
Letters of credit outstanding | $ 963,000 | ||||
Collateral Capital Stock | 65.00% | ||||
Revolver | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, maximum borrowing capacity | $ 750,000,000 | ||||
Debt instrument borrowing term | 5 years | ||||
Interest Expense | $ (1,222,000) | $ (1,006,000) | |||
Revolver [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument borrowing term | 5 years | ||||
Debt Issuance Costs, Net | 3,025,000 | ||||
Long-term line of credit | $ 200,000,000 | ||||
Revolver [Member] | Credit Agreement [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Basis Spread on Variable Rate | 1.125% | ||||
Commitment Fee Percentage | 0.20% |
Employee Benefit Plans - Pensio
Employee Benefit Plans - Pension, Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 02, 2021 | Jul. 03, 2020 | Jun. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Prior service costs, amortization period (in years) | 9 years | ||
Net gain in accumulated other comprehensive income | $ 3,285 | $ (1,768) | $ (2,350) |
Company contributions | 1,080 | ||
Expected company contributions, next fiscal year | 1,165 | ||
Employer contributions | 7,876 | 5,954 | 4,525 |
Foreign Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Funded status of plan | 9,807 | 11,877 | |
Net gain in accumulated other comprehensive income | (1,768) | ||
Company contributions | 1,080 | 911 | |
Fair value of plan assets | $ 18,807 | $ 18,078 | $ 15,088 |
Maximum | Foreign Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employee Contribution of eligible compensation | 3.00% | 3.00% | 3.00% |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Expected Future Pension Benefits (Details) - Foreign Plan [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 02, 2021 | Jul. 03, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ 1,962 | $ 1,237 |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | ||
2022 | 893 | |
2023 | 1,248 | |
2024 | 1,454 | |
2025 | 1,498 | |
2026 | 1,574 | |
Thereafter (next 5 years) | 7,723 | |
Total | $ 14,390 |
Employee Benefit Plans - Sche_2
Employee Benefit Plans - Schedule of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 02, 2021 | Jul. 03, 2020 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Amortization net of loss | $ 185 | $ 33 |
Settlement loss recognized | 318 | 0 |
Foreign Plan [Member] | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Service cost | 1,708 | 1,375 |
Interest cost | 92 | 125 |
Expected return on assets | (277) | (233) |
Amortization of prior service cost | (64) | (63) |
Net periodic benefit cost | $ 1,962 | $ 1,237 |
Employee Benefit Plans - Sche_3
Employee Benefit Plans - Schedule of Related Actuarial Assumptions (Details) - Foreign Plan [Member] | 12 Months Ended | |
Jul. 02, 2021 | Jul. 03, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 0.30% | 0.30% |
Expected rate of return on Plan assets | 1.50% | 1.50% |
Expected inflation | 1.00% | 1.00% |
Rate of compensation increases | 1.50% | 1.50% |
Employee Benefit Plans - Sche_4
Employee Benefit Plans - Schedule of Projected Benefit Obligation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 02, 2021 | Jul. 03, 2020 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Settlements | $ (3,129) | $ 0 |
Foreign exchange loss | 691 | 784 |
Foreign Plan [Member] | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Projected benefit obligation, beginning | 29,955 | 24,274 |
Service cost | 1,708 | 1,375 |
Interest cost | 92 | 125 |
Employee contributions | 2,145 | 1,916 |
Actuarial (gain) loss | (1,345) | 2,387 |
Benefits paid | (256) | (906) |
Plan amendment | (1,247) | 0 |
Projected benefit obligation at end of year | $ 28,614 | $ 29,955 |
Employee Benefit Plans - Sche_5
Employee Benefit Plans - Schedule of Change in Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 02, 2021 | Jul. 03, 2020 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Company contributions | $ 1,080 | |
Settlements | (3,129) | $ 0 |
Foreign Plan [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of Plan assets, beginning | 18,078 | 15,088 |
Actual return on Plan assets | 474 | 582 |
Company contributions | 1,080 | 911 |
Employee contributions | 2,145 | 1,916 |
Benefits paid | (256) | (906) |
Foreign exchange gain | 415 | 487 |
Fair value of Plan assets at end of year | $ 18,807 | $ 18,078 |
Employee Benefit Plans - Reconc
Employee Benefit Plans - Reconciliation of Funded Status (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 02, 2021 | Jul. 03, 2020 | Jun. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | $ (3,285) | $ 1,768 | $ 2,350 |
Foreign Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 0.30% | 0.30% | |
Projected benefit obligation at end of year | $ 28,614 | $ 29,955 | 24,274 |
Fair value of plan assets at end of year | 18,807 | 18,078 | $ 15,088 |
Funded status | $ (9,807) | $ (11,877) | |
Rate of compensation increases | 1.50% | 1.50% |
- 401(k) Plan (Details)
- 401(k) Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 02, 2021 | Jul. 03, 2020 | Jun. 30, 2019 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Employer contributions | $ 7,876 | $ 5,954 | $ 4,525 |
401(k) Plan | Maximum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employee Contribution of eligible compensation | 3.00% | 3.00% | 3.00% |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - $ / shares | Sep. 14, 2020 | Jul. 02, 2021 | Jul. 03, 2020 |
Equity [Abstract] | |||
Preferred stock shares authorized to issue (in shares) | 1,000,000 | 1,000,000 | |
Preferred stock shares par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Shares sold (in shares) | 200,000 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | Oct. 28, 2020 | Jul. 02, 2021 | Jul. 03, 2020 | Jun. 30, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 796 | $ 562 | ||
Stock Option Plan Twenty Eighteen | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized for issuance under stock incentive plan | 6,782,000 | |||
Shares available for future grant | 4,604,000 | |||
Number of additional shares authorized | 3,000 | |||
Stock Option Plan Twenty Zero Five | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for future grant | 710,000 | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of share options granted | 0 | |||
Intrinsic value of the options exercised | $ 183 | $ 67 | ||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total fair value of restricted stock awards vested | 34,342 | 46,089 | $ 24,596 | |
Unrecognized compensation cost related to non-vested restricted stock | $ 48,629 | $ 44,690 | ||
Unrecognized compensation, period of recognition | 2 years 4 months 24 days | 2 years 4 months 24 days | ||
1997 Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized for issuance under stock incentive plan | 2,300,000 | |||
Shares available for future grant | 428,000 | |||
Number of additional shares authorized | 500,000 | |||
Purchase price as a percentage of the lesser of the market value of such shares at either the beginning or the end of each nine-month offering period | 85.00% | |||
Offering period | 6 months | |||
Percentage of employee compensation that may be uses to purchase common stock through payroll deductions, maximum | 10.00% | |||
Number of share options granted | 101,000 | 89,000 | 102,000 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Plans (Detail) - Stock Options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jul. 02, 2021 | Jul. 03, 2020 | Jun. 30, 2019 | |
Number of Shares | |||
Outstanding at beginning of period | 3 | 4 | |
Exercised | (3) | (1) | |
Outstanding at end of period | 0 | 3 | 4 |
Vested and expected to vest at end of period | 0 | ||
Exercisable at end of period | 0 | ||
Weighted Average Exercise Price (in dollars per share) | |||
Outstanding at beginning of period | $ 5.52 | $ 5.52 | |
Exercised | 5.52 | 5.52 | |
Outstanding at end of period | 0 | $ 5.52 | $ 5.52 |
Vested and expected to vest at end of period | 0 | ||
Exercisable at end of period | $ 0 | ||
Weighted Average Remaining Contractual Term (Years) | |||
Outstanding at end of period | 1 year 1 month 13 days | 2 years 1 month 17 days | |
Aggregate Intrinsic Value | |||
Outstanding at end of period | $ 0 | ||
Vested and expected to vest at end of period | 0 | ||
Exercisable at end of period | $ 0 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Nonvested Restricted Stock (Detail) - Restricted Stock - $ / shares shares in Thousands | 12 Months Ended | |
Jul. 02, 2021 | Jul. 03, 2020 | |
Number of Shares | ||
Beginning Balance | 957 | 1,046 |
Granted | 570 | 522 |
Vested | (436) | (562) |
Forfeited | (78) | (49) |
Ending Balance | 1,013 | 957 |
Weighted Average Grant Date Fair Value (in dollars per share) | ||
Beginning Balance | $ 61.59 | $ 39.62 |
Granted | 76.03 | 80.87 |
Vested | 53.08 | 31.40 |
Forfeited | 69.54 | 54.96 |
Ending Balance | $ 70.77 | $ 61.59 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Based Compensation Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 02, 2021 | Jul. 03, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 796 | $ 562 | |
Share-based Payment Arrangement, Expense | 28,290 | 26,538 | $ 19,422 |
Income taxes | (7,355) | (6,900) | (5,263) |
Share-based compensation expense, net of income taxes | 20,935 | 19,638 | 14,159 |
Cost of revenues | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Payment Arrangement, Expense | 2,037 | 989 | 820 |
Selling, general and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Payment Arrangement, Expense | 21,866 | 21,688 | 16,188 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Payment Arrangement, Expense | $ 4,387 | $ 3,861 | $ 2,414 |
Operating Segment, Geographic_3
Operating Segment, Geographic Information and Significant Customers - Additional Information (Details) - segment | 12 Months Ended | |
Jul. 02, 2021 | Jul. 03, 2020 | |
Segment Reporting [Abstract] | ||
Number of operating segments | 1 | |
Number of reportable segments | 1 | 1 |
Operating Segment, Geographic_4
Operating Segment, Geographic Information and Significant Customers - Geographic Distribution of Revenues and Long Lived Assets from Continuing Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 02, 2021 | Apr. 02, 2021 | Jan. 01, 2021 | Oct. 02, 2020 | Jul. 03, 2020 | Mar. 27, 2020 | Dec. 27, 2019 | Sep. 27, 2019 | Jul. 02, 2021 | Jul. 03, 2020 | Jun. 30, 2019 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Net revenues to unaffiliated customers | $ 923,996 | $ 796,610 | $ 654,744 | ||||||||
Inter-geographic revenues | 0 | 0 | 0 | ||||||||
Net revenues | $ 250,842 | $ 256,857 | $ 210,676 | $ 205,621 | $ 217,377 | $ 208,016 | $ 193,913 | $ 177,304 | 923,996 | 796,610 | 654,744 |
Identifiable long-lived assets | 128,524 | 87,737 | 128,524 | 87,737 | 60,001 | ||||||
US | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Net revenues | 795,988 | 704,722 | 580,935 | ||||||||
Reportable Geographical Components | US | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Net revenues to unaffiliated customers | 876,479 | 744,270 | 599,422 | ||||||||
Inter-geographic revenues | 1,561 | 4,938 | 10,570 | ||||||||
Net revenues | 878,040 | 749,208 | 609,992 | ||||||||
Identifiable long-lived assets | 123,009 | 82,588 | 123,009 | 82,588 | 54,952 | ||||||
Reportable Geographical Components | Europe | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Net revenues to unaffiliated customers | 47,119 | 50,092 | 49,332 | ||||||||
Inter-geographic revenues | 1,985 | 3,067 | 1,343 | ||||||||
Net revenues | 49,104 | 53,159 | 50,675 | ||||||||
Identifiable long-lived assets | 5,509 | 5,144 | 5,509 | 5,144 | 5,037 | ||||||
Reportable Geographical Components | Asia Pacific | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Net revenues to unaffiliated customers | 398 | 2,248 | 5,990 | ||||||||
Inter-geographic revenues | 0 | 0 | 0 | ||||||||
Net revenues | 398 | 2,248 | 5,990 | ||||||||
Identifiable long-lived assets | 6 | 5 | 6 | 5 | 12 | ||||||
Geography Eliminations | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Net revenues to unaffiliated customers | 0 | 0 | 0 | ||||||||
Inter-geographic revenues | (3,546) | (8,005) | (11,913) | ||||||||
Net revenues | (3,546) | (8,005) | (11,913) | ||||||||
Identifiable long-lived assets | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Operating Segment, Geographic_5
Operating Segment, Geographic Information and Significant Customers - Net Revenue by End Market (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 02, 2021 | Apr. 02, 2021 | Jan. 01, 2021 | Oct. 02, 2020 | Jul. 03, 2020 | Mar. 27, 2020 | Dec. 27, 2019 | Sep. 27, 2019 | Jul. 02, 2021 | Jul. 03, 2020 | Jun. 30, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net revenues | $ 250,842 | $ 256,857 | $ 210,676 | $ 205,621 | $ 217,377 | $ 208,016 | $ 193,913 | $ 177,304 | $ 923,996 | $ 796,610 | $ 654,744 |
Domestic | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net revenues | 795,988 | 704,722 | 580,935 | ||||||||
International/Foreign Military Sales | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net revenues | $ 128,008 | $ 91,888 | $ 73,809 |
Operating Segment, Geographic_6
Operating Segment, Geographic Information and Significant Customers - Net Revenue by End Application (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 02, 2021 | Apr. 02, 2021 | Jan. 01, 2021 | Oct. 02, 2020 | Jul. 03, 2020 | Mar. 27, 2020 | Dec. 27, 2019 | Sep. 27, 2019 | Jul. 02, 2021 | Jul. 03, 2020 | Jun. 30, 2019 | |
Revenue from External Customer [Line Items] | |||||||||||
Net revenues | $ 250,842 | $ 256,857 | $ 210,676 | $ 205,621 | $ 217,377 | $ 208,016 | $ 193,913 | $ 177,304 | $ 923,996 | $ 796,610 | $ 654,744 |
Radar End User Applications | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net revenues | 289,172 | 233,967 | 164,046 | ||||||||
Electronic Warfare End User Applications | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net revenues | 139,168 | 156,666 | 128,841 | ||||||||
Other Sensor And Effector Applications [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net revenues | 98,112 | 105,175 | 90,245 | ||||||||
Total Sensor And Effector Applications [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net revenues | 526,452 | 495,808 | 383,132 | ||||||||
C4I Applications [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net revenues | 307,978 | 207,000 | 183,172 | ||||||||
Other End User Applications | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net revenues | $ 89,566 | $ 93,802 | $ 88,440 |
Operating Segment, Geographic_7
Operating Segment, Geographic Information and Significant Customers - Net Revenue by Product Grouping (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 02, 2021 | Apr. 02, 2021 | Jan. 01, 2021 | Oct. 02, 2020 | Jul. 03, 2020 | Mar. 27, 2020 | Dec. 27, 2019 | Sep. 27, 2019 | Jul. 02, 2021 | Jul. 03, 2020 | Jun. 30, 2019 | |
Revenue from External Customer [Line Items] | |||||||||||
Net revenues | $ 250,842 | $ 256,857 | $ 210,676 | $ 205,621 | $ 217,377 | $ 208,016 | $ 193,913 | $ 177,304 | $ 923,996 | $ 796,610 | $ 654,744 |
Components | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net revenues | 176,234 | 227,364 | 184,870 | ||||||||
Modules and Sub-assemblies | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net revenues | 156,557 | 131,177 | 180,873 | ||||||||
Integrated Subsystems | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net revenues | $ 591,205 | $ 438,069 | $ 289,001 |
Operating Segment, Geographic_8
Operating Segment, Geographic Information and Significant Customers - Net Revenue by Platform (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 02, 2021 | Apr. 02, 2021 | Jan. 01, 2021 | Oct. 02, 2020 | Jul. 03, 2020 | Mar. 27, 2020 | Dec. 27, 2019 | Sep. 27, 2019 | Jul. 02, 2021 | Jul. 03, 2020 | Jun. 30, 2019 | |
Revenue from External Customer [Line Items] | |||||||||||
Net revenues | $ 250,842 | $ 256,857 | $ 210,676 | $ 205,621 | $ 217,377 | $ 208,016 | $ 193,913 | $ 177,304 | $ 923,996 | $ 796,610 | $ 654,744 |
Airborne | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net revenues | 416,877 | 397,553 | 306,412 | ||||||||
Land | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net revenues | 182,591 | 102,956 | 83,034 | ||||||||
Naval | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net revenues | 187,205 | 166,912 | 136,966 | ||||||||
Other | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net revenues | $ 137,323 | $ 129,189 | $ 128,332 |
Operating Segment, Geographic_9
Operating Segment, Geographic Information and Significant Customers - Customers Comprising Ten Percent or More of Revenues (Details) - Customer Concentration Risk - Revenues | 12 Months Ended | ||
Jul. 02, 2021 | Jul. 03, 2020 | Jun. 30, 2019 | |
Raytheon Company | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percent | 19.00% | 16.00% | 20.00% |
Lockheed Martin Corporation | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percent | 15.00% | 16.00% | 17.00% |
U.S. Navy | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percent | 12.00% | 0.00% | 0.00% |
Three major customers, cumulative | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percent | 46.00% | 32.00% | 37.00% |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands | Aug. 02, 2021USD ($)employee | Jul. 02, 2021position | Jul. 03, 2020position |
Subsequent Event [Line Items] | |||
Number of positions eliminated | position | 90 | 20 | |
Subsequent Event | 1MPACT | |||
Subsequent Event [Line Items] | |||
Number of positions eliminated | employee | 90 | ||
Restructuring and related cost, expected cost | $ 9,400 | ||
Subsequent Event | 1MPACT | Employee Severance | |||
Subsequent Event [Line Items] | |||
Restructuring and related cost, expected cost | 5,800 | ||
Subsequent Event | 1MPACT | Third-Party Consulting Costs | |||
Subsequent Event [Line Items] | |||
Restructuring and related cost, expected cost | $ 3,600 |
Supplementary Information (Un_3
Supplementary Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Jul. 02, 2021 | Apr. 02, 2021 | Jan. 01, 2021 | Oct. 02, 2020 | Jul. 03, 2020 | Mar. 27, 2020 | Dec. 27, 2019 | Sep. 27, 2019 | Sep. 30, 2018 | Jul. 02, 2021 | Jul. 03, 2020 | Jun. 30, 2019 | |
Unaudited consolidated quarterly statements of operations data | ||||||||||||
Net revenues | $ 250,842 | $ 256,857 | $ 210,676 | $ 205,621 | $ 217,377 | $ 208,016 | $ 193,913 | $ 177,304 | $ 923,996 | $ 796,610 | $ 654,744 | |
Gross margin | 102,779 | 105,623 | 88,667 | 88,119 | 96,613 | 93,325 | 88,506 | 78,400 | 385,188 | 356,844 | 286,156 | |
Income from operations | 22,406 | 21,712 | 18,113 | 18,770 | 26,419 | 26,342 | 20,825 | 17,476 | 81,001 | 91,062 | 76,584 | |
Income before income taxes | 21,061 | 20,997 | 17,119 | 17,996 | 26,990 | 28,928 | 20,786 | 17,229 | 77,173 | 93,933 | 59,527 | |
Income tax provision | 3,136 | 5,362 | 4,433 | 2,198 | (234) | 5,363 | 5,110 | (2,018) | 15,129 | 8,221 | 12,752 | |
Net income | $ 17,925 | $ 15,635 | $ 12,686 | $ 15,798 | $ 27,224 | $ 23,565 | $ 15,676 | $ 19,247 | $ 62,044 | $ 85,712 | $ 46,775 | |
Earnings Per Share [Abstract] | ||||||||||||
Basic net income per share (in dollars per share) | $ 0.32 | $ 0.28 | $ 0.23 | $ 0.29 | $ 0.50 | $ 0.43 | $ 0.29 | $ 0.35 | $ 1.13 | $ 1.57 | $ 0.98 | |
Diluted net income per share (in dollars per share) | $ 0.32 | $ 0.28 | $ 0.23 | $ 0.29 | $ 0.49 | $ 0.43 | $ 0.29 | $ 0.35 | $ 1.12 | $ 1.56 | $ 0.96 |