SANFILIPPO JOHN B & SON INC, 10-Q filed on 05 Feb 18
v3.8.0.1
Document and Entity Information - shares
6 Months Ended
Dec. 28, 2017
Jan. 25, 2018
Document Information [Line Items]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Dec. 28, 2017  
Document Fiscal Year Focus 2018  
Document Fiscal Period Focus Q2  
Trading Symbol JBSS  
Entity Registrant Name SANFILIPPO JOHN B & SON INC  
Entity Central Index Key 0000880117  
Current Fiscal Year End Date --06-28  
Entity Filer Category Accelerated Filer  
Common Stock, Non-Cumulative Voting Rights of One Vote Per Share [Member]    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   8,744,197
Class A Common Stock [Member]    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   2,597,426
v3.8.0.1
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Dec. 28, 2017
Dec. 29, 2016
Dec. 28, 2017
Dec. 29, 2016
Statement of Comprehensive Income [Abstract]        
Net sales $ 259,118 $ 249,375 $ 473,909 $ 471,668
Cost of sales 221,238 205,986 401,189 391,804
Gross profit 37,880 43,389 72,720 79,864
Operating expenses:        
Selling expenses 15,844 15,370 26,789 26,641
Administrative expenses 7,787 7,744 14,346 15,859
Total operating expenses 23,631 23,114 41,135 42,500
Income from operations 14,249 20,275 31,585 37,364
Other expense:        
Interest expense including $245, $201, $439 and $391 to related parties 805 608 1,586 1,230
Rental and miscellaneous expense, net 241 299 863 709
Other expense 493 533 985 1,066
Total other expense, net 1,539 1,440 3,434 3,005
Income before income taxes 12,710 18,835 28,151 34,359
Income tax expense 4,954 5,950 9,963 11,294
Net income 7,756 12,885 18,188 23,065
Other comprehensive income:        
Amortization of prior service cost and actuarial loss included in net periodic pension cost 281 331 560 661
Income tax expense related to pension adjustments (111) (126) (219) (251)
Other comprehensive income, net of tax 170 205 341 410
Comprehensive income $ 7,926 $ 13,090 $ 18,529 $ 23,475
Net income per common share-basic $ 0.68 $ 1.14 $ 1.60 $ 2.04
Net income per common share-diluted 0.68 1.13 1.59 2.03
Cash dividends declared per share $ 0.00 $ 2.50 $ 2.50 $ 5.00
v3.8.0.1
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Dec. 28, 2017
Dec. 29, 2016
Dec. 28, 2017
Dec. 29, 2016
Statement of Comprehensive Income [Abstract]        
Interest expense to related parties $ 245 $ 201 $ 439 $ 391
v3.8.0.1
Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands
Dec. 28, 2017
Jun. 29, 2017
Dec. 29, 2016
CURRENT ASSETS:      
Cash $ 3,052 $ 1,955 $ 2,031
Accounts receivable, less allowance for doubtful accounts of $273, $263 and $306 70,437 64,830 66,007
Inventories 168,852 182,420 182,653
Prepaid expenses and other current assets 13,457 4,172 6,841
TOTAL CURRENT ASSETS 255,798 253,377 257,532
PROPERTY, PLANT AND EQUIPMENT:      
Land 9,285 9,285 9,285
Buildings 108,092 107,015 106,566
Machinery and equipment 196,715 194,099 193,859
Furniture and leasehold improvements 4,951 4,842 4,803
Vehicles 535 498 453
Construction in progress 2,652 1,075 1,483
Property, plant and equipment gross 322,230 316,814 316,449
Less: Accumulated depreciation 214,426 210,606 206,751
Property, plant and equipment net 107,804 106,208 109,698
Rental investment property, less accumulated depreciation of $10,035, $9,639 and $9,244 18,858 19,254 19,650
TOTAL PROPERTY, PLANT AND EQUIPMENT 126,662 125,462 129,348
Cash surrender value of officers' life insurance and other assets 9,057 10,125 10,091
Deferred income taxes 5,979 9,095 8,109
Goodwill 9,638    
Intangible assets, net 19,341 0 611
TOTAL ASSETS 426,475 398,059 405,691
CURRENT LIABILITIES:      
Revolving credit facility borrowings 30,000 29,456 12,427
Current maturities of long-term debt, including related party debt of $4,324, $474 and $457 and net of unamortized debt issuance costs of $50, $55 and $60 7,274 3,418 3,397
Accounts payable, including related party payables of $0, $178 and $32 84,834 50,047 90,787
Bank overdraft 2,894 932 2,652
Accrued payroll and related benefits 6,333 15,958 10,609
Other accrued expenses 9,387 10,062 9,966
TOTAL CURRENT LIABILITIES 140,722 109,873 129,838
LONG-TERM LIABILITIES:      
Long-term debt, less current maturities, including related party debt of $17,682, $10,584 and $10,825 and net of unamortized debt issuance costs of $100, $124 and $150 30,832 25,211 26,925
Retirement plan 21,396 20,994 22,532
Other 7,084 6,513 6,695
TOTAL LONG-TERM LIABILITIES 59,312 52,718 56,152
TOTAL LIABILITIES 200,034 162,591 185,990
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:      
Capital in excess of par value 118,585 117,772 116,676
Retained earnings 113,008 123,190 110,130
Accumulated other comprehensive loss (4,063) (4,404) (6,015)
Treasury stock, at cost; 117,900 shares of Common Stock (1,204) (1,204) (1,204)
TOTAL STOCKHOLDERS' EQUITY 226,441 235,468 219,701
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY 426,475 398,059 405,691
Class A Common Stock [Member]      
STOCKHOLDERS' EQUITY:      
Common Stock 26 26 26
Common Stock, Non-Cumulative Voting Rights of One Vote Per Share [Member]      
STOCKHOLDERS' EQUITY:      
Common Stock $ 89 $ 88 $ 88
v3.8.0.1
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)
$ in Thousands
Dec. 28, 2017
Jun. 29, 2017
Dec. 29, 2016
Allowance for doubtful accounts for accounts receivable, current $ 273 $ 263 $ 306
Accumulated depreciation of rental investment property 10,035 9,639 9,244
Current maturities of long-term debt, related party debt 4,324 474 457
Unamortized debt issuance costs, current 50 55 60
Accounts payable, related party payables 0 178 32
Related party debt, Non-current 17,682 10,584 10,825
Unamortized debt issuance costs, noncurrent $ 100 $ 124 $ 150
Treasury stock, shares 117,900 117,900 117,900
Class A Common Stock [Member]      
Common stock, par value $ 0.01 $ 0.01 $ 0.01
Common stock, shares authorized 10,000,000 10,000,000 10,000,000
Common stock, shares issued 2,597,426 2,597,426 2,597,426
Common stock, shares outstanding 2,597,426 2,597,426 2,597,426
Common Stock, Non-Cumulative Voting Rights of One Vote Per Share [Member]      
Common stock, par value $ 0.01 $ 0.01 $ 0.01
Common stock, shares authorized 17,000,000 17,000,000 17,000,000
Common stock, shares issued 8,859,097 8,801,641 8,785,938
v3.8.0.1
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
6 Months Ended
Dec. 28, 2017
Dec. 29, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income $ 18,188 $ 23,065
Depreciation and amortization 7,064 7,973
Loss on disposition of assets, net 319 53
Deferred income tax expense 3,116 481
Stock-based compensation expense 1,429 1,428
Change in assets and liabilities, net of business acquired:    
Accounts receivable, net (3,176) 12,067
Inventories 15,525 (26,080)
Prepaid expenses and other current assets (5,111) (2,468)
Accounts payable 34,014 46,925
Accrued expenses (9,124) (4,672)
Income taxes payable (5,422) 2,928
Other long-term assets and liabilities 694 (115)
Other, net 915 845
Net cash provided by operating activities 58,431 62,430
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchases of property, plant and equipment (6,966) (6,672)
Acquisition of Squirrel Brand L.P. (21,909)  
Other 72 48
Net cash used in investing activities (28,803) (6,624)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Borrowings under revolving credit facility 226,985 166,816
Repayments of revolving credit borrowings (226,441) (166,473)
Principal payments on long-term debt (2,052) (1,758)
Increase in bank overdraft 1,962 1,841
Dividends paid (28,370) (56,464)
Issuance of Common Stock under equity award plans 16 43
Taxes paid related to net share settlement of equity awards (631)  
Net cash used in financing activities (28,531) (55,995)
NET INCREASE (DECREASE) IN CASH 1,097 (189)
Cash, beginning of period 1,955 2,220
Cash, end of period 3,052 2,031
Supplemental disclosure of non-cash investing activities:    
Acquisition of Squirrel Brand L.P. through note payable $ 11,500 $ 0
v3.8.0.1
Basis of Presentation and Description of Business
6 Months Ended
Dec. 28, 2017
Accounting Policies [Abstract]  
Basis of Presentation and Description of Business

Note 1 – Basis of Presentation and Description of Business

As used herein, unless the context otherwise indicates, the terms “we”, “us”, “our” or “Company” collectively refer to John B. Sanfilippo & Son, Inc. and our wholly-owned subsidiary, JBSS Ventures, LLC. Our fiscal year ends on the final Thursday of June each year, and typically consists of fifty-two weeks (four thirteen-week quarters). Additional information on the comparability of the periods presented is as follows:

 

    References herein to fiscal 2018 and fiscal 2017 are to the fiscal year ending June 28, 2018 and the fiscal year ended June 29, 2017, respectively.

 

    References herein to the second quarter of fiscal 2018 and fiscal 2017 are to the quarters ended December 28, 2017 and December 29, 2016, respectively.

 

    References herein to the first half or first twenty-six weeks of fiscal 2018 and fiscal 2017 are to the twenty-six weeks ended December 28, 2017 and December 29, 2016, respectively.

We are one of the leading processors and distributors of peanuts, pecans, cashews, walnuts, almonds, and other nuts in the United States. These nuts are sold under a variety of private brands and under the Fisher, Orchard Valley Harvest, Squirrel Brand, Southern Style Nuts, and Sunshine Country brand names. We also market and distribute, and in most cases, manufacture or process, a diverse product line of food and snack products, including peanut butter, almond butter, cashew butter, candy and confections, snacks and trail mixes, snack bites, sunflower kernels, dried fruit, corn snacks, sesame sticks and other sesame snack products under private brands and brand names. Our products are sold through three primary distribution channels to significant buyers of nuts, including food retailers in the consumer channel, commercial ingredient users and contract packaging customers.

The accompanying unaudited financial statements fairly present the consolidated statements of comprehensive income, consolidated balance sheets and consolidated statements of cash flows, and reflect all adjustments, consisting only of normal recurring adjustments which are necessary for the fair statement of the results of the interim periods. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses.

The interim results of operations are not necessarily indicative of the results to be expected for a full year. The balance sheet data as of June 29, 2017 was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“GAAP”). Accordingly, these unaudited financial statements and related notes should be read in conjunction with the audited consolidated financial statements and notes thereto included in our 2017 Annual Report on Form 10-K for the fiscal year ended June 29, 2017.

v3.8.0.1
Inventories
6 Months Ended
Dec. 28, 2017
Inventory Disclosure [Abstract]  
Inventories

Note 2 – Inventories

Inventories consist of the following:

 

     December 28,
2017
     June 29,
2017
     December 29,
2016
 

Raw material and supplies

   $ 80,867      $ 79,609      $ 107,735  

Work-in-process and finished goods

     87,985        102,811        74,918  
  

 

 

    

 

 

    

 

 

 

Total

   $ 168,852      $ 182,420      $ 182,653  
  

 

 

    

 

 

    

 

 

 
v3.8.0.1
Acquisition of Squirrel Brand L.P.
6 Months Ended
Dec. 28, 2017
Business Combinations [Abstract]  
Acquisition of Squirrel Brand L.P.

Note 3 – Acquisition of Squirrel Brand L.P.

On November 30, 2017, we acquired certain assets and assumed certain liabilities (the “Acquisition”) of Squirrel Brand L.P. (“Squirrel Brand”) for a purchase price of $31,500, subject to a working capital adjustment. After giving effect to the initial working capital adjustment, the purchase price was $33,409, of which $21,909 was paid in cash and $11,500 was financed by the seller through a three-year unsecured promissory note (the “Promissory Note”). The final working capital adjustment, if any, will be completed in our upcoming third quarter of fiscal 2018. The cash portion of the acquisition price was funded from our credit facility. The Promissory Note bears interest at 5.5% per annum and is payable in equal monthly principal payments of $319, plus interest, beginning in January 2018. The Promissory Note can be prepaid without penalty.

The Squirrel Brand business is one of the nation’s leading suppliers of indulgent and premium roasted nuts and snack mixes under its Squirrel Brand and Southern Style Nuts brands. Prior to the Acquisition, Squirrel Brand was a customer in our Contract Packaging sales channel for fourteen years. The Acquisition has been accounted for as a business combination in accordance with ASC Topic 805, “Business Combinations”. As a result of the Acquisition, we expanded our customer base and branded product portfolio, as well as increased our customer reach, especially into alternative distribution channels.

The total purchase price of $33,409 has been allocated on a preliminary basis to the fair values of the assets acquired and liabilities assumed as follows:

 

Accounts receivable

   $ 2,446  

Inventories

     1,957  

Other assets

     75  

Identifiable intangible assets:

  

Customer relationships

     10,500  

Brand names

     8,900  

Non-compete agreement

     270  

Goodwill

     9,638  

Accounts payable and accrued expenses

     (377
  

 

 

 

Total Purchase Price

   $ 33,409  
  

 

 

 

The customer relationship assets represent the value of the long-term strategic relationship the Squirrel Brand business has with its significant customers, which we are amortizing over a weighted-average life of 7.5 years. The assets were valued using an income approach, specifically the “multi-period excess earnings” method, which identifies an estimated stream of revenues and expenses for a particular group of assets from which deductions of portions of the projected economic benefits, attributable to assets other than the subject asset (contributory assets), are deducted in order to isolate the prospective earnings of the subject asset. This value is considered a level 3 measurement under the GAAP fair value hierarchy.

The brand name assets represent the value of the established Squirrel Brand and Southern Style Nuts names. We applied the income approach through a relief from royalty method analysis to determine the preliminary fair value of the brand name assets. We are amortizing the brand name assets over a weighted-average life of 13.8 years.

Goodwill, which is expected to be deductible for taxes, arises from intangible assets that do not qualify for separate recognition and expected synergies from combining the operations of Squirrel Brand with the Company. There were no material contingencies recognized or unrecognized associated with the acquired business.

The purchase price allocation, especially amounts allocated to goodwill and intangible assets are based on preliminary valuations and are subject to final adjustments to reflect the final net working capital adjustment and valuations.

 

The following reflects the unaudited pro forma results of operations of the Company as if the Acquisition had taken place at the beginning of fiscal 2017. This pro forma information does not purport to represent what the Company’s actual results would have been if the Acquisition had occurred as of the date indicated or what such results would be for any future periods.

 

     Year-Ended
June 29,
2017
     Twenty-six
weeks ended
December 28,
2017
 

Pro forma net sales

   $ 863,267      $ 479,054  

Pro forma net income

     36,723        18,762  

Pro forma diluted earnings per share

   $ 3.22      $ 1.64  

These unaudited pro forma results have been calculated after applying our accounting policies and adjusting the results of the Squirrel Brand business to reflect elimination of transaction costs and to record additional amortization and interest expense that would have been charged, assuming the fair value adjustment to intangible assets since July 1, 2016, net of related income taxes in respect of pro forma net income and diluted earnings per share performance. Transaction costs of $500, already recorded in Administrative expenses, are excluded from the pro forma net income for the twenty-six weeks ended December 28, 2017 stated above.

Net sales of $3,976 resulting from the Acquisition are included in our consolidated financial results as of December 28, 2017 since the Acquisition closed on November 30, 2017.

Since the Acquisition, we continue to operate in a single reportable operating segment that consists of selling various nut and nut-related products through three sales distribution channels.

v3.8.0.1
Goodwill and Intangible Assets
6 Months Ended
Dec. 28, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets

Note 4 – Goodwill and Intangible Assets

Identifiable intangible assets that are subject to amortization, which resulted entirely from the Acquisition, are based on our preliminary purchase price allocation and consist of the following at December 28, 2017:

 

     December 28,
2017
     Weighted-average
amortization
period (years)
 

Customer relationships

   $ 10,500        7.5  

Brand names

     8,900        13.8  

Non-compete agreement

     270        5.0  
  

 

 

    

 

 

 
     19,670        11.3  

Less accumulated amortization:

     

Customer relationships

     (267   

Brand names

     (58   

Non-compete agreement

     (4   
  

 

 

    
     (329   
  

 

 

    

Net intangible assets

   $ 19,341     
  

 

 

    

Gross intangible assets of $18,690 from previous acquisitions were fully amortized as of June 29, 2017.

Customer relationships are being amortized on an accelerated basis. The brand names consist of the Squirrel Brand and Southern Style Nuts brand names.

Total amortization expense related to intangible assets, which is a component of Administrative expense, was $329 for the quarter and twenty-six weeks ended December 28, 2017. Amortization expense for the remainder of fiscal 2018, based on our preliminary purchase price allocation, is expected to be approximately $1,685 and expected amortization expense the next five fiscal years is as follows:

 

Fiscal year ending

      

June 27, 2019

   $ 3,028  

June 25, 2020

     2,500  

June 24, 2021

     2,162  

June 30, 2022

     1,894  

June 29, 2023

     1,659  

Our net goodwill of $9,638 relates entirely to the Acquisition. The changes in the carrying amount of goodwill during the twenty-six weeks ended December 28, 2017 are as follows:

 

Net balance at June 29, 2017

   $ —    

Goodwill acquired during the period

     9,638  
  

 

 

 

Net balance at December 28, 2017

   $ 9,638  
  

 

 

 

The Company will perform a goodwill impairment test annually during the fourth quarter of its fiscal year and more frequently if events or circumstances indicate that impairment may have occurred. Such events or circumstances may, among others, include significant adverse changes in the general business climate.

v3.8.0.1
Credit Facility
6 Months Ended
Dec. 28, 2017
Debt Disclosure [Abstract]  
Credit Facility

Note 5 – Credit Facility

On July 7, 2017, we entered into the Eighth Amendment to our Credit Facility which eliminated the quarterly restriction on cash dividends and distributions and allows the Company to, without obtaining lender consent, make up to four cash dividends or distributions on our stock per fiscal year, or purchase, acquire, redeem or retire stock in any fiscal year, in an amount not to exceed $60,000 in the aggregate per fiscal year, as long as no default or event of default exists and the excess availability under the Credit Facility remains over $30,000 immediately before and after giving effect to any such dividend, distribution, purchase or redemption.

On November 29, 2017, we entered into the Consent and Ninth Amendment to our Credit Agreement (the “Ninth Amendment”). The Ninth Amendment provides lender consent for us to incur unsecured debt (in particular, the Promissory Note) in connection with our acquisition of the Squirrel Brand business, and for: (i) the incurrence of unsecured debt in connection with the Acquisition and (ii) the Acquisition to constitute a “Permitted Acquisition” under the terms of the Credit Agreement. The Ninth Amendment also modified our collateral reporting requirements.

At December 28, 2017, we had $83,825 of available credit under the Credit Facility which reflects borrowings of $30,000 and reduced availability as a result of $3,675 in outstanding letters of credit. As of December 28, 2017, we were in compliance with all covenants under the Credit Facility and Mortgage Facility.

v3.8.0.1
Earnings Per Common Share
6 Months Ended
Dec. 28, 2017
Earnings Per Share [Abstract]  
Earnings Per Common Share

Note 6 – Earnings Per Common Share

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

 

     For the Quarter Ended      For the Twenty-six Weeks Ended  
     December 28,
2017
     December 29,
2016
     December 28,
2017
     December 29,
2016
 

Weighted average number of shares outstanding – basic

     11,375,512        11,304,617        11,363,409        11,285,417  

Effect of dilutive securities:

           

Stock options and restricted stock units

     50,786        69,200        70,824        91,539  
  

 

 

    

 

 

    

 

 

    

 

 

 

Weighted average number of shares outstanding – diluted

     11,426,298        11,373,817        11,434,233        11,376,956  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

There were no anti-dilutive awards excluded from the computation of diluted earnings per share for the current quarter and twenty-six week periods presented.

v3.8.0.1
Stock-Based Compensation Plans
6 Months Ended
Dec. 28, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation Plans

Note 7 – Stock-Based Compensation Plans

During the second quarter of fiscal 2018, there were 60,582 restricted stock units (“RSUs”) awarded to employees and non-employee members of the Board of Directors. The vesting period is generally three years for awards to employees and one year for awards to non-employee directors.

Stock option activity was insignificant during the first half of fiscal 2018.

The following is a summary of RSU activity for the first half of fiscal 2018:

 

Restricted Stock Units

   Shares      Weighted
Average Grant
Date Fair Value
 

Outstanding at June 29, 2017

     201,858      $ 40.36  

Activity:

     

Granted

     60,582        54.41  

Vested

     (55,956      38.24  

Forfeited

     (11,038      33.59  
  

 

 

    

 

 

 

Outstanding at December 28, 2017

     195,446      $ 45.70  
  

 

 

    

 

 

 

At December 28, 2017, there are 60,490 RSUs outstanding that are vested but deferred.

The following table summarizes compensation expense charged to earnings for all equity compensation plans for the periods presented:

 

     For the Quarter Ended      For the Twenty-six Weeks Ended  
     December 28,
2017
     December 29,
2016
     December 28,
2017
     December 29,
2016
 

Stock-based compensation expense

   $ 891      $ 878      $ 1,429      $ 1,428  

As of December 28, 2017, there was $4,875 of total unrecognized compensation expense related to non-vested RSUs granted under our stock-based compensation plans. We expect to recognize that cost over a weighted average period of 1.9 years.

v3.8.0.1
Dividends
6 Months Ended
Dec. 28, 2017
Text Block [Abstract]  
Dividends

Note 8 – Dividends

On July 11, 2017, our Board of Directors, after considering the financial position of our Company and other factors, declared a special cash dividend of $2.00 per share and a regular annual cash dividend of $0.50 per share on all issued and outstanding shares of Common Stock and Class A Stock of the Company (the “July 2017 Dividends”). The July 2017 Dividends of approximately $28,370 were paid on August 15, 2017 to stockholders of record as of the close of business on August 2, 2017.

v3.8.0.1
Retirement Plan
6 Months Ended
Dec. 28, 2017
Retirement Benefits [Abstract]  
Retirement Plan

Note 9 – Retirement Plan

The Supplemental Employee Retirement Plan is an unfunded, non-qualified deferred compensation plan that will provide eligible participants with monthly benefits upon retirement, disability or death, subject to certain conditions. The monthly benefit is based upon each participant’s earnings and his or her number of years of service. The components of net periodic benefit cost are as follows:

 

     For the Quarter Ended      For the Twenty-six Weeks Ended  
     December 28,
2017
     December 29,
2016
     December 28,
2017
     December 29,
2016
 

Service cost

   $ 152      $ 158      $ 304      $ 316  

Interest cost

     212        202        425        405  

Amortization of prior service cost

     240        240        479        479  

Amortization of loss

     41        91        81        182  
  

 

 

    

 

 

    

 

 

    

 

 

 

Net periodic benefit cost

   $ 645      $ 691      $ 1,289      $ 1,382  
  

 

 

    

 

 

    

 

 

    

 

 

 

The components of net periodic benefit cost other than the service cost component are included in the line item “Other expense” in the Consolidated Statements of Comprehensive Income.

v3.8.0.1
Accumulated Other Comprehensive Loss
6 Months Ended
Dec. 28, 2017
Equity [Abstract]  
Accumulated Other Comprehensive Loss

Note 10 – Accumulated Other Comprehensive Loss

The table below sets forth the changes to accumulated other comprehensive loss (“AOCL”) for the twenty-six weeks ended December 28, 2017 and December 29, 2016. These changes are all related to our defined benefit pension plan.

 

Changes to AOCL(a)

   For the Twenty-six Weeks Ended  
   December 28,
2017
     December 29,
2016
 

Balance at beginning of period

   $ (4,404    $ (6,425

Other comprehensive income before reclassifications

     —          —    

Amounts reclassified from accumulated other comprehensive loss

     560        661  

Tax effect

     (219      (251
  

 

 

    

 

 

 

Net current-period other comprehensive income

     341        410  
  

 

 

    

 

 

 

Balance at end of period

   $ (4,063    $ (6,015
  

 

 

    

 

 

 

 

(a) Amounts in parenthesis indicate debits/expense.

 

The reclassifications out of AOCL for the quarter and twenty-six weeks ended December 28, 2017 and December 29, 2016 were as follows:

 

    

 

For the Quarter Ended

   

 

For the Twenty-six Weeks Ended

    Affected line
item in
the Consolidated
Statements of
Comprehensive
Income
 

Reclassifications from AOCL to earnings(b)

   December 28,
2017
    December 29,
2016
    December 28,
2017
    December 29,
2016
   

Amortization of defined benefit pension items:

          

Unrecognized prior service cost

   $ (240   $ (240   $ (479   $ (479     Other expense  

Unrecognized net loss

     (41     (91     (81     (182     Other expense  
  

 

 

   

 

 

   

 

 

   

 

 

   

Total before tax

     (281     (331     (560     (661  

Tax effect

     111       126       219       251       Income tax expense  
  

 

 

   

 

 

   

 

 

   

 

 

   

Amortization of defined pension items, net of tax

   $ (170   $ (205   $ (341   $ (410  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

(b) Amounts in parenthesis indicate debits to expense. See Note 9 – “Retirement Plan” above for additional details.
v3.8.0.1
Income Taxes
6 Months Ended
Dec. 28, 2017
Income Tax Disclosure [Abstract]  
Income Taxes

Note 11 – Income Taxes

Income tax expense as a percent of pre-tax income (the “Effective Tax Rate”) for the quarter ended December 28, 2017 was 39.0% compared to an Effective Tax Rate of 31.6% for the quarter ended December 29, 2016. The Effective Tax Rate for the twenty-six weeks ended December 28, 2017 was 35.4% compared to an Effective Tax Rate of 32.9% for the twenty-six weeks ended December 29, 2016. The increase in the Effective Tax Rate for the quarter and six months ended December 28, 2017 was primarily related to the re-measurement of our net deferred tax assets incorporating the new federal income tax rate.

H.R.1, originally known as the Tax Cuts and Jobs Act of 2017, was enacted on December 22, 2017, and includes, among other items, a reduction in the federal corporate income tax rate from 35% to 21%, which will have a material favorable impact on our effective income tax rate and cash income taxes paid going forward. Because we have a June fiscal year-end, the lower corporate income tax rate will be phased in during the 2018 calendar year, resulting in a U.S. statutory federal rate of approximately 28% for our fiscal year ending June 28, 2018, and 21% for subsequent fiscal years. Our net deferred tax asset balances are recorded at the tax rate expected to be in effect during the period in which the related temporary differences reverse. Therefore, this reduction in the corporate federal income tax rate required a non-cash reduction of our net deferred tax asset balances and a corresponding increase in income tax expense of $2,408 during the quarter and twenty-six weeks ended December 28, 2017. We scheduled out the expected reversal of temporary differences, including anticipated changes in our pension accrual and fixed asset acquisitions for the next six months, which required the use of reasonable estimates. Actual results could differ from those estimates, and thus further adjustment of our deferred tax asset balances are possible.

Windfall tax benefits related to the excess tax deduction of share-based compensation of $332 and $446 for the quarter and twenty-six weeks ended December 28, 2017 partially offset the impact of the reduction of the corporate tax rate.

v3.8.0.1
Commitments and Contingent Liabilities
6 Months Ended
Dec. 28, 2017
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingent Liabilities

Note 12 – Commitments and Contingent Liabilities

We are currently a party to various legal proceedings in the ordinary course of business. While management presently believes that the ultimate outcomes of these proceedings, individually and in the aggregate, will not materially affect our Company’s financial position, results of operations or cash flows, legal proceedings are subject to inherent uncertainties, and unfavorable outcomes could occur. Unfavorable outcomes could include substantial monetary damages in excess of any appropriate accruals which management has established. Were such unfavorable final outcomes to occur, there exists the possibility of a material adverse effect on our financial position, results of operations and cash flows.

We are subject to a class-action complaint for an employment related matter. Mediation for this matter occurred in fiscal 2017. In August 2017, we agreed in principle to a $1,200 settlement for which we were fully reserved at June 29, 2017. The non-monetary components of the settlement are still being finalized.

v3.8.0.1
Fair Value of Financial Instruments
6 Months Ended
Dec. 28, 2017
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments

Note 13 – Fair Value of Financial Instruments

Authoritative guidance issued by the Financial Accounting Standards Board (“FASB”) defines fair value as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The guidance establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels:

 

Level 1       Quoted prices in active markets that are accessible at the measurement date for identical assets and liabilities.
Level 2       Observable inputs other than quoted prices in active markets. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets.
Level 3       Unobservable inputs for which there is little or no market data available.

The carrying values of cash, trade accounts receivable and accounts payable approximate their fair values at each balance sheet date because of the short-term maturities and nature of these balances.

The carrying value of our revolving credit facility borrowings approximates fair value at each balance sheet date because interest rates on this instrument approximate current market rates (Level 2 criteria), the short-term maturity and nature of this balance. In addition, there has been no significant change in our inherent credit risk.

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

 

     December 28,
2017
     June 29,
2017
     December 29,
2016
 

Carrying value of long-term debt:

   $ 38,256      $ 28,808      $ 30,532  

Fair value of long-term debt:

     38,584        29,316        31,124  

The estimated fair value of our long-term debt was determined using a market approach based upon Level 2 observable inputs, which estimates fair value based on interest rates currently offered on loans with similar terms to borrowers of similar credit quality or broker quotes. In addition, there have been no significant changes in the underlying assets securing our long-term debt.

v3.8.0.1
Related Party Transaction
6 Months Ended
Dec. 28, 2017
Related Party Transactions [Abstract]  
Related Party Transaction

Note 14 – Related Party Transaction

In connection with the Acquisition on November 30, 2017, we incurred $11,500 of unsecured debt to the principal owner and seller of the Squirrel Brand business, who was subsequently appointed as an executive officer of the Company. The interest rate on the Promissory Note is 5.5% per annum and the outstanding balance at December 28, 2017 was $11,181. Interest paid on the Promissory Note during the second quarter of fiscal 2018 was immaterial.

v3.8.0.1
Recent Accounting Pronouncements
6 Months Ended
Dec. 28, 2017
Accounting Changes and Error Corrections [Abstract]  
Recent Accounting Pronouncements

Note 15 – Recent Accounting Pronouncements

The following recent accounting pronouncements have been adopted in the current fiscal year:

In March 2017, the FASB issued ASU No. 2017-07Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”. The amendments in this update require the service cost component of pension expense to be disaggregated from the other components of net periodic benefit cost and be presented in the same line items as other employee compensation costs. All other components of net periodic benefit cost (interest cost, amortization of prior service cost and amortization of unrecognized loss) must be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The amendments in this update also allow only the service cost component to be eligible for capitalization when applicable (for example, as a cost of internally manufactured inventory or a self-constructed asset). This update is effective for public business entities for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted as long as it is early adopted in the first interim period of an annual year and financial statements have not been issued or made available for issuance prior to adoption. The amendments in this update should be applied using a retrospective transition method, however, a practical expedient is offered with regard to the prior comparative periods. The Company adopted ASU 2017-07 in the first quarter of fiscal 2018. Service cost continues to be presented as a component of Administrative expense while the remaining components of net periodic benefit cost (interest cost, amortization of prior service cost and amortization of unrecognized loss) are now presented below the caption Other expense on the Consolidated Statements of Comprehensive Income. Adoption of this update required a reclassification of $533 and $1,066 in the prior year second quarter and twenty-six week period, respectively, from Administrative expense to Other expense.

In October 2016, the FASB issued ASU No. 2016-17Consolidation (Topic 810): Interests Held Through Related Parties That Are Under Common Control”. This update amends ASU 2015-02 and affects reporting entities that are required to evaluate whether they should consolidate a variable interest entity in certain situations involving entities under common control. ASU 2016-17 is effective for the Company in fiscal 2018 and requires retrospective application. The adoption of ASU 2016-17 did not have any impact to the Consolidated Financial Statements.

In July 2015, the FASB issued ASU No. 2015-11Inventory (Topic 330): Simplifying the Measurement of Inventory”. This update applies to inventory measured using first-in, first-out or average cost and requires inventory be measured at the lower of cost and net realizable value. Net realizable value is defined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. When evidence exists that the net realizable value of inventory is lower than its cost, the difference shall be recognized as a loss in earnings in the period in which it occurs. That loss may be required, for example, due to damage, physical deterioration, obsolescence, changes in price levels, or other causes. This update became effective for the Company beginning in fiscal year 2018 with prospective application required. The adoption of ASU 2015-11 did not have any impact to the consolidated financial statements.

The following recent accounting pronouncements have not yet been adopted:

In January 2017, the FASB issued ASC Update No. 2017-04Intangibles—Goodwill and Other Topics (Topic 350): Simplifying the Test for Goodwill Impairment. The purpose of this update is to reduce the cost and complexity of evaluating goodwill for impairment. It eliminates the need for entities to calculate the impaired fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination, commonly referred to as “Step 2”. Under this amendment, an entity will perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying value exceeds the reporting unit’s fair value. This update is effective beginning in fiscal 2021. We do not expect this update to have a material impact on our Consolidated Financial Statements.

In February 2016, the FASB issued ASU No. 2016-02 “Leases (Topic 842)”. The primary goal of this update is to require the lessee to recognize all lease commitments, both operating and finance, by initially recording a lease asset and liability on the balance sheet at the lease commencement date. Additionally, enhanced qualitative and quantitative disclosures will be required. ASU No. 2016-02 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2018. This new guidance will be effective for the Company beginning in fiscal year 2020. This guidance must be adopted using a modified retrospective approach and early adoption is permitted. The Company expects this new guidance to have a significant impact on its total assets and total liabilities, and lead to increased financial statement disclosures.

 

In May 2014, the FASB issued ASU No. 2014-09 “Revenue from Contracts with Customers (Topic 606)” and created a new ASC Topic 606, Revenue from Contracts with Customers, and added ASC Subtopic 340-40, Other Assets and Deferred Costs — Contracts with Customers. The guidance in this update supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the industry topics of the codification. Under the new guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Several other amendments have been subsequently released, each of which provide additional narrow scope clarifications or improvements. In August 2015, the FASB issued ASU No. 2015-14 “Revenue from Contracts with Customers, Deferral of the Effective Date” which deferred the effective date of ASU 2014-09 for one year. Consequently, this new revenue recognition guidance will be effective for the Company beginning in fiscal year 2019, which is our anticipated adoption date. We have completed our initial analysis of this accounting standard update which included a review of all material customer contracts and currently do not anticipate any material changes to our revenue recognition compared to current GAAP. We are currently evaluating the method of adoption.

v3.8.0.1
Recent Accounting Pronouncements (Policies)
6 Months Ended
Dec. 28, 2017
Accounting Changes and Error Corrections [Abstract]  
Recent Accounting Pronouncements

The following recent accounting pronouncements have been adopted in the current fiscal year:

In March 2017, the FASB issued ASU No. 2017-07Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”. The amendments in this update require the service cost component of pension expense to be disaggregated from the other components of net periodic benefit cost and be presented in the same line items as other employee compensation costs. All other components of net periodic benefit cost (interest cost, amortization of prior service cost and amortization of unrecognized loss) must be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The amendments in this update also allow only the service cost component to be eligible for capitalization when applicable (for example, as a cost of internally manufactured inventory or a self-constructed asset). This update is effective for public business entities for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted as long as it is early adopted in the first interim period of an annual year and financial statements have not been issued or made available for issuance prior to adoption. The amendments in this update should be applied using a retrospective transition method, however, a practical expedient is offered with regard to the prior comparative periods. The Company adopted ASU 2017-07 in the first quarter of fiscal 2018. Service cost continues to be presented as a component of Administrative expense while the remaining components of net periodic benefit cost (interest cost, amortization of prior service cost and amortization of unrecognized loss) are now presented below the caption Other expense on the Consolidated Statements of Comprehensive Income. Adoption of this update required a reclassification of $533 and $1,066 in the prior year second quarter and twenty-six week period, respectively, from Administrative expense to Other expense.

In October 2016, the FASB issued ASU No. 2016-17Consolidation (Topic 810): Interests Held Through Related Parties That Are Under Common Control”. This update amends ASU 2015-02 and affects reporting entities that are required to evaluate whether they should consolidate a variable interest entity in certain situations involving entities under common control. ASU 2016-17 is effective for the Company in fiscal 2018 and requires retrospective application. The adoption of ASU 2016-17 did not have any impact to the Consolidated Financial Statements.

In July 2015, the FASB issued ASU No. 2015-11Inventory (Topic 330): Simplifying the Measurement of Inventory”. This update applies to inventory measured using first-in, first-out or average cost and requires inventory be measured at the lower of cost and net realizable value. Net realizable value is defined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. When evidence exists that the net realizable value of inventory is lower than its cost, the difference shall be recognized as a loss in earnings in the period in which it occurs. That loss may be required, for example, due to damage, physical deterioration, obsolescence, changes in price levels, or other causes. This update became effective for the Company beginning in fiscal year 2018 with prospective application required. The adoption of ASU 2015-11 did not have any impact to the consolidated financial statements.

The following recent accounting pronouncements have not yet been adopted:

In January 2017, the FASB issued ASC Update No. 2017-04Intangibles—Goodwill and Other Topics (Topic 350): Simplifying the Test for Goodwill Impairment. The purpose of this update is to reduce the cost and complexity of evaluating goodwill for impairment. It eliminates the need for entities to calculate the impaired fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination, commonly referred to as “Step 2”. Under this amendment, an entity will perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying value exceeds the reporting unit’s fair value. This update is effective beginning in fiscal 2021. We do not expect this update to have a material impact on our Consolidated Financial Statements.

In February 2016, the FASB issued ASU No. 2016-02 “Leases (Topic 842)”. The primary goal of this update is to require the lessee to recognize all lease commitments, both operating and finance, by initially recording a lease asset and liability on the balance sheet at the lease commencement date. Additionally, enhanced qualitative and quantitative disclosures will be required. ASU No. 2016-02 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2018. This new guidance will be effective for the Company beginning in fiscal year 2020. This guidance must be adopted using a modified retrospective approach and early adoption is permitted. The Company expects this new guidance to have a significant impact on its total assets and total liabilities, and lead to increased financial statement disclosures.

 

In May 2014, the FASB issued ASU No. 2014-09 “Revenue from Contracts with Customers (Topic 606)” and created a new ASC Topic 606, Revenue from Contracts with Customers, and added ASC Subtopic 340-40, Other Assets and Deferred Costs — Contracts with Customers. The guidance in this update supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the industry topics of the codification. Under the new guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Several other amendments have been subsequently released, each of which provide additional narrow scope clarifications or improvements. In August 2015, the FASB issued ASU No. 2015-14 “Revenue from Contracts with Customers, Deferral of the Effective Date” which deferred the effective date of ASU 2014-09 for one year. Consequently, this new revenue recognition guidance will be effective for the Company beginning in fiscal year 2019, which is our anticipated adoption date. We have completed our initial analysis of this accounting standard update which included a review of all material customer contracts and currently do not anticipate any material changes to our revenue recognition compared to current GAAP. We are currently evaluating the method of adoption.

v3.8.0.1
Inventories (Tables)
6 Months Ended
Dec. 28, 2017
Inventory Disclosure [Abstract]  
Components of Inventories

Inventories consist of the following:

 

     December 28,
2017
     June 29,
2017
     December 29,
2016
 

Raw material and supplies

   $ 80,867      $ 79,609      $ 107,735  

Work-in-process and finished goods

     87,985        102,811        74,918  
  

 

 

    

 

 

    

 

 

 

Total

   $ 168,852      $ 182,420      $ 182,653  
  

 

 

    

 

 

    

 

 

 
v3.8.0.1
Acquisition of Squirrel Brand L.P. (Tables)
6 Months Ended
Dec. 28, 2017
Business Combinations [Abstract]  
Summary of Purchase Price Allocated on Preliminary Basis

The total purchase price of $33,409 has been allocated on a preliminary basis to the fair values of the assets acquired and liabilities assumed as follows:

 

Accounts receivable

   $ 2,446  

Inventories

     1,957  

Other assets

     75  

Identifiable intangible assets:

  

Customer relationships

     10,500  

Brand names

     8,900  

Non-compete agreement

     270  

Goodwill

     9,638  

Accounts payable and accrued expenses

     (377
  

 

 

 

Total Purchase Price

   $ 33,409  
  

 

 

 
Summary of Unaudited Pro Forma Results of Operations of Company's Acquisition at Beginning

The following reflects the unaudited pro forma results of operations of the Company as if the Acquisition had taken place at the beginning of fiscal 2017. This pro forma information does not purport to represent what the Company’s actual results would have been if the Acquisition had occurred as of the date indicated or what such results would be for any future periods.

 

     Year-Ended
June 29,
2017
     Twenty-six
weeks ended
December 28,
2017
 

Pro forma net sales

   $ 863,267      $ 479,054  

Pro forma net income

     36,723        18,762  

Pro forma diluted earnings per share

   $ 3.22      $ 1.64  
v3.8.0.1
Goodwill and Intangible Assets (Tables)
6 Months Ended
Dec. 28, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
Components of Identifiable Intangible Assets

Identifiable intangible assets that are subject to amortization, which resulted entirely from the Acquisition, are based on our preliminary purchase price allocation and consist of the following at December 28, 2017:

 

     December 28,
2017
     Weighted-average
amortization
period (years)
 

Customer relationships

   $ 10,500        7.5  

Brand names

     8,900        13.8  

Non-compete agreement

     270        5.0  
  

 

 

    

 

 

 
     19,670        11.3  

Less accumulated amortization:

     

Customer relationships

     (267   

Brand names

     (58   

Non-compete agreement

     (4   
  

 

 

    
     (329   
  

 

 

    

Net intangible assets

   $ 19,341     
  

 

 

    
Summary of Expected Amortization Expense

Amortization expense for the remainder of fiscal 2018, based on our preliminary purchase price allocation, is expected to be approximately $1,685 and expected amortization expense the next five fiscal years is as follows:

 

Fiscal year ending

      

June 27, 2019

   $ 3,028  

June 25, 2020

     2,500  

June 24, 2021

     2,162  

June 30, 2022

     1,894  

June 29, 2023

     1,659  
Summary of Changes in Carrying Amount of Goodwill

The changes in the carrying amount of goodwill during the twenty-six weeks ended December 28, 2017 are as follows:

 

Net balance at June 29, 2017

   $ —    

Goodwill acquired during the period

     9,638  
  

 

 

 

Net balance at December 28, 2017

   $ 9,638  
  

 

 

 
v3.8.0.1
Earnings Per Common Share (Tables)
6 Months Ended
Dec. 28, 2017
Earnings Per Share [Abstract]  
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:

 

     For the Quarter Ended      For the Twenty-six Weeks Ended  
     December 28,
2017
     December 29,
2016
     December 28,
2017
     December 29,
2016
 

Weighted average number of shares outstanding – basic

     11,375,512        11,304,617        11,363,409        11,285,417  

Effect of dilutive securities:

           

Stock options and restricted stock units

     50,786        69,200        70,824        91,539  
  

 

 

    

 

 

    

 

 

    

 

 

 

Weighted average number of shares outstanding – diluted

     11,426,298        11,373,817        11,434,233        11,376,956  
  

 

 

    

 

 

    

 

 

    

 

 

 
v3.8.0.1
Stock-Based Compensation Plans (Tables)
6 Months Ended
Dec. 28, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Summary of RSU Activity

The following is a summary of RSU activity for the first half of fiscal 2018:

 

Restricted Stock Units

   Shares      Weighted
Average Grant
Date Fair Value
 

Outstanding at June 29, 2017

     201,858      $ 40.36  

Activity:

     

Granted

     60,582        54.41  

Vested

     (55,956      38.24  

Forfeited

     (11,038      33.59  
  

 

 

    

 

 

 

Outstanding at December 28, 2017

     195,446      $ 45.70  
  

 

 

    

 

 

 
Summary of Compensation Expense

The following table summarizes compensation expense charged to earnings for all equity compensation plans for the periods presented:

 

     For the Quarter Ended      For the Twenty-six Weeks Ended  
     December 28,
2017
     December 29,
2016
     December 28,
2017
     December 29,
2016
 

Stock-based compensation expense

   $ 891      $ 878      $ 1,429      $ 1,428  
v3.8.0.1
Retirement Plan (Tables)
6 Months Ended
Dec. 28, 2017
Retirement Benefits [Abstract]  
Schedule of Net Periodic Benefit Cost

The components of net periodic benefit cost are as follows:

 

     For the Quarter Ended      For the Twenty-six Weeks Ended  
     December 28,
2017
     December 29,
2016
     December 28,
2017
     December 29,
2016
 

Service cost

   $ 152      $ 158      $ 304      $ 316  

Interest cost

     212        202        425        405  

Amortization of prior service cost

     240        240        479        479  

Amortization of loss

     41        91        81        182  
  

 

 

    

 

 

    

 

 

    

 

 

 

Net periodic benefit cost

   $ 645      $ 691      $ 1,289      $ 1,382  
  

 

 

    

 

 

    

 

 

    

 

 

 
v3.8.0.1
Accumulated Other Comprehensive Loss (Tables)
6 Months Ended
Dec. 28, 2017
Equity [Abstract]  
Changes in Accumulated Other Comprehensive Loss

The table below sets forth the changes to accumulated other comprehensive loss (“AOCL”) for the twenty-six weeks ended December 28, 2017 and December 29, 2016. These changes are all related to our defined benefit pension plan.

 

Changes to AOCL(a)

   For the Twenty-six Weeks Ended  
   December 28,
2017
     December 29,
2016
 

Balance at beginning of period

   $ (4,404    $ (6,425

Other comprehensive income before reclassifications

     —          —    

Amounts reclassified from accumulated other comprehensive loss

     560        661  

Tax effect

     (219      (251
  

 

 

    

 

 

 

Net current-period other comprehensive income

     341        410  
  

 

 

    

 

 

 

Balance at end of period

   $ (4,063    $ (6,015
  

 

 

    

 

 

 

 

(a) Amounts in parenthesis indicate debits/expense.
Reclassifications Out of AOCL

The reclassifications out of AOCL for the quarter and twenty-six weeks ended December 28, 2017 and December 29, 2016 were as follows:

 

    

 

For the Quarter Ended

   

 

For the Twenty-six Weeks Ended

    Affected line
item in
the Consolidated
Statements of
Comprehensive
Income
 

Reclassifications from AOCL to earnings(b)

   December 28,
2017
    December 29,
2016
    December 28,
2017
    December 29,
2016
   

Amortization of defined benefit pension items:

          

Unrecognized prior service cost

   $ (240   $ (240   $ (479   $ (479     Other expense  

Unrecognized net loss

     (41     (91     (81     (182     Other expense  
  

 

 

   

 

 

   

 

 

   

 

 

   

Total before tax

     (281     (331     (560     (661  

Tax effect

     111       126       219       251       Income tax expense  
  

 

 

   

 

 

   

 

 

   

 

 

   

Amortization of defined pension items, net of tax

   $ (170   $ (205   $ (341   $ (410  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

(b) Amounts in parenthesis indicate debits to expense. See Note 9 – “Retirement Plan” above for additional details.
v3.8.0.1
Fair Value of Financial Instruments (Tables)
6 Months Ended
Dec. 28, 2017
Fair Value Disclosures [Abstract]  
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:

 

     December 28,
2017
     June 29,
2017
     December 29,
2016
 

Carrying value of long-term debt:

   $ 38,256      $ 28,808      $ 30,532  

Fair value of long-term debt:

     38,584        29,316        31,124  
v3.8.0.1
Basis of Presentation and Description of Business - Additional Information (Detail)
6 Months Ended
Dec. 28, 2017
Channel
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of distribution channels 3
v3.8.0.1
Inventories - Components of Inventories (Detail) - USD ($)
$ in Thousands
Dec. 28, 2017
Jun. 29, 2017
Dec. 29, 2016
Inventory Disclosure [Abstract]      
Raw material and supplies $ 80,867 $ 79,609 $ 107,735
Work-in-process and finished goods 87,985 102,811 74,918
Total $ 168,852 $ 182,420 $ 182,653
v3.8.0.1
Acquisition of Squirrel Brand L.P. - Additional Information (Detail) - USD ($)
$ in Thousands
1 Months Ended 6 Months Ended
Nov. 30, 2017
Dec. 28, 2017
Dec. 28, 2017
Acquisition Date [Line Items]      
Weighted-average life     11 years 3 months 19 days
Business acquisition, transaction costs     $ 500
Squirrel Brand [Member]      
Acquisition Date [Line Items]      
Business acquisition, purchase price before working capital adjustment $ 31,500    
Date of acquisition Nov. 30, 2017    
Business acquisition, purchase price $ 33,409    
Purchase price paid in cash 21,909    
Net sales resulting from the acquisition   $ 3,976  
Squirrel Brand [Member] | Customer Relationships [Member]      
Acquisition Date [Line Items]      
Weighted-average life     7 years 6 months
Squirrel Brand [Member] | Brand Names [Member]      
Acquisition Date [Line Items]      
Weighted-average life     13 years 9 months 18 days
Squirrel Brand [Member] | Unsecured Promissory Note [Member]      
Acquisition Date [Line Items]      
Purchase price financed by seller through unsecured promissory note $ 11,500    
Purchase price financed by seller through unsecured promissory note,term 3 years    
Purchase price financed by seller through unsecured promissory note,interest rate 5.50%    
Unsecured promissory note, periodic payment, principal $ 319    
Unsecured promissory note, periodic payment,commencement date 2018-01    
v3.8.0.1
Acquisition of Squirrel Brand L.P. - Summary of Purchase Price Allocated on Preliminary Basis (Detail) - Squirrel Brand [Member]
$ in Thousands
Nov. 30, 2017
USD ($)
Business Acquisition [Line Items]  
Accounts receivable $ 2,446
Inventories 1,957
Other assets 75
Goodwill 9,638
Accounts payable and accrued expenses (377)
Total Purchase Price 33,409
Customer Relationships [Member]  
Business Acquisition [Line Items]  
Identifiable intangible assets 10,500
Brand Names [Member]  
Business Acquisition [Line Items]  
Identifiable intangible assets 8,900
Non-compete Agreement [Member]  
Business Acquisition [Line Items]  
Identifiable intangible assets $ 270
v3.8.0.1
Acquisition of Squirrel Brand L.P. - Summary of Unaudited Pro Forma Results of Operations of Company's Acquisition at Beginning (Detail) - USD ($)
$ / shares in Units, $ in Thousands
6 Months Ended 12 Months Ended
Dec. 28, 2017
Jun. 29, 2017
Business Acquisition, Pro Forma Information [Abstract]    
Pro forma net sales $ 479,054 $ 863,267
Pro forma net income $ 18,762 $ 36,723
Pro forma diluted earnings per share $ 1.64 $ 3.22
v3.8.0.1
Goodwill and Intangible Assets - Components of Identifiable Intangible Assets (Detail) - USD ($)
$ in Thousands
6 Months Ended
Dec. 28, 2017
Jun. 29, 2017
Dec. 29, 2016
Finite-Lived Intangible Assets [Line Items]      
Total intangible assets, gross $ 19,670 $ 18,690  
Less accumulated amortization:      
Total accumulated amortization (329)    
Net intangible assets $ 19,341 $ 0 $ 611
Weighted-average amortization period 11 years 3 months 19 days    
Customer Relationships [Member] | Squirrel Brand [Member]      
Finite-Lived Intangible Assets [Line Items]      
Total intangible assets, gross $ 10,500    
Less accumulated amortization:      
Total accumulated amortization $ (267)    
Weighted-average amortization period 7 years 6 months    
Brand Names [Member] | Squirrel Brand [Member]      
Finite-Lived Intangible Assets [Line Items]      
Total intangible assets, gross $ 8,900    
Less accumulated amortization:      
Total accumulated amortization $ (58)    
Weighted-average amortization period 13 years 9 months 18 days    
Non-compete Agreement [Member] | Squirrel Brand [Member]      
Finite-Lived Intangible Assets [Line Items]      
Total intangible assets, gross $ 270    
Less accumulated amortization:      
Total accumulated amortization $ (4)    
Weighted-average amortization period 5 years    
v3.8.0.1
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Dec. 28, 2017
Dec. 28, 2017
Jun. 29, 2017
Finite-Lived Intangible Assets [Line Items]      
Intangible assets gross $ 19,670 $ 19,670 $ 18,690
Expected amortization expense for remainder of fiscal 2018 1,685 1,685  
Amortization expense related to intangible assets 329 329  
Goodwill related to acquisition of Squirrel Brand 9,638 9,638  
Squirrel Brand [Member]      
Finite-Lived Intangible Assets [Line Items]      
Goodwill related to acquisition of Squirrel Brand $ 9,638 $ 9,638  
v3.8.0.1
Goodwill and Intangible Assets - Summary of Expected Amortization Expense (Detail)
$ in Thousands
Dec. 28, 2017
USD ($)
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract]  
June 27, 2019 $ 3,028
June 25, 2020 2,500
June 24, 2021 2,162
June 30, 2022 1,894
June 29, 2023 $ 1,659
v3.8.0.1
Goodwill and Intangible Assets - Summary of Changes in Carrying Amount of Goodwill (Detail)
$ in Thousands
6 Months Ended
Dec. 28, 2017
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill acquired during the period $ 9,638
Ending balance $ 9,638
v3.8.0.1
Credit Facility - Additional Information (Detail)
Jul. 07, 2017
USD ($)
Dividends
Dec. 28, 2017
USD ($)
Eighth Amendment To Credit Agreement [Member]    
Debt Instrument [Line Items]    
Excess availability required under the credit facility $ 30,000,000  
Eighth Amendment To Credit Agreement [Member] | Maximum [Member]    
Debt Instrument [Line Items]    
Aggregate amount of dividends that can be declared without bank consent $ 60,000,000  
Number of cash or stock dividends that may be declared in each quarter without obtaining bank consent | Dividends 4  
Revolving Credit Facility [Member]    
Debt Instrument [Line Items]    
Available credit under the Credit Facility   $ 83,825,000
Revolving credit facility borrowings   30,000,000
Outstanding letters of credit   $ 3,675,000
v3.8.0.1
Earnings Per Common Share - Weighted Average Shares Outstanding Used in Computing Basic and Diluted Earnings Per Share (Detail) - shares
3 Months Ended 6 Months Ended
Dec. 28, 2017
Dec. 29, 2016
Dec. 28, 2017
Dec. 29, 2016
Weighted Average Number of Shares Outstanding Reconciliation [Abstract]        
Weighted average number of shares outstanding - basic 11,375,512 11,304,617 11,363,409 11,285,417
Effect of dilutive securities:        
Stock options and restricted stock units 50,786 69,200 70,824 91,539
Weighted average number of shares outstanding - diluted 11,426,298 11,373,817 11,434,233 11,376,956
v3.8.0.1
Earnings Per Common Share - Additional Information (Detail) - shares
3 Months Ended 6 Months Ended
Dec. 28, 2017
Dec. 28, 2017
Anti Dilutive Shares [Abstract]    
Anti-dilutive awards excluded from computation of diluted earnings per share 0 0
v3.8.0.1
Stock-Based Compensation Plans - Additional Information (Detail)
$ in Thousands
3 Months Ended 6 Months Ended
Dec. 28, 2017
USD ($)
shares
Dec. 28, 2017
USD ($)
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Number of stock units awarded   60,582
Unrecognized compensation expense related to non-vested share-based compensation | $ $ 4,875 $ 4,875
Expected weighted average recognize period of unrecognized compensation cost related to non-vested share-based compensation   1 year 10 months 25 days
Restricted Stock Unit [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Number of stock units awarded 60,582  
Restricted stock units vested   60,490
Restricted Stock Unit [Member] | Employees [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Vesting period of restricted stock units granted   3 years
Restricted Stock Unit [Member] | Non Employee Directors [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Vesting period of restricted stock units granted   1 year
v3.8.0.1
Stock-Based Compensation Plans - Summary of RSU Activity (Detail)
6 Months Ended
Dec. 28, 2017
$ / shares
shares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Outstanding beginning balance, Shares | shares 201,858
Granted, Shares | shares 60,582
Vested, Shares | shares (55,956)
Forfeited, Shares | shares (11,038)
Outstanding ending balance, Shares | shares 195,446
Weighted-Average Grant-Date Fair Value, Beginning Balance | $ / shares $ 40.36
Granted, Weighted-Average Grant-Date Fair Value | $ / shares 54.41
Vested, Weighted-Average Grant-Date Fair Value | $ / shares 38.24
Forfeited, Weighted-Average Grant-Date Fair Value | $ / shares 33.59
Weighted-Average Grant-Date Fair Value, Ending Balance | $ / shares $ 45.70
v3.8.0.1
Stock-Based Compensation Plans - Summary of Compensation Expense (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Dec. 28, 2017
Dec. 29, 2016
Dec. 28, 2017
Dec. 29, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]        
Stock-based compensation expense $ 891 $ 878 $ 1,429 $ 1,428
v3.8.0.1
Dividends - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 6 Months Ended
Aug. 15, 2017
Jul. 11, 2017
Dec. 28, 2017
Dec. 29, 2016
Dec. 28, 2017
Dec. 29, 2016
Equity [Abstract]            
Dividend payable date, declared day   Jul. 11, 2017        
Special cash dividend   $ 2.00        
Annual common stock dividend declared   $ 0.50 $ 0.00 $ 2.50 $ 2.50 $ 5.00
Dividend paid $ 28,370       $ 28,370 $ 56,464
Dividend payable date   Aug. 15, 2017        
Stockholders of record date   Aug. 02, 2017        
v3.8.0.1
Retirement Plan - Schedule of Net Periodic Benefit Cost (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Dec. 28, 2017
Dec. 29, 2016
Dec. 28, 2017
Dec. 29, 2016
Retirement Benefits [Abstract]        
Service cost $ 152 $ 158 $ 304 $ 316
Interest cost 212 202 425 405
Amortization of prior service cost 240 240 479 479
Amortization of loss 41 91 81 182
Net periodic benefit cost $ 645 $ 691 $ 1,289 $ 1,382
v3.8.0.1
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Dec. 28, 2017
Dec. 29, 2016
Dec. 28, 2017
Dec. 29, 2016
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]        
Balance at beginning of period     $ (4,404) $ (6,425)
Other comprehensive income before reclassifications     0 0
Amounts reclassified from accumulated other comprehensive loss $ 281 $ 331 560 661
Tax effect     (219) (251)
Other comprehensive income, net of tax 170 205 341 410
Balance at end of period $ (4,063) $ (6,015) $ (4,063) $ (6,015)
v3.8.0.1
Accumulated Other Comprehensive Loss - Reclassifications Out of AOCL (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Dec. 28, 2017
Dec. 29, 2016
Dec. 28, 2017
Dec. 29, 2016
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member]        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Unrecognized prior service cost $ (240) $ (240) $ (479) $ (479)
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member]        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Unrecognized net loss (41) (91) (81) (182)
Amortization of Defined Benefit Pension Items [Member]        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Total amortization of pension items before tax (281) (331) (560) (661)
Income tax expense 111 126 219 251
Amortization of defined pension items, net of tax $ (170) $ (205) $ (341) $ (410)
v3.8.0.1
Income Taxes - Additional Information (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 29, 2018
Dec. 22, 2017
Dec. 21, 2017
Dec. 28, 2017
Dec. 29, 2016
Dec. 28, 2017
Dec. 29, 2016
Jun. 28, 2018
Income Tax Disclosure [Line Items]                
Effective tax rate       39.00% 31.60% 35.40% 32.90%  
Federal corporate income tax rate   21.00% 35.00%          
Increase in income tax expense           $ 2,408    
Excess tax benefits       $ 332   $ 446    
Scenario Forecast [Member]                
Income Tax Disclosure [Line Items]                
Federal corporate income tax rate 21.00%             28.00%
v3.8.0.1
Commitments and Contingent Liabilities - Additional Information (Detail)
$ in Thousands
Aug. 31, 2017
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Litigation settlement amount $ 1,200
v3.8.0.1
Fair Value of Financial Instruments - Carrying Value and Fair Value Estimate of Current and Long Term Debt (Detail) - USD ($)
$ in Thousands
Dec. 28, 2017
Jun. 29, 2017
Dec. 29, 2016
Fair Value Disclosures [Abstract]      
Carrying value of long-term debt: $ 38,256 $ 28,808 $ 30,532
Fair value of long-term debt: $ 38,584 $ 29,316 $ 31,124
v3.8.0.1
Related Party Transaction - Additional Information (Detail) - USD ($)
$ in Thousands
Nov. 30, 2017
Dec. 28, 2017
Related Party Transactions [Abstract]    
Purchase price financed by seller through unsecured promissory note $ 11,500  
Interest rate on promissory note   5.50%
Outstanding balance of promissory note   $ 11,181
v3.8.0.1
Recent Accounting Pronouncements - Additional Information (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Dec. 29, 2016
Dec. 29, 2016
Restatement Adjustment [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Reclassification of administrative expense to other expense $ 533 $ 1,066

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