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ACQUISITION | 12 Months Ended
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Jul. 01, 2017
Business Combinations [Abstract] |
ACQUISITION | ACQUISITION On September 3, 2014, the Company acquired all of the outstanding stock of Ayrshire, resulting in Ayrshire becoming a wholly owned subsidiary of the Company. Ayrshire provides printed circuit board assembly and other electronic manufacturing services to a diversified customer base through manufacturing facilities operated by Ayrshire or its subsidiaries in Minnesota, Arkansas, Mississippi, and Kentucky and through a sheltered maquiladora facility in Reynosa, Mexico. The Reynosa, Mexico operations were moved to the Company's existing facility in Juarez, Mexico shortly after acquisition. During the second quarter of fiscal year 2017, the Company closed the Harrodsburg, Kentucky facility in order to improve operating efficiencies. The remaining programs from the Kentucky facility were transferred to other facilities. This acquisition expanded our printed circuit board assembly capacity, total revenue, and added to and diversified our customer base with the addition of many new multi-national companies. The total cash payment of approximately $48.0 million was funded through borrowings on our term loan, revolving line of credit, and cash on hand. The Company incurred approximately $775,000 of costs related to due diligence. The following table summarizes the purchase price paid for Ayrshire and the fair value of the assets acquired and liabilities assumed as of the date of acquisition (in thousands):
| Estimated Fair Values
| At September 3, 2014
Purchase Price Paid | $ | 48,010 |
Cash Acquired | (46 | )
Purchase Price, Net of Cash Received | $ | 47,964 |
Cash | $ | 46 |
Accounts Receivable | 21,211 |
Inventories | 21,772 |
Other Current Assets | 1,013 |
Property, Plant and Equipment | 7,823 |
Favorable Leases | 2,941 |
Customer Relationships | 2,833 |
Non-Compete Agreements | 196 |
Goodwill | 8,217 |
Other Assets | 42 |
Accounts Payable | (11,070 | )
Accrued Salaries and Wages | (2,188 | )
Other Current Liabilities | (2,408 | )
Deferred Tax Liability | (2,418 | )
Fair Value of Assets Acquired | $ | 48,010 |
The Ayrshire acquisition was accounted for using the acquisition method of accounting whereby the total purchase price is allocated to tangible and intangible assets and liabilities based on their fair values on the date of acquisition. The Company determined the purchase price allocations on the acquisition based on estimates of the fair values of the assets acquired and liabilities assumed. The following summary pro forma condensed consolidated financial information reflects the Ayrshire acquisition as if it had occurred on June 30, 2013 for purposes of the statements of income. This summary pro forma information is not necessarily representative of what the Company’s results of operations would have been had this acquisition in fact occurred on June 30, 2013 and is not intended to project the Company’s results of operations for any future period. Pro forma condensed consolidated financial information for the year ended June 27, 2015 (in thousands):
|  | Fiscal Year Ended
|  | (unaudited)
|  | June 27, 2015
Net sales |  | $ | 457,475 |
Net income |  | $ | 4,136 |
It is impracticable to determine the revenue and net income related to the Ayrshire acquisition as certain customer programs have been transferred to the Company’s Juarez facilities.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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- References No definition available. + Details
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