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Significant Accounting Policies (Tables)

12 Months Ended

Jun. 28, 2018

Depreciation Expense for Last Three Fiscal Years

Depreciation expense for the last three fiscal years is as follows:


	Year Ended June 28, 2018		Year Ended June 29, 2017		Year Ended June 30, 2016
Depreciation expense	$	13,414	$	14,190	$	14,875

Estimated Useful Lives of Property, Plant and Equipment

Cost is depreciated using the straight-line method over the following estimated useful lives:


Classification	Estimated Useful Lives
Buildings		10 to 40 years
Machinery and equipment		5 to 10 years
Furniture and leasehold improvements		5 to 10 years
Vehicles		3 to 5 years
Computers and software		3 to 5 years

Schedule of Gross Rental Income and Rental (Expense)

The net rental expense from the office building is included in the caption “Rental and miscellaneous expense, net”. Gross rental income and rental (expense), net for the last three fiscal years are as follows:


	Year ended June 28, 2018			Year ended June 29, 2017			Year ended June 30, 2016
Gross rental income	$	1,988		$	2,003		$	1,898
Rental (expense), net ⁽¹⁾		(1,420	)		(1,311	)		(1,371	)

⁽¹⁾	Includes annual depreciation expense of approximately $800.

Expected Future Gross Rental Income Under Operating Leases within Office Building

Expected future gross rental income under operating leases within the office building is as follows for the fiscal years ending:


June 27, 2019	$	1,940
June 25, 2020		1,875
June 24, 2021		1,647
June 30, 2022		1,431
June 29, 2023		1,450
Thereafter		1,950

	$	10,293

Carrying Value and Fair Value Estimate of Current and Long-Term Debt

The following table summarizes the carrying value and fair value estimate of our current and long-term debt, excluding unamortized debt issuance costs:


	June 28, 2018		June 29, 2017
Carrying value of long-term debt:	$	34,649	$	28,808
Fair value of long-term debt:		33,482		29,316

Marketing and Advertising Expenses, Recorded in Selling Expenses

Marketing and advertising costs are incurred to promote and support branded products in the consumer distribution channel. These costs are generally expensed as incurred, recorded in selling expenses, and were as follows for the last three fiscal years:


	Year ended June 28, 2018		Year ended June 29, 2017		Year ended June 30, 2016
Marketing and advertising expense	$	11,290	$	10,064	$	11,569

Shipping and Handling Cost for Last Three Fiscal Years

Shipping and handling costs, which include freight and other expenses to prepare finished goods for shipment, are included in selling expenses. Shipping and handling costs for the last three fiscal years were as follows:


	Year ended June 28, 2018		Year ended June 29, 2017		Year ended June 30, 2016
Shipping and handling costs	$	20,418	$	17,682	$	16,686

Research and Development Expenses for Last Three Fiscal Years

Research and development expense represents the cost of our research and development personnel and their related expenses and is charged to selling expenses as incurred. Research and development expenses for the last three fiscal years were as follows:


	Year ended June 28, 2018		Year ended June 29, 2017		Year ended June 30, 2016
Research and development expense	$	701	$	658	$	653

Weighted Average Shares Outstanding Used in Computing Basic and Diluted Earnings Per Share

The following table presents the reconciliation of the weighted average shares outstanding used in computing basic and diluted earnings per share:


	Year ended June 28, 2018		Year ended June 29, 2017		Year ended June 30, 2016
Weighted average number of shares outstanding — basic		11,383,080		11,317,149		11,233,975
Effect of dilutive securities:
Stock options and restricted stock units		66,306		86,456		98,949

Weighted average number of shares outstanding — diluted		11,449,386		11,403,605		11,332,924

Summary of Anti-dilutive Awards Excluded from Computation of Diluted Earnings Per Share

The following table presents a summary of anti-dilutive awards excluded from the computation of diluted earnings per share:


	Year ended June 28, 2018		Year ended June 29, 2017		Year ended June 30, 2016
Weighted average number of anti-dilutive shares:		—		1,068		—
Weighted average exercise price per share:	$	—	$	65.35	$	—