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Note 17 - Fair Value of Financial Instruments and Non-Financial Assets and Liabilities | 9 Months Ended
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Mar. 30, 2014
Fair Value Disclosures [Abstract] |
Fair Value Disclosures [Text Block] | 17. Fair Value of Financial Instruments and Non-Financial Assets and Liabilities Financial Instruments The Company uses derivative financial instruments, such as foreign currency contracts or interest rate swaps, to reduce its ongoing business exposures to fluctuations in foreign currency exchange rates or interest rates. The Company does not enter into derivative contracts for speculative purposes. Foreign currency contracts The Company enters into foreign currency contracts as economic hedges for exposures related to certain sales, inventory purchases and equipment purchases that are denominated in currencies that are not its functional currency. As of March 30, 2014, the latest maturity date for all outstanding foreign currency contracts is during July 2014. These items are not designated as hedges by the Company and are marked to market each period and offset by the foreign exchange (gains) losses included in other operating expense, net resulting from the underlying exposures of the foreign currency denominated assets and liabilities. Interest rate swap On May 18, 2012, the Company entered into a five year, $50,000 interest rate swap with Wells Fargo to provide a hedge against the variability of cash flows related to LIBOR-based variable rate borrowings under the Company’s ABL Revolver and ABL Term Loan. The swap increased to $85,000 in May 2013 and began decreasing $5,000 per quarter in August 2013 and will continue to do so until the balance again reaches $50,000 in February 2015, where it will remain through the life of the instrument. This interest rate swap allows the Company to fix LIBOR at 1.06% and terminates on May 24, 2017. On November 26, 2012, the Company de-designated this interest rate swap as a cash flow hedge. For the year-to-date period ended March 30, 2014, the Company reclassified pre-tax unrealized losses of $433 from accumulated other comprehensive loss to interest expense; the Company expects to reclassify additional losses of $386 during the next twelve months. Contingent consideration On December 2, 2013, the Company acquired certain assets in a business combination with Dillon and recorded a contingent consideration liability, as described in “Note 4. Acquisition.” The fair value of the contingent consideration is measured at each reporting period using a discounted cash flow methodology based on inputs not observable in the market (Level 3 classification in the fair value hierarchy) and any change in the fair value from either the passage of time or events occurring after the acquisition date is recorded in other operating expense, net in the consolidated statements of income. As of March 30, 2014, the inputs and assumptions used to develop the fair value measurement have not changed since the acquisition date. A reconciliation of the changes in the fair value follows:
Contingent consideration as of December 29, 2013 |  | $ | 2,500 |
Change in fair value |  |  | 98 |
Payment |  |  | (11 | )
Contingent consideration as of March 30, 2014 |  | $ | 2,587 |
Based on the present value of the expected future payments, the Company has recorded a liability of $562 in accrued expenses and $2,025 in other long-term liabilities. The Company’s financial assets and liabilities accounted for at fair value on a recurring basis, and the level within the fair value hierarchy used to measure these items, are as follows:
As of March 30, 2014 |  | Notional Amount |  |  | USD Equivalent |  | Balance Sheet Location |  | Fair Value Hierarchy |  | Fair Value |
Foreign currency contracts |  | MXN |  |  | 1,200 |  |  |  | $ | 91 |  | Accrued expenses |  | Level 2 |  | $ | (1 | )
Foreign currency contracts |  | EUR |  |  | 495 |  |  |  | $ | 667 |  | Other current assets |  | Level 2 |  | $ | 14 |
Interest rate swap |  | USD |  | $ | 70,000 |  |  |  | $ | 70,000 |  | Other long-term liabilities |  | Level 2 |  | $ | (217 | )
Contingent consideration |  |  |  |  |  |  |  |  |  |  |  | Accrued expenses and other long-term liabilities |  | Level 3 |  | $ | (2,587 | )
As of June 30, 2013 |  | Notional Amount |  |  | USD Equivalent |  | Balance Sheet Location |  | Fair Value Hierarchy |  |  | Fair Value |
Foreign currency contracts |  | MXN |  |  | 3,800 |  |  | $ | 295 |  | Other current assets |  | Level 2 |  | $ | 3 |
Interest rate swap |  | USD |  | $ | 85,000 |  |  | $ | 85,000 |  | Other long-term liabilities |  | Level 2 |  | $ | (324 | )
(MXN represents the Mexican Peso; EUR represents the Euro) Estimates of the fair value of the Company’s foreign currency contracts and interest rate swaps are obtained from month-end market quotes for contracts with similar terms. The effect of marked to market hedging derivative instruments was as follows:
|  |  | For the Three Months Ended |
Derivatives not designated as hedges | Classification |  | March 30, 2014 |  |  | March 24, 2013 |
Foreign currency contracts | Other operating expense, net |  | $ | 3 |  |  | $ | 15 |
Interest rate swap | Interest expense |  |  | (99 | ) |  |  | (103 | )
Total gain recognized in income |  | $ | (96 | ) |  | $ | (88 | )
|  |  | For the Nine Months Ended |
Derivatives not designated as hedges | Classification |  | March 30, 2014 |  |  | March 24, 2013 |
Foreign currency contracts | Other operating expense, net |  | $ | (19 | ) |  | $ | 53 |
Interest rate swap | Interest expense |  |  | (107 | ) |  |  | (177 | )
Total gain recognized in income |  | $ | (126 | ) |  | $ | (124 | )
By entering into derivative instrument contracts, the Company exposes itself to counterparty credit risk. The Company attempts to minimize this risk by selecting counterparties with investment grade credit ratings, limiting the amount of exposure to any single counterparty and regularly monitoring its market position with each counterparty. The Company’s derivative instruments do not contain any credit risk related contingent features. Since its most recent debt refinancing and modification, the Company believes that there have been no significant changes to its credit risk profile or the interest rates available to the Company for debt issuances with similar terms and average maturities, and the Company estimates that the fair values of its long-term debt obligations approximate their carrying amounts. Other financial instruments include cash and cash equivalents, receivables, accounts payable and accrued expenses. The financial statement carrying amounts of these items approximate their fair value because of their short-term nature. There were no transfers into or out of the levels of the fair value hierarchy for the periods ended March 30, 2014 or March 24, 2013. Non-Financial Assets and Liabilities The Company did not have any non-financial assets or liabilities that were required to be measured at fair value on a recurring basis.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=28364263&loc=d3e13537-108611 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=28364263&loc=d3e13433-108611 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=25499696&loc=d3e19207-110258 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=28364263&loc=d3e13504-108611 + Details
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