Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 28, 2015 | Aug. 07, 2015 | Dec. 26, 2014 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | STRATTEC SECURITY CORP | ||
Entity Central Index Key | 933,034 | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 28, 2015 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | STRT | ||
Current Fiscal Year End Date | --06-28 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 286,128,000 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock Shares Outstanding | 3,593,278 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 30, 2013 | |
Income Statement [Abstract] | |||
NET SALES | $ 411,475 | $ 348,419 | $ 298,179 |
Cost of goods sold | 338,815 | 282,621 | 244,313 |
GROSS PROFIT | 72,660 | 65,798 | 53,866 |
Engineering, selling, and administrative expenses | 41,534 | 39,274 | 34,934 |
Loss on settlement of pension obligation | 2,144 | ||
INCOME FROM OPERATIONS | 31,126 | 26,524 | 16,788 |
Interest income | 185 | 106 | 21 |
Equity (loss) income of joint ventures | (788) | 957 | (225) |
Interest expense | (71) | (45) | (34) |
Other income, net | 3,481 | 272 | 329 |
INCOME BEFORE PROVISION FOR INCOME TAXES AND NON-CONTROLLING INTEREST | 33,933 | 27,814 | 16,879 |
Provision for income taxes | 9,382 | 8,674 | 5,366 |
NET INCOME | 24,551 | 19,140 | 11,513 |
Net income attributable to non-controlling interest | 3,897 | 2,716 | 2,138 |
NET INCOME ATTRIBUTABLE TO STRATTEC SECURITY CORPORATION | 20,654 | 16,424 | 9,375 |
COMPREHENSIVE INCOME: | |||
NET INCOME | 24,551 | 19,140 | 11,513 |
Currency translation adjustments | (5,133) | (140) | 736 |
Pension and postretirement plan funded status adjustment, net of tax | (1,851) | 2,157 | 12,818 |
TOTAL OTHER COMPREHENSIVE (LOSS) INCOME | (6,984) | 2,017 | 13,554 |
COMPREHENSIVE INCOME | 17,567 | 21,157 | 25,067 |
Comprehensive income attributable to non-controlling interest | 3,574 | 2,719 | 2,147 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO STRATTEC SECURITY CORPORATION | $ 13,993 | $ 18,438 | $ 22,920 |
EARNINGS PER SHARE ATTRIBUTABLE TO STRATTEC SECURITY CORPORATION: | |||
Basic | $ 5.80 | $ 4.70 | $ 2.77 |
Diluted | $ 5.66 | $ 4.59 | $ 2.72 |
AVERAGE SHARES OUTSTANDING: | |||
Basic | 3,515 | 3,428 | 3,327 |
Diluted | 3,604 | 3,513 | 3,379 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 28, 2015 | Jun. 29, 2014 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 25,695 | $ 19,756 |
Receivables, less allowance for doubtful accounts of $500 at June 28, 2015 and June 29, 2014 | 58,807 | 68,822 |
Inventories, net | 34,786 | 30,502 |
Customer tooling in progress, net | 3,473 | 5,292 |
Income Taxes Recoverable | 1,006 | |
Deferred income taxes | 9,555 | 5,671 |
Other current assets | 4,839 | 5,596 |
Total current assets | 138,161 | 135,639 |
INVESTMENT IN JOINT VENTURES | 15,326 | 9,977 |
OTHER LONG-TERM ASSETS | 10,816 | 11,639 |
PROPERTY, PLANT AND EQUIPMENT, NET | 71,126 | 55,781 |
Total assets | 235,429 | 213,036 |
CURRENT LIABILITIES: | ||
Accounts payable | 27,838 | 36,053 |
Accrued liabilities: | ||
Payroll and benefits | 16,107 | 18,058 |
Environmental | 1,383 | 1,397 |
Warranty | 11,835 | 3,462 |
Income taxes | 527 | |
Other | 7,572 | 5,766 |
Total current liabilities | $ 64,735 | $ 65,263 |
Commitments and Contingencies | ||
DEFERRED INCOME TAXES | $ 4,595 | $ 5,127 |
BORROWINGS UNDER CREDIT FACILITIES | 10,000 | 2,500 |
ACCRUED PENSION OBLIGATIONS | 1,331 | 1,619 |
ACCRUED POSTRETIREMENT OBLIGATIONS | 1,657 | 2,223 |
OTHER LONG-TERM LIABILITIES | 710 | 1,401 |
SHAREHOLDERS’ EQUITY: | ||
Common stock, authorized 12,000,000 shares, $.01 par value, issued 7,151,154 shares at June 28, 2015 and 7,110,308 shares at June 29, 2014 | 71 | 71 |
Capital in excess of par value | 89,560 | 87,054 |
Retained earnings | 213,442 | 194,498 |
Accumulated other comprehensive loss | (26,859) | (20,198) |
Less: Treasury stock at cost (3,624,454 shares at June 28, 2015 and 3,625,492 shares at June 29, 2014) | (135,902) | (135,919) |
Total STRATTEC SECURITY CORPORATION shareholders’ equity | 140,312 | 125,506 |
Non-controlling interest | 12,089 | 9,397 |
Total shareholders’ equity | 152,401 | 134,903 |
Total liabilities and shareholders' equity | $ 235,429 | $ 213,036 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 28, 2015 | Jun. 29, 2014 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 500 | $ 500 |
Common stock, shares authorized | 12,000,000 | 12,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares issued | 7,151,154 | 7,110,308 |
Treasury stock, shares | 3,624,454 | 3,625,492 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Non-controlling interest |
Beginning balance at Jul. 01, 2012 | $ 87,398 | $ 69 | $ 80,621 | $ 171,590 | $ (35,757) | $ (135,971) | $ 6,846 |
NET INCOME | 11,513 | 9,375 | 2,138 | ||||
Currency translation adjustments | 736 | 727 | 9 | ||||
Pension and postretirement plan funded status adjustment, net of tax | 12,818 | 12,818 | |||||
Cash dividends declared ($0.40, $0.44 and $0.48 per share for the twelve months ended 2013, 2014 and 2015 respectively) | (1,351) | (1,351) | |||||
Cash dividends paid to non-controlling interests of subsidiaries | (1,331) | (1,331) | |||||
Stock—based compensation and shortfall tax benefit | 1,273 | 1,273 | |||||
Stock Option Exercises | 770 | 1 | 769 | ||||
Employee stock purchases | 54 | 21 | 33 | ||||
Ending balance at Jun. 30, 2013 | 111,880 | 70 | 82,684 | 179,614 | (22,212) | (135,938) | 7,662 |
NET INCOME | 19,140 | 16,424 | 2,716 | ||||
Currency translation adjustments | (140) | (143) | 3 | ||||
Pension and postretirement plan funded status adjustment, net of tax | 2,157 | 2,157 | |||||
Cash dividends declared ($0.40, $0.44 and $0.48 per share for the twelve months ended 2013, 2014 and 2015 respectively) | (1,540) | (1,540) | |||||
Cash dividends paid to non-controlling interests of subsidiaries | (984) | (984) | |||||
Stock—based compensation and shortfall tax benefit | 1,648 | 1,648 | |||||
Stock Option Exercises | 2,683 | 1 | 2,682 | ||||
Employee stock purchases | 59 | 40 | 19 | ||||
Ending balance at Jun. 29, 2014 | 134,903 | 71 | 87,054 | 194,498 | (20,198) | (135,919) | 9,397 |
NET INCOME | 24,551 | 20,654 | 3,897 | ||||
Currency translation adjustments | (5,133) | (4,810) | (323) | ||||
Pension and postretirement plan funded status adjustment, net of tax | (1,851) | (1,851) | |||||
Cash dividends declared ($0.40, $0.44 and $0.48 per share for the twelve months ended 2013, 2014 and 2015 respectively) | (1,710) | (1,710) | |||||
Cash dividends paid to non-controlling interests of subsidiaries | (882) | (882) | |||||
Stock—based compensation and shortfall tax benefit | 1,970 | 1,970 | |||||
Stock Option Exercises | 474 | 474 | |||||
Employee stock purchases | 79 | 62 | 17 | ||||
Ending balance at Jun. 28, 2015 | $ 152,401 | $ 71 | $ 89,560 | $ 213,442 | $ (26,859) | $ (135,902) | $ 12,089 |
Consolidated Statements of Sha6
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 30, 2013 | |
Statement Of Stockholders Equity [Abstract] | |||
Pension and postretirement funded status adjustment tax impact | $ 1,087 | $ 1,268 | $ 7,857 |
Cash dividends declared per share | $ 0.48 | $ 0.44 | $ 0.40 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 30, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 24,551 | $ 19,140 | $ 11,513 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity loss (income) of joint ventures | 788 | (957) | 225 |
Depreciation and amortization | 8,815 | 8,267 | 7,490 |
Foreign currency transaction (gain) loss | (3,075) | 36 | 395 |
Unrealized gain on peso option contracts | (395) | ||
Loss on disposition of property, plant and equipment | 154 | 170 | 100 |
Deferred income taxes | (3,330) | 1,447 | 3,847 |
Stock based compensation expense | 1,323 | 1,128 | 1,062 |
Loss on settlement of pension obligation | 2,144 | ||
Change in operating assets and liabilities: | |||
Receivables | 9,155 | (21,291) | (2,923) |
Inventories | (4,284) | (6,190) | (3,076) |
Other assets | (1,482) | (6,535) | 2,809 |
Accounts payable and accrued liabilities | (1,463) | 16,188 | (7,553) |
Other, net | 307 | 116 | 27 |
Net cash provided by operating activities | 31,459 | 11,519 | 15,665 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Investment in joint ventures | (4,384) | (965) | |
Loan to Joint Venture | (315) | (285) | |
Additions to property, plant and equipment | (26,097) | (12,812) | (12,515) |
Proceeds received on sale of property, plant and equipment | 1 | 71 | 91 |
Net cash used in investing activities | (30,795) | (13,026) | (13,389) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Borrowings under credit facility | 9,000 | 1,250 | 3,250 |
Repayments under credit facility | (1,500) | (1,000) | (1,000) |
Exercise of stock options and employee stock purchases | 553 | 2,742 | 823 |
Excess tax benefits from stock-based compensation | 367 | 495 | 270 |
Dividends paid to non-controlling interests of subsidiaries | (882) | (984) | (1,331) |
Dividends paid | (1,711) | (1,542) | (1,352) |
Net cash provided by financing activities | 5,827 | 961 | 660 |
FOREIGN CURRENCY IMPACT ON CASH | (552) | (5) | (116) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 5,939 | (551) | 2,820 |
CASH AND CASH EQUIVALENTS | |||
Beginning of year | 19,756 | 20,307 | 17,487 |
End of year | 25,695 | 19,756 | 20,307 |
Cash Paid During the Period For: | |||
Income taxes | 14,754 | 5,441 | 3,701 |
Interest | 47 | $ 42 | $ 42 |
Non-Cash Investing Activities: | |||
Change in capital expenditures in accounts payable | 136 | ||
Guarantee of joint venture revolving credit facility | 995 | ||
Guarantee of joint venture contract | $ 250 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 28, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Summary of Significant Accounting Policies | ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES STRATTEC SECURITY CORPORATION designs, develops, manufactures and markets automotive access control products including mechanical locks and keys, electronically enhanced locks and keys, steering column and instrument panel ignition lock housings, latches, power sliding side door systems, power lift gate systems, power deck lid systems, door handles and related products for primarily North American automotive customers. We also supply global automotive manufacturers through a unique strategic relationship with WITTE Automotive of Velbert, Germany and ADAC Automotive of Grand Rapids, Michigan. Under this relationship, STRATTEC, WITTE and ADAC market the products of each company to global customers under the “VAST” brand name (as more fully described herein). STRATTEC products are shipped to customer locations in the United States, Canada, Mexico, Europe, South America, Korea, China and India, and we provide full service and aftermarket support for our products. During 2013, we acquired a 51 percent ownership interest in a newly formed joint venture NextLock, LLC, which was formed to introduce a new generation of biometric security products based upon the designs of Actuator Systems LLC, our partner and the owner of the remaining ownership interest. Effective January 6, 2015, we changed the name of NextLock, LLC to STRATTEC Advanced Logic, LLC. The accompanying consolidated financial statements reflect the consolidated results of STRATTEC SECURITY CORPORATION, its wholly owned Mexican subsidiary, STRATTEC de Mexico, and its majority owned subsidiaries, ADAC-STRATTEC, LLC and STRATTEC POWER ACCESS LLC. STRATTEC SECURITY CORPORATION is located in Milwaukee, Wisconsin. STRATTEC de Mexico is located in Juarez, Mexico. ADAC-STRATTEC, LLC and STRATTEC POWER ACCESS LLC have operations in El Paso, Texas and Juarez, Mexico. Equity investments in Vehicle Access Systems Technology LLC (“VAST LLC”) and STRATTEC Advanced Logic, LLC (formerly known as NextLock, LLC) for which we exercise significant influence but do not control and are not the primary beneficiary are accounted for using the equity method. VAST LLC consists primarily of three wholly owned subsidiaries in China, one wholly owned subsidiary in Brazil and one joint venture entity in India. STRATTEC Advanced Logic, LLC is located in El Paso, Texas. We have only one reporting segment. The significant accounting policies followed in the preparation of these financial statements, as summarized in the following paragraphs, are in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). Principles of Consolidation and Presentation: The accompanying consolidated financial statements include the accounts of STRATTEC SECURITY CORPORATION, its wholly owned Mexican subsidiary, and its majority owned subsidiaries. Equity investments for which STRATTEC exercises significant influence but does not control and is not the primary beneficiary are accounted for using the equity method. All significant inter-company transactions and balances have been eliminated. New Accounting Standards: In August 2014, the FASB issued an update to the accounting guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. This accounting update is effective for annual and interim periods beginning on or after December 15, 2016, with early adoption permitted. We do not expect that the adoption of this pronouncement will have a material impact on our consolidated financial statements. In May 2014, the FASB issued an update to the accounting guidance for the recognition of revenue arising from contracts with customers. The update supersedes most current revenue recognition guidance and outlines a single comprehensive model for revenue recognition based on the principle that an entity should recognize revenue in an amount that reflects the expected consideration to be received in the exchange of goods and services. The guidance update also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. The guidance update is effective for annual reporting periods beginning after December 15, 2017 and becomes effective for us at the beginning of our 2019 fiscal year. We are currently assessing the impact that this guidance will have on our consolidated financial statements. In February 2015, the FASB issued an update to the accounting guidance that amends current consolidation guidance by modifying the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities, eliminating the presumption that a general partner should consolidate a limited partnership, and affects the consolidation analysis of reporting entities that are involved with variable interest entities. The update is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. We do not expect that the adoption of this pronouncement will have a material impact on our consolidated financial statements. Fiscal Year: Our fiscal year ends on the Sunday nearest June 30. The years ended June 28, 2015, June 29, 2014 and June 30, 2013 are each comprised of 52 weeks. Use of Estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses for the periods presented. These estimates and assumptions could also affect the disclosure of contingencies. Actual results and outcomes may differ from management’s estimates and assumptions. Cash and Cash Equivalents: Cash and cash equivalents include all short-term investments with an original maturity of three months or less due to the short-term nature of the instruments. Excess cash balances are placed in short-term commercial paper. As of June 28, 2015, $14.8 million of our cash and cash equivalents balance held by our foreign subsidiaries in Mexico was deemed to be permanently reinvested. Derivative Instruments: We own and operate manufacturing operations in Mexico. As a result, a portion of our manufacturing costs are incurred in Mexican pesos, which causes our earnings and cash flows to fluctuate as a result of changes in the U.S. dollar / Mexican peso exchange rate. During fiscal 2013, we had agreements with Bank of Montreal that provided for two weekly Mexican peso currency option contracts to cover a portion of our weekly estimated peso denominated operating costs. The contracts with Bank of Montreal expired on June 28, 2013. The two weekly option contracts were for equivalent notional amounts. The contracts provided for the purchase of Mexican pesos at an average U.S. dollar / Mexican peso exchange rate of 12.40 if the spot rate at the weekly expiry date was below an average of 12.40 or for the purchase of Mexican pesos at an average U.S. dollar / Mexican peso exchange rate of 13.40 if the spot rate at the weekly expiry date was above an average of 13.40. Our objective in entering into these currency option contracts was to minimize our earnings volatility resulting from changes in exchange rates affecting the U.S. dollar cost of our Mexican operations. The Mexican peso option contracts were not used for speculative purposes and were not designated as hedges. As a result, all currency option contracts were recognized in our accompanying consolidated financial statements at fair value and changes in the fair value of the currency option contracts were reported in current earnings as part of Other Income, net. The premiums paid and received under the weekly Mexican peso currency option contracts netted to zero. As a result, premiums related to the contracts did not impact our earnings. No Mexican peso currency option contracts were in effect during fiscal 2015 or 2014 and none were outstanding as of June 28, 2015, June 29, 2014 or June 30, 2013. The pre-tax effects of the Mexican peso option contracts on the accompanying Consolidated Statements of Income and Comprehensive Income consisted of the following (thousands of dollars): Other Income, net June 28, 2015 June 29, 2014 June 30, 2013 Not Designated as Hedging Instruments: Realized gain $ — $ — $ 27 Realized (loss) $ — $ — $ (39 ) Unrealized gain $ — $ — $ 395 Fair Value of Financial Instruments: The fair value of our cash and cash equivalents, accounts receivable, accounts payable, and borrowings under credit facility approximated book value as of June 28, 2015 and June 29, 2014. Fair Value is defined as the exchange price that would be received for an asset or paid for a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. There is an established fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable. Level 1 – Quoted prices in active markets for identical assets or liabilities. These are typically obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 – Inputs, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly. These are typically obtained from readily-available pricing sources for comparable instruments. Level 3 – Unobservable inputs, where there is little or no market activity for the asset or liability. These inputs reflect the reporting entity’s own assumptions of the data that market participants would use in pricing the asset or liability, based on the best information available in the circumstances. The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis as of June 28, 2015 and June 29, 2014 (thousands of dollars): June 28, 2015 June 29, 2014 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Rabbi Trust Assets: Stock Index Funds: Small Cap $ 372 $ — $ — $ 372 $ 346 $ — $ — $ 346 Mid Cap 365 — — 365 226 — — 226 Large Cap 490 — — 490 448 — — 448 International 438 — — 438 446 — — 446 Fixed Income Funds 679 — — 679 754 — — 754 Cash and Cash Equivalents — — — — — 28 — 28 Total assets at fair value $ 2,344 $ — $ — $ 2,344 $ 2,220 $ 28 $ — $ 2,248 The Rabbi Trust assets fund our supplemental executive retirement plan and are included in Other Long-Term Assets in the accompanying Consolidated Balance Sheets. There were no transfers between Level 1 and Level 2 assets during 2015 or 2014. Receivables: Receivables consist primarily of trade receivables due from Original Equipment Manufacturers in the automotive industry and locksmith distributors relating to our service and aftermarket sales. We evaluate the collectability of receivables based on a number of factors. An allowance for doubtful accounts is recorded for significant past due receivable balances based on a review of the past due items, general economic conditions and the industry as a whole. Changes in the allowance for doubtful accounts were as follows (thousands of dollars): Balance, Provision Net Balance, Year ended June 28, 2015 $ 500 $ — $ — $ 500 Year ended June 29, 2014 $ 500 $ — $ — $ 500 Year ended June 30, 2013 $ 500 $ — $ — $ 500 Inventories: Inventories are comprised of material, direct labor and manufacturing overhead, and are stated at the lower of cost or market using the first-in, first-out (“FIFO”) cost method of accounting. Inventories consisted of the following (thousands of dollars): June 28, 2015 June 29, 2014 Finished products $ 11,358 $ 9,034 Work in process 7,746 7,386 Purchased materials 17,982 16,232 37,086 32,652 Excess and obsolete reserve (2,300 ) (2,150 ) Inventories, net $ 34,786 $ 30,502 We record a reserve for excess and obsolete inventory based on historical and estimated future demand and market conditions. The reserve level is determined by comparing inventory levels of individual materials and parts to historical usage and estimated future sales by analyzing the age of the inventory in order to identify specific materials and parts that are unlikely to be sold. Technical obsolescence and other known factors are also considered in evaluating the reserve level. The activity related to the excess and obsolete inventory reserve was as follows (thousands of dollars): Balance, Provision Amounts Balance, Year ended June 28, 2015 $ 2,150 $ 655 $ 505 $ 2,300 Year ended June 29, 2014 $ 1,500 $ 1,122 $ 472 $ 2,150 Year ended June 30, 2013 $ 1,300 $ 511 $ 311 $ 1,500 Customer Tooling in Progress: We incur costs related to tooling used in component production and assembly. Costs for development of certain tooling, which will be directly reimbursed by the customer whose parts are produced from the tool, are accumulated on the balance sheet and are then billed to the customer. The accumulated costs are billed upon formal acceptance by the customer of products produced with the individual tool. Other tooling costs are not directly reimbursed by the customer. These costs are capitalized and amortized over the life of the related product based on the fact that the related tool will be used over the life of the supply arrangement. To the extent that estimated costs exceed expected reimbursement from the customer we will recognize a loss. Repair and Maintenance Supply Parts: We maintain an inventory of repair and maintenance supply parts in support of operations. This inventory includes critical repair parts for all production equipment as well as general maintenance items. The inventory of critical repair parts is required to avoid disruptions in our customers’ just-in-time production schedules due to a lack of spare parts when equipment break-downs occur. All required critical repair parts are on hand when the related production equipment is placed in service and maintained to satisfy the customer model life production and service requirements, which may be 12 to 15 years. As repair parts are used, additional repair parts are purchased to maintain a minimum level of spare parts inventory. Depending on maintenance requirements during the life of the equipment, excess quantities of repair parts arise. Excess quantities are kept on hand and are not disposed of until the equipment is no longer in service. A repair and maintenance supply parts reserve is maintained to recognize the normal adjustment of inventory for obsolete and slow moving supply and maintenance parts. The adequacy of the reserve is reviewed periodically in relation to the repair parts inventory balances. The gross balance of the repair and maintenance supply parts inventory was approximately $2.9 million at June 28, 2015 and $2.3 million at June 29, 2014. The repair and maintenance supply parts inventory balance is included in Other Current Assets in the accompanying Consolidated Balance Sheets. The activity related to the repair and maintenance supply parts reserve was as follows (thousands of dollars): Balance, Provision Amounts Balance, Year ended June 28, 2015 $ 585 $ 348 $ 313 $ 620 Year ended June 29, 2014 $ 500 $ 102 $ 17 $ 585 Year ended June 30, 2013 $ 500 $ 195 $ 195 $ 500 Intangibles: Intangible assets that have defined useful lives were acquired in the purchase of the power sliding door, lift gate and deck lid system access control products from Delphi Corporation in 2009 and consist of patents, engineering drawings and software. The intangible assets balance is included in Other Long-term Assets in the accompanying Consolidated Balance Sheets. The carrying value and accumulated amortization were as follows (thousands of dollars): June 28, 2015 June 29, 2014 Patents, engineering drawings and software $ 890 $ 890 Less: accumulated amortization (651 ) (552 ) $ 239 $ 338 The remaining useful life of the intangible assets in the table above is approximately 2.4 years. Intangible amortization expense was $99,000 for each of the years ended June 28, 2015, June 29, 2014 and June 30, 2013. Intangible amortization expense is expected to be $99,000 in each of fiscal years 2016 and 2017, $41,000 in fiscal 2018 and zero thereafter. Property, Plant and Equipment: Property, plant and equipment are stated at cost. Property, plant and equipment are depreciated on a straight-line basis over the estimated useful lives of the assets as follows: Classification Expected Land improvements 20 years Buildings and improvements 15 to 35 years Machinery and equipment 3 to 10 years Property, plant and equipment consisted of the following (thousands of dollars): June 28, 2015 June 29, 2014 Land and improvements $ 4,246 $ 3,269 Buildings and improvements 25,954 21,423 Machinery and equipment 164,367 148,025 194,567 172,717 Less: accumulated depreciation (123,441 ) (116,936 ) $ 71,126 $ 55,781 Depreciation expense was as follows for the periods indicated (thousands of dollars): Depreciation 2015 $ 8,716 2014 $ 8,168 2013 $ 7,391 The gross and net book value of property, plant and equipment located outside of the United States, primarily in Mexico, were as follows (thousands of dollars): June 28, 2015 June 29, 2014 Gross book value $ 87,876 $ 77,445 Net book value $ 38,138 $ 29,804 Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net undiscounted cash flows expected to be generated by the asset. If an asset is considered to be impaired, the impairment recognized is measured by the excess of the carrying amount of the asset over the fair value of the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair value, less estimated costs to sell. There were no impairments recorded in the years ended June 28, 2015, June 29, 2014 or June 30, 2013. Expenditures for repairs and maintenance are charged to expense as incurred. Expenditures for major renewals and betterments, which significantly extend the useful lives of existing plant and equipment, are capitalized and depreciated. Upon retirement or disposition of plant and equipment, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in income. Supplier Concentrations: The following inventory purchases were made from major suppliers during each fiscal year noted: Fiscal Year Percentage of Number of 2015 27 % 5 2014 38 % 7 2013 38 % 7 We have long-term contracts or arrangements with most of our suppliers to guarantee the availability of raw materials and component parts. Labor Concentrations: We had approximately 3,420 full-time associates of which approximately 260 or 7.6 percent were represented by a labor union at June 28, 2015. The associates represented by a labor union account for all production associates at our Milwaukee facility. The current contract with the unionized associates is effective through September 17, 2018. Revenue Recognition: Revenue is recognized upon the shipment of products, which is when title passes, payment terms are final, we have no remaining obligations and the customer is required to pay. Revenue is recognized net of estimated returns and discounts, which is recognized as a deduction from revenue at the time of the shipment. Price concessions agreed to with customers are recorded as a reduction of sales at the later of when revenue related to the specific sales is recognized or the date at which the price concessions are offered and committed to. Research and Development Costs: Expenditures relating to the development of new products and processes, including significant improvements and refinements to existing products, are expensed as incurred. Research and development expenditures were approximately $280,000 in 2015, $700,000 in 2014 and $1.3 million in 2013. Other Income, Net: Net other income included in the accompanying Consolidated Statements of Income and Comprehensive Income primarily included foreign currency transaction gains and losses, realized and unrealized gains and losses on our Mexican Peso option contracts, and Rabbi Trust gains. Foreign currency transaction gains and losses were the result of foreign currency transactions entered into by our Mexican subsidiaries and fluctuations in foreign currency cash balances. We entered into the Mexican Peso currency option contracts during fiscal 2013 to minimize earnings volatility resulting from changes in exchange rates affecting the U.S. dollar cost of our Mexican operations. The Rabbi Trust assets fund our amended and restated supplemental executive retirement plan. The investments held in the Trust are considered trading securities. The impact of these items for the periods presented was as follows (thousands of dollars): Years Ended June 28, 2015 June 29, 2014 June 30, 2013 Foreign currency transaction gain (loss) $ 3,075 $ (36 ) $ (395 ) Rabbi Trust gain 96 211 164 Unrealized gain on Mexican peso option contracts — — 395 Realized loss on Mexican peso option contracts — — (12 ) Other 310 97 177 $ 3,481 $ 272 $ 329 Self Insurance Plans: We have self-insured medical and dental plans covering all eligible U.S. associates. The claims handling process for the self-insured plans are managed by a third-party administrator. Stop-loss insurance coverage limits our liability on a per individual per calendar year basis. The per individual per calendar year stop-loss limit was $150,000 in each calendar year 2012 through 2015. Effective January 1, 2011, under Health Care Reform, there is no lifetime maximum for overall benefits. The expected ultimate cost for claims incurred under the self-insured medical and dental plans as of the applicable balance sheet date is not discounted and is recognized as an expense on our Consolidated Statements of Income and Comprehensive Income. The expected ultimate cost of claims is estimated based upon the aggregate liability for reported claims and an estimated liability for claims incurred but not reported, which is based on an analysis of historical data, current health care trends and information available from the third-party administrator. The expected ultimate cost for claims incurred under the self-insured medical and dental plans that has not been paid as of the applicable balance sheet date is included in Accrued Liabilities: Payroll and Benefits in our accompanying Consolidated Balance Sheets. Changes in the balance sheet amounts for self-insured plans were as follows (thousands of dollars): Balance, Provision Payments Balance, Year ended June 28, 2015 $ 420 $ 4,756 $ 4,756 $ 420 Year ended June 29, 2014 $ 420 $ 4,600 $ 4,600 $ 420 Year ended June 30, 2013 $ 320 $ 3,948 $ 3,848 $ 420 Warranty Reserve: We have a warranty liability recorded related to our known and potential exposure to warranty claims in the event our products fail to perform as expected, and in the event we may be required to participate in the repair costs incurred by our customers for such products. The recorded warranty liability balance involves judgment and estimates. Our liability estimate is based on an analysis of historical warranty data as well as current trends and information, including our customers’ recent extension and/or expansion of their warranty programs. In recent fiscal periods, our largest customers have extended their warranty protection for their vehicles and have since demanded higher warranty cost sharing arrangements from their suppliers in their terms and conditions to purchase, including from STRATTEC. The 2015 warranty provision included various known or expected customer warranty issues and estimated future warranty costs to be incurred as of June 2015 for which amounts were reasonably estimable. As additional information becomes available, actual results may differ from recorded estimates, which may require us to adjust the amount of our warranty provision. The 2013 warranty provision credit included the impact of favorable adjustments for warranty claims settled during that year. Changes in the warranty reserve were as follows (thousands of dollars): Balance, Provision Payments Balance, Year ended June 28, 2015 $ 3,462 $ 8,975 $ 602 $ 11,835 Year ended June 29, 2014 $ 2,500 $ 1,153 $ 191 $ 3,462 Year ended June 30, 2013 $ 4,958 $(404 ) $ 2,054 $ 2,500 Foreign Currency Translation: The financial statements of our foreign subsidiaries and equity investees are translated into U.S. dollars using the exchange rate at each balance sheet date for assets and liabilities and the average exchange rate for each applicable period for sales, costs and expenses. Foreign currency translation adjustments are included as a component of other accumulated comprehensive loss. Foreign currency transaction gains and losses are included in other income, net in the accompanying Consolidated Statements of Income and Comprehensive Income. Accumulated Other Comprehensive Loss: Accumulated other comprehensive loss was comprised of the following (thousands of dollars): June 28, 2015 June 29, 2014 June 30, 2013 Unrecognized pension and postretirement benefit liabilities, net of tax $ 18,638 $ 16,787 $ 18,944 Foreign currency translation 8,221 3,411 3,268 $ 26,859 $ 20,198 $ 22,212 Deferred taxes have not been provided for the foreign currency translation adjustments. The following tables summarize the changes in accumulated other comprehensive loss (“AOCL”) for the years ended June 28, 2015 and June 29, 2014 (thousands of dollars): Year Ended June 28, 2015 Foreign Retirement Total Balance June 29, 2014 $ 3,411 $ 16,787 $ 20,198 Other comprehensive loss before reclassifications 5,133 5,654 10,787 Income Tax — (2,092 ) (2,092 ) Net other comprehensive loss before reclassifications 5,133 3,562 8,695 Reclassifications: Prior service credits (A) — 753 753 Actuarial gains (A) — (3,468 ) (3,468 ) Total reclassifications before tax — (2,715 ) (2,715 ) Income Tax — 1,004 1,004 Net reclassifications — (1,711 ) (1,711 ) Other comprehensive loss 5,133 1,851 6,984 Other comprehensive loss attributable To Non-Controlling interest (323 ) — (323 ) Balance June 28, 2015 $ 8,221 $ 18,638 $ 26,859 Year Ended June 29, 2014 Foreign Retirement Total Balance June 30, 2013 $ 3,268 $ 18,944 $ 22,212 Other comprehensive loss (income) before reclassifications 140 (665 ) (525 ) Income Tax — 246 246 Net other comprehensive loss (income) before reclassifications 140 (419 ) (279 ) Reclassifications: Prior service credits (A) — 752 752 Actuarial gains (A) — (3,512 ) (3,512 ) Total reclassifications before tax — (2,760 ) (2,760 ) Income Tax — 1,022 1,022 Net reclassifications — (1,738 ) (1,738 ) Other comprehensive loss (income) 140 (2,157 ) (2,017 ) Other comprehensive income attributable to non-Controlling interest 3 — 3 Balance June 29, 2014 $ 3,411 $ 16,787 $ 20,198 (A) Amounts reclassified are included in the computation of net periodic benefit cost, which is included in Cost of Goods Sold and Engineering, Selling and Administrative expenses in the accompanying Consolidated Statements of Income and Comprehensive Income. See the Note Retirement Plans and Postretirement Costs in these notes to financial statements. Accounting For Stock-Based Compensation: We maintain an omnibus stock incentive plan. This plan provides for the granting of stock options, shares of restricted stock and stock appreciation rights. The Board of Directors has designated 1,850,000 shares of common stock available for the grant of awards under the plan. Remaining shares available to be granted under the plan as of June 28, 2015 were 253,989. Awards that expire or are cancelled without delivery of shares become available for re-issuance under the plan. We issue new shares of common stock to satisfy stock option exercises. Nonqualified and incentive stock options and shares of restricted stock have been granted to our officers, outside directors and specified associates under the stock incentive plan. Stock options granted under the plan may not be issued with an exercise price less than the fair market value of the common stock on the date the option is granted. Stock options become exercisable as determined at the date of grant by the Compensation Committee of our Board of Directors. The options expire 5 to 10 years after the grant date unless an earlier expiration date is set at the time of grant. The options vest 1 to 4 years after the date of grant. Shares of restricted stock granted under the plan are subject to vesting criteria determined by the Compensation Committee of our Board of Directors at the time the shares are granted and have a minimum vesting period of three years from the date of grant. Restricted shares granted prior to August 2014 have voting and dividend rights, regardless of whether the shares are vested or unvested. Restricted shares granted during August 2014 and thereafter have voting rights, regardless of whether the shares are vested or unvested, but only have the right to receive cash dividends after such shares become vested. The restricted stock grants issued to date vest 3 years after the date of grant. The fair value of each stock option grant was estimated as of the date of grant using the Black-Scholes pricing model. The resulting compensation cost for fixed awards with graded vesting schedules is amortized on a straight-line basis over the vesting period for the entire award. The expected term of awards granted is determined based on historical experience with similar awards, giving consideration to the contractual terms and vesting schedules. The expected volatility is determined based on our historical stock prices over the most recent period commensurate with the expected term of the award. The risk-free interest rate is based on U.S. Treasury zero-coupon issues with a remaining term commensurate with the expected term of the award. Expected pre-vesting option forfeitures are based primarily on historical data. The fair value of each restricted stock grant was based on the market price of the underlying common stock as of the date of grant. The resulting compensation cost is amortized on a straight line basis over the vesting period. We record stock based compensation only for those awards that are expected to vest. Unrecognized compensation cost as of June 28, 2015 related to stock options and restricted stock granted under the plan was as follows (thousands of dollars): Compensation Weighted Stock options granted $ 457 0.8 Restricted Stock granted $ 1,325 1.0 Unrecognized compensation cost will be adjusted for any future changes in estimated and actual forfeitures. Cash received from stock option exercises and the related income tax benefit were as follows (thousands of dollars): Fiscal Year Cash Received Income Tax 2015 $ 474 $ 458 2014 $ 2,683 $ 729 2013 $ 770 $ 421 The intrinsic value of stock options exercised and the fair value of options vested were as follows (thousands of dollars): Years Ended June 28, 2015 June 29, 2014 June 30, 2013 Intrinsic value of options exercised $ 1,375 $ 2,134 $ 1,110 Fair value of stock options vested $ 382 $ 444 $ 266 The grant date fair values and assumptions used to determine compensation expense were as follows: Options Granted During 2015 2014 2013 Weighted average grant date fair value: Options issued at grant date market value n/a n/a n/a Options issued above grant date market value $ 34.93 $ 17.58 $ 10.48 Assumptions: Risk free interest rates 1.90 % 2.06 % 0.95 % Expected volatility 57.83 % 58.75 % 57.58 % Expected dividend yield 0.62 % 1.11 % 1.69 % Expected term (in years) 6.0 6.0 6.0 The range of options outstanding as of June 28, 2015 was as follows: Number of Weighted Weighted $10.92-$18.49 48,914/48,914 $15.30/$15.30 4.2 $22.47-$38.71 105,983/42,189 $29.41/$25.14 6.2 $79.73 9,010/- $79.73/$- 9.1 $27.97/$19.86 Income Taxes: Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to d |
Subsequent Event
Subsequent Event | 12 Months Ended |
Jun. 28, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | SUBSEQUENT EVENT In July 2015, we entered into additional agreements with Bank of Montreal that provide for bi-weekly Mexican peso currency forward contracts covering the period October 6, 2015 through June 21, 2016. The contracts provide for the purchase of Mexican pesos at an average U.S. dollar / Mexican peso exchange rate of 16.00. The notional amount over the contract period totals $13.5 million. |
Investment in Joint Ventures an
Investment in Joint Ventures and Majority Owned Subsidiaries | 12 Months Ended |
Jun. 28, 2015 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investment in Joint Ventures and Majority Owned Subsidiaries | INVESTMENT IN JOINT VENTURES AND MAJORITY OWNED SUBSIDIARIES We participate in certain Alliance Agreements with WITTE Automotive (“WITTE”) and ADAC Automotive (“ADAC”). WITTE, of Velbert, Germany, is a privately held automotive supplier. WITTE designs, manufactures and markets automotive components, including locks and keys, hood latches, rear compartment latches, seat back latches, door handles and specialty fasteners. WITTE’s primary market for these products has been Europe. ADAC, of Grand Rapids, Michigan, is a privately held automotive supplier and manufactures engineered products, including door handles and other automotive trim parts, utilizing plastic injection molding, automated painting and various assembly processes. The Alliance Agreements include a set of cross-licensing agreements for the manufacture, distribution and sale of WITTE products by STRATTEC and ADAC in North America, and the manufacture, distribution and sale of STRATTEC and ADAC products by WITTE in Europe. Additionally, a joint venture company, Vehicle Access Systems Technology LLC (“VAST LLC”), in which WITTE, STRATTEC and ADAC each hold a one-third interest, exists to seek opportunities to manufacture and sell each of the company’s products in areas of the world outside of North America and Europe. VAST do Brasil services customers in South America. Effective March 21, 2014, VAST LLC purchased the remaining non-controlling interest in VAST do Brasil. VAST Fuzhou, VAST Great Shanghai and VAST Shanghai Co. (collectively known as VAST China), provides a base of operations to service our automotive customers in the Asian market. VAST LLC also maintains branch offices in South Korea and Japan in support of customer sales and engineering requirements. Effective April 30, 2015, VAST LLC executed an agreement to become a 50:50 Joint Venture partner with Minda Management Services Limited an affiliate of both Minda Corporation Limited and Spark Minda, Ashok Minda Group of New Delhi, India (collectively “Minda”). VAST acquired a fifty percent equity interest in the former Minda-Valeo Security Systems joint venture entity, based in Pune, India, for approximately $12 million. This joint venture entity was renamed Minda-VAST Access Systems (“Minda-VAST”). The portion of the purchase price paid by each VAST LLC partner, STRATTEC, WITTE and ADAC, totaled $4 million. Minda-VAST will have operations in Pune and Delhi and is expected to have annual sales in excess of approximately $40 million. Minda and its affiliates cater to the needs of all major car, motorcycle, commercial vehicle, tractor and off-road vehicle manufacturers in India. They are a leading manufacturer in the Indian marketplace of security & access products, handles, automotive safety, restraint systems, driver information and telematics systems for both OEMs and the aftermarket. The VAST LLC investments are accounted for using the equity method of accounting. The activities related to the VAST LLC joint ventures resulted in equity earnings of joint ventures to STRATTEC of approximately $1.3 million during 2015 and $1.3 million during 2014 and equity loss to joint ventures of approximately $147,000 during 2013. Relocation costs associated with a move to a new facility and start-up costs associated with a new product line negatively impacted the financial results of VAST China during the first half of fiscal 2013, which resulted in STRATTEC incurring an equity loss from joint ventures in 2013. During 2015, cash capital contributions totaling $13.2 million were made to VAST LLC in support of the acquisition of the 50 percent joint venture interest in Minda-VAST and in support of general operating expenses for VAST do Brasil. STRATTEC’s portion of the cash capital contributions totaled $4.4 million. No cash capital contributions were made to VAST LLC during 2014. During 2013, cash capital contributions totaling $600,000 were made to VAST LLC in support of general operating expenses. STRATTEC’s portion of the cash capital contributions totaled $200,000. Loans were made by each partner, STRATTEC, WITTE and ADAC, to VAST LLC totaling $215,000 for each partner in 2015 and $285,000 for each partner in 2014. The loans were made in support of VAST LLC’s purchase of the non-controlling interest in VAST do Brasil and in support of funding operating costs of the Brazilian entity. In fiscal year 2007, we established a new entity with ADAC forming ADAC-STRATTEC LLC, a Delaware limited liability company. The new entity was created to establish injection molding and door handle assembly operations in Mexico. STRATTEC holds a 51 percent interest in ADAC-STRATTEC LLC. A Mexican entity, ADAC-STRATTEC de Mexico, exists and is wholly owned by ADAC-STRATTEC LLC. ADAC-STRATTEC LLC’s financial results are consolidated with the financial results of STRATTEC and resulted in increased net income to STRATTEC of approximately $2.6 million in 2015, $1.4 million in 2014 and $1.1 million in 2013. Effective November 30, 2008, we established a new entity with WITTE forming STRATTEC POWER ACCESS LLC (“SPA”), which is 80 percent owned by STRATTEC. SPA supplies the North American portion of the power sliding door, lift gate and deck lid system access control products which were acquired from Delphi Corporation. The financial results of SPA are consolidated with the financial results of STRATTEC and resulted in reduced net income to STRATTEC of approximately $269,000 in 2015, and increased income to STRATTEC of approximately $1.5 million in 2014 and $1.0 million in 2013. On April 5, 2013, we acquired a 51 percent ownership interest in a newly formed joint venture, STRATTEC Advanced Logic, LLC (formerly known as NextLock, LLC), which was formed to introduce a new generation of biometric security products based upon the designs of Actuator Systems LLC, our partner and the owner of the remaining ownership interest. The initial capitalization of the STRATTEC Advanced Logic, LLC joint venture totaled $1.5 million. STRATTEC’s portion of the initial capitalization totaled $765,000. Our investment in STRATTEC Advanced Logic, LLC, for which we exercise significant influence but do not control and are not the primary beneficiary, is accounted for using the equity method. The activities related to the STRATTEC Advanced Logic, LLC joint venture resulted in an equity loss of joint ventures to STRATTEC of approximately $2.0 million in 2015, $367,000 in 2014 and $78,000 in 2013. Notwithstanding the existence of the STRATTEC Advanced Logic Credit Facility described herein, as a result of STRATTEC's guaranty of such credit facility and as a result of borrowing limitations imposed by the bank under such credit facility, even though we maintain a 51 percent ownership interest in STRATTEC Advanced Logic, LLC, effective with our fiscal 2015 fourth quarter, 100 percent of the funding for STRATTEC Advanced Logic, LLC was being made through loans from STRATTEC to STRATTEC Advanced Logic, LLC in addition to the credit facility guarantee. Therefore, STRATTEC began recognizing 100 percent of the losses of STRATTEC Advanced Logic, LLC through Equity Loss (Earnings) of Joint Ventures in the accompanying Consolidated Statements of Income and Comprehensive Income. In addition, the following losses were included in our 2015 Equity (Loss) Earnings of Joint Ventures for STRATTEC Advanced Logic, LLC (thousands of dollars): Loss on Guarantee of STRATTEC Advanced Logic, LLC Vendor Contract $ 123 Loss on Loan to STRATTEC Advanced Logic, LLC $ 100 Loss on Guarantee of STRATEC Advanced Logic, LLC Credit facility $ 488 The joint venture investments are included in the accompanying Consolidated Balance Sheets as follows (thousands of dollars): June 28, 2015 June 29, 2014 Investment in Joint Ventures: Investment in VAST LLC $ 15,326 $ 9,657 Investment in STRATTEC Advanced Logic, LLC - 320 $ 15,326 $ 9,977 Other Current Liabilities: Investment in STRATTEC Advanced Logic, LLC $ 402 $ - |
Equity (Loss) Earnings of Joint
Equity (Loss) Earnings of Joint Ventures | 12 Months Ended |
Jun. 28, 2015 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Equity (Loss) Earnings of Joint Ventures | EQUITY (LOSS) EARNINGS OF JOINT VENTURES As discussed above under the note Investment in Joint Ventures and Majority Owned Subsidiaries, we hold a one-third ownership interest in VAST LLC, for which we exercise significant influence but do not control and are not the primary beneficiary. Our investment in VAST LLC is accounted for using the equity method. The following are summarized statements of operations and summarized balance sheet data for VAST LLC (thousands of dollars): Years Ended June 28, 2015 June 29, 2014 June 30, 2013 Net sales $ 124,929 $ 111,844 $ 92,388 Cost of goods sold 105,132 94,701 76,759 Gross profit 19,797 17,143 15,629 Engineering, selling and administrative expense 16,155 14,169 17,270 Income (loss) from operations 3,642 2,974 (1,641 ) Other income, net 123 1,809 497 Income (loss) before provision for Income taxes 3,765 4,783 (1,144 ) Provision (benefit) for income taxes 41 810 (690 ) Net income (loss) $ 3,724 $ 3,973 $ (454 ) STRATTEC’s share of VAST LLC net Income (loss) $ 1,241 $ 1,324 $ (151 ) Intercompany profit eliminations 10 — 4 STRATTEC’s equity earnings (loss) of VAST LLC $ 1,251 $ 1,324 $ (147 ) June 28, 2015 June 29, 2014 Cash and cash equivalents $ 5,792 $ 8,267 Receivables, net 23,511 24,907 Inventories, net 13,792 12,649 Other current assets 12,479 7,720 Total current assets 55,574 53,543 Property, plant and equipment, net 26,070 23,949 Other long-term assets 15,413 2,779 Total assets $ 97,057 $ 80,271 Current liabilities $ 43,605 $ 44,436 Long-term liabilities 7,212 6,571 Total liabilities $ 50,817 $ 51,007 Net assets $ 46,240 $ 29,264 STRATTEC’s share of VAST LLC net assets $ 15,413 $ 9,755 As discussed above under the note Investment in Joint Ventures and Majority Owned Subsidiaries, during 2013, we acquired a 51 percent ownership interest in a newly formed joint venture company, STRATTEC Advanced Logic, LLC (formerly known as NextLock, LLC), which was formed to introduce a new generation of biometric security products based upon the designs of Actuator Systems LLC, our partner. Effective February 16, 2015, STRATTEC Advanced Logic, LLC entered into a $1.5 million revolving credit facility (the “STRATTEC Advanced Logic Credit Facility”) with BMO Harris Bank N.A., which is fully guaranteed by STRATTEC. Interest on borrowings under the STRATTEC Advanced Logic Credit Facility is at varying rates based, at STRATTEC Advanced Logic, LLC’s option, on the London Interbank Offering Rate (“LIBOR”) plus 1.0 percent or the bank’s prime rate. The STRATTEC Advanced Logic Credit Facility currently has a maturity date of February 16, 2016. Outstanding borrowings under the STRATTEC Advanced Logic Credit Facility as of June 28, 2015 totaled $995,000. STRATTEC Advanced Logic, LLC is considered a variable interest entity based on the STRATTEC guarantee. STRATTEC is not the primary beneficiary and does not control the entity. Accordingly, our investment in STRATTEC Advanced Logic, LLC is accounted for using the equity method. As of June 28, 2015, STRATTEC has a recorded liability equal to the estimated fair value of the guarantee of $995,000, which amount is equal to the outstanding borrowings on the STRATTEC Advanced Logic Credit Facility as of June 28, 2015. The liability is included in Other Current Liabilities in the accompanying Consolidated Balance Sheets. STRATTEC’s proportionate share of the guarantee based on our ownership percentage in STRATTEC Advanced Logic, LLC totals $507,000, and accordingly, we have increased our investment in STRATTEC Advanced Logic, LLC as of June 28, 2015 by this amount. Our joint venture partner did not guarantee their proportionate share of the STRATTEC Advanced Logic Credit Facility. As a result, STRATTEC recorded a loss of $488,000 which is equal to our partner’s proportionate share, based upon their ownership interest in the joint venture, of the fair value of the STRATTEC guarantee. This loss is included in Equity Loss (Earnings) of Joint Ventures for 2015 in the accompanying Consolidated Statements of Income and Comprehensive Income. Effective November 1, 2014, a license agreement was signed with Westinghouse allowing STRATTEC Advanced Logic, LLC to do business as Westinghouse Security. Payments required under this license agreement were guaranteed by STRATTEC. As of June 28, 2015, STRATTEC has recorded a liability equal to the estimated fair value of the guarantee of these payments of $250,000, which amount is equal to the future payments required to be made under the license agreement as of June 28, 2015. The liability is included in Other Long-term Liabilities in the accompanying Consolidated Balance Sheets. STRATTEC’s proportionate share of the guarantee of these payments based on our ownership percentage in STRATTEC Advanced Logic, LLC totals $127,000, and accordingly, we have increased our investment in STRATTEC Advanced Logic, LLC as of June 28, 2015 by this amount. Our joint venture partner did not guarantee their proportionate share of the payments required under the license agreement. As a result, STRATTEC recorded a loss of $123,000 which is equal to our partner’s proportionate share, based upon their ownership interest in the joint venture, of the fair value of the STRATTEC guarantee. This loss is included in Equity Loss (Earnings) of Joint Ventures for 2015 in the accompanying Consolidated Statements of Income and Comprehensive Income. During 2015, a loan was made from STRATTEC to STRATTEC Advanced Logic, LLC in support of operating expenses and working capital needs. As of June 28, 2015, the outstanding loan amount totaled $100,000. A valuation reserve of $100,000 was recorded related to this loan as of June 28, 2015. The corresponding loss related to this valuation reserve is included in Equity Loss (Earnings) of Joint Ventures in the accompanying Consolidated Statements of Income and Comprehensive Income. Notwithstanding the existence of the STRATTEC Advanced Logic Credit Facility described herein, as a result of STRATTEC's guaranty of such credit facility and as a result of borrowing limitations imposed by the bank under such credit facility, even though we maintain a 51 percent ownership interest in STRATTEC Advanced Logic, LLC, effective with our fiscal 2015 fourth quarter, 100 percent of the funding for STRATTEC Advanced Logic, LLC was being made by STRATTEC through intercompany loans. Therefore, STRATTEC began recognizing 100 percent of the losses of STRATTEC Advanced Logic, LLC through Equity Loss (Earnings) of Joint Ventures in the accompanying Consolidated Statements of Income and Comprehensive Income. The following are summarized statements of operations and summarized balance sheet data for STRATTEC Advanced Logic (thousands of dollars): Years Ended June 28, 2015 June 29, 2014 June 30, 2013 Net sales $ 49 $ — $ — Cost of goods sold 450 — — Gross profit (loss) (401 ) — — Engineering, selling and administrative expense 1,492 720 153 Income (loss) from operations (1,893 ) (720 ) (153 ) Other income (expense), net (4 ) - - Net income (loss) $ (1,897 ) $ (720 ) $ (153 ) STRATTEC’s share of STRATTEC Advanced Logic, LLC loss $ (1,328 ) $ (367 ) $ (78 ) Loss on Guarantee of STRATTEC Advanced Logic, LLC Vendor Contract (123 ) — — Loss on Loan to STRATTEC Advanced Logic, LLC (100 ) — — Loss on Guarantee of STRATEC Advanced Logic, LLC Credit facility (488 ) — — STRATTEC’s equity loss of STRATTEC Advanced Logic, LLC $ (2,039 ) $ (367 ) $ (78 ) June 28, 2015 June 29, 2014 Cash and cash equivalents $ 71 $ 611 Receivables, net 14 - Inventories, net 246 - Property, plant and equipment, net - 20 Total assets $ 331 $ 631 Current liabilities $ 1,600 $ 4 Net (liabilities) assets $ (1,269 ) $ 627 STRATTEC’s share of STRATTEC Advanced Logic, LLC net (liabilities) assets $ (647 ) $ 320 We have sales of component parts to VAST LLC and STRATTEC Advanced Logic, LLC, purchases of component parts from VAST LLC, expenses charged to VAST LLC for engineering and accounting services and expenses charged from VAST LLC for general headquarter expenses. The following tables summarize the related party transactions with VAST LLC and STRATTEC Advanced Logic LLC for the periods indicated (thousands of dollars): 2015 2014 2013 Sales to VAST LLC $ 2,298 $ 231 $ 141 Sales to STRATTEC Advanced Logic, LLC $ 157 $ — $ — Purchases from VAST LLC $ 164 $ 233 $ 219 Expenses charged to VAST LLC $ 832 $ 743 $ 517 Expenses charged from VAST LLC $ 1,825 $ 1,261 $ 729 June 28, 2015 June 29, 2014 Accounts receivable from VAST LLC $ 118 $ 119 Accounts receivable from STRATTEC Advanced Logic, LLC ( A ) $ 278 $ — Current loan receivable from STRATTEC Advanced Logic, LLC (A) $ 100 $ — Long-term loan receivable from VAST LLC $ 500 $ 285 Accounts payable to VAST LLC $ 267 $ 98 (A) Based on the current financial position of STRATTEC Advanced Logic, LLC, a valuation reserve has been established as of June 28, 2015 for the full amount of the receivable balance. |
Credit Facilities and Guarantee
Credit Facilities and Guarantees | 12 Months Ended |
Jun. 28, 2015 | |
Debt Disclosure [Abstract] | |
Credit Facilities and Guarantees | CREDIT FACILITIES AND GUARANTEES STRATTEC has a $30 million secured revolving credit facility (the “STRATTEC Credit Facility”) with BMO Harris Bank N.A. ADAC-STRATTEC LLC has a $10 million secured revolving credit facility (the “ADAC-STRATTEC Credit Facility”) with BMO Harris Bank N.A., which is guaranteed by STRATTEC. The credit facilities both expire on August 1, 2018. Borrowings under either credit Net assets acility are secured by our U.S. cash balances, accounts receivable, inventory and fixed assets located in the U.S. Interest on borrowings under the STRATTEC Credit Facility is at varying rates based, at our option, on the LIBOR plus 1.0 percent or the bank’s prime rate. Interest on borrowings under the ADAC-STRATTEC Credit Facility for periods prior to January 22, 2014 was at varying rates based, at our option, on LIBOR plus 1.75 percent or the bank’s prime rate. As a result of an amendment to the ADAC-STRATTEC Credit Facility, effective January 22, 2014 and thereafter, interest on borrowings under this facility is based, at our option, on LIBOR plus 1.0 percent or the bank’s prime rate. Both credit facilities contain a restrictive financial covenant that requires the applicable borrower to maintain a minimum net worth level. The ADAC-STRATTEC Credit Facility includes an additional restrictive financial covenant that requires the maintenance of a minimum fixed charge coverage ratio. As of June 28, 2015, we were in compliance with all financial covenants. Outstanding borrowings under the credit facilities referenced in the above paragraph were as follows (thousands of dollars): June 28, 2015 June 29, 2014 STRATTEC Credit Facility $ 7,000 $ — ADAC-STRATTEC Credit Facility $ 3,000 $ 2,500 Average outstanding borrowings and the weighted average interest rate under each such credit facility during 2015 and 2014 were as follows (thousands of dollars): Average Outstanding Weighted Average 2015 2014 2015 2014 STRATTEC Credit Facility $ 2,288 $ — 1.2 % — % ADAC-STRATTEC Credit Facility $ 3,666 $ 2,643 1.2 % 1.7 % We believe that the credit facilities referenced above are adequate, along with existing cash balances and cash flow from operations, to meet our anticipated capital expenditure, working capital, dividend and operating expenditure requirements. Effective February 16, 2015, STRATTEC Advanced Logic, LLC (formerly known as NextLock LLC) entered into a $1.5 million revolving credit facility (the “STRATTEC Advanced Logic Credit Facility”) with BMO Harris Bank N.A., which is fully guaranteed by STRATTEC. Interest on borrowings under the STRATTEC Advanced Logic Credit Facility is at varying rates based, at STRATTEC Advanced Logic, LLC’s option, on LIBOR plus 1.0 percent or the bank’s prime rate. The STRATTEC Advanced Logic Credit Facility currently has a maturity date of February 16, 2016. Outstanding borrowings under the STRATTEC Advanced Logic Credit Facility as of June 28, 2015 totaled $995,000. As of June 28, 2015, STRATTEC has recorded a liability related to the guarantee of $995,000, which amount is equal to the outstanding borrowings on the STRATTEC Advanced Logic Credit Facility as of June 28, 2015, and which amount is also equal to the estimated fair value of the guarantee as of the June 28, 2015 balance sheet date. Effective November 1, 2014, a license agreement was signed with Westinghouse allowing STRATTEC Advanced Logic, LLC to do business as Westinghouse Security. STRATTEC guaranteed payments under the Westinghouse agreement. As of June 28, 2015, STRATTEC has recorded a liability related to the guarantee of $250,000, which amount is equal to the amount of the future payments required under the Westinghouse agreement as of June 28, 2015, and which amount is also equal to the estimated fair value of the guarantee as of the June 28, 2015 balance sheet date. See further discussion under Equity (Loss) Earnings of Joint Ventures included herein. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 28, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES We are from time to time subject to various legal actions and claims incidental to our business, including those arising out of alleged defects, alleged breaches of contracts, product warranties, intellectual property matters and employment related matters. It is our opinion that the outcome of such matters will not have a material adverse impact on the consolidated financial position, results of operations or cash flows of STRATTEC. With respect to warranty matters, although we cannot ensure that the future costs of warranty claims by customers will not be material, we believe our established reserves are adequate to cover potential warranty settlements. We have a reserve for estimated costs to remediate an environmental contamination site at our Milwaukee facility. The site was contaminated by a solvent spill, which occurred in 1985, from a former above ground solvent storage tank located on the east side of the facility. The reserve was initially established in 1995. Due to changing technology and related costs associated with active remediation of the site, in fiscal 2010 the reserve was adjusted based on updated third party estimates to adequately cover the cost for active remediation of the contamination. From 1995 through June 28, 2015, costs of approximately $492,000 have been incurred related to the installation of monitoring wells on the property and ongoing monitoring costs. We monitor and evaluate the site with the use of groundwater monitoring wells that are installed on the property. An environmental consultant samples these wells one or two times a year to determine the status of the contamination and the potential for remediation of the contamination by natural attenuation, the dissipation of the contamination over time to concentrations below applicable standards. If such sampling evidences a sufficient degree of and trend toward natural attenuation of the contamination, we may be able to obtain a closure letter from the regulatory authorities resolving the issue without the need for active remediation. If a sufficient degree and trend toward natural attenuation is not evidenced by sampling, a more active form of remediation beyond natural attenuation may be required. The sampling has not yet satisfied all of the requirements for closure by natural attenuation. As a result, sampling continues and the reserve remains at an amount to reflect the estimated cost of active remediation. The reserve is not measured on a discounted basis. We believe, based on findings-to-date and known environmental regulations, that the environmental reserve of $1.4 million at June 28, 2015, is adequate. At June 28, 2015, we had purchase commitments for zinc, other purchased parts and natural gas and minimum rental commitments under non-cancelable operating leases with a term in excess of one year which are payable as follows (thousands of dollars): Purchase Minimum Rental Fiscal Year Commitments Commitments 2016 $ 12,987 $ 305 2017 $ 11,335 $ 247 2018 $ 10,503 $ 210 2019 $ 4,791 $ 83 2020 $ — $ — Rental expense under all non-cancelable operating leases was as follows (thousands of dollars): Fiscal Year Rental Expense 2015 $ 993 2014 $ 849 2013 $ 604 |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 28, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The provision for income taxes consisted of the following (thousands of dollars): 2015 2014 2013 Currently payable: Federal $ 9,891 $ 4,811 $ (561 ) State 657 252 185 Foreign 2,164 2,164 1,895 12,712 7,227 1,519 Deferred tax (benefit) provision (3,330 ) 1,447 3,847 $ 9,382 $ 8,674 $ 5,366 The items accounting for the difference between income taxes computed at the Federal statutory tax rate and the provision for income taxes were as follows: 2015 2014 2013 US statutory rate 34.7 % 34.5 % 34.0 % State taxes, net of Federal tax benefit 0.7 1.0 2.0 Foreign subsidiaries (1.3 ) (0.9 ) (2.2 ) Non-controlling interest (4.1 ) (3.5 ) (3.1 ) Valuation allowance — — (1.0 ) Other (2.4 ) 0.1 2.1 27.6 % 31.2 % 31.8 % The components of deferred tax assets and (liabilities) were as follows (thousands of dollars): June 28, 2015 June 29, 2014 Deferred income taxes-current: Repair and maintenance supply parts reserve $ 229 $ 216 Payroll-related accruals 2,314 2,049 Environmental reserve 512 517 Inventory reserve 722 720 Allowance for doubtful accounts 185 185 Accrued warranty 3,250 966 Customer sales concession reserve 1,465 - Other 878 1,018 $ 9,555 $ 5,671 Deferred income taxes-noncurrent: Accrued pension obligations $ (12,594 ) $ (11,741 ) Unrecognized pension and postretirement benefit plan liabilities 11,125 10,038 Accumulated depreciation (5,253 ) (4,967 ) Stock-based compensation 928 692 Postretirement obligations (63 ) 171 NOL/credit carry-forwards 105 143 Other 1,157 537 $ (4,595 ) $ (5,127 ) Deferred income tax balances reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax basis and are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered. State operating loss and credit carry-forwards at June 28, 2015 resulted in future benefits of approximately $145,000 and expire in 2024. A valuation allowance of $40,000 has been recorded as of June 28, 2015 due to our assessment of the future realization of certain research and development credit carry-forward benefits. We do not currently anticipate having sufficient state taxable income to offset these credit carry-forwards. Foreign income before the provision for income taxes was $5.9 million in 2015, $6.6 million in 2014 and $6.0 million in 2013. No provision for Federal income taxes was made on earnings of foreign subsidiaries and joint ventures that are considered permanently invested or that would be offset by foreign tax credits upon distribution. Such undistributed earnings at June 28, 2015 were approximately $30.6 million. The total liability for unrecognized tax benefits was $460,000 as of June 28, 2015 and $1.4 million as of June 29, 2014 and was included in Other Long-term Liabilities in the accompanying Consolidated Balance Sheets. This liability includes approximately $437,000 of unrecognized tax benefits at June 28, 2015 and $1.3 million at June 29, 2014 and approximately $23,000 of accrued interest at June 28, 2015 and $113,000 at June 29, 2014. This liability does not include an amount for accrued penalties. The amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was approximately $32,000 at June 28, 2015 and $861,000 at June 29, 2014. We recognize interest and penalties related to unrecognized tax benefits in the provision for income taxes. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows for the years ended June 28, 2015 and June 29, 2014 (thousands of dollars): Year Ended June 28, 2015 June 29, 2014 Unrecognized tax benefits, beginning of year $ 1,289 $ 1,510 Gross increases – tax positions in prior years 3 — Gross decreases – tax positions in prior years - (215 ) Gross increases – current period tax positions 146 59 Tax Years Closed (1,001 ) (65 ) Unrecognized tax benefits, end of year $ 437 $ 1,289 We or one of our subsidiaries files income tax returns in the United States (Federal), Wisconsin (state), Michigan (state) and various other states, Mexico and other foreign jurisdictions. Tax years open to examination by tax authorities under the statute of limitations include fiscal 2012 through 2015 for Federal, fiscal 2010 through 2015 for most states and calendar 2010 through 2014 for foreign jurisdictions. |
Retirement Plans and Postretire
Retirement Plans and Postretirement Costs | 12 Months Ended |
Jun. 28, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Plans and Postretirement Costs | RETIREMENT PLANS AND POSTRETIREMENT COSTS We have a qualified, noncontributory defined benefit pension plan (“Qualified Pension Plan”) covering substantially all U.S. associates. Benefits are based on years of service and final average compensation. Our policy is to fund at least the minimum actuarially computed annual contribution required under the Employee Retirement Income Security Act of 1974 (ERISA). Plan assets consist primarily of listed equity and fixed income securities. Effective December 31, 2009, an amendment to the Qualified Pension Plan discontinued the benefit accruals for salary increases and credited service rendered after that date. On April 2, 2014, our Board of Directors approved a resolution to terminate the Qualified Pension Plan. The termination of the Qualified Pension Plan is subject to the Internal Revenue Service’s (“IRS”) determination that the Qualified Pension Plan is qualified on termination. We believe it will take 18 to 24 months to finalize the complete termination of the Qualified Pension Plan after obtaining IRS approval. We have not yet received IRS approval that the qualified plan is qualified on termination. Additionally, we have amended the Qualified Pension Plan to provide that participants are 100 percent vested in their accrued benefits as of the effective date of the plan termination, to adopt a new standard for disability benefits that will apply when the plan’s assets are distributed due to the termination, to add a lump sum distribution for employees and terminated vested participants who are not in payment status when Qualified Pension Plan assets are distributed due to the termination and to make certain other conforming amendments to the Qualified Pension Plan to comply with applicable laws that may be required by the IRS or may be deemed necessary or advisable to improve the administration of the Qualified Pension Plan or facilitate its termination and liquidation. We also intend to make contributions to the Trust Fund for the Qualified Pension Plan to ensure that there are sufficient assets to provide all Qualified Pension Plan benefits as of the anticipated distribution date. The financial impact of the plan termination will be recognized as a settlement of the Qualified Pension Plan liabilities. The settlement date and related financial impact have not yet been determined. We have historically had in place a noncontributory supplemental executive retirement plan (“SERP”), which prior to January 1, 2014 was a nonqualified defined benefit plan that essentially mirrored the Qualified Pension Plan, but provided benefits in excess of certain limits placed on our Qualified Pension Plan by the Internal Revenue Code. As noted above, we froze our Qualified Pension Plan effective as of December 31, 2009 and the SERP provided benefits to participants as if the Qualified Pension Plan had not been frozen. Because the Qualified Pension Plan was frozen and because new employees were not eligible to participate in the Qualified Pension Plan, our Board of Directors adopted amendments to the SERP on October 8, 2013 that were effective as of December 31, 2013 to simplify the SERP calculation. The SERP is funded through a Rabbi Trust with BMO Harris Bank N.A. Under the amended SERP, participants received an accrued lump-sum benefit as of December 31, 2013 which was credited to each participant’s account. Going forward, each eligible participant will receive a supplemental retirement benefit equal to the foregoing lump sum benefit, plus an annual benefit accrual equal to 8% of the participant’s base salary and cash bonus, plus annual credited interest on the participant’s account balance. All current participants are fully vested in their account balances with any new individuals participating in the SERP effective on or after January 1, 2014 being subject to a five year vesting period. The SERP, which is considered a defined benefit plan under applicable rules and regulations, will continue to be funded through use of a Rabbi Trust to hold investment assets to be used in part to fund any future required lump sum benefit payments to participants. The foregoing amendments to the SERP did not have a material effect on our financial statements. During fiscal 2013, SERP benefits of approximately $5.8 million were cash settled using Rabbi Trust assets and current cash balances. We incurred a settlement charge to operations of approximately $2.1 million pre-tax as a result of a requirement to expense a portion of the unrealized actuarial losses due to the settlement of the SERP obligation. The charge had no effect on our aggregate equity balance because the unrealized actuarial losses were previously recognized during prior periods in accumulated other comprehensive loss. Accordingly, the effect of the settlement charge on our retained earnings was offset by a corresponding reduction in our accumulated other comprehensive loss. The Rabbi Trust assets had a value of $2.3 million and $2.2 million at June 28, 2015 and June 29, 2014, respectively, and are included in Other Long-Term Assets in the accompanying Consolidated Balance Sheets. The projected benefit obligation under the amended SERP was $1.6 million at June 28, 2015 and $1.9 million at June 29, 2014, respectively. The SERP liabilities are included in the pension tables below. However, the Rabbi Trust assets are excluded from the tables as they do not qualify as plan assets. We also sponsor a postretirement health care plan for all U.S. associates hired prior to June 1, 2001. The expected cost of retiree health care benefits is recognized during the years the associates who are covered under the plan render service. Effective January 1, 2010, an amendment to the postretirement health care plan limited the benefit for future eligible retirees to $4,000 per plan year and the benefit is further subject to a maximum five year coverage period based on the associate’s retirement date and age. The postretirement health care plan is unfunded. Amounts included in accumulated other comprehensive loss, net of tax, at June 28, 2015, which have not yet been recognized in net periodic benefit cost were as follows (thousands of dollars): Pension and SERP Postretirement Prior service cost (credit) $ 21 $ (1,715 ) Net actuarial loss 17,160 3,171 $ 17,181 $ 1,456 Prior service cost (credit) and unrecognized net actuarial losses included in accumulated other comprehensive loss at June 28, 2015 which are expected to be recognized in net periodic benefit cost in fiscal 2016, net of tax, for the pension, SERP and postretirement plans are as follows (thousands of dollars): Pension and SERP Postretirement Prior service cost (credit) $ 7 $ (481 ) Net actuarial loss 1,539 388 $ 1,546 $ (93 ) The following tables summarize the pension, SERP and postretirement plans’ income and expense, funded status and actuarial assumptions for the years indicated (thousands of dollars). We use a June 30 measurement date for our pension and postretirement plans. Pension and SERP Benefits Postretirement Benefits Years Ended Years Ended June 28, 2015 June 29, 2014 June 30, 2013 June 28, 2015 June 29, 2014 June 30, 2013 COMPONENTS OF NET PERIODIC BENEFIT COST: Service cost $ 64 $ 217 $ 216 $ 14 $ 15 $ 15 Interest cost 4,173 4,407 4,447 114 157 181 Expected return on plan assets (6,174 ) (6,442 ) (6,126 ) — — — Amortization of prior service cost (credit) 11 12 12 (764 ) (764 ) (764 ) Amortization of unrecognized net loss 2,775 2,665 4,453 693 847 898 Settlement loss — — 2,144 — — — Net periodic benefit cost $ 849 $ 859 $ 5,146 $ 57 $ 255 $ 330 Pension and SERP Benefits Postretirement Benefits 2015 2014 2015 2014 WEIGHTED-AVERAGE ASSUMPTIONS Benefit Obligations: Discount rate 4.53 % 4.39 % 4.53 % 4.39 % Rate of compensation increases - SERP 3.0 % 3.0 % n/a n/a Net Periodic Benefit Cost: Discount rate 4.39 % 5.02 % 4.39 % 5.02 % Expected return on plan assets 6.5 % 7.5 % n/a n/a Rate of compensation increases - SERP 3.0 % 3.0 % n/a n/a CHANGE IN PROJECTED BENEFIT OBLIGATION: Benefit obligation at beginning of year $ 97,445 $ 89,915 $ 2,929 $ 3,540 Service cost 64 217 14 15 Interest cost 4,173 4,407 114 157 Plan Amendments - (3 ) — — Actuarial (gain) loss 2,118 7,030 (189 ) (112 ) Benefits paid (4,471 ) (4,121 ) (689 ) (671 ) Benefit obligation at end of year $ 99,329 $ 97,445 $ 2,179 $ 2,929 CHANGE IN PLAN ASSETS: Fair value of plan assets at beginning of year $ 104,340 $ 90,434 $ — $ — Actual return on plan assets 2,450 14,021 — — Employer contribution 3,153 4,006 689 671 Benefits paid (4,471 ) (4,121 ) (689 ) (671 ) Fair value of plan assets at end of year $ 105,472 $ 104,340 $ — $ — Funded status – prepaid (accrued) benefit obligations $ 6,143 $ 6,895 $ (2,179 ) $ (2,929 ) AMOUNTS RECOGNIZED IN CONSOLIDATED BALANCE SHEETS: Other long-term assets $ 7,733 $ 8,768 $ — $ — Accrued payroll and benefits (current liabilities) (259 ) (254 ) (522 ) (706 ) Accrued benefit obligations (long-term liabilities) (1,331 ) (1,619 ) (1,657 ) (2,223 ) Net amount recognized $ 6,143 $ 6,895 $ (2,179 ) $ (2,929 ) CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN OTHER COMPREHENSIVE INCOME: Net periodic benefit cost $ 849 $ 859 $ 57 $ 255 Net actuarial (gain) loss 5,843 (550 ) (189 ) (112 ) Prior service cost — (3 ) — — Amortization of prior service (cost) credits (11 ) (12 ) 764 764 Amortization of unrecognized net loss (2,775 ) (2,665 ) (693 ) (847 ) Total recognized in other comprehensive loss (income), before tax 3,057 (3,230 ) (118 ) (195 ) Total recognized in net periodic benefit cost and other comprehensive loss (income), before tax $ 3,906 $ (2,371 ) $ (61 ) $ 60 The pension benefits have a separately determined accumulated benefit obligation, which is the actuarial present value of benefits based on service rendered and current and past compensation levels. This differs from the projected benefit obligation in that it includes no assumptions about future compensation levels. The following table summarizes the accumulated benefit obligations and projected benefit obligations for the pension and SERP (thousands of dollars): Pension SERP June 28, 2015 June 29, 2014 June 28, 2015 June 29, 2014 Accumulated benefit obligation $ 97,739 $ 95,573 $ 1,245 $ 1,422 Projected benefit obligation $ 97,739 $ 95,573 $ 1,590 $ 1,872 For measurement purposes as it pertains to the estimated obligation associated with retirees prior to January 1, 2012, a 7.5 percent annual rate increase in the per capita cost of covered health care benefits was assumed for fiscal 2016; the rate was assumed to decrease gradually to 5 percent by the year 2022 and remain at that level thereafter. The health care cost trend assumption has a significant effect on the postretirement benefit amounts reported. A 1% change in the health care cost trend rates would have the following effects (thousands of dollars): 1% Increase 1% Decrease Effect on total of service and interest cost components in fiscal 2015 $ 2 $ (2 ) Effect on postretirement benefit obligation as of June 28, 2015 $ 24 $ (24 ) We employ a total return investment approach whereby a mix of equities and fixed income investments are used to maximize the long-term return of plan assets for a prudent level of risk. Risk tolerance is established through careful consideration of short and long-term plan liabilities, plan funded status and corporate financial condition. The investment portfolio primarily contains a diversified blend of equity and fixed income investments. Furthermore, equity investments are diversified across U.S. and non-U.S. stocks, as well as growth and value style managers, and small, mid and large market capitalizations. The investment portfolio does not include any real estate holdings, but has a small allocation to hedge funds. The investment policy of the plan prohibits investment in STRATTEC stock. Investment risk is measured and monitored on an ongoing basis through periodic investment portfolio reviews, annual liability measurements and periodic asset/liability studies. The pension plan weighted-average asset allocations by asset category were as follows for 2015 and 2014: Target Allocation June 28, 2015 June 29, 2014 Equity investments 35 % 35 % 43 % Fixed-income Investments 30 26 26 Cash 35 39 26 Other — — 5 Total 100 % 100 % 100 % The following is a summary, by asset category, of the fair value of pension plan assets at the June 30, 2015 and June 30, 2014 measurement dates (thousands of dollars): June 30, 2015 June 30, 2014 Asset Category Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents $ — $ 41,241 $ — $ 41,241 $ — $ 27,736 $ — $ 27,736 Equity Securities/Funds: Small Cap — — — — — — — — Mid Cap 10,766 — — 10,766 10,866 — — 10,866 Large Cap 17,965 — — 17,965 21,920 — — 21,920 International 8,483 — — 8,483 11,728 — — 11,728 Fixed Income Bond Funds/Bonds 5,041 21,925 — 26,966 4,884 21,771 — 26,655 Hedge Funds — — 51 51 — — 5,435 5,435 Total $ 42,255 $ 63,166 $ 51 $ 105,472 $ 49,398 $ 49,507 $ 5,435 $ 104,340 The following table summarizes the changes in Level 3 investments for the pension plan assets (thousands of dollars): Realized and Fair Value Net Purchases Unrealized Fair Value June 30, 2014 and Sales Gain, net June 30, 2015 Hedge Funds $ 5,435 $ (5,557 ) $ 173 $ 51 There were no transfers in or out of Level 3 investments during the year ended June 30, 2015. The expected long-term rate of return on U.S. pension plan assets used to calculate net periodic benefit cost was lowered to 5.45 percent for 2016 from 6.5 percent for 2015. The target asset allocation is 35 percent public equity and 65 percent fixed income/cash. The 6.5 percent is approximated by applying returns of 10 percent on public equity and 3 percent on fixed income to the target allocation. The actual historical returns are also relevant. Annualized returns for periods ended June 30, 2015 were 6.40 percent for 5 years, 4.67 percent for 10 years, 4.28 percent for 15 years, 5.80 percent for 20 years, 6.30 percent for 25 years and 7.29 percent for 30 years. We expect to contribute approximately $3 million to our qualified pension plan and $522,000 to our postretirement health care plan in fiscal 2016. We do not expect to make contributions to our SERP in fiscal 2016. The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid during the fiscal years noted below (thousands of dollars): Pension and SERP Benefits Postretirement Benefits 2016 $ 5,033 $ 522 2017 $ 5,042 $ 432 2018 $ 5,292 $ 361 2019 $ 5,540 $ 277 2020 $ 5,857 $ 202 2021-2025 $ 31,164 $ 514 All U.S. associates may participate in our 401(k) Plan. We contribute 100 percent up to the first 5 percent of eligible compensation that a participant contributes to the plan. Our contributions to the 401(k) Plan were as follows (thousands of dollars): 2015 2014 2013 Company Contributions $ 1,729 $ 1,605 $ 1,464 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Jun. 28, 2015 | |
Equity [Abstract] | |
Shareholders' Equity | SHAREHOLDERS’ EQUITY We have 12,000,000 shares of authorized common stock, par value $.01 per share, with 3,526,700 and 3,484,816 shares outstanding at June 28, 2015 and June 29, 2014, respectively. Holders of our common stock are entitled to one vote for each share on all matters voted on by shareholders. Our Board of Directors authorized a stock repurchase program to buy back up to 3,839,395 outstanding shares as of June 28, 2015. As of June 28, 2015, 3,655,322 shares have been repurchased under this program at a cost of approximately $136.4 million. No Shares were repurchased under this program during 2015 or 2014. |
Earnings Per Share (''EPS'')
Earnings Per Share (''EPS'') | 12 Months Ended |
Jun. 28, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share (''EPS'') | EARNINGS PER SHARE (“EPS”) Basic earnings per share is computed on the basis of the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed on the basis of the weighted average number of shares of common stock plus the potential dilutive common shares outstanding during the period using the treasury stock method. Potential dilutive common shares include outstanding stock options and unvested restricted stock awards. A reconciliation of the components of the basic and diluted per share computations follows (in thousands, except per share amounts): 2015 2014 2013 Net Income Attributable to STRATTEC $ 20,654 $ 16,424 $ 9,375 Less: Income Attributable to Participating Securities 258 296 171 Net Income Attributable to Common Shareholders $ 20,396 $ 16,128 $ 9,204 Weighted Average Shares of Common Stock Outstanding 3,515 3,428 3,327 Incremental Shares – Stock based Compensation 89 85 52 Diluted Weighted Average Shares of Common Stock Outstanding 3,604 3,513 3,379 Basic Earnings Per Share $ 5.80 $ 4.70 $ 2.77 Diluted Earnings Per Share $ 5.66 $ 4.59 $ 2.72 We consider unvested restricted stock that provides the holder with a non-forfeitable right to receive dividends to be a participating security. Options to purchase shares of common stock that were excluded from the calculation of diluted earnings per share because their inclusion would have been antidilutive were as follows: Number of Options Excluded June 29, 2015 10,000 June 29, 2014 — June 30, 2013 248,000 |
Stock Option and Purchase Plans
Stock Option and Purchase Plans | 12 Months Ended |
Jun. 28, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Option and Purchase Plans | STOCK OPTION AND PURCHASE PLANS A summary of stock option activity under our stock incentive plan was as follows: Weighted Average Weighted Average Remaining Contractual Aggregate Intrinsic Value Shares Exercise Price Term (in years) (in thousands) Balance at July 1, 2012 332,800 $ 28.19 Granted 40,000 $ 25.64 Exercised (55,845 ) $ 13.78 Expired (41,500 ) $ 52.68 Terminated (4,000 ) $ 17.59 Balance at June 30, 2013 271,455 $ 27.19 Granted 40,000 $ 38.71 Exercised (92,256 ) $ 29.08 Expired (22,500 ) $ 58.33 Terminated (11,457 ) $ 30.61 Balance at June 29, 2014 185,242 $ 24.73 Granted 10,000 $ 79.73 Exercised (22,746 ) $ 20.83 Terminated (8,589 ) $ 37.43 Balance at June 28, 2015 163,907 $ 27.97 5.8 $ 7,018 Exercisable as of: June 28, 2015 91,103 $ 19.86 4.1 $ 4,592 June 29, 2014 76,699 $ 16.91 4.3 $ 3,769 June 30, 2013 139,955 $ 29.95 4.4 $ 2,104 Available for grant as of June 28, 2015 253,989 Options granted at a price greater than the market value on the date of grant included in the table above were as follows: 2015 2014 2013 Shares 10,000 40,000 40,000 Exercise Price $ 79.73 $ 38.71 $ 25.64 A summary of restricted stock activity under our stock incentive plan was as follows: Weighted Average Grant Date Shares Fair Value Nonvested Balance at July 1, 2012 49,400 $ 20.45 Granted 24,150 $ 23.69 Vested (10,400 ) $ 15.44 Forfeited (1,900 ) $ 25.49 Nonvested Balance at June 30, 2013 61,250 $ 22.42 Granted 24,950 $ 37.29 Vested (19,350 ) $ 20.40 Forfeited (3,250 ) $ 27.88 Nonvested Balance at June 29, 2014 63,600 $ 28.64 Granted 25,000 $ 70.90 Vested (18,100 ) $ 23.02 Forfeited (4,150 ) $ 45.71 Nonvested Balance at June 28, 2015 66,350 $ 45.03 We have an Employee Stock Purchase Plan to provide substantially all U.S. full-time associates an opportunity to purchase shares of STRATTEC common stock through payroll deductions. A participant may contribute a maximum of $5,200 per calendar year to the plan. On the last day of each month or if such date is not a trading day on the most recent previous trading day, participant account balances are used to purchase shares of our common stock at the average of the highest and lowest reported sales prices of a share of STRATTEC common stock on the NASDAQ Global Market. A total of 100,000 shares may be issued under the plan. Shares issued from treasury stock under the plan totaled 1,038 at an average price of $76.06 during 2015, 1,181 at an average price of $49.53 during 2014 and 2,000 at an average price of $26.88 during 2013. A total of 69,132 shares remain available for purchase under the plan as of June 28, 2015. |
Export Sales
Export Sales | 12 Months Ended |
Jun. 28, 2015 | |
Segment Reporting [Abstract] | |
Export Sales | EXPORT SALES Total export sales, sales from the United States to locations outside of the United States, and countries for which customer sales accounted for ten percent or more of total net sales are summarized as follows (thousands of dollars and percent of total net sales): 2015 2014 2013 Net Sales % Net Sales % Net Sales % Export Sales $ 141,584 34 % $ 119,099 34 % $ 111,159 37 % Export Sales into Canada $ 60,987 15 % $ 76,736 22 % $ 69,221 23 % |
Product Sales
Product Sales | 12 Months Ended |
Jun. 28, 2015 | |
Segment Reporting [Abstract] | |
Product Sales | PRODUCT SALES Sales by product group were as follows (thousands of dollars and percent of total net sales): 2015 2014 2013 Net Sales % Net Sales % Net Sales % Keys & Locksets $ 114,287 28 % $ 115,379 33 % $ 102,157 34 % Aftermarket & OE Service 78,717 19 % 49,586 14 % 36,487 12 % Power Access 68,078 16 % 60,141 17 % 56,443 19 % Door Handles & Exterior Trim 60,864 15 % 48,034 14 % 37,225 13 % Driver Controls 57,894 14 % 53,729 16 % 51,032 17 % Latches 24,320 6 % 14,664 4 % 9,385 3 % Other 7,315 2 % 6,886 2 % 5,450 2 % $ 411,475 100 % $ 348,419 100 % $ 298,179 100 % |
Sales and Receivable Concentrat
Sales and Receivable Concentration | 12 Months Ended |
Jun. 28, 2015 | |
Segment Reporting Information Receivable [Abstract] | |
Sales and Receivable Concentration | SALES AND RECEIVABLE CONCENTRATION Sales to our largest customers were as follows (thousands of dollars and percent of total net sales): 2015 2014 2013 Net Sales % Net Sales % Net Sales % Fiat Chrysler Automobiles $ 116,914 28 % $ 117,502 34 % $ 95,476 32 % General Motors Company 105,809 26 % 79,526 23 % 56,972 19 % Ford Motor Company 45,415 11 % 46,619 13 % 44,773 15 % $ 268,138 65 % $ 243,647 70 % $ 197,221 66 % Receivables from our largest customers were as follows (thousands of dollars and percent of gross receivables): June 28, 2015 June 29, 2014 Receivables % Receivables % Fiat Chrysler Automobiles $ 17,060 29 % $ 22,202 32 % General Motors Company 8,751 15 % 20,717 30 % Ford Motor Company 7,340 12 % 6,358 9 % $ 33,151 56 % $ 49,277 71 % |
Organization and Summary of S22
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 28, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Principles of Consolidation and Presentation | Principles of Consolidation and Presentation: The accompanying consolidated financial statements include the accounts of STRATTEC SECURITY CORPORATION, its wholly owned Mexican subsidiary, and its majority owned subsidiaries. Equity investments for which STRATTEC exercises significant influence but does not control and is not the primary beneficiary are accounted for using the equity method. All significant inter-company transactions and balances have been eliminated. |
New Accounting Standards | New Accounting Standards: In August 2014, the FASB issued an update to the accounting guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. This accounting update is effective for annual and interim periods beginning on or after December 15, 2016, with early adoption permitted. We do not expect that the adoption of this pronouncement will have a material impact on our consolidated financial statements. In May 2014, the FASB issued an update to the accounting guidance for the recognition of revenue arising from contracts with customers. The update supersedes most current revenue recognition guidance and outlines a single comprehensive model for revenue recognition based on the principle that an entity should recognize revenue in an amount that reflects the expected consideration to be received in the exchange of goods and services. The guidance update also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. The guidance update is effective for annual reporting periods beginning after December 15, 2017 and becomes effective for us at the beginning of our 2019 fiscal year. We are currently assessing the impact that this guidance will have on our consolidated financial statements. In February 2015, the FASB issued an update to the accounting guidance that amends current consolidation guidance by modifying the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities, eliminating the presumption that a general partner should consolidate a limited partnership, and affects the consolidation analysis of reporting entities that are involved with variable interest entities. The update is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. We do not expect that the adoption of this pronouncement will have a material impact on our consolidated financial statements. |
Fiscal Year | Fiscal Year: Our fiscal year ends on the Sunday nearest June 30. The years ended June 28, 2015, June 29, 2014 and June 30, 2013 are each comprised of 52 weeks |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses for the periods presented. These estimates and assumptions could also affect the disclosure of contingencies. Actual results and outcomes may differ from management’s estimates and assumptions. |
Cash and Cash Equivalents | Cash and Cash Equivalents: Cash and cash equivalents include all short-term investments with an original maturity of three months or less due to the short-term nature of the instruments. Excess cash balances are placed in short-term commercial paper. As of June 28, 2015, $14.8 million of our cash and cash equivalents balance held by our foreign subsidiaries in Mexico was deemed to be permanently reinvested. |
Derivatives Instruments | Derivative Instruments: We own and operate manufacturing operations in Mexico. As a result, a portion of our manufacturing costs are incurred in Mexican pesos, which causes our earnings and cash flows to fluctuate as a result of changes in the U.S. dollar / Mexican peso exchange rate. During fiscal 2013, we had agreements with Bank of Montreal that provided for two weekly Mexican peso currency option contracts to cover a portion of our weekly estimated peso denominated operating costs. The contracts with Bank of Montreal expired on June 28, 2013. The two weekly option contracts were for equivalent notional amounts. The contracts provided for the purchase of Mexican pesos at an average U.S. dollar / Mexican peso exchange rate of 12.40 if the spot rate at the weekly expiry date was below an average of 12.40 or for the purchase of Mexican pesos at an average U.S. dollar / Mexican peso exchange rate of 13.40 if the spot rate at the weekly expiry date was above an average of 13.40. Our objective in entering into these currency option contracts was to minimize our earnings volatility resulting from changes in exchange rates affecting the U.S. dollar cost of our Mexican operations. The Mexican peso option contracts were not used for speculative purposes and were not designated as hedges. As a result, all currency option contracts were recognized in our accompanying consolidated financial statements at fair value and changes in the fair value of the currency option contracts were reported in current earnings as part of Other Income, net. The premiums paid and received under the weekly Mexican peso currency option contracts netted to zero. As a result, premiums related to the contracts did not impact our earnings. No Mexican peso currency option contracts were in effect during fiscal 2015 or 2014 and none were outstanding as of June 28, 2015, June 29, 2014 or June 30, 2013. The pre-tax effects of the Mexican peso option contracts on the accompanying Consolidated Statements of Income and Comprehensive Income consisted of the following (thousands of dollars): Other Income, net June 28, 2015 June 29, 2014 June 30, 2013 Not Designated as Hedging Instruments: Realized gain $ — $ — $ 27 Realized (loss) $ — $ — $ (39 ) Unrealized gain $ — $ — $ 395 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments: The fair value of our cash and cash equivalents, accounts receivable, accounts payable, and borrowings under credit facility approximated book value as of June 28, 2015 and June 29, 2014. Fair Value is defined as the exchange price that would be received for an asset or paid for a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. There is an established fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable. Level 1 – Quoted prices in active markets for identical assets or liabilities. These are typically obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 – Inputs, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly. These are typically obtained from readily-available pricing sources for comparable instruments. Level 3 – Unobservable inputs, where there is little or no market activity for the asset or liability. These inputs reflect the reporting entity’s own assumptions of the data that market participants would use in pricing the asset or liability, based on the best information available in the circumstances. The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis as of June 28, 2015 and June 29, 2014 (thousands of dollars): June 28, 2015 June 29, 2014 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Rabbi Trust Assets: Stock Index Funds: Small Cap $ 372 $ — $ — $ 372 $ 346 $ — $ — $ 346 Mid Cap 365 — — 365 226 — — 226 Large Cap 490 — — 490 448 — — 448 International 438 — — 438 446 — — 446 Fixed Income Funds 679 — — 679 754 — — 754 Cash and Cash Equivalents — — — — — 28 — 28 Total assets at fair value $ 2,344 $ — $ — $ 2,344 $ 2,220 $ 28 $ — $ 2,248 The Rabbi Trust assets fund our supplemental executive retirement plan and are included in Other Long-Term Assets in the accompanying Consolidated Balance Sheets. There were no transfers between Level 1 and Level 2 assets during 2015 or 2014. |
Receivables | Receivables: Receivables consist primarily of trade receivables due from Original Equipment Manufacturers in the automotive industry and locksmith distributors relating to our service and aftermarket sales. We evaluate the collectability of receivables based on a number of factors. An allowance for doubtful accounts is recorded for significant past due receivable balances based on a review of the past due items, general economic conditions and the industry as a whole. Changes in the allowance for doubtful accounts were as follows (thousands of dollars): Balance, Provision Net Balance, Year ended June 28, 2015 $ 500 $ — $ — $ 500 Year ended June 29, 2014 $ 500 $ — $ — $ 500 Year ended June 30, 2013 $ 500 $ — $ — $ 500 |
Inventories | Inventories: Inventories are comprised of material, direct labor and manufacturing overhead, and are stated at the lower of cost or market using the first-in, first-out (“FIFO”) cost method of accounting. Inventories consisted of the following (thousands of dollars): June 28, 2015 June 29, 2014 Finished products $ 11,358 $ 9,034 Work in process 7,746 7,386 Purchased materials 17,982 16,232 37,086 32,652 Excess and obsolete reserve (2,300 ) (2,150 ) Inventories, net $ 34,786 $ 30,502 We record a reserve for excess and obsolete inventory based on historical and estimated future demand and market conditions. The reserve level is determined by comparing inventory levels of individual materials and parts to historical usage and estimated future sales by analyzing the age of the inventory in order to identify specific materials and parts that are unlikely to be sold. Technical obsolescence and other known factors are also considered in evaluating the reserve level. The activity related to the excess and obsolete inventory reserve was as follows (thousands of dollars): Balance, Provision Amounts Balance, Year ended June 28, 2015 $ 2,150 $ 655 $ 505 $ 2,300 Year ended June 29, 2014 $ 1,500 $ 1,122 $ 472 $ 2,150 Year ended June 30, 2013 $ 1,300 $ 511 $ 311 $ 1,500 |
Customer Tooling in Progress | Customer Tooling in Progress: We incur costs related to tooling used in component production and assembly. Costs for development of certain tooling, which will be directly reimbursed by the customer whose parts are produced from the tool, are accumulated on the balance sheet and are then billed to the customer. The accumulated costs are billed upon formal acceptance by the customer of products produced with the individual tool. Other tooling costs are not directly reimbursed by the customer. These costs are capitalized and amortized over the life of the related product based on the fact that the related tool will be used over the life of the supply arrangement. To the extent that estimated costs exceed expected reimbursement from the customer we will recognize a loss. |
Repair and Maintenance Supply Parts | Repair and Maintenance Supply Parts: We maintain an inventory of repair and maintenance supply parts in support of operations. This inventory includes critical repair parts for all production equipment as well as general maintenance items. The inventory of critical repair parts is required to avoid disruptions in our customers’ just-in-time production schedules due to a lack of spare parts when equipment break-downs occur. All required critical repair parts are on hand when the related production equipment is placed in service and maintained to satisfy the customer model life production and service requirements, which may be 12 to 15 years. As repair parts are used, additional repair parts are purchased to maintain a minimum level of spare parts inventory. Depending on maintenance requirements during the life of the equipment, excess quantities of repair parts arise. Excess quantities are kept on hand and are not disposed of until the equipment is no longer in service. A repair and maintenance supply parts reserve is maintained to recognize the normal adjustment of inventory for obsolete and slow moving supply and maintenance parts. The adequacy of the reserve is reviewed periodically in relation to the repair parts inventory balances. The gross balance of the repair and maintenance supply parts inventory was approximately $2.9 million at June 28, 2015 and $2.3 million at June 29, 2014. The repair and maintenance supply parts inventory balance is included in Other Current Assets in the accompanying Consolidated Balance Sheets. The activity related to the repair and maintenance supply parts reserve was as follows (thousands of dollars): Balance, Provision Amounts Balance, Year ended June 28, 2015 $ 585 $ 348 $ 313 $ 620 Year ended June 29, 2014 $ 500 $ 102 $ 17 $ 585 Year ended June 30, 2013 $ 500 $ 195 $ 195 $ 500 |
Intangibles | Intangibles: Intangible assets that have defined useful lives were acquired in the purchase of the power sliding door, lift gate and deck lid system access control products from Delphi Corporation in 2009 and consist of patents, engineering drawings and software. The intangible assets balance is included in Other Long-term Assets in the accompanying Consolidated Balance Sheets. The carrying value and accumulated amortization were as follows (thousands of dollars): June 28, 2015 June 29, 2014 Patents, engineering drawings and software $ 890 $ 890 Less: accumulated amortization (651 ) (552 ) $ 239 $ 338 The remaining useful life of the intangible assets in the table above is approximately 2.4 years. Intangible amortization expense was $99,000 for each of the years ended June 28, 2015, June 29, 2014 and June 30, 2013. Intangible amortization expense is expected to be $99,000 in each of fiscal years 2016 and 2017, $41,000 in fiscal 2018 and zero thereafter. |
Property, Plant and Equipment | Property, Plant and Equipment: Property, plant and equipment are stated at cost. Property, plant and equipment are depreciated on a straight-line basis over the estimated useful lives of the assets as follows: Classification Expected Land improvements 20 years Buildings and improvements 15 to 35 years Machinery and equipment 3 to 10 years Property, plant and equipment consisted of the following (thousands of dollars): June 28, 2015 June 29, 2014 Land and improvements $ 4,246 $ 3,269 Buildings and improvements 25,954 21,423 Machinery and equipment 164,367 148,025 194,567 172,717 Less: accumulated depreciation (123,441 ) (116,936 ) $ 71,126 $ 55,781 Depreciation expense was as follows for the periods indicated (thousands of dollars): Depreciation 2015 $ 8,716 2014 $ 8,168 2013 $ 7,391 The gross and net book value of property, plant and equipment located outside of the United States, primarily in Mexico, were as follows (thousands of dollars): June 28, 2015 June 29, 2014 Gross book value $ 87,876 $ 77,445 Net book value $ 38,138 $ 29,804 Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net undiscounted cash flows expected to be generated by the asset. If an asset is considered to be impaired, the impairment recognized is measured by the excess of the carrying amount of the asset over the fair value of the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair value, less estimated costs to sell. There were no impairments recorded in the years ended June 28, 2015, June 29, 2014 or June 30, 2013. Expenditures for repairs and maintenance are charged to expense as incurred. Expenditures for major renewals and betterments, which significantly extend the useful lives of existing plant and equipment, are capitalized and depreciated. Upon retirement or disposition of plant and equipment, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in income. |
Supplier Concentrations | Supplier Concentrations: The following inventory purchases were made from major suppliers during each fiscal year noted : Fiscal Year Percentage of Number of 2015 27 % 5 2014 38 % 7 2013 38 % 7 We have long-term contracts or arrangements with most of our suppliers to guarantee the availability of raw materials and component parts. |
Labor Concentrations | Labor Concentrations: We had approximately 3,420 full-time associates of which approximately 260 or 7.6 percent were represented by a labor union at June 28, 2015. The associates represented by a labor union account for all production associates at our Milwaukee facility. The current contract with the unionized associates is effective through September 17, 2018. |
Revenue Recognition | Revenue Recognition: Revenue is recognized upon the shipment of products, which is when title passes, payment terms are final, we have no remaining obligations and the customer is required to pay. Revenue is recognized net of estimated returns and discounts, which is recognized as a deduction from revenue at the time of the shipment. Price concessions agreed to with customers are recorded as a reduction of sales at the later of when revenue related to the specific sales is recognized or the date at which the price concessions are offered and committed to. |
Research and Development Costs | Research and Development Costs: Expenditures relating to the development of new products and processes, including significant improvements and refinements to existing products, are expensed as incurred. Research and development expenditures were approximately $280,000 in 2015, $700,000 in 2014 and $1.3 million in 2013. |
Other Income, Net | Other Income, Net: Net other income included in the accompanying Consolidated Statements of Income and Comprehensive Income primarily included foreign currency transaction gains and losses, realized and unrealized gains and losses on our Mexican Peso option contracts, and Rabbi Trust gains. Foreign currency transaction gains and losses were the result of foreign currency transactions entered into by our Mexican subsidiaries and fluctuations in foreign currency cash balances. We entered into the Mexican Peso currency option contracts during fiscal 2013 to minimize earnings volatility resulting from changes in exchange rates affecting the U.S. dollar cost of our Mexican operations. The Rabbi Trust assets fund our amended and restated supplemental executive retirement plan. The investments held in the Trust are considered trading securities. The impact of these items for the periods presented was as follows (thousands of dollars): Years Ended June 28, 2015 June 29, 2014 June 30, 2013 Foreign currency transaction gain (loss) $ 3,075 $ (36 ) $ (395 ) Rabbi Trust gain 96 211 164 Unrealized gain on Mexican peso option contracts — — 395 Realized loss on Mexican peso option contracts — — (12 ) Other 310 97 177 $ 3,481 $ 272 $ 329 |
Self Insurance Plans | Self Insurance Plans: We have self-insured medical and dental plans covering all eligible U.S. associates. The claims handling process for the self-insured plans are managed by a third-party administrator. Stop-loss insurance coverage limits our liability on a per individual per calendar year basis. The per individual per calendar year stop-loss limit was $150,000 in each calendar year 2012 through 2015. Effective January 1, 2011, under Health Care Reform, there is no lifetime maximum for overall benefits. The expected ultimate cost for claims incurred under the self-insured medical and dental plans as of the applicable balance sheet date is not discounted and is recognized as an expense on our Consolidated Statements of Income and Comprehensive Income. The expected ultimate cost of claims is estimated based upon the aggregate liability for reported claims and an estimated liability for claims incurred but not reported, which is based on an analysis of historical data, current health care trends and information available from the third-party administrator. The expected ultimate cost for claims incurred under the self-insured medical and dental plans that has not been paid as of the applicable balance sheet date is included in Accrued Liabilities: Payroll and Benefits in our accompanying Consolidated Balance Sheets. Changes in the balance sheet amounts for self-insured plans were as follows (thousands of dollars): Balance, Provision Payments Balance, Year ended June 28, 2015 $ 420 $ 4,756 $ 4,756 $ 420 Year ended June 29, 2014 $ 420 $ 4,600 $ 4,600 $ 420 Year ended June 30, 2013 $ 320 $ 3,948 $ 3,848 $ 420 |
Warranty Reserve | Warranty Reserve: We have a warranty liability recorded related to our known and potential exposure to warranty claims in the event our products fail to perform as expected, and in the event we may be required to participate in the repair costs incurred by our customers for such products. The recorded warranty liability balance involves judgment and estimates. Our liability estimate is based on an analysis of historical warranty data as well as current trends and information, including our customers’ recent extension and/or expansion of their warranty programs. In recent fiscal periods, our largest customers have extended their warranty protection for their vehicles and have since demanded higher warranty cost sharing arrangements from their suppliers in their terms and conditions to purchase, including from STRATTEC. The 2015 warranty provision included various known or expected customer warranty issues and estimated future warranty costs to be incurred as of June 2015 for which amounts were reasonably estimable. As additional information becomes available, actual results may differ from recorded estimates, which may require us to adjust the amount of our warranty provision. The 2013 warranty provision credit included the impact of favorable adjustments for warranty claims settled during that year. Changes in the warranty reserve were as follows (thousands of dollars): Balance, Provision Payments Balance, Year ended June 28, 2015 $ 3,462 $ 8,975 $ 602 $ 11,835 Year ended June 29, 2014 $ 2,500 $ 1,153 $ 191 $ 3,462 Year ended June 30, 2013 $ 4,958 $(404 ) $ 2,054 $ 2,500 |
Foreign Currency Translation | Foreign Currency Translation: The financial statements of our foreign subsidiaries and equity investees are translated into U.S. dollars using the exchange rate at each balance sheet date for assets and liabilities and the average exchange rate for each applicable period for sales, costs and expenses. Foreign currency translation adjustments are included as a component of other accumulated comprehensive loss. Foreign currency transaction gains and losses are included in other income, net in the accompanying Consolidated Statements of Income and Comprehensive Income. |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss: Accumulated other comprehensive loss was comprised of the following (thousands of dollars): June 28, 2015 June 29, 2014 June 30, 2013 Unrecognized pension and postretirement benefit liabilities, net of tax $ 18,638 $ 16,787 $ 18,944 Foreign currency translation 8,221 3,411 3,268 $ 26,859 $ 20,198 $ 22,212 Deferred taxes have not been provided for the foreign currency translation adjustments. The following tables summarize the changes in accumulated other comprehensive loss (“AOCL”) for the years ended June 28, 2015 and June 29, 2014 (thousands of dollars): Year Ended June 28, 2015 Foreign Retirement Total Balance June 29, 2014 $ 3,411 $ 16,787 $ 20,198 Other comprehensive loss before reclassifications 5,133 5,654 10,787 Income Tax — (2,092 ) (2,092 ) Net other comprehensive loss before reclassifications 5,133 3,562 8,695 Reclassifications: Prior service credits (A) — 753 753 Actuarial gains (A) — (3,468 ) (3,468 ) Total reclassifications before tax — (2,715 ) (2,715 ) Income Tax — 1,004 1,004 Net reclassifications — (1,711 ) (1,711 ) Other comprehensive loss 5,133 1,851 6,984 Other comprehensive loss attributable To Non-Controlling interest (323 ) — (323 ) Balance June 28, 2015 $ 8,221 $ 18,638 $ 26,859 Year Ended June 29, 2014 Foreign Retirement Total Balance June 30, 2013 $ 3,268 $ 18,944 $ 22,212 Other comprehensive loss (income) before reclassifications 140 (665 ) (525 ) Income Tax — 246 246 Net other comprehensive loss (income) before reclassifications 140 (419 ) (279 ) Reclassifications: Prior service credits (A) — 752 752 Actuarial gains (A) — (3,512 ) (3,512 ) Total reclassifications before tax — (2,760 ) (2,760 ) Income Tax — 1,022 1,022 Net reclassifications — (1,738 ) (1,738 ) Other comprehensive loss (income) 140 (2,157 ) (2,017 ) Other comprehensive income attributable to non-Controlling interest 3 — 3 Balance June 29, 2014 $ 3,411 $ 16,787 $ 20,198 (A) Amounts reclassified are included in the computation of net periodic benefit cost, which is included in Cost of Goods Sold and Engineering, Selling and Administrative expenses in the accompanying Consolidated Statements of Income and Comprehensive Income. See the Note Retirement Plans and Postretirement Costs in these notes to financial statements. |
Accounting For Stock-Based Compensation | Accounting For Stock-Based Compensation: We maintain an omnibus stock incentive plan. This plan provides for the granting of stock options, shares of restricted stock and stock appreciation rights. The Board of Directors has designated 1,850,000 shares of common stock available for the grant of awards under the plan. Remaining shares available to be granted under the plan as of June 28, 2015 were 253,989. Awards that expire or are cancelled without delivery of shares become available for re-issuance under the plan. We issue new shares of common stock to satisfy stock option exercises. Nonqualified and incentive stock options and shares of restricted stock have been granted to our officers, outside directors and specified associates under the stock incentive plan. Stock options granted under the plan may not be issued with an exercise price less than the fair market value of the common stock on the date the option is granted. Stock options become exercisable as determined at the date of grant by the Compensation Committee of our Board of Directors. The options expire 5 to 10 years after the grant date unless an earlier expiration date is set at the time of grant. The options vest 1 to 4 years after the date of grant. Shares of restricted stock granted under the plan are subject to vesting criteria determined by the Compensation Committee of our Board of Directors at the time the shares are granted and have a minimum vesting period of three years from the date of grant. Restricted shares granted prior to August 2014 have voting and dividend rights, regardless of whether the shares are vested or unvested. Restricted shares granted during August 2014 and thereafter have voting rights, regardless of whether the shares are vested or unvested, but only have the right to receive cash dividends after such shares become vested. The restricted stock grants issued to date vest 3 years after the date of grant. The fair value of each stock option grant was estimated as of the date of grant using the Black-Scholes pricing model. The resulting compensation cost for fixed awards with graded vesting schedules is amortized on a straight-line basis over the vesting period for the entire award. The expected term of awards granted is determined based on historical experience with similar awards, giving consideration to the contractual terms and vesting schedules. The expected volatility is determined based on our historical stock prices over the most recent period commensurate with the expected term of the award. The risk-free interest rate is based on U.S. Treasury zero-coupon issues with a remaining term commensurate with the expected term of the award. Expected pre-vesting option forfeitures are based primarily on historical data. The fair value of each restricted stock grant was based on the market price of the underlying common stock as of the date of grant. The resulting compensation cost is amortized on a straight line basis over the vesting period. We record stock based compensation only for those awards that are expected to vest. Unrecognized compensation cost as of June 28, 2015 related to stock options and restricted stock granted under the plan was as follows (thousands of dollars): Compensation Weighted Stock options granted $ 457 0.8 Restricted Stock granted $ 1,325 1.0 Unrecognized compensation cost will be adjusted for any future changes in estimated and actual forfeitures. Cash received from stock option exercises and the related income tax benefit were as follows (thousands of dollars): Fiscal Year Cash Received Income Tax 2015 $ 474 $ 458 2014 $ 2,683 $ 729 2013 $ 770 $ 421 The intrinsic value of stock options exercised and the fair value of options vested were as follows (thousands of dollars): Years Ended June 28, 2015 June 29, 2014 June 30, 2013 Intrinsic value of options exercised $ 1,375 $ 2,134 $ 1,110 Fair value of stock options vested $ 382 $ 444 $ 266 The grant date fair values and assumptions used to determine compensation expense were as follows: Options Granted During 2015 2014 2013 Weighted average grant date fair value: Options issued at grant date market value n/a n/a n/a Options issued above grant date market value $ 34.93 $ 17.58 $ 10.48 Assumptions: Risk free interest rates 1.90 % 2.06 % 0.95 % Expected volatility 57.83 % 58.75 % 57.58 % Expected dividend yield 0.62 % 1.11 % 1.69 % Expected term (in years) 6.0 6.0 6.0 The range of options outstanding as of June 28, 2015 was as follows: Number of Weighted Weighted $10.92-$18.49 48,914/48,914 $15.30/$15.30 4.2 $22.47-$38.71 105,983/42,189 $29.41/$25.14 6.2 $79.73 9,010/- $79.73/$- 9.1 $27.97/$19.86 |
Income Taxes | Income Taxes: Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases and operating loss carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and operating loss carry-forwards are expected to be recovered, settled or utilized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. We recognize the benefit of an income tax position only if it is more likely than not (greater than 50 percent) that the tax position will be sustained upon tax examination, based solely on the technical merits of the tax position. Otherwise, no benefit is recognized. The tax benefits recognized are measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement. Additionally, we accrue interest and related penalties, if applicable, on all tax exposures for which reserves have been established consistent with jurisdictional tax laws. Interest and penalties on uncertain tax positions are classified in the Provision for Income Taxes in the accompanying Consolidated Statements of Income and Comprehensive Income |
Organization and Summary of S23
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 28, 2015 | |
Pre-Tax Effects of the Peso Option Contracts | The pre-tax effects of the Mexican peso option contracts on the accompanying Consolidated Statements of Income and Comprehensive Income consisted of the following (thousands of dollars): Other Income, net June 28, 2015 June 29, 2014 June 30, 2013 Not Designated as Hedging Instruments: Realized gain $ — $ — $ 27 Realized (loss) $ — $ — $ (39 ) Unrealized gain $ — $ — $ 395 |
Summary of Financial Assets and Liabilities at Fair Value on Recurring Basis | The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis as of June 28, 2015 and June 29, 2014 (thousands of dollars) June 28, 2015 June 29, 2014 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Rabbi Trust Assets: Stock Index Funds: Small Cap $ 372 $ — $ — $ 372 $ 346 $ — $ — $ 346 Mid Cap 365 — — 365 226 — — 226 Large Cap 490 — — 490 448 — — 448 International 438 — — 438 446 — — 446 Fixed Income Funds 679 — — 679 754 — — 754 Cash and Cash Equivalents — — — — — 28 — 28 Total assets at fair value $ 2,344 $ — $ — $ 2,344 $ 2,220 $ 28 $ — $ 2,248 |
Changes in the Allowance for Doubtful Accounts | Changes in the allowance for doubtful accounts were as follows (thousands of dollars) Balance, Provision Net Balance, Year ended June 28, 2015 $ 500 $ — $ — $ 500 Year ended June 29, 2014 $ 500 $ — $ — $ 500 Year ended June 30, 2013 $ 500 $ — $ — $ 500 |
Inventories | Inventories: Inventories are comprised of material, direct labor and manufacturing overhead, and are stated at the lower of cost or market using the first-in, first-out (“FIFO”) cost method of accounting. Inventories consisted of the following (thousands of dollars): June 28, 2015 June 29, 2014 Finished products $ 11,358 $ 9,034 Work in process 7,746 7,386 Purchased materials 17,982 16,232 37,086 32,652 Excess and obsolete reserve (2,300 ) (2,150 ) Inventories, net $ 34,786 $ 30,502 |
Activity Related to the Excess and Obsolete Inventory Reserve | The activity related to the excess and obsolete inventory reserve was as follows (thousands of dollars) Balance, Provision Amounts Balance, Year ended June 28, 2015 $ 2,150 $ 655 $ 505 $ 2,300 Year ended June 29, 2014 $ 1,500 $ 1,122 $ 472 $ 2,150 Year ended June 30, 2013 $ 1,300 $ 511 $ 311 $ 1,500 |
Schedule Of Activity Related To Repair And Maintenance Supply Parts Reserve | The activity related to the repair and maintenance supply parts reserve was as follows (thousands of dollars) Balance, Provision Amounts Balance, Year ended June 28, 2015 $ 585 $ 348 $ 313 $ 620 Year ended June 29, 2014 $ 500 $ 102 $ 17 $ 585 Year ended June 30, 2013 $ 500 $ 195 $ 195 $ 500 |
Intangible Assets Carrying Value and Accumulated Amortization | The carrying value and accumulated amortization were as follows (thousands of dollars) June 28, 2015 June 29, 2014 Patents, engineering drawings and software $ 890 $ 890 Less: accumulated amortization (651 ) (552 ) $ 239 $ 338 |
Property, Plant and Equipment, Useful Lives of Assets | Property, plant and equipment are stated at cost. Property, plant and equipment are depreciated on a straight-line basis over the estimated useful lives of the assets as follows: Classification Expected Land improvements 20 years Buildings and improvements 15 to 35 years Machinery and equipment 3 to 10 years |
Property, Plant and Equipment | Property, plant and equipment consisted of the following (thousands of dollars): June 28, 2015 June 29, 2014 Land and improvements $ 4,246 $ 3,269 Buildings and improvements 25,954 21,423 Machinery and equipment 164,367 148,025 194,567 172,717 Less: accumulated depreciation (123,441 ) (116,936 ) $ 71,126 $ 55,781 |
Schedule of Depreciation Expenses | Depreciation expense was as follows for the periods indicated (thousands of dollars): Depreciation 2015 $ 8,716 2014 $ 8,168 2013 $ 7,391 |
Inventory Purchase from Major Suppliers | Supplier Concentrations: The following inventory purchases were made from major suppliers during each fiscal year noted Fiscal Year Percentage of Number of 2015 27 % 5 2014 38 % 7 2013 38 % 7 |
Summary of Other Income Net | The impact of these items for the periods presented was as follows (thousands of dollars): Years Ended June 28, 2015 June 29, 2014 June 30, 2013 Foreign currency transaction gain (loss) $ 3,075 $ (36 ) $ (395 ) Rabbi Trust gain 96 211 164 Unrealized gain on Mexican peso option contracts — — 395 Realized loss on Mexican peso option contracts — — (12 ) Other 310 97 177 $ 3,481 $ 272 $ 329 |
Changes In Balance Sheet Amounts Under Self Insured Plans | Changes in the balance sheet amounts for self-insured plans were as follows (thousands of dollars) Balance, Provision Payments Balance, Year ended June 28, 2015 $ 420 $ 4,756 $ 4,756 $ 420 Year ended June 29, 2014 $ 420 $ 4,600 $ 4,600 $ 420 Year ended June 30, 2013 $ 320 $ 3,948 $ 3,848 $ 420 |
Changes in Warranty Reserve | Changes in the warranty reserve were as follows (thousands of dollars): Balance, Provision Payments Balance, Year ended June 28, 2015 $ 3,462 $ 8,975 $ 602 $ 11,835 Year ended June 29, 2014 $ 2,500 $ 1,153 $ 191 $ 3,462 Year ended June 30, 2013 $ 4,958 $(404 ) $ 2,054 $ 2,500 |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss: Accumulated other comprehensive loss was comprised of the following (thousands of dollars): June 28, 2015 June 29, 2014 June 30, 2013 Unrecognized pension and postretirement benefit liabilities, net of tax $ 18,638 $ 16,787 $ 18,944 Foreign currency translation 8,221 3,411 3,268 $ 26,859 $ 20,198 $ 22,212 |
Summary of Changes in Accumulated Other Comprehensive Loss | The following tables summarize the changes in accumulated other comprehensive loss (“AOCL”) for the years ended June 28, 2015 and June 29, 2014 (thousands of dollars): Year Ended June 28, 2015 Foreign Retirement Total Balance June 29, 2014 $ 3,411 $ 16,787 $ 20,198 Other comprehensive loss before reclassifications 5,133 5,654 10,787 Income Tax — (2,092 ) (2,092 ) Net other comprehensive loss before reclassifications 5,133 3,562 8,695 Reclassifications: Prior service credits (A) — 753 753 Actuarial gains (A) — (3,468 ) (3,468 ) Total reclassifications before tax — (2,715 ) (2,715 ) Income Tax — 1,004 1,004 Net reclassifications — (1,711 ) (1,711 ) Other comprehensive loss 5,133 1,851 6,984 Other comprehensive loss attributable To Non-Controlling interest (323 ) — (323 ) Balance June 28, 2015 $ 8,221 $ 18,638 $ 26,859 Year Ended June 29, 2014 Foreign Retirement Total Balance June 30, 2013 $ 3,268 $ 18,944 $ 22,212 Other comprehensive loss (income) before reclassifications 140 (665 ) (525 ) Income Tax — 246 246 Net other comprehensive loss (income) before reclassifications 140 (419 ) (279 ) Reclassifications: Prior service credits (A) — 752 752 Actuarial gains (A) — (3,512 ) (3,512 ) Total reclassifications before tax — (2,760 ) (2,760 ) Income Tax — 1,022 1,022 Net reclassifications — (1,738 ) (1,738 ) Other comprehensive loss (income) 140 (2,157 ) (2,017 ) Other comprehensive income attributable to non-Controlling interest 3 — 3 Balance June 29, 2014 $ 3,411 $ 16,787 $ 20,198 (A) Amounts reclassified are included in the computation of net periodic benefit cost, which is included in Cost of Goods Sold and Engineering, Selling and Administrative expenses in the accompanying Consolidated Statements of Income and Comprehensive Income. See the Note Retirement Plans and Postretirement Costs in these notes to financial statements. |
Schedule of Unrecognized Compensation Cost | Unrecognized compensation cost as of June 28, 2015 related to stock options and restricted stock granted under the plan was as follows (thousands of dollars): Compensation Weighted Stock options granted $ 457 0.8 Restricted Stock granted $ 1,325 1.0 |
Cash Received from Stock Option Exercises and Related Income Tax Benefit | Cash received from stock option exercises and the related income tax benefit were as follows (thousands of dollars): Fiscal Year Cash Received Income Tax 2015 $ 474 $ 458 2014 $ 2,683 $ 729 2013 $ 770 $ 421 |
Intrinsic Value of Stock Options Exercised and Fair Value Of Stock Options Vested | The intrinsic value of stock options exercised and the fair value of options vested were as follows (thousands of dollars): Years Ended June 28, 2015 June 29, 2014 June 30, 2013 Intrinsic value of options exercised $ 1,375 $ 2,134 $ 1,110 Fair value of stock options vested $ 382 $ 444 $ 266 |
Grant Date Fair Values and Assumptions Used to Determine Compensation Expense | The grant date fair values and assumptions used to determine compensation expense were as follows: Options Granted During 2015 2014 2013 Weighted average grant date fair value: Options issued at grant date market value n/a n/a n/a Options issued above grant date market value $ 34.93 $ 17.58 $ 10.48 Assumptions: Risk free interest rates 1.90 % 2.06 % 0.95 % Expected volatility 57.83 % 58.75 % 57.58 % Expected dividend yield 0.62 % 1.11 % 1.69 % Expected term (in years) 6.0 6.0 6.0 |
Range of Options Outstanding | The range of options outstanding as of June 28, 2015 was as follows Number of Weighted Weighted $10.92-$18.49 48,914/48,914 $15.30/$15.30 4.2 $22.47-$38.71 105,983/42,189 $29.41/$25.14 6.2 $79.73 9,010/- $79.73/$- 9.1 $27.97/$19.86 |
MEXICO | |
Property, Plant and Equipment | The gross and net book value of property, plant and equipment located outside of the United States, primarily in Mexico, were as follows (thousands of dollars): June 28, 2015 June 29, 2014 Gross book value $ 87,876 $ 77,445 Net book value $ 38,138 $ 29,804 |
Investment in Joint Ventures 24
Investment in Joint Ventures and Majority Owned Subsidiaries (Tables) | 12 Months Ended |
Jun. 28, 2015 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investment in Joint Ventures and Majority Owned Subsidiaries | In addition, the following losses were included in our 2015 Equity (Loss) Earnings of Joint Ventures for STRATTEC Advanced Logic, LLC (thousands of dollars): Loss on Guarantee of STRATTEC Advanced Logic, LLC Vendor Contract $ 123 Loss on Loan to STRATTEC Advanced Logic, LLC $ 100 Loss on Guarantee of STRATEC Advanced Logic, LLC Credit facility $ 488 The joint venture investments are included in the accompanying Consolidated Balance Sheets as follows (thousands of dollars): June 28, 2015 June 29, 2014 Investment in Joint Ventures: Investment in VAST LLC $ 15,326 $ 9,657 Investment in STRATTEC Advanced Logic, LLC - 320 $ 15,326 $ 9,977 Other Current Liabilities: Investment in STRATTEC Advanced Logic, LLC $ 402 $ - |
Equity (Loss) Earnings of Joi25
Equity (Loss) Earnings of Joint Ventures (Tables) | 12 Months Ended |
Jun. 28, 2015 | |
VAST LLC | |
Summarized Statements of Operations and Balance Sheet Data | The following are summarized statements of operations and summarized balance sheet data for VAST LLC (thousands of dollars): Years Ended June 28, 2015 June 29, 2014 June 30, 2013 Net sales $ 124,929 $ 111,844 $ 92,388 Cost of goods sold 105,132 94,701 76,759 Gross profit 19,797 17,143 15,629 Engineering, selling and administrative expense 16,155 14,169 17,270 Income (loss) from operations 3,642 2,974 (1,641 ) Other income, net 123 1,809 497 Income (loss) before provision for Income taxes 3,765 4,783 (1,144 ) Provision (benefit) for income taxes 41 810 (690 ) Net income (loss) $ 3,724 $ 3,973 $ (454 ) STRATTEC’s share of VAST LLC net Income (loss) $ 1,241 $ 1,324 $ (151 ) Intercompany profit eliminations 10 — 4 STRATTEC’s equity earnings (loss) of VAST LLC $ 1,251 $ 1,324 $ (147 ) June 28, 2015 June 29, 2014 Cash and cash equivalents $ 5,792 $ 8,267 Receivables, net 23,511 24,907 Inventories, net 13,792 12,649 Other current assets 12,479 7,720 Total current assets 55,574 53,543 Property, plant and equipment, net 26,070 23,949 Other long-term assets 15,413 2,779 Total assets $ 97,057 $ 80,271 Current liabilities $ 43,605 $ 44,436 Long-term liabilities 7,212 6,571 Total liabilities $ 50,817 $ 51,007 Net assets $ 46,240 $ 29,264 STRATTEC’s share of VAST LLC net assets $ 15,413 $ 9,755 |
STRATTEC Advanced Logic, LLC (formerly known as NextLock LLC) | |
Summarized Statements of Operations and Balance Sheet Data | The following are summarized statements of operations and summarized balance sheet data for STRATTEC Advanced Logic (thousands of dollars): Years Ended June 28, 2015 June 29, 2014 June 30, 2013 Net sales $ 49 $ — $ — Cost of goods sold 450 — — Gross profit (loss) (401 ) — — Engineering, selling and administrative expense 1,492 720 153 Income (loss) from operations (1,893 ) (720 ) (153 ) Other income (expense), net (4 ) - - Net income (loss) $ (1,897 ) $ (720 ) $ (153 ) STRATTEC’s share of STRATTEC Advanced Logic, LLC loss $ (1,328 ) $ (367 ) $ (78 ) Loss on Guarantee of STRATTEC Advanced Logic, LLC Vendor Contract (123 ) — — Loss on Loan to STRATTEC Advanced Logic, LLC (100 ) — — Loss on Guarantee of STRATEC Advanced Logic, LLC Credit facility (488 ) — — STRATTEC’s equity loss of STRATTEC Advanced Logic, LLC $ (2,039 ) $ (367 ) $ (78 ) June 28, 2015 June 29, 2014 Cash and cash equivalents $ 71 $ 611 Receivables, net 14 - Inventories, net 246 - Property, plant and equipment, net - 20 Total assets $ 331 $ 631 Current liabilities $ 1,600 $ 4 Net (liabilities) assets $ (1,269 ) $ 627 STRATTEC’s share of STRATTEC Advanced Logic, LLC net (liabilities) assets $ (647 ) $ 320 |
VAST LLC and STRATTEC Advanced Logic, LLC | |
Summarize of Related Party Transaction | We have sales of component parts to VAST LLC and STRATTEC Advanced Logic, LLC, purchases of component parts from VAST LLC, expenses charged to VAST LLC for engineering and accounting services and expenses charged from VAST LLC for general headquarter expenses. The following tables summarize the related party transactions with VAST LLC and STRATTEC Advanced Logic LLC for the periods indicated (thousands of dollars): 2015 2014 2013 Sales to VAST LLC $ 2,298 $ 231 $ 141 Sales to STRATTEC Advanced Logic, LLC $ 157 $ — $ — Purchases from VAST LLC $ 164 $ 233 $ 219 Expenses charged to VAST LLC $ 832 $ 743 $ 517 Expenses charged from VAST LLC $ 1,825 $ 1,261 $ 729 June 28, 2015 June 29, 2014 Accounts receivable from VAST LLC $ 118 $ 119 Accounts receivable from STRATTEC Advanced Logic, LLC ( A ) $ 278 $ — Current loan receivable from STRATTEC Advanced Logic, LLC (A) $ 100 $ — Long-term loan receivable from VAST LLC $ 500 $ 285 Accounts payable to VAST LLC $ 267 $ 98 (A) Based on the current financial position of STRATTEC Advanced Logic, LLC, a valuation reserve has been established as of June 28, 2015 for the full amount of the receivable balance. |
Credit Facilities and Guarant26
Credit Facilities and Guarantees (Tables) | 12 Months Ended |
Jun. 28, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Borrowings Under the Credit Facilities | Outstanding borrowings under the credit facilities referenced in the above paragraph were as follows (thousands of dollars): June 28, 2015 June 29, 2014 STRATTEC Credit Facility $ 7,000 $ — ADAC-STRATTEC Credit Facility $ 3,000 $ 2,500 |
Schedule of Average Outstanding Borrowings and the Weighted Average Interest Rate | Average outstanding borrowings and the weighted average interest rate under each such credit facility during 2015 and 2014 were as follows (thousands of dollars): Average Outstanding Weighted Average 2015 2014 2015 2014 STRATTEC Credit Facility $ 2,288 $ — 1.2 % — % ADAC-STRATTEC Credit Facility $ 3,666 $ 2,643 1.2 % 1.7 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 28, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Purchase Commitments and Minimum Rental Commitments Under Non-Cancelable Operating Leases | At June 28, 2015, we had purchase commitments for zinc, other purchased parts and natural gas and minimum rental commitments under non-cancelable operating leases with a term in excess of one year which are payable as follows (thousands of dollars): Purchase Minimum Rental Fiscal Year Commitments Commitments 2016 $ 12,987 $ 305 2017 $ 11,335 $ 247 2018 $ 10,503 $ 210 2019 $ 4,791 $ 83 2020 $ — $ — |
Rental Expense Under Non-Cancelable Operating Leases | Rental expense under all non-cancelable operating leases was as follows (thousands of dollars): Fiscal Year Rental Expense 2015 $ 993 2014 $ 849 2013 $ 604 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 28, 2015 | |
Income Tax Disclosure [Abstract] | |
Provision (Benefit) for Income Taxes | The provision for income taxes consisted of the following (thousands of dollars): 2015 2014 2013 Currently payable: Federal $ 9,891 $ 4,811 $ (561 ) State 657 252 185 Foreign 2,164 2,164 1,895 12,712 7,227 1,519 Deferred tax (benefit) provision (3,330 ) 1,447 3,847 $ 9,382 $ 8,674 $ 5,366 |
Difference Between Income Taxes Computed at the Federal Statutory Tax Rate and the Provision for Income Taxes | The items accounting for the difference between income taxes computed at the Federal statutory tax rate and the provision for income taxes were as follows: 2015 2014 2013 US statutory rate 34.7 % 34.5 % 34.0 % State taxes, net of Federal tax benefit 0.7 1.0 2.0 Foreign subsidiaries (1.3 ) (0.9 ) (2.2 ) Non-controlling interest (4.1 ) (3.5 ) (3.1 ) Valuation allowance — — (1.0 ) Other (2.4 ) 0.1 2.1 27.6 % 31.2 % 31.8 % |
Components of Deferred Tax Assets and (Liabilities) | The components of deferred tax assets and (liabilities) were as follows (thousands of dollars): June 28, 2015 June 29, 2014 Deferred income taxes-current: Repair and maintenance supply parts reserve $ 229 $ 216 Payroll-related accruals 2,314 2,049 Environmental reserve 512 517 Inventory reserve 722 720 Allowance for doubtful accounts 185 185 Accrued warranty 3,250 966 Customer sales concession reserve 1,465 - Other 878 1,018 $ 9,555 $ 5,671 Deferred income taxes-noncurrent: Accrued pension obligations $ (12,594 ) $ (11,741 ) Unrecognized pension and postretirement benefit plan liabilities 11,125 10,038 Accumulated depreciation (5,253 ) (4,967 ) Stock-based compensation 928 692 Postretirement obligations (63 ) 171 NOL/credit carry-forwards 105 143 Other 1,157 537 $ (4,595 ) $ (5,127 ) |
Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows for the years ended June 28, 2015 and June 29, 2014 (thousands of dollars): Year Ended June 28, 2015 June 29, 2014 Unrecognized tax benefits, beginning of year $ 1,289 $ 1,510 Gross increases – tax positions in prior years 3 — Gross decreases – tax positions in prior years - (215 ) Gross increases – current period tax positions 146 59 Tax Years Closed (1,001 ) (65 ) Unrecognized tax benefits, end of year $ 437 $ 1,289 |
Retirement Plans and Postreti29
Retirement Plans and Postretirement Costs (Tables) | 12 Months Ended |
Jun. 28, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |
Amounts Included in Accumulated Other Comprehensive Loss, Net of Tax | Amounts included in accumulated other comprehensive loss, net of tax, at June 28, 2015, which have not yet been recognized in net periodic benefit cost were as follows (thousands of dollars): Pension and SERP Postretirement Prior service cost (credit) $ 21 $ (1,715 ) Net actuarial loss 17,160 3,171 $ 17,181 $ 1,456 |
Amounts Included in Accumulated Other Comprehensive Loss Expected to be Recognized, Net of Tax | Prior service cost (credit) and unrecognized net actuarial losses included in accumulated other comprehensive loss at June 28, 2015 which are expected to be recognized in net periodic benefit cost in fiscal 2016, net of tax, for the pension, SERP and postretirement plans are as follows (thousands of dollars): Pension and SERP Postretirement Prior service cost (credit) $ 7 $ (481 ) Net actuarial loss 1,539 388 $ 1,546 $ (93 ) |
Summary of Pension Supplemental Executive Retirement Plan and Postretirement Plans Income and Expense | The following tables summarize the pension, SERP and postretirement plans’ income and expense, funded status and actuarial assumptions for the years indicated (thousands of dollars). We use a June 30 measurement date for our pension and postretirement plans. Pension and SERP Benefits Postretirement Benefits Years Ended Years Ended June 28, 2015 June 29, 2014 June 30, 2013 June 28, 2015 June 29, 2014 June 30, 2013 COMPONENTS OF NET PERIODIC BENEFIT COST: Service cost $ 64 $ 217 $ 216 $ 14 $ 15 $ 15 Interest cost 4,173 4,407 4,447 114 157 181 Expected return on plan assets (6,174 ) (6,442 ) (6,126 ) — — — Amortization of prior service cost (credit) 11 12 12 (764 ) (764 ) (764 ) Amortization of unrecognized net loss 2,775 2,665 4,453 693 847 898 Settlement loss — — 2,144 — — — Net periodic benefit cost $ 849 $ 859 $ 5,146 $ 57 $ 255 $ 330 Pension and SERP Benefits Postretirement Benefits 2015 2014 2015 2014 WEIGHTED-AVERAGE ASSUMPTIONS Benefit Obligations: Discount rate 4.53 % 4.39 % 4.53 % 4.39 % Rate of compensation increases - SERP 3.0 % 3.0 % n/a n/a Net Periodic Benefit Cost: Discount rate 4.39 % 5.02 % 4.39 % 5.02 % Expected return on plan assets 6.5 % 7.5 % n/a n/a Rate of compensation increases - SERP 3.0 % 3.0 % n/a n/a CHANGE IN PROJECTED BENEFIT OBLIGATION: Benefit obligation at beginning of year $ 97,445 $ 89,915 $ 2,929 $ 3,540 Service cost 64 217 14 15 Interest cost 4,173 4,407 114 157 Plan Amendments - (3 ) — — Actuarial (gain) loss 2,118 7,030 (189 ) (112 ) Benefits paid (4,471 ) (4,121 ) (689 ) (671 ) Benefit obligation at end of year $ 99,329 $ 97,445 $ 2,179 $ 2,929 CHANGE IN PLAN ASSETS: Fair value of plan assets at beginning of year $ 104,340 $ 90,434 $ — $ — Actual return on plan assets 2,450 14,021 — — Employer contribution 3,153 4,006 689 671 Benefits paid (4,471 ) (4,121 ) (689 ) (671 ) Fair value of plan assets at end of year $ 105,472 $ 104,340 $ — $ — Funded status – prepaid (accrued) benefit obligations $ 6,143 $ 6,895 $ (2,179 ) $ (2,929 ) AMOUNTS RECOGNIZED IN CONSOLIDATED BALANCE SHEETS: Other long-term assets $ 7,733 $ 8,768 $ — $ — Accrued payroll and benefits (current liabilities) (259 ) (254 ) (522 ) (706 ) Accrued benefit obligations (long-term liabilities) (1,331 ) (1,619 ) (1,657 ) (2,223 ) Net amount recognized $ 6,143 $ 6,895 $ (2,179 ) $ (2,929 ) CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN OTHER COMPREHENSIVE INCOME: Net periodic benefit cost $ 849 $ 859 $ 57 $ 255 Net actuarial (gain) loss 5,843 (550 ) (189 ) (112 ) Prior service cost — (3 ) — — Amortization of prior service (cost) credits (11 ) (12 ) 764 764 Amortization of unrecognized net loss (2,775 ) (2,665 ) (693 ) (847 ) Total recognized in other comprehensive loss (income), before tax 3,057 (3,230 ) (118 ) (195 ) Total recognized in net periodic benefit cost and other comprehensive loss (income), before tax $ 3,906 $ (2,371 ) $ (61 ) $ 60 |
The Accumulated Benefit Obligations and Projected Benefit Obligations for the Pension and SERP | The following table summarizes the accumulated benefit obligations and projected benefit obligations for the pension and SERP (thousands of dollars): Pension SERP June 28, 2015 June 29, 2014 June 28, 2015 June 29, 2014 Accumulated benefit obligation $ 97,739 $ 95,573 $ 1,245 $ 1,422 Projected benefit obligation $ 97,739 $ 95,573 $ 1,590 $ 1,872 |
Significant Effect of Health Care Trend on the Postretirement Benefit | The health care cost trend assumption has a significant effect on the postretirement benefit amounts reported. A 1% change in the health care cost trend rates would have the following effects (thousands of dollars): 1% Increase 1% Decrease Effect on total of service and interest cost components in fiscal 2015 $ 2 $ (2 ) Effect on postretirement benefit obligation as of June 28, 2015 $ 24 $ (24 ) |
Schedule of Asset Allocations of Pension Plan | The pension plan weighted-average asset allocations by asset category were as follows for 2015 and 2014: Target Allocation June 28, 2015 June 29, 2014 Equity investments 35 % 35 % 43 % Fixed-income Investments 30 26 26 Cash 35 39 26 Other — — 5 Total 100 % 100 % 100 % The following is a summary, by asset category, of the fair value of pension plan assets at the June 30, 2015 and June 30, 2014 measurement dates (thousands of dollars): June 30, 2015 June 30, 2014 Asset Category Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents $ — $ 41,241 $ — $ 41,241 $ — $ 27,736 $ — $ 27,736 Equity Securities/Funds: Small Cap — — — — — — — — Mid Cap 10,766 — — 10,766 10,866 — — 10,866 Large Cap 17,965 — — 17,965 21,920 — — 21,920 International 8,483 — — 8,483 11,728 — — 11,728 Fixed Income Bond Funds/Bonds 5,041 21,925 — 26,966 4,884 21,771 — 26,655 Hedge Funds — — 51 51 — — 5,435 5,435 Total $ 42,255 $ 63,166 $ 51 $ 105,472 $ 49,398 $ 49,507 $ 5,435 $ 104,340 |
Changes in Level 3 Investments for the Pension Plan Assets | The following table summarizes the changes in Level 3 investments for the pension plan assets (thousands of dollars): Realized and Fair Value Net Purchases Unrealized Fair Value June 30, 2014 and Sales Gain, net June 30, 2015 Hedge Funds $ 5,435 $ (5,557 ) $ 173 $ 51 |
Expected Future Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid during the fiscal years noted below (thousands of dollars): Pension and SERP Benefits Postretirement Benefits 2016 $ 5,033 $ 522 2017 $ 5,042 $ 432 2018 $ 5,292 $ 361 2019 $ 5,540 $ 277 2020 $ 5,857 $ 202 2021-2025 $ 31,164 $ 514 |
Schedule of 401(k) Plan Contribution | Our contributions to the 401(k) Plan were as follows (thousands of dollars): 2015 2014 2013 Company Contributions $ 1,729 $ 1,605 $ 1,464 |
Earnings Per Share (''EPS'') (T
Earnings Per Share (''EPS'') (Tables) | 12 Months Ended |
Jun. 28, 2015 | |
Earnings Per Share [Abstract] | |
Reconciliation of the Components of the Basic and Diluted Per Share | A reconciliation of the components of the basic and diluted per share computations follows (in thousands, except per share amounts): 2015 2014 2013 Net Income Attributable to STRATTEC $ 20,654 $ 16,424 $ 9,375 Less: Income Attributable to Participating Securities 258 296 171 Net Income Attributable to Common Shareholders $ 20,396 $ 16,128 $ 9,204 Weighted Average Shares of Common Stock Outstanding 3,515 3,428 3,327 Incremental Shares – Stock based Compensation 89 85 52 Diluted Weighted Average Shares of Common Stock Outstanding 3,604 3,513 3,379 Basic Earnings Per Share $ 5.80 $ 4.70 $ 2.77 Diluted Earnings Per Share $ 5.66 $ 4.59 $ 2.72 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Options to purchase shares of common stock that were excluded from the calculation of diluted earnings per share because their inclusion would have been antidilutive were as follows: Number of Options Excluded June 29, 2015 10,000 June 29, 2014 — June 30, 2013 248,000 |
Stock Option and Purchase Pla31
Stock Option and Purchase Plans (Tables) | 12 Months Ended |
Jun. 28, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity Under Our Stock Incentive Plan | A summary of stock option activity under our stock incentive plan was as follows: Weighted Average Weighted Average Remaining Contractual Aggregate Intrinsic Value Shares Exercise Price Term (in years) (in thousands) Balance at July 1, 2012 332,800 $ 28.19 Granted 40,000 $ 25.64 Exercised (55,845 ) $ 13.78 Expired (41,500 ) $ 52.68 Terminated (4,000 ) $ 17.59 Balance at June 30, 2013 271,455 $ 27.19 Granted 40,000 $ 38.71 Exercised (92,256 ) $ 29.08 Expired (22,500 ) $ 58.33 Terminated (11,457 ) $ 30.61 Balance at June 29, 2014 185,242 $ 24.73 Granted 10,000 $ 79.73 Exercised (22,746 ) $ 20.83 Terminated (8,589 ) $ 37.43 Balance at June 28, 2015 163,907 $ 27.97 5.8 $ 7,018 Exercisable as of: June 28, 2015 91,103 $ 19.86 4.1 $ 4,592 June 29, 2014 76,699 $ 16.91 4.3 $ 3,769 June 30, 2013 139,955 $ 29.95 4.4 $ 2,104 Available for grant as of June 28, 2015 253,989 |
Options Granted at Price Greater than the Market Value | Options granted at a price greater than the market value on the date of grant included in the table above were as follows: 2015 2014 2013 Shares 10,000 40,000 40,000 Exercise Price $ 79.73 $ 38.71 $ 25.64 |
Summary of Restricted Stock Activity Under Our Stock Incentive Plan | A summary of restricted stock activity under our stock incentive plan was as follows: Weighted Average Grant Date Shares Fair Value Nonvested Balance at July 1, 2012 49,400 $ 20.45 Granted 24,150 $ 23.69 Vested (10,400 ) $ 15.44 Forfeited (1,900 ) $ 25.49 Nonvested Balance at June 30, 2013 61,250 $ 22.42 Granted 24,950 $ 37.29 Vested (19,350 ) $ 20.40 Forfeited (3,250 ) $ 27.88 Nonvested Balance at June 29, 2014 63,600 $ 28.64 Granted 25,000 $ 70.90 Vested (18,100 ) $ 23.02 Forfeited (4,150 ) $ 45.71 Nonvested Balance at June 28, 2015 66,350 $ 45.03 |
Export Sales (Tables)
Export Sales (Tables) | 12 Months Ended |
Jun. 28, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Sales to Locations Outside of the United States | Total export sales, sales from the United States to locations outside of the United States, and countries for which customer sales accounted for ten percent or more of total net sales are summarized as follows (thousands of dollars and percent of total net sales): 2015 2014 2013 Net Sales % Net Sales % Net Sales % Export Sales $ 141,584 34 % $ 119,099 34 % $ 111,159 37 % Export Sales into Canada $ 60,987 15 % $ 76,736 22 % $ 69,221 23 % |
Product Sales (Tables)
Product Sales (Tables) | 12 Months Ended |
Jun. 28, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Product Sales | Sales by product group were as follows (thousands of dollars and percent of total net sales): 2015 2014 2013 Net Sales % Net Sales % Net Sales % Keys & Locksets $ 114,287 28 % $ 115,379 33 % $ 102,157 34 % Aftermarket & OE Service 78,717 19 % 49,586 14 % 36,487 12 % Power Access 68,078 16 % 60,141 17 % 56,443 19 % Door Handles & Exterior Trim 60,864 15 % 48,034 14 % 37,225 13 % Driver Controls 57,894 14 % 53,729 16 % 51,032 17 % Latches 24,320 6 % 14,664 4 % 9,385 3 % Other 7,315 2 % 6,886 2 % 5,450 2 % $ 411,475 100 % $ 348,419 100 % $ 298,179 100 % |
Sales and Receivable Concentr34
Sales and Receivable Concentration (Tables) | 12 Months Ended |
Jun. 28, 2015 | |
Segment Reporting Information Receivable [Abstract] | |
Sales to Largest Customers | Sales to our largest customers were as follows (thousands of dollars and percent of total net sales): 2015 2014 2013 Net Sales % Net Sales % Net Sales % Fiat Chrysler Automobiles $ 116,914 28 % $ 117,502 34 % $ 95,476 32 % General Motors Company 105,809 26 % 79,526 23 % 56,972 19 % Ford Motor Company 45,415 11 % 46,619 13 % 44,773 15 % $ 268,138 65 % $ 243,647 70 % $ 197,221 66 % |
Receivables from Largest Customers | Receivables from our largest customers were as follows (thousands of dollars and percent of gross receivables): June 28, 2015 June 29, 2014 Receivables % Receivables % Fiat Chrysler Automobiles $ 17,060 29 % $ 22,202 32 % General Motors Company 8,751 15 % 20,717 30 % Ford Motor Company 7,340 12 % 6,358 9 % $ 33,151 56 % $ 49,277 71 % |
Organization and Summary of S35
Organization and Summary of Significant Accounting Policies (Details Textual) | Jun. 30, 2013USD ($)Contract$ / MXN | Apr. 05, 2013 | Jun. 28, 2015USD ($)SubsidiaryJoint_VentureSegmentContractAssociatesshares | Jun. 29, 2014USD ($)Contract | Jun. 30, 2013USD ($)Contract$ / MXN | Jul. 01, 2012USD ($) |
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of reporting segments related to STRATTEC Security Corporation | Segment | 1 | |||||
Cash and cash equivalents deemed permanently reinvested | $ 20,307,000 | $ 25,695,000 | $ 19,756,000 | $ 20,307,000 | $ 17,487,000 | |
Mexican peso contract: contract end date | Jun. 28, 2013 | |||||
Currency Option Contracts Net Premium Payable Receivable | $ 0 | |||||
Mexican Peso Option Contract | Contract | 0 | 0 | ||||
Mexican Peso Option Contract | Contract | 0 | 0 | 0 | 0 | ||
Fair value, assets, level 1 to level 2 transfers, amount | $ 0 | $ 0 | ||||
Gross balance of the repair and maintenance supply parts inventory | $ 2,900,000 | 2,300,000 | ||||
Remaining useful life of intangible assets | 2 years 4 months 24 days | |||||
Intangible amortization expense | $ 99,000 | 99,000 | $ 99,000 | |||
Estimated intangible amortization expense for the next twelve months | 99,000 | |||||
Estimated intangible amortization expense Year two | 99,000 | |||||
Estimated intangible amortization expense Year three | 41,000 | |||||
Estimated intangible amortization expense thereafter | 0 | |||||
Property, plant and equipment impairment | $ 0 | 0 | 0 | |||
Number of full time associates | Associates | 3,420 | |||||
Number of associates represented by labor union | Associates | 260 | |||||
Percentage of associate represent by labor union | 7.60% | |||||
Research and development expenditures | $ 280,000 | 700,000 | 1,300,000 | |||
Per individual per calendar year health coverage stop loss limit | $ 150,000 | $ 150,000 | $ 150,000 | $ 150,000 | ||
Shares of common stock available for grant | shares | 253,989 | |||||
Restricted stock | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of years award vests after date of grant | 3 years | |||||
Omnibus Stock Incentive Plan | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Share based compensation arrangement by share based payment award number of shares authorized | shares | 1,850,000 | |||||
Shares of common stock available for grant | shares | 253,989 | |||||
Minimum | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Customer model life production for which production equipment spare parts need to be maintained | 12 years | |||||
Minimum | Employee Stock Option | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Options expires after date of grant | 5 years | |||||
Number of years award vests after date of grant | 1 year | |||||
Maximum | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Customer model life production for which production equipment spare parts need to be maintained | 15 years | |||||
Maximum | Employee Stock Option | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Options expires after date of grant | 10 years | |||||
Number of years award vests after date of grant | 4 years | |||||
Currency buy sell under contract one | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Mexican Peso Option Contract - Contractual Exchange Rate | $ / MXN | 12.40 | 12.40 | ||||
Currency buy sell under contract two | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Mexican Peso Option Contract - Contractual Exchange Rate | $ / MXN | 13.40 | 13.40 | ||||
MEXICO | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Cash and cash equivalents deemed permanently reinvested | $ 14,800,000 | |||||
STRATTEC Advanced Logic, LLC (formerly known as NextLock LLC) | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
STRATTEC's percentage ownership in joint venture | 51.00% | 51.00% | 51.00% | |||
VAST LLC | CHINA | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of wholly owned subsidiaries | Subsidiary | 3 | |||||
VAST LLC | BRAZIL | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of wholly owned subsidiaries | Joint_Venture | 1 | |||||
VAST LLC | INDIA | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of joint venture entities | Joint_Venture | 1 |
Organization and Summary of S36
Organization and Summary of Significant Accounting Policies (Details) - Other Income, Net - Not Designated as Hedging Instrument $ in Thousands | 12 Months Ended |
Jun. 30, 2013USD ($) | |
Pre-tax effects of the Mexican peso option contracts | |
Realized gain | $ 27 |
Realized (loss) | (39) |
Unrealized gain | $ 395 |
Organization and Summary of S37
Organization and Summary of Significant Accounting Policies (Details 1) - Rabbi Trust - USD ($) $ in Thousands | Jun. 28, 2015 | Jun. 29, 2014 |
Assets: | ||
Total assets at fair value | $ 2,344 | $ 2,248 |
Fixed Income Funds | ||
Assets: | ||
Total assets at fair value | 679 | 754 |
Level 1 | ||
Assets: | ||
Total assets at fair value | 2,344 | 2,220 |
Level 1 | Fixed Income Funds | ||
Assets: | ||
Total assets at fair value | 679 | 754 |
Level 2 | ||
Assets: | ||
Total assets at fair value | 28 | |
Stock Index Fund | Small Cap | ||
Assets: | ||
Total assets at fair value | 372 | 346 |
Stock Index Fund | Mid Cap | ||
Assets: | ||
Total assets at fair value | 365 | 226 |
Stock Index Fund | Large Cap | ||
Assets: | ||
Total assets at fair value | 490 | 448 |
Stock Index Fund | International | ||
Assets: | ||
Total assets at fair value | 438 | 446 |
Stock Index Fund | Level 1 | Small Cap | ||
Assets: | ||
Total assets at fair value | 372 | 346 |
Stock Index Fund | Level 1 | Mid Cap | ||
Assets: | ||
Total assets at fair value | 365 | 226 |
Stock Index Fund | Level 1 | Large Cap | ||
Assets: | ||
Total assets at fair value | 490 | 448 |
Stock Index Fund | Level 1 | International | ||
Assets: | ||
Total assets at fair value | $ 438 | 446 |
Cash and Cash Equivalents | ||
Assets: | ||
Total assets at fair value | 28 | |
Cash and Cash Equivalents | Level 2 | ||
Assets: | ||
Total assets at fair value | $ 28 |
Organization and Summary of S38
Organization and Summary of Significant Accounting Policies (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 30, 2013 | |
Changes in the allowance for doubtful accounts | |||
Balance, Beginning of Year | $ 500 | $ 500 | $ 500 |
Provision for Doubtful Accounts | 0 | 0 | 0 |
Net Write-Offs | 0 | 0 | 0 |
Balance, End of Year | $ 500 | $ 500 | $ 500 |
Organization and Summary of S39
Organization and Summary of Significant Accounting Policies (Details 3) - USD ($) $ in Thousands | Jun. 28, 2015 | Jun. 29, 2014 | Jun. 30, 2013 | Jul. 01, 2012 |
Inventories | ||||
Finished products | $ 11,358 | $ 9,034 | ||
Work in process | 7,746 | 7,386 | ||
Purchased materials | 17,982 | 16,232 | ||
Inventory, Gross, Total | 37,086 | 32,652 | ||
Excess and obsolete reserve | (2,300) | (2,150) | $ (1,500) | $ (1,300) |
Inventories, net | $ 34,786 | $ 30,502 |
Organization and Summary of S40
Organization and Summary of Significant Accounting Policies (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 30, 2013 | |
Activity related to the excess and obsolete inventory reserve | |||
Balance, Beginning of Year | $ 2,150 | $ 1,500 | $ 1,300 |
Provision Charged to Expense | 655 | 1,122 | 511 |
Amounts Written Off | 505 | 472 | 311 |
Balance, End of Year | $ 2,300 | $ 2,150 | $ 1,500 |
Organization and Summary of S41
Organization and Summary of Significant Accounting Policies (Details 5) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 30, 2013 | |
Activity related to the repair and maintenance supply parts reserve | |||
Balance, Beginning of Year | $ 585 | $ 500 | $ 500 |
Provision Charged to Expense | 348 | 102 | 195 |
Amounts Written Off | 313 | 17 | 195 |
Balance, End of Year | $ 620 | $ 585 | $ 500 |
Organization and Summary of S42
Organization and Summary of Significant Accounting Policies (Details 6) - USD ($) $ in Thousands | Jun. 28, 2015 | Jun. 29, 2014 |
Intangible assets carrying value and accumulated amortization | ||
Patents, engineering drawings and software | $ 890 | $ 890 |
Less: accumulated amortization | (651) | (552) |
Total | $ 239 | $ 338 |
Organization and Summary of S43
Organization and Summary of Significant Accounting Policies (Details 7) | 12 Months Ended |
Jun. 28, 2015 | |
Land improvements | |
Estimated useful lives of the assets | |
Expected Useful Lives | 20 years |
Buildings and improvements | Minimum | |
Estimated useful lives of the assets | |
Expected Useful Lives | 15 years |
Buildings and improvements | Maximum | |
Estimated useful lives of the assets | |
Expected Useful Lives | 35 years |
Machinery and equipment | Minimum | |
Estimated useful lives of the assets | |
Expected Useful Lives | 3 years |
Machinery and equipment | Maximum | |
Estimated useful lives of the assets | |
Expected Useful Lives | 10 years |
Organization and Summary of S44
Organization and Summary of Significant Accounting Policies (Details 8) - USD ($) $ in Thousands | Jun. 28, 2015 | Jun. 29, 2014 |
Property, plant and equipment | ||
Gross | $ 194,567 | $ 172,717 |
Less: accumulated depreciation | (123,441) | (116,936) |
Total | 71,126 | 55,781 |
Land and improvements | ||
Property, plant and equipment | ||
Gross | 4,246 | 3,269 |
Buildings and improvements | ||
Property, plant and equipment | ||
Gross | 25,954 | 21,423 |
Machinery and equipment | ||
Property, plant and equipment | ||
Gross | $ 164,367 | $ 148,025 |
Organization and Summary of S45
Organization and Summary of Significant Accounting Policies (Details 9) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 30, 2013 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||
Depreciation Expense | $ 8,716 | $ 8,168 | $ 7,391 |
Organization and Summary of S46
Organization and Summary of Significant Accounting Policies (Details 10) - USD ($) $ in Thousands | Jun. 28, 2015 | Jun. 29, 2014 |
Gross and net book value of property plant and equipment | ||
Property, plant and equipment, gross | $ 194,567 | $ 172,717 |
Property, plant and equipment, net | 71,126 | 55,781 |
MEXICO | ||
Gross and net book value of property plant and equipment | ||
Property, plant and equipment, gross | 87,876 | 77,445 |
Property, plant and equipment, net | $ 38,138 | $ 29,804 |
Organization and Summary of S47
Organization and Summary of Significant Accounting Policies (Details 11) - Supplier | 12 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 30, 2013 | |
Supplier Concentrations | |||
Percentage of inventory purchases from major suppliers | 27.00% | 38.00% | 38.00% |
Number of major Suppliers | 5 | 7 | 7 |
Organization and Summary of S48
Organization and Summary of Significant Accounting Policies (Details 12) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 30, 2013 | |
Other Income and Expenses [Abstract] | |||
Foreign currency transaction gain (loss) | $ 3,075 | $ (36) | $ (395) |
Rabbi Trust gain | 96 | 211 | 164 |
Unrealized gain on Mexican peso option contracts | 395 | ||
Realized loss on Mexican peso option contracts | (12) | ||
Other | 310 | 97 | 177 |
Other income, net | $ 3,481 | $ 272 | $ 329 |
Organization and Summary of S49
Organization and Summary of Significant Accounting Policies (Details 13) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 30, 2013 | |
Changes in balance sheet amounts under self insured plans | |||
Balance, Beginning of Year | $ 420 | $ 420 | $ 320 |
Provision Charged to Expense | 4,756 | 4,600 | 3,948 |
Payments | 4,756 | 4,600 | 3,848 |
Balance, End of Year | $ 420 | $ 420 | $ 420 |
Organization and Summary of S50
Organization and Summary of Significant Accounting Policies (Details 14) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 30, 2013 | |
Changes in warranty reserve | |||
Balance, Beginning of Year | $ 3,462 | $ 2,500 | $ 4,958 |
Provision Charged (Credited) to Expense | 8,975 | 1,153 | (404) |
Payments | 602 | 191 | 2,054 |
Balance, End of Year | $ 11,835 | $ 3,462 | $ 2,500 |
Organization and Summary of S51
Organization and Summary of Significant Accounting Policies (Details 15) - USD ($) $ in Thousands | Jun. 28, 2015 | Jun. 29, 2014 | Jun. 30, 2013 |
Accumulated other comprehensive loss | |||
Unrecognized pension and postretirement benefit liabilities, net of tax | $ 18,638 | $ 16,787 | $ 18,944 |
Foreign currency translation | 8,221 | 3,411 | 3,268 |
Accumulated other comprehensive loss, total | $ 26,859 | $ 20,198 | $ 22,212 |
Organization and Summary of S52
Organization and Summary of Significant Accounting Policies (Details 16) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 30, 2013 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | $ 20,198 | $ 22,212 | |
Other comprehensive loss (income) before reclassifications | 10,787 | (525) | |
Retirement and Postretirement Plan Reclassification Adjustment, Income Tax Amount | (2,092) | 246 | |
Net other comprehensive loss (income) before reclassifications | 8,695 | (279) | |
Reclassifications: | |||
Prior service credits | 753 | 752 | |
Actuarial gains/Unrecognized net loss | (3,468) | (3,512) | |
Total reclassifications before tax | (2,715) | (2,760) | |
Retirement and Postretirement Plans Reclassifications, Income Tax | 1,004 | 1,022 | |
Net reclassifications | (1,711) | (1,738) | |
Other comprehensive loss (income) | 6,984 | (2,017) | $ (13,554) |
Other comprehensive (loss) income attributable to non- Controlling interest | (323) | 3 | |
Ending balance | 26,859 | 20,198 | 22,212 |
Foreign Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | 3,411 | 3,268 | |
Other comprehensive loss (income) before reclassifications | 5,133 | 140 | |
Net other comprehensive loss (income) before reclassifications | 5,133 | 140 | |
Reclassifications: | |||
Other comprehensive loss (income) | 5,133 | 140 | |
Other comprehensive (loss) income attributable to non- Controlling interest | (323) | 3 | |
Ending balance | 8,221 | 3,411 | 3,268 |
Retirement and Postretirement Benefit Plans | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | 16,787 | 18,944 | |
Other comprehensive loss (income) before reclassifications | 5,654 | (665) | |
Retirement and Postretirement Plan Reclassification Adjustment, Income Tax Amount | (2,092) | 246 | |
Net other comprehensive loss (income) before reclassifications | 3,562 | (419) | |
Reclassifications: | |||
Prior service credits | 753 | 752 | |
Actuarial gains/Unrecognized net loss | (3,468) | (3,512) | |
Total reclassifications before tax | (2,715) | (2,760) | |
Retirement and Postretirement Plans Reclassifications, Income Tax | 1,004 | 1,022 | |
Net reclassifications | (1,711) | (1,738) | |
Other comprehensive loss (income) | 1,851 | (2,157) | |
Ending balance | $ 18,638 | $ 16,787 | $ 18,944 |
Organization and Summary of S53
Organization and Summary of Significant Accounting Policies (Details 17) - Jun. 28, 2015 - USD ($) $ in Thousands | Total |
Employee Stock Option | |
Unrecognized compensation cost related to stock options and restricted stock granted under the plan | |
Compensation Cost | $ 457 |
Weighted Average Period Over Which Cost is to be Recognized (in years) | 9 months 18 days |
Restricted stock | |
Unrecognized compensation cost related to stock options and restricted stock granted under the plan | |
Compensation Cost | $ 1,325 |
Weighted Average Period Over Which Cost is to be Recognized (in years) | 1 year |
Organization and Summary of S54
Organization and Summary of Significant Accounting Policies (Details 18) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 30, 2013 | |
Cash Received From Stock Option Exercises And Related Income Tax Benefit | |||
Cash Received from Stock Option Exercises | $ 474 | $ 2,683 | $ 770 |
Income Tax Benefit | $ 458 | $ 729 | $ 421 |
Organization and Summary of S55
Organization and Summary of Significant Accounting Policies (Details 19) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 30, 2013 | |
Intrinsic value of stock options exercised and the fair value of stock options vested | |||
Intrinsic value of options exercised | $ 1,375 | $ 2,134 | $ 1,110 |
Fair value of stock options vested | $ 382 | $ 444 | $ 266 |
Organization and Summary of S56
Organization and Summary of Significant Accounting Policies (Details 20) - $ / shares | 12 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 30, 2013 | |
Assumptions: | |||
Risk free interest rates | 1.90% | 2.06% | 0.95% |
Expected volatility | 57.83% | 58.75% | 57.58% |
Expected dividend yield | 0.62% | 1.11% | 1.69% |
Expected term (in years) | 6 years | 6 years | 6 years |
Options Issued Above Grant Date Market Value | |||
Weighted average grant date fair value: | |||
Weighted average grant date fair value | $ 34.93 | $ 17.58 | $ 10.48 |
Organization and Summary of S57
Organization and Summary of Significant Accounting Policies (Details 21) - Jun. 28, 2015 - $ / shares | Total |
Range of options outstanding | |
Weighted Average Exercise Price Outstanding | $ 27.97 |
Weighted Average Exercise Price Exercisable | $ 19.86 |
Exercise Price Range One | |
Range of options outstanding | |
Number of Options Outstanding | 48,914 |
Number of Options Exercisable | 48,914 |
Weighted Average Exercise Price Outstanding | $ 15.30 |
Weighted Average Exercise Price Exercisable | $ 15.30 |
Weighted Average Remaining Contractual Life Outstanding (In Years) | 4 years 2 months 12 days |
Exercise Price Range, Lower Range Limit | $ 10.92 |
Exercise Price Range, Upper Range Limit | $ 18.49 |
Exercise Price Range Two | |
Range of options outstanding | |
Number of Options Outstanding | 105,983 |
Number of Options Exercisable | 42,189 |
Weighted Average Exercise Price Outstanding | $ 29.41 |
Weighted Average Exercise Price Exercisable | $ 25.14 |
Weighted Average Remaining Contractual Life Outstanding (In Years) | 6 years 2 months 12 days |
Exercise Price Range, Lower Range Limit | $ 22.47 |
Exercise Price Range, Upper Range Limit | $ 38.71 |
Exercise Price Range Three | |
Range of options outstanding | |
Number of Options Outstanding | 9,010 |
Weighted Average Exercise Price Outstanding | $ 79.73 |
Weighted Average Remaining Contractual Life Outstanding (In Years) | 9 years 1 month 6 days |
Exercise Price Range | $ 79.73 |
Subsequent Event (Details Textu
Subsequent Event (Details Textual) - Jul. 31, 2015 - Currency buy sell under contract three - Subsequent Event | USD ($)$ / MXN |
Subsequent Event [Line Items] | |
Mexican Peso Option Contract - Contractual Exchange Rate | $ / MXN | 16 |
Derivative Contract Covering Period | October 6, 2015 through June 21, 2016 |
Derivative, Notional Amount | $ 13,500,000 |
Investment in Joint Ventures 59
Investment in Joint Ventures and Majority Owned Subsidiaries (Details Textual) - USD ($) | Apr. 30, 2015 | Jun. 30, 2013 | Apr. 05, 2013 | Jun. 28, 2015 | Jun. 28, 2015 | Jun. 29, 2014 | Jun. 30, 2013 | Nov. 30, 2008 | Jun. 24, 2007 |
Schedule Of Equity Method Investments [Line Items] | |||||||||
Payments to acquire interest in joint venture | $ 4,384,000 | $ 965,000 | |||||||
Equity (loss) income of joint ventures | (788,000) | $ 957,000 | (225,000) | ||||||
Loan to joint venture | 315,000 | 285,000 | |||||||
ADAC-STRATTEC LLC | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Percentage ownership interest in less than wholly owned consolidated subsidiary | 51.00% | ||||||||
Income from majority owned subsidiaries, impact on net income | 2,600,000 | 1,400,000 | 1,100,000 | ||||||
Strattec Power Access Llc | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Percentage ownership interest in less than wholly owned consolidated subsidiary | 80.00% | ||||||||
Income from majority owned subsidiaries, impact on net income | 269,000 | 1,500,000 | 1,000,000 | ||||||
VAST LLC | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Payments to acquire interest in joint venture | 13,200,000 | 0 | 600,000 | ||||||
Equity (loss) income of joint ventures | 1,251,000 | 1,324,000 | (147,000) | ||||||
VAST LLC | ADAC | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Loan to joint venture | 215,000 | 285,000 | |||||||
VAST LLC | WITTE | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Loan to joint venture | 215,000 | 285,000 | |||||||
VAST LLC | STRATTEC | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Payments to acquire interest in joint venture | 4,384,000 | 200,000 | |||||||
Loan to joint venture | 215,000 | 285,000 | |||||||
VAST LLC | MINDA-VAST ACCESS SYSTEMS | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
VAST's percentage ownership in MINDA-VAST ACCESS SYSTEMS | 50.00% | ||||||||
Payments to acquire interest in joint venture | $ 12,000,000 | ||||||||
Expected annual sales from acquired joint venture entity | 40,000,000 | ||||||||
VAST LLC | MINDA-VAST ACCESS SYSTEMS | ADAC | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Payments to acquire interest in joint venture | 4,000,000 | ||||||||
VAST LLC | MINDA-VAST ACCESS SYSTEMS | WITTE | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Payments to acquire interest in joint venture | 4,000,000 | ||||||||
VAST LLC | MINDA-VAST ACCESS SYSTEMS | STRATTEC | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Payments to acquire interest in joint venture | $ 4,000,000 | ||||||||
STRATTEC Advanced Logic, LLC (formerly known as NextLock LLC) | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Payments to acquire interest in joint venture | $ 1,500,000 | ||||||||
Equity (loss) income of joint ventures | $ (2,039,000) | $ (367,000) | $ (78,000) | ||||||
Percentage ownership interest in joint venture | 51.00% | 51.00% | 51.00% | ||||||
Percentage of funding in joint venture through loans | 100.00% | ||||||||
Percentage of losses of joint venture recognized by STRATTEC | 100.00% | ||||||||
STRATTEC Advanced Logic, LLC (formerly known as NextLock LLC) | STRATTEC | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Payments to acquire interest in joint venture | $ 765,000 |
Investment in Joint Ventures 60
Investment in Joint Ventures And Majority Owned Subsidiaries (Details) - STRATTEC Advanced Logic, LLC (formerly known as NextLock LLC) $ in Thousands | 12 Months Ended |
Jun. 28, 2015USD ($) | |
Schedule Of Equity Method Investments [Line Items] | |
Loss on Guarantee for license agreement of STRATEC Advanced Logic, LLC, proportionate share of partner | $ 123 |
Loss on Loan from STRATTEC to STRATTEC Advanced Logic | 100 |
Loss on Guarantee of STRATEC Advanced Logic, LLC Credit facility | $ 488 |
Investment in Joint Ventures 61
Investment in Joint Ventures And Majority Owned Subsidiaries (Details1) - USD ($) $ in Thousands | Jun. 28, 2015 | Jun. 29, 2014 |
Schedule Of Equity Method Investments [Line Items] | ||
INVESTMENT IN JOINT VENTURES | $ 15,326 | $ 9,977 |
VAST LLC | ||
Schedule Of Equity Method Investments [Line Items] | ||
INVESTMENT IN JOINT VENTURES | 15,326 | 9,657 |
STRATTEC Advanced Logic, LLC (formerly known as NextLock LLC) | ||
Schedule Of Equity Method Investments [Line Items] | ||
INVESTMENT IN JOINT VENTURES | $ 320 | |
Other Current Liabilities | $ 402 |
Equity (Loss) Earnings of Joi62
Equity (Loss) Earnings of Joint Ventures (Details) - USD ($) | 12 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 30, 2013 | |
Summarized statements of operations | |||
Equity earnings (loss) of joint ventures | $ (788,000) | $ 957,000 | $ (225,000) |
VAST LLC | |||
Summarized statements of operations | |||
Net sales | 124,929,000 | 111,844,000 | 92,388,000 |
Cost of goods sold | 105,132,000 | 94,701,000 | 76,759,000 |
Gross profit (loss) | 19,797,000 | 17,143,000 | 15,629,000 |
Engineering, selling and administrative expense | 16,155,000 | 14,169,000 | 17,270,000 |
Income (loss) from operations | 3,642,000 | 2,974,000 | (1,641,000) |
Other income (expense), net | 123,000 | 1,809,000 | 497,000 |
Income (loss) before provision for Income taxes | 3,765,000 | 4,783,000 | (1,144,000) |
Provision (benefit) for income taxes | 41,000 | 810,000 | (690,000) |
Net income (loss) | 3,724,000 | 3,973,000 | (454,000) |
STRATTEC’s share of VAST LLC net Income (loss) | 1,241,000 | 1,324,000 | (151,000) |
Intercompany profit eliminations | 10,000 | 4,000 | |
Equity earnings (loss) of joint ventures | 1,251,000 | 1,324,000 | (147,000) |
STRATTEC Advanced Logic, LLC (formerly known as NextLock LLC) | |||
Summarized statements of operations | |||
Net sales | 49,000 | ||
Cost of goods sold | 450,000 | ||
Gross profit (loss) | (401,000) | ||
Engineering, selling and administrative expense | 1,492,000 | 720,000 | 153,000 |
Income (loss) from operations | (1,893,000) | (720,000) | (153,000) |
Other income (expense), net | (4,000) | ||
Net income (loss) | (1,897,000) | (720,000) | (153,000) |
STRATTEC’s share of STRATTEC Advanced Logic, LLC loss | (1,328,000) | (367,000) | (78,000) |
Loss on Guarantee of STRATTEC Advanced Logic, LLC Vendor Contract | (123,000) | ||
Loss on Loan to STRATTEC Advanced Logic, LLC | (100,000) | ||
Loss on STRATEC Advanced Logic, LLC Credit facility | (488,000) | ||
Equity earnings (loss) of joint ventures | $ (2,039,000) | $ (367,000) | $ (78,000) |
Equity (Loss) Earnings of Joi63
Equity (Loss) Earnings of Joint Ventures (Details 1) - USD ($) $ in Thousands | Jun. 28, 2015 | Jun. 29, 2014 |
VAST LLC | ||
Summarized balance sheets | ||
Cash and cash equivalents | $ 5,792 | $ 8,267 |
Receivables, net | 23,511 | 24,907 |
Inventories, net | 13,792 | 12,649 |
Other current assets | 12,479 | 7,720 |
Total current assets | 55,574 | 53,543 |
Property, plant and equipment, net | 26,070 | 23,949 |
Other long-term assets | 15,413 | 2,779 |
Total assets | 97,057 | 80,271 |
Current liabilities | 43,605 | 44,436 |
Long-term liabilities | 7,212 | 6,571 |
Total liabilities | 50,817 | 51,007 |
Net (liabilities) assets | 46,240 | 29,264 |
STRATTEC’s share of net assets | 15,413 | 9,755 |
STRATTEC Advanced Logic, LLC (formerly known as NextLock LLC) | ||
Summarized balance sheets | ||
Cash and cash equivalents | 71 | 611 |
Receivables, net | 14 | |
Inventories, net | 246 | |
Property, plant and equipment, net | 20 | |
Total assets | 331 | 631 |
Current liabilities | 1,600 | 4 |
Net (liabilities) assets | (1,269) | 627 |
STRATTEC’s share of net assets | $ (647) | $ 320 |
Equity (Loss) Earnings of Joi64
Equity (Loss) Earnings of Joint Ventures (Details Textual) - STRATTEC Advanced Logic, LLC (formerly known as NextLock LLC) - USD ($) | Feb. 16, 2015 | Jun. 30, 2013 | Apr. 05, 2013 | Jun. 28, 2015 | Jun. 28, 2015 |
Schedule Of Equity Method Investments [Line Items] | |||||
STRATTEC's percentage ownership in joint venture | 51.00% | 51.00% | 51.00% | ||
Outstanding borrowings under the credit facility | $ 100,000 | $ 100,000 | |||
Loss on Guarantee of STRATEC Advanced Logic, LLC Credit facility | 488,000 | ||||
Loss on Guarantee for license agreement of STRATEC Advanced Logic, LLC, proportionate share of partner | 123,000 | ||||
Loss on Loan from STRATTEC to STRATTEC Advanced Logic | 100,000 | ||||
Percentage of funding in joint venture through loans | 100.00% | ||||
Percentage of losses of joint venture recognized by STRATTEC | 100.00% | ||||
Westinghouse Agreement | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Guarantee liability | $ 250,000 | 250,000 | |||
STRATTEC's proportionate share of guarantor obligations | 127,000 | 127,000 | |||
Loss on Guarantee for license agreement of STRATEC Advanced Logic, LLC, proportionate share of partner | $ 123,000 | ||||
STRATTEC Advanced Logic Credit Facility | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Secured revolving credit facility, initiation date | Feb. 16, 2015 | ||||
Secured revolving credit facility | $ 1,500,000 | ||||
Interest rate on borrowings under the credit facility | LIBOR plus 1.0 percent or the bank’s prime rate | ||||
Interest rate - percentage points added to LIBOR - on borrowings under credit facility | 1.00% | ||||
Expiry date of credit facility | Feb. 16, 2016 | ||||
Outstanding borrowings under the credit facility | 995,000 | $ 995,000 | |||
Guarantee liability | 995,000 | 995,000 | |||
STRATTEC's proportionate share of guarantor obligations | $ 507,000 | 507,000 | |||
Loss on Guarantee of STRATEC Advanced Logic, LLC Credit facility | $ 488,000 |
Equity Earnings (Loss) of Joint
Equity Earnings (Loss) of Joint Ventures (Details 2) - Equity Method Investee - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 30, 2013 | |
VAST LLC | |||
Schedule Of Equity Method Investments [Line Items] | |||
Sales | $ 2,298 | $ 231 | $ 141 |
Purchases from VAST LLC | 164 | 233 | 219 |
Expenses charged to VAST LLC | 832 | 743 | 517 |
Expenses charged from VAST LLC | 1,825 | 1,261 | $ 729 |
Accounts receivable from joint venture entity | 118 | 119 | |
Long-term loan receivable from VAST LLC | 500 | 285 | |
Accounts payable to VAST LLC | 267 | $ 98 | |
STRATTEC Advanced Logic, LLC (formerly known as NextLock LLC) | |||
Schedule Of Equity Method Investments [Line Items] | |||
Sales | 157 | ||
Accounts receivable from joint venture entity | 278 | ||
Current loan receivable from STRATTEC Advanced Logic, LLC | $ 100 |
Credit Facilities and Guarant66
Credit Facilities and Guarantees (Details Textual) - USD ($) | Feb. 16, 2015 | Jan. 22, 2014 | Jun. 28, 2015 |
STRATTEC Advanced Logic, LLC (formerly known as NextLock LLC) | |||
Line Of Credit Facility [Line Items] | |||
Outstanding borrowings under the credit facility | $ 100,000 | ||
Westinghouse Agreement | STRATTEC Advanced Logic, LLC (formerly known as NextLock LLC) | |||
Line Of Credit Facility [Line Items] | |||
Guarantee liability | 250,000 | ||
STRATTEC Credit Facility | |||
Line Of Credit Facility [Line Items] | |||
Secured revolving credit facility | $ 30,000,000 | ||
Expiry date of credit facility | Aug. 1, 2018 | ||
Interest rate on borrowings under the credit facility | LIBOR plus 1.0 percent or the bank’s prime rate | ||
Interest rate - percentage points added to LIBOR - on borrowings under credit facility | 1.00% | ||
ADAC-STRATTEC Credit Facility | |||
Line Of Credit Facility [Line Items] | |||
Secured revolving credit facility | $ 10,000,000 | ||
Expiry date of credit facility | Aug. 1, 2018 | ||
Interest rate on borrowings under the credit facility | LIBOR plus 1.75 percent or the bank’s prime rate. | LIBOR plus 1.0 percent or the bank’s prime rate | |
Interest rate - percentage points added to LIBOR - on borrowings under credit facility | 1.75% | 1.00% | |
STRATTEC Advanced Logic Credit Facility | STRATTEC Advanced Logic, LLC (formerly known as NextLock LLC) | |||
Line Of Credit Facility [Line Items] | |||
Secured revolving credit facility | $ 1,500,000 | ||
Expiry date of credit facility | Feb. 16, 2016 | ||
Interest rate on borrowings under the credit facility | LIBOR plus 1.0 percent or the bank’s prime rate | ||
Interest rate - percentage points added to LIBOR - on borrowings under credit facility | 1.00% | ||
Secured revolving credit facility, initiation date | Feb. 16, 2015 | ||
Outstanding borrowings under the credit facility | $ 995,000 | ||
Guarantee liability | $ 995,000 |
Credit Facilities and Guarant67
Credit Facilities and Guarantees (Details) - USD ($) $ in Thousands | Jun. 28, 2015 | Jun. 29, 2014 |
Line Of Credit Facility [Line Items] | ||
Outstanding borrowing | $ 10,000 | $ 2,500 |
STRATTEC Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Outstanding borrowing | 7,000 | |
ADAC-STRATTEC Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Outstanding borrowing | $ 3,000 | $ 2,500 |
Credit Facilities and Guarant68
Credit Facilities and Guarantees (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 28, 2015 | Jun. 29, 2014 | |
STRATTEC Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Average borrowings under the credit facility during the period | $ 2,288 | |
Weighted average interest rate | 1.20% | |
ADAC-STRATTEC Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Average borrowings under the credit facility during the period | $ 3,666 | $ 2,643 |
Weighted average interest rate | 1.20% | 1.70% |
Commitments and Contingencies69
Commitments and Contingencies (Details Textual) - USD ($) | 12 Months Ended | |
Jun. 28, 2015 | Jun. 29, 2014 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Cost incurred inception to date on installation and on-going monitoring of wells | $ 492,000 | |
Environmental | $ 1,383,000 | $ 1,397,000 |
Purchase Commitments and Minimu
Purchase Commitments and Minimum Rental Commitments Under Non-Cancelable Operating Leases (Details) $ in Thousands | Jun. 28, 2015USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Purchase commitments, 2016 | $ 12,987 |
Purchase commitments, 2017 | 11,335 |
Purchase commitments, 2018 | 10,503 |
Purchase commitments, 2019 | 4,791 |
Minimum rental commitments, 2016 | 305 |
Minimum rental commitments, 2017 | 247 |
Minimum rental commitments, 2018 | 210 |
Minimum rental commitments, 2019 | $ 83 |
Rental Expense Under Non-Cancel
Rental Expense Under Non-Cancelable Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 30, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Rental expense | $ 993 | $ 849 | $ 604 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 30, 2013 | |
Currently payable: | |||
Federal | $ 9,891 | $ 4,811 | $ (561) |
State | 657 | 252 | 185 |
Foreign | 2,164 | 2,164 | 1,895 |
Total current income tax expense | 12,712 | 7,227 | 1,519 |
Deferred tax (benefit) provision | (3,330) | 1,447 | 3,847 |
Total tax provision | $ 9,382 | $ 8,674 | $ 5,366 |
Income Taxes (Details 1)
Income Taxes (Details 1) | 12 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 30, 2013 | |
Difference between income taxes computed at the Federal statutory tax rate and the provision for income taxes | |||
US statutory rate | 34.70% | 34.50% | 34.00% |
State taxes, net of Federal tax benefit | 0.70% | 1.00% | 2.00% |
Foreign subsidiaries | (1.30%) | (0.90%) | (2.20%) |
Non-controlling interest | (4.10%) | (3.50%) | (3.10%) |
Valuation allowance | (1.00%) | ||
Other | (2.40%) | 0.10% | 2.10% |
Total | 27.60% | 31.20% | 31.80% |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | Jun. 28, 2015 | Jun. 29, 2014 |
Deferred income taxes-current: | ||
Repair and maintenance supply parts reserve | $ 229 | $ 216 |
Payroll-related accruals | 2,314 | 2,049 |
Environmental reserve | 512 | 517 |
Inventory reserve | 722 | 720 |
Allowance for doubtful accounts | 185 | 185 |
Accrued warranty | 3,250 | 966 |
Customer sales concession reserve | 1,465 | |
Other | 878 | 1,018 |
Deferred tax assets net current | 9,555 | 5,671 |
Deferred income taxes-noncurrent: | ||
Accrued pension obligations | (12,594) | (11,741) |
Unrecognized pension and postretirement benefit plan liabilities | 11,125 | 10,038 |
Accumulated depreciation | (5,253) | (4,967) |
Stock-based compensation | 928 | 692 |
Postretirement obligations | 171 | |
Postretirement obligations | (63) | |
NOL/credit carry-forwards | 105 | 143 |
Other | 1,157 | 537 |
Deferred income taxes-noncurrent: | $ (4,595) | $ (5,127) |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) | 12 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 30, 2013 | |
Income Tax Disclosure [Abstract] | |||
State operating loss and credit carry-forwards | $ 145,000 | ||
Expiration year of state operating loss and credit carry-forwards | 2,024 | ||
Deferred tax assets, valuation allowance | $ 40,000 | ||
Foreign income before income taxes | 5,900,000 | $ 6,600,000 | $ 6,000,000 |
Provision for federal income taxes on earnings of foreign subsidiaries and joint ventures considered permanently reinvested | 0 | ||
Undistributed earnings of foreign subsidiaries | 30,600,000 | ||
Total liability for unrecognized tax benefits including interest | 460,000 | 1,400,000 | |
Unrecognized tax benefits | 437,000 | 1,289,000 | $ 1,510,000 |
Unrecognized tax benefits, accrued interest | 23,000 | 113,000 | |
Unrecognized tax benefits, would effect tax rate | $ 32,000 | $ 861,000 |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) | 12 Months Ended | |
Jun. 28, 2015 | Jun. 29, 2014 | |
Reconciliation of the beginning and ending amount of unrecognized tax benefits | ||
Unrecognized tax benefits, beginning of year | $ 1,289,000 | $ 1,510,000 |
Gross increases – tax positions in prior years | 3,000 | |
Gross decreases – tax positions in prior years | (215,000) | |
Gross increases – current period tax positions | 146,000 | 59,000 |
Tax Years Closed | (1,001,000) | (65,000) |
Unrecognized tax benefits, end of year | $ 437,000 | $ 1,289,000 |
Retirement Plans and Postreti77
Retirement Plans and Postretirement Costs (Details Textual) - USD ($) | 12 Months Ended | |||
Jul. 03, 2016 | Jun. 28, 2015 | Jun. 30, 2013 | Jun. 29, 2014 | |
Defined Benefit Plan And Defined Contribution Plan Disclosure [Line Items] | ||||
Date the Board of Directors approved a resolution to terminate the qualified retirement plan | Apr. 2, 2014 | |||
Termination of Qualified Pension Plan, description | On April 2, 2014, our Board of Directors approved a resolution to terminate the Qualified Pension Plan. The termination of the Qualified Pension Plan is subject to the Internal Revenue Service’s (“IRS”) determination that the Qualified Pension Plan is qualified on termination. We believe it will take 18 to 24 months to finalize the complete termination of the Qualified Pension Plan after obtaining IRS approval. We have not yet received IRS approval that the qualified plan is qualified on termination. Additionally, we have amended the Qualified Pension Plan to provide that participants are 100 percent vested in their accrued benefits as of the effective date of the plan termination, to adopt a new standard for disability benefits that will apply when the plan’s assets are distributed due to the termination, to add a lump sum distribution for employees and terminated vested participants who are not in payment status when Qualified Pension Plan assets are distributed due to the termination and to make certain other conforming amendments to the Qualified Pension Plan to comply with applicable laws that may be required by the IRS or may be deemed necessary or advisable to improve the administration of the Qualified Pension Plan or facilitate its termination and liquidation. | |||
Qualified Retirement Plan participants' vesting percentage as of the final termination date of the plan | 100.00% | |||
Loss on settlement of pension obligation | $ 2,144,000 | |||
Rabbi Trust Assets - SERP | $ 2,300,000 | $ 2,200,000 | ||
Postretirement plan annual benefit limit for future eligible retirees | $ 4,000 | |||
Other postretirement benefits maximum benefit period | 5 years | |||
Health care cost trend rate for next fiscal year | 7.50% | |||
Ultimate health care cost trend rate | 5.00% | |||
Net Periodic Benefit Cost, Expected return on plan assets | 6.50% | |||
Percentage target asset allocation | 100.00% | |||
Return applied to target allocation in determining expected long term rate of return | 6.50% | |||
Actual Historical Annualized Returns Using Target Allocation - 5 Years | 6.40% | |||
Actual Historical Annualized Returns Using Target Allocation - 10 Years | 4.67% | |||
Actual Historical Annualized Returns Using Target Allocation - 15 Years | 4.28% | |||
Actual Historical Annualized Returns Using Target Allocation - 20 Years | 5.80% | |||
Actual Historical Annualized Returns Using Target Allocation - 25 Years | 6.30% | |||
Actual Historical Annualized Returns Using Target Allocation - 30 Years | 7.29% | |||
401(K) Plan | ||||
Defined Benefit Plan And Defined Contribution Plan Disclosure [Line Items] | ||||
Percent of each dollar of eligible employee contributions matched by employer | 100.00% | |||
Employer matching contribution to employee up to participant's eligible contribution | 5.00% | |||
Scenario Forecast | ||||
Defined Benefit Plan And Defined Contribution Plan Disclosure [Line Items] | ||||
Net Periodic Benefit Cost, Expected return on plan assets | 5.45% | |||
Stock Index Fund | ||||
Defined Benefit Plan And Defined Contribution Plan Disclosure [Line Items] | ||||
Percentage target asset allocation | 35.00% | |||
Return applied to target allocation in determining expected long term rate of return | 10.00% | |||
Fixed income | ||||
Defined Benefit Plan And Defined Contribution Plan Disclosure [Line Items] | ||||
Percentage target asset allocation | 30.00% | |||
Return applied to target allocation in determining expected long term rate of return | 3.00% | |||
Fixed income/cash | ||||
Defined Benefit Plan And Defined Contribution Plan Disclosure [Line Items] | ||||
Percentage target asset allocation | 65.00% | |||
Supplemental Employee Retirement Plan, Defined Benefit | ||||
Defined Benefit Plan And Defined Contribution Plan Disclosure [Line Items] | ||||
Percentage of participant's base salary received as Supplemental Retirement Benefits | 8.00% | |||
SERP benefit obligation cash settlement | 5,800,000 | |||
Loss on settlement of pension obligation | 2,144,000 | |||
Projected benefit obligation | $ 1,590,000 | 1,872,000 | ||
Qualified Pension Plan | ||||
Defined Benefit Plan And Defined Contribution Plan Disclosure [Line Items] | ||||
Expected employer contributions in next fiscal year | 3,000,000 | |||
Postretirement Benefits | ||||
Defined Benefit Plan And Defined Contribution Plan Disclosure [Line Items] | ||||
Projected benefit obligation | 2,179,000 | $ 3,540,000 | $ 2,929,000 | |
Expected employer contributions in next fiscal year | $ 522,000 |
Retirement Plans and Postreti78
Retirement Plans and Postretirement Costs (Details) - USD ($) $ in Thousands | Jun. 28, 2015 | Jun. 29, 2014 | Jun. 30, 2013 |
Amounts Included in Accumulated Other Comprehensive Loss, Net of Tax | |||
Total | $ 18,638 | $ 16,787 | $ 18,944 |
Pension and SERP Benefits | |||
Amounts Included in Accumulated Other Comprehensive Loss, Net of Tax | |||
Prior service cost (credit) | 21 | ||
Net actuarial loss | 17,160 | ||
Total | 17,181 | ||
Postretirement | |||
Amounts Included in Accumulated Other Comprehensive Loss, Net of Tax | |||
Prior service cost (credit) | (1,715) | ||
Net actuarial loss | 3,171 | ||
Total | $ 1,456 |
Retirement Plans and Postreti79
Retirement Plans and Postretirement Costs (Details 1) $ in Thousands | 12 Months Ended |
Jun. 28, 2015USD ($) | |
Pension and SERP Benefits | |
Amounts Included in Accumulated Other Comprehensive Loss, Net of Tax | |
Prior service cost (credit) | $ 7 |
Net actuarial loss | 1,539 |
Total | 1,546 |
Postretirement | |
Amounts Included in Accumulated Other Comprehensive Loss, Net of Tax | |
Prior service cost (credit) | (481) |
Net actuarial loss | 388 |
Total | $ (93) |
Retirement Plans and Postreti80
Retirement Plans and Postretirement Costs (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 30, 2013 | |
COMPONENTS OF NET PERIODIC BENEFIT COST: | |||
Loss on settlement of pension obligation | $ 2,144 | ||
Net Periodic Benefit Cost: | |||
Net Periodic Benefit Cost, Expected return on plan assets | 6.50% | ||
CHANGE IN PLAN ASSETS: | |||
Fair value of plan assets at beginning of year | $ 104,340 | ||
Fair value of plan assets at end of year | 105,472 | $ 104,340 | |
CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN OTHER COMPREHENSIVE INCOME: | |||
Amortization of prior service (cost) credits | 753 | 752 | |
Amortization of unrecognized net loss | (3,468) | (3,512) | |
Pension and SERP Benefits | |||
COMPONENTS OF NET PERIODIC BENEFIT COST: | |||
Service cost | 64 | 217 | 216 |
Interest cost | 4,173 | 4,407 | 4,447 |
Expected return on plan assets | (6,174) | (6,442) | (6,126) |
Amortization of prior service cost (credit) | 11 | 12 | 12 |
Amortization of unrecognized net loss | 2,775 | 2,665 | 4,453 |
Loss on settlement of pension obligation | 2,144 | ||
Net periodic benefit cost | $ 849 | $ 859 | 5,146 |
Benefit Obligations: | |||
Benefit Obligations, Discount rate | 4.53% | 4.39% | |
Benefit Obligations, Rate of compensation increases - SERP | 3.00% | 3.00% | |
Net Periodic Benefit Cost: | |||
Net Periodic Benefit Cost, Discount rate | 4.39% | 5.02% | |
Net Periodic Benefit Cost, Expected return on plan assets | 6.50% | 7.50% | |
Net Periodic Benefit Cost, Rate of compensation increases - SERP | 3.00% | 3.00% | |
CHANGE IN PROJECTED BENEFIT OBLIGATION: | |||
Benefit obligation at beginning of year | $ 97,445 | $ 89,915 | |
Service cost | 64 | 217 | 216 |
Interest cost | 4,173 | 4,407 | 4,447 |
Plan Amendments | (3) | ||
Actuarial (gain) loss | 2,118 | 7,030 | |
Benefits paid | (4,471) | (4,121) | |
Benefit obligation at end of year | 99,329 | 97,445 | 89,915 |
CHANGE IN PLAN ASSETS: | |||
Fair value of plan assets at beginning of year | 104,340 | 90,434 | |
Actual return on plan assets | 2,450 | 14,021 | |
Employer contribution | 3,153 | 4,006 | |
Benefits paid | (4,471) | (4,121) | |
Fair value of plan assets at end of year | 105,472 | 104,340 | 90,434 |
Funded status – prepaid (accrued) benefit obligations | 6,143 | 6,895 | |
AMOUNTS RECOGNIZED IN CONSOLIDATED BALANCE SHEETS: | |||
Other long-term assets | 7,733 | 8,768 | |
Accrued payroll and benefits (current liabilities) | (259) | (254) | |
Accrued benefit obligations (long-term liabilities) | (1,331) | (1,619) | |
Net amount recognized | 6,143 | 6,895 | |
CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN OTHER COMPREHENSIVE INCOME: | |||
Net periodic benefit cost | 849 | 859 | 5,146 |
Net actuarial (gain) loss | 5,843 | (550) | |
Prior service cost | (3) | ||
Amortization of prior service (cost) credits | (11) | (12) | |
Amortization of unrecognized net loss | (2,775) | (2,665) | |
Total recognized in other comprehensive loss (income), before tax | 3,057 | (3,230) | |
Total recognized in net periodic benefit cost and other comprehensive loss (income), before tax | 3,906 | (2,371) | |
Postretirement Benefits | |||
COMPONENTS OF NET PERIODIC BENEFIT COST: | |||
Service cost | 14 | 15 | 15 |
Interest cost | 114 | 157 | 181 |
Amortization of prior service cost (credit) | (764) | (764) | (764) |
Amortization of unrecognized net loss | 693 | 847 | 898 |
Net periodic benefit cost | $ 57 | $ 255 | 330 |
Benefit Obligations: | |||
Benefit Obligations, Discount rate | 4.53% | 4.39% | |
Net Periodic Benefit Cost: | |||
Net Periodic Benefit Cost, Discount rate | 4.39% | 5.02% | |
CHANGE IN PROJECTED BENEFIT OBLIGATION: | |||
Benefit obligation at beginning of year | $ 2,929 | $ 3,540 | |
Service cost | 14 | 15 | 15 |
Interest cost | 114 | 157 | 181 |
Actuarial (gain) loss | (189) | (112) | |
Benefits paid | (689) | (671) | |
Benefit obligation at end of year | 2,179 | 2,929 | 3,540 |
CHANGE IN PLAN ASSETS: | |||
Employer contribution | 689 | 671 | |
Benefits paid | (689) | (671) | |
Funded status – prepaid (accrued) benefit obligations | (2,179) | (2,929) | |
AMOUNTS RECOGNIZED IN CONSOLIDATED BALANCE SHEETS: | |||
Accrued payroll and benefits (current liabilities) | (522) | (706) | |
Accrued benefit obligations (long-term liabilities) | (1,657) | (2,223) | |
Net amount recognized | (2,179) | (2,929) | |
CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN OTHER COMPREHENSIVE INCOME: | |||
Net periodic benefit cost | 57 | 255 | $ 330 |
Net actuarial (gain) loss | (189) | (112) | |
Amortization of prior service (cost) credits | 764 | 764 | |
Amortization of unrecognized net loss | (693) | (847) | |
Total recognized in other comprehensive loss (income), before tax | (118) | (195) | |
Total recognized in net periodic benefit cost and other comprehensive loss (income), before tax | $ (61) | $ 60 |
Retirement Plans and Postreti81
Retirement Plans and Postretirement Costs (Details 3) - USD ($) $ in Thousands | Jun. 28, 2015 | Jun. 29, 2014 |
Pension | ||
Accumulated Benefit Obligations and Projected Benefit Obligations | ||
Accumulated benefit obligation | $ 97,739 | $ 95,573 |
Projected benefit obligation | 97,739 | 95,573 |
SERP | ||
Accumulated Benefit Obligations and Projected Benefit Obligations | ||
Accumulated benefit obligation | 1,245 | 1,422 |
Projected benefit obligation | $ 1,590 | $ 1,872 |
Retirement Plans and Postreti82
Retirement Plans and Postretirement Costs (Details 4) $ in Thousands | 12 Months Ended |
Jun. 28, 2015USD ($) | |
Significant Effect of Health Care Trend on the Postretirement Benefit | |
Effect on total of service and interest cost components in fiscal 2015, 1% Increase | $ 2 |
Effect on postretirement benefit obligation as of June 28, 2015, 1% Increase | 24 |
Effect on total of service and interest cost components in fiscal 2015, 1% Decrease | (2) |
Effect on postretirement benefit obligation as of June 28, 2015, 1% Decrease | $ (24) |
Retirement Plans and Postreti83
Retirement Plans and Postretirement Costs (Details 5) | 12 Months Ended | |
Jun. 28, 2015 | Jun. 29, 2014 | |
Pension plan weighted-average asset allocations by asset category | ||
Target Allocation | 100.00% | |
Plan assets - actual percentage | 100.00% | 100.00% |
Equity investments | ||
Pension plan weighted-average asset allocations by asset category | ||
Target Allocation | 35.00% | |
Plan assets - actual percentage | 35.00% | 43.00% |
Fixed-income Investments | ||
Pension plan weighted-average asset allocations by asset category | ||
Target Allocation | 30.00% | |
Plan assets - actual percentage | 26.00% | 26.00% |
Cash | ||
Pension plan weighted-average asset allocations by asset category | ||
Target Allocation | 35.00% | |
Plan assets - actual percentage | 39.00% | 26.00% |
Other | ||
Pension plan weighted-average asset allocations by asset category | ||
Plan assets - actual percentage | 5.00% |
Retirement Plans and Postreti84
Retirement Plans and Postretirement Costs (Details 6) - USD ($) $ in Thousands | Jun. 28, 2015 | Jun. 29, 2014 |
Summary, by asset category, of the fair value of pension plan assets | ||
Fair value of pension plan assets | $ 105,472 | $ 104,340 |
Level 1 | ||
Summary, by asset category, of the fair value of pension plan assets | ||
Fair value of pension plan assets | 42,255 | 49,398 |
Level 2 | ||
Summary, by asset category, of the fair value of pension plan assets | ||
Fair value of pension plan assets | 63,166 | 49,507 |
Level 3 | ||
Summary, by asset category, of the fair value of pension plan assets | ||
Fair value of pension plan assets | 51 | 5,435 |
Equity investments | Mid Cap | ||
Summary, by asset category, of the fair value of pension plan assets | ||
Fair value of pension plan assets | 10,766 | 10,866 |
Equity investments | Large Cap | ||
Summary, by asset category, of the fair value of pension plan assets | ||
Fair value of pension plan assets | 17,965 | 21,920 |
Equity investments | International | ||
Summary, by asset category, of the fair value of pension plan assets | ||
Fair value of pension plan assets | 8,483 | 11,728 |
Equity investments | Level 1 | Mid Cap | ||
Summary, by asset category, of the fair value of pension plan assets | ||
Fair value of pension plan assets | 10,766 | 10,866 |
Equity investments | Level 1 | Large Cap | ||
Summary, by asset category, of the fair value of pension plan assets | ||
Fair value of pension plan assets | 17,965 | 21,920 |
Equity investments | Level 1 | International | ||
Summary, by asset category, of the fair value of pension plan assets | ||
Fair value of pension plan assets | 8,483 | 11,728 |
Fixed Income Funds | ||
Summary, by asset category, of the fair value of pension plan assets | ||
Fair value of pension plan assets | 26,966 | 26,655 |
Fixed Income Funds | Level 1 | ||
Summary, by asset category, of the fair value of pension plan assets | ||
Fair value of pension plan assets | 5,041 | 4,884 |
Fixed Income Funds | Level 2 | ||
Summary, by asset category, of the fair value of pension plan assets | ||
Fair value of pension plan assets | 21,925 | 21,771 |
Hedge Funds | ||
Summary, by asset category, of the fair value of pension plan assets | ||
Fair value of pension plan assets | 51 | 5,435 |
Hedge Funds | Level 3 | ||
Summary, by asset category, of the fair value of pension plan assets | ||
Fair value of pension plan assets | 51 | 5,435 |
Cash and Cash Equivalents | ||
Summary, by asset category, of the fair value of pension plan assets | ||
Fair value of pension plan assets | 41,241 | 27,736 |
Cash and Cash Equivalents | Level 2 | ||
Summary, by asset category, of the fair value of pension plan assets | ||
Fair value of pension plan assets | $ 41,241 | $ 27,736 |
Retirement Plans and Postreti85
Retirement Plans and Postretirement Costs (Details 7) - USD ($) $ in Thousands | 12 Months Ended |
Jun. 28, 2015 | |
CHANGE IN PLAN ASSETS: | |
Fair value of plan assets at beginning of year | $ 104,340 |
Fair value of plan assets at end of year | 105,472 |
Hedge Funds | |
CHANGE IN PLAN ASSETS: | |
Fair value of plan assets at beginning of year | 5,435 |
Net Purchases and Sales | (5,557) |
Realized and Unrealized Gain, net | 173 |
Fair value of plan assets at end of year | $ 51 |
Retirement Plans and Postreti86
Retirement Plans and Postretirement Costs (Details 8) $ in Thousands | Jun. 28, 2015USD ($) |
Pension and SERP Benefits | |
Expected future benefit payments | |
2,016 | $ 5,033 |
2,017 | 5,042 |
2,018 | 5,292 |
2,019 | 5,540 |
2,020 | 5,857 |
2021-2025 | 31,164 |
Postretirement Benefits | |
Expected future benefit payments | |
2,016 | 522 |
2,017 | 432 |
2,018 | 361 |
2,019 | 277 |
2,020 | 202 |
2021-2025 | $ 514 |
Retirement Plans and Postreti87
Retirement Plans and Postretirement Costs (Details 9) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 30, 2013 | |
Compensation And Retirement Disclosure [Abstract] | |||
Employer contribution defined contribution plan | $ 1,729 | $ 1,605 | $ 1,464 |
Shareholders' Equity (Details T
Shareholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Jun. 28, 2015 | Jun. 29, 2014 | |
Equity [Abstract] | ||
Common stock, shares authorized | 12,000,000 | 12,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares outstanding | 3,526,700 | 3,484,816 |
Number of shares authorized to be repurchased | 3,839,395 | |
Number of shares repurchased to date | 3,655,322 | |
Cost of shares repurchased to date | $ 136.4 | |
Number of shares repurchased during period | 0 | 0 |
Earnings Per Share (''EPS'') (D
Earnings Per Share (''EPS'') (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 30, 2013 | |
Reconciliation of the components of the basic and diluted per share | |||
Net Income Attributable to STRATTEC | $ 20,654 | $ 16,424 | $ 9,375 |
Less: Income Attributable to Participating Securities | 258 | 296 | 171 |
Net Income Attributable to Common Shareholders | $ 20,396 | $ 16,128 | $ 9,204 |
Weighted Average Shares of Common Stock Outstanding | 3,515 | 3,428 | 3,327 |
Incremental Shares – Stock based Compensation | 89 | 85 | 52 |
Diluted Weighted Average Shares of Common Stock Outstanding | 3,604 | 3,513 | 3,379 |
Basic Earnings Per Share | $ 5.80 | $ 4.70 | $ 2.77 |
Diluted Earnings Per Share | $ 5.66 | $ 4.59 | $ 2.72 |
Earnings Per Share (''EPS'') 90
Earnings Per Share (''EPS'') (Details 1) - shares | 12 Months Ended | |
Jun. 28, 2015 | Jun. 30, 2013 | |
Stock Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive options excluded from earnings per share computation | 10,000 | 248,000 |
Stock Option and Purchase Pla91
Stock Option and Purchase Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 30, 2013 | |
Summary of stock option activity under our stock incentive plan | |||
Shares, Beginning Balance | 185,242 | 271,455 | 332,800 |
Shares, Granted | 10,000 | 40,000 | 40,000 |
Shares, Exercised | (22,746) | (92,256) | (55,845) |
Shares, Expired | (22,500) | (41,500) | |
Shares, Terminated | (8,589) | (11,457) | (4,000) |
Shares, Ending Balance | 163,907 | 185,242 | 271,455 |
Shares, Exercisable | 91,103 | 76,699 | 139,955 |
Shares of common stock available for grant | 253,989 | ||
Weighted Average Exercise Price, Beginning Balance | $ 24.73 | $ 27.19 | $ 28.19 |
Weighted Average Exercise Price, Granted | 79.73 | 38.71 | 25.64 |
Weighted Average Exercise Price, Exercised | 20.83 | 29.08 | 13.78 |
Weighted Average Exercise Price, Expired | 58.33 | 52.68 | |
Weighted Average Exercise Price, Terminated | 37.43 | 30.61 | 17.59 |
Weighted Average Exercise Price, Ending Balance | 27.97 | 24.73 | 27.19 |
Weighted Average Exercise Price, Exercisable | $ 19.86 | $ 16.91 | $ 29.95 |
Weighted Average Remaining Contractual Term, Outstanding, June 28, 2015 | 5 years 9 months 18 days | ||
Weighted Average Remaining Contractual Term, Exercisable | 4 years 1 month 6 days | 4 years 3 months 18 days | 4 years 4 months 24 days |
Aggregate Intrinsic Value, Outstanding, June 28, 2015 | $ 7,018 | ||
Aggregate Intrinsic Value, Exercisable | $ 4,592 | $ 3,769 | $ 2,104 |
Stock Option and Purchase Pla92
Stock Option and Purchase Plans (Details 1) - $ / shares | 12 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 30, 2013 | |
Stock Option and Purchase Plans | |||
Shares | 10,000 | 40,000 | 40,000 |
Exercise Price | $ 79.73 | $ 38.71 | $ 25.64 |
Stock Option and Purchase Pla93
Stock Option and Purchase Plans (Details 2) - Restricted stock - $ / shares | 12 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 30, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Nonvested, Shares Beginning Balance | 63,600 | 61,250 | 49,400 |
Granted, Shares | 25,000 | 24,950 | 24,150 |
Vested, Shares | (18,100) | (19,350) | (10,400) |
Forfeited, Shares | (4,150) | (3,250) | (1,900) |
Nonvested, Shares Ending Balance | 66,350 | 63,600 | 61,250 |
Nonvested, Weighted Average Grant Date Fair Value Beginning Balance | $ 28.64 | $ 22.42 | $ 20.45 |
Granted, Weighted Average Grant Date Fair Value | 70.90 | 37.29 | 23.69 |
Vested, Weighted Average Grant Date Fair Value | 23.02 | 20.40 | 15.44 |
Forfeited, Weighted Average Grant Date Fair Value | 45.71 | 27.88 | 25.49 |
Nonvested, Weighted Average Grant Date Fair Value Ending Balance | $ 45.03 | $ 28.64 | $ 22.42 |
Stock Option and Purchase Pla94
Stock Option and Purchase Plans (Details Textual) - Employee Stock Purchase Plan - USD ($) | 12 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 30, 2013 | |
Stock Option And Purchase Plans (Textual) [Abstract] | |||
Maximum Contribution per participant per calendar year | $ 5,200 | ||
Maximum number of shares authorized for issuance from treasury under the Employee Stock Purchase Plan | 100,000 | ||
Employee stock purchase plan average price of shares purchased during period | $ 76.06 | $ 49.53 | $ 26.88 |
Shares available for issuance from treasury under the Employee Stock Purchase plan | 69,132 | ||
Treasury Stock | |||
Stock Option And Purchase Plans (Textual) [Abstract] | |||
Shares issued under stock purchase plan | 1,038 | 1,181 | 2,000 |
Export Sales (Details)
Export Sales (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 30, 2013 | |
Concentration Risk [Line Items] | |||
Net Sales | $ 411,475 | $ 348,419 | $ 298,179 |
Export Sales | |||
Concentration Risk [Line Items] | |||
Net Sales | $ 141,584 | $ 119,099 | $ 111,159 |
Export Sales | Sales Revenue Net | Geographic Concentration Risk | |||
Concentration Risk [Line Items] | |||
Percentage of Export Sales | 34.00% | 34.00% | 37.00% |
Canada | Geographic Concentration Risk | |||
Concentration Risk [Line Items] | |||
Net Sales | $ 60,987 | $ 76,736 | $ 69,221 |
Canada | Sales Revenue Net | Geographic Concentration Risk | |||
Concentration Risk [Line Items] | |||
Percentage of Export Sales | 15.00% | 22.00% | 23.00% |
Product Sales (Details)
Product Sales (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 30, 2013 | |
Product Information [Line Items] | |||
Net Sales | $ 411,475 | $ 348,419 | $ 298,179 |
Keys & Locksets | |||
Product Information [Line Items] | |||
Net Sales | 114,287 | 115,379 | 102,157 |
Aftermarket & OE Service | |||
Product Information [Line Items] | |||
Net Sales | 78,717 | 49,586 | 36,487 |
Power Access | |||
Product Information [Line Items] | |||
Net Sales | 68,078 | 60,141 | 56,443 |
Door Handles & Exterior Trim | |||
Product Information [Line Items] | |||
Net Sales | 60,864 | 48,034 | 37,225 |
Driver Controls | |||
Product Information [Line Items] | |||
Net Sales | 57,894 | 53,729 | 51,032 |
Latches | |||
Product Information [Line Items] | |||
Net Sales | 24,320 | 14,664 | 9,385 |
Other | |||
Product Information [Line Items] | |||
Net Sales | $ 7,315 | $ 6,886 | $ 5,450 |
Sales | Product Concentration Risk | |||
Product Information [Line Items] | |||
Percentage of Net Sales | 100.00% | 100.00% | 100.00% |
Sales | Keys & Locksets | Product Concentration Risk | |||
Product Information [Line Items] | |||
Percentage of Net Sales | 28.00% | 33.00% | 34.00% |
Sales | Aftermarket & OE Service | Product Concentration Risk | |||
Product Information [Line Items] | |||
Percentage of Net Sales | 19.00% | 14.00% | 12.00% |
Sales | Power Access | Product Concentration Risk | |||
Product Information [Line Items] | |||
Percentage of Net Sales | 16.00% | 17.00% | 19.00% |
Sales | Door Handles & Exterior Trim | Product Concentration Risk | |||
Product Information [Line Items] | |||
Percentage of Net Sales | 15.00% | 14.00% | 13.00% |
Sales | Driver Controls | Product Concentration Risk | |||
Product Information [Line Items] | |||
Percentage of Net Sales | 14.00% | 16.00% | 17.00% |
Sales | Latches | Product Concentration Risk | |||
Product Information [Line Items] | |||
Percentage of Net Sales | 6.00% | 4.00% | 3.00% |
Sales | Other | Product Concentration Risk | |||
Product Information [Line Items] | |||
Percentage of Net Sales | 2.00% | 2.00% | 2.00% |
Sales and Receivable Concentr97
Sales and Receivable Concentration (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 30, 2013 | |
Sales to largest customers | |||
Net Sales | $ 411,475 | $ 348,419 | $ 298,179 |
Customer Concentration Risk | |||
Sales to largest customers | |||
Net Sales | $ 268,138 | $ 243,647 | $ 197,221 |
Customer Concentration Risk | Sales Revenue Net | |||
Sales to largest customers | |||
Percentage of Net Sales | 65.00% | 70.00% | 66.00% |
Fiat Chrysler Automobiles | Customer Concentration Risk | |||
Sales to largest customers | |||
Net Sales | $ 116,914 | $ 117,502 | $ 95,476 |
Fiat Chrysler Automobiles | Customer Concentration Risk | Sales Revenue Net | |||
Sales to largest customers | |||
Percentage of Net Sales | 28.00% | 34.00% | 32.00% |
General Motors Company | Customer Concentration Risk | |||
Sales to largest customers | |||
Net Sales | $ 105,809 | $ 79,526 | $ 56,972 |
General Motors Company | Customer Concentration Risk | Sales Revenue Net | |||
Sales to largest customers | |||
Percentage of Net Sales | 26.00% | 23.00% | 19.00% |
Ford Motor Company | Customer Concentration Risk | |||
Sales to largest customers | |||
Net Sales | $ 45,415 | $ 46,619 | $ 44,773 |
Ford Motor Company | Customer Concentration Risk | Sales Revenue Net | |||
Sales to largest customers | |||
Percentage of Net Sales | 11.00% | 13.00% | 15.00% |
Sales and Receivable Concentr98
Sales and Receivable Concentration (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 28, 2015 | Jun. 29, 2014 | |
Receivables from largest customers | ||
Receivables from customers, amount | $ 58,807 | $ 68,822 |
Customer Concentration Risk | ||
Receivables from largest customers | ||
Receivables from customers, amount | $ 33,151 | $ 49,277 |
Customer Concentration Risk | Accounts Receivable | ||
Receivables from largest customers | ||
Percentage of gross receivables | 56.00% | 71.00% |
Fiat Chrysler Automobiles | Customer Concentration Risk | ||
Receivables from largest customers | ||
Receivables from customers, amount | $ 17,060 | $ 22,202 |
Fiat Chrysler Automobiles | Customer Concentration Risk | Accounts Receivable | ||
Receivables from largest customers | ||
Percentage of gross receivables | 29.00% | 32.00% |
General Motors Company | Customer Concentration Risk | ||
Receivables from largest customers | ||
Receivables from customers, amount | $ 8,751 | $ 20,717 |
General Motors Company | Customer Concentration Risk | Accounts Receivable | ||
Receivables from largest customers | ||
Percentage of gross receivables | 15.00% | 30.00% |
Ford Motor Company | Customer Concentration Risk | ||
Receivables from largest customers | ||
Receivables from customers, amount | $ 7,340 | $ 6,358 |
Ford Motor Company | Customer Concentration Risk | Accounts Receivable | ||
Receivables from largest customers | ||
Percentage of gross receivables | 12.00% | 9.00% |